November 09-16

This week's news round up includes: US Offshore Wind Collaborative, Cape Wind, RWE Innogy, Scottish and Southern Energy, GE, E.ON, Pavilion Energy Resources, First Wind, Lost Creek project, Siemens, British Wind Energy Association and the European Investment Bank.

US offshore wind industry at a crossroads, according to latest study

In its latest study, the US Offshore Wind Collaborative (USOWC) says greater cooperation is vital to the growth of the offshore wind industry.

Citing a US Department of Energy finding that the US has the potential to develop 900,000 MW of electricity from offshore wind resources, the study says collaboration among government entities, universities, businesses, and stakeholders in wind development is now needed.

Long-term success hinges on a number of political, technical, economic, financial, and environmental issues. A web-based information clearinghouse; meetings among states with common interests in offshore wind - as well as between the US and its European counterparts; and leadership to build public trust and investor confidence are necessary if offshore wind is to become part of the US’ energy and environmental solution. Finding viable solutions to these complex issues will require a far greater level of cross-sector engagement, stresses the report. 

The regulatory structure is evolving to adapt to renewable energies and related areas such as renewable energy standards, climate change policy, and comprehensive ocean management planning. However, the report notes that while this is positive, a changing regulatory and policy structure presents an additional challenge for the offshore wind industry.

 

Cape Wind pivotal to international climate negotiations

Congressman Ed Markey has urged the Secretary of the Interior Ken Salazar to complete a decision on the Cape Wind energy project before the international climate negotiations begin in Copenhagen, Denmark, in December. 

Approval before the start of the UN conference would send a strong message to international negotiators about the US’ commitment to developing sources of clean energy and reducing global warming pollution, said Rep. Markey, Chair of the Select Committee on Energy Independence and Global Warming and co-author of the Waxman-Markey climate and clean energy legislation.

The Interior Department has already completed its environmental review of the Cape Wind project.

 

RWE Innogy given green light for offshore wind project

Germany-based RWE Innogy has received final permission from the Holland’s Ministry of Transport and Hydraulic Engineering to build the offshore wind farm, Tromp.

The 300 MW farm will be built around 75 kilometres off the coast at Callantsoog in northern Holland. Construction of the wind farm, which will comprise a total of 59 wind turbines with a height of 150 metres, will begin from 2013-14.

RWE Innogy has been given the go-ahead to construct the offshore meteorological mast, which is the first step towards the realisation of the offshore wind farm. The mast will be located 85 kilometres off the coast of Ijmuiden, roughly 500 to 1,000 metres southwest of the planned wind farm, Tromp. The mast will deliver information on wind speed and patterns for the realisation of Tromp.

RWE Innogy is also involved in the Thornton Bank offshore wind farm in Belgium.

 

Scottish and Southern Energy’s investment plan underway

Scottish and Southern Energy is now 18 months into its five-year, £6.7 billion (€7.5bn, US$11.2bn) programme of investment for the period to March 2013.

During the six months leading to 30 September 2009, its capital and investment expenditure totalled £630.8 million (€705mn, US$1bn), compared with £699.2 million (€782mn, US$1.2bn) for the previous year.

The investment of £320.8 million (€358.6mn, US$535mn) in renewable generation includes Scottish and Southern Energy's (SSE) 50 percent share (£123.4m - €138mn, US$205.6mn) of the investment at Greater Gabbard offshore wind farm.

SSE says a number of investment opportunities loom beyond 2013, including offshore wind farms and nuclear power stations. The company says it expects to take these investment decisions within the next few years.

 

Mid-Atlantic governors sign MoU on tri-state partnership

The governors of Delaware, Maryland and Virginia have signed a memorandum of understanding to collaborate on the deployment of offshore wind energy in the mid-Atlantic coastal region.

Through the MoU, the Mid-Atlantic States will examine ways to coordinate regional supply chain facilities to secure supply, deployment, and operations and maintenance functions to support offshore wind energy facilities.

The objective is to provide benefits for each state individually by efficiently targeting areas of common interest to the region.  Moreover, this effort will facilitate regional engagement with federal entities such as the Minerals Management Service, the Federal Energy Regulatory Commission, and the Department of Defense.

 

GE, E.ON in US wind farm agreement

GE and E.ON Climate and Renewables (EC&R) North America have signed a seven-year operation and maintenance agreement for EC&R’s complete fleet of 529 GE wind turbines installed in the US.

The O&M deal, one of the largest wind services deals ever signed by GE, provides around the clock remote monitoring and diagnostics from GE Power & Water’s Schenectady, N.Y. based Renewable Operations Centre.

GE will also provide flow and capital parts support in addition to site services for all GE 1.5-megawatt (MW) wind turbines installed at the five EC&R project sites. The sites include the Pyron phase of Roscoe; Panther Creek I & II and Panther Creek III in Texas; Munnsville in New York; and Stony Creek in Pennsylvania. 

 

JV signed for Japanese offshore wind project

Pavilion Energy Resources has submitted a proposal to the Japanese government to develop a wind energy project in multiple locations adjacent to Japan’s coastline in the Sea of Japan, Sea of Okhotsk and Pacific Ocean.

The joint venture proposal, in which Pavilion Energy Resources is a 10 percent equity partner, calls for installing at least 25, 10,000 megawatt, wind farms over a 25-year period.

 

First Wind on track to complete Utah’s largest wind facility

North American wind power company First Wind has completed the first phase of its 203.5 MW Milford Wind Corridor project, the largest renewable energy facility in Utah. 

The project is located in Millard and Beaver County, Utah. Featuring a total of 97 wind turbines, the first phase of the project will power about 45,000 homes annually.

RMT, a Wisconsin-based engineering and construction company, led the construction of the project.

First Wind spent about US$85 million (€57mn, £51mn) on the project, on which the first phase of construction began nearly a year ago. So far, it has created more than 250 development and construction jobs.

First Wind directly spent about US$30 million (€20mn, £18mn) with Utah-based businesses developing and building the first phase of the project and another $56 million (€37.5mn, £33.6mn)on indirect expenditure.

 

GE to supply wind turbines for Lost Creek project

Wind Capital Group is developing Missouri’s largest wind project, Lost Creek.

GE is supplying and servicing 100 of its 1.5-MW units for the project in DeKalb County. The wind turbines will be delivered in 2009 and 2010 and GE will provide operation and maintenance services for the project for five years.

Power generated at Lost Creek will be sold under a 20-year power purchase agreement to Associated Electric Cooperative.

 

Siemens wins first ever contract in Mexico

Siemens Energy has been awarded an order for 70 wind turbines for the 160 MW Los Vergeles wind farm in Tamaulipas, Mexico by Grupo Soluciones en Energias Renovables (GSEER). 

This is the first order received by Siemens for wind turbines in the Latin America region and the order value exceeds US$270 million.

The Siemens scope of supply includes delivery, installation and commissioning of the 70 wind turbines with a rated capacity of 2.3 MW each.

In addition, Siemens will also execute its first five-year operation and maintenance agreement in the Americas for a wind project.

 

BWEA welcomes EIB funding in wind projects

The British Wind Energy Association (BWEA) has welcomed the European Investment Bank backed goverment plan to inject £1.4 billion (US$2.3bn, €1.5bn) in to the wind energy sector.  The EIB’s £700million (US$1.16bn, €782mn) in funding will be matched by three commercial banks involved.  

The funds are aimed specifically at wind farms with planning permission. Project financing has fallen from 2007 to 2009, despite an increase in investment in wind energy and there are 756MW of onshore farms in construction and 3056MW with consent in the UK.