Perspectives on how operation & maintenance (O&M) innovations contribute to the reduction of Levelized Cost of Energy (LCOE) in offshore wind parks

Tove Brink, Svend Ole Madsen, Salla Lutz

Publikation: Bog/rapportRapportFormidling


Executive summary The goal of this research is to reveal how the reduction of LCOE can support lifetime sustainability of offshore wind farms. The research was conducted from June 2014 to May 2015 based on a focus group interview with 11 actors, and this was followed by individual semi-structured interviews with 20 actors in relation to O&M activities. Finally, the main findings were presented at a conference that was held in May 2015; in addition, 5 O&M actors presented their own assessment of the opportunities to reduce LCOE in the conference. The findings in the report reveal several opportunities to reduce LCOE: 1. The Triple Helix concept shows the impact from collaboration between public bodies, private companies and research institutions. There seems to be substantial opportunities for Triple Helix actors to contribute positively to the reduction of LCOE, e.g., in the form of alignment of regulations across countries, standardization of education, training and support for the alignment of rules and procedures and funding of research and educational activities. In short, the Triple Helix Approach needs to be united – not fragmented as it is now 2. Governance is revealed to be underdeveloped with regard to the alignment of economic incentives, agency interests and organizational trust. To some degree, this implies ‘open-book-calculations’ to encourage transparency between partners. In short, governance needs to be strong - not weak as it is now. 3. Strategic innovation plays an essential role in the reduction of LCOE; several joint approaches to the development of the wind park should be introduced. This means focusing on several activities. In short, strategic innovation needs to be open, with a focus on the whole ecosystem of business development - not closed as it is now and with a focus on individual and fragmented initiatives on business development. a. Utilization of experience with O&M activities to improve construction, installation and O&M tasks. b. Development of preventive and remote solutions. c. Flexible standards on successful aspects of solutions. d. Qualified and shared IT-systems to manage documents. e. Integration of maritime approaches. 4. The essential issue of utilizing networks in the wind park industry is to overcome the present self-centred approach, which means being open and prepared to create joint business models with partners in addition to creating a joint culture for collaboration within the ecosystem as well as with outside partners. In short, networks require collaboration - not “islands”. 5. Organisational knowledge sharing forms the basis for knowledge creation by the accumulation of concrete experience. This often leads to new concepts, which are then implemented to improve performance and reduce LCOE. In short, organisational knowledge needs to be united - not separated, as is the case now. 6. The wind park industry has specific requirements for the attractiveness of collaboration partners, which entail economic robustness, meeting the values of consumers, flexibility of operations, pro-activeness, etc. These requirements do not necessarily need to coincide, but several of them typically must be present. In short, the attractiveness of partners needs to be acknowledged - not neglected as it is at present. 7. Capabilities in project program management are important too. A specific emphasis on people and experience is needed due to the complex nature of the management of the project. In short, project management for the program needs to be perceived as a coherent system - not as a single project as it is now. 8. Consolidation includes different ways to approach and coordinate similar activities, different activities, and geographical proximity and data utilization. However, consolidation can also lead to ‘exclusion-of-others’ and might result in higher prices and a narrower strategic innovation focus. In short, consolidation needs to be based on opportunities - not on uncertainty as is the case now. The opportunities to reduce LCOE are considerable and seem absolutely possible if the actors in the wind park industry change and pursue these opportunities. Reduction of LCOE can in the short term mean less business revenue from a specific O&M task, as time and resources for work on the wind park is reduced. However, in the long run, the reduction of LCOE increases the number of work-related tasks due to the improved competiveness of offshore wind parks in relation to traditional energy sources and other renewable energy sources. The opportunities for increased business revenue are thus multiplied by these future tasks, which then contribute to the reduction of LCOE in the industry. Further research is needed on the opportunities mentioned for reduction LCOE
UdgivelsesstedDanish Wind Industry Association
Antal sider99
StatusUdgivet - 11. nov. 2015


  • Strategic Innovation
  • Levelised cost of energy (LCOE)
  • Offshore Wind Energy
  • Operation and maintenance
  • Triple helix
  • Governance
  • networks
  • Organisational knowledge
  • Attractiveness
  • Project program management
  • consolidation
  • Open innovation
  • Ecosystem
  • Platform Technologies
  • Business development
  • Blue SDU seminar

    Tove Brink (Deltager)

    9. jan. 201710. jan. 2017

    Aktivitet: Deltagelse i faglig begivenhedOrganisering af eller deltagelse i workshop, kursus, seminar eller lignende