This week’s WindEnergyUpdate news brief includes: EWEA; Frost & Sullivan; NREL; Riverstone & Seajacks; Enel Green Power & Padoma Wind Power; REG; Westar Energy & Infinity Wind Power; Xcel Energy; FloDesign; and REpower.

Europe’s offshore wind market scaled up in 2009

Europe’s offshore wind energy market grew by 54 percent last year, according to figures released by the European Wind Energy Association.

Eight new wind farms comprising 199 offshore wind turbines, with a combined power generating capacity of 577 MW represented year-on-year growth of 54 percent compared with the 373 MW added to Europe’s offshore wind energy market in 2008.

Moreover, in 2009, the turnover of the offshore wind industry was approximately €1.5 billion. The EWEA expects this to double in 2010 to approximately €3 billion. 

Currently, 17 offshore wind farms are under construction in Europe, totalling more than 3,500 MW, with just under half being constructed in U.K. waters.

The EWEA anticipates the completion of 10 European offshore wind farms in 2010, adding 1,000 MW. This would represent a market growth of 75 percent compared to 2009.

Additionally, 52 more offshore wind farms recently won full consent in European waters, totalling more than 16,000 MW, with just over half of this capacity planned in Germany.

More than 100 GW of projects are at various stages of planning and could provide enough power to meet 10 percent of European electricity demand, said EWEA.

Banks to get behind offshore wind

A research paper published by consulting firm Frost & Sullivan predicts greater participation of banks in the offshore wind sector over the next five years.

With installed capacity of offshore wind in Europe forecast to increase from 1.3 GW in 2008 to 18.8 GW by 2015, Frost & Sullivan analyst, Gouri Kumar, says the banking sector is likely to become more engaged in financing offshore wind projects.

Kumar attributes this growing interest to the size, potential and opportunity of the industry, alongside the role of both governments and investment banks in rescuing key projects last year.

Perceived risks associated with offshore wind have traditionally included lengthy permitting processes; extreme operating environments; high project economics; and expensive O&M procedures. 

However, according to the Frost & Sullivan report the level of risk has abated significantly owing to innovations in countries like the UK and Germany. Such innovations have reduced turbine technology and components costs and have improved installation procedures and accessibility.

NREL study underscores feasibility of wind power

A study by the U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL) has revealed that it is feasible to shift 20 percent or more of the Eastern Interconnection’s electrical load to wind energy by 2024.

While the integration of 20 percent wind energy is technically feasible, it will require significant expansion of the transmission infrastructure and system operational changes.

The study reveals that the relative cost of expanding the existing transmission grid represents only a small portion of the total annual costs.

It concludes that drawing wind energy from a larger geographic area makes it both less expensive and a more reliable energy source. The increased geographic diversity of wind power projects in a given operating pool makes the aggregated wind power output more predictable.

Indicating that transmission helps to optimise the electrical system and does not result in coal power being shipped from the Midwest to New England States, the report highlights that reduced fossil fuel expenditures more than pay for the increased costs of additional transmission in all high wind scenarios.

Riverstone acquires Seajacks

Private equity firm Riverstone has completed the acquisition of jackup operations provider Seajacks for US$207 million (€146mn; £128mn).

Seajacks currently owns and operates two self-propelled jack up vessels out of Great Yarmouth in the United Kingdom: the Seajacks Kraken and Seajacks Leviathan.

Seajacks Leviathan is currently on a 15-month contract with Fluor to provide installation services at Greater Gabbard, one of the world’s largest wind farms under construction off the Kent coast.

Riverstone plans to grow Seajacks into a leading European offshore wind service business, with an operational base in the U.K.

According to Riverstone, the initial focus will be on expanding Seajacks’ current fleet of vessels to service the rapidly expanding market for turbine installation and maintenance. The company plans to devote a substantial amount of new capital for this purpose.

Financial details were not disclosed.

Enel Green Power acquires Padoma Wind Power

Enel Green Power has acquired NRG Energy’s California-based terrestrial wind development company Padoma Wind Power for an undisclosed sum.

Padoma is developing about 4,000 MW of potential projects in California.

Enel North America (ENA) will retain the entire Padoma development team and the current Padoma development pipeline in California and Texas.

NRG is maintaining its existing ownership interest in its three Texas wind farms—Sherbino, Elbow Creek and Langford—totalling nearly 350 MW of electricity.

Moreover, the two companies also reached a more general co-investment agreement wherein NRG will retain a Right of First Offer should ENA seek an equity partner in the Padoma Projects.

In addition, ENA and NRG will evaluate joint venture opportunities in wind alongside other renewable energy projects in North America.

REG acquires fully consented wind turbine site

UK-based renewable energy group Renewable Energy Generation (REG) has acquired a fully consented wind site at High Haswell in County Durham for £0.8 million (US$1.29mn; €0.91mn) in cash.

The company expects to install two 2MW turbines on the site with a combined output of around 12GWh per year, which should become operational by the end of 2010.

REG recently placed an order with Acciona of Spain for three 1.5MW turbines for its fully consented site at Loscar near Rotherham.

Once operational, this site is expected to produce approximately 11GWh of output per year. Project completion is expected in autumn 2010.

A turbine order for the company’s consented site at Goonhilly Downs is currently being negotiated and is expected to be closed within the next few weeks. 

Delivery is expected in late summer 2010 with operation scheduled to commence in autumn 2010.  When complete this site is forecast to produce approximately 29GWh of output per annum.

Westar Energy, Infinity Wind Power sign deal

Kansas-based Westar Energy has acquired the rights to develop the proposed Ironwood wind farm in Kansas.

Westar, along with Infinity Wind Power, will develop the site near Spearville for up to 500 MW of wind energy.

The initial phase of wind development is expected to be approximately 200 MW and will be completed by late 2011 or 2012. Infinity will provide future development services to further prepare the site for construction of the wind farm.

Westar Energy currently owns and operates three wind farms in Kansas totaling 295 megawatts (MW).  These include: Flat Ridge Wind Farm - 100 MW; Central Plains Wind Farm - 99 MW; Meridian Way Wind Farm - 96 MW.

A new Kansas mandate requires electric utilities to include renewable capacity equal to 10 percent of the utilities peak summer demand, and 20 percent by 2020.

For Westar, this means increasing its renewable generation portfolio by between 160- 200 MW by the end of 2011 and by more than 600 MW by 2020.

Xcel Energy scales-up wind transmission capacity

Xcel Energy has increased its wind delivery capacity from 260 MW in 1999 to approximately 1,200 MW in 2009.

The company has announced the successful completion of the Buffalo Ridge Incremental Generation Outlet (BRIGO) Transmission Projects, designed to increase the system’s ability to carry wind power to Minnesota and South Dakota customers.

Work on the BRIGO projects was completed ahead of schedule at a total cost of approximately US$55 million (€39mn; £34mn).

The BRIGO series of projects installed approximately 50 miles of new transmission lines from the wind-rich Buffalo Ridge area of Minnesota and South Dakota.

The utility has constructed 280 miles of new 345 kilovolt and 115 kilovolt transmission lines and upgraded 300 miles of existing transmission lines and associated substations.

Wind power’s share currently stands at 8 percent. By 2020, it is planned that wind power will account for 19 percent of the company’s energy portfolio in the region.

FloDesign raises finance, appoints new CEO

US-based wind turbine maker FloDesign has raised US$34.5 million Series B financing round last month.

The Series A venture investor Kleiner, Perkins, Caufield and Byers was joined by a syndicate of three major new investors in the Series B, comprising a Goldman Sachs managed investment fund, Technology Partners and VantagePoint Venture Partners.

The company has also appointed Lars A. Andersen, previously President of Vestas China, as its new CEO.

FloDesign’s previous CEO and co‐founder Stanley Kowalski III will remain with the company as vice president. Andersen took charge earlier this month.

REpower to supply 20 wind turbines in Minnesota

As part of its first project in Minnesota, Denver-headquartered REpower will supply 20 wind turbines to National Wind.

With a rated power of 2.05 MW and a hub height of 100 meters, the REpower MM92 type turbines will be used in the first phase of the Lake Country Wind Energy project in central Minnesota.

All phases of the project will total 340 MW. The company has previously installed turbines in Washington, Oregon, Indiana, Michigan and California.