Offshore wind farms were meant to be a pillar of future energy. Recent developments suggest otherwise

Wind power projects around the world are reporting problems. One of the latest examples is an auction in the United Kingdom, which received no bids. An auction in the Gulf of Mexico also ended unsuccessfully, with only one of the three planned sites awarded. Experts are also beginning to doubt whether the United States will meet its target for building offshore wind farms. The blame lies with higher construction costs, driven by both increased material costs and higher financing costs. 

A number of coastal countries with suitable conditions for their construction rely on electricity generation from offshore wind farms. Although their construction costs are more than twice those of onshore wind farms when comparing their levelised cost of energy (LCOE, see below), they offer a number of indisputable advantages.

For example, offshore wind farms have higher capacity factors. According to WindEurope statistics, new offshore wind farms can reach up to 50%. This is one reason why many countries with favourable conditions are betting on them in the future. Developers also do not have to deal with opposition from residents near construction sites, as is often the case with onshore wind farms.