A Review of the Economics of Offshore Wind Farms

Abstract

This paper describes the economics of offshore wind energy in the transition from prototype offshore wind farms, developed and installed during the 1990's, to the commercial wind farms that are currently being installed. Since 1990, 96 MW of offshore wind have been installed in Europe and the costs of electricity produced have fallen from almost twice that at equivalent land sites to the point where the best offshore wind farms compete with moderate onshore locations. We summarise the transition to increasing economic viability and document some factors that may influence the feasibility of offshore developments in the future.