PITY THE POOR LUDDITES:

Just five years ago, the offshore wind industry hoped to reduce its energy pricing to below £100 per megawatt-hour by 2020 from new projects in UK waters. Even at that level, projects would still have relied on government subsidies to make them economically viable, compared with other types of electricity generation.

But in fact, costs quickly reduced to the extent that offshore wind farm developers were soon committing to selling their electricity at much lower prices. Today, developers are building wind farms such as Dogger Bank where they have committed to prices below £50 per megawatt-hour. This makes offshore wind competitive with other forms of power generation, effectively removing the need for subsidy.

The major factor in reducing these costs was turbine size. Ever-larger turbines came to market faster than virtually everybody in the sector had expected.

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