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Conference programme 

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Poster session

Lead Session Chair:
Stephan Barth, Managing Director, ForWind - Center for Wind Energy Research, Germany
Andy Lewin Offshore Renewable Energy Catapult, United Kingdom
Co-authors:
Andy Lewin (1) F P
(1) Offshore Renewable Energy Catapult, GLASGOW, United Kingdom

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Poster
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Presenter's biography

Biographies are supplied directly by presenters at OFFSHORE 2015 and are published here unedited

Andy Lewin has spent 9 years working in the Renewable Energy Sector, the majority of which was spent at ScottishPower Renewables. He managed the delivery of several onshore wind projects prior to moving across to the offshore wind business to fill key roles in both the East Anglia Offshore Wind JV (with Vattenfall) and West of Duddon Sands JV (with DONG Energy). Andy is currently a Senior Project Manager at the Offshore Renewable Energy Catapult with responsibility for a variety of innovative projects and collaborative industry initiatives. Andy has a Masters Degree in Mechanical Engineering and Aeronautics.

Abstract

Are offshore wind costs reducing?

Introduction

In 2014, the UK based Offshore Renewable Energy Catapult working in partnership with The Crown Estate, the Offshore Wind Programme Board and the Offshore Wind Industry Council has evaluated the progress of the UK Offshore Wind Sector in reducing costs.

The project team has worked with all UK Owner Operators to calculate an annual industry average Levelised Cost of Energy (LCOE) for projects which have achieved the milestones of final investment decision and/or works completion in the period 2010-2014.

Approach

This quantitative assessment is the 1st of its kind to calculate and trend average LCOE over time. The study result will be finalised before the end of 2014 and will show how far the industry has progressed since the industry average cost of £140/MWh was assessed in 2011 as part of the Offshore Wind Cost Reduction Pathway Study.

The same study proposed that a target of £100/MWh by 2020 was achievable and it postulated a number of scenarios which might characterise the development of the offshore wind industry throughout this period.

Main body of abstract

Since 2011, a lot has changed in the UK Offshore Wind market; the volumes of projects being constructed are significantly lower than originally considered, but large scale turbine technology and next generation installation vessels have all been adopted more quickly than anticipated. However, what is the net effect of these changes and how does our progress across the technology, supply chain and financial aspects of an offshore wind project compare to what was anticipated previously? Fundamentally are we still on track to achieve the cost reductions necessary to meet our target by 2020?

In parallel with the quantitative assessment the project partners have designed a qualitative assessment to review the progress of individual cost drivers. Building on the work of the previous Offshore Wind Cost Reduction Pathways Study, the progress of individual cost indicators has been evaluated and a revised pathway has been developed. The new pathway reflects the course of the industry during the period 2011 – 2013 and identifies the future annual milestone achievements required to ensure we meet our targets. Having established the pathway in consultation with the partners and industry, an evidence gathering phase is about to commence to evaluate what progress the key stakeholders in the UK Offshore Wind Industry anticipate is achievable and how this compares to the milestones described in the pathway. This assessment will produce a cost reduction status of Offshore Wind in the UK and an anticipated trajectory of developments. This will highlight the cost drivers which require the greatest focus to ensure we meet our 2020 targets.


Conclusion

The quantitative and qualitative assessment will be drawn together by the end of 2014 to provide a retrospective view of the evolution of cost to date and a forecast of how costs are expected to reduce in the future. The findings of these assessments will be presented to the conference with an evaluation of the potential impacts on the Industry, the challenges to be addressed and the opportunities for greater innovation and collaboration across the sector to support the continued effort to drive down cost.


Learning objectives
Developing a better understanding of the current cost of Offshore Wind Projects and evaluating the trajectory of cost reductions will enable the industry promote the progress made to date and collaborate to focus on those areas requiring additional support to achieve their costs reduction potential.