Escaping the onshore/offshore wind dichotomy: Paying extra for better wind nearshore

Minh Ha-Duong (1)

1 CIRED - Centre International de Recherche sur l'Environnement et le Développement

Technology analysts often dichotomize wind power projects as onshore vs offshore. This neglects nearshore projects, installed in the intertidal flats for example. We explore the characteristics of this third, intermediate, category using an original quasi cross-sectional sample of Vietnam's wind power projects. The median investment for onshore wind power projects in Vietnam is 1 680 USD/kW. It is 2 174 USD/kW for nearshore projects. We computed the relative extra investment cost distribution for intertidal projects compared to onshore projects in our sample. Wind-power generation capacity requires about 50% more investment per MW nearshore than onshore. The interquartile range is 20% – 70%. Escaping the onshore vs offshore dichotomy allows to consider a different policy direction for the industry. Rather than pursuing bluefields megaprojects far offshore, a “small steps” nearshore wind farms extension policy may be cheaper, faster, and more institutionally feasible.

Mots clés: Wind power; Vietnam; Investment cost; nearshore; energy policy

Domaines: Economies et finances

Minh Ha-Duong. Escaping the onshore/offshore wind dichotomy: Paying extra for better wind nearshore. 2022. ⟨hal-03127371v2⟩