While a signed power purchase agreement (PPA) with one or more utilities is a "must have" for a project developer to finance an offshore wind project in development, the challenges for offshore wind extend far beyond a financeable PPA. A significant part of the financing cost of a project is based on the perception of financial risk and project uncertainties. High project risk has contributed to high discount rates for financing offshore wind projects and justifiably, a cautious investment climate. Project risk can be broken down into the uncertainty surrounding regulatory and permitting issues (e.g., delays), the risks associated with construction and installation, and the operational risks that are associated with accurate energy production and long-term reliability. Risk and uncertainty may dissipate as the offshore wind industry matures, but today the process remains immature. Continue reading. >