Economic viability of floating offshore wind in Portugal with varying market conditions and financial support mechanisms

This study assesses the economic viability of commercial-scale floating offshore wind farms in Portugal under a range of contract for difference (CfD) mechanisms. A techno-economic model simulated financial revenues using synthetic time wind and spot price data, under varying CfD mechanisms and metocean conditions for 36 sites off the Portuguese coastline. Results are split into levelized cost of energy, net present value, and internal rate of return and are influenced by a range of sensitivity analyses that help define the financial setting for successful floating offshore wind projects, including CfD mechanisms varying in type, value, and duration. Results indicate that floating offshore wind shows potential in Portugal, but only with strong financial support, with outcomes heavily influenced by site characteristics, wind regime, and economic conditions.