IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/92869.html
   My bibliography  Save this paper

Costs and competitive advantage of nearshore wind energy

Author

Listed:
  • Klinge Jacobsen, Henrik
  • Hevia-Koch, Pablo
  • Wolter, Christoph

Abstract

Nearshore wind development has been seen as the cost reducing option that could shrink the cost gap between onshore and offshore development. The cost advantage is linked to more shallow water and shorter connection to shore even avoiding an offshore substation. Public tendering for offshore wind in Denmark has opened up for near-shore wind turbine farms as an alternative for lowering the cost of new offshore wind development. Whether these proposed near-shore locations will manage to significantly lower costs is not clear. The tenders have resulted in bids that are at comparable levels for the nearshore and the further offshore wind farms. We compare the cost drivers and possible cost differentials with preferences for locating wind farms further away from the coast. The main cost driver is water depth and in the Danish case water depth is increasing slowly or is not even correlated with the distance from shore. Therefore the willingness to pay for moving turbines away from the coast may be sufficiently high to balance the increased cost. The actual comparison of costs and willingness to pay must be carried out for the specific case with cost characteristics and willingness to pay by the affected population.

Suggested Citation

  • Klinge Jacobsen, Henrik & Hevia-Koch, Pablo & Wolter, Christoph, 2018. "Costs and competitive advantage of nearshore wind energy," MPRA Paper 92869, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92869
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/92869/1/MPRA_paper_92869.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Working Papers 11-04, University of Delaware, Department of Economics.
    2. González, J. Serrano & Rodríguez, Á.G. González & Mora, J. Castro & Burgos Payán, M. & Santos, J. Riquelme, 2011. "Overall design optimization of wind farms," Renewable Energy, Elsevier, vol. 36(7), pages 1973-1982.
    3. 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.
    4. Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Power Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Land Economics, University of Wisconsin Press, vol. 87(2), pages 268-283.
    5. 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.
    6. Prässler, Thomas & Schaechtele, Jan, 2012. "Comparison of the financial attractiveness among prospective offshore wind parks in selected European countries," Energy Policy, Elsevier, vol. 45(C), pages 86-101.
    7. van der Zwaan, Bob & Rivera-Tinoco, Rodrigo & Lensink, Sander & van den Oosterkamp, Paul, 2012. "Cost reductions for offshore wind power: Exploring the balance between scaling, learning and R&D," Renewable Energy, Elsevier, vol. 41(C), pages 389-393.
    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. Ren, Zhengru & Verma, Amrit Shankar & Li, Ye & Teuwen, Julie J.E. & Jiang, Zhiyu, 2021. "Offshore wind turbine operations and maintenance: A state-of-the-art review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    2. Florin Onea & Eugen Rusu, 2019. "An Assessment of Wind Energy Potential in the Caspian Sea," Energies, MDPI, vol. 12(13), pages 1-18, July.
    3. McDonagh, Shane & Ahmed, Shorif & Desmond, Cian & Murphy, Jerry D, 2020. "Hydrogen from offshore wind: Investor perspective on the profitability of a hybrid system including for curtailment," Applied Energy, Elsevier, vol. 265(C).

    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. Hevia-Koch, Pablo & Klinge Jacobsen, Henrik, 2019. "Comparing offshore and onshore wind development considering acceptance costs," Energy Policy, Elsevier, vol. 125(C), pages 9-19.
    2. van Kooten, G. Cornelis, 2015. "All you want to know about the Economics of Wind Power," Working Papers 241693, University of Victoria, Resource Economics and Policy.
    3. Ederer, Nikolaus, 2014. "The right size matters: Investigating the offshore wind turbine market equilibrium," Energy, Elsevier, vol. 68(C), pages 910-921.
    4. Levi, Peter G. & Pollitt, Michael G., 2015. "Cost trajectories of low carbon electricity generation technologies in the UK: A study of cost uncertainty," Energy Policy, Elsevier, vol. 87(C), pages 48-59.
    5. Russell, Aaron & Bingaman, Samantha & Garcia, Hannah-Marie, 2021. "Threading a moving needle: The spatial dimensions characterizing US offshore wind policy drivers," Energy Policy, Elsevier, vol. 157(C).
    6. Joalland, Olivier & Mahieu, Pierre-Alexandre, 2023. "Developing large-scale offshore wind power programs: A choice experiment analysis in France," Ecological Economics, Elsevier, vol. 204(PA).
    7. Voormolen, J.A. & Junginger, H.M. & van Sark, W.G.J.H.M., 2016. "Unravelling historical cost developments of offshore wind energy in Europe," Energy Policy, Elsevier, vol. 88(C), pages 435-444.
    8. Lion Hirth, 2015. "The Optimal Share of Variable Renewables: How the Variability of Wind and Solar Power affects their Welfare-optimal Deployment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    9. Peri, Erez & Becker, Nir & Tal, Alon, 2020. "What really undermines public acceptance of wind turbines? A choice experiment analysis in Israel," Land Use Policy, Elsevier, vol. 99(C).
    10. Oehlmann, Malte & Glenk, Klaus & Lloyd-Smith, Patrick & Meyerhoff, Jürgen, 2021. "Quantifying landscape externalities of renewable energy development: Implications of attribute cut-offs in choice experiments," Resource and Energy Economics, Elsevier, vol. 65(C).
    11. Lee, Min-Kyu & Nam, Jungho & Kim, Miju, 2023. "Valuing the public preference for offshore wind energy: The case study in South Korea," Energy, Elsevier, vol. 263(PB).
    12. Kim, Hyo-Jin & Kim, Ju-Hee & Yoo, Seung-Hoon, 2019. "Social acceptance of offshore wind energy development in South Korea: Results from a choice experiment survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    13. Bonar, Paul A.J. & Bryden, Ian G. & Borthwick, Alistair G.L., 2015. "Social and ecological impacts of marine energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 486-495.
    14. Philipp Beiter & Aubryn Cooperman & Eric Lantz & Tyler Stehly & Matt Shields & Ryan Wiser & Thomas Telsnig & Lena Kitzing & Volker Berkhout & Yuka Kikuchi, 2021. "Wind power costs driven by innovation and experience with further reductions on the horizon," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(5), September.
    15. Ladenburg, Jacob & Hevia-Koch, Pablo & Petrović, Stefan & Knapp, Lauren, 2020. "The offshore-onshore conundrum: Preferences for wind energy considering spatial data in Denmark," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    16. Brennan, Noreen & Van Rensburg, Thomas M, 2016. "Wind farm externalities and public preferences for community consultation in Ireland: A discrete choice experiments approach," Energy Policy, Elsevier, vol. 94(C), pages 355-365.
    17. Chakraborty, Sankhadeep & Dwivedi, Prasoom & Chatterjee, Sushanta K. & Gupta, Rajesh, 2021. "Factors to Promote Ocean Energy in India," Energy Policy, Elsevier, vol. 159(C).
    18. Devine-Wright, Patrick & Wiersma, Bouke, 2020. "Understanding community acceptance of a potential offshore wind energy project in different locations: An island-based analysis of ‘place-technology fit’," Energy Policy, Elsevier, vol. 137(C).
    19. Kaldellis, J.K. & Apostolou, D. & Kapsali, M. & Kondili, E., 2016. "Environmental and social footprint of offshore wind energy. Comparison with onshore counterpart," Renewable Energy, Elsevier, vol. 92(C), pages 543-556.
    20. Hall, Damon M. & Lazarus, Eli D., 2015. "Deep waters: Lessons from community meetings about offshore wind resource development in the U.S," Marine Policy, Elsevier, vol. 57(C), pages 9-17.

    More about this item

    Keywords

    offshore wind; cost curve; cost drivers; preferences; nearshore;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:92869. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.