Our thesis is primarily based upon secondary data which is then analyzed in several
theoretical frameworks that is interlinked in an overall analysis to give answer to our research question.
The choice of our analytical approach, has been due to the characteristics of our thesis, which is that the stated problem is wide and includes several perspectives, and there exists no single framework that would answer our research question in a satisfactory way. Therefore, several frameworks were needed in order to reach a conclusion that takes all of our perspectives into consideration.
In order to find which of the wind power development alternatives that is optimal for Norwegian companies to focus on. We believe that looking at the strengths, weaknesses, opportunities and threats for each alternative will give a thorough picture as to which
approach that is not only optimal now, but that will continue to be the preferred alternative in the future. The process of looking at the Strengths, Weaknesses, Opportunities and Threats is done by using the SWOT framework.
Our analysis is thereby based upon the development of a SWOT analysis for each wind power segment and corresponding project. In order to develop the SWOT analysis in a structured way, we needed two frameworks to base our SWOT analysis on. We decided to use the PESTEL analysis to get a general overview of the factors that are relevant for the Norwegian wind power industry, and to use a life-cycle stage analysis to more specifically identify differences in the strengths , weaknesses, opportunities and threats for the different wind power segments. In addition, we have included a LCOE analysis to supplement our SWOT analysis, as this will make the economic differences between the wind power segments easier to identify.
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The PESTEL analysis, the life-cycle stage analysis and the LCOE analysis will be conducted once each and will account for all the wind power segments. The SWOT analysis will be conducted three times, one time for each wind power alternative.
The choice of our frameworks is based upon similar work conducted by Pieter-Jan
Vandenbrande. In his thesis, the PESTEL analysis were used to analyze the macro external environment for California, in order to identify the appropriateness of developing an offshore wind power market. In the same thesis, the PESTEL analysis were used to develop the
opportunities and threats in a SWOT analysis51. Our thesis on the other hand, will also include strengths and weaknesses, and constitutes a full SWOT analysis.
The SWOT analysis has been conducted in a vast variety of fields, and has been especially used in combination with a PESTEL analysis, where the overall findings of the PESTEL analysis has been the basis of identifying the opportunities and threats in the SWOT analysis.
The SWOT analysis is primarily used within strategic planning, and the subject of analysis is typically an organization. However, the SWOT analysis can be used for any subject, as long as it fits the goals of the analysis52
A SWOT analysis makes a comparison between the various projects clearer and more understandable. We therefore find it suitable to conduct these analytical frameworks in our thesis. Our SWOT analysis will not only consists of the characteristics of the specific wind power segment (Onshore, offshore floating, offshore fixed), but will also include the inherent characteristics of the specific projects that operates within these segments (Fosen wind, Hywind, Dogger bank), as our focus is on Norwegian businesses that operates in these segments.
The report about the life-cycle stages of a wind farm53 identified critical tasks in the different stages an onshore wind farm goes through from project initiative to project end. Our argument is that this framework can be used for an offshore wind farm as well, in addition, the division of the analysis is naturally segregated in logical sections based upon the different stages a wind farm goes through. The life-cycle stage analysis also considers that the projects we analyze are in different stages.
51 Vandenbrande,P.J (2017) Opportunities and challenges for a floating offshore wind market in California http://kth.diva-portal.org/smash/get/diva2:1111166/FULLTEXT01.pdf
52 CItoolkit (N.A) Swot Analysis. Retrieved (2020, 03. April) from https://citoolkit.com/articles/swot-analysis/
53 IWEA (2019, March) Life-cycle of an Onshore Wind Farm. Retrieved from https://www.iwea.com/images/files/iwea-onshore-wind-farm-report.pdf
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By using the life-cycle stage framework of identifying the critical tasks in each stage, it makes us able to better identify the Strengths, Weaknesses, Opportunities and Threats for the
different wind power segments, and together with the PESTEL analysis, it will enable us to complete our SWOT analysis.
Figure 1; Relationship between the analyses.
As a summing up, the PESTEL and the Life-Cycle Stage analysis will help us to identify the Strengths, Weaknesses, Opportunities and Threats in the SWOT analysis for each wind power segment, and corresponding project. It is from the SWOT analysis that we will primarily draw our conclusion.
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Our conclusion will be divided into three perspectives: economic, environmental, and social.
Figure 2; The three pillars of sustainability.
The reason behind choosing these perspectives are that they form the three dimensions of sustainable development54. We will try to reach a conclusion as to whether onshore wind, offshore bottom fixed wind or offshore floating wind is the most optimal for Norwegian companies regarding these perspectives.
The economic perspective is with focus on which wind power segment that has the most cost-effective solutions and corresponding LCOE.
The environmental perspective is with focus on the potential damages that each wind power segment causes on the nature, scenery and wildlife surrounding the wind farm.
Lastly, the social perspective is regarding what the contribution will be in terms of health and quality of life.
Each of these perspectives will have their own conclusion followed by an overall conclusion based on all three collectively at the end.
54 United Nations (N.A) Social Development for Sustainable Development. Retrieved (2020, 28. April) from https://www.un.org/development/desa/dspd/2030agenda-sdgs.html
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