North Sea offshore wind costs could drop 28% through standardization

A study led by DNV and eight European offshore wind supply chain companies suggests that standardizing turbine designs and establishing predictable project pipelines could reduce the levelized cost of energy (LCoE) for North Sea offshore wind by up to 28% by 2050.

The research modeled three scenarios between 2025 and 2050. Under a business-as-usual model with moderate growth and short production runs, LCoE is expected to fall by approximately 5% by 2035. Extending production runs under similar growth could achieve a 14% reduction by 2035 and 25% by 2050. The highest-volume scenario, characterized by sustained deployment and longer production runs, could yield reductions of 19% by 2035 and 28% by 2050.

The report highlights that irregular project flows currently cause underutilization of existing capacity, which weakens investment cases. It also identifies port capacity as a potential constraint in high-volume scenarios, necessitating expansion and upgrades. The study calls for policymakers to provide consistent auction schedules and visible project pipelines to support industry stability.