IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v10y2017i4p464-d94797.html
   My bibliography  Save this article

The Role of Logistics in Practical Levelized Cost of Energy Reduction Implementation and Government Sponsored Cost Reduction Studies: Day and Night in Offshore Wind Operations and Maintenance Logistics

Author

Listed:
  • Thomas Poulsen

    (Department of Mechanical and Manufacturing Engineering, Aalborg University, A.C. Meyers Vænge 15, 2450 Copenhagen SV, Denmark)

  • Charlotte Bay Hasager

    (Department of Wind Energy, Technical University of Denmark, Risø Campus, Frederiksborgvej 399, 4000 Roskilde, Denmark)

  • Christian Munk Jensen

    (Offshoreenergy.dk, Dokvej 3, 6700 Esbjerg, Denmark)

Abstract

This paper reveals that logistics make up at least 17% of annual operational expenditure costs for offshore wind farms. Annual operational expenditure is found to vary by a factor of 9.5, making its share of levelized cost of energy for offshore wind range from 13% to 57%. These are key findings of a 20-month research project targeting cost reduction initiatives for offshore wind systems. The findings reveal that cost-out measures are difficult to implement due to cultural differences. Implementation efforts are rendered by personnel located offshore in a harsh sea environment which is in stark contrast to the shore-based office personnel who develop studies directing cost reduction efforts. This paper details the company motivation to join industry-wide cost reduction initiatives. A business case for offshore wind operations and maintenance logistics yielding 1% savings in levelized cost of energy is included on how to expand working hours from daytime to also work at night.

Suggested Citation

  • Thomas Poulsen & Charlotte Bay Hasager & Christian Munk Jensen, 2017. "The Role of Logistics in Practical Levelized Cost of Energy Reduction Implementation and Government Sponsored Cost Reduction Studies: Day and Night in Offshore Wind Operations and Maintenance Logistic," Energies, MDPI, vol. 10(4), pages 1-28, April.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:4:p:464-:d:94797
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/10/4/464/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/10/4/464/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Poulsen, Thomas & Lema, Rasmus, 2017. "Is the supply chain ready for the green transformation? The case of offshore wind logistics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 758-771.
    2. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 4.
    3. Mahmood Shafiee & Fateme Dinmohammadi, 2014. "An FMEA-Based Risk Assessment Approach for Wind Turbine Systems: A Comparative Study of Onshore and Offshore," Energies, MDPI, vol. 7(2), pages 1-24, February.
    4. Edenhofer, Ottmar & Hirth, Lion & Knopf, Brigitte & Pahle, Michael & Schlömer, Steffen & Schmid, Eva & Ueckerdt, Falko, 2013. "On the economics of renewable energy sources," Energy Economics, Elsevier, vol. 40(S1), pages 12-23.
    5. Chang-Gi Min & Jong Keun Park & Don Hur & Mun-Kyeom Kim, 2015. "The Economic Viability of Renewable Portfolio Standard Support for Offshore Wind Farm Projects in Korea," Energies, MDPI, vol. 8(9), pages 1-20, September.
    6. Ueckerdt, Falko & Hirth, Lion & Luderer, Gunnar & Edenhofer, Ottmar, 2013. "System LCOE: What are the costs of variable renewables?," Energy, Elsevier, vol. 63(C), pages 61-75.
    7. Gross, Robert & Blyth, William & Heptonstall, Philip, 2010. "Risks, revenues and investment in electricity generation: Why policy needs to look beyond costs," Energy Economics, Elsevier, vol. 32(4), pages 796-804, July.
    8. Heptonstall, Philip & Gross, Robert & Greenacre, Philip & Cockerill, Tim, 2012. "The cost of offshore wind: Understanding the past and projecting the future," Energy Policy, Elsevier, vol. 41(C), pages 815-821.
    9. Maria Martinez Luengo & Athanasios Kolios, 2015. "Failure Mode Identification and End of Life Scenarios of Offshore Wind Turbines: A Review," Energies, MDPI, vol. 8(8), pages 1-16, August.
    10. Blanco, María Isabel, 2009. "The economics of wind energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1372-1382, August.
    11. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    12. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
    13. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
    14. Paul L. Joskow, 2011. "Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies," American Economic Review, American Economic Association, vol. 101(3), pages 238-241, May.
    15. Thomas Poulsen & Charlotte Bay Hasager, 2016. "How Expensive Is Expensive Enough? Opportunities for Cost Reductions in Offshore Wind Energy Logistics," Energies, MDPI, vol. 9(6), pages 1-23, June.
    16. Laura Castro-Santos & Elson Martins & C. Guedes Soares, 2016. "Methodology to Calculate the Costs of a Floating Offshore Renewable Energy Farm," Energies, MDPI, vol. 9(5), pages 1-27, April.
    17. Shafiee, Mahmood, 2015. "Maintenance logistics organization for offshore wind energy: Current progress and future perspectives," Renewable Energy, Elsevier, vol. 77(C), pages 182-193.
    18. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 4.
    19. Evans, Annette & Strezov, Vladimir & Evans, Tim J., 2009. "Assessment of sustainability indicators for renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1082-1088, June.
    20. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    21. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 1.
    22. Frank Hoster, 1999. "Effects of a European electricity market on the German electricity industry: results from a simulation model of the European power systems," Applied Economics, Taylor & Francis Journals, vol. 31(1), pages 107-122.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richmond, M. & Sobey, A. & Pandit, R. & Kolios, A., 2020. "Stochastic assessment of aerodynamics within offshore wind farms based on machine-learning," Renewable Energy, Elsevier, vol. 161(C), pages 650-661.
    2. Chul-Yong Lee & Jaekyun Ahn, 2020. "Stochastic Modeling of the Levelized Cost of Electricity for Solar PV," Energies, MDPI, vol. 13(11), pages 1-18, June.
    3. Andrzej Jezierski & Cezary Mańkowski & Rafał Śpiewak, 2021. "Energy Savings Analysis in Logistics of a Wind Farm Repowering Process: A Case Study," Energies, MDPI, vol. 14(17), pages 1-23, September.
    4. Javier Serrano González & Bruno López & Martín Draper, 2021. "Optimal Pitch Angle Strategy for Energy Maximization in Offshore Wind Farms Considering Gaussian Wake Model," Energies, MDPI, vol. 14(4), pages 1-18, February.
    5. Alexandra G. Papadopoulou & George Vasileiou & Alexandros Flamos, 2020. "A Comparison of Dispatchable RES Technoeconomics: Is There a Niche for Concentrated Solar Power?," Energies, MDPI, vol. 13(18), pages 1-22, September.
    6. Orlando Durán & Paulo Sergio Afonso & Paulo Andrés Durán, 2019. "Spare Parts Cost Management for Long-Term Economic Sustainability: Using Fuzzy Activity Based LCC," Sustainability, MDPI, vol. 11(7), pages 1-14, March.
    7. Lerche, J. & Lorentzen, S. & Enevoldsen, P. & Neve, H.H., 2022. "The impact of COVID -19 on offshore wind project productivity – A case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    8. Tazi, Nacef & Safaei, Fatemeh & Hnaien, Faicel, 2022. "Assessment of the levelized cost of energy using a stochastic model," Energy, Elsevier, vol. 238(PB).
    9. Jäger-Roschko, Moritz & Weigell, Jürgen & Jahn, Carlos, 2019. "Modelling of spare parts storage strategies for offshore wind," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Digital Transformation in Maritime and City Logistics: Smart Solutions for Logistics. Proceedings of the Hamburg International Conference of Logistics, volume 28, pages 83-108, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    10. Thomas Poulsen & Charlotte Bay Hasager, 2017. "The (R)evolution of China: Offshore Wind Diffusion," Energies, MDPI, vol. 10(12), pages 1-32, December.
    11. deCastro, M. & Salvador, S. & Gómez-Gesteira, M. & Costoya, X. & Carvalho, D. & Sanz-Larruga, F.J. & Gimeno, L., 2019. "Europe, China and the United States: Three different approaches to the development of offshore wind energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 55-70.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kritana Prueksakorn & Cheng-Xu Piao & Hyunchul Ha & Taehyeung Kim, 2015. "Computational and Experimental Investigation for an Optimal Design of Industrial Windows to Allow Natural Ventilation during Wind-Driven Rain," Sustainability, MDPI, vol. 7(8), pages 1-22, August.
    2. Hualin Xie & Jinlang Zou & Hailing Jiang & Ning Zhang & Yongrok Choi, 2014. "Spatiotemporal Pattern and Driving Forces of Arable Land-Use Intensity in China: Toward Sustainable Land Management Using Emergy Analysis," Sustainability, MDPI, vol. 6(6), pages 1-17, May.
    3. Stephan E. Maurer & Andrei V. Potlogea, 2021. "Male‐biased Demand Shocks and Women's Labour Force Participation: Evidence from Large Oil Field Discoveries," Economica, London School of Economics and Political Science, vol. 88(349), pages 167-188, January.
    4. Tie Hua Zhou & Ling Wang & Keun Ho Ryu, 2015. "Supporting Keyword Search for Image Retrieval with Integration of Probabilistic Annotation," Sustainability, MDPI, vol. 7(5), pages 1-18, May.
    5. T. Karski, 2019. "Opinions and Controversies in Problem of The So-Called Idiopathic Scoliosis. Information About Etiology, New Classification and New Therapy," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 12(5), pages 9612-9616, January.
    6. Wesley Mendes-da-Silva, 2020. "What Makes an Article be More Cited?," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 24(6), pages 507-513.
    7. Wisdom Akpalu & Mintewab Bezabih, 2015. "Tenure Insecurity, Climate Variability and Renting out Decisions among Female Small-Holder Farmers in Ethiopia," Sustainability, MDPI, vol. 7(6), pages 1-16, June.
    8. Wei Chen & Shu-Yu Liu & Chih-Han Chen & Yi-Shan Lee, 2011. "Bounded Memory, Inertia, Sampling and Weighting Model for Market Entry Games," Games, MDPI, vol. 2(1), pages 1-13, March.
    9. David Harborth & Sebastian Pape, 2020. "Empirically Investigating Extraneous Influences on the “APCO” Model—Childhood Brand Nostalgia and the Positivity Bias," Future Internet, MDPI, vol. 12(12), pages 1-16, December.
    10. Taeyeoun Roh & Yujin Jeong & Byungun Yoon, 2017. "Developing a Methodology of Structuring and Layering Technological Information in Patent Documents through Natural Language Processing," Sustainability, MDPI, vol. 9(11), pages 1-19, November.
    11. He-Yau Kang & Amy H. I. Lee & Tzu-Ting Huang, 2016. "Project Management for a Wind Turbine Construction by Applying Fuzzy Multiple Objective Linear Programming Models," Energies, MDPI, vol. 9(12), pages 1-15, December.
    12. A. B. Atkinson & Stephen P. Jenkins, 2020. "A Different Perspective on the Evolution of UK Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 253-266, June.
    13. Haiyan Xu & Yanhui Ding & Jing Sun & Kun Zhao & Yuanjian Chen, 2019. "Dynamic Group Recommendation Based on the Attention Mechanism," Future Internet, MDPI, vol. 11(9), pages 1-15, September.
    14. Adina Letiţia Negruşa & Valentin Toader & Aurelian Sofică & Mihaela Filofteia Tutunea & Rozalia Veronica Rus, 2015. "Exploring Gamification Techniques and Applications for Sustainable Tourism," Sustainability, MDPI, vol. 7(8), pages 1-30, August.
    15. Ahmad N. Alkenani & Mohammad Ashraf & Ghulam Mohammad, 2020. "Quantum Codes from Constacyclic Codes over the Ring F q [ u 1 , u 2 ]/〈 u 1 2 - u 1 , u 2 2 - u 2 , u 1 u 2 - u 2 u 1 〉," Mathematics, MDPI, vol. 8(5), pages 1-11, May.
    16. Shang-Yuan Chen & Jui-Ting Huang, 2012. "A Smart Green Building: An Environmental Health Control Design," Energies, MDPI, vol. 5(5), pages 1-16, May.
    17. Yanhong Feng & Xu Yu & Gai-Ge Wang, 2019. "A Novel Monarch Butterfly Optimization with Global Position Updating Operator for Large-Scale 0-1 Knapsack Problems," Mathematics, MDPI, vol. 7(11), pages 1-31, November.
    18. Xiaoshu Cao & Feiwen Liang & Huiling Chen & Yongwei Liu, 2017. "Circuity Characteristics of Urban Travel Based on GPS Data: A Case Study of Guangzhou," Sustainability, MDPI, vol. 9(11), pages 1-21, November.
    19. S. B. Reshetnikov & M. R. Skirdov, 2017. "Analysis of methodological approaches to determination and assessment of the human capital," Russian Journal of Industrial Economics, MISIS, vol. 10(1).
    20. Mi Jung Son & Jin Han Park & Ka Hyun Ko, 2019. "Some Hesitant Fuzzy Hamacher Power-Aggregation Operators for Multiple-Attribute Decision-Making," Mathematics, MDPI, vol. 7(7), pages 1-33, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:10:y:2017:i:4:p:464-:d:94797. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.