A new report has revealed the cost of offshore wind energy in the UK has fallen by 32% since 2012.

The annual Cost Reduction Monitoring Framework (CRMF) report, delivered by the Offshore Renewable Energy (ORE) Catapult on behalf of the Offshore Wind Programme Board (OWPB), states the industry target of £100MWh has been reached four years ahead of schedule.

The report states early cost reductions have been reached due to early adoption of larger turbines, increased competition and the lower cost of capital.

Scottish Energy Minister Paul Wheelhouse said the fall in costs proves the sector is "rising to the challenge to reduce the cost of offshore wind".

Speaking ahead of the Scottish Renewables Offshore Wind Conference, Mr Wheelhouse said: "Our commitment to supporting low carbon energy is outlined in our new Energy Strategy, published today, which sets out our vision for energy production in Scotland to 2050. It outlines the next steps in how we will continue to transition to a low carbon economy, with the offshore wind sector to take an increasingly influential part in that,

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"Offshore wind is central to Scotland's carbon emission reduction targets. With 25% of Europe's offshore wind potential, we are uniquely positioned to maximise the economic and environmental benefits that the technology can deliver.

"Today I am addressing the Scottish Renewables Offshore Wind Conference, a key forum for discussion around how we can harness strengths in engineering, science, business and humanities to develop new technologies for the offshore renewables sector.

"Despite the lack of engagement over some key issues for the renewables sector, I remain keen to work together with the UK Government to deliver for our future energy systems and collectively maximise the economic contribution of our approach."

UK Energy Minister, Jesse Norman, said offshore wind will continue to help the UK meet its climate change commitments, as well as delivering jobs and growth across the country.

"The UK's leadership in offshore wind clearly demonstrates that it is an attractive destination for renewable energy investment," he said.

"This growing industry will be an important part of the Government's new industrial strategy, and will be underpinned by £730m of annual support for renewable energy over the course of this Parliament."

"Thanks to the efforts of developers, the UK's vigorous supply chain and support from Government, renewables costs are continuing to fall."

To view the report, visit here.

(LM/MH)