German engineering company Siemens has announced its commitment to lowering the Levelized Cost of Electricity of offshore wind power by 2025.
Announced at the Global Offshore Wind 2016 conference and exhibition in Manchester, England, this week, Siemens has unveiled its intentions to commit to lowering the Levelized Cost of Electricity (LCoE) for offshore wind power by 2025 and onward, promising that its offshore wind projects will be able to generate electricity at an LCoE of eight euro cents per kilowatt hour (kWh) — which includes the costs for grid access to shore.
“The offshore cost-out target for 2025 is an important milestone for us and the industry to enable offshore wind grid parity,” said Michael Hannibal CEO of Siemens Wind Power and Renewables Division. “At the same time, it combines climate protection and cost efficiency. We are confident that we will lower the LCoE to below eight euro cents per kWh by 2025.”
Siemens is aiming to reduce the LCoE of offshore wind power below ten euro cents per kWh by 2020, with 72% of this targeted cost reduction already having been accomplished. Specifically, according to Siemens, half of the 72% accomplishment has been reached through technical improvements within turbines, the installation processes, new grid connection technologies, maintenance strategies, and logistics.
The further reduction of costs over the following five years will be primarily reliant upon the next generation of offshore wind turbines, combined with new production techniques. Siemens is busy working on new manufacturing techniques and developing new solutions for offshore wind turbine foundations, which will both contribute to the company’s intended LCoE reductions. Approved last month, the 588 MW Beatrice Offshore Wind Farm set to be located in Scotland and being supplied with wind turbines from Siemens will make use of some of the company’s new developments.