To reduce the costs of wind energy generated by offshore wind parks, there needs to be a greater degree of ‘certainty’ in the offshore wind industry. What I mean by this is a commitment to contracts and agreements that allow the necessary investments throughout the supply chain.
A lack of certainty makes it difficult to reach the cost reduction goals that everyone in the industry is looking for.
When offshore wind projects are delayed or postponed due to either technical or political issues, it creates instability in the industry, which is likely to have negative effect in the long term.
If we are to improve certainty, which should have a long-term benefit for the energy industry as a whole, there are a number of factors to consider that will create closer cooperation in the industry. One of those is the contractual arrangements between wind farm owners and suppliers.
Instead of penalties, which are today quite commonplace in the industry, incentives may be more beneficial. These incentives could be based on KPIs, for example, to create better working conditions and align the needs throughout the supply chain.
We have seen in other industries that stronger and more open cooperation between various parties can reduce costs. This could be encouraged in the form of alliances, which could be informal alliances early in the supply chain or a fully incorporated structure.
I believe that looking for ways to increase certainty is in the interests of the industry as a whole.
What measures do you think can or should be put in place to make it happen?