of offshore wind power compared to other sources in Germany in 2018 The advantage of locating wind turbines offshore is that the wind is much stronger off the coasts, and unlike wind over land, offshore breezes can be strong in the afternoon, matching the time when people are using the most electricity. Offshore turbines can also be located close to the load centers along the coasts, such as large cities, eliminating the need for new long-distance transmission lines. However, there are several disadvantages of offshore installations, related to more expensive installation, difficulty of access, and harsher conditions for the units. Locating wind turbines offshore exposes the units to high humidity, salt water and salt water spray which negatively affect service life, cause corrosion and oxidation, increase maintenance and repair costs and in general make every aspect of installation and operation much more difficult, time-consuming, more dangerous and far more expensive than sites on land. The humidity and temperature is controlled by
air conditioning the sealed nacelle. Sustained high-speed operation and generation also increases wear, maintenance and repair requirements proportionally. The cost of the turbine represents just one third to one half of total costs in offshore projects today, the rest comes from infrastructure, maintenance, and oversight. Costs for foundations, installation, electrical connections and operation and maintenance (O&M) are a large share of the total for offshore installations compared to onshore wind farms. The cost of installation and electrical connection also increases rapidly with distance from shore and water depth. Other limitations of offshore wind power are related to the still limited number of installations. The offshore wind industry is not yet fully industrialized, as supply bottlenecks still exist as of 2017.
Investment costs Offshore wind farms tend to have larger turbines when compared to onshore installations, and the trend is towards a continued increase in size. Economics of offshore wind farms tend to favor larger turbines, as installation and grid connection costs decrease per unit energy produced. Researchers at the
National Renewable Energy Laboratory (NREL) forecast a reduction in offshore wind energy costs by 2035. They estimate that the levelized cost for fixed-bottom offshore wind will decrease from $75 per megawatt-hour (MWh) in 2021 to $53/MWh in 2035, and for
floating offshore wind, from $207/MWh to $64/MWh. These cost estimates are based on projections that anticipate a ninefold increase in global offshore wind energy deployment, supported by advancements in infrastructure such as supply chains, ports, and transmission systems.
Operating costs Operational expenditures for wind farms are split between Maintenance (38%), Port Activities (31%), Operation (15%), License Fees (12%), and Miscellaneous Costs (4%). Operation and maintenance costs typically represent 53% of operational expenditures, and 25% - 30% of the total lifecycle costs for offshore wind farms. O&Ms are considered one of the major barriers for further development of this resource. Maintenance of offshore wind farms is much more expensive than for onshore installations. For example, a single technician in a pickup truck can quickly, easily and safely access turbines on land in almost any weather conditions, exit his or her vehicle and simply walk over to and into the turbine tower to gain access to the entire unit within minutes of arriving onsite. Similar access to offshore turbines involves driving to a dock or pier, loading necessary tools and supplies into boat, a voyage to the wind turbine(s), securing the boat to the turbine structure, transferring tools and supplies to and from boat to turbine and turbine to boat and performing the rest of the steps in reverse order. In addition to standard safety gear such as a hardhat, gloves and safety glasses, an offshore turbine technician may be required to wear a life vest, waterproof or water-resistant clothing and perhaps even a survival suit if working, sea and atmospheric conditions make rapid rescue in case of a fall into the water unlikely or impossible. Typically at least two technicians skilled and trained in operating and handling large power boats at sea are required for tasks that one technician with a driver's license can perform on land in a fraction of the time at a fraction of the cost.
Cost of energy Cost for installed offshore turbines fell 30% to $78/MWh in 2019, a more rapid drop than other types of renewable energy. Offshore wind power market plays an important role in achieving the renewable target in most of the countries around the world. Auctions in 2016 for future projects have reached costs of €54.5 per
megawatt hour (MWh) at the 700
MW Borssele 3&4 due to government tender and size, and €49.90 per MWh (without transmission) at the 600 MW
Kriegers Flak. In September 2017 contracts were awarded in the
United Kingdom for a
strike price of £57.50 per MWh making the price cheaper than nuclear and competitive with gas. In September 2018 contracts were awarded for Vineyard Wind, Massachusetts, USA at a cost of between $65-$74 per MWh. ==Offshore wind resources==