Applying the Sustainable Asset Valuation (SAVi) to the 9.5 GW Offshore Wind Farm, North Sea, The Netherlands

A SAVi analysis comparing a 9.5 GW offshore wind farm in the North Sea to a 9.5 GW coal plant finds that while coal appears more profitable under business-as-usual conditions, offshore wind is significantly more attractive when accounting for externalities and climate risks. Under a scenario including a 1.5°C temperature increase and a carbon tax of EUR 16.27/MWh, the coal plant's internal rate of return (IRR) drops to 0%, while the wind farm maintains an IRR of 16.61% and a lower levelized cost of electricity (EUR 65.22/MWh vs EUR 185.92/MWh for coal).

• A comparison between a planned 9.5 GW offshore wind farm in the North Sea and a coal plant of the same capacity shows that while coal is more profitable under a Business-as-Usual (BAU) scenario, offshore wind becomes more financially attractive when externalities and climate risks are integrated. In the BAU scenario, coal has a lower levelized cost of electricity (LCOE) of EUR 46.08/MWh compared to EUR 72.93/MWh for wind, and a higher internal rate of return (IRR) of 23.43% compared to 14.39% for wind.
• When correcting for positive and negative externalities, the LCOE for the offshore wind project decreases to EUR 65.22 per MWh, while the LCOE for coal increases to EUR 171.08 per MWh. Under this 'SAVi+' scenario, the IRR for wind increases to 16.61% and coal decreases to 3.89%.
• The inclusion of physical and transitional climate risks further degrades the financial performance of coal. A temperature increase of 1.5°C decreases coal plant energy efficiency, and a carbon tax of EUR 16.27/MWh negatively affects its performance. In the scenario combining both risks and externalities, the coal plant's IRR falls to 0% and its minimum debt service coverage ratio (DSCR) drops to 0.16x, whereas the offshore wind project maintains an IRR of 16.61% and a DSCR of 1.58x.
• The SAVi analysis estimates that the offshore wind project will create 2,780 full-time equivalent jobs. Additionally, the life cycle CO2 emissions for offshore wind are calculated at 19.6 million tonnes, which is significantly lower than the 1,661.5 million tonnes for coal and 745.1 million tonnes for gas.

APA

Bassi, A. M., Pallaske, G., Uzsoki, D., Perera, O., & Casier, L. (n.d.). Applying the Sustainable Asset Valuation (SAVi) to the 9.5 GW Offshore Wind Farm, North Sea, The Netherlands. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/savi-wind-farm-netherlands-brochure.pdf

Chicago

Bassi, Andrea M., Georg Pallaske, David Uzsoki, Oshani Perera, and Liesbeth Casier. Applying the Sustainable Asset Valuation (SAVi) to the 9.5 GW Offshore Wind Farm, North Sea, The Netherlands. International Institute for Sustainable Development, n.d. https://www.iisd.org/system/files/publications/savi-wind-farm-netherlands-brochure.pdf.

Wikipedia

{{cite report |last1=Bassi |first1=Andrea M. |last2=Pallaske |first2=Georg |last3=Uzsoki |first3=David |last4=Perera |first4=Oshani |last5=Casier |first5=Liesbeth |title=Applying the Sustainable Asset Valuation (SAVi) to the 9.5 GW Offshore Wind Farm, North Sea, The Netherlands |publisher=International Institute for Sustainable Development |url=https://www.iisd.org/system/files/publications/savi-wind-farm-netherlands-brochure.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassindapplying, author = {Bassi, Andrea M. and Pallaske, Georg and Uzsoki, David and Perera, Oshani and Casier, Liesbeth}, title = {{Applying the Sustainable Asset Valuation (SAVi) to the 9.5 GW Offshore Wind Farm, North Sea, The Netherlands}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/savi-wind-farm-netherlands-brochure.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }