Larger turbines are a necessary but insufficient condition for creating lower offshore wind prices. That logical claim has been the primary explanation for offshore wind's dramatic price decline in recent years, where prices in Europe have decreased from EUR 0.13 per kWh, and subsidy-free offshore wind is now being discussed in various corners of Europe. Even though other factors also play a role, the expectation of using next-generation wind turbines was, for instance, one the key causes for Ørsted's well-publicized zero-subsidy bid at a German auction held last year.
The validity of this claim may not necessarily hold over time, according to Copenhagen Infrastructure Partners (CIP) partner Michael Hannibal, who before being joining CIP was CEO for market leader Siemens Gamesa's offshore wind business. As the offshore wind industry expands globally, what holds true for the North Sea area will not apply as a universal.