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offshore wind farms are billion euro investments (or a large fraction thereof). So it's mostly the big investors of the sector that do them. And they pay for the full investment on their balance sheets.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Sat Jul 25th, 2009 at 11:59:08 AM EST
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How important is economies of scale in offshore (and onshore) wind?

Are the savings big when you build 100 turbines at a site compared to 10 or 1? Or are the savings marginal, and the reason that the big utilities build big wind farms just because they are used to working with big projects and that's where their competencies lay (like when big oil leaves small fields to be developed by independens)?

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Sat Jul 25th, 2009 at 01:54:20 PM EST
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matter more offshore because some of the fixed costs are rather high. In particular, the cable and the offshore transformer station can cost several tens of millions of euros, which requires more than a few MW of capacity to bear if you want any kind of profitability. You also need specialized vessels and cranes for installation and then maintenance, so scale does matter, at least up to a certain point (which mostly depends on location and can vary depending on the regulatory framework - who pays for the cable, whether your permit gives you rights to a given area, to a number of turbines or to a given capacity)

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Sat Jul 25th, 2009 at 02:29:15 PM EST
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... Big Orange ... the "big investors" are the utilities themselves.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Sun Jul 26th, 2009 at 06:16:36 PM EST
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