Although onshore wind power projects are generally cheaper to build, offshore wind projects offer a critical advantage: the ability to deploy much larger turbines at scale, generating significantly more energy. This is especially valuable for densely populated European countries with limited available land but extensive coastlines, as it facilities their renewable-energy transition plans.

While onshore and offshore wind power projects rely on similar technology to convert mechanical power into electricity, they tend to exhibit some distinct risk characteristics during both construction and operating phases. In general, offshore wind projects have higher complexity, requiring more experienced sponsors, contractors and operators with specialized skill sets.

Construction risk

The construction risk of offshore wind projects is considerably higher than that of onshore wind projects, given the challenging conditions for laying down cables and foundati