The price of energy generated by offshore wind farms has been falling steadily, and ahead of schedule too. Costs have fallen 32 percent since 2012, bringing them below a target of £100 per megawatt-hour previously set by the U.K. government and utilities. Wind energy wasn't expected to reach that threshold until 2020, according to the annual Cost Reduction Monitoring Framework report issued by the Offshore Renewable Energy Catapault advocacy group. . . .
The number of sites with the potential for development into wind farms now significantly exceeds the funding available from the U.K. government for such projects, the report said. This forced developers to cut costs more aggressively. As a result, offshore-wind projects finalized in 2015 and 2016 achieved average energy costs of £97 per MWh, compared to £142 per MWh for those finalized in 2010 and 2011. . . .