North Sea offshore wind prices 30% lower than nuclear

In the North Sea, the cost of offshore wind power is 30 per cent lower than that of new nuclear thanks to the rise of mass production as well as a reduced maintenance and falling oil and steel prices.

The price of wind is now €87/MWh which is lower than ever and sets offshore wind in the same range of conventional power generation price-wise.

This unexpected turn could push the wind sector to provide 7 per cent of Europe’s electricity by 2030.

The world’s most important offshore development – the Dogger Bank project – is planned for the northeast coast of the UK, where there are plans to build 400 wind turbines which will generate 1.2 GW –the equivalent of power to one million homes.

Another important farm, amongst smaller projects, is expected to be functional by 2017 with 150 wind turbines near the Dutch coast.

The nations investing the most in offshore wind are Denmark, Sweden, Portugal and China.

The costs of installation of wind power facilities, although traditionally high, have fallen notably thanks to the low cost of oil with a slowdown in activity for the oil industry and the closure of several drilling projects in the area.

The turbines used are becoming bigger – 6MW and soon 8MW– and this involves less maintenance and servicing, reducing the costs further.

Another factor that influenced the cost of offshore wind is the fact that steel’s price also decreased, steel being an important component in wind installations.

Offshore wind is a preferred solution for many countries due to its lower visual and auditory impact.

Most of the major European offshore wind projects beneficiate from government support, and the concern is that political changes might alter this crucial assistance.