A lifecycle techno-economic model of offshore wind energy for different entry and exit instances

Ioannou, A., Angus, A. and Brennan, F. (2018) A lifecycle techno-economic model of offshore wind energy for different entry and exit instances. Applied Energy, 221, pp. 406-424. (doi: 10.1016/j.apenergy.2018.03.143)

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The offshore wind (OW) industry has reached reasonable maturity over the past decade and the European market currently consists of a diverse pool of investors. Often equity investors buy and sell stakes at different phases of the asset service life with a view to maximize their return on investment. A detailed assessment of the investment returns taking into account the technical parameters of the problem, is pertinent towards understanding the value of new and operational wind farms. This paper develops a high fidelity lifecycle techno-economic model, bringing together the most up-to-date data and parametric equations from databases and literature. Subsequently, based on a realistic case study of an OW farm in the UK, a sensitivity analysis is performed to test how input parameters influence the model output. Sensitivity analysis results highlight that the NPV is considerably sensitive to FinEX and revenue parameters, as well as to some OPEX parameters, i.e. the mean time to failure of the wind turbine components and the workboat significant wave height limit. Application of the model from the perspective of investors with different entry and exit timings derives the temporal return profiles, revealing important insights regarding the potential minimum asking and maximum offered price.

Item Type:Articles
Additional Information:This work was supported by grant EP/L016303/1 for Cranfield University and the University of Oxford, Centre for Doctoral Training in Renewable Energy Marine Structures (REMS) (http://www.rems-cdt. ac.uk/) from the UK Engineering and Physical Sciences Research Council (EPSRC).
Glasgow Author(s) Enlighten ID:Ioannou, Dr Anastasia
Authors: Ioannou, A., Angus, A., and Brennan, F.
College/School:College of Science and Engineering > School of Engineering > Systems Power and Energy
Journal Name:Applied Energy
ISSN (Online):0306-2619
Published Online:17 April 2018
Copyright Holders:Copyright © 2019 The Authors
First Published:First published in Applied Energy 221:406-424
Publisher Policy:Reproduced under a Creative Commons License

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