Breakeven price range offshore windmill
Total Lifetime Costs:
CAPEX: ~$48M (assuming $4M per MW)
OPEX: $200k per MW/year → $2.4M per year
Total OPEX over 25 years: $60M
Total Cost (CAPEX + OPEX): $108M
Lifetime energy production:
12 MW×50%×8,760 hours/year×25 years=1,314,000 MWh
Breakeven electricity price:
Total Energy ProducedTotal Cost=108M / 1,314,000≈82 USD/MWh or 8.2 cents/kWh
Breakeven price range:
High-Cost Scenario: 10–12 cents/kWh
Low-Cost Scenario (Newer Turbines, Government Subsidies): 4–6 cents/kWh
Current Offshore Wind Energy Prices:
Europe (2023): $40–$90/MWh (4–9 cents/kWh)
US (2023): $60–$120/MWh (6–12 cents/kWh)
If the electricity price in the market is higher than 8.2 cents/kWh, the turbine will break even and turn a profit over its lifespan.
Future projections:
The International Renewable Energy Agency (IRENA) anticipates that offshore wind CAPEX will continue to decline, reaching €1.29 million to €2.58 million per MW by 2030 and €1.06 million to €2.12 million per MW by 2050