Offshore wind energy cost assessment: a data-driven approach to LCOE calculation

Renewable energy is increasingly in demand, making it essential not only to develop new technologies for energy production but also to adapt existing ones to operate in different environments. This research focuses on an already existing technology, applied in a new context. Specifically, it examines offshore wind energy — the generation of electricity from wind power located not on land, but at sea. Offshore wind energy has gained significant momentum in recent years for several reasons. Land use limitations, landscape disruption, noise pollution, and the electromagnetic fields produced by onshore installations have all contributed to shifting wind power development from the mainland to marine or ocean environments. This technology can be based on different types of foundations. The first is the fixed-bottom system, in which various kinds of piles are anchored to the seabed. However, this solution is only feasible when the water depth is shallow enough to allow such installation. This technology has been studied for several years due to the relative simplicity of its design and implementation. In recent years, however, another approach has emerged — the floating system. This consists of large floating platforms that support wind turbines in areas where the seabed is too deep to anchor conventional piles, as their excessive length would make installation impractical. The development of this technology is more complex than the fixed-bottom alternative because of the engineering challenges involved in building stable floating structures. Focusing on Europe, and particularly on the morphology of European seabeds, it can be observed that in northern countries — especially around the North Sea — the seabed is relatively shallow. In contrast, the seabed in southern European regions, such as the Mediterranean Sea, becomes significantly deeper only a few kilometers from the coast. Consequently, offshore wind energy in northern Europe is predominantly based on fixed-bottom technology, which has been studied and implemented for many years, while in the south, research and development are increasingly focused on floating technology — a newly emerging field. These new technologies require different approaches to design, construction, maintenance, and decommissioning compared to onshore wind power. Consequently, they are associated with distinct economic outcomes that affect the overall feasibility of such projects. In this thesis, two models are developed to evaluate the Levelized Cost of Energy (LCOE) and other related economic indicators, such as the Internal Rate of Return (IRR), the Net Present Value (NPV), and the profit of offshore wind turbines — both fixed-bottom and floating. Once the model is established, it is applied to various European case studies, covering both Northern and Southern Europe, and including both technologies. Each case is first analyzed individually to understand how different countries are currently exploiting offshore wind technology. Subsequently, comparisons are made between countries, geographical regions, and technology types. The main objective of this work is to assess, first of all, the economic feasibility of this emerging technology and to determine whether offshore wind energy — although still relatively new — can become a cornerstone in the future of the energy transition. Furthermore, the study aims to explore in greater detail the economic differences between the various technologies and geographical areas considered, providing insights into how to improve cost efficiency and where each technology can be most effectively developed.