Economic feasibility of floating offshore solar farms. The case of study of the Levantine-Balearic region of Spain

This paper examines the economic feasibility of offshore floating solar farms by evaluating key financial parameters, including capital expenditure (CAPEX), operating expenditure (OPEX) and offshore solar power generation. These factors are used to calculate the levelized cost of energy (LCOE), net present value (NPV) and internal rate of return (IRR). The study focuses on the Levantine-Balearic region of Spain, applying these methods to the Merganser floating offshore solar platform. To improve accuracy, several spatial and regulatory constraints were taken into account, such as bathymetry (50–200 m), Spanish Maritime Land Management (POEM), fishing grounds, power and telecommunication cables, marine protected areas, Natura 2000 Network, biosphere reserves and priority areas for biodiversity and national defence. The results highlight the importance of incorporating spatial constraints when assessing the economic viability of marine solar farms. The analysis identifies six high potential areas (i.e., four in the Levantine region and two in the Balearic region), where floating solar farms show the greatest viability. These data provide valuable guidance to investors and policy makers to optimize site selection and investment strategies. • LCOE, NPV, and IRR were used to assess the offshore solar farm economic feasibility. • Economic viability considerably declines when spatial restrictions are considered. • LCOE increased from 275.95 €/MWh to 321.83 €/MWh when considering restrictions. • Six viable offshore solar zones were identified in the Levantine-Balearic area.