The cost of delivering offshore wind schemes could be reduced by up to 15% by the end of this decade through more effective supply chain engagement, according to research by EC Harris.
With the European Wind Energy Association (EWEA) estimating that by 2020, €10.4 billion could be invested in Europe’s offshore wind industry on an annual basis, EC Harris believes that through the supply chain alone, there is scope to save the industry up to €1.5 billion each year provided certain market conditions are in capitalise on the cost reduction opportunities identified. The findings from the report came from a series of focus interviews and workshops that EC Harris held with organisations across all tiers of the European offshore wind supply chain. However it also cautions that whilst the cost of delivering these schemes remains at the current level, much of the proposed investment in new development is unlikely to materialise. With the next generation of offshore wind farms likely to be located further away from shore and in deeper water, the study showed that the growth of the market will hinge on the industry’s ability to significantly reduce costs and deliver power at a price that’s affordable for developers, investors and customers alike.
With the European Wind Energy Association (EWEA) estimating that by 2020, €10.4 billion could be invested in Europe’s offshore wind industry on an annual basis, EC Harris believes that through the supply chain alone, there is scope to save the industry up to €1.5 billion each year provided certain market conditions are in capitalise on the cost reduction opportunities identified. The findings from the report came from a series of focus interviews and workshops that EC Harris held with organisations across all tiers of the European offshore wind supply chain. However it also cautions that whilst the cost of delivering these schemes remains at the current level, much of the proposed investment in new development is unlikely to materialise. With the next generation of offshore wind farms likely to be located further away from shore and in deeper water, the study showed that the growth of the market will hinge on the industry’s ability to significantly reduce costs and deliver power at a price that’s affordable for developers, investors and customers alike.