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A new report has shown the cost of UK offshore wind power has fallen below the joint UK Government and industry target of £100 per megawatt-hour four years ahead of schedule, putting offshore wind on target to become one of the cheapest large-scale clean energy sources

The third annual Cost Reduction Monitoring Framework report was delivered this week by ORE (Offshore Renewable Energy) Catapult to the Offshore Wind Programme Board, showing that the levelized cost of offshore wind has fallen by 32% since 2012, and now sits under £100 per megawatt-hour (MWh), four years ahead of the scheduled target set by the UK Government with the UK’s offshore wind industry.

Specifically, offshore wind projects reaching a Final Investment Decision in 2015 and 2016 were done at an average levelized cost of electricity (LCOE) of £97/MWh, compared to £142/MWh in 2010/11.

The report also highlights that high industry confidence exists for offshore wind’s ability to continue delivering cost savings as a result of technological innovation and continued collaboration across the sector.

Additional key findings from the report include:

• Technology developments have made the largest contribution to cost reduction.
• Competition at developer level has driven down costs in the supply chain.
• Risk profile and the cost of capital is reducing as confidence in the sector develops.
• The level of UK content in projects is an increasingly important consideration for developers……..http://reneweconomy.com.au/uk-offshore-wind-power-falls-below-100mwh-4-years-ahead-of-schedule-90926/