Rising interest rates are the policy objective to reducing inflation which should be good for wind power, however this is causing a snafu in the funding market for wind farm projects.
For a comparison of on vs offshore it could make sense to normalize the costs by the capacity factor. 56% are already great numbers for renewables.
Regarding the infrastructure costs, a changing energy system needs an adjusted grid. For the fossil power plants we already have that grid, but we needed to build it as well in the first place, which was of course as well linked to costs. So blaming renewables for needing infrastructure investment is a bit short sighted in my opinion.
And yes, 54% capacity factor for Hywind Scotland is exceptional which is a reason I point it out. Onshore wind from my understanding is usually in the 30 range. I like the idea of offshore wind if costs can be economical.
True, the technology is separate from the infrastructure. My goal was to point out there are additional costs to keep in mind to reach the proposed targets at the end of the day. New funding of infrastructure in addition to the projects themselves just add more potential bottlenecks/issues on the path to the target. For example, what if a new steel or vessel plant has similar funding issues. At the very least they might be slower to green light an investment in the current economic environment.
I guess you mean 45$/MWh, no?
For a comparison of on vs offshore it could make sense to normalize the costs by the capacity factor. 56% are already great numbers for renewables.
Regarding the infrastructure costs, a changing energy system needs an adjusted grid. For the fossil power plants we already have that grid, but we needed to build it as well in the first place, which was of course as well linked to costs. So blaming renewables for needing infrastructure investment is a bit short sighted in my opinion.
Great piece again 👍
Yes, thanks for the correction. Looks like current offshore wind prices are ~$85/MWh - https://www.energy.gov/eere/wind/articles/offshore-wind-market-report-2022-edition
And yes, 54% capacity factor for Hywind Scotland is exceptional which is a reason I point it out. Onshore wind from my understanding is usually in the 30 range. I like the idea of offshore wind if costs can be economical.
True, the technology is separate from the infrastructure. My goal was to point out there are additional costs to keep in mind to reach the proposed targets at the end of the day. New funding of infrastructure in addition to the projects themselves just add more potential bottlenecks/issues on the path to the target. For example, what if a new steel or vessel plant has similar funding issues. At the very least they might be slower to green light an investment in the current economic environment.
Thanks for the reply! Glad you are enjoying.