Divergent Patterns in Wind Power Project Cost Overruns: How Scale Matters and Determinants of Construction Risk.
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| Title: | Divergent Patterns in Wind Power Project Cost Overruns: How Scale Matters and Determinants of Construction Risk. |
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| Authors: | Ryu, Hanee1 (AUTHOR), Sovacool, Benjamin K.1,2,3,4 (AUTHOR) sovacool@bu.edu |
| Source: | Wind Energy. Dec2025, Vol. 28 Issue 12, p1-9. 9p. |
| Subjects: | Cost overruns, Offshore structures, Wind power plants, Project management, Economies of scale, Wind power |
| Abstract: | This study analyzes cost overruns in 80 wind power projects, focusing on the impact of configuration types and their interaction effects with other project characteristics. Using multiple regression analyses, including interaction terms and segmented regression, we investigate four key aspects of cost overruns in wind power projects. First, we examine the interaction effects between configuration and other variables, revealing that offshore projects experience greater cost overruns with increases in scale and over time. Second, we identify contrasting patterns between configurations: onshore projects demonstrate technology learning effects, while offshore projects show diseconomies of scale in cost overrun. Third, we discover a critical threshold at 288 MW where cost overrun patterns significantly change, with projects below this scale showing a strong positive correlation with cost overruns. Finally, we analyze technical determinants specific to offshore projects, finding that hub height and distance from shore significantly influence cost overruns. These findings provide crucial insights for project planning and risk management in wind power, particularly highlighting the distinct challenges and characteristics of offshore projects. [ABSTRACT FROM AUTHOR] |
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| Database: | Engineering Source |
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| Abstract: | This study analyzes cost overruns in 80 wind power projects, focusing on the impact of configuration types and their interaction effects with other project characteristics. Using multiple regression analyses, including interaction terms and segmented regression, we investigate four key aspects of cost overruns in wind power projects. First, we examine the interaction effects between configuration and other variables, revealing that offshore projects experience greater cost overruns with increases in scale and over time. Second, we identify contrasting patterns between configurations: onshore projects demonstrate technology learning effects, while offshore projects show diseconomies of scale in cost overrun. Third, we discover a critical threshold at 288 MW where cost overrun patterns significantly change, with projects below this scale showing a strong positive correlation with cost overruns. Finally, we analyze technical determinants specific to offshore projects, finding that hub height and distance from shore significantly influence cost overruns. These findings provide crucial insights for project planning and risk management in wind power, particularly highlighting the distinct challenges and characteristics of offshore projects. [ABSTRACT FROM AUTHOR] |
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| ISSN: | 10954244 |
| DOI: | 10.1002/we.70053 |
