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Offshore Wind: A Manifesto for Cost Reduction

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Offshore Wind: A Manifesto for Cost Reduction
Over 100 offshore wind industry figures gathered at WindEnergy Hamburg where DNV GL shared the findings of its latest report “Offshore wind: a manifesto for cost reduction”.

Much has been said and written about offshore wind cost reduction and although there are signs that progress is being made, cost remains an existential threat to realising the potential of this technology. It is widely argued that Industry action is required to help reduce offshore wind costs to secure the future of this strategically important energy source in Northern Europe as well as in new markets in Asia and North America.

The DNV GL manifesto for offshore wind cost reduction does more than identify and quantify cost reduction opportunities. It sets out the challenge and commits DNV GL to action on the most important issues.

The cost reduction strategies outlined in the manifesto are categorized into three basic types:

Doing it right - by mitigating risk and increasing certainty
Very few of the offshore wind projects that have been competed so far have been delivered on time and within budget. This is not only damaging to the individual projects concerned but also affects the perceived risk profile of offshore wind. Actions that focus on reducing risk and preventing mistakes could help to reduce costs by around 7%.

Doing it better - by improving the efficiency of existing processes
Actions which improve the efficiency of existing processes will enable the industry to deliver optimized projects and reduce offshore wind costs by around 6%.

Doing it differently - by innovating for the future
Significant progress has been made bringing new innovation to market to help with the war on costs. Most notably this has included the development of new larger wind turbine technology, with DNV GL’s work playing an important enabling role. For example, we have provided Type certification for the Siemens D6 offshore wind turbine and separately, we acted as Technical advisor to the first large scale deployment of this technology.

Actions which involve implementing better or different ways of doing things, such as R&D projects or integrated approaches, as defined in our Project FORCE report, could help to reduce offshore wind costs by around 12%.

More than just identifying cost reduction opportunities
Working with industry partners, the actions DNV GL commits to in the manifesto have the potential to achieve reductions in the cost of energy of up to 25%. This saving, combined with trends in other areas such as improved supply chain efficiency has the potential of delivering a total reduction of 40% which is recognized by many stakeholders as the level required to secure the future of the industry.

The manifesto document contains 14 specific pledges across a wide range of topics from reducing subsea cable installation risks through to accelerating the commercialization of floating offshore wind technology.

Download the full manifesto document now (in English) or Chinese.