Page 63 - Energize January 2022

TECHNICAL

Offshore wind – a developing innovation

in renewable energy technology

Information from the International Renewable Energy Agency (IRENA)

Offshore wind has benefitted from innovations across the supply chain and in operation and

maintenance (O&M). These have been driven by industry innovation, research, development
and demonstration (RD&D) and the feedback of greater experience in designing, installing
and operating offshore wind turbines.

ffshore wind energy is an
emerging renewable technology
Othat has developed rapidly in
the past ten years. It has seen significant
technology cost reductions, technology
advancements and breakthroughs,
increased supply chain efficiencies and
substantial uptake in different markets,
which in turn has unlocked further
investments. Offshore wind allows
countries to exploit the generally higher
and more consistent wind resources
offshore, while achieving gigawatt-scale
projects close to the densely populated
coastal areas that are prevalent in many
parts of the world. This makes offshore
wind an important addition to the Figure 1: Total installed costs (2010 - 2019)
portfolio of low carbon technologies
available to decarbonise many countries’ increase in global weighted-average installed costs between 2010 and 2015, these then
energy sectors (IRENA, 2019). declined by 28% between 2015 and 2019, from US$5260/kW to $3800/kW. Costs fell by 20%
between 2015 and 2016, rose again, and then dropped by an average 10% between 2017
Progress in offshore wind technology and 2019.
Installed offshore wind costs are In 2019, the lowest installed costs were reported in Denmark, followed by China, Germany,
higher than onshore. This is due to: the UK and Japan. The largest drop between 2015 and 2019 was in the UK, where costs fell
the complexity of the technology and 23%. When comparing installed costs with 2010 figures, there was a slight increase in Japan
project management; the far greater and the UK, a small decrease in Denmark and a significant decrease in China and Germany.
logistical costs; and the harsher marine These same countries are also leaders in publishing scientific papers, standards
environment they operate in, which development and adoption, as well as patents filing and technology deployment. Given the
impacts total installation costs (Lacal- thinness of the market, installed costs showed volatility. Factors were various and included:
Arántegui, Yusta, Domínguez-Navarro, project site characteristics – including ownership of transmission assets by transmission
2018). These installation costs are also system operators (TSOs) or at the project level; the market’s progress towards maturity; and
significant. Generally speaking, nearshore dependencies within the supply chain across regions.
wind farms in shallower water have lower There is still a large potential in learning-by-RD&D through technology improvements.
installed costs than those farther from the This includes: the use of specialised installation vessels (see more below); the spreading
shore in deeper water, due to the latter’s of offshore wind farm clusters; improvements in construction time; learning-by-doing
greater logistical costs for installation and through industrial manufacturing; in the supply chain and in relation to the materials used in
the increased foundation costs. turbines, foundations, cabling, etc.; and through economies of scale.
Figure 1 shows that after an overall The global weighted average levelised cost of electricity (LCOE) of offshore wind

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