Offshore Wind Energy Cost Modeling Installation and Decommissioning

Offshore wind energy is one of the most promising and fastest growing alternative energy sources in the world. Offshore Wind Energy Cost Modeling provides a methodological framework to assess installation and decommissioning costs, and using examples from

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For further volumes: http://www.springer.com/series/8059

Mark J. Kaiser Brian F. Snyder •

Offshore Wind Energy Cost Modeling Installation and Decommissioning

123

Mark J. Kaiser Center for Energy Studies Louisiana State University Energy, Coast and Environment Building Baton Rouge, LA 70803 USA

ISSN 1865-3529 ISBN 978-1-4471-2487-0 DOI 10.1007/978-1-4471-2488-7

Brian F. Snyder Center for Energy Studies Louisiana State University Energy, Coast and Environment Building Baton Rouge, LA 70803 USA

e-ISSN 1865-3537 e-ISBN 978-1-4471-2488-7

Springer London Heidelberg New York Dordrecht British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Control Number: 2011944771 Ó Springer-Verlag London 2012 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms of licenses issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers. The use of registered names, trademarks, etc., in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant laws and regulations and therefore free for general use. The publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions that may be made. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Preface

In Northern Europe, a significant fraction of wind power growth in the past decade has occurred offshore where winds are typically stronger and more constant; by contrast, in the U.S. there are currently no offshore wind farms operational or under construction. The slow progress in offshore wind development in the U.S. has been attributed to several factors including challenging economics, less government involvement, environmental concerns, lack of public acceptance, poorly capitalized development companies, and the lack of a regulatory system for leasing. By late 2011, the Bureau of Ocean Energy Management, Regulation and Enforcement had created a regulatory system for offshore wind development, several developers had signed power purchase agreements and formed partnerships with larger companies to facilitate financing, and public resistance had subsided in many areas. Construction of several offshore wind farms is expected within the next decade. The purpose of this book is to develop models of two related costs experienced by offshore wind developers: installation costs and decommissioning costs. Installation costs are the second largest component of capital e