Risk Management
Maximizing project´s Return on Investment
by Preventing Projects Delay, Cost Overrun and Revenue Losses
Tasks Performed by SanCo | Key Activities |
Risk Identification | Identify potential risks in technical, financial, regulatory, environmental, and operational areas. |
Risk Assessment & Analysis | Analyze risks based on likelihood and impact using quantitative and qualitative methods. |
Risk Mitigation Planning | Develop mitigation strategies, contingency plans, and transfer mechanisms for identified risks. |
Risk Monitoring & Control | Continuously monitor risk status and update risk management strategies as needed. |
Contractual Risk Allocation | Allocate risks through contracts, warranties, and liability clauses. |
HSE Risk Management | Address health, safety, and environmental risks during all project phases. |
Supply Chain & Logistics Risk Management | Mitigate risks related to supplier reliability, component delivery, and installation logistics. |
Technical Design Risk Management | Ensure the robustness of designs and technology choices to minimize technical failure risks. |
Financial Risk Management | Control costs, manage financing risks, and ensure long-term project revenue stability. |
Schedule Risk Management | Use scheduling tools to anticipate delays and track milestone delivery. |
Regulatory Risk Management | Manage permitting and regulatory risks through early engagement and compliance audits. |
Environmental & Social Risk Management | Address environmental and social risks through assessments and stakeholder consultation. |
Operational Risk Management | Develop maintenance and monitoring strategies to minimize operational risks during the farm's lifespan. |
Risk management in offshore wind projects is a critical process to ensure the successful delivery of the project within budget, on time, and with minimal unforeseen disruptions.
Preventing Projects Delay, Cost Overrun and Revenue Losses
KPI | Germany | UK |
Project Delay (beyond 1 year) | >30-40% of projects | >20-30% of projects |
Cost Overrun (>10%) | >25-35% of projects | >15-25% of projects |
Revenue Loss (>15%) | 20-30% of delayed projects | 10-20% of delayed projects |
CAPEX per MW Installed | €3-5 million per MW | £3-4.5 million per MW |
Availability Rate (Operational) | 90-93% (early stage); improving to 97%+ | 95-97% |
Revenue Loss per Day (due to delay) | €150,000 - €500,000/day | £200,000 - £600,000/day |
Energy Yield Achievement | 85-90% of expected yield (early stage) | 90-95% of expected yield |
SanCo addresses technical, financial, regulatory, environmental, and operational risks.
1.
Technical Design and Engineering Risk Management
Address risks related to the technical design and engineering of the project, ensuring the selected designs are fit for purpose and adaptable to real-world conditions.
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Design Validation: Conduct thorough reviews and validation of designs for foundations, turbines, electrical systems, and cable routes.
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Technology Readiness Level (TRL): Assess the maturity of the technology being used (e.g., next-gen turbines, floating foundations) to identify the risk of early failure or inefficiencies.
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Redundancy and Resilience: Build redundancy into the design of critical components (e.g., backup systems, robust foundation designs) to prevent single points of failure.
2.
Supply Chain and Logistics Risk Management
Manage risks related to the supply chain and logistics, which are critical in offshore wind projects due to the complexity of sourcing, transporting, and installing components.
- Supplier Prequalification: Vet and prequalify suppliers to ensure they have the capacity and reliability to deliver on time and to specifications
- Logistics Planning: Create detailed logistics plans, including the scheduling of vessels, cranes, and ports, to minimize delays in component delivery and installation.
- Vessel Availability: Ensure availability of specialized vessels (e.g., jack-up vessels for turbine installation, cable-laying vessels) and plan around potential weather-related downtime.
3.
Operational Risk Management
Address risks related to the operational phase of the offshore wind farm, ensuring that turbines and other components perform reliably over time.
- Maintenance Strategy: Develop a preventive maintenance strategy to reduce the risk of turbine downtime or failure during operations.
- Condition Monitoring Systems: Implement condition monitoring systems (CMS) to detect issues in turbines, foundations, or electrical systems early and reduce the need for costly repairs.
- Availability Guarantees: Use performance guarantees with contractors and suppliers to ensure high availability of turbines and minimize revenue losses due to downtime.
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