Weekly Intelligence Brief: April 19 - 26

This week's WindEnergyUpdate news brief includes: REpower; Spanish and Portugese wind study: US offshore wind RFI; EWEA; GE & Iberwind; Siemens & E.ON; PNE Wind; Skykon & Lindoe Shipyard; Sepura & Alpha Ventus.

 

REpower signs inaugural Turkish deal

German turbine maker, REpower Systems, has signed its first contract in Turkey, with Al Yel Elektrik, a subsidiary of Akuo Energy SAS.

REpower will supply 44 wind turbines each with a power of 3.37 MW and a hub height of 80 metres, for the Geycek wind farm in Kirsehir province East of Ankara. The turbines are to be delivered in summer 2011 and will be commissioned in coming months.

REpower is to provide a 12-year service and maintenance contract for the turbines.

With 44 turbines and a total generating capacity of 148.28 MW, Geycek is REpower’s biggest wind farm in Europe to date. Moreover, it is also the largest project so far to be fitted with turbines of the 3.XM series. The contract is subject to conditions precedent, the company said.

REpower intends to capitalise on opportunities in the Turkish market, where turbines with a generating capacity of almost 1,000 MW are already operational.

Turkey’s market allure was recently enhanced by the Turkish Government’s decision to revise existing procedures for granting licenses and the remuneration system for renewable energies in 2010.

 

Europe's most laborious applications processes

Spain and Portugal rank among the slowest countries in the EU when it comes to getting consent to build wind farms. Italy, Belgium and the U.K., on the other hand, boast the swiftest planning application processes, according to a report by the EU-funded project, Wind Barriers, coordinated by the European Wind Energy Association (EWEA).

The report said that, on average, it takes 42 months to get a building consent for a wind farm in the EU, with the time invested in onshore wind farm planning applications ranging from less than 10 months to well over 50.

Countries with the swiftest planning application processes include Finland, with just over eight months required for permission to build a wind farm, followed by Austria (10 months), Romania (15 months), and Italy (18 months).

Meanwhile, Portugal puts developers' patience to the test, with more than 58 months required, on average, to get permits.

The EWEA suggests a number of factors that might explain the disparity in processing times, including the high number of officials that developers must liaise with, and a lack of clear administrative guidelines for developers. In Greece, for example, a developer must contact 41 officials on average, per application.

However, the report found little correlation between the length of time it takes to get permission and the number of authorities that must be contacted. For example, Spanish developers need only contact nine authorities on average, yet their waiting time for consent is among the longest in Europe.

The report also noted that the experience in the offshore sector is more positive, with the average time for the green light being 18 months - much shorter than for onshore applications.

 

Offshore wind RFI issued in the US

The U.S. Department of the Interior has issued the initial Request for Interest (RFI) for renewable energy development off the coast of Delaware, the First State.

The area covered in the RFI is in federal waters between the shipping routes for Delaware Bay. The closest point to shore is about 7.5 miles due east from Rehoboth Beach, Delaware.

The geographic extent was selected through consultation with the Delaware Outer Continental Shelf Renewable Energy Task Force, an intergovernmental coordination group led by Interior’s Minerals Management Service (MMS).

Task Force members include federal agencies, tribal governments and state and local agencies that have a role in permitting, reviewing or regulating resources or activities that are involved in energy development on the Outer Continental Shelf.

For their part, Delaware officials have approved a proposal by Bluewater Wind Delaware for the construction of a new power plant to sell up to 200 MW of power from an offshore wind farm to the state’s largest utility, Delmarva.

Bluewater Wind Delaware is still required to apply to the Minerals Management Service for an offshore lease, which may entail competing with other companies if competitive interest exists.

The Minerals Management Service will use industry responses to gauge specific interest in the commercial development of wind resources off the state’s shores.

 

Wind energy decreases power costs

A study conducted by independent consultancy, Poyry AS, titled 'Wind Energy and Electricity Prices', has found that wind power reduces electricity prices and CO2 emissions.

Bringing together findings from case studies in Belgium, Denmark, and Germany, the report focuses on the effect of wind energy on the electricity price in the power market.  

Adding wind into the power mix has a significant influence on the resulting price of electricity, the so-called merit order effect (MOE), finds the report. An increased penetration of wind power reduces wholesale spot prices.  

The study revealed that electrical energy prices dropped 3- 23 €/MWh based on the wind energy amount, with instances of zero spot prices in the studies reviewed, part of which could be attributed to wind generation.

The report discusses the MOE of increased wind power in terms of the technology replaced by wind and its position in the merit order curve. During periods of low demand, the technology that sets the price in the wholesale market is usually hard coal in the countries reviewed. Wind replaces hard coal power plants during hours of low demand and gas fired power plants during hours of high demand in all these countries.

The report also discusses the potential of wind power to replace part of the base load in the respective countries or regions. It has been underlined that wind power could replace a portion of the base load if there is a greater integration of wind producing areas such as Denmark, Germany and the Benelux into one power market.

Additionally, if both the direct and indirect cost savings from renewable energy generation were taken into consideration, the net effect of the renewable electricity standard support scheme would be negative; that is, the consumers would pay lower prices.


Wind to generate 50% of EU electricity by 2050

Wind energy is expected to meet 50% of the EU’s electricity demand in 2050, especially with the G8 and EU already committed to an 80% greenhouse gas reduction by 2050, says the EWEA .

Wind energy is already a mainstream power source in Europe, with an average annual growth rate of almost 23% in the past 10 years.

“2050 might seem like a long way off, but the decisions we take today will have a big impact on our energy supplies in 40 years’ time,” said Arthouros Zervos, President of the European Wind Energy Association (EWEA).

However, Zervos stressed that the focus of the transformation should be on a renewable energy economy, not a low-carbon one, noting that renewable energies can fulfil 100% of Europe’s electricity demand by 2050 “without any further contribution from any so-called low-carbon technologies.”

Christian Kjaer, EWEA’s chief executive, explained that Europe must interconnect its electricity networks if the European electricity market is to truly integrate. According to Kjaer, wind can provide 50% of power supplies by 2050 if the necessary changes to infrastructure and markets are made.

He further stated that that 24 years after establishing free movement of goods, services, capital and labour, it is surprising that the EU has not yet established a fifth freedom: free movement of electricity.


GE signs wind farm O&M deal with Iberwind

Following a complete service agreement that began in 2005, GE and wind energy developer Iberwind Group have signed a 10-year operational and maintenance (O&M) services agreement to cover two Iberwind wind farms in Portugal.

Iberwind’s Lomba Da Seixa II wind farm in Montalegre and Senhora Da Vitoria wind farm in Nazaré will continue to receive expert operational and maintenance support and related technology and engineering expertise from GE.

In addition, GE will deliver parts to support the corrective maintenance activities through a parts management program contract (PMP).

GE will also provide available upgrades, developed to increase the reliability, availability and performance of the existing fleet.

Each site features eight of GE’s 1.5-MW wind turbines and have a total generation capacity of 24 MW.

 

Siemens, E.ON strengthen ties

German industrial conglomerate Siemens has received an order from energy group E.ON to supply 87 wind turbines for the Papalote Creek II wind power plant in San Patricio County, Texas. 

Delivery of the turbines is expected to begin in May 2010 and the wind farm is to be commissioned in the fall of 2010. The facility has a total installed rated capacity of more than 200MW.

The Siemens scope of supply for the Papalote Creek II wind power plant includes delivery and transportation of the 87 SWT-2.3-101 wind turbines with a rated capacity of 2.3 MW each. 

Siemens also will provide service and maintenance for two years.

E.ON and Siemens have partnered on several U.S. wind projects in the past. Siemens supplied 54 2.3-MW units for E.ON’s Forest Creek wind farm near Big Spring, Texas in 2006 and 55 2.3-MW wind turbines for the Champion wind farm in Nolan County, Texas, in 2007.

 

PNE Wind selects financial advisor for Gode Wind II

Cuxhaven-based PNE has engaged Energy Bankers à Paris (EBAP) as its financial advisor for its offshore wind project Gode Wind II.

Situated in the North Sea at about 33 kilometers off Norderney island, the project involves the construction of up to 80 offshore wind turbines.

PNE Wind, which develops and implements onshore and offshore wind farm projects, is working with wind turbine manufacturer Vestas for the technical development of Gode Wind II.

The EBAP team, directed by Jérôme Guillet, will support PNE in the acquisition of the debt component of project financing by commercial banks and public financial institutions.

The offshore wind farm was approved by the Bundesamt für Seeschifffahrt und Hydrographie (BSH, Federal Maritime and Hydrographic Agency) in 2009.

Construction of the farm is scheduled for 2011-2012. 

 

Skykon acquires facilities at Lindoe Shipyard

Denmark-based offshore equipment manufacturer, Skykon, has entered the offshore wind turbine market.

The company has acquired facilities of 100,000 square metres at Lindoe Shipyard, the most advanced former shipyard in Europe, for the purpose of developing an offshore product offer to offshore wind projects located close to the North Sea and the Baltic Sea.

These facilities have direct access to sea by means of an on-site harbour capable of accommodating vessels in draught of 7.5 metres.

Moreover, the company says it is the only supplier in the market in possession of a 1,000 tonne Gantry crane that enables direct loading of products on customer vessels. Superior indoor 160t and 700t crane capacity is also available to ensure handling of the very heavy and large elements required for offshore wind turbines, it said.


Sepura to supply TETRA radios to Alpha Ventus

Cambridge-headquartered Sepura has won a contract to supply TETRA radios to Alpha Ventus, the first offshore wind farm in Germany.

The radios will operate on the advanced digital communication system supplied by 3T Communications AG from Germany.

Sepura will supply STP hand-portable and SRG mobile radios for use offshore and on land and to maintain communications with the helicopters.  Sepura SRG mobile radios will also be installed on ships servicing the wind farm.

The wind farm is located 45 kilometres north of the island of Borkum, Germany, in water approximately 30 metres deep.

Alpha Ventus’ 12 wind turbines and offshore transformer station make up the first wind farm to be erected at sea under genuine off-shore conditions. EWE TEL (Oldenburg) built the phone and digital communication technology for the entire wind park and selected 3T Communications AG and Sepura for the digital radio system.

The new digital radio solution covers the offshore platform, the 12 wind turbines and the operations centre in Norden. It will enable GPS localisation and will also be used for communications with helicopters. This is the first major project by EWE TEL, to see the deployment of TETRA technology.