Fugro insight: Offshore wind in 2024

Operations and maintenance rising up the offshore agenda

“Offshore wind is still a relatively young industry. And while there have been a lot of improvements made as technology and processes have matured, stakeholders continue to learn and improve. In 2024, it is expected that wind farm operators will intensify their focus on improving uptime, optimising costs and extending overall asset lifespans – and this will require an effective operations and maintenance strategy.

“One of the biggest priorities as part of this could be in simplifying supply chains or engaging with alliances and partnerships of complementary service providers. Looking ahead, developers and operators are advised to carry out a more comprehensive review of the tiers of services a supply chain offers – to the supporting services such as geodata acquisition that enable larger activities to be performed, such as turbine or cable maintenance.

As the industry matures, and as operators better understand how the supply chain can help them, they will be able to develop more comprehensive and agile maintenance regimes.

“Ultimately, developers need a reliable and durable asset. To ensure they recoup their capital investment as forecast, they need their assets to keep spinning in a predictable way. The revenue they then generate can be re-invested into future wind farm projects, supporting the long-term growth and viability of this sector. This is – in part – thanks to effective O&M regimes.”

A shift from transaction-based to trust-based relationships

“In previous years, developers and operators adopted a prescriptive approach with their supply chains, imposing stringent standards and specifications to establish a safe, efficient and professional environment. This not only covered essential aspects like safety and environmental compliance, but extended to equipment specifications and workforce qualifications.

“Looking ahead, however, as the industry matures and explores new models for growth, we will likely see stakeholders increasingly recognising the value of mutual knowledge and expertise. In 2024, developers and operators should shift their focus towards desired performance outcomes. This shift will encourage a more collaborative approach, which acknowledges the strengths of all stakeholders whereby the client specifies their need or end result, and the service provider prescribes the methods and resources to achieve it.”

All eyes on reversing the rise in the cost of offshore wind

“Over the past two decades, the offshore wind industry has experienced a remarkable decrease in the levelised cost of energy, helping to drive progress and instil confidence in the feasibility of offshore wind. However, following inflationary pressures and heightened global demand in recent months, we have witnessed a surge in development costs – as high as 40% – which has severely impacted business cases and caused projects to be postponed or even cancelled.

“In the year ahead, the industry needs to mitigate the impact of these pressures and explore how technology can support the continuation of the historical downward cost trajectory. A renewed focus on long-term planning, early engagement and innovation will help to address current inflationary challenges and pave the way for emerging sectors such as floating wind.”