Partner and Associate Director, Offshore Wind, Renewable Energy, O&M
Hamburg
Key Takeaways
The performance of offshore wind farms in the operational phase will impact the business cases of projects in several ways:
- Lower operational expenditure will lead to a reduction in LCoE.
- Improved operations will increase net energy generation by reducing downtime and increasing asset availability when the power is most needed.
- Better awareness of market conditions allows the O&M teams to plan their work in a way that the asset can generate when power is most needed by the grid and thus create more value.
- Strengthened ability to identify and address issues early on is likely to have a positive impact on the lifetime of the asset.
Unlocking Value through O&M
A review of recent offshore wind business cases shows that the importance of a focus on revenue during the lifetime of the asset creates most value of the business case expressed by the internal rate of return (IRR). (See Exhibit 1.)
How to Create Value in the Operational Phase
What is necessary to achieve strong O&M capabilities?
PEAK Wind and BCG have identified seven indicators that will help the offshore wind industry establish mature and more future-proof O&M practices:
- Finding the trade-off between innovation and standardization
- Moving from production-based to revenue-based availability metrics
- Redefining fitness-for-purpose throughout all phases of an offshore project
- Focus on continuously improving the production system
- Better optimization of synergies across portfolio and O&M collaboration with neighboring sites
- Designing data integration, learning models, and work processes to leverage predictables
- Earlier focus on life cycle management
Read the full report for a comprehensive guide on boosting offshore wind profitability.
Authors
Malte Hippe
Matti Scheu
Director, PEAK Wind
Lars Conradsen
Founding Partner, PEAK Wind