Offshore wind costs are falling at a fasterrnrate than previously assumed, pulling awayrnfrom conventional sources of generationrnas load factors improve, the Danish EnergyrnAgency said in its latest Levelized Cost ofrnElectricity calculations.rnThe cost of offshore wind is now expectedrnto fall to €46/MWh by 2020, the agency said,rnsome 30% cheaper than forecast three years’rnago, and now considerably cheaper thanrnboth large coal- or gas-fired cogenerationrncosts, put at €71/MWh and €82/MWh.rnThe agency expressed surprise at thernrate of decline in capital and operationalrncosts for offshore wind, down 40% andrn20% respectively in the three years sincernthe last calculation.
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