From the onset, developers face greater competition for sites with the ideal characteristics particularly in relation to wind, shore proximity, soil composition, seabed dynamics, water depth, environmental concerns and local governing regulation. To acquire development rights, strong case planning and modeling needs to be applied in an environment where empirical data on everything from asset lifetime, cost base, availability performance and asset integrity remains sparse. As a result, whether they know it or not—many developers are currently taking on more risk on their binding investment decisions.
A promising industry emerges, but there are challenges
The offshore wind market is projected to triple in capacity between 2020 and 2025, and this is just the beginning.