Abstract
Overview
Introduction
Proliferation of climate policies are instigating long-term wind strategies
split between domestically-focused wind generators and firms applying global
strategies to tap major growth opportunities. In the current context of
soaring turbine prices, supply bottlenecks and record wind farm valuations,
carefully crafted entry strategies are key to growing profitable and
competitive wind portfolios
Scope
- Data concerning power generation costs for the five major renewable
technologies and an awareness of associated subsidy systems across key markets
- Knowledge of the key factors governing wind power economics applied to
generation costs and based on realistic onshore/offshore development costs
- Detailed insight into the cost, profitability and economic competitiveness
of the three main onshore/offshore wind power market entry strategies
- A case study assessing the likely relative profitability of different
onshore/offshore wind power market entry strategies in the UK and Germany
Report Highlights
Today, wind is more competitive against fossil fuel than ever, despite higher
turbine prices. The biggest price reduction of renewable technologies and
learning curves are found in markets operating feed-in tariffs. This support
system has delivered the most wind capacity, whereas quota and certificate
mechanisms have largely underperformed
Wind power projects are front-loaded and capital intensive, therefore hardware
prices and financing standards and structures have a high degree of influence
on the economics of wind farming. Wind power generation costs are also highly
dependent on wind conditions, turbine load factor characteristics as well as
operation and maintenance costs
Onshore wind is profitable, provided that the four key parameters are
optimized, with appropriate support mechanisms in place. Offshore wind, on the
other hand, is a more high-risk high-reward business. Under the current market
conditions, the most competitive portfolio is generally one that builds
offshore but buys existing onshore wind capacity
Reasons to Purchase
- Understand how technical, financial, regulatory and legislative factors
will impact the economics of your existing and/or future wind projects
- Evaluate the upsides and drawbacks, profitability profiles, and economic
competitiveness of the main onshore/offshore wind market entry models
- Formulate and apply successful strategies to solidify existing portfolios
and expand into new global markets to unlock further competitive advantages
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