Co-location of offshore wind, wave and floating solar could lead to ‘unprecedented’ LCOE reduction, report finds

November 10, 2022, by Amir Garanovic

Co-location of offshore wind, wave and offshore solar energy in multi-source energy parks could lead to unprecedented reduction of levelized cost of electricity (LCOE) and improve the efficient use of marine space, according to a new report by EU-SCORES project.

The conclusion has been presented in the report ‘LCOE Analysis for Baseline Project Scenarios’ by EU-SCORES project partner Exceedence in collaboration with CorPower Ocean, Oceans of Energy, Dutch Marine Energy Centre (DMEC), EDP Labelec, WavEC Offshore Renewables, and LUT University.

In the report, baseline financial models are presented for a range of individual and combined offshore renewable energy projects investigated in the EU-SCORES project.

Based on data provided by the consortium partners CorPower Ocean (wave energy) and Oceans of Energy (floating solar), LCOE reduction of wave and offshore solar energy was found to be driven by supply chain economies of scale, advanced installation and O&M experience and services, learning rates, and an increase of skilled labor and expertise, as well as improved mooring and floating substructure design.

Looking at the EU-SCORES LCOE target of €50 per MWh, the project partners said it is evident that both wave and floating solar energy are capable of reaching this target independently. However, co-location proposed by EU-SCORES will see this target achieved sooner and with less cumulative deployment, according to the report.

Oceans of Energy indicates an LCOE of between €120 and €150 per MWh by 4MW cumulative installed capacity, which is expected during EU-SCORES in 2023, to drop below €100 per MWh by 2025, and further below €50 per MWh by 2030, the report has found.

Similarly, CorPower Ocean projects its LCOE to drop to €70 per MWh at 600MW installed, and €30-40 per MWh after 20GW installed.

Multi-source energy parks to further boost LCOE reduction

By combining offshore wind, wave and offshore solar energy in multi-source energy parks as proposed by the EU-SCORES project, the LCOE of wave and offshore solar energy is expected to be further reduced. The co-location of offshore wind, wave and floating solar energy and its benefits will be further demonstrated throughout the project, the project partners said.

Co-location benefits include shared use of critical electrical infrastructures, such as substations and cables, but also marine vessels, backed up with combined operation and maintenance methodologies, complementary generation profiles and grid balancing, project co-development and maximum utilization of marine space needed.

The EU-SCORES project aims to pave the way for bankable hybrid offshore energy parks across Europe by 2025.

Under the project lead of DMEC, the €45 million EU-SCORES project aims to support the industry to unlock the large-scale potential of wind, wave and offshore solar systems.

Aside from above mentioned partners, other EU-SCORES consortium partners include TU Delft, SBM Offshore, POM West-Vlaanderen (POM), RWE Renewables, Uppsala University, Enel Green Power, RINA Offshore Consultants, INNOSEA – a AqualisBraemar LOC Group company, INESC TEC, and Western Star Wave – a Simply Blue Group company.

The project has also welcomed supporting partners ENECO Group, Energie Baden-Württemberg, ENI, IRO (Association of Dutch Suppliers in the Offshore Energy Industry), Meewind, Ocean Energy Europe, Ocean Winds, Parkwind, Redes Enérgeticas Nacionais, and TenneT.