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Gain insight into the importance of Operations & Maintenance (O&M) for improving the operational performance and profitability of offshore wind farms with this report by BCG and PEAK Wind
Within the context of offshore wind farms, operations and maintenance (O&M) play a pivotal role in enhancing operational performance and profitability. As these farms evolve from supplementary green energy sources to primary providers, the importance of efficient O&M practices has grown significantly.
While the industry traditionally prioritised expansion and timely project delivery, there lies untapped potential in optimising existing operational fleets for greater value creation. The convergence of turbine technology advancements and a shift toward revenue-focused strategies necessitates robust predictive O&M approaches. This shift not only reduces operational costs (OPEX) and enhances asset availability, but also enables adaptation to market fluctuations and ensures sustainable long-term asset management.
By redefining operational practices and leveraging technological advancements, offshore wind farm operators can boost profitability, optimize energy production, and contribute to wind energy’s expanding role in global energy systems.
Capital expenditure (CAPEX) for offshore wind has decreased more rapidly than operational expenditure (OPEX). Compared to the past, offshore wind projects now have significantly longer lifespans, and their operational performance plays an increasingly important role in determining the net present value.
In the past, offshore wind developers focused primarily on expanding their project pipelines and ensuring timely project delivery, leaving operational efficiency as a secondary consideration. However, with growing competitive pressures, developers should now recognise the substantial untapped value within the operational fleets of even the largest and most experienced developers.
Numerous current O&M practices have their origins in the past, when wind turbines and projects were smaller and had shorter lifespan expectations. Furthermore, the full value potential of digitisation and generative AI remains to be utlised.
As the offshore wind industry transitions toward a seller’s market and faces a growing talent shortage, the development of highly competitive O&M solutions—whether internally or through strategic sourcing—has become advantageous. This approach not only allows owners to present compelling business cases and achieve attractive returns but also provides easier access to critical technical data from operational sites.
Founding Partner at PEAK Wind
Managing Director and Partner in BCG’s Oslo office
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