This section reviews the literature on risk assessment and presents the proposed measures, and proposed method.
2.2. Offshore Wind Farm Risk Assessment
Assessing the risks in order to mitigate a failure during a project development requires intensive attention on the many attributes which have been studied in separate studies. At present, there are not many studies working on risk-based attributes holistically. For instance, Shafiee [
1] believed that developing OWFs feasibility risks should be considered in mitigating the risks to avoid the negative consequences and to increase production and lower the cost. Virtanen et al. [
28] indicated that environment risks are critical to consider due to the natural impacts from the operation and maintenance. Wu et al. [
16] studied the economic risks in OWFs from the micro-economic risks in terms of investment in the early phases of development. Nevertheless, in addition to these three risks, studies argued that OWF development is restricted by safety risks in relation to the navigation and safety of human resources [
20,
29]. Therefore, this study attempts to assess the risks of OWFs from perspectives of feasibility risks, environment risks, economic risks, and safety risks. Specifically, feasibility risks include public acceptance and societal impact. Environment risks are described by the impact on the marine environment and marine life. Economic risks refer to government subsidies and economic impacts. Human safety involves navigation safety and human safety. However, these risks were studied separately, thus lacking a holistic understanding.
The feasibility risks involve risks of acceptance or resistance by stakeholders including by the public and societal impact. Prior studies have indicated that feasibility risks should not be limited to regulations or policy and financial feasibility, but acceptance from the public or residents living nearby the OWF sites needs to be taken into consideration [
12,
30]. Billing et al. [
17] measured public acceptance by incorporating public opinion, response, trust, and preference. Gatzert and Kosub [
2] claimed that the risks involve potentially adverse changes in public acceptance or resistance, which result in acceptance or resistance to construction changes in policy schemes. However, Dalton et al. [
9] argued that little is known about the potential societal impacts of wind farms on people who have historically used the places where the wind farms are proposed. There are a few studies that addressed the risks from the external perspective of the firm, such as the consequences on local employment that is affected by the change of the environmental condition due to the OWF’s construction [
31,
32]. Lo et al. [
19] asserted that the impact on the local fishery industry and employment must not be neglected.
Studies have addressed the environmental risks from the perspective of natural occurrences and technical damages due to severe weather or environmental conditions [
12,
16], such as a case of a serious salt spray corrosion affecting the technical durability and technical damages from external forces. However, Leung and Yang [
33] emphasized the importance of taking the environmental risks due to the OWF operations into consideration and suggested not narrowing the risks to the impact on the firm’s operation and maintenance, but rather the other way around. Though prior studies have focused on the marine environment risks from the perspective of marine life and nature displacement [
4,
29], Virtanen et al. [
28] suggested the risks should also involve the people living in the immediate surroundings of the OWF sites.
Prior studies have exploited the economic risks as a strategy to reduce costs that are potentially caused by operational failures and maintenance [
2,
13]. Shafiee and Dinmohammadi [
34] placed the attention on the economic risk assessment by considering the economic dependence, such as power production losses and logistics and transportation costs, which indicated an expandable exploration and suggested that the economic risks should be incorporated with other aspects. Wu et al. [
16] assessed the micro-economic risks by focusing on the costly initial investment in the construction technology and professional equipment procurement. However, studies argued that economic risks should also incorporate the government subsidies to complement the technical feasibility in developing OWFs [
14,
19].
Safety risks concern the safety of the human resources working on site and the grid connection equipment connecting the wind farms to the electricity grid. Degradation breakdowns result in high maintenance or replacement costs and major power loss, while natural disasters pose catastrophic safety risks to employees and equipment. As a result, according to Shafiee [
1], reducing the likelihood as well as the amount of potential risk events during system operation becomes crucial. Moreover, many OWFs, particularly those that are connected to the grid in series, require a high level of safety. Any failure in one of the units in a serial power grid leads the entire system to fail. The safety risks are also linked to the navigation safety from passing vessels which is crucial and must be considered [
20,
30]. However, there are few studies that include the criteria concerning the safety of the external stakeholders such as the ship crews or passengers and residents [
8,
29].
In sum, the investigation of risk assessment is based on the perspectives of feasibility, the environment, the economy, and safety risks. This study includes these risks within a framework in the hope of obtaining a holistic understanding to address the aforementioned lack in the literature.
2.3. Proposed Measures
This section consists of the aspects and criteria for OWF risk assessment. There are a total of eight aspects and thirty-two criteria. The aspects include public acceptance, societal impact, impact on marine environment, impact on marine life, government subsidy, economic impact, navigation safety, and human safety.
Public acceptance denotes a risk in establishing and maintaining a relationship between a local community and a development organization. In exchange for their approval or support of the organization or activity, the community holds the development organization to particular standards. The rise of public trust in an organization, the public opinion of an activity, public preference to ownership of the organization, and the public response to the action all contribute to public acceptance [
5,
17]. Studies have highlighted that the importance of considering public acceptance brings an effective impact on lowering the risks, especially during the initial development of a project [
5,
30]. However, there are no definite findings on public acceptance in the case of offshore installations, which is greatly reliant on the location of the offshore wind farm. In addition, Dalton et al. [
9] argued that little is known about the possible consequences of wind farms on people who have traditionally utilized the places where wind farms are proposed, and just a few studies have incorporated their perspectives and preferences. Thus, public acceptance is considered and assumed to have a driving effect toward eliminating the OWF development risks.
Societal impact refers to a risk in failing to meet human needs and stabilizing social order through policies resulting in significant socioeconomic benefits such as employment opportunities [
10,
19]. Unless paired with the right policies, the risk is difficult to lower. Zhang et al. [
8] suggested that positive impacts on society that potentially lower the OWF development risk come in the form of reward and compensation targeted to the affected community, including the people whose economy relies on the fishing industry within the OWF’s development area. However, despite this potential, a further exploration should be conducted, as society often expresses disappointment through protest during OWF development due to unmet compensation [
18]. Furthermore, the issue of overlapping traditional fishing grounds and OWF locations has triggered a problem in the form of breaching the fishermen’s rights and affecting the local economic stability. Lo et al. [
19] claimed that central government and local authorities have a role in promoting OWF development with relevant regulations and policies, which potentially result in lowering the risk in relation to harming the fishing industry. Therefore, this study includes societal impacts and describes this aspect with the risks to local employment, local fishing industry, change of income for fishermen, and policy planning.
Impact of OWFs on marine environment refers to possible risks on the immediate surrounding area where the OWFs are proposed to be developed. Snyder and Kaiser [
13] argued that there are positive and negative risks of OWFs on the environment where the negative impact is found within the local area, and the positive impact is global and focused on replacing other forms of electricity generation. The negative risks have been associated with destructive consequences on the natural surrounding environment, usually caused not only by the operating activities, but also the construction phases of OWFs [
29,
33]. For example, the risks involve oil spillage, chemical substance discharge, and climate change. In addition, the impact on the marine environment may potentially carry a risk that affects the residents in the form of noise and visual impacts [
4,
33]. However, these studies argued that the impact on the environment seems minor compared to fossil fuel usage. Nevertheless, the impacts on nature and humans should not be overlooked due to the potential development in the future.
Impact on marine life is focused on the risks carried by the OWF development on the marine creatures and habitat near the construction site [
9,
19]. Prior studies have investigated the impact and pointed out that some creatures such as marine mammals are sensitive to pile-driving pulses at a considerable distance caused during the OWFs’ construction and operation; yet, further exploration is needed as a result of increasing development and construction [
4,
33]. Zhang et al. [
8] pointed out that a correlated consequence of the impact on the marine life displacement is with the fishery dynamics and the change in diversity, which effectively leads to an economic aspect on the fishing industry. Therefore, this study assumes that the impact on marine life is an important aspect of risk to be considered toward successful OWF development. The risks of impact on marine life are described with underwater noise impact on marine life, wildlife displacement, sound vibration underwater, and pile-driving during construction.
The government subsidy brings an economic risk in terms of getting an offer of subsidy on capital cost by adopting a feed-in-tariff to promote the OWF development in the forms of Net Present Value, Internal Rate of Return, and Payback Period. Tuyet and Chou [
14] described that these economic criteria are based on government subsidies and levies, capital costs, actual generated power, maintenance costs, costs incurred during hurricanes, and other significant characteristics including market electricity pricing and time value of money. The most important criterion in evaluating these economic criteria is cash flow. The cost–benefit relationship of offshore wind systems is used to calculate cash flow. The risk of this subsidy may affect the interest from investors placing investment. The existing capital cost subsidy is insufficiently enticing to investors, and the current feed-in-tariff subsidy is applied similarly to all areas of Taiwan, independent of their unique conditions. Nevertheless, although the majority of studies demonstrate that offshore wind energy is technically possible [
34,
35], there is a lack of economic viability with government subsidies.
Economic impact is explained with risks related to cost including cost investment, cost-to-benefit ratio, cost of operating and maintenance, and failure cost [
19,
34]. Prior studies claimed that the risks of high cost can be tackled by sharing the platform for other purposes. For instance, Legorburu et al. [
35] proposed a sharing platform for OWFs which results in several benefits including economic savings in the shared infrastructure, operation and maintenance costs, and risks. The economic impact from developing OWFs tends to be deemed lower in cost where studies have made a comparison with other energy sources [
10,
19]. However, Xue et al. [
20] indicated that the selection and installation of wind turbines, as well as the building of auxiliary electrical equipment, will inevitably return to the issue of economic feasibility over the course of a wind farm’s whole life cycle. This indicates that the economic risks in terms of costs need to be explored in relation to other influencing aspects.
Navigation safety is focused on the safety risks on the navigating vessels that might influence the installation and maintenance of the offshore wind turbines and the vessels themselves. Xue et al. [
20] argued that the problem as to whether different types of wind turbines adapt to the navigation environment of neighboring seas is also important to consider. Thus, studies have been paying close attention to the wind turbine choices for the wind farms. The navigation safety is measured with the turbine spacing, distance from fairway, turbine height and size, and number of turbines in a landscape [
20,
30,
36]. Díaz et al. [
37] compared and conducted an analysis of multicriteria to determine the potential OWF’s site selection features based on metocean, logistics and facilities, and management (proximity to nearest shore or coast, shipping lanes or fairway, proximity to habitats and subsea facilities) groups of criteria. In the area of OWFs, there are navigation safety issues that might result in collision incidents. Because of the OWFs’ installation position, the waves, wind, and current may be affected, which might cause navigation vessels to drift and lose control [
29,
38]. Dalton et al. [
9] pointed out that navigational risks should not be neglected in the literature as the effects might relate to not only the safety but also other aspects such as the changes in catch availability of targeted organisms. Therefore, this study assumes that navigational safety needs to be included and further explored in relation to other aspects.
Human safety is risked by any damage due to collisions; these not only result in destroying the wind turbine and vessel’s structure, causing pollution to the environment, but also lead to serious injuries or fatalities. Prior studies have presented the hazards associated to the health and safety of humans, such as safety of maintenance crews, safety of ship crews or passengers, and safety during construction [
2,
29]. However, there are shortcomings in the literature regarding the human safety in OWFs which are indicated by a lack of adequate assessment model of measures involving their safety.
In sum, the risk assessment is measured in a framework by risk-related aspects including public acceptance, societal impact, impact on marine environment, impact on marine life, government subsidy, economic impact, navigation safety, and human safety, as shown in
Appendix A.
2.4. Proposed Method
Prior studies have used either a quantitative or qualitative method, or a combination of both, to suggest risk assessment attributes for the OWFs’ development. Legorburu et al. [
35] studied the potential aspects based on technological development options, environmental benefits, and market and legal framework using Geographic Information Systems followed with statistical tools. Banach et al. [
39] reviewed the literature to identify the effects of OWFs on seaweed cultivation and used in-depth interviews and workshops with the experts to address the public and private standards for feed production. Dalton et al. [
9] combined a choice experiment survey and focus groups of recreational boaters to figure out the recreational boaters’ preferences for boating trips in relation to OWFs. Cronin et al. [
5] conducted a survey using hard-copy questionnaires circulated around the targeted locations for most relevant responses to obtain public perception of OWFs. Billing et al. [
17] used mixed methods of qualitative and quantitative approaches by using quantitative data from survey questionnaires and qualitative data from a workshop in order to obtain community perceptions of multi-use OWFs installations.
Moreover, multi-criteria decision-making methods have been used in some studies. For instance, Lo et al. [
19] adopted grey DEMATEL to overcome the uncertainty of the evaluation environment and to map the interdependency among the criteria, and applied grey DANP to calculate the weight based on the influence level from the DEMATEL results. Xue et al. [
20] explored the attributes using a fuzzy Bayesian network-based multiple-attribute decision making model. However, these proposed methods have not addressed the attributes’ validity and interrelationships. Thus, this study integrated the FDM and FDEMATEL to construct a valid set of risk assessment attributes and assess the attributes’ interrelationships for fostering the OWFs’ development. Chen et al. [
40] claimed that the FDM is an effective approach based on experts’ judgement for validating the attributes through an elimination process. Tseng et al. [
41] suggested that FDEMATEL is effective in visualizing the attributes’ interrelationships, and it calculates the power of each influence. Therefore, the integration of these methods is appropriate to address the study’s objectives.