Weekly Intelligence Brief 12 July -19 July

Wind power lured $67bn in investment in 2009  

In 2009, for the second year in a row, both the US and Europe added more power capacity from renewable sources such as wind and solar than conventional sources, according to twin reports released by the United Nations Environment Programme and the Renewable Energy Policy Network for the 21st Century (REN21). 

According to the latest reports, UNEP’s Global Trends in Sustainable Energy Investment 2010, and the REN21 2010 Renewables Global Status Report, renewables accounted for 60% of newly installed capacity in Europe and more than 50% in the US last year.

This year or next, experts predict, the world as a whole will add more capacity to the electricity supply from renewable than non-renewable sources. 

Globally, nearly 80 GW of renewable power capacity was added in 2009. 

Investment in core clean energy (new renewables, biofuels and energy efficiency) decreased by 7% in 2009, to $162 billion.

Many sub-sectors declined significantly in money invested, including large (utility) scale solar power and biofuels.  

However, there was record investment in wind power.  

Wind was even more dominant as a destination for investment in 2009 than 2008.

In 2008, it accounted for $59 billion or 45% of all financial investment in sustainable energy; in 2009, it accounted for $67 billion and its share rose to 56%.

Wind power additions reached a record high of 38 GW, 13.8 GW of which was installed in China, 10 GW in the US, and 2.5 GW in Spain. 

Wind power existed in just a handful of countries in the 1990s, but now exists in over 82 countries. 

China’s stand out performance 

New private and public sector investments in core clean energy leapt 53% in China in 2009.

China added 37GW of renewable power capacity, more than any other country. 

China surpassed the US in 2009 as the country with the greatest investment in clean energy. 

China’s wind farm development was the strongest investment feature of the year by far, although there were other areas of strength worldwide in 2009, notably North Sea offshore wind investment and the financing of power storage and electric vehicle technology companies. 

Proserv Offshore bags Dong Energy contract 

Houston, Texas-based Proserv Offshore has signed a contract with Danish wind power generator Dong Energy to supply and operate its wind generator pile cleaning solution at Dong’s Walney 1 Windfarm, located in the Irish Sea. 

The specialised Marine Growth Removal (MGR) product was initially developed and manufactured by Proserv Offshore’s Aberdeen facility for a major installation contractor in the North Sea. 

Surface cleanliness of the pile is critical for effective grouting and all loose debris and marine growth needs to be removed quickly and effectively to prevent any costly grout removal after installation.

By using this tool, Dong Energy intends to ensure that it eliminates any uncertainty of the pile condition prior to the grouting process taking place.

The company also highlighted that it was looking at a solution which would require minimal human intervention and could also be adjustable for a range of different pile diameters. 

According to Proserv, a provider of subsea maintenance, abandonment and decommissioning services to the offshore energy industry, the solution is deployed from a support vessel and placed directly upon the open pile.

The surface of the pile is then cleaned by lowering a sub frame down the pile utilising high pressure water jets mounted on a track.

The jets rotate 360 degrees to clean 450mm paths around the pile to a depth of 8m.

The whole cleaning process is completed within 90 minutes whereas it may take a diving team 30 hours to achieve the same result. 

The Walney Offshore Windfarm project is located approximately 15km west of Barrow-in-Furness in Cumbria.

The project consists of Walney 1 and Walney 2 each with 51 - 3.6MW turbines, giving a total capacity of the Walney project of 367.2MW. 

In a related development, the first of the 51 turbines in the Walney 1 Offshore Wind Farm was installed last week.  

Currently, the foundations are being finalised for installation of the wind turbines and array cables. 

Maine, Nova Scotia sign MoU for offshore wind

Maine and the province of Nova Scotia have chosen to share information on renewable electricity with a focus on ocean tidal energy and offshore wind energy.  

A formal agreement, too, has been signed for this initiative. Maine Governor John E. Baldacci has signed a Memorandum of Understanding (MoU) with Nova Scotia Premier Darrell Dexter to work cooperatively on renewable ocean electricity generation.  

One of the objectives is to investigate opportunities and areas within which to cooperate on furthering off-shore wind technology.

Maine and Nova Scotia have decided to advance the research on development issues surrounding tidal energy and offshore wind production, including research on community acceptance and support, impacts on marine life and birds, contribution to grid stability and associated matters. 

Maine last month joined with nine US states and the US Department of Interior to establish The Atlantic Offshore Wind Energy Consortium to work to streamline the review and site process for offshore wind projects in federal waters. The nine other states are: New Hampshire, Massachusetts, Rhode Island, New York, New Jersey, Delaware, Maryland, Virginia and North Carolina. 

Maine has already identified three demonstration sites for offshore wind technology located in Maine coastal waters.

The University of Maine will be using a site off Monhegan Island for its testing. 

Siemens targets Russia, gets ready forJV

Siemens has signed a partnership agreement for cooperation in the renewable energy sector with the two Russian companies Rostechnologii and RusHydro. 

The three companies have decided to jointly set up a venture, in which Siemens will retain the majority stake. Exact details weren’t disclosed. 

The planned joint venture is to set up production facilities for wind turbine components for the Russian market and will also be responsible for sales and service of Siemens wind turbines in Russia and other countries.

As per the information available, components for the turbines will be produced at a factory in the Volgograd region, which will be opened next year, said Sergei Chemezov, head of state corporation Russian Technologies. 

According to René Umlauft, CEO of the Renewable Energy Division of Siemens, Russia is planning to have a wind power capacity of approximately 5000MW installed by 2020.

Russia recently launched an initiative recently to lift the country’s minuscule share of renewable energy to 4.5 % of total energy production in the next 10 years.

The plan foresees the installation of 5,000 MW in wind energy capacity, worth about €5bn, according to an Financial Times report. 

“In the coming five years, we intend to install wind turbines with a total capacity of 250MW to 500MW per year,” Umlauft said.  

Siemens has decided to bring three further factories for production of wind turbine components on line in the US and in China.

Other production facilities are planned for India and Great Britain.

A2SEA signs $139m contract

Installation services company A2SEA has signed a $139m contract for the construction of a new offshore wind installation vessel scheduled for delivery in the second half of 2012.

The order was placed with COSCO Shipyard Group, a subsidiary of China Ocean Shipping Company (COSCO), by Dong Energy’s A2SEA unit.  

The new vessel, The Sea Installer, will join A2SEA’s existing fleet of four jack-up vessels. 

The jack-up vessel will be designed to be able to carry eight to 10 wind turbines at a time to operate at water depths of up to 45 metres. 

Last month, it was reported that Siemens will become a shareholder in A2SEA through subscription of new shares.

Siemens will become a 49% minority shareholder in the company. Closing of this agreement is expected in Q4 2010. 

AWEA forms new offshore wind coalition

The American Wind Energy Association (AWEA) has formed a new coalition, the Offshore Wind Development Coalition (OffshoreWindDC).

OffshoreWindDC will focus on advocacy and education efforts to promote offshore wind energy. 

The new coalition, which will be based in Washington, DC, will be headed up by Jim Lanard, formerly managing director for Deepwater Wind. 

Founding members and contributors to the Offshore Wind Development Coalition, in addition to the AWEA, include Apex Wind, Cape Wind, Deepwater Wind, Fishermen’s Energy, NRG Bluewater Wind, OffshoreMW, and Seawind Renewable.  

OffshoreWindDC will both expand and sharpen the focus of the industry efforts already underway through AWEA.

For example, AWEA is currently working to secure long-term tax policy for offshore wind and shorten the permitting timeline for projects.

The effort will involve AWEA, offshore wind developers, and other stakeholders in states such as Maine, Massachusetts, Rhode Island, New York, New Jersey, Delaware, Maryland, Virginia, North Carolina, Michigan, Illinois and Ohio. 

Offshore wind projects totalling more than 5,000MW have been proposed and are in the planning or development stages in the U.S. The US Department of Energy estimates that of the 300,000 MW of wind power that could generate 20% of US electricity by 2030, 50,000 MW would likely be offshore.  

COSCO Qidong step ahead with windmill installation vessel 

Chinese company, COSCO Qidong Offshore Base, has commenced the keel laying of the second windmill installation vessel, N271. 

The N271 is the second windmill installation vessel to be built by COSCO Nantong Shipyard.

It is 136.40 metres long, 40.80 meters wide and 10.00 metres high. The vessel is equipped with DP dynamic positioning system, designed with six pile-boots and mainly used for installation and maintenance of offshore wind power equipment.  

It is essentially a jack-up platform and the pile-boot is the plug pin hydraulic lifting and descending device.

The most complicated and challenging part of the project is the construction of the pile-legs and pile-boots. 

AWEA files protest with FERC  

The American Wind Energy Association (AWEA) has filed a protest with the Federal Energy Regulatory Commission (FERC) regarding a proposal by Puget Sound Energy. 

The Association has suggested FERC to overturn a proposal by Puget Sound Energy that would “impose unfair and excessive grid integration charges on wind plants while failing to charge competing fossil and nuclear-powered power plants for the far larger integration costs they impose on the power system.” 

AWEA’s director of Federal Regulatory Affairs, Tom Vinson, said that Puget Sound Energy is singling out wind energy for this excessive integration charge, “while American consumers spend billions of dollars per year to pay for the massive amount of reserve generation that must be available 24/7 to keep the power grid reliable in case a large coal or nuclear plant suddenly experiences an outage.” 

“To add insult to injury, wind plants are currently forced to pay for these reserves as well, even though these reserves are only needed for large power plants,” Vinson said.  

Vinson also referred to flaws in Puget’s calculations as grossly inflating wind integration costs and proposed collection charges. 

According to the Association, the cost of integrating wind would be greatly reduced if Puget made cost-effective reforms that have been implemented in other regions, such as moving to faster generator dispatch intervals and better coordinating its operations with its neighbours.

"AWEA and the wind industry will fight against all attempts by utilities and competing energy suppliers to impose excessive and unfair charges."