Cost Reduction Monitoring Framework

24 Jan 2017  

Burbo Bank

Burbo Bank

The third annual Cost Reduction Monitoring Framework (CRMF) was delivered in January 2017 by ORE Catapult to the Offshore Wind Programme Board.  It shows that:

  • the cost of energy from offshore wind has fallen by 32% since 2012 and is now below the joint UK Government and industry target[1] of £100/MWh four years ahead of schedule.
  • there is high industry confidence of continued rapid cost reduction to below levels set by any other large-scale, low-carbon energy source.

Offshore wind costs have fallen sharply through the adoption of larger turbines, increased competition and lower cost of capital. Projects are reaching a Final Investment Decision (FID) in 2015/16 with an average Levelised Cost of Energy (LCOE) of £97/MWh, compared to £142/MWh in 2010/11.

The report also reveals that UK content and jobs are a significant focus for the UK’s offshore wind sector, with the industry working hard to maximise its UK economic benefit. Supply chain plans required under the Contracts for Difference (CfD) process are now delivering significant growth for UK manufacturing, and the report identifies further potential to increase both UK content and jobs through a more coordinated approach to industrial strategy.

Check out our new, interactive CRMF website 

Download the CRMF 2016 Summary Report

Download the CRMF 2016 Qualitative Summary Report

Download the CRMF 2016 Quantitative Summary Report 

Download the CRMF 2016 Evidence log

Previous CRMF reports can be downloaded here

[1]Offshore Wind Cost Reduction Taskforce, 2012

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