Offshore Wind Cost Reduction Unlikely in Short-Term, But Critical Before 2020
20 December 2011
As offshore wind energy projects evolve and as developers, manufacturers and energy utilities continue to invest, a short-term reduction in costs is unrealistic if the sector is to realise its true potential.
With European offshore wind energy markets moving into deeper water, further offshore, short-term project development costs will rise. Moreover, in the medium term, cost reductions should be sought in areas such as standardization, installation, and operations and maintenance (O&M).
The key to achieving these cost reductions is sharing and applying industry best practice, with other key offshore energy markets.
Industry wide initiatives are already underway to help achieve cost savings of between 30-50% over the next ten years, particularly since it takes into account key cost reduction programs previously implemented in offshore oil and gas.
Key areas that have been identified include standardization of equipment and procedures, streamlining contracts with risk reward sharing, and innovative 2 partnering. This would particularly apply to cable installation, to date one of the main areas of cost over run and insurance claims.
For more information, please contact James Hunt at firstname.lastname@example.org.