EU countries to build common offshore electricity grid

Ministers from 10 European countries bordering the North Sea have agreed the construction of a new offshore electricity grid.

The governments of the UK, Ireland, Belgium, Denmark, France, Germany, Luxembourg, the Netherlands, Norway and Sweden and the European Commission in Brussels have signed a Memorandum of Understanding,  to create a new offshore grid and to tear down unnecessary and costly barriers to electricity trade between EU Member States.

EU governments have agreed to cooperate on identifying and eliminating barriers to cross-border electricity trade. Ministers also agreed to simplify complex and lengthy authorisation procedures, which today hinder the planning and construction of a transnational offshore grid.

As per the political declaration on the North Seas Countries Offshore Grid Initiative, the plan is to build on existing collaborative initiatives in the Pentalateral member countries, to use the results of research (such as EWIS, Tradewind, Windspeed, Offshore Grid and ISLES) and to be informed by other multilateral initiatives, in particular the Kriegers Flak project in the Baltic Sea.

Furthermore, the result of this work will provide joint input from the North Seas countries to the planned European Commission’s Communication on a Blueprint for a North Sea offshore grid.

Deepwater proposes largest offshore wind farm in the US

Deepwater Wind has applied to federal authorities to build the largest proposed offshore-wind farm in the U.S., a 200-turbine, 1,000-MW project off the coast of Rhode Island that would provide power to multiple states along the East Coast.

The project called Deepwater Wind Energy Center, replaces a 350-MW, 100-turbine proposal that was put forward by the company two years ago. The wind farm would cost an estimated $4.5 billion to $5 billion.

Under the new plan, Deepwater would also build an undersea transmission network that would stretch from Massachusetts to New York and connect to multiple states to which the company could sell its power. The transmission system an additional $500 million to $1 billion.

The wind turbines, according to the company, would rise about 525 feet above the water but would be at least 18 miles from mainland Rhode Island.

Deepwater submitted an application in October to the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), an arm of the U.S. Department of the Interior, to lease a 270-square-mile area between Rhode Island and Massachusetts that is the subject of a development agreement between the two states.

The company hopes to begin construction in 2014 and have the first turbines in operation by the end of 2015, reported the AP.

The project will require state and federal approval, and the company is just at the beginning of the federal review process.

UK timetable for 2013 RO Banding Review brought forward

U.K.’s energy minister Charles Hendry has decided that the government will put forward large-scale renewable energy support plans beyond 2013 a year sooner than previously planned.

Hendry shared that that the timetable for the 2013 Renewables Obligation (RO) Banding Review is being speeded up.

From as early as mid-July 2011, the wind industry will be given an indication of the support they will receive for new large-scale projects that begin generating renewable electricity from April 2013.

The original timetable set out in the RO Banding Review Process indicated that the Government would launch a statutory consultation on new banding proposals in Spring 2012 and announce its decision on banding levels by Autumn 2012.

DECC now intends to consult on new banding proposals in Summer 2011 and will confirm the new bands by Autumn 2011, one full year ahead of schedule. The new bands will still come into effect as planned on 1 April 2013 (1 April 2014 for offshore wind), subject to Parliamentary and State Aids approval, according to the Department of Energy and Climate Change (DECC).

The current review started in October this year. Arup and Ernst & Young were appointed to review the market costs and the potential of eligible renewable electricity technologies to provide economic and technical evidence to underpin the revision of the RO bands. The report of this first phase of work is due to be delivered to DECC at the end of February 2011.

Bligh Bank construction kicks off

The first turbine has been successfully installed on the Belwind Phase 1 Offshore Windfarm project, off the coast of Belgium.

Referring to the development, Danish giant Vestas shared that the company has now opened a record three offshore wind farms in one year. This is the third wind farm that Vestas has commissioned in 2010 after Robin Rigg and Thanet. Vestas has completed installation of 645MW in one year.

The first V90 Vestas turbine was installed on the Belwind Phase 1 Offshore Windfarm project after the installation platform JB114 departed from Zeebrugge, Belgium.

The Belwind Phase 1 Offshore Windfarm comprises 55 turbines, each capable of producing a maximum expected power output of 3 MW. The turbine is equipped with three blades with a length of 45 metres each which will be mounted to the nacelle located on top of the tower with a height of approximately 73m from sea level. Completion of the installation of 55 turbines is expected at the end of September 2010.

Belwind is Van Oord's second EPC contract for Offshore Wind Projects and the company is responsible for engineering, procurement and construction of the farm.

Van Oord has also completed the Princess Amalia wind farm project off the coast of IJmuiden, the Netherlands.

Study highlights potential of offshore wind industry in Ontario

The development of Ontario’s offshore wind industry would lead to a cumulative total of around Ca$10 billion in real capital investment and operations spending over the 2013 to 2026 period, according to a Conference Board of Canada report assessing the potential contribution of offshore wind generation to the province's electricity supply, employment, and economic activity.

Moreover, the emergence of such an industry would add between $4.8 and $5.5 billion to Ontario’s economy during the 2013-2026 period,

The report, titled 'Employment and Economic Impacts of Ontario's Future Offshore Wind Power Industry', was financed by Danish wind company Vestas and quantifies the combined direct, indirect, and induced economic effects on economic indicators, such as real gross domestic product (GDP), employment, income, and government revenues.

The report further says that the annual employment creation in this period would be 3,900 to 4,400 during the construction phase. Besides, it would also produce peak employment of 600 permanent positions in the operations and maintenance of offshore wind turbines. These outcomes are based on reaching 2,000 MW of generation capacity over 15 years, a conservative estimate of the market potential for an Ontario offshore wind industry.

The potential offshore wind projects would contribute 1014 MW of that growth in renewable capacity by 2018, plus an additional 986 MW in the longer term.

The contributions to GDP identified in the study are based on the share of local procurement, which is required to be a minimum of 50% under the FIT programme. In the base case scenario of 55% being sourced locally, $4.8 billion is added to the Ontario economy; under a scenario where 63% of inputs come from local procurement, $5.5 billion in real GDP is generated.

In its analysis, the Conference Board assumes that seven projects in Ontario would add 2,000 MW of offshore wind capacity by 2026 (which is 5.7% of the total current generating capacity in Ontario of 35,000 MW). This would comprise about 20% the renewable energy target announced in the Ontario government’s recently announced Long Term Energy Plan; the plan calls for renewable capacity from wind, solar and bioenergy to rise from 1,657 MW this year to 10,700 MW in 2018.

The report also noted that there are currently no offshore wind farms in operation or under construction in North America. Two major Ontario projects - both in Lake Ontario near Kingston - are progressing toward implementation, which together would add 714 MW of capacity.

IFC provides financing for China WindPower

The International Finance Corporation (IFC), a member of the World Bank Group, has raised US$150 million for China WindPower Group. The deal marks China’s first wind-power deal financed entirely through international bank syndication.

IFC has organised a debt facility of US$140 million for the project, including a US$45 million loan for its own account earlier this year and US$95 million in syndicated loans from Intesa Sanpaolo ($35 million), Societe Generale ($35 million), and Rabobank ($25 million).

China WindPower said it would use the financing from IFC to build its first wholly owned wind farm in Gansu with an installed capacity of 201MW.

Besides the loan, IFC also made a US$10 million equity investment in China WindPower to help it expand overseas business, which will start with India and Africa.

Michigan to strengthen its position in wind manufacturing

Michigan’s second-largest electric and natural gas utility Consumers Energy has signed a power purchase agreement (PPA) with Heritage Sustainable Energy.

The pact will result in the first large-scale production of utility-scale wind turbines fully made in Michigan.

The pact is going to lead to the first large-scale production of utility-scale wind turbines fully assembled in Michigan, according to state’s Governor Jennifer M. Granholm.

The agreement was formally announced last week, together with wind turbine manufacturer Northern Power Systems and key supplier Merrill Technologies Group.

Northern Power Systems will build the direct drive wind turbines in its Saginaw, Michigan facility where it will employ up to 137 workers by 2014. The company also plans to use substantial supply chain resources in Michigan, including strategic supplier Merrill Technologies Group.

The turbines will be shipped to Heritage Sustainable Energy's wind farm located in the Upper Peninsula's Garden Peninsula where 80 direct and indirect jobs will be created to support the project development, installation, and operation phases. Heritage Sustainable Energy will then sell the power it generates to Consumers Energy. 

The Michigan Public Service Commission approved the Power Purchase Agreement for Consumers Energy Company and Heritage Garden Wind Farm on November 19, 2010, and on the same date approved another Power Purchase Agreement between Consumers Energy and Heritage Sustainable Energy for another Michigan wind farm. 

The Power Purchase Agreement contracts are for 28.6MW and 12.3 MW, respectively. Heritage Garden will be constructed in Delta County; Heritage Stoney Corners II will be constructed in Missaukee and Osceola counties. 

AWEA calls for extension of 1603 investment tax credit

America’s wind energy industry could lose a significant number of jobs if the 1603 investment tax credit for renewable energy is not continued, says the American Wind Energy Association (AWEA).

Without an extension of the 1603 programme, the national trade association of America’s wind industry expects to see the layoffs or failures to call back tens of thousands of Americans who will remain on the unemployment rolls.

Currently, the 1603 investment tax credit for renewable energy hangs in the balance as Congress and the White House work to settle a tax package. The potential extension of the programme allows solar, wind and other renewable companies to receive cash grants in lieu of tax credits. 

According to the Association, the 1603 tax investment credit saved 55,000 jobs in wind energy, as estimated by Lawrence Berkeley National Laboratory. Overall employment has reached 85,000 in the American wind industry, as installed capacity has grown 40% in each of the past two years.