Offshore wind farms offer slim profits barely above costs, making them unattractive investments for developers.

Question

Scottish nationalists, beware: offshore wind farms aren't cash cows. Profits are barely above costs, so developers might see them as bad investments.

Answer 1

Wind farms are not cash cows?

Fact-checked? False.

According to Lumify Energy, the ROI on a wind farm isn't an exact science, as it depends on the initial investment and number of turbines you have. But according to Octopus Energy, the ROI can be around 7.5-8% at the ready-to-build stage. Once the turbines are fully operational and the initial investment is paid back, this can increase. It is worth noting that there's a lot of literature online about this topic -- some backed by those tied to oil interests -- so there's differing views on whether wind turbines are profitable. Overall, it appears that wind farms can be considered as "cash cows" given that phrase is defined as a business, product, or asset that, once acquired and paid off, will produce consistent cash flows over its lifespan.

https://lumifyenergy.com/blog/are-wind-farms-worth-it/#:~:text=The%20ROI%20on%20a%20wind,paid%20back%2C%20this%20can%20increase.

https://www.investopedia.com/terms/c/cashcow.asp

https://windexchange.energy.gov/projects/economics

https://www.adamsbrowncpa.com/blog/the-next-potential-cash-stream-blowing-through-arkansas/

https://www.woodmac.com/news/opinion/wind-industry-faces-a-perfect-storm-of-profit-pressures/

https://todayshomeowner.com/eco-friendly/guides/how-long-does-it-take-a-wind-turbine-to-pay-for-itself/

https://weatherguardwind.com/how-much-does-wind-turbine-cost-worth-it/