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The report, launched by the Carbon Trust, said the relaxation of the constraints that dictate where winds farms can be constructed could cut £16bn from the overall cost of developing offshore wind. This would also allow developers to complete projects in shorter time frames.
Under the proposals, the next generation of offshore farms proposed by the government will have to be built in deep water a minimum of 70 miles from the shore.
Allowing wind farms to be built nearer to the shore and in shallower waters is the key cost-saving measure that would allow 29GW of offshore wind farms to be built by 2020.
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The report 'Offshore wind: big challenge, big opportunity' also calls upon the government to remove any planning obstacles and resolve grid connection problems that are inhibiting growth.
Tom Daley, Chief Executive of the Carbon trust said: "If we are to meet our 2020 renewable targets we need a dash for wind on a comparable scale to the dash for gas of the 1990s.
"Slashing the costs of offshore wind must now be a priority for UK energy policy. The Government must use the upcoming consultation on this important issue to unlock the most economically attractive sites for development."
He added: "This would dramatically reduce the cost of development - essential if we are going to meet our 2020 renewable targets and deliver significant reductions in our carbon emissions."
Duncan Ayling, Head of Offshore at the British Wind Energy Association said the report made a "clear case" for the urgent need to get the support for governing wind development right.
He said: "The outcome could be a revolution in the way electricity is produced and distributed in this country, with potentially 25% of UK electricity demand being powered by offshore wind."
John Sauven, executive director of Greenpeace also welcomed the report, saying offshore wind energy should form a vital component of a low carbon economy.
(JM)
