Price of offshore wind power drops by a third in 12 months
Larger turbines drive improved cost efficiency, while onshore wind and solar PV also record significant price reductions
The price of power generated by offshore wind farms has plummeted by a third in the past year, according to the latest report from analyst BloombergNEF (BNEF).
The cost of new-build offshore wind power has fallen at a faster rate than any other renewable energy source, with a 32 per cent year-on-year drop. BNEF’s global benchmark price for the second half of 2019 stands at $78/MWh (£60).
The BNEF report states: “New offshore wind projects throughout Europe now deploy turbines up to 10MW, unlocking Capex and Opex savings.”
Larger, more efficient turbines are driving the fall, as witnessed by the unveiling of the world’s largest wind turbine earlier this month. In September, in a vote of confidence in the sector, the UK Government announced six major new offshore wind developments which, along with other new renewable sources, will power seven million homes from 2025.
Prices also fell significantly for power generated from onshore wind and solar projects, BNEF finds. These prices fell by 6 and 11 per cent respectively, largely due to cheaper equipment costs.
The BNEF report said: “PV and onshore wind is winning the race as the cheapest sources of new bulk generation with two-thirds of the global population living in countries where PV or wind is the cheapest new electricity generation.”
BNEF forecasts that wind and solar prices will undercut those of coal and gas “almost everywhere” by 2030.