Offshore wind has become a core asset class for numerous investors and lenders in Europe — and the same may soon be true in the US.

One of the initial large US projects — the 800MW Vineyard Wind off Massachusetts — set a record-low price for electricity of $74 per MWh for the first year of its 400MW first phase (with prices escalating by 2.5% each year over a 20-year period).

That price is expected to fall even further. Developers Avangrid and Copenhagen Infrastructure Partners (CIP) say costs will drop to $65/MWh for the start of the 400MW second phase of the project.