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Table 4.2 Weighted average capacity factors for offshore wind projects in six countries, 2010 and 2019 OFFSHORE WIND 2010 2019 Percentage change 2010-2019 % United Kingdom 36 52 46% Belgium 38 43 14% Denmark 44 50 13% China 30 33 10% Japan 28 30 7% Germany 46 44 3% Source: IRENA Renewable Cost Database. OPERATION AND MAINTENANCE COSTS O&M costs for offshore wind farms are higher than those for onshore wind. This is mainly due to the harsher, marine environment and higher costs for access to the wind site for performing maintenance on turbines and cabling. The latter is heavily influenced by weather conditions and the availability of skilled personnel and specialised vessels. As with onshore wind, however, there is limited data available for offshore wind O&M costs. there is also general uncertainty around lifetime O&M costs for offshore wind, owing to limited operational experience, especially in sites farther offshore. As mentioned in the capacity factor discussion, O&M practices are being continuously refined to reduce costs and improve availability. As a result of improved capacity factors, and due to increased competition in O&M provision, O&M costs per kWh have been falling through time. For 2018, representative ranges for current projects fell between USD 70/kW per year to USD 129/kW per year (IEA et al., 2018; Ørsted, 2019; Stehly, T. et al.,2018). The lower range was observed for projects in established European markets and in China, usually with sites closer to shore. The range is broad because the O&M costs vary depending on local O&M optimisation, synergies from offshore wind farm zone clustering, as well as on the approach taken by the offshore wind farm owners after the initial turbine OEM warranty period. As the sector has grown, increased competition in O&M provision has emerged and has resulted in a variety of strategies to minimise O&M costs (e.g., the use of independent service providers, turbine OEMs service arms, in-house O&M, marine contractors, or a combination thereof). Besides the impact of experience and competition on O&M cost reduction, higher turbine ratings have reduced the unit O&M costs. An example of the O&M cost reduction impact from these factors comes from Ørsted – a major offshore wind developer with a portfolio of up to 9.9 GW of offshore wind farms in operation or under construction globally – who have been able to reduce O&M costs from 2015 to 2018 by over 43%, from USD 118 /kW/year to USD 67/kW/year (Ørsted, 2019). The global weighted-average total installed cost of offshore wind projects peaked in 2013, when it reached USD 5 740/kW, and has since fallen to USD 3 800/kW in 2019. 83PDF Image | RENEWABLE POWER GENERATION COSTS IN 2019
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