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Economies of scale, learning effects and offshore wind development costs

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  • Dismukes, David E.
  • Upton, Gregory B.

Abstract

This paper presents a model of overnight development costs for offshore wind projects and tests for the presence of economies of scale and learning effects. Both industry-wide and country-specific learning effects are analyzed. Recently, “pilot projects” have been proposed in states such as Maine and New Jersey with the hope of inducing cost savings in future larger utility scale projects. Therefore the impact of country-specific learning effects are of particular importance.

Suggested Citation

  • Dismukes, David E. & Upton, Gregory B., 2015. "Economies of scale, learning effects and offshore wind development costs," Renewable Energy, Elsevier, vol. 83(C), pages 61-66.
    • Handle: RePEc:eee:renene:v:83:y:2015:i:c:p:61-66
    DOI: 10.1016/j.renene.2015.04.002
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    3. Dylan F. Jones & Graham Wall, 2016. "An extended goal programming model for site selection in the offshore wind farm sector," Annals of Operations Research, Springer, vol. 245(1), pages 121-135, October.
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    6. van der Loos, Adriaan & Normann, Håkon E. & Hanson, Jens & Hekkert, Marko P., 2021. "The co-evolution of innovation systems and context: Offshore wind in Norway and the Netherlands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    7. John W. Day & Christopher F. D’Elia & Adrian R. H. Wiegman & Jeffrey S. Rutherford & Charles A. S. Hall & Robert R. Lane & David E. Dismukes, 2018. "The Energy Pillars of Society: Perverse Interactions of Human Resource Use, the Economy, and Environmental Degradation," Biophysical Economics and Resource Quality, Springer, vol. 3(1), pages 1-16, March.
    8. Elia, A. & Kamidelivand, M. & Rogan, F. & Ó Gallachóir, B., 2021. "Impacts of innovation on renewable energy technology cost reductions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    9. Benini, Giacomo & Cattani, Gilles, 2022. "Measuring the long run technical efficiency of offshore wind farms," Applied Energy, Elsevier, vol. 308(C).
    10. Lenzen, Manfred & McBain, Bonnie & Trainer, Ted & Jütte, Silke & Rey-Lescure, Olivier & Huang, Jing, 2016. "Simulating low-carbon electricity supply for Australia," Applied Energy, Elsevier, vol. 179(C), pages 553-564.
    11. Rubio-Domingo, G. & Linares, P., 2021. "The future investment costs of offshore wind: An estimation based on auction results," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    12. Dedecca, João Gorenstein & Hakvoort, Rudi A. & Ortt, J. Roland, 2016. "Market strategies for offshore wind in Europe: A development and diffusion perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 286-296.
    13. Santhakumar, Srinivasan & Meerman, Hans & Faaij, André, 2021. "Improving the analytical framework for quantifying technological progress in energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    14. Vieira, M. & Snyder, B. & Henriques, E. & Reis, L., 2019. "European offshore wind capital cost trends up to 2020," Energy Policy, Elsevier, vol. 129(C), pages 1364-1371.
    15. Bigerna, Simona & Bollino, Carlo Andrea & Micheli, Silvia, 2016. "Renewable energy scenarios for costs reductions in the European Union," Renewable Energy, Elsevier, vol. 96(PA), pages 80-90.
    16. Shields, Matt & Beiter, Philipp & Nunemaker, Jake & Cooperman, Aubryn & Duffy, Patrick, 2021. "Impacts of turbine and plant upsizing on the levelized cost of energy for offshore wind," Applied Energy, Elsevier, vol. 298(C).
    17. 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).
    18. Elia, A. & Taylor, M. & Ó Gallachóir, B. & Rogan, F., 2020. "Wind turbine cost reduction: A detailed bottom-up analysis of innovation drivers," Energy Policy, Elsevier, vol. 147(C).
    19. Schwanitz, Valeria Jana & Wierling, August, 2016. "Offshore wind investments – Realism about cost developments is necessary," Energy, Elsevier, vol. 106(C), pages 170-181.

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