The Cost Reduction Monitoring Framework (CMRF) report also showed that investment in turbine technology has delivered significant cost benefits to the industry, but that more investment in cables, foundations and substations is needed for further reductions.
The report comes at the same time as the UK Parliament reviews the fifth carbon budget of the Committee on Climate Change, which suggests that offshore wind costs will be below new nuclear and new gas plants by 2025.
Energy minister Andrea Leadsom said: “The UK offshore wind industry continues to go from strength to strength and I’m delighted to see further evidence that costs are continuing to come down. Reductions in cost will mean better value for hard working bill payers, and are essential if this industry is to thrive.”
Forthcoming announcements on timing and scale of future Contracts for Difference (CfD) auctions and long-term capacity requirements could also bring down costs, according to the report.
Offshore Renewable Energy Catapult chief executive Andrew Jamieson said: “This report sets out a clear pathway to further cost reduction through technology innovation and collaboration to ensure that Britain continues to reap both economic and environmental benefits.”
The only cost reduction measure the report found to be behind target was growth and scale which it attributes to adopted innovations that are not expected to significantly drive cost reduction until 2017.