A new set of factors beyond bidding price is gaining traction in global tenders to award licences for offshore wind farms and will determine the winners and losers in a highly competitive industry, a new report by energy research firm Wood Mackenzie shows. “The focus is now shifting to multiple criteria to determine tender and lease auction outcomes, and the criteria in individual markets will differ,” Chris Seiple, vice chairman for Energy Transition at Wood Mackenzie said in a statement on Wednesday. Cost competitiveness will always remain a central element of winning in offshore wind, but this has reached its limits as project returns are dropping amid the entry of new market players, rising lease payments and lower subsidy payments. Instead, competitors will also have to consider local content, or the value a project can bring to a local, regional or national economy, as well as systems integration, ecological mitigation and sustainability in future bids, necessitating a strategic shift and greater cooperation, according to Wood Mackenzie’s head of offshore wind research Soren Lassen.
Reuters 18th May 2022 read more »