Standardisation in offshore wind farms

As the offshore wind industry begins its next phase of growth and extends its geographic reach, in 2025 auctions are being planned in new regions such as India, Canada, and Greece, there is an increasing push for further standardisation. Standardisation, as found in the motor industry for example, can lead to efficiency gains that can support international growth.

Currently, there is clear evidence of standardisation within the offshore wind industry. Key players in this sector include international standardisation bodies such as the International Electrotechnical Commission, the Institute of Electrical and Electronics Engineers and the International Organization for Standardization. However, to effectively meet the demands of the rapidly expanding offshore wind market, these organisations require support. For example, the climatic and natural conditions in Europe do not reflect the extreme conditions found in other parts of the world, leading to the need to adjust standards to address, for example, hurricanes and earthquakes. Private entities and classification societies are also actively involved in establishing standards and guidelines that benefit the industry as international standardisation efforts progress. For instance, DNV, the leading classification society, established the first integrated set of rules for floating offshore wind structures. The rules provide both new entrants and experienced stakeholders a set of well-tested rules and standardised processes for these structures.

The International Renewable Energy Agency (IRENA) has published a paper that has heralded the benefits of standardisation, stating that “international standardisation is crucial to harmonise requirements and enable global scale-up of offshore wind technology”. IRENA emphasizes that, despite significant advancements in offshore wind, the sector must continue to lower costs, facilitate integration with onshore electricity grid systems, and accelerate its expansion into new markets. IRENA asserts that ongoing and enhanced efforts are essential to keep pace with technological advancements, support innovation, and ensure the international harmonisation of technical requirements. IRENA also identified those areas of standardisation that require further development including operation and maintenance, wind farm ‘end of life’, control systems, and the transportation of wind turbine components.

In parallel to the pursuit of standardised wind turbine platforms, the wind turbine original equipment manufacturers (OEMs) continue to develop larger and more powerful units. It was recently announced that the Chinese OEM, Dongfang had completed production of a 26MW ore turbine model.

While larger wind turbines deliver clear benefits, such as the ability to ‘sweep’ a larger area and thus capture more wind and generate more electricity, there are downsides too. Releasing new models can undermine efforts to build a stable domestic supply chain, including investment in transport and installation vessels; what if the size of the future wind turbines outgrows the size of the vessel? It has also been argued that the frequent release of new wind turbine models can stifle developers and OEMs from extracting all the cost benefits from established technologies, such as production and maintenance efficiencies.

From an insurance perspective, there is a preference for offshore wind farms to utilise proven technology and to demonstrate a stable supply chain. These are factors that typically improve the risk profile of a project and reduce the likelihood (and impact) of insurance claims. In this sense, standardisation and the ability to better measure the ‘quality’ of the risk is generally welcomed. Standardisation initiatives being put forward by the insurance industry directly are confined to established ‘best practice’ policy language (such as the industry-wide defects exclusions as recommended by the London Engineering Group) or the standard Marine Warranty Surveyor scope of works as recommended by the Joint Natural Resources Committee. As the industry scales up, there is potential to go further in support of international growth. Standard policy wordings, proposal forms, and coverage options (as seen in the oil and gas sector) are just a few examples of where the insurance industry could align in order to promote a more efficient, stable, and growth-oriented insurance placement process.

Contact your local Marsh office to learn more and to access risk management advice and global insurance market solutions for your offshore wind projects.

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Standardisation in offshore wind farms

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Standardisation in offshore wind farms

Offshore windfarm projects

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The importance of collaboration in the fast-growing offshore wind sector

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