Crown Estate Scotland has today published a new report, covering long-term lifespan and financing options for offshore wind assets. Scotland currently has 1.9GW of offshore wind capacity in operation, the oldest of which will reach the point of decommissioning or life-extension before 2030.
Commissioned from OWC consultants in 2022, this report aims to:
- Aid the understanding of the options available to offshore wind developers and the potential revenues they can access as their assets come towards the end of their operational life;
- Identify the relevant financing mechanisms available to support low carbon generation; and
- Assess the feasibility of these mechanisms in financing end-of-life scenarios for offshore wind farms including decommissioning, life extension, and repowering.
Highlights from the report include:
- Financial modelling which suggests that scenarios ranging from decommissioning to full repowering of those assets will offer broadly similar returns
- The recommendation that a strong case should be made for offshore projects to be granted access to the Contracts for Difference (CfD) mechanism for repowering investments
- Recognition of the importance of creating a circular economy for components, to enable ongoing operation for assets