Green Street: Market reforms key to cutting UK offshore wind costs

Offshore costs are mainly going up, and there are many problems to be addressed

The UK rules the offshore wind sector, at least for now. Continued success, however, will depend largely on whether the conclusions of the industry/government Offshore Wind Cost Reduction Task Force report — which has set a target of reducing generation costs to £100 ($155)per MWh by 2020 from an estimated £149-191/MWh today — can be implemented.

As the report points out, costs are mainly going up, and there are many problems that need to be addressed, from supply-chain bottlenecks in key areas such as high-voltage cabling, to a lack of turbine testing sites in the short term and a continued disconnect between key participants including developers, turbine suppliers and construction companies.

The task force’s recommendations rest heavily on the establishment of an Offshore Wind Programme Board (OWPB), a committee to be made up of “a small number of senior representatives” from the wind industry, government and…

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