Floating offshore wind is the inevitable future for countries with deep coastlines like Spain, which has a total of 27 GW in pre-projects, awaiting the definition of the regulatory framework and auction schedule.

However, despite the progress, this technology still faces significant hurdles on its path to competitiveness in Europe.

While the recent auction in France revealed prices below €100/MWh, the viability of these projects has raised concerns, particularly regarding developers’ ability to carry them out without resorting to low-cost suppliers.

“Until now, the best way the industry has found to improve offshore business has always been to go for increasingly larger wind turbines,” explains Sergio Fernández, wind specialist and editor of Windletter.

An example of this is the launch of 22 MW turbines by Chinese manufacturers, which could help further reduce energy generation costs.

However, in an interview with Energía Estratégica España, the executive warns that there has been a slowdown in the development of products by Western OEMs lately.

While Chinese manufacturers are looking to increase the size of their turbines, European OEMs face profitability challenges in their offshore businesses.

“Except for Siemens Gamesa, which, according to rumors, is installing a prototype of about 21 MW, none of the OEMs have been able to advance in new technology,” says Fernández.

The key to cost reduction: industrialization and reliability

One of the biggest challenges of floating offshore wind is the lack of standardization in floating platforms.

Currently, there are multiple designs on the market, but none have emerged as the dominant solution.

The production of these platforms is another significant challenge, as, until now, they have only been manufactured in short runs, making cost reduction difficult. As Fernández points out, “the key lies in the floaters: they must be affordable, through industrialization, and have proven reliability.”

The concept of industrialization is essential for lowering prices, and the Windletter editor describes that “it’s necessary to manufacture many units in series so that every time production is needed, it is not almost artisanal and in small quantities.”

This shift towards large-scale production would help reduce operational costs and improve the competitiveness of floating technology in the energy market.

Prices down: An opportunity or a risk?

As detailed in Windletter #79 – “Floating Wind below €100/MWh?”, the recent auction in France, which awarded 250 MW of floating capacity at less than €100/MWh, has generated both excitement and skepticism.

This price is surprisingly low for floating technology, especially when compared to precedents like the WindFloat Atlantic park in Portugal, with rates of €168/MWh, or Provence Grand Large in France, with €240/MWh.

In the UK, the AR 5 auction received no offers for floating wind due to a maximum price set at €133.4/MWh.

Fernández calls the French award “great news,” but warns that these prices generate uncertainty in the supply chain.

“Suppliers fear that the developer will not be able to carry out the project or will opt for cheaper or low-cost suppliers,” the expert comments.

The project must be up and running by 2031, with orders placed between 2028 and 2029, which leaves time for the industry to adjust, but also presents considerable challenges.

The path to competitiveness

Although prices are dropping, floating wind remains an emerging technology. Europe has only 176 MW installed (as of May 2023), far from the ambitious decarbonization targets.

For floating technology to become truly competitive, it is crucial to continue innovating not only in the turbines but also in the infrastructure that supports them. Standardizing the floaters, mass production, and reliability will be key to success.

Meanwhile, European OEMs have a monumental task: “reliably adapting fixed-base offshore WTGs for floating use,” says Fernández.

The additional loads that floating wind turbines bear have caused problems in pre-commercial projects, with premature changes to large components.

As technologies evolve and industrialize, the competitiveness of floating wind could substantially improve, but the road ahead is still full of challenges.