With the announcement of the latest Contracts for Difference Allocation Round 3 results to offshore wind projects, we thought it timely to address the emerging trends surrounding this asset class.

#1 Global Push

The global push for reduction of greenhouse gases and increase in renewable energy is causing the offshore wind industry to evolve from what was a largely European industry into a global one.

#2 Transfer of capabilities across organisations

This, more global industry, requires transfer of capabilities across organisations, which often happens through Joint Ventures agreed for the development of projects.

#3 Reduction in costs

As technology and the industry become more mature, the cost of projects is going down with strike prices in the UK at record low.

#4 Projects moving further offshore

Projects are starting to move further offshore and at an increasing depth, creating current technology challenges which need to be overcome (e.g. foundation types, installation methods).

#5 Increase in competition

Global growth is causing increased competition around the supply chain.

To find out more regarding our point of view on Offshore Windfarms please see the following publication Offshore Wind Capital Projects.

Alexandros Tsarouchis – Assistant Director, Deloitte Real Estate

Alex is a member of the Real Estate Consulting team. An engineer by background, Alex has worked on a variety of projects, across a range of industries, for both public and private sector clients. Prior to joining Deloitte, Alex worked for a contractor (Kier), a utility (RWE) and another major consultancy (KPMG), providing him with a breadth of experience across different sectors and across different client types. Alex’s area of expertise is the wider energy and construction sector and he spent over 2 years working for a contractor, over 5 years managing the development of an offshore wind farm and he has led and been involved in a number of energy and construction related assignments as a consultant.

Email | LinkedIn