The report outlines the historical cost trends for offshore wind, including the recent years' cost increases for offshore wind and other renewable technologies. It also delves into the key cost drivers in recent years and evaluates the long-term perspectives for cost development in the offshore wind market.

― The report shows that we can expect a significant cost reduction for offshore wind over the next few decades, particularly for floating offshore wind, comments Roger Pedersen, Director of Offshore Wind at Offshore Norway. 

He points out that floating offshore wind is currently an immature technology that requires support to be realized. 

-The government and Parliament must ensure the necessary framework conditions and financing to build the first large-scale projects, including at Utsira Nord. This would allow Norway to take the leading position in floating offshore wind that the industry and politicians desire, while offshore wind contributes to the necessary increase in power production, says Roger Pedersen, Director of Offshore Wind at Offshore Norway.

The report points out that over the past decade, there has been a significant cost reduction in the development of offshore wind, a trend observed across various analysis environments and estimates. According to Menon, this cost reduction is attributed to several factors, including technological advancements, value chain development, increased competition, lower financing costs, as well as the scaling up of wind power projects and turbine sizes. 

-Developing new technology is a key factor in reducing costs in floating offshore wind. Norway is a pioneer in this industry, and through testing and demo projects Norwegian supply chain and developers will contribute significantly to bring costs down, comments Arvid Nesse, manager of METCentre and Norwegian Offshore Wind. 

In the report, Menon underscores that the downward cost trend was interrupted around 2021. In the following two years, costs increased by 27 percent due to a combination of rising interest rates and raw material prices, along with disruptions and pressure in global supply chains. It's important to note, however, that offshore wind is just one of many industries affected by these cost increases. For instance, onshore wind power and solar energy also saw cost increases of 11 percent and 26 percent, respectively, during the same period.

-Undoubtfully the industry is facing challenges with costs, but this report along with several other analysis show that offshore wind is an unrivaled tool in succeeding with the green shift, says Nesse.