Engineering topics

Beiter, Philipp

Publications and source records attributed to Beiter, Philipp.

At least 19 records

DOE OSTI2024

Offshore Wind Market Report: 2024 Edition

The Offshore Wind Market Report: 2024 Edition provides detailed information on the U.S. and global offshore wind energy industries to inform policymakers, researchers, and analysts about technology, economic, and market trends. The report provides the status of more than 322 operating offshore wind energy projects in the global fleet through Dec. 31, 2023, as well as the broader global pipeline of projects in various development stages. To provide current information and discussion on the emerging offshore wind industry in the United States, this report tracks significant U.S. domestic progress and events from Jan. 1, 2023, to May 31, 2024.

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DOE OSTI2024

Offshore Wind Market Report: 2024 Edition Executive Summary

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DOE OSTI2024

Offshore Wind Market Report: 2024 Edition

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DOE OSTI2024

The Cost of Offshore Wind Energy in the United States From 2025 to 2050

This study presents estimates of the levelized cost of energy (LCOE) of offshore wind energy throughout major U.S. coastal regions between a time frame of 2025 - 2050. The LCOE modeling accounts for impacts of supply chain shocks, inflation, and rising interest rates on cost. Given the near-term uncertainty in these factors, we present three possible scenarios driven by how uncertainty in costs, technology, and deployment may evolve over time. The cost increases reported by industry in recent years will likely be felt over next several years, but we expect long-term cost reductions enabled by growing offshore wind deployment and industry learning. This study helps inform decision-makers about the potential role that offshore wind energy can play in future clean energy strategies.

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DOE OSTI2023

Assessment of Offshore Wind Energy Opportunities and Challenges in the U.S. Gulf of Mexico

This report identifies and discusses opportunities and challenges for offshore wind energy development in the Gulf of Mexico (GOM). The results indicate that offshore wind energy has the potential to be a viable clean energy option to help the region meet the U.S. goals to achieve carbon neutrality by 2050. Many technical challenges are discussed but most can be resolved with engineering solutions that are available to the industry.

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DOE OSTI2023

The enduring role of contracts for difference in risk management and market creation for renewables

Governments procure renewables through a variety of mechanisms. Contracts for difference (CfDs) have been used for more than 50% of the global offshore wind supply. The payments awarded through CfDs are sometimes labelled subsidies, suggesting that they support uneconomic activity. Here, in this study, we argue that the primary role of CfDs is rather risk management by creating a market for electricity supply at stable long-term prices. Similar to its use in other sectors of the economy, this contract type transforms a variable to a fixed price to reallocate volatility risks. Such long-term contracts are often necessary for renewables financing due to limited hedging options in existing markets. Our perspective could imply a shift in perception towards CfDs as a fundamental and lasting market feature. We hope to stimulate a timely discussion about the impact of greater CfD diffusion on electricity market mechanisms, risk allocation and the potential for combining fragmented streams of energy finance, market and policy research.

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DOE OSTI2023

Five grand challenges of offshore wind financing in the United States

Offshore wind energy has the potential to play a critical role in fostering a renewable energy transformation in the United States. This owes to its massive technical potential, strategic location near densely populated coastlines, and - relative to onshore wind and solar - high capacity factors and consistent production. The Biden Administration's target to build 30 GW of offshore wind capacity by 2030 (from 0.04 GW today) requires the creation and swift development of a new industry that interlinks the wind and power industries with the maritime sector. Critical to its success is financing. While financial capital is abundant, deploying it for offshore wind faces major challenges. We identify and describe five grand challenges affecting offshore wind finance in the U.S. Failing to address these challenges may put deployment targets at risk. The challenges include (1) Early years financing: navigating the complexities, timing mismatches, and high costs of projects in the development phase; (2) Policy support for project financial solvency: addressing the uncertainty and systematic transfers of tax credits away from offshore wind, characteristic of the U.S. Investment Tax Credit; (3) Workforce development: building a skilled workforce for an emerging market; (4) Transmission and integration barriers: upgrading the power grid to reliably support large scale offshore wind integration; and (5) Floating wind development: financing the development and scale-up of floating offshore wind technologies. The second challenge has already been solved to a large extent by the Inflation Reduction Act.

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DOE OSTI2023

Expanded modelling scenarios to understand the role of offshore wind in decarbonizing the United States

An assessment of decarbonization pathways in energy models reveals fundamental limitations in representing factors that are relevant for practical decision-making. Although these modelling limitations are widely acknowledged, their impact on the deployment of individual power generation types is not well understood. As a result, the societal value from such generation types could be vastly misrepresented. Here we explore a wide spectrum of factors that impact offshore wind deployment in the United States using a detailed capacity expansion model. Many factors prescribe a large future role for offshore wind, yet this diverges from what models often show. We extend the typically narrow modelling context through high spatial resolution, several cost and transmission possibilities and various energy-sector policies. Further, we estimate offshore wind to constitute 1-8% (31-256 gigawatts) of total US generation by 2050. This wide range suggests an uncertain but potentially important regional role. Our expansive scenarios demonstrate how to address many limitations of decarbonization modelling.

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DOE OSTI2023

Offshore Wind Market Report: 2023 Edition [Slides]

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DOE OSTI2023

Offshore Wind Market Report: 2023 Edition

The Offshore Wind Market Report: 2023 Edition provides detailed information on the U.S. and global offshore wind energy industries to inform policymakers, researchers, and analysts about technology, economic, and market trends. The scope of the report covers the status of over 293 global operating offshore wind energy projects as well as the broader global pipeline of projects in various stages of development through December 31, 2022. To provide up-to-date information and discussion on this emerging industry in the United States, this report tracks the significant U.S. domestic industry progress and events from January 1, 2022, through May 31, 2023. The U.S. offshore wind energy project development pipeline has reached a potential generating capacity of over 52 gigawatts, and the industry has seen strong support from state and federal governments (such as from the Inflation Reduction Act of 2022 and the announced Floating Offshore Wind Shot to reduce the cost of floating wind by 70%). There are contracts for over 17 gigawatts of the electricity from these offshore wind projects and state policies are in place to procure over 42 gigawatts by 2040. Although some projects are facing economic headwinds due to rising costs and higher interest rates (corresponding to project cost increases of 11% - 30% in 2022), there has still been significant investment in a domestic supply chain (including manufacturing facilities, new vessels, and upgraded or planned ports). Technologies continue to evolve as offshore wind turbines in the 15-megawatt class advance towards commercial production. Key offshore wind energy market indicators, such as commercial leasing, state energy planning targets, procurement policies, offtake agreements, and federal support for U.S. jobs and supply chain development, point toward sustained market growth when viewed together, but the macroeconomic hurdles facing the first generation of commercial projects could significantly stunt that growth.

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DOE OSTI2023

Deployment Implications of Reaching the DOE Floating Offshore Wind Shot Goal: A Summary of Initial Results and Methods [Slides]

The Floating Offshore Wind Shot is an initiative to help usher in a clean energy future by driving U.S. leadership in floating offshore wind design, development, and manufacturing. Here, we document impact of attaining the Shot cost goal of $45/megawatt-hour by 2035, a reduction of 70% from today's cost levels. We find deployment of 90-120 gigawatt of floating offshore wind by 2050.

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DOE OSTI2022

A Systematic Framework for Projecting the Future Cost of Offshore Wind Energy

Offshore wind costs are expected to decline rapidly in the short and medium term future as the industry grows and gains experience in manufacturing, installing, and operating commercial scale projects. Estimating the future costs of offshore wind energy is critical for evaluating the technology's economic performance, how it can fit into a broader clean energy economy, and how R&D investment can be allocated to advance the technology. We present a newly developed approach for forecasting these costs which focuses on an empirically-derived learning rate for capital costs and prescribed cost and performance improvements for operational costs and capacity factor. We establish baseline costs for a series of reference fixed-bottom and floating projects in 2021 and project cost trajectories to 2035, presenting both an average cost trajectory as well as describing the range of potential future costs associated with site-specific cost variations and uncertainty in the estimate of the learning rate. We also conduct sensitivity analyses showing the impact of different global deployments by 2035 and variations in the prescribed operational costs and capacity factors. The results show that fixed-bottom and floating offshore wind capital costs could decrease to around $\$$2,400/kW and $\$$3,300/kW by 2035, respectively, with ranges of $\$$2,100/kW - $\$$2,750/kW for fixed-bottom projects and $\$$2,850/kW - $\$$5,500/kW for floating projects. The levelized cost of energy of fixed-bottom and floating wind projects could decrease to $\$$53.1/MWh and $\$$63.9/MWh by 2035, with ranges of $\$$48.4/MWh - $\$$59.7/MWh for fixed-bottom projects and $\$$46.5/MWh - $\$$99.9/MWh for floating projects. By presenting the uncertainty associated with the forecast we provide a transparent description of the spectrum of potential cost trajectories for offshore wind.

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DOE OSTI2022

Offshore Wind Market Report: 2022 Edition

The 2022 edition of the Offshore Wind Market Report provides offshore wind policymakers, regulators, developers, researchers, engineers, financiers, supply chain participants, and other stakeholders with up-to-date quantitative information about the offshore wind market, technology, and cost trends in the United States and worldwide. The report covers the global offshore wind industry for the 2021 calendar year and the most significant U.S. domestic industry progress and events from January 1, 2021, through May 31, 2022.

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DOE OSTI2022

Policy choices and outcomes for offshore wind auctions globally

Offshore wind energy is rapidly expanding, facilitated largely through auctions run by governments. We provide a detailed quantified overview of utilised auction schemes, including geographical spread, volumes, results, and design specifications. Our comprehensive global dataset reveals heterogeneous designs. Although most auction designs provide some form of revenue stabilisation, their specific instrument choices vary and include feed-in tariffs, one-sided and two-sided contracts for difference, mandated power purchase agreements, and mandated renewable energy certificates. We review the schemes used in all eight major offshore wind jurisdictions across Europe, Asia, and North America and evaluate bids in their jurisdictional context. We analyse cost competitiveness, likelihood of timely construction, occurrence of strategic bidding, and identify jurisdictional aspects that might have influenced auction results. We find that auctions are embedded within their respective regulatory and market design context, and are remarkably diverse, though with regional similarities. Auctions in each jurisdiction have evolved and tend to become more exposed to market price risks over time. Less mature markets are more prone to make use of lower-risk designs. Still, some form of revenue stabilisation is employed for all auctioned offshore wind energy farms analysed here, regardless of the specific policy choices. Our data confirm a coincidence of declining costs and growing diffusion of auction regimes.

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DOE OSTI2022

The Determinants of Offshore Wind's Role in a Future U.S. Energy System: A Preliminary Modeling Sensitivity Analysis [Slides]

Offshore wind is an emerging industry in the with rapidly changing technology advancements and an accelerating global deployment. Policy demands and interest in the United States has grown, but the long-term future for offshore wind remains uncertain. This study is designed to evaluate offshore wind's potential role in the future U.S. energy system. The analysis uses long-term power system models to assess a wide-range of power system possibilities. Specific objectives of the analysis are to: (1) identify the determinants of offshore wind deployment under different scenarios and (2) understand the impacts of substantial levels of offshore wind deployment on the power system. We also highlight future research needs for more robust understanding the opportunities and challenges to U.S. offshore wind development.

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DOE OSTI2022

Expert perspectives on the wind plant of the future

Abstract Wind power technology has changed rapidly in recent years. Technology innovation, evolving power markets, and competing land and ocean uses continue to influence the design and operation of wind turbines and plants. Anticipating these trends and their impact on future facilities can inform commercial strategies and research priorities. Drawing from a recent survey of 140 of the world's foremost wind experts, we identify expectations of future wind plant design in 2035, both for onshore and offshore wind. Experts anticipate continued growth in turbine size, to 5.5 (onshore) and 17 MW (offshore), with plants located in increasingly less favorable wind and siting regimes. They expect plant sizes of 1,100 MW for fixed‐bottom and 600 MW for floating offshore wind. Experts forecast enhanced grid‐system value from wind through significant to widespread use of larger rotors, hybrid projects with batteries and hydrogen production, and more. To explain experts' perspectives on future plant design and operation, we identify five mechanisms: economies of unit, plant, and resource scale; grid‐system value economies; and production efficiencies. We characterize learning effects as a moderating influence on the strength of these mechanisms. In combination, experts predict that these design choices support levelized cost of energy reductions of 27% (onshore) and 17%–35% (floating and fixed‐bottom offshore) by 2035 compared to today, while enhancing wind energy's grid service offerings. Our findings provide a much‐needed benchmark for representing future wind technologies in power sector models and address a critical research gap by explaining the economics behind wind energy design choices.

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DOE OSTI2021

Updated Oregon Floating Offshore Wind Cost Modeling [Slides]

The study provides heat maps showing updated estimates of the levelized cost of energy (LCOE) for floating offshore wind energy off the coast of Oregon. This project builds on a 2019 National Renewable Energy Laboratory (NREL) floating offshore wind power cost study in Oregon (Musial et al. 2019) and a recent NREL California cost analysis (Beiter et al. 2020). Floating wind power cost data, modeling methodology, and resource data are updated and LCOE is estimated through 2032 using 2019 as a reference year. Comparisons are made to the previous offshore wind energy cost studies (Musial et al. 2019; Beiter et al. 2020). The study does not prioritize specific sites or make judgments about marine spatial planning viability.

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DOE OSTI2021

Offshore Wind Market Report: 2021 Edition

The Offshore Wind Market Report: 2021 Edition is intended to provide offshore wind policymakers, regulators, developers, researchers, engineers, financiers, supply chain participants, and other stakeholders with up-to-date quantitative information about the offshore wind market, technology, and cost trends in the United States and worldwide. This report details information on the domestic offshore wind industry to provide a U.S. context and help navigate technical and market barriers and opportunities.

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