Economics of Offshore Wind Power: Challenges and Policy Considerations

This book provides an overview of the policy frameworks that have been employed to support offshore wind power, and their efficacy in nurturing sustainable cost reductions across the industry. A growing number of countries are increasingly receptive to the prospect of implementing policies to support the deployment of large-scale renewable energy. The promise of carbon-free, utility-scale power generation from offshore wind farms has incentivized and nurtured offshore wind development. However, the high relative costs of deploying offshore wind compared to alternatives have a history of making it a politically divisive pursuit. At the same time, when many countries are just beginning to explore the possibility of developing an offshore wind industry, many other countries are experiencing what can be described as policy fatigue over supporting offshore wind. If cost reductions are not proven sustainable by the early 2020s, government support for offshore wind may start to erode and even completely evaporate in several key offshore wind markets, with global repercussions. This book offers a clear picture of the current status and future challenges of the offshore wind industry globally, incorporating both a technical analysis of the cost drivers and a detailed analysis of policy design and industrial economics.

Poudineh, R., Brown, C., and Foley, B. (2017). Economics of Offshore Wind Power: Challenges and Policy Considerations, Palgrave Macmillan.

By: Rahmat Poudineh