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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

Thomas Poulsen (), Charlotte Bay Hasager () and Christian Munk Jensen ()
Additional contact information
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

Energies, 2017, vol. 10, issue 4, 1-28

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.

Keywords: operational expenditure (OpEx); operations and maintenance (O&M); levelized cost of energy (LCoE); offshore wind; cost reductions; logistics; shipping; supply chain management (SCM) (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
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