Economic Viability of Floating Offshore Wind in Portugal with Varying Market Conditions and Financial Support Mechanisms

Abstract. This study assesses the economic viability of commercial scale floating offshore wind farms in Portugal, under a range of CfD mechanisms. A techno-economic model was created to create synthetic range of time series wind and spot price data that creates financial revenue under varying CfD types, water depths, and distances to shore. Results are split into levelized cost of energy, net present value, and internal rate of return and are influenced by a range of sensitivity analyses that help define the financial setting for successful floating offshore wind projects, including CfD mechanisms varying in type, value and duration. Results show promise for the development of floating offshore wind but only under strong financial support and are heavily influenced by site, wind regime and economic conditions.