Companies working in the offshore wind industry needs to learn how to deal with taking on a greater share of project risk as longer contract horizons becoming the norm, according to A2Sea.
The Danish company said that changes in the industry, such as Contract for Difference auctions, means companies are now tendering for projects five years ahead rather than about two years in the past.
As a result companies are being asked to take over a greater proportion of the risk profile for offshore wind projects and assume responsibility for project cost or time overruns.
“With the new, longer horizons, we have to be very careful to consider the many possible risk scenarios that could have a significant impact on our business,” the company said.
“We’re effectively making decisions that will apply five years ahead, so of course, we want those decisions to be right all of the time,” it added.
Image: A2Sea’s Sea Installer (A2Sea)
A2Sea takes longer view
More risks with tendering for projects five years ahead says Danish outfit
By EBS