The London Array: A Milestone in Offshore Wind

In July 2013, the British Prime Minister launched the London Array, which at the time was the world's largest offshore wind farm, costing $3 billion (2012 prices). Situated in the Thames Estuary, it consists of 175 turbines with a capacity of 630 MW, generating sufficient clean energy for 500,000 British homes.

The construction timeline was remarkable, beginning in March 2011, with electricity generation starting in October 2012 and all turbines operational by April 2013—just over two years from groundbreaking. This speed is exceptional when compared to conventional power plants, which often take significantly longer, even in harsh offshore conditions.

With advancements in technology, the installation of offshore turbines has greatly accelerated. Some companies now claim they can install turbines in a single day, and the size of turbines has increased three to fourfold since 2011. The industry has achieved the remarkable capability to complete an entire offshore wind farm in just one year.

The Transition to Rapid Installation

The London Array and similar projects took at least two years to complete, often facing delays during winter months. However, the 2018 Walney Wind Farm extension, off the West Coast of England, consisted of 87 turbines with a capacity of 659 MW and was constructed in less than a year, setting a new standard that reduces costs and risks in the industry.

This unprecedented speed in delivering multi-billion-dollar projects offers valuable lessons to other sectors. The modular construction approach used in wind energy can provide insights into how to enhance project efficiency and reduce timelines.

The Disruption of Fossil Fuels

In 2017, Ørsted, formerly known as DONG, made headlines by constructing two German wind farms without the need for subsidies. This pivotal moment marked the first instance where offshore wind energy was cheaper than fossil fuels, disrupting traditional electricity pricing and posing a threat to conventional energy sources.

The substantial cost reductions were the result of two decades of strategic efforts by the wind industry to standardize, modularize, and scale up turbine production. This shift allowed for the rapid installation of large wind farms—operating almost like LEGO sets—leading to unprecedented reductions in electricity generation costs.

In contrast, traditional energy projects such as coal, gas, hydro, and nuclear plants remain bespoke and often require years, if not decades, to complete. This lengthy process has rendered their costs uncompetitive and left traditional energy companies vulnerable to disruption.

The Move Towards Renewable Energy

After securing contracts for the two German wind farms, DONG decided to divest its oil and gas assets and rebranded itself as Ørsted, named after the Danish physicist Hans Christian Ørsted. The company embraced a new mission to create a world powered entirely by green energy.

Ørsted has positioned itself as a leader in the race to produce the most affordable and sustainable electricity while effectively addressing the climate crisis. As the transition from fossil fuels to renewable energy accelerates, wind and solar appear to be the frontrunners, leaving traditional energy sectors potentially facing billions in stranded assets.