Average lifetime revenue for Vattenfall’s Kriegers Flak project in Denmark is forecast to be 20% lower than the record-low bid price and reflects falling CAPEX and cost of equity in the growing offshore wind market, Tom Harries, Wind Energy Analyst at BNEF, told the Offshore Wind Europe conference on November 22.
Predicted sharp growth in U.S. offshore capacity will require innovative insurance products based on early insights into technology choices and lessons learned on onshore operational risk, insurance industry experts told Wind Energy Update.
To compete on costs with fixed-bottom offshore wind and other renewables, the floating wind industry should industrialize the foundation in the same way it has manufactured and commoditized the turbines for onshore wind, according to Henrik Stiesdal, wind energy pioneer and former CTO of Siemens Windpower.
The demand for cable lay vessels will “pick up considerably” in the German, U.K. and Dutch offshore wind markets and remain sustained by at least decade’s end, Andy Readyhough, senior business development manager at DeepOcean, told Wind Energy Update.
The existing fleet of turbine and foundation installation vessels is well suited to serve the European offshore wind market in the short and mid-term but it will not be sufficient to support installation demand after 2020, Michael Guldbrandtsen, senior consultant at MAKE Consulting, told Wind Energy Update.
Most independent developers and utilities in Europe’s offshore wind sector are responding to new financing models and more complex projects by switching from multi-contracting to 2-3 construction contracts per project, Rob Mcabb, partner at Eversheds, told Wind Energy Update.
A competitive Dutch tender system and favorable site conditions were key to DONG Energy’s record-low bid strike price of 72.7 euros per MWh for the Borssele 1&2 offshore wind projects, but the Danish utility likely beat other bidders by revving up efforts to maximize its energy production, optimize its operating costs and by securing lower-cost financing, industry experts said.
Offshore accommodation platforms can boost turbine availability by several percent on larger wind farms and extend the reach of crew transfer vessels further offshore, industry experts told Wind Energy Update.