Research commissioned by RWE Innogy and the German Offshore Wind Energy Foundation has found that the cost of generating electricity from offshore wind farms could fall by a third over the next decade if there is “consistent development”.

The Prognos study found that if 9 GW of capacity is installed by 2023, the cost of electricity generation could fall by 31 per cent, while an “optimum market scenario” where 14GW of offshore wind was developed over the next 10 years would result in a cost reduction of 39 per cent.

Offshore wind

The study also shows that due to increasing experience in project planning, plant construction and operation, the risks – and subsequently the financing costs – can be reduced.

Frank Peter of Prognos AG, co-author of the report, said: “The main driver for the cost reduction is a continuous technological development across the value-added chain. Particularly regarding investment costs, substantial savings can be achieved.”

Siemens, Iberdrola, Dong and Vattenfall were just some of the companies who participated in the study.

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