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.
Scenarios displaying fluctuations in Operating Expenditure share of total costs.
Selected business case impact on offshore wind farm levelized cost of energy
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 Offshoreenergy.dk, Dokvej 3, 6700 Esbjerg, Denmark
* Correspondence: Tel.: +45-2383-1621 or +45-212-661-88
Energies http://www.mdpi.com/journal/energies
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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