Weekly Intelligence Brief: February 22 - March 01

This week’s news roundup includes wind energy development on the U.S. Outer Continental Shelf; Mitsubishi Power Systems; NS Power; NOVA; Iberdrola Renovables; RWE Innogy; Gamesa & BARD; and Centrica.

 

Salazar to work closely with Atlantic Coast states

US Secretary of the Interior Ken Salazar has revealed plans to work closely with Atlantic Coast states to streamline the permitting process for offshore wind energy projects.

Salazar recently hosted a meeting with Governors and representatives of Atlantic Coast states to discuss a regional approach to wind energy development on the U.S. Outer Continental Shelf (OCS). The coastal states include Maine, Rhode Island, Delaware, Virginia, Maryland and Massachusetts.

Salazar said that a coordinated, region-wide approach to offshore wind would help the nation move forward with orderly development in the Atlantic OCS.  He said region-wide planning could foster cooperative approaches to developing the infrastructure necessary to service offshore wind development.

The Interior department’s Minerals & Management Services (MMS) has identified several areas that would benefit from a regional approach to offshore wind development, including strategic siting principles, transmission, environmental planning, and the use of environmental research funds.

The MMS will also be working with Federal agencies and other stakeholders to leverage Federal resources and funding for regional environmental and technical issues and to identify ways to improve the efficiency and predictability of the review and approval process for renewable energy projects.

Last year, Salazar awarded the first-ever exploratory leases for offshore wind production on the OCS offshore New Jersey and Delaware.

 

Mitsubishi to invest in UK offshore wind R&D

Mitsubishi Power Systems (MPSE) plans to invest up to £100 million in a new research and development facility in the U.K. for offshore wind.

MPSE signed a non-binding memorandum of understanding with UK Business Secretary Lord Mandelson and Energy and Climate Change Secretary Ed Miliband.

The UK government has announced a £30 million (€33.5mn;US$46mn) grant to fund the project. MPSE has yet to decide the location of the site. This initiative will create up to 200 highly skilled jobs.

The project will be rolled out in three phases. The first will involve prototype assembly and onshore and offshore testing of Mitsubishi's 6MW second-generation technology.

The second phase will involve the development of third-generation offshore wind technology via the establishment of a UK-based Mitsubishi Offshore Wind Centre for Advanced – Technology.

The third phase involves the design and development of large composite offshore wind turbine blades, and associated production techniques

Lord Mandelson and Ed Miliband also announced new funding of £18.5 million (€21mn; US$28mn) for an offshore wind test site in the North East of England.

The site, off the coast near the New and Renewable Energy Centre (Narec) in Blyth, would provide a technology demonstration and development platform for the next generation of large multi-megawatt offshore wind turbines.

 

NS Power contracts out 19MW

Electricity service provider Nova Scotia Power has awarded six contracts for 18.95MW of electricity to be supplied from small, community-based renewable energy projects throughout Nova Scotia.

The six agreements are the result of a December 2008 request for proposals (RFP) for small, renewable energy projects that would encourage community investment and development.

The 10 different community projects announced under the six agreements add to the existing 16 wind sites in Nova Scotia with a generation capacity of 112 MW.

These projects, combined with the five new wind farms (163 MW) committed to be online in 2010, will bring Nova Scotia’s wind generation to a total capacity of 275 MW.

The successful bidders include Scotian WindFields, with three sites - Granville Ferry, Dunvegan, and Isle Madame, Capacity - 6MW; Energy Limited, Cape North, 0.65MW; Colchester-Cumberland Wind Field, Spiddle Hill, Tatamagouche, 0.80MW ; Black River Wind Limited, with three sites, including Creignish Rear, South Cape Mabou, and Irish Mountain, 6MW; Watts Wind Energy, Watt Section, Sheet Harbour, 1.50MW; and Wind Prospect, Fairmont, Antigonish County, 4MW.

 

NOVA to develop Aerogenerator concept

The Novel Offshore Vertical Axis (NOVA) has unveiled a unique Aerogenerator concept developed by Wind Power Limited, with a rotor invented by David Sharpe.

The Aerogenerator turns conventional windmills on their side, with a 100m tall V-shaped blade rotating on a vertical axis, rather than the usual horizontal axis.

The vision for the NOVA project is 1 GW of offshore vertical axis turbines installed by 2020, via a large-scale demonstrator installed offshore within six years.

The project will be commercialised by Wind Power Limited.

Wind Power has put together a consortium that is completely UK-based involving world leading research and development groups.

The project will follow a well-structured three-phase approach over a six-year period, starting with concept selection and feasibility (15 months), followed by subsystem development, testing and detailed design (24 months), and finally offshore demonstrator construction, installation and test (36 months).

Cranfield University will provide aeronautic structural and materials design as well as offshore support structure design. Sheffield and Strathclyde Universities will be designing the drive train and power systems, while QinetiQ will model and optimise the aerodynamic performance.

The Centre for Environment, Fisheries and Aquaculture (Cefas) will look after environmental impact issues. James Ingram & Associates will provide both grass roots and high level offshore wind farm development know how and experience.

The project is being managed and led by Guildford based OTM Consulting.

 

Iberdrola Renovables’ takes a profit dive

Iberdrola Renovables recorded a net profit of €371.1 million in 2009, a decline of 4.9% over the previous year.

In Spain, Iberdrola Renovables was affected by external factors, with a 16% decline in market prices.

However, the company expects to increase its operating profits by 20% in 2010, owing to the addition of around 1,750 MW to be added this year, bringing total capcity to 12,500 MW. The company currently has 937 MW under construction, globally.

Iberdrola’s gross operating profit (EBITDA) rose 11.8% to €1,325.3 million during the financial year, driven by international operations, while the company’s gross margin increased by 12% to €1,815.5 million. Investments totaled €2.2 billion in 2009, of which half took place in the United States.

Electricity generation rose 26.4% to 21,490 million kilowatt hours (kWh), while operating capacity rose 27% to 10,284 MW. Installed capacity came to 10,752 MW.

The company, together with its partner Vattenfall, has been awarded the development rights for what is potentially one of the largest offshore wind farms in the world, with a capacity of up to 7,200 MW in the North Sea.


RWE Innogy invests in second Italian farm

RWE Innogy is investing in its second onshore wind farm in Italy. The 26 MW Ururi wind farm is due to be commissioned by the end of this year.

A joint-investment into the wind farm will be made by RWE Innogy Italia (51%) and Fri-El Green Power S.p.A. (49%). Vestas will supply a total of 13 wind turbines of the 2MW class.

The Ururi wind farm is the second wind farm to be installed by RWE Innogy in Italy. It is currently installing a 24.65 MW wind farm in Sardinia, approximately 35 km north of the city of Cagliari.

In total, 4.8 GW of wind power was installed in Italy by the end of 2009. The Italian government intends to increase installed capacity to 8 GW by 2020.

Power generation from renewable energies is supported by a system of “green certificates” in Italy, where electricity suppliers are obliged to offer a certain percentage on the basis of renewable energies. Suppliers can be released from this obligation by purchasing corresponding certificates.

 

Gamesa, BARD sign MoU

Wind turbine maker, Gamesa, had signed an agreement to take a minority stake in German wind turbine maker BARD Holding GmbH.

The two companies have signed a Memorandum of Understanding (MoU) for joint development and marketing of offshore wind turbines and services.

The MoU may also enable Gamesa to develop manufacturing facilities that produce BARD offshore wind turbines under licensing contracts. Gamesa, which has until now focused on land-based wind turbines, said it is planning a joint venture to sell and manufacture BARD’s bigger, offshore turbines at its own factories.

While the size and value of the stake was not disclosed, the two parties have agreed on a negotiating period until the end of March to structure the collaboration.

EU to meet its 2020 wind energy target

European Union member states are on course to achieve over 20% renewable energy by 2020, with 21 member states meeting or exceeding their national targets, according to an analysis by the European Wind Energy Association (EWEA).

The analysis of all 27 Member States’ national forecast documents reveals that Spain is the top achiever, expecting to generate 22.7% of Spain’s renewale energy requirement by 2020 - almost 3 percentage points above its 20% target.

Germany expects to exceed its 18% target by 0.7 percentage points. In addition, Estonia, Greece, Ireland, Poland, Slovakia and Sweden are also expected to exceed their targets.

The six countries that do not expect to meet their targets include Belgium, Italy, Luxembourg and Malta besides Bulgaria and Denmark.

Bottom of the league is Italy, which intends to import renewable energy from neighbouring non-EU countries (Albania, Croatia, Serbia and Tunisia) to achieve its targets.

 

Centrica shows 2009 profit decline

Centrica posted a 7% decline in profit for 2009, reflecting lower wholesale gas and power prices.

Centrica reported adjusted operating profit of £1.86 billion (€2bn; US$2.8bn) on sales 5% higher at £21.96 billion (€24.5bn; US$33.5bn).

The company’s UK power generation capacity has increased from 4.2GW to 7.1GW. Centrica is currently developing up to 6GW comprising existing projects and Lincs (650MW), potential projects (1.1GW) and Irish Sea zone (up to 4.2GW).

Moreover, it generated almost 50% more power from renewables last year than 2008 - nearly 821GWh compared to 548GWh in 2008, almost wholly from Centrica’s five operational wind farms.

Earlier this year, the company was awarded development rights to the Irish Sea zone in Round 3 of The Crown Estate’s offshore wind licensing.