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Energy experts say offshore turbine costs will drop

Speakers at this week’s Scottish Low Carbon Investment Conference said they were confident that cost barriers to building offshore wind farms will be resolved through economies of scale and supply chain efficiency.

ScottishPower Renewables managing director Keith Anderson and engineering giant Doosan Power Systems chief executive officer Jean Michel Aubertin said that economies of scale will bring costs down in the long term. “I think the cost absolutely will come down with economies of scale,” said Anderson. “[The problem] won’t last long; the pricing position will sort itself out.”

Scottish and Southern Energy chief executive officer Ian Marchant told delegates he was confident that work by manufacturers and the supply chain to drive down costs would be effective. Marchant said the costs of offshore wind must come down if it is to be financially viable. Costs are currently roughly equivalent to £140/MWh and need to be closer to £100/MWh, he said.

European Investment Bank head of project finance Cheryl Fisher told the conference that costs are not coming down yet — but she said industry sources indicated to her that they will in future.

Readers' comments (1)

  • Would the NCE Magazine please produce an article setting out what £100-140/MWh includes for:

    1. The full OPex/Capex and Replacement Costs of the Wind Turbines Design, Manufacture, Instal, Commission over the Life Time of the Turbines.
    2. The Interconnecting Cable and Control Systems from the Wind Turbines to the nearest appropriate National Grid connection point.
    3. The similar costs for "1" for the necessary Gas Turbine Standby Units in parallel with the Wind Turbines to sustain Wind Turbine power outputs during no/low wind conditions throughout the year, and particularly extended periods of no/low wind and peak power demand typically encountered during winter periods.

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