Annisa Putri Purwanti, Mochammad Fathurridho Hermanto, Nafisa Nandalianadhira
This investigation examines the life-cycle cost LCC framework for offshore wind farms under the particular constraints characteristic of emerging markets, with a focus on Southeast Asia. By integrating technical design parameters, tropical climatic conditions, and financial variables, this work identifies the principal determinant of project viability. The synthesis emphasizes how techno-economic constraints intersect with regional grid conditions in offshore wind market development, addressing an identified gap in the literature. Centered on Southeast Asia, it draws on evidence from Indonesia, Malaysia, and comparable tropical contexts to inform policy and investment decisions. Empirical analysis indicates that initial capital expenditure CapEx accounts for about 67% to 85% of the total cost structure in the contexts studied. Accordingly, the results suggest that financial de-risking measures and lower interest rates exert a more substantial impact on reducing the Levelized Cost of Energy LCOE. This work questions the global push toward mega-turbines in low-wind tropical settings, arguing that their substantial infrastructure demands can undermine economic efficiency. It instead advocates turbine configurations optimized for a higher rotor-to-generator ratio and installation approaches that maximize efficiency within limited weather windows. While larger rotors incur higher transport and logistics burdens in developing markets, a life-cycle cost assessment indicates that these costs are offset by gains in energy yield and higher capacity factors when deployment is carefully planned. The results suggest that in developing economies, technical advances must be complemented by robust financial policies to achieve cost competitiveness, placing greater emphasis on financial optimization alongside technological improvements. © 2026 by the author(s).
Ocean Engineering Department, Institut Teknologi Sumatera, Lampung, 35365, Indonesia