Cost-Benefit Analysis (CBA) of government support options for offshore wind energy evaluates the economic efficiency of policy instruments designed to promote investment. It compares the full costs of support—such as subsidies, tax incentives, feed-in tariffs, or contracts for difference—against system-wide benefits. Key benefits include increased renewable generation, reduced greenhouse gas emissions, improved energy security, technological learning, and job creation. The analysis distinguishes financial transfers from real economic costs, using shadow pricing where appropriate. It also assesses market impacts, including electricity price effects and integration costs. A long-term horizon is applied, with indicators such as Net Present Value, Economic Internal Rate of Return, and Benefit-Cost Ratio guiding decisions. Scenario and sensitivity analysis capture uncertainties in costs, wind output, and policy design. Preferred options are those that deliver the highest net social benefits at least cost.
