Comparing offshore and onshore wind development considering acceptance costs

Pablo Alejandro Hevia Koch, Henrik Klinge Jacobsen*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Cost efficient deployment of wind energy is in focus for reaching ambitious targets for renewable energy and transforming the energy supply to one based on renewables. However, as more wind is being deployed the available sites onshore become less attractive in terms of wind conditions and capacity factor and more resistance from population groups affected in the deployment areas results in a reduction of areas that can be developed. We consider three different methods for estimating acceptance costs, one based on compensation and property purchase costs, one based on property value loss near wind turbines, and one based on willingness to pay calculated from a stated preference study. Utilising these methods, we provide an estimation of Levelised Cost of Energy (LCOE) for an expansion of 12 GW onshore or offshore wind capacity in Denmark. We find that the three methods provide similar estimates for local acceptance, but that a high range of uncertainty exists in the upper bound of acceptance costs. Onshore does not have a clear-cut cost advantage over offshore when considering substantial amounts of wind capacity expansion and using high estimates for nation-wide acceptance costs. Moderate onshore wind expansion considering only local acceptance has a cost advantage.
Original languageEnglish
JournalEnergy Policy
Volume125
Pages (from-to)9-19
ISSN0301-4215
DOIs
Publication statusPublished - 2019

Keywords

  • Wind energy
  • Cost curve
  • Preferences
  • Public acceptance
  • Offshore
  • LCOE

Cite this

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title = "Comparing offshore and onshore wind development considering acceptance costs",
abstract = "Cost efficient deployment of wind energy is in focus for reaching ambitious targets for renewable energy and transforming the energy supply to one based on renewables. However, as more wind is being deployed the available sites onshore become less attractive in terms of wind conditions and capacity factor and more resistance from population groups affected in the deployment areas results in a reduction of areas that can be developed. We consider three different methods for estimating acceptance costs, one based on compensation and property purchase costs, one based on property value loss near wind turbines, and one based on willingness to pay calculated from a stated preference study. Utilising these methods, we provide an estimation of Levelised Cost of Energy (LCOE) for an expansion of 12 GW onshore or offshore wind capacity in Denmark. We find that the three methods provide similar estimates for local acceptance, but that a high range of uncertainty exists in the upper bound of acceptance costs. Onshore does not have a clear-cut cost advantage over offshore when considering substantial amounts of wind capacity expansion and using high estimates for nation-wide acceptance costs. Moderate onshore wind expansion considering only local acceptance has a cost advantage.",
keywords = "Wind energy, Cost curve, Preferences, Public acceptance, Offshore, LCOE",
author = "{Hevia Koch}, {Pablo Alejandro} and {Klinge Jacobsen}, Henrik",
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language = "English",
volume = "125",
pages = "9--19",
journal = "Energy Policy",
issn = "0301-4215",
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}

Comparing offshore and onshore wind development considering acceptance costs. / Hevia Koch, Pablo Alejandro; Klinge Jacobsen, Henrik.

In: Energy Policy, Vol. 125, 2019, p. 9-19.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Comparing offshore and onshore wind development considering acceptance costs

AU - Hevia Koch, Pablo Alejandro

AU - Klinge Jacobsen, Henrik

PY - 2019

Y1 - 2019

N2 - Cost efficient deployment of wind energy is in focus for reaching ambitious targets for renewable energy and transforming the energy supply to one based on renewables. However, as more wind is being deployed the available sites onshore become less attractive in terms of wind conditions and capacity factor and more resistance from population groups affected in the deployment areas results in a reduction of areas that can be developed. We consider three different methods for estimating acceptance costs, one based on compensation and property purchase costs, one based on property value loss near wind turbines, and one based on willingness to pay calculated from a stated preference study. Utilising these methods, we provide an estimation of Levelised Cost of Energy (LCOE) for an expansion of 12 GW onshore or offshore wind capacity in Denmark. We find that the three methods provide similar estimates for local acceptance, but that a high range of uncertainty exists in the upper bound of acceptance costs. Onshore does not have a clear-cut cost advantage over offshore when considering substantial amounts of wind capacity expansion and using high estimates for nation-wide acceptance costs. Moderate onshore wind expansion considering only local acceptance has a cost advantage.

AB - Cost efficient deployment of wind energy is in focus for reaching ambitious targets for renewable energy and transforming the energy supply to one based on renewables. However, as more wind is being deployed the available sites onshore become less attractive in terms of wind conditions and capacity factor and more resistance from population groups affected in the deployment areas results in a reduction of areas that can be developed. We consider three different methods for estimating acceptance costs, one based on compensation and property purchase costs, one based on property value loss near wind turbines, and one based on willingness to pay calculated from a stated preference study. Utilising these methods, we provide an estimation of Levelised Cost of Energy (LCOE) for an expansion of 12 GW onshore or offshore wind capacity in Denmark. We find that the three methods provide similar estimates for local acceptance, but that a high range of uncertainty exists in the upper bound of acceptance costs. Onshore does not have a clear-cut cost advantage over offshore when considering substantial amounts of wind capacity expansion and using high estimates for nation-wide acceptance costs. Moderate onshore wind expansion considering only local acceptance has a cost advantage.

KW - Wind energy

KW - Cost curve

KW - Preferences

KW - Public acceptance

KW - Offshore

KW - LCOE

U2 - 10.1016/j.enpol.2018.10.019

DO - 10.1016/j.enpol.2018.10.019

M3 - Journal article

VL - 125

SP - 9

EP - 19

JO - Energy Policy

JF - Energy Policy

SN - 0301-4215

ER -