( CNN ) -- Floating wind farms could soon be powering thousands of European homes after a prototype seaborne turbine sailed through technological trials off the coast of Agucadoura , Portugal . The 54-meter tall renewable structure sits atop a semi-submersible platform known as a WindFloat situated five kilometers from shore . It has been manufactured by WindPlus , a consortium of energy and clean-tech companies including Principle Power , Energias de Portugal and Vestas . The group hopes their primary success will help secure European Union funding to add another five turbines alongside the existing model , engendering greater electrical production . `` The ( initial ) turbine is capable of producing 2MW ( megawatts ) instantaneously at any one time , given enough wind , '' says Alla Weinstein , CEO of Principal Power . `` This is equivalent to 1,300 households . The cumulative production thus far in Portugal has been 1.7GWh ( gigawatt hours ) , '' she adds . See also : Wind turbine creates water from thin air . Unlike existing offshore wind farms and underwater tidal turbines , floating structures do not have to be permanently fixed to the ocean floor . Instead they are kept in place by a drag embedment anchor , much like the devices used to moor oil rigs in deep ocean environments . This means WindFloat structures could theoretically be transported to any ocean location where there is a strong wind resource , says Weinstein . An undersea cable transmits the energy produced on site back ashore . The costs for transporting electricity rise the further out to sea the structures are placed . `` We feel the ideal distance is out of sight from land , typically 12-18 miles , '' says Weinstein . `` This distance mitigates stakeholder visual concerns yet decreases the exposure to exorbitant transmission costs . '' Weinstein highlights lower construction costs -- the WindPlus turbine cost â‚¬20 million ( $ 24.9 million ) to build and install -- as a major advantage the technology has over existing offshore wind farms . See also : Who 's funding Green Energy . The fact that turbines and their platforms can be assembled on land ( unlike bottom-fixed devices which are assembled at sea on specialized vessels and cost as much as $ 250,000 a day to charter ) means `` the cost and risk profile ... is significantly reduced , '' she says . But while bullish about the technology 's potential , Weinstein admits there remains a way to go before floating turbines become profitable enterprises . The initial structure off the coast of Portugal is merely a pilot installation to prove the device works and is viable , says Weinstein . `` At the moment we are making money but not enough to cover our costs , '' she says . `` There is no doubt in my mind however that this is going to be a profitable technology and profitable venture in the future . It just takes time . ''
A floating wind turbine has been inaugurated off the coast of Agucadoura , Portugal . The 54-meter tall structure can produce enough energy to power 1,300 households . The consortium behind the turbine hope to install five more devices to create the world 's first ever floating wind farm .