Saturday, August 5, 2017

The Role of Logistics in Practical Levelized Cost of Energy Reduction Implementation and Government Sponsored Cost Reduction Studies: Day and Night in Offshore Wind Operations and Maintenance Logistics

Abstract: This paper reveals that logistics make up at least 17% of annual operational expenditure costs for offshore wind farms. Annual operational expenditure is found to vary by a factor of 9.5, making its share of levelized cost of energy for offshore wind range from 13% to 57%. These are key findings of a 20-month research project targeting cost reduction initiatives for offshore wind systems. The findings reveal that cost-out measures are difficult to implement due to cultural differences. Implementation efforts are rendered by personnel located offshore in a harsh sea environment which is in stark contrast to the shore-based office personnel who develop studies directing cost reduction efforts. This paper details the company motivation to join industry-wide cost reduction initiatives. A business case for offshore wind operations and maintenance logistics yielding 1% savings in levelized cost of energy is included on how to expand working hours from daytime to also work at night.
Calculated annual OpEx cost ranges per mega-Watt for the eleven studies.
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Scenarios displaying fluctuations in Operating Expenditure share of total costs.
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Selected business case impact on offshore wind farm levelized cost of energy
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Business case outcome for working 12/7 (left columns, daytime only) and 24/7 (right columns, daytime and at night) for three cases (land-based CTV, sea-based CTV and sea-based SOV) for low and high impact estimates.
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by Thomas Poulsen 1,*, Charlotte Bay Hasager 2 and Christian Munk Jensen 3
1 Department of Mechanical and Manufacturing Engineering, Aalborg University, A.C. Meyers Vænge 15, 2450 Copenhagen SV, Denmark
2 Department of Wind Energy, Technical University of Denmark, Risø Campus, Frederiksborgvej 399, 4000 Roskilde, Denmark
3, Dokvej 3, 6700 Esbjerg, Denmark
* Correspondence: Tel.: +45-2383-1621 or +45-212-661-88
Volume 10, Issue 4; 2017; pages 464; Published: 2 April 2017
Keywords: operational expenditure (OpEx); operations and maintenance (O&M); levelized cost of energy (LCoE); offshore wind; cost reductions; logistics; shipping; supply chain management (SCM)

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