Wind LCOE 2024: Onshore vs Offshore
Onshore wind is the cheapest new electricity source in many markets. Offshore is catching up. Here's what the data shows.
Key takeaway
Onshore wind LCOE ranges from $0.024 to $0.075/kWh (global average ~$0.033-0.038). Offshore wind ranges from $0.063 to $0.140/kWh (global average ~$0.075-0.082). The offshore-onshore gap has narrowed from 3x in 2015 to roughly 2x in 2024, driven by larger turbines and higher capacity factors.
Source comparison
Onshore wind
| Source | LCOE | Year | Confidence |
|---|---|---|---|
| IRENA RPGC 2024 | 0.033 USD/kWh | 2023 | 92% |
| Lazard LCOE 16.0 | 0.024–0.075 USD/kWh | 2024 | 88% |
| BNEF NEO 2024 | 0.038 USD/kWh | 2024 | 85% |
| NREL ATB 2024 | 0.030 USD/kWh | 2024 | 90% |
Offshore wind
| Source | LCOE | Year | Confidence |
|---|---|---|---|
| IRENA RPGC 2024 | 0.075 USD/kWh | 2023 | 88% |
| Lazard LCOE 16.0 | 0.072–0.140 USD/kWh | 2024 | 82% |
| BNEF NEO 2024 | 0.082 USD/kWh | 2024 | 80% |
| NREL ATB 2024 | 0.063 USD/kWh | 2024 | 85% |
What drives the cost difference
Turbine size matters enormously
Onshore turbines have grown from 2 MW average in 2015 to 5-7 MW in 2024. Offshore turbines now reach 14-16 MW (Siemens Gamesa SG 14-236 DD, Vestas V236-15.0). Larger rotors = higher capacity factors = lower LCOE, but also higher per-unit CAPEX and installation complexity.
Offshore foundation costs
Fixed-bottom foundations (monopile, jacket) account for 20-25% of offshore CAPEX. Water depth is the key variable: costs increase ~40% going from 20m to 40m depth. Floating foundations (spar, semi-sub, TLP) are still 2-3x more expensive but are necessary for 60m+ depths.
Supply chain bottlenecks (2022-2024)
Unlike solar, wind LCOE actually increased in 2022-2023 due to steel prices, vessel availability (offshore), and OEM margin recovery. Vestas, Siemens Gamesa, and GE all reported losses on fixed-price turbine contracts. 2024 shows the first signs of stabilization.
Capacity factor gap is narrowing
Onshore wind averages 30-40% capacity factor globally (up from 25% in 2010). Offshore wind averages 40-50%. The gap has narrowed as onshore turbines get taller (140-170m hub height) and use longer blades. In windy markets like the US Great Plains, onshore capacity factors exceed 45%.
Grid connection dominates offshore costs
Offshore wind requires HVDC or HVAC export cables, offshore substations, and onshore grid reinforcement. These balance-of-plant costs can exceed 30% of total CAPEX for projects 50+ km from shore. IRENA excludes these; Lazard includes partial estimates.
Sources
Ready to go deeper?
No credit card required. Get a structured, cited answer in seconds.
Compare wind costs for your market