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An Economic Assessment Framework for Decommissioning of Offshore Wind Farms using a Cost Breakdown Structure

Adedipe, Tosin, Shafiee, Mahmood (2021) An Economic Assessment Framework for Decommissioning of Offshore Wind Farms using a Cost Breakdown Structure. International Journal of Life Cycle Assessment, 26 . pp. 344-370. ISSN 0948-3349. (doi:10.1007/s11367-020-01793-x) (KAR id:87036)

Abstract

Purpose

As wind power generation increases globally, there will be a substantial number of wind turbines that need to be decommissioned in the coming years. It is crucial for wind farm developers to design safe and cost-effective decommissioning plans and procedures for assets before they reach the end of their useful life. Adequate financial provisions for decommissioning operations are essential, not only for wind farm owners but also for national governments. Economic analysis approaches and cost estimation models therefore need to be accurate and computationally efficient. Thus, this paper aims to develop an economic assessment framework for decommissioning of offshore wind farms using a cost breakdown structure (CBS) approach.

Methods

In the development of the models, all the cost elements and their key influencing factors are identified from literature and expert interviews. Similar activities within the decommissioning process are aggregated to form four cost groups including: planning and regulatory approval, execution, logistics and waste management, and post-decommissioning. Some mathematical models are proposed to estimate the costs associated with decommissioning activities as well as to identify the most critical cost drivers in each activity group. The proposed models incorporate all cost parameters involved in each decommissioning phase for more robust cost assessment.

Results and discussion

A case study of a 500 MW baseline offshore wind farm is proposed to illustrate the models’ applicability. The results show that the removal of wind turbines and foundation structures is the most costly and lengthy stage of the decommissioning process due to many requirements involved in carrying out the operations. Although inherent uncertainties are taken into account, cost estimates can be easily updated when new information becomes available. Additionally, further decommissioning cost elements can be captured allowing for sensitivity analysis to be easily performed.

Conclusions

Using the CBS approach, cost drivers can be clearly identified, revealing critical areas that require attention for each unique offshore wind decommissioning project. The CBS approach promotes adequate management and optimisation of identified key cost drivers, which will enable all stakeholders involved in offshore wind farm decommissioning projects to achieve cost reduction and optimal schedule, especially for safety-critical tasks.

Item Type: Article
DOI/Identification number: 10.1007/s11367-020-01793-x
Uncontrolled keywords: Wind energy; Decommissioning; Offshore wind farm; Life-cycle costing; Cost breakdown structure (CBS)
Subjects: T Technology > TA Engineering (General). Civil engineering (General) > TA165 Engineering instruments, meters etc. Industrial instrumentation
T Technology > TJ Mechanical engineering and machinery
V Naval Science > VM Naval architecture. Shipbuilding. Marine engineering
Divisions: Divisions > Division of Computing, Engineering and Mathematical Sciences > School of Engineering and Digital Arts
Depositing User: Mahmood Shafiee
Date Deposited: 09 Mar 2021 23:42 UTC
Last Modified: 14 Nov 2022 23:11 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/87036 (The current URI for this page, for reference purposes)

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