Achieving a cost-competitive offshore wind power industry

Brown, Craig; Poudineh, Rahmatallah; Foley, Benjamin J.

doi:10.26889/9781784670375

Cited by 17 publications

(11 citation statements)

References 5 publications

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“…This suggests that there may be other considerations behind these wind offshore bids. Either, the investors expect lower technology costs in combination with high fuel prices and/or longer lifetimes or they may evaluate the importance of entering in this market as a strategic option and may re-evaluate their investment decisions over time, e.g., as information about new support schemes (to be put in place by 2030) becomes available (Brown et al, 2015). However, such 'wait-and-see' strategies have been proven to be detrimental (Dedecca et al, 2016).…”

Section: Discussionmentioning

confidence: 99%

Are Renewables Profitable in 2030? A Comparison between Wind and Solar Across Europe

Bertsch

Cosmo

2018

SSRN Journal

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The European Union has set ambitious targets for emission reduction and the penetration of renewable energy, including the electricity generation sector as one of the major emitters of CO2. After a period of subsidy-driven investments, the costs of renewables decreased strongly making investments more attractive. Since European countries differ strongly in terms of natural resources, we analyse the profitability of wind onshore and offshore and solar PV across Europe to determine where it is optimal to invest in the future and to understand which factors drive the profitability of the investments. We use a power systems model to simulate the whole European electricity market in 2030. Using the renewable revenues determined by the model, we calculate the internal rate of return to analyse how profitable each technology is in each country. We find that investments in the considered technologies are not homogeneously profitable across Europe. This suggests that cooperation between European countries can be expected to achieve the overall targets at lower costs than nationally-driven approaches. We also find that in many countries, wind onshore and solar PV are profitable by 2030 in absence of any financial support. Wind offshore does not seem to be profitable without financial support.

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Section: Discussionmentioning

confidence: 99%

Are Renewables Profitable in 2030? A Comparison between Wind and Solar Across Europe

Bertsch

Cosmo

2018

SSRN Journal

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“…The third-party model is advantageous in that it permits the competitive entry of new market participants, and can therefore deliver grid connections more rapidly and efficiently. However, this approach is also more complex, involving various parties, a tender process and new regulation (Brown et al, 2015).…”

Section: Grid Connectionsmentioning

confidence: 99%

“…Yet they vary in terms of overall costs, efficiency, support for renewables and alignment with broader energy policy goals (Brown et al, 2015).…”

Section: Grid Connectionsmentioning

confidence: 99%

Renewable auction design in theory and practice

Hochberg

Poudineh

2018

Self Cite

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Competitive tendering has become one of the preferred methods of contracting renewable energy generation capacity internationally. As of early 2015, at least 60 countries had adopted renewable energy tenders, compared to just six countries in 2005. However, there are limited country-specific comparisons which research the subject considering the importance and prominence of the issue. The aim of this study is to fill this research gap by examining the Brazilian and Mexican experiences in developing renewables and how their tendering programmes interact with the market and institutional frameworks in which they exist. Fundamentally, our study seeks to shed light on two simple questions: what auction design issues may serve as barriers to renewable development, and how can auctions be improved further? We provide a historical assessment of renewable and generation capacity development policies in both Brazil and Mexico, review auction design and results in both countries, and offer recommendations for the future design and implementation of renewable energy policy tools, and auctions in particular.

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“…There are significant costs related to these activities-installation of offshore wind turbines and with their foundations contribute to 10%-20% of total capital expense (CAPEX) of a wind farm, according to Brown et al [8], Fàbrega and Bellmunt [9] and Moné et al [10], whereas operation and maintenance (O & M) costs typically contribute to 25%-30% of the total Levelized Cost of Energy (LCoE) as per Nielsen and Sørensen [11] and Santos et al [12]. A major contributor, among others, to these costs are related heavy lift and transportation vessel charter expenditures.…”

Section: Introductionmentioning

confidence: 99%

Improved Methodology of Weather Window Prediction for Offshore Operations Based on Probabilities of Operation Failure

Gintautas

Sørensen

2017

JMSE

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Abstract:The offshore wind industry is building and planning new wind farms further offshore due to increasing demand on sustainable energy production and already occupied prime resource locations closer to shore. Costs of operation and maintenance, transport and installation of offshore wind turbines already contribute significantly to the cost of produced electricity and will continue to increase, due to moving further offshore, if the current techniques of predicting offshore wind farm accessibility are to stay the same. The majority of offshore operations are carried out by specialized ships that must be hired for the duration of the operation. Therefore, offshore wind farm accessibility and costs of offshore activities are primarily driven by the expected number of operational hours offshore and waiting times for weather windows, suitable for offshore operations. Having more reliable weather window estimates would result in better wind farm accessibility predictions and, as a consequence, potentially reduce the cost of offshore wind energy. This paper presents an updated methodology of weather window prediction that uses physical offshore vessel and equipment responses to establish the expected probabilities of operation failure, which, in turn, can be compared to maximum allowable probability of failure to obtain weather windows suitable for operation. Two case studies were performed to evaluate the feasibility of the improved methodology, and the results indicated that it produced consistent and improved results. In fact, the updated methodology predicts 57% and 47% more operational hours during the test period when compared to standard alpha-factor and the original methodologies.

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Achieving a cost-competitive offshore wind power industry

Cited by 17 publications

References 5 publications

Are Renewables Profitable in 2030? A Comparison between Wind and Solar Across Europe

Are Renewables Profitable in 2030? A Comparison between Wind and Solar Across Europe

Renewable auction design in theory and practice

Improved Methodology of Weather Window Prediction for Offshore Operations Based on Probabilities of Operation Failure

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