Exploring the economic feasibility of offshore wind energy for sustainable development

Offshore wind farms play a crucial role in the transition to low-carbon energy systems, offering a scalable and renewable solution to meet growing energy demands. Technological advancements and innovation are key enablers in enhancing the performance, reliability, and cost-efficiency of such infrastructure. However, environmental protection objectives do not always align seamlessly with the deployment of offshore wind projects, underscoring the importance of robust economic evaluations to guide policy and investment decisions. This study investigates the economic feasibility of an offshore wind farm planned off the coast of central Italy, employing a comprehensive set of financial indicators. The findings indicate that the project is economically viable: the Net Present Value (NPV) ranges from 195 to 1324 €/kW, the Internal Rate of Return (IRR) lies between 9 % and 15 %, the Profitability Index (PI) spans 0.50–1.02, the Discounted Payback Time (DPBT) varies from 11 to 20 years, and the Levelized Cost of Electricity (LCOE) is between 125 and 138 €/MWh. Key variables such as the energy selling price, energy inflation rate, and capacity factor significantly affect the economic performance. Risk analysis shows that under favourable market conditions, the economic risk is low, while it becomes moderate in less favourable scenarios. By integrating technological and innovative dimensions into the economic assessment and exploring multiple market scenarios, this study offers a robust foundation for evidence-based decision-making. The development of offshore wind projects not only supports the achievement of Sustainable Development Goal 7 but also strengthens national energy independence and resilience.