LAPSE:2018.1133
Published Article
LAPSE:2018.1133
How Expensive Is Expensive Enough? Opportunities for Cost Reductions in Offshore Wind Energy Logistics
November 28, 2018
This paper reveals that logistics may conservatively amount to 18% of the levelized cost of energy for offshore wind farms. This is the key finding from an extensive case study carried out within the organization of the world’s leading offshore wind farm developer and operator. The case study aimed to, and produced, a number of possible opportunities for offshore wind cost reductions through logistics innovation; however, within the case study company, no company-wide logistics organization existed to focus horizontally on reducing logistics costs in general. Logistics was not well defined within the case study company, and a logistics strategy did not exist. With full life-cycle costs of offshore wind farms still high enough to present a political challenge within the European Union in terms of legislation to ensure offshore wind diffusion beyond 2020, our research presents logistics as a next frontier for offshore wind constituencies. This important area of the supply chain is ripe to academically and professionally cultivate and harvest in terms of offshore wind energy cost reductions. Our paper suggests that a focused organizational approach for logistics both horizontally and vertically within the company organizations could be the way forward, coupled with a long-term legislative environment to enable the necessary investments in logistics assets and transport equipment.
Keywords
LCoE (levelized cost of energy), levelized cost of energy, logistics, logistics innovation, offshore wind, organization
Suggested Citation
Poulsen T, Hasager CB. How Expensive Is Expensive Enough? Opportunities for Cost Reductions in Offshore Wind Energy Logistics. (2018). LAPSE:2018.1133
Author Affiliations
Poulsen T: Department of Mechanical and Manufacturing Engineering, Aalborg University, A. C. Meyers Vænge 15, DK-2450 Copenhagen SV, Denmark [ORCID]
Hasager CB: Department of Wind Energy, Technical University of Denmark, Frederiksborgvej 399, DK-4000 Roskilde, Denmark [ORCID]
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Journal Name
Energies
Volume
9
Issue
6
Article Number
E437
Year
2016
Publication Date
2016-06-07
Published Version
ISSN
1996-1073
Version Comments
Original Submission
Other Meta
PII: en9060437, Publication Type: Journal Article
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LAPSE:2018.1133
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doi:10.3390/en9060437
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Nov 28, 2018
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CC BY 4.0
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[v1] (Original Submission)
Nov 28, 2018
 
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Nov 28, 2018
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https://psecommunity.org/LAPSE:2018.1133
 
Original Submitter
Calvin Tsay
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