Cost of offshore wind energy reaches record low

September 19, 2016 0 By Stephen Vagus

Prices for electricity generated by offshore wind farms continue to fall

Offshore wind energy systems are often considered highly expensive, but as new technology become available, the cost of these wind farms is beginning to fall. In Sweden, a new record has been set for the world’s least expensive wind farm built at sea. The Vattenfall wind farm is now capable of selling electricity for proximately $50 per megawatt-hour. According to Magnus Hall, the chief executive of the Vattenfall wind farm, the deals the energy system has managed to establish has reduce the cost of wind generated electricity faster than expected.

Governments continue to question the viability of offshore projects

While offshore wind energy has managed to gain prominence in Sweden, this sector is encountering problems in other parts of the world. In Denmark, where offshore wind projects have become somewhat popular, the government is concerned about the financial support these projects require. In Denmark, offshore projects rely on government subsidies. Due to the falling price of electricity generated by wind farms, the subsidy that the government provides is becoming more much more of a financial burden. As such, the government is now considering whether or not the subsidy is viable.

Offshore projects gain popularity despite logistical challenges

offshore wind energyOffshore wind farms hold great promise in terms of energy generation. These energy systems are located at sea, where wind currents are uninhibited by geographic structures, such as mountains. Due to this, offshore wind farms have the potential to generate much more electricity than their onshore counterparts. One of the reasons these energy systems have had trouble becoming successful, however, is because of their high cost. The logistics behind building offshore energy systems has proven to be expensive, preventing the widespread adoption of such energy systems.

New technology will help aid the growth of offshore wind energy

As new technology becomes more available, the costs associated with offshore wind energy systems is expected to fall in the coming years. Many countries with access to large expanses of sea territory have shown interest in building new offshore wind farms in an attempt to become more environmentally friendly and embrace renewable power. Notably, the United States may soon become more to the world’s largest offshore wind farm, which is currently being developed in Rhode Island.