Abstract
Offshore wind projects are complex, capital intensive engineering endeavors and a large number of factors influence development strategies and costs. The design, logistics, vessel requirements, and physical infrastructure of each offshore farm are unique but physical similarities in the technology lead to a number of project similarities. Service markets, levels of competition, environmental conditions, and government support vary regionally and introduce diversity, and the degree to which these factors differ will determine how closely the European experience will translate to U.S. markets. The purpose of this chapter is to describe general characteristics of offshore wind farm development with an emphasis on factors that influence cost comparisons. We discuss how system design factors interact and create similarities between farms, the factors that influence installation vessel market conditions, and contracting strategies and risk. Data limitations impact our ability to generalize cost statistics and a discussion of decommissioning requirements and liability issues concludes the discussion.
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Notes
- 1.
Lely (1994, Netherlands), Tuno Knob (1995, Denmark), and Irene Vorrink (1996, Netherlands) were relatively small scale, located in shallow or sheltered waters, and were heavily engineered.
- 2.
When oil prices are low, operators drill less wells and vessel utilization rates decline and vessels are available for other work. High price environments increase demand.
- 3.
For example, an EPC contract might be written for the design, construction, and installation of foundations. In this case, the procurement, construction and installation costs are combined. Engineers may estimate the percentage attributable to each activity and report this value, but this may not be reflective of the actual cost breakdown. The only reliable method of determining project installation costs is through a detailed audit.
- 4.
The risk and cost involved in decommissioning destroyed oil and gas infrastructure are higher than under normal conditions, often ranging between 5 and 20 times more than conventional abandonment [8].
- 5.
Desirable port characteristics generally include: deepwater, reinforced quaysides, large storage areas, easy access, suitable space, and facilities to move foundations.
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Kaiser, M.J., Snyder, B.F. (2012). Offshore Project Characteristics and Cost Factors. In: Offshore Wind Energy Cost Modeling. Green Energy and Technology. Springer, London. https://doi.org/10.1007/978-1-4471-2488-7_4
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DOI: https://doi.org/10.1007/978-1-4471-2488-7_4
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