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What you will get from this course

  • Overview of what makes for offshore wind hot-spots (and not-so-hot-spots) around the globe, with a downloadable, customised global offshore wind / water depth map

  • Combine site-specific wind speed simulation with turbine data, to estimate annual electricity production from first principles

  • Get to grips with discounted cash flow modelling concepts and coding, with calculations broken down into clear steps by a Wiley Finance author

  • Detailed, accessible walk-through of offshore wind costs and their drivers, from an author of International Energy Agency studies

  • Tie the strands together with an in-depth, engaging and topical multi-option case study and full model

  • Learning reinforced with quizzes and exercises, including unsolved and solved versions of Excel files

  • Certificate of completion

  • A mix of lectures, more conversational learning styles, and the odd joke

Course Outline

Unit I: Where’s Good for Offshore Wind?

Unit II: Wind-to-Watts: Resource Estimation

Unit III: Cashflow-based Valuation Basics in Excel

Unit IV: Case Study: Outlining Options and Their Costs

Unit V: Multi-option Case Study: Full Model and Analysis

A self-paced, online, self-contained Excel®-based course

... for those new to offshore wind energy, equity cashflow project modelling, or both

Student Feedback

Version 1.0 of this course was given online in October/November 2020 for the Petroleum Exploration Society of Great Britain. Here is what students said.

“I found it extremely helpful and perfect for someone like me - lots of upstream cash flow experience but no renewables … [It’s a] broad introduction to the economics of offshore wind generation, with emphasis on breaking down the cash flow into its parts - energy production, tariffs, revenues, capital and operating costs…. 

Very credible presenters, ability to get hands-on and to take away a simplified model … The waterfall charts were some of the best tools I've seen used in explaining some of the factors that impact NPV!” 

-  Stewart Williams, VP, Energy Research, Wood Mackenzie

“Overall the course has been great. I am a newcomer to wind energy but found it very accessible. The level of detail in the lectures for me has been unparalleled by other courses that I've attended. The content was information-rich, and the level of difficulty of the exercises was well pitched and sufficiently hands-on to understand the theory from the lectures.

The course significantly improved my understanding of offshore wind economics and economic principles in general, and following the course I was able to expand and transition my role into renewable project economic modelling. I am certain that the understanding of the wind industry I gained from this course directly contributed to this.” 

- Toya Latham, Analyst, GlobalData Energy

“Would recommend… An excellent introduction to wind power economics which exceeded my expectations for the amount and quality of materials…. A good balance was struck between general economic concepts and wind specific ones.

The Socratic method worked well. You make a good double act. 

Having been on the receiving end of economics spreadsheets for many years, it was good to be walked through how they are made. In addition, the tips on quality control and tracing preceding cells were generally useful. Particular credit to you for the Monte Carlo simulation without expensive software; I will use this again.” 

- Philp Rawstron, Subsurface Advisor, OGL Geothermal

“Excellent, well organised course. It did a good job of "lifting the bonnet" on the workings of the spreadsheets.

The key to delivering online courses is to keep the interest of the audience especially when the content is technical and that was certainly achieved. Strikes a really good balance between delivering knowledge without it being too ‘heavy’….

As a newcomer to offshore wind, I found the course extremely useful and a great introduction. Would recommend without hesitation. Good content, well delivered, strong self-study examples to reinforce lecture content, and presented by two really passionate presenters.”

-Roshan Khan, Petroleum Engineer, TRACS International

“Overall, useful and insightful. Pitched at the right level for a total wind novice…. the Weibull function and how this is used with the power curves was the fundamental learning for me.

- Tim Davies, Group Exploration Manager International, Harbour Energy

“An outstanding introduction to the fundamentals of wind power generation and economic modelling. It was authoritative, focused and instructive, and where appropriate witty.

I would recommend this as a taster for Petroleum Economists, Explorers and economists, investors, scientists"

- Colin Clarke, Senior Geophysicist, Lloyd's Register Energy

“Most wind courses are too basic. This course got advanced enough to offer insight, without getting bogged down in engineering details”

(Name withheld)

“[Level of exercises was] good. As with any exercise you can always make it more difficult yourself, but not simple to make it easier when you are struggling!”

(Name withheld)

“I thought the material was put together in a very thoughtful and fun way. There was a good balance between theory and practical modelling examples in Excel. In all cases, the course instructors explained the technical jargon to avoid any confusion. The modelling was very well explained and there were several levels of complexity offered for the homework depending on the participants capacity…

I felt the fun, humorous and sounding-board nature of conversations between Gavin and Ken kept the audience very engaged throughout the course, especially after what for many had already been a long day in the day-job!

Would recommend, an excellent learning pathway for people looking to get into offshore wind technical and/or commercial roles”

(Name withheld)

Downloadable, customised global offshore wind-speed and water-depth map free for all enrolled students

Exercise:

Place Different Turbines Into Different Simulated Wind Speed Environments, Pick the best Performers.

Certificates of Completion

Students completing every lesson in the course and the end-of-course survey will receive a shareable certificate of completion. Note that the certificate does not depend on performance on the quizzes or completion of the Excel exercises, which include solved versions for self-checking.



Instructors

Gavin Smart

Gavin Smart has 10 years of wide-ranging experience in financial analysis and economic modelling of offshore renewables, spanning project appraisal, business planning, budgeting and financial management. A qualified Management Accountant (ACMA, CGMA), Gavin held a number of traditional finance roles before moving into valuation and business modelling with Ernst & Young in the Middle East, working across a range of industries and delivering valuation modelling training to EY graduates. He moved into offshore renewables in 2010 as a senior valuation modeller with ScottishPower Renewables, where he was part of cross-disciplinary teams working on UK and European offshore wind and marine energy projects, compiling the business cases and multiple scenario analyses for Board-level review of projects including East Anglia One, Wikinger and St Brieuc and bringing the West of Duddon Sands project to successful Final Investment Decision (FID). Gavin joined the Offshore Renewable Energy (ORE) Catapult, the UK’s leading technology innovation and research centre for offshore renewable energy, in 2014, where he is currently Head of Analysis & Insights. He leads a team of financial and strategy analysts and is responsible for developing and maintaining financial and economic modelling, which feeds directly into the organisation’s commercial strategy and for generating insights from ORE Catapult projects. He has led a number of high-profile, industry-level projects, including: lead author on the International Energy Agency’s IEAWind Programme Task 26 “Offshore Wind Farm Baseline” report, 2016; “Macroeconomic Benefits of Floating Offshore Wind in the UK”, 2018; co-author on “Tidal Stream and Wave Energy Cost Reduction & Industrial Benefit”, 2018; and led quantitative analysis workstream of the Offshore Wind Cost Reduction Monitoring Framework (CRMF) 2014-2017. Gavin and his team also work with a number of innovative companies helping to quantify the benefits of their products and services, and identifying pathways to commercialisation. In addition to conducting and documenting detailed and complex analysis, Gavin regularly presents project findings and industry thought leadership at various offshore renewables conferences, including Global Offshore Wind, Wind Energy Hamburg, Reuters Offshore & Floating Wind Europe.

Ken Kasriel

Ken Kasriel is an independent petroleum economist and Associate Principal Economist with ERCE Energy in London. His 25-year career in petroleum finance also includes working in oil and gas equities research (including at Robert Flemings, now part of JP Morgan), as Senior Analyst with PwC’s global petroleum practice, and Senior Petroleum Economist with RPS Energy. He has built upstream economic models in 27 fiscal regimes in Africa, Asia, Europe, the Former Soviet Union, the Middle East and the Americas, for the purposes of valuation, fiscal/legal due diligence, investment screening, portfolio optimization, negotiation, commercial arbitration and regulatory reporting. Mid-case resources involved have ranged from a few million to over a billion barrels of oil equivalent, from pre-drill exploration scoping through to brownfield development option valuation. He has co-authored papers presented to the Society of Petroleum Engineers/published in The Oil & Gas Journal, as well as the textbook, Upstream Petroleum Fiscal and Valuation Modeling in Excel: a Worked Examples Approach, which student bookstore sales data indicate has been adopted by 21 US universities and colleges since its publication in 2013 by Wiley Finance. Editorial and Amazon reviews give it good marks for accessibility / laymen-friendliness. He has taught a short course in petroleum economics and risk analysis to non-economist Petroleum Geoscience MSc students at University of London, Royal Holloway. He has also taught upstream valuation modelling at the French Institute of Petroleum (IFP School); privately trained new oil and gas company and investment banking staff before starting their first economic modelling roles; and built courseware used in training petroleum law students, simulating fiscal contract negotiations among governments and international/national oil companies. Originally a journalist (including a role as a multi-sector business editor of a business magazine published by the Economist Group), he prefers plain English to academic speak, and likes cross-disciplinary grazing, learning and explaining.

Course curriculum

  • 1

    Welcome - Course Overview and Housekeeping

    • Welcome and Housekeeping Notes

    • Course Overview: Offshore Wind Economics for Complete Beginners

    • What's New and "Maintenance Alerts" (last update: 9 July 2022)

  • 2

    Unit I Overview: Where’s Good for Offshore Wind ?

    • Unit I Overview

  • 3

    Unit I.A: Offshore Wind – Some Basics

    • Unit I.A.1: How Windy is Windy?

    • Unit I.A.2: Introduction to Wind Speed Distributions

    • Unit I.A.3: Windy Offshore Places

    • Unit I.A.4: All You Need Is Wind Resource - Or Is It..?

    • Unit I.A.5: Generation Capacity vs Generation

    • Unit I.A. 6: What's Big for an Offshore Wind Farm?

    • Unit I.A.7: Trends in Offshore Wind Farm Scale

  • 4

    Unit I.B: Introduction to Electricity Transmission and Grid Realties

    • Unit I.B.1: Iceland as a Windy Kuwait? When Interconnectors Do and Don't Make Sense

    • Unit I.B.2: Transmission Costs and Distance: a UK Example

    • Unit I.B.3: Onshore Transmission Charging

    • Unit I.B.4: Getting Power Not Only Where, But When It's Needed

    • Unit I.B.5: Electricity - Balancing Supply and Demand

    • Unit I.B.6: When a Grid Wobbles

    • Unit I.B.7: Conducting the Electric (Light) Orchestra

    • Unit I.B.8: Introduction to Utility-Scale Power Storage

    • Unit I.B.9: A Peek at Future Storage Costs

  • 5

    Unit I.C: Offshore Wind and Water Depth

    • Unit I.C.1: Back to the Present - Avoid Long Distance Transmission Where Possible

    • Unit I.C: 2 - Farewell Iceland, Hello California

    • Unit I.C.3: Water Depth and Offshore Wind Deployment

    • Unit I.C.4: Floating Offshore Wind - Current Status

    • Unit I.C.5: Floating Wind - Towards Commercialisation

    • Unit I.C.6: Floating Wind Deployment and Cost Reduction (1/2)

    • Unit I.C.7: Floating Wind Deployment and Cost Reduction (2/2)

    • Unit I.C.8: Offshore Wind Manufacture and Infrastructure

  • 6

    Unit I.D: Offshore Wind and Distance from Shore

    • Unit I.D.1: Transmission - Distance and Power Losses

    • Unit I.D.2: Transmission - Offshore and Onshore Substations

    • Unit I.D.3: Transmission - Introduction to HVDC

    • Unit I.D.4: Transmission - HVAC vs HVDC

    • Unit I.D.5: Transmission - "Typical" Distances From Land

    • Unit I.D: 6 - Transmission - Pushing the Distance Boundaries

    • Unit I.D.7: Transmission - Cables and Converters

    • Unit I.D.8: Transmission - Project Scale and Distance

    • Unit I.D.9: Distance From Shore - O and M Costs

    • Unit I.D.10: Distance From Shore - O and M Costs - Vessel Strategies

  • 7

    Unit I.E: Refining our Lens

    • Unit I.E.1: Adding More Rigour to Our So-far Fruitless Treasure Hunt

    • Unit I.E.2: Oddballs: Inter-tidal Sites

    • Unit I.E.3: A Matter of Scale

    • Unit I.E.4: A Sense of Depth

    • Unit I.E.5: Can We See Both Water Depth and Mean Wind Speed?

    • Unit I.E.6: Testing Our Refined Lens: Australia

    • Unit I.E.7: Onwards!

    • Unit I.E.8: Download the Course Custom Mean Wind Speed / Water Depth Map

  • 8

    Unit I.F: Offshore Wind Regional Tour - East Asia

    • Unit I.F.1: East Asia Focus - Introduction

    • Unit I.F.2: China Focus - Introduction

    • Unit I.F.3: China Focus - Shanghai and South Coast

    • Unit I.F.4: China Focus - Fuzhou Area

    • Unit I.F.5: Taiwan Focus - Introduction

    • Unit I.F.6: Taiwan Focus - Offshore Wind Areas of Potential

    • Unit I.F.7: Taiwan Focus - A Mix of Bottom-Fixed and Floating Wind

    • Unit I.F.8: Taiwan Focus - Permitting and Air Traffic Radar Issues

    • Unit I.F.9: (Tangent: Military Exclusion Zones)

    • Unit I.F.10: (Exclusion Zones (exercise))

    • Unit I.F.11: South Korea Focus

    • Unit I.F.12: Japan Focus - Introduction

    • Unit I.F.13: Japan Focus - Mixed Strategy

    • Unit I.F.14: Japan Focus - South Coast

    • Unit I.F.15: Japan Focus - Population and Grid

  • 9

    Unit I.G: Offshore Wind Regional Tour – The British Isles

    • Unit I.G.1: UK & Ireland - UK Raw Wind Resource

    • Unit I.G.2: UK & Ireland - UK Offshore Wind Hot Spots

    • Unit I.G.3 :UK & Ireland - Scotwind 2022 Results: a Big Shout Out for Floating Wind Globally

    • Unit I.G.4: UK & Ireland - Ireland

  • 10

    Unit I.H: Other Interesting Windy Places

    • Unit I.H.1: Other Interesting Windy Places

  • 11

    Unit I Appendix: Experience Curves, Market Forces, Cost Pressures

    • Unit I. Appendix.1: Experience Curve - Introduction

    • Unit I. Appendix.2: Experience Curve - Progressing Along a Log Scale is Easy, Until it Isn't

    • Unit I. Appendix.3: Wandering off the Curve

    • Unit I. Appendix.4: Experience Curve and Market Pricing

    • Unit I. Appendix.5: Separating the Experience Curve From Market Impacts - Introduction

    • Unit I. Appendix.6: Separating the Experience Curve From Market Impacts - Visualisation

    • Unit I. Appendix.7: Separating the Experience Curve From Market Impacts - Importance

    • Unit I. Appendix.8: Pure vs fully-loaded experience curves

    • Unit I. Appendix.9: Experience Curves and Storage Technology

    • Unit I. Appendix.10: Experience Curves With Supply and Demand

    • Unit I. Appendix.11: Experience Curves and Wider Renewables and Storage Markets

    • Unit I. Appendix.12: Quiz - Experience Curves

  • 12

    Unit I: Further Resources

    • Unit I: Further Resources

  • 13

    Unit II Overview: Wind-to-Watts: Resource Estimation

    • Unit II Overview; Handy Excel Auditing Macros; The CHOOSE Function

  • 14

    Unit II.A Introduction to Simulation

    • Unit II.A.1: Resource Estimation Overview; Intro to Simulation

    • Unit II.A.2: Program the Behaviour You Want to Model

    • Unit II.A.3: Simulate Many Times, Summarise and Check

    • Unit II.A.4: Easy First Example: Virtual Coin Toss

    • Unit II.A.4a: Download

    • Unit II.A.5: Understanding Excel's RAND Function

    • Unit II.A.6: Getting RAND to Understand Us

    • Unit II.A.7: Monte Carlo Simulation in Excel with Data Tables

    • Unit II.A.8: How do we Know this Thing Works?

    • Unit II.A.9: Programming a Fair Die

    • Unit II.A.10: Preliminary sense check of our programming

    • Unit II.A.11: Scaling up the Simulation -- Painless

    • Unit II.A.12: Scaling up to … how Many Trials?

    • Unit II.A.13: Scaling up to call B.S.

    • Unit II.A.14: Download the Dice Simulator

    • Unit II.A.15: Let's Model the Wind Already

  • 15

    Unit II.B: Simulating annual wind speed distributions

    • Unit II.B.1: Simulating Annual Wind Speeds in Excel

    • Unit II.B.2: Introducing the Weibull distribution calculation

    • Unit II.B.3: Using the Mean Wind Speed to Unlock the Weibull

    • Unit II.B.4: The Weibull Function Cell which Feeds the Simulator

    • Unit II.B.5: Excel Mechanics - the Simulator Which Feeds the Histogram

    • Unit II.B.6: the Histogram Which Feeds the Chart

    • Unit II.B.7: Side Note - the Number of Days per Average Year

    • Unit II.B.8: Scaling the Chart Data to One Year

    • Unit II.B.9: Testing the Model with a Key Check Cell

    • Unit II.B.10: Recap; Exercises (Simulation Coding, Real World Data Gathering; Adjusting Wind Speed for Height)

    • Unit II.B.11: Exercise Files

  • 16

    Unit II.C: Calculating Gross Annual Electricity Production (Single Turbine)

    • Unit II.C.1: Download the Wind Simulation Model Covered in These Lectures (+ Unsolved Exercises)

    • Unit II.C.2: Introducing Turbine Power Curves

    • Unit II.C.3: Basic Terminology and Units

    • Unit II.C.4: Key Power Curve Junctures - Outline of Gross AEP Formula

    • Unit II.C.5: Example Calculation: One Point on the Curve

    • Unit II.C.6: the Pocket of Wind Which Matters to Us

    • Unit II.C.7: From Here, a Short Step to Gross Single-Turbine AEP

    • Unit II.C.8: Visualising Gross Single-Turbine AEP

    • Unit II.C.9: Capacity Factor Calculation

  • 17

    Unit II.D: AEP and Turbine Selection Exercises

    • Unit II.D.1: Exercise: Gross AEP for One Turbine, Many Different Wind Profiles

    • Unit II.D.2: Exercise: Pick the Best Turbines for our Case Study Model

    • Unit II.D.3: Turbine Selection Exercise - Example Walkthrough

    • Unit II.D.4: Download Solved Versions of Exercises Here

  • 18

    Unit II.E: Methodology Limitations and Workarounds

    • Unit II.E.1: Methodology Limitations and Workarounds - Introduction

    • Unit II.E.2: How we are and aren't using Monte Carlo Simulation

    • Unit II.E.3: Annual Wind Speed Variability

    • Unit II.E.4: A Real World Refinement - Measure-Correlate-Predict

    • Unit II.E.5: Accounting for Annual Variability - Inter-quartile Ranges

    • Unit II.E.6: Seasonal Wind Speed Variability - Monthly Basis Adjustment

    • Unit II.E.7: Pricing Variability

    • Unit II.E.8: Public Wind Atlas Data are Very Useful Estimates, but No Substitute for Measured Site Data

  • 19

    Unit II.F: Extra Wind Resource Bits and Pieces for the Curious

    • Unit II.F.1: Introduction

    • Unit II.F.2: Blade Tip Speeds and Generation Cut-out Speeds

    • Unit II.F.3: How Wind Turbines Slow Themselves Down

    • Unit II.F.4: Bin Sizes in Gross AEP Calculation - Bigger Isn't Better

    • Unit II.F.5: Bin Sizes, Continued

    • Unit II.F.6: Why Turbine Power Curves Look as They Do - Introduction

    • Unit II.F.7: Getting Electricity From Wind

    • Unit II.F.8: Introducing the Coefficient of Power (Cp)

    • Unit II.F.9: the Betz Limit

    • Unit II.F.10: Why is There a Limit at All?

    • Unit II.F.11: How Turbine Generation Capacity Limits and Rated Wind Speeds Tie Together

    • Unit II.F.12: Introducing the Wind Power to Electricity Equation

    • Unit II.F.13: A) a Curve-Defining Exponent; B) Air Density

    • Unit II.F.14: Blade Length and Generation

    • Unit II.F.15: The Coefficient of Power, Revisited

    • Unit II.F.16: Behind the Curve's Smooth Plateau - a Lot of Backstage Melodrama

    • Unit II.F.17: Cp: Idealised Versus Real World

    • Unit II.F18: Intuition Check - How Cp Helps Shape the Power Curve

    • Unit II.F.19: Don't Confuse The Coefficient of Power ("Cp") with the Capacity Factor ("CF")

    • Unit II.F.20: Download the Exercise Files - Misusing the Mean Wind Speed; Recreating the IEA's test turbine

  • 20

    Unit II: Space for Potential Future Resources

    • Unit II: Space for Potential Future Resources

  • 21

    Unit III Overview: Cashflow-based Valuation Basics in Excel

    • Unit III Overview

  • 22

    Unit III.A: Basic project economic calculations and concepts - Overview

    • Unit III.A.1: Download the Pretax Mini-Model (with Exercise I)

    • Unit III.A.2: What We'll do Here - Timing Calculations

    • Unit III.A.3: What We'll do Here - Monetary Calculations (Inflation, Discounting)

    • Unit III.A.4: What We'll do Here - Analysing Results

  • 23

    Unit III.B: Modelling Timing Including Delays

    • Unit III.B.1: Time-shifting - Identifying the First Costs in the Queue

    • Unit III.B.2: A Dynamic Pre-Generation Cost Schedule (HLOOKUP Function)

    • Unit III.B.3: Generation Start Year

    • Unit III.B.4: Generation End Year

    • Unit III.B.5: Timing Flags - Generation, Tariff Periods

    • Unit III.B.6: Quick Tangent - Using Checksums

    • Unit III.B.7: Decommissioning Flag

    • Unit III.B.8: Quick Tangent - Excel's Evaluate Formula Feature

  • 24

    Unit III.C: From Events to Cashflows

    • Unit III.C.1: Net Cashflows (NCFs) at Last! First step: "Real " (Constant Currency) NCFs

    • III.C.2: Nominal NCFs

    • Unit III.C.3: Net Present Value (NPV) from Nominal NCFs - Quick and Dirty with Excel's NPV Function

    • Unit III.C.4: A first encounter with Internal Rate of Return (IRR)

    • Unit III.C.5: Maximum Exposure and Breakeven; Pivoting Away from the NPV Function

    • Unit III.C.6: NPV, the Longform Way

  • 25

    Unit III.D: Why We Discount (and do it the Longform Way)

    • Unit III.D.1: Recap - the Road so Far

    • Unit III.D.2: A Metaphor for Discounting, Rhymes with Sorrow

    • Unit III.D.3: The Sense Behind the Formula - Reverse Engineering the Discount Factor

    • Unit III.D.4: More Reverse Engineering; Discount Rate as Opportunity Cost of Capital

    • Unit III.D.5: Weighted Average Cost of Capital

    • Unit III.D.6: Discounting Periods

    • Unit III.D.7: Why We Use Mid-Period Discounting (and Inflation)

    • Unit III.D.8: When This is Less of a Big Deal

    • Unit III.D.9: Discounting hits Different Cashflows Differently

    • Unit III.D.10: Watching NPV "Flip"

    • Unit III.D.11: Why'd that Change That Way? Variance Analysis

    • Unit III.D.12: While Modelling, Make Undiscounted NCF Your "Coal Mine Canary" Cell to Watch, Not NPV

    • Unit III.D.13: Exercises - Coding Practice; Discounting "Weirdness"

  • 26

    Unit III.E: Basic Project Income Taxation

    • Unit III.E.1: Introduction - Basic Project Income Tax

    • Unit III.E.2: Download this Unit's Mini-Model, and some exercises

    • Unit III.E.3: Throat-clearing

    • Unit III.E.4: Income Tax Deductions (3 Different Kinds)

    • Unit III.E.5: Make Losses Untaxable

    • Unit III.E.6: Send any Untaxable Losses "Up and to the Right"

    • Unit III.E.7: Tax Losses From Prior Periods, Vs. Tax Losses from Operations

    • Unit III.E.8: Tying off Loss Carry-forwards, Introducing the Other Tax Allowances

    • Unit III.E:9: Expensable Allowances vs. Depreciable Allowances

    • Unit III.E.10: Depreciation: Mechanism and Overview of Remaining Steps

    • Unit III.E.11: Determining when Things Become Depreciable

    • Unit III.E.12: Depreciability Timing - Coding

    • Unit III.E.13: Core Depreciation Calculation

    • Unit III.E:14: Terminal Year Adjustment, to Tie Things off With a Knot

    • Unit III.E:15: Tax Calculation - Recap

    • Unit III.E.16: Closing Remarks, Exercise

    • Unit III.E.17: There's a Bit More to Tax, of Course

  • 27

    Unit III: Space for Potential Future Resources

    • Unit III: Space for Potential Future Resources

  • 28

    Unit IV Overview: Case Study - Outlining Options and Their Costs

    • Unit IV overview

  • 29

    Unit IV.A: Case Study Outlines

    • Unit IV.A.1: Basic Parameters

    • Unit IV.A.2: Visual Impact Issue

    • Unit IV.A.3: Legal Challenges to Our Project

    • Unit IV.A.4: Options Facing Our Developer

    • Unit IV.A.5: Physical Site Parameters

    • Unit IV.A.6: Developer Turbine Options

    • Unit IV.A.7: Refresher on Project Options to be Analysed

    • Unit IV.A.8: Options 1 and 2 (Fight the Legal Challenge)

    • Unit IV.A.9: The Remaining Options

    • Unit IV.A.10: Got all That? A Quick Recap

    • Unit IV.A.11: Note on Turbine Ratings Used in The Case Study (No Audio)

    • Unit IV.A.12: Quiz - Case Study Overview

  • 30

    Unit IV.B: Case Study Assumptions

    • Unit IV.B.1: Before We Jump In: Guide to an Offshore Wind Farm (Website/Downloadable PDF)

    • Unit IV.B.2: Bird's Eye View of Site Parameters

    • Unit IV.B.3: Cost and Performance Impact of Different Wind Speeds

    • Unit IV.B.4: Cost Impact of Different Water Depths

    • Unit IV.B.5: Relevant "Distances From Shore"

    • Unit IV.B.6: Cost Impact of Different Distances From Shore

    • Unit IV.B.7: Cost Impact of Different Wave Conditions

    • Unit IV.B.8: Cost Impact of Different Seabed Conditions

    • Unit IV.B.9: Seabed Installation Terminology: Reminders/Explainers (1/2)

    • Unit IV.B.10: Seabed Installation Terminology: Reminders/Explainers (2/2)

    • Unit IV.B.11: Site Parameters Summary

    • Unit IV.B.12: Design Life

    • Unit IV.B.13: Repowering and Design Life Questions

    • Unit IV.B.14: Quiz - Case Study Assumptions

  • 31

    Unit IV.C: Case Study Costs - Devex

    • Unit IV.C.1: Introduction to Development Expenditure (Devex)

    • Unit IV.C.2: Development Risk and Environmental Surveys

    • Unit IV.C.3: Environmental Protection and Standards

    • Unit IV.C.4: Devex Costs

  • 32

    Unit IV.D: Case Study Costs - Capex, Turbines Focus

    • Unit IV.D.1: Offshore Wind Turbine Costs Overview

    • Unit IV.D.2: Transition Pieces

    • Unit IV.D.3: Structural Notes

    • Unit IV.D.4: Turbine Supply - Wrap-Up

    • Unit IV.D.5: Note re Turbine Size and Economies of Scale

    • Unit IV.D.6: Turbine Installation Costs

    • Unit IV.D.7: Turbine Installation Footage

  • 33

    Unit IV.E: Case Study Costs - Capex, Foundations Focus

    • Unit IV.E.1: Offshore Wind Foundations - Introduction

    • Unit IV.E.2: Foundations Cost Variances

    • Unit IV.E.3: Monopile Fabrication and Installation

    • Unit IV.E.4: Monopiles - a Sense of Scale

    • Unit IV.E.5: Different Offshore Wind Foundation Types Compared

    • Unit IV.E.6: Monopile and Jacket Foundation Supply Costs - 10 MW Turbines

    • Unit IV.E.7: Monopile and Jacket Foundation Installation Costs - 10 MW turbines

    • Unit IV.E.8: Monopile and Jacket Cost Comparison - 6MW Turbines

    • Unit IV.E.9: Comparing the Mass of Monopiles and Jackets

    • Unit IV.E.10: Jacket Fabrication

    • Unit IV.E.11: Case Study Foundation Cost Assumptions

  • 34

    Unit IV.F: Other Capex and Wrap-Up

    • Unit IV.F.1: Array Cables and Transmission (1/2)

    • Unit IV.F.2: Array Cables and Transmission (2/2)

    • Unit IV.F.3: Other Capex

    • Unit IV.F.4: Capex Wrap-Up

  • 35

    Unit IV.G: Operations & Maintenance, Decom

    • Unit IV.G.1: Operations & Maintenance (O&M) Costs Overview

    • Unit IV.G.2: Other Operating Costs

    • Unit IV.G.3: Decommissioning Overview

    • Unit IV.G.4: Decommissioning and Scrap Value

    • Unit IV.G.5: Decommissioning, Recycling and Responsible Disposal of Components

    • Unit IV.G.6: Cost Assumptions Wrap-Up

    • Unit IV.G.7: Quiz - Case Study Costs

  • 36

    Unit IV.H: Transmission Focus

    • Unit IV.H.1: Transmission Assets - Refresher

    • Unit IV.H.2: Transmission Assets (2)

    • Unit IV.H.3: HVAC or HVDC - That Is The Question

    • Unit IV.H.4: International inter-connections (1)

    • Unit IV.H.5: International inter-connections (2)

    • Unit IV.H.6: Enablers for Inter-connection

    • Unit IV.H.7: Quiz - Transmission Focus

  • 37

    Unit IV: Space for Potential Future Resources

    • Unit IV: Space for Potential Future Resources

  • 38

    Unit V Overview: Multi-option Case Study Model: Full Model and Analysis

    • Unit V Overview: Multi-option Case Study Model: Full Model and Analysis

  • 39

    Unit V.A: Download the Case Study Model Here

    • Unit V.A.1: Download the Case Study Model

  • 40

    Unit V.B: Pricing (Tariff) Assumptions

    • Unit V.B.1: Feed-in Tariffs vs Market pricing; Thoughts on Forecasts

    • Unit V.B.2: Merit Order Pricing

    • Unit V.B.3: Adding Wind to the Mix: Good times, Bad times

    • Unit V.B.4: Our Model's Tariff Regimes

  • 41

    Unit V.C: Losses

    • Unit V.C.1: Losses Overview; Wake Losses

    • Unit V.C.2: Reducing Wake Losses: Layout Optimisation; Total Wind Farm Control

    • Unit V.C.3: Downtime

    • Unit V.C.4: Other (pre-Erosion) Losses

    • Unit V.C.5: Losses from Blade Erosion

    • Unit V.C.6: Accounting for Erosion in the Case Study Model

  • 42

    Unit V.D: Case Study Results

    • Unit V.D.1: Sorry to Nag, but Again: Read the ReadMe Tab

    • Unit V.D.2: Turbine Selection Results; Feeding the Case Study Model

    • Unit V.D.3: Refresher: our Variance Analysis Lens

    • Unit V.D.4: Refresher: our Case Variables

    • Unit V.D.5: Something Nice We *Can't* Do: Nearshore, Now (Case8)

    • Unit V.D.6: One we can do: Farshore, Now (Case 4)

    • Unit V.D.7: Case 8 vs 4 - Quantifying the Impact of Chasing the Faster, Farshore Winds

    • Unit V.D.8: The Impact of a Delay - Farshore, Now vs Later (Case 8 vs Case 2)

    • Unit V.D.9: The Impact of a Delay - Nearshore, Now vs Later (Case 4 vs Case 6)

    • Unit V.D.10: Nearshore NPV Impacts of a 3, 2 or 1 Year Delay (Flexing Case 6)

    • Unit V.D.11: The 6 MW Turbine Options

    • Unit V.D.12: Same Site, Same Time, Different Turbines (Cases 7 and 8)

    • Unit V.D.13: Same Site, Different Turbines, continued

    • Unit V.D.14: Intuition Check - Guess how changing Turbine Capacity impacts NPV (Case 1 vs Case 2)

    • Unit V.D.15: How'd You Do?

    • Unit V.D.16: More (Dis)economies of Scale: 6 MW Turbines Farshore (Cases 3 and 5)

    • Unit V.D.17: Analysis Wrap-up: Where Does This Leave Us?

  • 43

    Unit V.E: Levelised Cost Of Energy (LCOE)

    • Unit V.E.1: What is LCOE, how do we Calculate it, Why Should we Care?

    • Unit V.E.2: Comparing Differently-fuelled Generators

    • Unit V.E.3: Don't confuse LCOE and "Merit Order" prices

    • Unit V.E.4: LCOE and Cross-country Comparisons

    • Unit V.E.5: Discount Rates: Refresher

    • Unit V.E.6: Our Case Study's Discount Rate in an Industry Context

    • Unit.V.E.7: Intuiiton Check - LCOE vs Mean Wind Speed

  • 44

    Unit V.F: Exercises Using the Case Study Model

    • Unit V.F.1: Getting up on Two Wheels With the Case Study Model: Guided, Intuition-Building Guessing Games

    • Unit V.F.2: Exercise: Fill in the Missing Formulas

    • Unit V.F.3: Internal Rate of Return - Uses & Quirks (Download Lecture's Excel File)

    • Unit V.F.4: Using and testing Excel's Function for IRR, the NPV "Breakeven Discount Rate"

    • Unit V.F.5: What IRR Tells Us

    • Unit V.F.6: One Net Cashflow Stream, Multiple IRRs

    • Unit V.F.7: When IRR is Incalculable

    • Unit V.F.8: Checking the Case Study IRRs

  • 45

    Unit V: Space for Potential Future Resources

    • Unit V: Space for Potential Future Resources

  • 46

    Course completion survey

    • Please take a few minutes to fill in this brief survey to ensure we continue to meet the needs of our students

FAQ

  • I am new to offshore wind, is this course suitable for me?

    Yes, absolutely! This course has been specifically designed for students who are new to offshore wind or economic modelling or both.

  • Is this course interactive?

    No. It is self-contained; more of a talking textbook with solved examples for self-checking, than a classroom.

  • Will I get a certificate for completing this course?

    Yes. All students who complete the course will automatically receive an electronic certificate upon course completion. Certificates are issued regardless of score received in end of unit tests and how you perform in the various downloadable exercises.

  • Is there a time limit for completing the course?

    Purchasing the course gives you access to all course materials for 12 months from time of ordering. Before the end of the 12 month period you will receive a reminder email asking if you wish to extend your access to the course materials.

  • Are there refunds?

    No. Please refer to the detailed Terms & Conditions document in the downloads section of this web page for further details as required.

  • Do you cover debt/other project financing methods?

    This would require teaching basic three-statement accounting, which is beyond the scope of this beginners course, where we focus on equity-only-basis discounted cashflow modelling, from detailed first principles (e.g. wind speed at site, turbines used, detailed costs, basic income tax, etc). The fundamentals-based equity cashflow results which we show how to calculate can be readily fed into an existing financing model. For those new to finance modelling, there are excellent third-party courses available.

  • How long will the course take to complete?

    The course consists of almost 12 hours of video and includes a number of downloadable Excel exercises for students to tackle at their own pace.

  • What are the technical requirements?

    Broadband for the streaming videos; some lectures can be viewed comfortably on a small internet-enabled device like a phone, although we'd definitely suggest something larger like a laptop or desktop PC for the detailed how-to modelling videos. You'll also need Microsoft Excel® to access and complete the exercise files.

  • How much does the course cost to buy and are discounts available?

    The course is priced at £820 + VAT (or local currency and sales tax equivalent). Volume discounts are available based on the number of single-user courses purchased, and academic rates are available in some cases - please see the Pricing section below.

Pricing

A year's access to the course per individual costs + any applicable VAT / sales tax. The price shown in the "Purchase" section below also shows the amount in your local currency.

Volume discounts are available for multiple purchases.

  • 1 - 4 course purchases charged at full price

  • 5 - 9 course purchases receive 10% discount, automatically applied at checkout

  • 10 -19 course purchases 15% discount, automatically applied at checkout

  • If you wish to purchase the course for more than 19 students, please contact offshorewindeconomics@ore.catapult.org.uk

  • Academic pricing is available at our discretion for full-time students / most recent cohort graduates of qualifying higher education institutions. For details, please contact us at the email address above, using your institutional email address and including "academic rate" in the header.

Accessing the Course After Purchase

After purchasing, you should shortly receive an email from Offshore Renewable Energy Catapult & Ken Kasriel,  with the subject "You are now enrolled in Offshore Wind Economics for Complete Beginners!"

This email provides a link to let you set your own password to the course site. 

Once you have set the password, you can sign in. You'll arrive at your student dashboard. There, under "My courses", click "Start Course".  That's it! 

Purchase

The course is available for purchase, priced at £820 (    in your local currency) before any applicable VAT/Sales Tax. You will see the final price to you, including tax, at checkout before purchasing.

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Offshore Wind Economics for Complete Beginners