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Though there are exceptions, most cost over-runs are less than 5% of pro forma build. More importantly, since the industry is so mature, contracts tend to stipulate costs.

The biggest problem with onshore was not cost over-runs, but production over-estimation. No longer a problem in mature markets because the wind is so well known, it can still be a ringer in emerging markets. Earlier it could be as much as 20% low, averaging 10%. Now, close to spot on.

Offshore is too young not to have cost over-runs, but that too is changing.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Wed Aug 17th, 2011 at 01:57:01 PM EST
[ Parent ]
thanks CH. this should be touted more, methinks.

dealing with people of business acumen, though of course financially motivated, also have future generations' well-being under consideration, is also more likely to be managed by people whose word the people can trust.

pushing the nuke industries' mendaciousness hasn't worked that well... maybe it's time to accentuate the positive!

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Wed Aug 17th, 2011 at 04:33:06 PM EST
[ Parent ]

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