Economic Feasibility of Floating Offshore Wind Farms in the North of Spain

Castro-Santos, Laura; Bento, A. Rute; Silva, Dina; Salvação, N.; Soares, C. Guedes

doi:10.3390/jmse8010058

Cited by 34 publications

(13 citation statements)

References 43 publications

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“…With regard to these LCOE values, it is clearly difficult to achieve a certain profitability in this type of project, by covering the costs solely with income from the electricity market. A similar conclusion was reached by Castro-Santos et al in [25]. The authors assessed the economic feasibility of offshore wind farms installed in deep waters considering their internal rate of return (IRR), net present value (NPV), and LCOE.…”

Section: Introductionsupporting

confidence: 57%

Impact of Spanish Offshore Wind Generation in the Iberian Electricity Market: Potential Savings and Policy Implications

et al. 2021

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The European Union considers that offshore wind power will play a key role in making the EU the first climate-neutral continent by 2050. Currently, the potential of offshore wind energy is still untapped in Spain. Furthermore, the characteristics of the coastline in Spain require floating technology, making it challenging to install wind farms due to their current high cost. This work seeks to quantify the impact that Spanish offshore wind energy would have on the Iberian electricity market. Several offshore wind scenarios are evaluated by combining available information in relation to areas suitable for installing wind farms and wind resource data. The impact on the day-ahead electricity market has been obtained by reproducing the market, including these new offshore wind generation scenarios. The introduction of this renewable energy results in a market cost reduction in what is known as the merit-order effect. According to our estimates, for each MWh of offshore wind energy introduced in the market, there would be a market cost reduction of 45 €. These savings can serve as a reference for regulators to adjust their policy framework to boost floating wind offshore generation.

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Section: Introductionsupporting

confidence: 57%

Impact of Spanish Offshore Wind Generation in the Iberian Electricity Market: Potential Savings and Policy Implications

et al. 2021

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“…Financial analysis is performed for the purpose of comparing the investments and expenses and the revenue recovery [16] incurred in relation to the ACT project from the perspective of TOC. In this study, financial analysis is to analyze the profitability of the business by calculating the financial costs and income of the subject performing the ACT project, and calculating NPV of terminal capacity.…”

Section: Financial Analysis Methodsmentioning

confidence: 99%

Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company

Park

2020

JMSE

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This study examines the financially feasibility of the proper terminal capacity by each berth size of the automatic container terminal (ACT) from the perspective of Terminal Operating Company (TOC). ACT is a highly productive and eco-friendly port facility, but it requires a lot of capital investment. Thus, the investment of ACT should consider the TOC’s operating profit preservation to determine the proper terminal capacity. In this study, we attempt to conduct financial analysis using the net present value method and estimate breakeven handling volume of five berth sizes (nine, five, four, three, and two berths). In particular, as the aim of this study is to propose a capacity model of ACT, the model must be able to adapt to a variety of situations reflecting the number of berths and financial discount rate. The case study focused on the new port of Busan, introducing ACT. As a result, the breakeven terminal capacity changes from 560,421 TEU of the 9-berth model to 633,102 TEU of the 2-berth model, applying a 4.5% standard discount ratio. In a sensitivity test considering the change in discount rate and the size of the berth at the same time, the net present value (NPV) has a positive value at the level of at least 550,000 TEU (nine berths and 3.5% discount rate) and up to 650,000 TEU (two berths and 5.5% discount rate). The method of optimizing financial efficiency by analyzing the appropriate loading capacity will be an important support tool in decision-making by providing the analysis results and reasonable information obtained during the analysis process to the TOC, the main stakeholder in the adoption of ACT.

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“…This study defines economic analysis as analyzing long-term net present value (LNPV) and break-even terminal capacity from the national economic perspective. Economic anal-ysis is a comprehensive method of analyzing economic benefits by estimating incremental benefits and costs from the perspective of the national economy based on income and expenditures directly related to national finances [10]. The scope of ACT development to economic analysis includes not only direct income and expenditure of national finances but also projects that are not directly related to national finances.…”

Section: Introductionmentioning

confidence: 99%

Economic Analysis for Investment of Public Sector’s Automated Container Terminal: Korean Case Study

Park

2021

JMSE

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The purpose of this case study is to conduct an economic analysis to calculate the proper terminal capacity of automated container terminal (ACT) investment from the perspective of the public sector. As a key element of smart port, the ACT is an important terminal operating facility for import/export and transshipment cargo between countries and must have facilities with sufficient capacity to load/unload export/import cargo in a timely manner according to the user’s request. Recently, the method of calculating the capacity of seaport infrastructure is changing from the method of applying the maximum capacity to the method of applying the proper capacity. Therefore, it is desirable to expand port facilities by investigating proper capacity rather than expanding port facilities based on the maximum performance. This study is a case study focusing on the new port of Busan introducing the ACT. From the perspective of national fiscal income and national economy from the ACT investment, this study determines the proper terminal capacity for each berth. As a result of economic analysis, the break-even terminal capacity to secure economic feasibility is from 544,272TEU of the nine berths to 600,138TEU of two berths applying a 2.96% discount ratio. In a sensitivity analysis considering the social discount rate and the change in the size of berths, the net present value has a positive value from a minimum of 530,000 TEU (nine berths with 1.96% social discount ratio) to a maximum of 620,000 TEU (three berths with 3.46% social discount ratio).

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Economic Feasibility of Floating Offshore Wind Farms in the North of Spain

Cited by 34 publications

References 43 publications

Impact of Spanish Offshore Wind Generation in the Iberian Electricity Market: Potential Savings and Policy Implications

Impact of Spanish Offshore Wind Generation in the Iberian Electricity Market: Potential Savings and Policy Implications

Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company

Economic Analysis for Investment of Public Sector’s Automated Container Terminal: Korean Case Study

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