Offshore wind companies target €80 per MWh by 2025

Key offshore wind energy companies have written to the European Council saying that they can get the cost of the technology below €80 per MWh for projects reaching a final investment decision 2025, providing the industry has a clear vision of its future.

The letter, signed by representative of Adwen, EDPR, Eneco, E.ON, GE, Iberdrola, MHI Vestas, RWE, Siemens, Statoil and Vattenfall, says the industry can meet the €80 figure – which includes grid connection costs – with the right build out and regulatory framework.

If the figure is achieved it means offshore wind will be competitive with conventional forms of power generation in Europe within a decade. The aim of the letter was to underline to the Council the role that offshore wind can play in the European energy system as well as the industry’s commitment to reduce its costs.

‘If the offshore industry is to realise its cost reduction goals, a strong pipeline of projects is needed to scale up offshore deployment and identify efficiencies in the supply chain,’ says the letter. It says that a serious question mark remains over the post-2020 environment for offshore wind, and that policymakers need to set out clear visions for the industry after this time.

Meanwhile a report released by the International Renewable Energy Agency (IRENA) says that the average costs for electricity generated by solar and onshore wind technologies could decrease by 60% and 25% respectively by 2025.

The Power to change: solar and wind cost reduction potential to 2025 report also finds that offshore wind costs could decrease by 35% by 2025. The figures are all dependent on the right regulatory and policy frameworks being in place, says IRENA.

By 2025, the global average cost of electricity from solar PV and onshore wind will be roughly 5–6 US cents per kWh, says the report.