The offshore wind sector will be “fully competitive” with conventional power stations within a decade, according to a letter to the Europe Union’s Energy Council signed by 11 companies involved in the industry.

The businesses think that the cost of offshore wind farms will fall to €80/MWh (£62/MWh) by 2025, including the cost of connecting turbines to the grid.

They said that the sector is “on track” to hit its cost reduction target and will become an essential technology for Europe’s energy security and decarbonisation objectives.

But a stable policy environment is needed if the industry is to hit its targets, they added.

Investors ‘peace of mind’ highlighted

The letter said: “Following a record year for installations in 2015, a serious question mark remains over the post-2020 environment for offshore wind.

“Policymakers at European and national level must set out clear visions for the industry after 2020 with robust laws that give investors peace of mind and visibility well into the future.”

The letter was signed by Adwen, EDPR, Eneco, E.ON, GE, Iberdrola, MHI Vestas, RWE, Siemens, Statoil and Vattenfall.

> Read the letter