Siemens unveils offshore wind cost-cutting strategy

Siemens said this week that its offshore wind projects are expected to generate power for a levelized cost of energy (LCOE) of 8 €cents/kWh by 2025, an improvement on its 2020 goal of 10 €cents.

The company said it has already achieved 72 per cent of its 2020 goal through technical improvements in wind turbines, installation processes, new grid connection technologies, maintenance strategies and logistics.

The projected 2025 cost reductions are to come largely from the next generation of offshore turbines, with annual power output expected to grow by 10 per cent if rotor diameters and generator output also increase by that amount. Mass production of offshore turbine foundations will also contribute to the cost reductions, Siemens said.

The company cited a predicted boost by 2017 from digitalization of its blade manufacturing and turbine assembly plant in Hull, England and its nacelle manufacturing plant in Cuxhaven, Germany. Also in 2017, the firm plans to test a gravity jacket foundation with a concrete transition piece, produced in bulk by welding robots, at a Danish offshore wind project site.

And, Siemens said it had lowered costs through improved offshore service concepts and grid connection technologies, citing its offshore transformer modules (OTM) to be used at Scotland’s 588 MW Beatrice project, which are expected to reduce AC grid connection costs by around 40 per cent.

“The offshore cost-out target for 2025 is an important milestone for us and the industry to enable offshore wind grid parity. At the same time, it combines climate protection and cost efficiency,” said Michael Hannibal, CEO of Siemens Wind Power and Renewables. “We are confident that we will lower the LCoE to below 8 €cents per kWh by 2025.”à‚ 

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