Weekly Intelligence Brief: February 01 - 08

This week’s WindEnergyUpdate news brief includes: Cape Wind & the MMS; EWEA; London Array, MPI & A2SEA; Siemens; AMSC; Scotland’s offshore wind manufacturing potential; Wind grant to North England; APS; GWEC; General Electric; and the UK’s small-scale FiTs.

 

MMS revises Cape Wind findings

The United State’s Minerals Management Service has made the Revised Finding document for the proposed Cape Wind Energy Project on the Outer Continental Shelf in Nantucket Sound available for public review and comment in the Federal Register.

The proposed Cape Wind project would place 130 turbines over 25 square miles in Nantucket Sound off the coast of Massachusetts. The project was proposed by Cape Wind in November 2001.

It recently emerged that, during final days of the Bush administration, the Interior Department may have rushed the completion of a positive environmental assessment of the Cape Wind project.

The department’s Acting Inspector General Mary Kendall said an investigation revealed that several agencies were concerned they did not have time to provide enough input on the environmental impact of the Cape Wind power project.

Although the Inspector General’s report found that the final Cape Wind EIS was not the subject of improper political influence, nor were any laws were broken during the process, Secretary of the Interior Ken Salazar is directing Deputy Secretary David J. Hayes to work with Interior Solicitor Hilary Tompkins to review the report and provide recommendations to him regarding those issues that are material to the Department’s upcoming Cape Wind decision.

In addition, Secretary Salazar is directing Deputy Secretary Hayes and Assistant Secretary Wilma Lewis to consider how the report’s findings might further strengthen the newly established framework for offshore renewable energy development, finalised in April 2009.

The MMS is currently accepting public comments on the historic preservation aspects of the Cape Wind Energy Project.

The comment period for the Revised Findings document closes February 12. The comments on the Revised Finding document will be reviewed and considered by the MMS as part of the ongoing National Historic Preservation Act Section 106 consultation process.

 

Wind accounted for 39% of all new capacity last year: EWEA

Accounting for 61percent of new electricity generating capacity in 2009, renewable energy made up the bulk of new power generation capacity added in the European Union (EU) last year, according to the latest report by European Wind Energy Association (EWEA).

Of the total, 39 percent of new capacity installed was wind power, amounting to an investment of €13 billion (£11.4nb; US$17.8bn) , including €1.5 billion (£1.3bn; US$2bn) offshore.

Wind’s share of newly installed capacity increased from 35 percent in 2008 to 39 percent in 2009.

In all, 10,163 MW of wind power capacity was installed across the EU – a 23 percent increase compared to 2008 installations. The total installed capacity comprised 9,581 MW onshore (up 21 percent from last year) and 582 MW offshore (up 56 percent from last year).

Wind power’s total capacity in the EU has now reached 74,767 MW, up from 64,719 MW by the end of 2008 with Germany remaining the EU country with the largest installed capacity, followed by Spain, Italy, France and the U.K.

The countries with the biggest share of new capacity installed in 2009 were Spain (24 percent - 2459 MW), followed by Germany (19 percent - 1917 MW), Italy (11 percent - 1114 MW), France (11 percent - 1088 MW) and the UK (10 percent - 1077 MW).

The wind capacity installed by the end of 2009 would, in a normal year, produce 163 TWh of electricity, meeting 4.8 percent of total EU power demand.

 

London Array enlists MPI and A2SEA

The London Array consortium has signed construction contracts as the project moves from the development phase into full construction.

MPI and A2SEA will supply marine crew and vessels for the installation of foundations and turbines for the London Array wind farm.

The two companies will service the first phase (630MW) of what potentially will be the world’s first 1GW offshore wind farm. London Array is owned by Dong Energy (50 percent), E.ON (30 percent) and Masdar (20 percent).

MPI will supply the MPI Adventure, a specialist turbine installation vessel currently being built in China, for transporting, lifting and installing wind turbines. The vessel is expected to be operational in April 2011.

A2SEA will supply the Sea Worker, a jack-up barge that is expected to be on site from March 2011.

London Array will be built in two phases around 20km off the coasts of Kent and Essex.

Phase One, planned to be complete in 2012, includes 175 turbines with a combined capacity of 630MW. If approved, the second phase will add enough capacity to bring the total to 1,000MW.

 

Siemens to invest US$355m in India

Engineering company Siemens is planning to invest US$355 million (€259mn; £226mn) over the next three years in India.

A major part of this will be invested to set footprints in the renewable energy market and to expand presence in “value priced products”.

A major portion of the investment would be directed at the domestic renewable energy sector, with the company investing US$111 million (€81mn; £71mn) for manufacturing of wind turbines for the Indian market.

The shipping of these turbines would begin in 2012. The company stated that it has identified potential sites in Tamil Nadu and Gujarat and is in discussions with the respective state governments for establishing the plant.

Siemens expects to eventually produce turbines to generate 500 MW of electricity, Armin Bruck, managing director of the company’s India unit reportedly said, without specifying a time frame.

 

AMSC bags order worth US$70m

American Superconductor Corp. has received a US$70 million (€51mn; £45mn) order from China’s Shenyang Blower Works Group (SBW) to supply the latter with full wind turbine electrical control systems.

The systems will be deployed in the 2MW doubly fed induction wind turbines that were co-developed with AMSC Windtec, a wholly owned subsidiary of AMSC.

AMSC expects to begin shipping the electrical control systems to SBW in the second half of calendar 2010 and complete shipments in the first half of 2013.

The wind turbine electrical control systems and core electrical components include AMSC’s proprietary PowerModule power converters, pitch and yaw converters and other power electronics.

This is the largest initial electrical control system order that AMSC has received to date from any wind turbine customer. SBW plans to erect its first 2 MW wind turbine in March this year.

 

Scotland identifies potential sites for offshore wind

Scotland has identified potential manufacturing sites that could establish the nation as a pivotal location for offshore wind turbine manufacturing and construction operations. 

The sites are listed in Scotland’s National Renewable Infrastructure Plan and include: Leith, Dundee, Nigg, Energy Park Fife at Methil, Hunterston, Aberdeen, Arnish, Campbeltown/Machrihanish, Ardesier, Kishorn and Peterhead.

Each of the five sites in the Highlands and Islands have significant natural and infrastructural assets. Renewables manufacturing is already underway at Nigg, Campbeltown and Arnish.

The initial five-year plan is led by Scottish Enterprise (SE) with support from Highlands and Islands Enterprise (HIE) and is the first phase of the development of the National Renewables Infrastructure Plan.

SE and HIE worked in partnership with the industry to develop the infrastructure plan, including ongoing engagement with port owners and operators, local authorities, energy companies and industry groups.

The Crown Estate’s U.K. offshore wind leases, many of which are off the coast of Scotland, will see around 7000 offshore turbines installed around the U.K. coast over the next 7-10 years.

It is estimated that total capital expenditure for offshore wind projects in Scottish territorial waters alone is around £15-18 billion (€17.1bn; US$23.5bn) in the next ten years.

 

North of England receives funding boost

The North of England is to receive £3 million (€3.4mn; US$4.7mn) in funding for 10 projects to improve the support for offshore wind farms.

The Northern Wind Innovation Programme (NWIP) has announced the names of companies participating in newly formed consortia for stimulating innovation and technological developments for the offshore wind industry in the North of England.

NWIP is a Collaborative Research and Development product as part of Solutions for Business, the government's package of publicly funded business support designed to help companies start and grow.

From almost 30 applications received, 10 consortia were made up of 38 british companies.

The consortia include:

  • Composite Metal Technology Ltd, the University of Durham, David Brown Gear Systems and Ricardo U.K.
  • David Brown Gear Systems and the University of Newcastle upon Tyne
  • Ricardo U.K., The University of Sheffield and Roballo Engineering
  • Romax Technology and the University of Sheffield
  • Siemens Transmission Distribution and the University of Manchester
  • Siemens Wind Power and The University of Sheffield
  • TWI, the University of Manchester, Monitor Coatings, McNulty Offshore, VattenFall Wind Power
  • TWI, RCID at Newcastle University, SEtech, Parsons Brinckerhoff, McNulty Offshore Construction, VattenFall Wind Power, Scottish Power U.K. plc and Clipperwind plc
  • TWI , University of Sheffield, CMR, SKM, James Walker, Applied Inspection  and Le Carbone (GB)
  • Xanthus Energy, Able U.K. and Ekspan


APS issues solar and wind RFPs

Arizona’s largest utility Arizona Public Service (APS) has announced two requests for proposals (RFP) for new sources of photovoltaic energy and wind. 

APS is seeking competitive proposals for 15MW to 100MW of wind energy, located within the State of Arizona, to meet a portion of the requirements outlined in the APS Revised 2010 Renewable Energy Standard Implementation Plan and the 2009 APS Rate Case Settlement.

Respondents are required to provide proposals for long-term power purchase and/or turn-key agreements. RFP submissions are due April 14, 2010.

Both RFPs are part of the recent Arizona Corporation Commission-approved, and broadly supported rate settlement agreement signed by Arizona Public Service Co. and 21 other parties.

 

China led global wind energy market in 2009

Wind power capacity grew by 31 percent in 2009, adding 37.5 GW to bring total installations up to 157.9 GW, according to the Global Wind Energy Council (GWEC).

A third of these additions were made in China, which experienced the fifth year running of over 100 percent growth.

China was the world’s largest market in 2009, nearly doubling its wind generation capacity from 12.1 GW in 2008 to 25.1 GW at the end of 2009 with new capacity additions of 13 GW.

The global wind market for turbine installations in 2009 was worth about US$63 billion (€46bn; £40.2bn).

The US wind energy market installed nearly 10 GW in 2009, increasing the country’s installed capacity by 39 percent and bringing the total installed, grid-connected capacity to 35 GW.

In 2009, 10.5 GW were installed in Europe, led by Spain (2.5GW) and Germany (1.9 GW).

Italy, France and the UK all added more than 1 GW of new wind capacity each.


GE calls for US energy and climate bill

Technology, media and financial services mogul, General Electric, has publicly cautioned that the continued absence of a long-term, supportive policy framework may jeopardize growth of the U.S. wind industry.

Victor Abate, vice president, renewable energy for GE Power & Water, said that the establishment of a federal renewable electricity standard (RES) with strong, near term goals, would provide the stability and support needed to encourage investors and drive growth in the U.S. wind industry.

He also urged Congress to heed President Obama’s call during the State of the Union address to pass a comprehensive energy and climate bill that could help create jobs and make America energy independent.

Abate made these comments during an event in the US, hosted by GE to officially dedicate a US$45 million (€33mn; £29mn) Renewable Energy Global Headquarters in Schenectady, New York.

The event also marked the installation of GE’s 13,500th wind turbine, globally.


U.K. introduces incentives for small-scale green power

The U.K. government has introduced incentives for small-scale green electricity generation and published its plans to encourage low-carbon heating technologies.

The U.K. plans to source 15 percent of its energy from renewable sources by 2020 from around 2 percent, today.

From April 1 2010, householders and communities that install low-carbon electricity technology such as solar photovoltaic panels and wind turbines generating up to 5 MW will be paid for the electricity they generate via feed-in tariffs, even if they themselves consume the energy.

The level of payment depends on the technology and is linked to inflation. They will receive a further payment for any electricity they feed into the grid.

While details of funding scheme have yet to be published in the 2010 Budget, the government estimated that a typical 2.5 KW, well-sited, solar photovoltaic installation could generate returns of up to £900 (€1029; US$1408), leading to a saving of £140 (€160; US$219) on annual household electricity bills.