Cost Reductions and Innovation in the Offshore Wind Industry

  • Rahmatallah Poudineh
  • Craig Brown
  • Benjamin Foley


Offshore wind is a relatively immature industry which is heavily reliant on government subsidies to grow. In order to survive in an environment where the cost of alternative renewable energies, such as onshore wind and solar, have been rapidly falling, the offshore wind industry must significantly reduce its costs in the coming years. This chapter discusses the issue of cost reduction and innovation in the industry and analyses the opportunities for cost cutting through improving technology, supply chain management, finance, and government support policies.


Offshore wind cost reduction Innovation Finance Supply chain management Support policies 


  1. EWA. (2013). Where’s the Money Coming From? Financing Offshore Wind Farms. European Wind Energy Association. ISBN: 978-2-930670-06-5.
  2. FTI Consulting. (2015). Innovative Financing of Offshore Wind. In FTI Consulting, EWEA Offshore Conference, Copenhagen, 10–12 March 2015.
  3. Green, R., & Vasilakos, N. (2011). The Economics of Offshore Wind Energy. Energy Policy, 496–502.Google Scholar
  4. IRENA. (2017). Innovation Outlook Offshore Wind. International Renewable Energy Agency.
  5. Krupa, J., & Poudineh, R. (2017). Financing Renewable Electricity in the Resource-Rich Countries of the Middle East and North Africa: A Review EL 22 (Oxford Institute for Energy Studies).
  6. Meeus, L. (2015). Offshore Grids for Renewables: Do We Need a Particular Regulatory Framework? Economics of Energy & Environmental Policy, 4(1), 85–95.CrossRefGoogle Scholar
  7. Ofgem. (2014). Offshore Transmission OFTO Revenue Report. London: Office of Gas and Electricity Market (Ofgem).
  8. NSCOGI. (2014). Discussion Paper 2: Integrated Offshore Networks and the Electricity Target Model, Deliverable 3 – Final Version. The North Sea Countries Grid Initiative.
  9. Stentoft, J., Narasimhan, R., & Poulsen, T. (2016). Reducing Cost of Energy in the Offshore Wind Energy Industry: The Promise and Potential of Supply Chain Management. International Journal of Energy Sector Management, 10(2), 151–171.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Rahmatallah Poudineh
    • 1
  • Craig Brown
    • 1
  • Benjamin Foley
    • 2
  1. 1.The Oxford Institute for Energy StudiesOxfordUK
  2. 2.Keystone Engineering Inc.New OrleansUSA

Personalised recommendations