Offshore Wind Farm Development

3 Hours and 33 Minutes That’s the duration of one of the longest conference calls ☎️ I have been on. But what’s special about this one you may ask ? This was 2015, no Teams yet, and the final call to close out a pre-financial close due diligence with an international consortium of commercial lenders, providing more than 1 billion Euro 💶 in non-recourse secured construction and term loan to an offshore wind farm. I believe that project finance can and should play a key role in the global 🌎 expansion of offshore wind. Two good reasons: 👍 Debt is generally the cheapest form of capital and reduces the total cost of capital. 👍Project financed projects often outperform balance sheet / corporate financed ones. The last point is particularly dear to me. The development and execution of an GW scale offshore wind farm is a highly complex undertaking that requires diligent planning and preparation and experience of the team is absolutely essential. In this respect I highly recommend reading, Prof. Bent Flyvbjerg‘s book „How BIG things get done“ for some great insights. We currently see offshore wind projects on the global market, that are not applying best practices and some of them even making the same mistakes we saw many years ago when the industry was still in its infancy. I fear that as we see more and more projects being realized by new players and teams with less or no experience this will even increase. Ultimately this may lead to projects being delayed and overspending their budgets and not delivering on the promised benefits. This can decrease overall confidence in the sector. What can project finance do about this you ask ? And integral part of any project financing is that all technical, legal and commercial aspects of the project will be will be scrutinized 🧐 by independent third parties on behalf of the project’s lenders. This includes for example a review of the status of the license and permitting, an assessment of the experience of the project participants, evaluation of the project site conditions and appropriateness of the design, its construction methods, the terms and conditions of the contracts, the robustness of the fabrication and construction schedule, as well as the correct level of the projects budget incl. contingency. If done diligently by experience advisor, risks can be caught prior and appropriate mitigation measures still put in place, creating a win win for everyone. A lenders pre-financial close due diligence has to be more than a tick ✅ in the box exercise! Some examples, back then we mandated that all projects need to have a quantitative risk assessment and stress testing as basis for the sizing of the contingency, sometimes recommended contract terms and conditions be improved and we even required project teams to be reinforced when needed. The credit agreement 📄 will also put in place crucial oversight measures to ensure the project stays on track to be delivered successfully.

🌊🔋 Exciting Week for Floating Offshore Wind Projects! The floating offshore wind sector saw significant strides forward this week. Here are the highlights: EDF’s Italian Subsidiary Acquires Major Stake in 975 MW Floating Wind Project Offshore Sicily Edison, EDF’s Italian subsidiary, acquired a 50% stake in Wind Energy Pozzallo, a company developing a 975 MW floating offshore wind project off the coast of Pozzallo in Sicily. This project, set to significantly reduce CO2 emissions, aligns with Italy's energy and climate goals and Edison’s growth plan in renewable energy. 🌱🇮🇹 Japanese Company Joins IX Renewables for Floating Wind Project in Taiwan Japan’s GF Corporation partnered with IX Renewables for the Rui-Li Phase 1 project in Taiwan. Featuring twelve 15 MW turbines, this project is set to participate in Taiwan's upcoming offshore wind tender, demonstrating the potential for commercial-scale floating wind farms in the region. 🌏🇹🇼 Principle Power and HSG SUNGDONG Shipbuilding Co., Ltd. Collaborate on WindFloat Foundations in South Korea Principle Power and HSG SUNGDONG Shipbuilding Co., Ltd. signed a MoU to advance the engineering and scalable production of WindFloat technologies. This collaboration aims to bolster South Korea’s ambition to achieve 14.3 GW of offshore wind capacity by 2030. 🇰🇷🔧 Floating Power Plant Purchases Siemens Energy Gamesa Turbine for Demonstrator Project Denmark’s Floating Power Plant acquired a 4.3 MW turbine from Siemens Gamesa for its demonstrator project off the coast of Gran Canaria. This project will showcase an integration of wind power, wave power, and hydrogen storage technologies. 🌊🇩🇰 Norway Advances Floating Offshore Wind Projects Norway proposed a new support scheme for floating offshore wind projects in the Vestavind B and Vestavind F areas. This development is crucial for securing state aid and moving closer to the government's goal of allocating 30 GW of offshore wind by 2040. 🇳🇴⚖️ Exciting times ahead for renewable energy! Share your thoughts and updates. Let's continue the conversation on advancing renewable energy! 🌎💬

Unlocking Vietnam's Offshore Wind Potential The National Center for Hydro-Meteorological Forecasting (NCHMF) in Vietnam, with support from the Norwegian Meteorological Institute, has released a comprehensive report assessing the technical potential of offshore wind energy in Vietnam. The project involved a dedicated team of experts from various fields including meteorology, hydrology, and renewable energy. Key Takeaways: 1️⃣ Vietnam's offshore wind technical potential is estimated at a substantial 1068 GW annually at a 100m hub height, exceeding previous World Bank estimates. 2️⃣ Wind energy potential varies significantly across Vietnam's waters, with the highest potential found in the northern Vietnam East Sea (VES), specifically the Gulf of Tonkin, and from Ninh Thuan to Ba Ria-Vung Tau. 3️⃣ Wind energy potential fluctuates seasonally, with the strongest potential during the winter months (Northeast Monsoon) and a secondary peak in the summer (Southwest Monsoon). 4️⃣ While significant, nearshore wind potential is lower than offshore due to terrain and other constraints. 5️⃣ The project produced a detailed wind atlas for Vietnam's maritime zones at various heights, providing valuable data for planning and investment. Challenges: ✴️ Limited access to high-resolution bathymetric data and a sparse observation network pose challenges for precise assessment in certain areas. ✴️ Complex coastal terrain and land-sea interactions can create localized wind variations and require careful consideration during wind farm development. ✴️ Potential impacts on marine ecosystems, noise pollution, and interference with radio signals need careful assessment and mitigation strategies. ✴️ Connecting offshore wind farms to the national grid can be complex and costly, requiring significant infrastructure investment. Opportunities: ✳️ Harnessing Vietnam's abundant offshore wind resource can enhance energy security and reduce reliance on fossil fuels. ✳️ Developing the offshore wind industry can create jobs and stimulate economic growth in coastal regions. ✳️ Transitioning to clean energy sources like offshore wind is crucial for meeting Vietnam’s COP26 commitments and mitigating climate change. ✳️ Continued collaboration with international partners, such as the Norwegian Meteorological Institute, can facilitate knowledge sharing and technology transfer. The report emphasizes the importance of further research and data collection, including higher-resolution wind data at various altitudes and updated information on Vietnam's Exclusive Economic Zone. The NCHMF recommends expanding the evaluation to include economic, social, and ecological potentials, developing forecasting solutions, and widely disseminating the project's findings to support the sustainable development of offshore wind energy in Vietnam. #WindEnergy #OffshoreWind #Vietnam #RenewableEnergy #EnergySustainability #ClimateChange #UNDP #Norway #EnergyTransition #Wind #Decarbonization

Imagine a discipline in offshore wind farm development that influences revenues over a lifetime: Layout Optimisation!   From a mathematical point of view, the problem that we try to solve is the following: We try to optimise a function f by varying a set of design variables (typically, turbine locations) which are subject to constraints (such as being located in the project area and not being too close to each other).   But what are we optimising for — energy yield, foundation locations, cable costs? All these disciplines must not be optimised in a silo, but need to be considered concurrently to come up with an optimal design. Therefore, we need a KPI able to correctly estimate what should be the tradeoff between construction, operations costs and energy production. The Levelised Cost of Electricity (LCoE) is one of the standard KPIs used within the industry for layout optimisation.   In simple terms, four key factors influence offshore wind farm layouts: ▪️Electrical cabling: Greater distances between turbines increase cabling costs and electrical losses. ▪️Energy yield: Turbines placed too close together suffer higher wake losses. ▪️Foundation costs: Highly dependent on bathymetry. ▪️Logistics costs: Affected by soil conditions and shore distance. So, how do we optimise layouts today? Machine learning is the game changer! With more complex wind farms and 100+ turbines to be placed, optimisation algorithms now handle layouts beyond human capacity.   Next time you spot an offshore wind farm, remember each layout is unique — for a reason!

We're pleased to announce that the #OffshoreWind for #Türkiye has now been published! This is the 8th offshore wind roadmap published under the World Bank Group's Offshore Wind Development Program, and it has already led to the Turkish Ministry of Energy and Natural Resources setting a target of 5GW of offshore wind by 2035. This Roadmap provides analysis and recommended actions to enable Türkiye to meet its 2035 target. This includes spatial assessment which identifies 66 GW of offshore wind potential, predominantly in 4 main areas in the north-west of the country. Work has recently started in preparation for offshore wind tenders, with site investigations, survey campaigns, and feasibility work all being undertaken over the next 2 years – more to follow on this. The preparation of the Roadmap stems from 5 years of engagement with the Government of Türkiye and relevant agencies. It is funded and supported by the World Bank’s ESMAP - Energy Sector Management Assistance Program in partnership with the IFC - International Finance Corporation and with support from PROBLUE Numerous people contributed to the production of this Roadmap, but special thanks go to the consultancy firms that led and undertook the analysis. This was led by COWI in association with RE-Consult, GazDay Energy Consultancy and Information Services, and The Biodiversity Consultancy Ltd. Download the report here: https://lnkd.in/euFKqmH8 Key highlights: 🌿 Green Potential: Favourable offshore wind resources are located near high-demand power centres, offering a large-scale, domestic power generation source which can increase Türkiye’s energy independence. ⚡ Energy Security: Offshore wind could significantly reduce Türkiye’s reliance on imported energy (currently c. 70% of demand), boosting domestic power generation. 📊 Growth Opportunities: The roadmap outlines a development pathway to achieve 7 GW of offshore wind capacity by 2040, with potential to create 110,000 jobs and add $16 billion in value to Türkiye’s economy by 2030. 🌍 Regional Hub: Offshore wind will diversify Türkiye’s energy mix and position the country as a key exporter of zero-carbon energy. 🔧 Supply Chain: Leveraging its strong onshore wind and maritime industries, Türkiye is poised to thrive in the offshore wind supply chain. 🌱 Net-Zero Transition: Offshore wind will play a vital role in Türkiye’s journey to carbon neutrality by 2053, but environmental and social impacts must be carefully managed. #GreenEnergy #EnergyTransition #WorldBank #ESMAP #WBG #TUREB #DURED T.C. Enerji ve Tabii Kaynaklar Bakanlığı Denizüstü Rüzgar Enerjisi Derneği (DÜRED) Türkiye Rüzgar Enerjisi Birliği (TÜREB) Laura VECVAGARE, Stephanie Gil, Yasemin Orucu, Mark Leybourne, Özge Özden, MBA, MA, IMP, PMP, Özgür SARHAN, Alan L. Ufuk Yaman Ibrahim Erden, PhD, MBA Elif Karakas, Sudipta Husain, Damla Er, Wiebke Schloemer, Irem IŞIK ÇETİN Chris Lloyd Pernille Skyt Giles Dickson Rebecca Williams

Dutch Cabinet Updates Requirements for New Offshore Wind Farm (translation News Release | 16-05-2025 | 17:58 CEST) This October, companies will be able to compete for the permit to build and operate a new wind farm in the North Sea. For the Nederwiek I-A Wind Farm Site, the tender criteria are being adjusted to improve the business case for offshore wind. The Minister for Climate and Green Growth is taking these measures to make the upcoming tender round more attractive and to ensure offshore wind farm construction continues at a realistic pace. Offshore wind energy is essential for our current and future energy system. It is a relatively affordable and easily scalable source of clean energy. For this reason, the cabinet has designated the Nederwiek I-A Wind Farm Site for the next offshore wind farm. This wind farm will have a capacity of 1 gigawatt (GW), which will supply about 3.5% of the Netherlands’ electricity consumption. Fewer Wind Farm Sites and Eased Tender Requirements The IJmuiden Ver Gamma-A and Gamma-B Wind Farm Sites (2 x 1 GW) were also initially planned for this tender round. However, due to worsening market conditions for offshore wind projects—partly caused by the lack of a large-scale increase in electricity demand—Gamma-A and B will be tendered at a later date. The rules and criteria for the Nederwiek I-A tender are also being eased. It was previously announced in September 2024 that the Wind Farm Site size would be reduced from 2 GW to 1 GW. This lowers the required investment per Wind Farm Site, reducing financial risk for wind farm developers. Additionally, the maximum liability for a developer is limited during the first two years of the permit. During this period, the developer can ask the minister to revoke the permit in exchange for the bank guarantee—should market conditions prove too unfavorable to continue developing the wind farm. The cabinet has also relaxed the evaluation criteria for bids from wind farm developers. These criteria encourage innovations in areas such as ecology and circularity. By relaxing them, the associated costs for implementing such innovations can be reduced. Moreover, the voluntary financial bid will only need to be paid starting from the realization of the wind farm, rather than at the time of permitting.

Delighted to post our latest work on off-shore wind and decarbonization using our SWITCH-Japan power sector capacity expansion model: Abstract: Offshore wind (OSW) power is critical to addressing energy security issues in nations with limited land and fuel resources. This study aims to assess the quality of OSW resources with high temporal and spatial resolution and to elucidate the economically feasible deployment of OSW using advanced power system models with Japan as a case study. First, comprehensive evaluations of OSW resources were performed by integrating a geographic information system (GIS)-based resource assessment with simulated data for hourly resource availability and renewable power plant operation. Then, using the ‘SWITCH-Japan’ model developed in our previous study, four key policy scenarios (‘pathways’) were analyzed. Each scenario incorporated three technology cost sensitivities and was assessed on multiple criteria including affordability, energy security, and land-use change. Finally, the potential for hydrogen production in other sectors was explored. We found that the Least-Cost scenario, which accelerates renewable energy growth, reduces average system costs by 43% and increases energy self-sufficiency by 31 percentage point compared to the business-as-usual scenario. While it is a highly valuable resource, OSW nonetheless necessitates significant infrastructure development and potentially faces both stricter regulations and local opposition. In recognition of this, the Limited Onshore Resources scenario reduces direct land use by half but finds only a slight increase in overall costs. While the balance of OSW potential is utilized for power systems, the remainder can materially enhance energy security for entire economies. Ultimately, OSW energy presents a strategic opportunity for nations to achieve energy self-reliance and reduce import dependence, emphasizing the need for timely infrastructure development. Thanks to the Marine Energy Program at the US Department of Energy (https://lnkd.in/gW6SHyKr) and the James and Katherine Lau Foundation for their support! Kenji Shiraishi, Umed Paliwal, Nikit Abhyankar, Daniel M Kammen, Amol Phadke & Won Young Park (2025)"Exploring offshore wind’s potential to enhance energy security in nations with limited land and fuel resources" Environ. Res. Lett. 20 034006. To read or download (open access!) https://lnkd.in/gb7siXzK

Germany just committed $3.2 billion to build one of Europe's largest offshore wind farms, capable of powering 1.6 million homes. Here's why this massive bet matters. The Borkum Riffgrund 3 project will feature 83 massive turbines stretching across the North Sea, each standing 280 meters tall. These engineering giants will generate 900 MW of clean electricity, enough to replace several coal plants and slash carbon emissions by 1.8 million tons annually. But the project faces serious headwinds. Critics argue the costs are spiraling out of control, with electricity prices potentially rising for consumers. Environmental groups worry about impacts on marine ecosystems and fishing communities, creating a complex balancing act between climate goals and economic reality. This wind farm represents Germany's all-in strategy for renewable energy independence. Success could prove offshore wind is the backbone of Europe's clean energy future. Check out the full story here: https://lnkd.in/gh4xMcHD