Opportunities for value creation by standardization in the North Sea offshore wind market

This JIP is at the point of starting its first phase and is looking for more industry partners to join.

Challenge

The wind industry has been experiencing rapid technological advancements over the past 10-15 years. These developments are driven by competitive, macro-economic, and regulatory factors, often referred to as the "arms race" in the wind industry. This fierce competition aims to bring larger turbines to market with seemingly lower Levelised Cost of Energy (LCoE), even before the innovation costs of previous platform versions and installation ships have been recouped.

The rationale for upscaling wind turbines has been straightforward. From a developer and owner's perspective, fewer larger wind turbines mean fewer cable connections, reduced installation, operation, and maintenance activities, and diminished wake effects between turbines within a farm. The trade-off is that each wind turbine becomes more expensive and necessitates larger vessels with greater capacity and taller cranes for installation and maintenance.

So far, this trend has consistently reduced the LCoE. However, as the cost benefits of increasing turbine size begin to plateau, exploring alternative strategies may prove more impactful.

The rapid pace of wind turbine development has not allowed sufficient time to enhance products and equipment, thereby obstructing the full potential of standardization and industrialization - processes that hold significant promise for further reducing costs and improving quality.

Given the need for cost reduction in wind energy, if turbine upscaling can no longer drive it, where would these cost savings come from? Here are some ideas:

• Evolution rather than revolution: Evolve and refine existing designs, tools, and methods
• Commitment to standardization: Limit wind turbine component sizes and masses, and other aspects of wind farm design, for a reasonable number of years to allow the supply chain to industrialize at all levels, including vessels, ports, cranes, etc.
• Industrialization: Increase production volume and automate processes to enhance quality and reliability
• Improved quality and reliability: Improved performance and decrease risk premiums from investors and insurers.

Objective

Evaluate the value of a periodical North Sea Offshore Wind Standard that establishes several key constraints for the current supply chain such as:

• Maximum wind turbine power rating: 15 MW
• Maximum hub height: 170 m
• Maximum spudcan to hook height: 270 m
• Maximum rotor and nacelle component lifting mass: 1500 mt
• Maximum monopile mass and diameter: 2500 mt, 11 m
• Maximum quay bearing capacity and port channel depth: 30 mt/m², 12 m.

Periodically fixing the above key constraints, for example for the next 5, 10 or 15 years, is a strategy to slow or pause the pace of turbine size upscaling, enable industrialisation, and bring build quality, confidence, profitability, and robustness back into the North Sea wind supply chain.

In this first phase of the Joint Industry Project (JIP), numerical analysis will be conducted wherever possible to assess the impact of standardization and industrialization, utilizing DNV's expertise in offshore wind engineering and cost modelling, along with feedback and data from JIP partners. Benefits will be evaluated on their impact on North Sea average LCoE and installation rates. Environmental impact aspects will also be considered where feasible.

The impact of standardizing wind farm sizes will be investigated for differing capacities of 500 MW, 750 MW, 1 GW, 1.5 GW, and 2 GW. The benefit of different lengths of standardization period will also be assessed. Future phases of this JIP may model further aspects of standardization.

Deliverables

The JIP process and results will be captured in documentation that can be used by JIP partners at different levels of internal discussions, from detailed engineering to board-level discussions. Additional summary documentation will be generated that can be shared externally to guide discussion with the broader industry and its stakeholders.

Industry participation

DNV has initiated this JIP by a steering group of established, credible industry representatives from the European offshore wind value chain: including representation from wind turbine manufacturers, developers, vessel and installation suppliers, foundation suppliers, and marshalling port authorities.

The following companies are currently in discussions with DNV regarding participation in the Joint Industry Project, pending confirmation:

• Fred Olsen Windcarrier ASA
• Groningen Seaports N.V.
• Jan de Nul N.V.
• RWE Offshore Wind GmbH
• Sif Netherlands B.V.
• Smulders Group N.V.
• Van Oord Offshore Wind B.V.
• Vestas Wind Systems A/S

The JIP is now open for broader participation, facilitating the co-sharing of budget costs and providing a seat in the steering committee. If you are a key player in the offshore wind supply chain and interested in joining this JIP, please get in contact with DNV.