11 Comments

Very interesting article! One question, isn't the money of the bid intended for the investment in the required offshore HVDC platform and transmission lines? Otherwise, the TSO would have to invest and pass on these costs via grid tariffs to the consumers increasing electricity tariffs regardless.

What would be the benefit of leaving this as a cost to the TSO, besides avoiding potential delays in oil-funded projects, as well as avoiding the possible negative publicity for the offshore sector (which, admittedly, are significant considerations)?

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Jul 19, 2023Liked by Jérôme à Paris

Thanks for the article! It gives an interesting flavour to P. Pouyanné’s words pronounced in Aix-en-Provence early July:

« Si tu fais un investissement, tu prends sans doute pas 50 euros le MWh comme hypothèse, mais sans doute beaucoup plus. On n'investit pas dans l'éolien offshore en Europe à 50 euros le MWh, ce n'est pas vrai ! »...!

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Interesting article, thanks for that.

Honest question, could you please clarify how did you get to the 70-80 EUR/MWh figures?

I was wondering: supposing total costs of EUR 4 billion per GW I would get (28*10^9)/(20*30*10^6) = 46.7 EUR/MWh over 20 years.

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Hi Jerôme,

an excellent analysis and I hope policymakers will read it and take it to heart! Thank you!

Maybe another reason for oil&gas supermajors pouring money into offshore wind beyond any reasonable economics is that they are sitting on vast profits that need to be invested before too much tax has to be paid? Any views on this thought?

Cheers,

Ole.

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Thank you Jerome

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Great article. Thanks for sharing.

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Excellent article, as usual. To be widely shared.

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