O&M companies operating in Europe can expect off-warranty revenue to increase by up to ten times by 2025 as the offshore wind industry matures and turbines exit their warranty periods, according to the latest research note by market analysts MAKE.
The industry is looking increasingly into new strategies to optimize O&M practices in order to reduce the levelized cost of electricity (LCOE). This is particularly true in Europe, where 90% of the world’s offshore wind fleet is currently located, according to the note.
The note, titled ”Offshore Wind O&M Market Dynamics in Europe,” offers an insight into projected offshore O&M dynamics and trends in the next decade.
MAKE argues that asset owners’ O&M decisions are based on the project-specific business case; however, strategic patterns are becoming visible and will affect future service provider segmentation.
One of the expected trends is that utilities will start increasingly pursuing self-perform O&M strategies to cut costs.
Another estimate is that LCOE for power generated offshore will go down by 12% by 2025, as the costs of unscheduled maintenance and related offshore logistics are expected to be reduced.
Source: MAKE