Enhancing Tender and Supply Contract Designs for a Robust Offshore Wind Industry
Improving the coordination between government, offshore wind farm developers, and wind turbine manufacturers in the North Sea
B. Noyan (TU Delft - Technology, Policy and Management)
K. Bruninx – Mentor (TU Delft - Energy and Industry)
A. Correljé – Mentor (TU Delft - Economics of Technology and Innovation)
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Abstract
Offshore wind energy plays a key role in the renewable energy transition but faces significant obstacles due to increased project costs and complexities associated with supply chain bottlenecks. These challenges are compounded by inadequate tender and contract designs, which fail to effectively address macroeconomic challenges and supply chain constraints. Ensuring proper allocation of benefits, costs, and risks among key stakeholders is essential for mitigating these issues and achieving successful project development. This study employs an institutional analysis followed by a stylized quantitative model to represent the bargaining dynamics between developers and turbine suppliers. The research systematically examines key transactions and interactions among stakeholders—governments, developers, and turbine manufacturers. It evaluates how these entities manage financial risks and benefits and analyzes the adequacy of current tender frameworks in mature offshore wind markets, including the Netherlands, Denmark, Germany, and the United Kingdom. Through this analysis, the study proposes five key recommendations: linking tender roadmaps to decarbonization targets, aligning non-price and price criteria across markets, extending construction timelines and supporting design flexibility, prioritizing advanced-stage projects and balancing incentives, and shifting from financial offers to government equity participation. These recommendations aim to create a more robust framework for offshore wind development. Future research should include comparative analyses of tender mechanisms across various global markets to account for regional differences. Additionally, examining vertical integration within the offshore wind value chain—such as the acquisition of partners or infrastructure development by developers—could offer valuable insights into reducing coordination challenges. Incorporating a broader range of supply chain partners into the research will further enhance understanding of industry dynamics and inform more effective practices.