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With widespread delays in scheduled auctions affecting the European offshore wind industry, it is important for developers to meticulously manage the crucial early stages of development to ensure the success of next-generation projects and fulfil the EU 2030 Agenda goals.
Countries like Spain, Portugal, and the Netherlands have already faced delays in their planned offshore wind auctions this year, and few European auctions scheduled for the first half of 2024 are proceeding as planned.
Youwind Renewables, a leading provider of web-based solutions for optimizing early-stage offshore wind development, has warned that authorities are likely to push for shorter timelines in response to these delays. It is expected that the best-prepared development teams will be rewarded, ensuring that the goals of the EU 2030 Agenda remain on track.
With the average bid preparation and submission time around two to three years, the company has emphasized the importance of quickly and early addressing key risks and potential bottlenecks. It has identified five key priorities for developers preparing for upcoming auctions.
Stakeholder Engagement: Developers must first engage with all stakeholders, including health and safety authorities, local communities, and environmental groups, while also accounting for vessel density and fishing activities in the area. By incorporating stakeholder input from the beginning, developers can navigate potential challenges more effectively. This approach helps build stronger partnerships to support project development.
Logistics Planning: Given the significant challenge of vessel availability in the offshore wind sector, meticulous logistics planning is crucial. Maritime market intelligence firm Spinergie warns that the current shortage of heavy installation vessels could mean achieving less than 60% of the potential fivefold increase in operating capacity for fixed-bottom offshore wind projects by 2030. Developers must evaluate various options and anticipate scheduling construction activities outside optimal weather windows to minimize delays and optimize project timelines.
Understanding Wake Effects: Considering wake effects is essential, especially in densely populated wind farm regions such as the Netherlands, Germany, and Belgium. Developers must account for both existing and future wind farms that could impact their operations over their lifespan. Countries like France, Spain, and Portugal need to consider wake effects as well, with collaboration on future wind farm plans near West Galicia and the Porto area already in progress.
Mitigating Cable Losses & Failures: Recognizing the significance of electrical failures on future revenue is crucial. Even a few turbines experiencing cable failures can lead to significant revenue losses. Developers must integrate contingency plans to alleviate the financial impacts of such failures and guarantee project profitability.
Investment in Advanced Modelling: Success in securing projects now heavily relies on investing in advanced modelling capabilities to meet bid deadlines. Enhanced multisource data processing power has become essential for effectively navigating evolving market conditions. Youwind’s robust features have facilitated the success of five auction-winning projects in Europe and APAC over the last three years, showcasing its effectiveness in accelerating project development and improving competitiveness in the industry.
“As the offshore wind sector navigates a complex environment, and pressure increases on bid timelines, it is imperative for developers to proactively tackle known risks and bottlenecks from the early stages onwards – and to invest in the modelling capabilities that will enable them to do so,” commented Anna Rivera, Co-Founder & CEO of Youwind. “Managing some of these critical risks, such as vessel availability, will ultimately make the difference between a project that is successful and one that fails to live up to its potential.”
