Why offshore wind
The Carbon Trust believes that mass deployment of offshore wind is critical to bridge the global energy gap and to meet climate change targets. Offshore wind is a highly scalable renewable energy technology, capable of generating large volumes of low carbon electricity. Increasing deployment of this technology addresses many strategically important goals such as decarbonisation, security of supply, and new business opportunities.
Our analysis suggests that offshore wind power is on the cusp of exponential growth, with installed capacity set to nearly triple in the period from 2015 to 2020. Cost reductions can be seen in recent auction tenders, which suggest that costs have fallen by 60% compared to 2010 levels, already surpassing industry cost targets for 2025.
However, there is still a challenge to reduce costs further to reach parity with other energy technologies, particularly with the move further offshore and into deeper waters, demanding the introduction of more innovative and resilient technologies. Similarly, the advance of offshore wind in new markets beyond Europe creates a need for further technology innovation and cost reduction efforts in order to make offshore wind a mainstream energy technology globally.