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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
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