Bridging the Gap between Onshore and Offshore Innovations by the European Wind Power Supply Industry: A Survey-Based Analysis

FCN Working Paper No. 19/2012

66 Pages Posted: 28 Mar 2013

See all articles by Christoph Wüstemeyer

Christoph Wüstemeyer

Massachusetts Institute of Technology (MIT)

Derek W. Bunn

London Business School

Reinhard Madlener

RWTH Aachen University

Date Written: December 1, 2012

Abstract

This paper provides an in-depth analysis of investment decisions and shifts related to onshore and offshore wind power supply chains. Insights about cost reductions are generated from analyzing project financing data, using a 'European learning curve' derived from a European learning system. In doing so, we take into account the limited number of leading technology suppliers in the global market. Experience curve analysis and insights from qualitative research are used to discuss the market entry barriers to the offshore wind power market. We also use data generated from a questionnaire survey circulated among the European wind power industry. From the analysis we conclude that the adoption of offshore technology has been evolving over time when companies from closely related industries, and not start-up companies, started to enter the offshore market. For policy-makers, it is essential to acknowledge that sophisticated industry structures need to be established, and that barriers to adoption among the players in the onshore supply industry, which seem to differ, can be effectively removed.

Keywords: Wind power, supply chain, technology adoption, experience curve, learning, United Kingdom

Suggested Citation

Wüstemeyer, Christoph and Bunn, Derek W. and Madlener, Reinhard, Bridging the Gap between Onshore and Offshore Innovations by the European Wind Power Supply Industry: A Survey-Based Analysis (December 1, 2012). FCN Working Paper No. 19/2012. Available at SSRN: https://ssrn.com/abstract=2240282 or http://dx.doi.org/10.2139/ssrn.2240282

Christoph Wüstemeyer (Contact Author)

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
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Cambridge, MA 02139-4307
United States

Derek W. Bunn

London Business School ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom
0207 000 8000 (Phone)

Reinhard Madlener

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
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Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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