The present and future of offshore wind

Michael Stephenson, Associate Director of The Renewables Consulting Group spoke during Gard’s 2021 Lillehammer Energy Claims Conference (LECC), 9-11 March 2021. The Conference was established in 1996 and chaired ever since by Gard’s Jan-Hugo Marthinsen, Vice-President responsible for Offshore Energy Claims.

Since its modest beginning as a forum for informal discussions between leading energy insurers and their loss adjusters, the annual Lillehammer Energy Claims Conference has grown to encompass representatives from global oil & gas companies, claims brokers and certain specialist service providers.  This year was the first using an entirely digital platform.

“Energy Transition” was the first day’s theme. Joining Michael on the panel were Jarand Rystad (Rystad Energy), Marie Bysveen (SINTEF), Lamberto Eldering (Equinor), and Tim Fillingham (McGill & Partners). Michael represented the renewables voice on the panel and stood well his ground in the panel discussion. It was a pleasure to interview Michael about some of the topics he touched upon during the “Energy Transition” session.

Michael, congratulations, well presented during LECC. Would you share with our readers, in a nutshell, what is the “Story of the next decade in offshore wind” that you were talking about?

Thank you Monica. The story of the next decade in offshore wind is truly about growth. The previous decade has been about offshore wind industry establishing itself as a serious energy player, but we’re seeing now that in the next decade it will become a pillar of the future energy mix. I particularly highlighted the growth we expect to see in Asia, even outside of China – going from nearly zero to over 30 GW in 10 years – as well as how the oil and gas industry will take a role in this growth too.

For those unfamiliar with the term, GW stands for gigawatt – just one GW can provide electricity to about 300,000 household so you are really talking about significant energy generation. Can you explain the difference between Onshore and Offshore wind farms? And what is the difference between Fixed and Floating wind?

An offshore wind farm consists of a number of wind turbines installed out at sea, sometimes close to shore but increasingly far from shore, over 100 km from the nearest coastline. They are typically larger in scale than land-based wind farms (both number of turbines and the size of turbines themselves) and have the benefit of increased wind speeds at sea where there is less terrain or interference in the wind flow. Fixed offshore wind farms are secured to the seabed with foundations similar to those used in offshore oil and gas, typically large steel structures which are piled into the ground. Floating offshore wind farms are still secured to the seabed, however they are used in much deeper water where it would be unfeasible to place fixed foundations. Floating offshore wind farms use a buoyant platform secured to the seafloor with mooring lines and anchors, making them more dynamic than fixed offshore wind farms.

Are offshore wind farms really thought through from an environmental perspective?  I’ve just read, that 9 out of 10 birds would have voted for an offshore oil platform rather than an offshore wind farm.

Environmentally speaking, offshore wind farms are held to a rigorous standard for impacts to seabirds and other marine life. Here in the UK, they are subject to significant environmental assessment and a forensic examination of predicted impacts which can take many years, ensuring these impacts are kept to a minimum. Ultimately, in 10- or 20-years’ time when the effects of climate change on the environment continue to develop, offshore wind farms will be helping to mitigate this much greater threat to seabirds. Offshore wind will have a huge part to play in providing large scale, clean energy generation to prevent further global warming around the world.

I think it is worth mentioning that studies are showing that larger more efficient turbines reduce bird deaths by reducing the proportion of an at-risk area that is occupied by the blades. With larger turbines, the ratio goes down, thereby reducing bird deaths.

What is the current installed capacity by GW – and will offshore wind ever get a significant share of the energy mix?

The installed capacity is growing all the time. As of the end of 2020, there was 34 GW of offshore wind installed worldwide. We forecast that this will grow to over 200 GW by 2030, and by that time it will be one of the key pillars of the energy mix. It may never reach the same capacity as onshore wind or solar globally, but there will be countries-particularly with long coastlines relative to their land area- that could see the majority of their power supplied by offshore wind in the future.

With the quick development of offshore wind in areas suitable for fixed installation the industry will have to develop the technology to operate in more challenging deep waters. When do you expect floating wind to become commercial?

Yes, although floating wind may take a little longer to develop. At RCG, we expect to see the first full-scale commercial floating projects online before the end of this decade, with the 2030s likely to be the decade where floating wind truly booms and starts to compete on a cost basis with fixed bottom.

Which countries were the offshore wind pioneers and which countries are the current leaders?

Denmark and the UK stick out as the two main offshore wind pioneers. Denmark because they will always hold the record for installing the first offshore wind farm, Vindeby, back in 1991 as well as a strong track record since then including the largely state-owned Ørsted (previously DONG Energy) making one of the most ambitious pivots to green energy we’ve seen. The UK is the current leader for offshore wind installed capacity (at 10 GW), and has been the pioneer for commercial scale offshore wind. They have succeeded by making commercial offshore wind cost-competitive with fossil fuels.

We see that a number of Oil and Gas Majors are diversifying into renewables. In your view what is the role of traditional oil and gas companies in energy transition?

The oil and gas companies and their workforce have a tremendous amount to offer the offshore wind industry. Their experience in the marine environment, operating industrial assets and managing industrial scale engineering out at sea has been invaluable. There are roles throughout the supply chain for oil and gas companies, from developers and owners like Equinor and Shell, to engineering, installation, inspection, maintenance and in the future asset life extension. I also see floating wind as a major opportunity for oil and gas companies to diversify, with their experience in floating oil and gas platforms.

As discussed during the Conference there are several ways for oil and gas companies to reduce their carbon footprint, including investment in renewables. More than 25% of our premium in the Gard Energy portfolio, is connected with offshore wind which evidences our mission statement; “Together we enable sustainable maritime development”. Are renewables generally viewed these days as a positive business opportunity?

Absolutely- renewables including offshore wind has shown itself to be a bankable, investor-friendly asset class. With the growth of technologies like energy storage and hydrogen the whole energy system is undergoing a massive revolution. And renewables will be at the forefront. At RCG, we are solely focused on renewable energy and in that way, we are wholly endorsing the industry as an opportunity for growth and offshore wind as a sector of the future.

RCG was delighted to participate in this year’s Lillehammer Energy Claims Conference. 

This article first appeared on Gard’s website, 11 March 2020 (Link: ) and is reproduced with permission.

For more than 100 years, Gard has been insuring the global maritime industries for their whole range of risks. Its focus is entirely on the maritime industries. Today, it is the largest P&I Club and the second largest marine insurer in the world – employing 480 people in 13 global offices. Assuranceforeningen Gard was founded in 1907 in Arendal and was driven by owners of sailing ships’ reluctance to subsidise the liabilities arising from steam operations. In 2003, Gard Marine & Energy was formed to extend the products offered by the group.


Oslo, Norway – Building on the success of their close working relationship, The Renewables Consulting Group Ltd (RCG) and Æge Energy AS (Æge Energy) will now go to market as RCG Nordic, a world-class renewable energy advisory for the Nordic region.

RCG and Æge Energy had signed a memorandum of understanding establishing the business alliance in July.  The two firms have now inked a joint venture agreement.

Headquartered in Oslo, Norway, RCG Nordic provides integrated market intelligence, management consulting, and technical advisory services for the renewable energy sectors in Norway, Sweden, Denmark, Finland and Iceland – but with global scope and reach. Dan Pearson, RCG’s Chief Strategy Officer will chair RCG Nordic and Æge Energy’s Tor Inge Vevatne will serve as the joint venture’s General Manager.

The joint venture will focus its business development and operations on both onshore and offshore renewable energy sources. To support maritime and offshore energy clients, the firm will have a strong presence in Bergen.

RCG Nordic represents the combined capabilities of Æge Energy’s local presence and RCG’s renewable energy sector expertise and strong global industry relationships to bring tremendous value to clients within the region.

Dan Pearson, Chairman of RCG Nordic said,

“RCG Nordic will be a leader in renewable energy advisory in the region and presents significant opportunities to provide clients with an enhanced value proposition. The combined attributes of RCG and Æge Energy answer the growing demands of clients in the region to support complex renewable energy assignments.”

Tor Inge Vevatne, General Manager, RCG Nordic added,

“We look forward to growing the combined business, with a commitment to serving clients in the region and exceeding their expectations to deliver material results. The team has already secured substantial new engagements. Our mission is to be the number one renewables advisory firm in the Nordics.”

Caption: Tor Inge Vevatne, General Manager, RCG Nordic


Oslo, Norway – The Renewables Consulting Group Ltd (“RCG”) and Æge Energy AS (“Æge Energy”) today announced that they have signed a memorandum of understanding for a business alliance to deliver world-class renewable energy advisory services in the Nordic region.

As part of the strategic alliance, the two companies have committed to establishing a joint venture company to provide integrated market intelligence, management consulting, and technical advisory services for the renewable energy sector in Norway, Sweden, Denmark, Finland, and Iceland. The new joint venture will be called RCG Nordic.

Leon Notkevich, Managing Director, Æge Energy said.

“We are excited about joining forces with RCG and creating a joint venture which will be a powerhouse supporting our clients grow renewable energy in the Nordic region.”

He added, “Combining our extensive knowledge and experience in Norway, and the broader region, with RCG’s strength as a global leader in renewable energy advisory, creates a strategic platform for our businesses to work together and thrive.”

Alan Chivers, Chairman, RCG, commented:

“By aligning with Æge Energy, we believe the joint venture will be uniquely positioned to bring world-class consultancy to meet the growing demands of clients in the region for support on complex renewable energy assignments. We already have a track record working with Æge Energy, and its proven capabilities make it the right partner for this deeper alliance.”

Andrew Cole, RCG Managing Director – EMEA, added:

“RCG Nordic presents significant opportunities to provide clients with the enhanced value proposition that our new joint venture offers. Æge Energy’s electrical systems practice is highly complementary to RCG’s established European offering and dramatically expands RCG’s services in Scandinavia and beyond.”

The joint venture will focus its business development and operations on both onshore and offshore renewable energy sources. It will be headquartered in Oslo, Norway, with a strong presence in Bergen to support maritime and offshore energy clients.

RCG Nordic represents a combined capability greater than the sum of its parts. Together, Æge Energy’s local presence and RCG’s renewable energy sector expertise and strong global industry relationships will add tremendous value to the sector within the region.

RCG and Æge Energy expect to finalise the joint venture and begin operations over the next few months, subject to the agreement and completion of terms and conditions.