Much of the perceived risk in floating offshore wind lies in the turbine generator systems themselves. By simplifying platform design and delivering greater cost certainty, new concrete foundation systems are helping turn deep-water projects into a commercially viable reality.
Most investors with renewable energy portfolios place offshore wind in a complex risk category. When they hear ‘offshore wind,’ there is often a slight pause at the other end of the line. It is sometimes referred to as the red-headed stepchild of renewables. Investors tend to have a higher comfort level with assets on land, rather than sending crews and equipment out to sea.
Their prevailing questions for onshore and offshore projects are the same: How much will it cost? How long will it take to deliver a cash yield? Will it deliver long-term stable returns? But the cost risk for offshore wind is generally deemed higher. Is it really? And can it be mitigated?