Floating offshore wind and the real options to relocate

Jostein Tvedt

Energy Economics, 2022, vol. 116, issue C

Abstract: Real options to relocate may improve the profitability of the floating offshore wind industry. Location and market switching can contribute to mitigating parts of the cost disadvantage of floating versus fixed-bottom offshore wind. The article derives optimal relocation strategies and real options values under uncertainty. Risk factors that may increase the value of relocation options include electricity prices, capacity factors, political uncertainty, collateral valuation, environmental issues and technological progress.

Keywords: Floating offshore wind; Mobility; Value of flexibility; Real options valuation (search for similar items in EconPapers)
JEL-codes: O13 Q42 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:116:y:2022:i:c:s0140988322005217

DOI: 10.1016/j.eneco.2022.106392

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