Matthew Wright, the new managing director of Dong Energy UK, said the cost of windfarms at sea had fallen so much that the big issue facing the industry was no longer levels of subsidies but how they integrated with the National Grid and emerging technologies.
“The challenge is that having reached this tipping point in terms of its cost competitiveness, how do we integrate more offshore wind into the the modern energy system?” he said. “How do we combine it with the rise of electric vehicles, the rise of storage and batteries, smart technology? It’s becoming a different phase [for the sector].”
The cost of offshore wind power fell by nearly a third between 2012 and 2016, and the windfarms now generate 5% of the UK’s electricity, compared with 8% for onshore ones. It is the only large-scale form of renewable energy still supported by the government.
Wright, the former chief executive of Southern Water, took over the UK arm of the Danish state-owned Dong in June, shortly after the company sold off its remaining oil and gas business for £1bn to Ineos.