Ontario not to proceed with proposed offshore wind projects

The Ontario government has chosen not to proceed with proposed offshore wind projects.

The government shared that no Renewable Energy Approvals (REA) for offshore have been issued and no offshore projects will proceed at this time. Applications for offshore wind projects in the Feed-In-Tariff programme will no longer be accepted and current applications will be suspended.

Ontario’s REA Regulation is a new approach to approvals for renewable energy projects administered by the Ministry of the Environment. It provides clarity on application requirements and streamlines the approvals process. This regulation requires extensive environmental reports, public, municipal and Aboriginal consultation, as well as noise assessments.

“We will be working with our U.S. neighbours to ensure that any offshore wind projects are protective of the environment,” said John Wilkinson, Ontario’s Minister of the Environment.

Wilkinson added, “Offshore wind on freshwater lakes is a recent concept that requires a cautious approach until the science of environmental impact is clear. In contrast, the science concerning land based wind is extensive.”

The government pointed out that offshore wind in freshwater lakes is early in development and there are no projects operating in North America. It acknowledged that the recently installed Lake Vanern pilot project in Sweden is one of the only operational freshwater offshore projects in the world and a pilot project has been proposed in Ohio. For its part, Ontario will monitor these projects and the resulting scientific knowledge.

E.ON’s Humber wind farm gains approval

The Department for Energy and Climate and Change (DECC) has granted energy giant E.ON planning approval to build the 230MW Humber Gateway Offshore wind farm off the coast of Humberside.

The development emerged as Energy Minister Charles Hendry co-chaired the Offshore Wind Developers Forum in London, where wind farm developers discussed how the Government’s proposals for reforming the electricity market can help remove barriers to investment.

The wind farm, to be located 8km off the Holderness Coast in the East Riding of Yorkshire, will feature 77 turbines. Construction is expected to start within two years.

E.ON, also a partner in the London Array, which will be the world’s largest offshore wind farm when built, was granted onshore planning consent for a new substation on industrial land near Salt End earlier this year. The substation will connect the Humber Gateway wind farm to the national grid via 30km of underground cable.

Once operational, Humber Gateway will be E.ON’s fifth offshore wind farm in the UK. The company already owns and operates the UK’s first offshore wind farm off the cost of Blyth in Northumberland, Scroby Sands off the coast of Great Yarmouth, and one of the UK’s largest offshore wind farms - Robin Rigg - in the Solway Firth.

Vestas to unveil 6 MW offshore turbine next month

Danish wind turbine manufacturer Vestas has shared that its 6 MW offshore turbine, which is currently being developed, will be presented on 30 March. The presentation of this turbine will take place in London.

Combined with the V112-3.0 MW offshore turbine, the development of the new 6 MW turbine underpins its commitment to offshore operations, says the company.

Vestas says it had an estimated accumulated market share of about 45 percent at the end of 2010. Of Vestas’ total installed MW, offshore turbines accounted for 3% at the same time.

The company, in its annual report for 2010, released last week, shared that it reported a 25% increase in full-year 2010 net profit on record orders and an increase in deliveries in the fourth quarter.

After record-high deliveries of 2,557 MW in the fourth quarter, the year’s total deliveries to the customers in 2010 rose by 1,078 MW to 5,842 MW from 4,764 MW in 2009.

Vestas generated revenue of €6.9 billion in 2010, against €5.07 billion in 2009. The 36% increase in revenue is due to the 23% increase in deliveries.

The intake of firm and unconditional orders for the year rose to 8,673 MW from 3,072 MW in 2009. Measured in terms of value, the increase amounted to €5.4bn from €3.2bn to €8.6bn.  

In terms of MW, Europe and Africa accounted for 49%, whereas the Americas and Asia Pacific accounted for 29%and 22%, respectively. The backlog of orders at the end of 2010 was €7.7bn, against €5.4bn at 31 December 2009.

In 2010, Vestas produced and shipped 2,025 wind turbines with an aggregate capacity of 4,057 MW, against 3,320 wind turbines and 6,131 MW in 2009. The decline was due to the low order intake in 2009. In total, 5,842 MW was handed over to the customers.

The year’s order intake of 8,673 MW had a value of €8.6 billion, corresponding to €1m per MW, which is on level with 2009, with an order intake of 3,072 MW at a value of € 3.2 billion.

Outlook for 2011

The intake of firm and unconditional orders for the year is expected to be 7,000-8,000 MW.

Vestas expects that the bulk of its orders in 2011 will also include short-term or longer-term service contracts with varying scope. Shipments are expected to rise from 4,057 MW in 2010 to 6,000 MW in 2011, so by the end of 2011, Vestas is expected to have installed around 50,000 MW.

Vestas expects to achieve an EBIT margin of 7% and revenue of €7 billion in 2011, including service revenue, which is expected to rise to €700 million with an EBIT margin of 15%. 

O'Malley gears up for The Maryland Offshore Wind Energy Act of 2011

Maryland’s Governor Martin O'Malley has introduced the Maryland Offshore Wind Energy Act of 2011 in order to boost offshore wind development.

The bill will require public utilities to leverage Maryland’s offshore wind resources by entering into long-term purchase agreements with wind power generation facilities off of the Mid-Atlantic coast. The bill was scheduled to be submitted before the General Assembly on Friday.

Such agreements, according to O'Malley, will shift the focus from short-term profit to Maryland’s long-term energy security. The Act requires a long-term contract, which is expected to enhance the stability of Maryland energy prices and provide a reliable hedge against volatile fossil fuel prices.

While offshore wind capital costs are high compared to traditional fossil fuel generation, the fuel cost is zero, rendering the operational costs highly competitive. Using the Delaware offshore wind contract as a model, the initial rate impact for a 500 MW project is expected to be approximately US$1.44 on residential monthly bills in 2016.

The Maryland Offshore Wind Energy Act of 2011 requires development of 400-600 MW of offshore wind capacity, approximately 10 nautical miles off of Maryland’s coast. This would require the installation of between 80 and 200 wind turbines, depending on project scope and turbine capacity.

The Maryland/Federal Offshore Wind Task Force recommended a 207-square nautical mile (nm) area beginning 10 nm East of the Maryland’s Atlantic Coast. This area falls under the jurisdiction of the U.S. Department of Interior.

Vestas bags an order from E.ON UK

Vestas has bagged an order from E.ON Climate and Renewables UK for delivery of 22 units of the V90-2.0 MW wind turbine.

The order has a total capacity of 44 MW and the turbines will be installed in Tween Bridge Moor in Doncaster, England. Delivery of the turbines is scheduled for completion in February 2012.

The contract includes supply, installation, and commissioning of the turbines, a VestasOnline Business SCADA system and a five-year service agreement.

Klaus Steen Mortensen, president of Vestas Northern Europe, highlighted that the V90-2.0 MW turbine model is designed for low and medium wind speeds, which is perfect for the area of Tween Bridge Moor.

The deal further strengthens the ties between the two entities. E.ON Climate & Renewables UK currently has 11 wind farms in its operational portfolio, which use Vestas turbines. 

New Jersey BPU shares framework for offshore wind

The New Jersey Board of Public Utilities has adopted new rules to codify new statutory requirements enacted through the Offshore Wind Economic Development Act.

The initiative is designed to provide an application process and a framework under which the Board will consider and, if appropriate, approve applications for qualified offshore renewable facilities and Offshore Renewable Energy Certificates (ORECs).

Major components of the proposed rules include application requirements, the need for an escrow account, the ability for the Board to designate the application window, and the ability for the Board to impose appropriate conditions upon any OREC grant.

A “Qualified offshore wind project” means a wind turbine electric generation facility in the Atlantic Ocean and connected to the electrical transmission system in this State, and includes the associated transmission-related interconnection facilities and equipment, and approved by the Board.  

The document explains the application process, determination of the completeness of the application, application requirements, and other related issues.

Offshore Wind Technology Centre launched in Virginia

Wind turbine specialist Gamesa Technology and Northrop Grumman Shipbuilding, the shipbuilding operations of Northrop Grumman, have launched the Offshore Wind Technology Centre in Chesapeake , Virginia.

The focus will be on developing North America’s first offshore wind turbines by late next year. 

The two companies have strengthened their ties with this initiative. Gamesa and Northrop Grumman Shipbuilding formed an alliance in October last year to cooperate on the launch of Gamesa’s first G11X-5.0 MW offshore prototype in the US. A team of nearly 50 engineers has been focusing on the development of Gamesa’s G11X-5.0 MW offshore prototype.

Gamesa, which is counting on Northrop Grumman Shipbuilding’s expertise in challenging marine environments, believes that this partnership ensures that an integrated approach to the design will be met.

An integrated design and logistics support approach of the wind turbine systems will address the market’s main concerns, namely turbine reliability, low maintenance and servicing requirements, and minimising the cost of generating electricity.

US shares its plan for offshore wind energy

United States Secretary of Energy Steven Chu and United States Secretary of the Interior Ken Salazar recently unveiled a coordinated strategic plan to accelerate the development of offshore wind energy in the US. 

The joint plan, ‘A National Offshore Wind Strategy: Creating an Offshore Wind Industry in the United States’, is the first-ever inter-agency plan on offshore wind energy. The plan includes new funding opportunities for up to US$50.5 million for projects that support offshore wind energy deployment and several high priority Wind Energy Areas in the mid-Atlantic that will spur development of this renewable resource.  

Salazar said that through the Strategic Work Plan, the US is synchronising new research and development initiatives with more efficient, forward-thinking planning in order to build the American offshore wind industry.  

The strategy identifies the major challenges facing the deployment of offshore wind energy in U.S. waters and lays out a strategy for overcoming those challenges by reducing the cost of offshore wind power and reducing the timeline for deploying offshore wind systems.

The DOE will undertake these activities through its Offshore Wind Innovation and Demonstration (OSWInD) Initiative, a national effort to develop and deploy offshore wind technology. The Strategic Plan has been informed by substantial input from DOI, other federal partners, offshore wind industry stakeholders, and the public.

Chu announced the release of three solicitations, representing up to US$50.5 million over five years, to develop offshore wind energy technology and to reduce specific market barriers to its deployment:

• Technology development (up to US$25 million over 5 years): US Department of Energy (DOE) will support the development of wind turbine design tools and hardware. Specific activities will include the development of open-source computational tools, system-optimised offshore wind plant concept studies, and coupled turbine rotor and control systems to optimise offshore wind systems.
• Removing market barriers (up to US$18 million over 3 years): DOE will support baseline studies and targeted environmental research to characterise key industry sectors and factors limiting the deployment of offshore wind. Specific activities will include offshore wind market and economic analysis; environmental risk reduction; manufacturing and supply chain development; transmission planning and interconnection strategies; optimised infrastructure and operations; and wind resource characterisation.
• Next-Generation Drivetrain (up to US$7.5 million over 3 years): DOE will fund the development and refinement of next-generation designs for wind turbine drivetrains, a core technology required for cost-effective offshore wind power.

Salazar also identified four Wind Energy Areas offshore the mid-Atlantic as part of Interior’s ‘Smart from the Start’ approach announced in November last year that uses appropriate designated areas, coordinated environmental studies, large-scale planning and expedited approval processes to speed offshore wind energy development.

The areas, on the Outer Continental Shelf offshore Delaware (122 square nautical miles), Maryland (207), New Jersey (417), and Virginia (165), will receive early environmental reviews that will help to lessen the time required for review, leasing and approval of offshore wind turbine facilities.

Under the National Offshore Wind Strategy, DOE is targeting 54GW of deployed offshore wind generating capacity by 2030, at a cost of energy of 7 cents per kilowatt-hour, with an interim target of 10 GW of capacity deployed by 2020, at a cost of energy of 10 cents per kWh. Those scenarios include development in both federal and state offshore areas, including along Atlantic, Pacific, and Gulf coasts as well as in Great Lakes and Hawaiian waters.