Offshore wind farm developer DONG Energy claims it can beat government cost target

DONG Energy, the world’s largest offshore wind developer and operator, claims it can cut the costs of offshore wind farms to well below a government-set target by 2020. 

The development would be a major step forward for the economic viability of the industry, which relies on significant subsidies, paid for through levies on consumers’ energy bills. 

Ministers have told developers they must drastically cut costs to reduce the burden on consumers and have set a target of £100 per megawatt hour (MWh) by 2020. Some experts doubt that target can be met and the industry’s future is unclear if it is unable to do so. 

Offshore wind farm
But DONG said it could reduce the cost to €100/MWh (£87/MWh) for projects on which it took investment decisions in 2020. Average costs for its projects in 2012 were €160/MWh. 

Benj Sykes, DONG’s UK wind power director, said: “It’s very challenging but we think it’s very much a realistic and achievable target.” It planned to achieve the target through a series of measures including bigger, more powerful wind turbines that could have rotors 200m in diameter. DONG recently said it would go ahead with a major wind farm with 154m diameter rotors. 

Source: www.telegraph.co.uk