Floating wind farms: project economics and operation

New design concepts and the technical feasibility of floating wind farms are not the only factors determining the technology’s commercial success. Economic viability and the ability to operate a wind farm efficiently so that it produces and supplies enough electricity throughout its lifetime are also crucial. This article follows on from the previous article on the technical solutions for floating wind farms and outlines the main challenges facing project economics and the technology’s route to market.

Floating wind technology is still at an early stage of development, so most projects are a long way from commercial operation. New designs, the development of larger wind farms and the introduction of mass production of floating platforms are expected to lead to a significant reduction in costs. These are, however, long-term forecasts that are highly unlikely to start materialising before 2030.

A brief picture of the current economics can be gained by comparing floating wind farms with those fixed to the seabed. The latter are already an established technology, and installed capacity has grown rapidly worldwide in recent years. As with conventional projects, the turbine itself and its supporting structure account for the largest share of costs for floating wind farms. Together, these make up more than 60% of capital costs for both types. Floating wind farms, however, also require an additional cost item to be included: the cost of anchoring them to the seabed.