Windpower Engineering & Development

  • Home
  • Articles
    • Most recent posts
    • News
    • Featured
  • Resources
    • Digital issues
    • Podcasts
    • Suppliers
    • Webinars
    • Events
  • Videos
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
  • Magazine
  • Advertise
  • Subscribe

Wind subsidies gone in 10 to 15 years says U.K. study

By Paul Dvorak | June 1, 2011

Offshore wind relies on government support to develop into a commercially viable technology. In Britain, the industry is seen as one of the main renewable energy sources to help meet emission-reduction targets. “Subsidy policies, as well as being a means of delivering carbon reduction targets, are viewed by governments as a foundation on which offshore wind generation can grow to a point where it can develop without subsidy,” Price Waterhouse Coopers said in its offshore wind power survey.

Nearly half of the government bodies interviewed said they expected offshore wind to survive without subsidies in 10 to 15 years, while 17% of respondents counted on less than 10 years and an equal share thought 15 to 20 years were needed.

The major factor in determining whether a nascent technology can survive without state support is the cost. The average construction cost per megawatt varied among questioned European offshore wind power developers, with 38% of survey respondents saying their average cost came to less than $3 million, while 31% quoted $4 to 5 million.

But most building contractors and manufacturers of wind-farm components asked in the survey expected the cost for construction and turbines to drop in the next five years, making it cheaper to install new wind farms. 80% of those who forecast a decrease said costs could drop 10 to 20%.

“Nearly all developers surveyed said supply-chain capacity constraints are a significant problem for offshore wind construction to such an extent that 82% said they create the risk of a seller’s market,” PwC found in its poll. Installation vessel availability, port infrastructure, and engineering presence have negatively affected offshore wind power projects in the past.

The survey also showed that the Fukushima nuclear accident in Japan dampened financial institutions’ perception of nuclear power. Before the event, more than half of respondents said offshore wind was less or much less attractive than nuclear power, while 75% of respondents said after the accident their sentiment had shifted negatively against nuclear. “Whatever the exact outcome, the Fukushima emergency is likely to shift the energy policy balance toward renewables,” PwC said. “While it won’t raise a red flag to investment in nuclear, it could spur further moves by nuclear companies into renewables.”

Price Waterhouse Coopers LLC
www.pwc.co.uk

 


Filed Under: Financing, News
Tagged With: offshore windpower, PwC, subsidies, survey
 

About The Author

Paul Dvorak

Related Articles Read More >

US government allows Empire Wind offshore project to resume construction
Richardson Electronics to deliver pitch energy modules to TransAlta wind fleets
Equinor halts work on Empire Wind offshore project after federal government order
ARESCA wants input on offshore wind standards

Podcasts

Wind Spotlight: Looking back at a year of Thrive with ZF Wind Power
See More >

Windpower Engineering & Development Digital Edition

Digital Edition

Browse the most current issue of Windpower Engineering & Development and back issues in an easy to use high quality format. Clip, share and download with the leading wind power engineering magazine today.

Windpower Engineering & Development
  • Wind Articles
  • Solar Power World
  • Subscribe to Windpower Engineering
  • About Us/Contact Us

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising

Search Windpower Engineering & Development

  • Home
  • Articles
    • Most recent posts
    • News
    • Featured
  • Resources
    • Digital issues
    • Podcasts
    • Suppliers
    • Webinars
    • Events
  • Videos
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
  • Magazine
  • Advertise
  • Subscribe