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The Role of Logistics in Practical Levelized Cost of Energy Reduction Implementation and Government Sponsored Cost Reduction Studies: Day and Night in Offshore Wind Operations and Maintenance Logistics

Author

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  • Thomas Poulsen

    (Department of Mechanical and Manufacturing Engineering, Aalborg University, A.C. Meyers Vænge 15, 2450 Copenhagen SV, Denmark)

  • Charlotte Bay Hasager

    (Department of Wind Energy, Technical University of Denmark, Risø Campus, Frederiksborgvej 399, 4000 Roskilde, Denmark)

  • Christian Munk Jensen

    (Offshoreenergy.dk, Dokvej 3, 6700 Esbjerg, Denmark)

Abstract

This paper reveals that logistics make up at least 17% of annual operational expenditure costs for offshore wind farms. Annual operational expenditure is found to vary by a factor of 9.5, making its share of levelized cost of energy for offshore wind range from 13% to 57%. These are key findings of a 20-month research project targeting cost reduction initiatives for offshore wind systems. The findings reveal that cost-out measures are difficult to implement due to cultural differences. Implementation efforts are rendered by personnel located offshore in a harsh sea environment which is in stark contrast to the shore-based office personnel who develop studies directing cost reduction efforts. This paper details the company motivation to join industry-wide cost reduction initiatives. A business case for offshore wind operations and maintenance logistics yielding 1% savings in levelized cost of energy is included on how to expand working hours from daytime to also work at night.

Suggested Citation

  • Thomas Poulsen & Charlotte Bay Hasager & Christian Munk Jensen, 2017. "The Role of Logistics in Practical Levelized Cost of Energy Reduction Implementation and Government Sponsored Cost Reduction Studies: Day and Night in Offshore Wind Operations and Maintenance Logistic," Energies, MDPI, vol. 10(4), pages 1-28, April.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:4:p:464-:d:94797
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    Cited by:

    1. Richmond, M. & Sobey, A. & Pandit, R. & Kolios, A., 2020. "Stochastic assessment of aerodynamics within offshore wind farms based on machine-learning," Renewable Energy, Elsevier, vol. 161(C), pages 650-661.
    2. Chul-Yong Lee & Jaekyun Ahn, 2020. "Stochastic Modeling of the Levelized Cost of Electricity for Solar PV," Energies, MDPI, vol. 13(11), pages 1-18, June.
    3. Andrzej Jezierski & Cezary Mańkowski & Rafał Śpiewak, 2021. "Energy Savings Analysis in Logistics of a Wind Farm Repowering Process: A Case Study," Energies, MDPI, vol. 14(17), pages 1-23, September.
    4. Javier Serrano González & Bruno López & Martín Draper, 2021. "Optimal Pitch Angle Strategy for Energy Maximization in Offshore Wind Farms Considering Gaussian Wake Model," Energies, MDPI, vol. 14(4), pages 1-18, February.
    5. Alexandra G. Papadopoulou & George Vasileiou & Alexandros Flamos, 2020. "A Comparison of Dispatchable RES Technoeconomics: Is There a Niche for Concentrated Solar Power?," Energies, MDPI, vol. 13(18), pages 1-22, September.
    6. Orlando Durán & Paulo Sergio Afonso & Paulo Andrés Durán, 2019. "Spare Parts Cost Management for Long-Term Economic Sustainability: Using Fuzzy Activity Based LCC," Sustainability, MDPI, vol. 11(7), pages 1-14, March.
    7. Lerche, J. & Lorentzen, S. & Enevoldsen, P. & Neve, H.H., 2022. "The impact of COVID -19 on offshore wind project productivity – A case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    8. Tazi, Nacef & Safaei, Fatemeh & Hnaien, Faicel, 2022. "Assessment of the levelized cost of energy using a stochastic model," Energy, Elsevier, vol. 238(PB).
    9. Jäger-Roschko, Moritz & Weigell, Jürgen & Jahn, Carlos, 2019. "Modelling of spare parts storage strategies for offshore wind," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Digital Transformation in Maritime and City Logistics: Smart Solutions for Logistics. Proceedings of the Hamburg International Conference of Logistics, volume 28, pages 83-108, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    10. Thomas Poulsen & Charlotte Bay Hasager, 2017. "The (R)evolution of China: Offshore Wind Diffusion," Energies, MDPI, vol. 10(12), pages 1-32, December.
    11. deCastro, M. & Salvador, S. & Gómez-Gesteira, M. & Costoya, X. & Carvalho, D. & Sanz-Larruga, F.J. & Gimeno, L., 2019. "Europe, China and the United States: Three different approaches to the development of offshore wind energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 55-70.

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