The DONG-Siemens offshore wind collaboration, a long-term relationship that began in 1991 and has involved over 930 turbines used across more than 13 windfarm projects, is a model of sustainable and long-term supply chain organization for strategic partnerships in offshore wind. The way the relationship has played out  leverages economies of scale of the WTG, and takes advantage of reductions in cost over time due to learning curve effects, without sacrificing commercial independence. Many companies in the industry are seeking the optimal form of interaction with customer and suppliers of key components and services (preferred supplier, partnership, direct investment, etc. – my book “Optimal Supply Chain Management in Oil, Gas & Power Generation” provides a roadmap for building industry partnerships, which articulates and classifies different levels of partnerships). The mode of commercial organization that DONG and Siemens have created provides a model for many other players to study and emulate.
