Even though offshore wind projects are now constructed faster and safer than ever before, the industry as a whole is still perceived as “high risk” by the majority of external investors.
The main reason for this remains the high cost of energy production coupled with the limited financial stability of some contractors. In most cases, utilities/IPPs have to choose between working with one (usually large and financially stable) or numerous (smaller and with a reduced balance sheet) contractors.
A single contractor is prone to have higher initial cost but lower potential risk later on. In fact significantly lower due to the ability of a larger contractor to foresee and rectify any construction problems. Multiple contractors often retain a higher level of specialised knowledge whilst be more willing to negotiate to partnership that benefits both sides as entrance to the market is currently an obstacle. Additional factors that go into the choice include project specifics, lending ability, weather conditions and experience. This is not a decision that is taken lightly.
Wind Energy Update will address these key industry challenges and identify possible action steps. Many senior industry decision makers will gather in London this March at their 3rd annual supply chain meeting. The developer supply chain forum is the where companies including Dong Energy, Vattenfall, C-Power, NorthWind, RWE and many more will exchange their knowledge and experience on supply chain management for the benefit of all attendees. This exclusive two day event has been specifically designed to provide technical, project, procurement and planning managers from all EU utilities/IPPs with the tools and directions they need to avoid bad contracts in 2013 and beyond.
[mappress]
Press release, February 19, 2013; Image: alpha ventus