Global Offshore Wind Energy Targets at Risk

The International Marine Contractors Association (IMCA) has published an update to its contracting principles in the marine renewable energy industry. This major piece of work has been essential due to progressively poor market conditions created by unrealistic expectations of the capital costs and risks of developing offshore wind energy. The new publication IMCA Renewables Contracting Principles (IMCA LCIC 014) reviews in detail the contractual challenges faced by industry.

IMCA’s CEO Allen Leatt explained the challenges “Marine contracting in offshore renewables has become increasingly unsustainable, which in turn places the long-term sustainability of the offshore wind energy industry at risk. This situation can only be reversed with a fairer allocation of risks and the shared alignment of project goals between government, investors, developers, and the supply chain.

“An allocation of risk that recognises the reality of offshore construction and reflects the need to encourage the development of increasingly technologically advanced project solutions. Greater flexibility and fairness is needed by allocating the risk to the Party who created it, or is best placed to manage it, and take responsibility for it.”