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Offshore Wind Energy Installation and Decommissioning Cost Estimation in the U.S. Outer Continental Shelf.

PB2011103554

Publication Date	2010
Personal Author	Kaiser, M. J.; Snyder, B.
Page Count	253
Abstract	Offshore wind power shows promise as a means of carbon neutral electrical generation. In the U.S., offshore wind is expected to commence development between 2015-2020 and will occur primarily in federal waters administered by the Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE). In order to protect the public interest, BOEMRE is required to ensure that adequate financial assurance exists for wind farm decommissioning in the case the operator defaults or is unable to perform according to the terms of the lease instrument. Consequently, BOEMRE requires information on the expected costs of offshore wind decommissioning. In this report we develop estimates of offshore wind installation and decommissioning costs using a bottom-up engineering based approach and compare with total capital cost and installation cost estimates generated through a reference class approach. We find that installation costs are typically 5 to 15% of overall capital costs and that decommissioning costs are roughly half of installation costs, or roughly 100,000 to 160,000 $/MW. Decommissioning costs and financial assurance depends on the methods developed for decommissioning and regulations concerning the circumstances under which components may be left in place.
Keywords	Offshore sites Wind energy Installation Decommissioning Cost estimates Components Development stages Project characteristics Strategies Options Requirements Modelling Figures Tables (Data) Wind power generation Wind turbines Outer Continental Shelf Bottom-up engineering based approachs
Source Agency	Minerals Management Service
Corporate Authors	Energy Research Group, LLC, Baton Rouge, LA.; Minerals Management Service, Herndon, VA.
Supplemental Notes	Sponsored by Minerals Management Service, Herndon, VA.
Document Type	Technical Report
NTIS Issue Number	201108
Contract Number	MMS-M10PC00065

Offshore Wind Energy Installation and Decommissioning Cost Estimation in the U.S. Outer Continental Shelf.

Offshore Wind Energy Installation and Decommissioning Cost Estimation in the U.S. Outer Continental Shelf.
PB2011103554

Publication Date	2010
Personal Author	Kaiser, M. J.; Snyder, B.
Page Count	253
Abstract	Offshore wind power shows promise as a means of carbon neutral electrical generation. In the U.S., offshore wind is expected to commence development between 2015-2020 and will occur primarily in federal waters administered by the Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE). In order to protect the public interest, BOEMRE is required to ensure that adequate financial assurance exists for wind farm decommissioning in the case the operator defaults or is unable to perform according to the terms of the lease instrument. Consequently, BOEMRE requires information on the expected costs of offshore wind decommissioning. In this report we develop estimates of offshore wind installation and decommissioning costs using a bottom-up engineering based approach and compare with total capital cost and installation cost estimates generated through a reference class approach. We find that installation costs are typically 5 to 15% of overall capital costs and that decommissioning costs are roughly half of installation costs, or roughly 100,000 to 160,000 $/MW. Decommissioning costs and financial assurance depends on the methods developed for decommissioning and regulations concerning the circumstances under which components may be left in place.
Keywords	Offshore sites Wind energy Installation Decommissioning Cost estimates Components Development stages Project characteristics Strategies Options Requirements Modelling Figures Tables (Data) Wind power generation Wind turbines Outer Continental Shelf Bottom-up engineering based approachs
Source Agency	Minerals Management Service
Corporate Authors	Energy Research Group, LLC, Baton Rouge, LA.; Minerals Management Service, Herndon, VA.
Supplemental Notes	Sponsored by Minerals Management Service, Herndon, VA.
Document Type	Technical Report
NTIS Issue Number	201108
Contract Number	MMS-M10PC00065