Case Study | 25 August 2025
How Did the Energy & Natural Resources Company Handle Its Resource Feasibility Challenge?
Posted by : Ipseeta Dash
This case study explores how a top U.S.-based energy and natural resources company faced major setbacks after launching an offshore wind energy venture without proper resource feasibility analysis. Operational inefficiencies and rising losses threatened the project’s future. Looking for expert assistance, the company approached Research Nester. What followed was a strategic revision that refocused the business strategy and returned it to profitability.
An overview:
- The company was a popular player in the energy and natural resources sector, with a successful track record in solar power generation.
- To broaden its renewable energy portfolio, the company launched a new venture focused on offshore wind energy, but neglected key environmental and geographical feasibility parameters, leading to operational inefficiencies and project delays.
- Research Nester consultants were brought into action to evaluate the root causes of the failure and build a structured plan to realign the project.
The Story
A U.S.-based energy and natural resources company with a 25-year legacy in renewable energy had long been admired for its large-scale solar farms and integrated storage systems. With global conversations shifting towards climate neutrality and decarbonization, the company decided to invest in offshore wind energy, banking on its growing popularity and lucrative long-term returns.
The new venture was ambitious. The company allocated a major capital toward building a series of wind turbines along the Northeastern seaboard of the United States, focusing on regions with higher average wind speeds. However, despite the promise of abundant wind resources, the project ran into multiple complications within the very first 12 months.
Key issues began to arise, ranging from the high variability of offshore wind speeds, logistical challenges in installation, to environmental clearance hurdles. Although the site chosen for turbines showed strong wind potential statistically, its poor anchoring suitability led to ongoing maintenance expenses, structural instability, and setbacks in grid connectivity. The absence of a detailed resource feasibility study was the most critical flaw. Instead of conducting an in-depth geographic, environmental, and economic assessment, the company had moved forward based on generic macro-level wind maps and public enthusiasm for green energy.
Amidst growing stakeholder pressure, operational losses, and reputational risk on the horizon, the company’s leaders reached out to Research Nester for assistance in coming to a strategic resolution.
Our Solution:
Upon taking up the case, Research Nester consultants started a rigorous multi-phase diagnostic analysis of the offshore wind project. The assessment discovered that while the engineering and infrastructure investment was sound, the project lacked granular data-driven feasibility analysis before execution. As a result, the company had overestimated the net capacity factor and underestimated transmission losses, maintenance downtime, and seasonal wind inconsistencies.
The following intervention strategies were suggested and implemented in close association with the company’s energy division:
1. Detailed Resource Feasibility Analysis: The first step was to reassess wind patterns using LiDAR-based atmospheric scanning and floating met masts to collect precise wind data over six months. This helped to identify not just speed but turbulence intensity, wind shear, and air density, vital for efficient turbine performance.
2. Geotechnical and Oceanographic Survey: Research Nester started a full-scale bathymetric survey to analyze seabed integrity and sediment layers. This data provided clarity on where turbine foundations could be securely installed and which zones posed long-term structural risks. Additionally, marine traffic and ecosystem impact were tracked to ensure legal compliance and social acceptance.
3. Redesign of Site Strategy: Based on the data collected, the consultants recommended shifting turbine placement by 18 kilometers southward, where environmental stability, wind consistency, and seabed suitability aligned. Although this relocation incurred additional short-term costs, it promised long-term energy yield improvements and lower O&M costs.
4. Risk Mitigation Framework: To prepare the company for future uncertainties, Research Nester created a Risk Mitigation Framework that included:
- Real-time remote monitoring systems for turbine health.
- Predictive maintenance algorithms to avoid unscheduled downtimes.
- Seasonal modeling of wind patterns to adjust grid expectations dynamically.
5. Regulatory & Stakeholder Communication Strategy: Research Nester also helped the company navigate environmental regulations. They created ESG-compliant reports and arranged community outreach programs to address concerns from local fishing and marine conservation groups. This significantly improved public perception and streamlined interactions with regulatory bodies.
Results
The energy company's efforts to change and embrace data-driven decision-making marked a turning point in its offshore wind journey.
- In FY 2020, before associating with Research Nester, the project went through a net operating loss of USD 370 million, driven by unexpected repair costs, turbine relocation trials, and lower-than-expected energy output.
- By mid-2021, after implementing the revamped strategy, results started to show improvements. Wind energy production became stabilized, with turbine availability rising from 68% to 94%, and transmission efficiency reaching 97%, owing to optimized cabling and upgraded switchgear designs.
- By 2022, the project captured a net sale of USD 510 million, restoring its initial losses and posting a net margin of 8.7%, a first since the project's inception. More importantly, the company regained the confidence of its investors and local partners, with three new long-term PPAs (Power Purchase Agreements) signed with municipal utilities.
- The success of the revised offshore wind project also led to internal policy reform; now, no new venture is approved unless it passes a mandatory feasibility triage: Resource Viability, Regulatory Risk, and Cost-to-Yield Ratio.
The company’s decision to collaborate with Research Nester not only turned around a failing project but also embedded strategic foresight and operational resilience into their future growth models.
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