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Offshore wind is a promising source of clean and renewable energy. Yet to become truly competitive (i.e., absent government support) with traditional electricity generation technologies, the development costs of offshore wind projects need to decline by nearly half. This paper explores the challenges and opportunities in this emerging, strategic industry in the United Kingdom.
The offshore wind developments in the United Kingdom, with multiple projects in excess of 800MW being either built or planned—and a comprehensive support framework from the government, are positioning this technology to compete with today’s utility-scale coal and gas plants. Yet to become truly competitive (i.e., absent government support) with traditional electricity generation technologies, the development costs of offshore wind projects needs to decline by nearly 50 percent, from today’s £2.3 million/MW to around £1.3 million/MW.
Accenture believes such "megaprojects" will change offshore wind economics by pursuing scale efficiencies, implementing leading practices in development and operations and transforming the supply chain. Moreover, megaprojects will have significant and diverse effects, not only across the wind industry’s value chain, but also across the electricity and fuel value chains. This paper assesses and discusses the impacts of such megaprojects and their potential implications for the relevant players across the energy industry.
Overcoming the barriers and developing the capabilities to be successful in the offshore wind industry will mean different things for the players across the value chain. The sectors coming together to deliver offshore wind—utilities, oilfield services, upstream oil and gas, vessel providers and turbine manufacturers—have different roles, legacy characteristics and capabilities. The report describes in detail implications for:
Study Authors: Melissa Stark, lead, Clean Energy Mauricio Bermudez-Neubauer, lead, Offshore Wind
Contributors: Luca Corradi Freddie Darbyshire George Kitovitz Tessa Lennartz-Walker Steve McGill Sten Neumann Davi C. Quintiere Øyvind Strømme Peter Thompson Serge Younes Shengkai Zhao
May 22, 2012
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