Weekly Intelligence Brief: January 31 - February 07

Belfast Harbour, Dong Energy sign letter of intent for marine parkThis week’s Wind Energy Update newsbrief includes the following companies and organizations: Belfast Harbour, Dong Energy; European Wind Energy Association (EWEA); Virginia Offshore Wind Development Authority; Gamesa; Atlantic Offshore Wind Consortium; Technip & Subocean Group; French Environment and Energy Management...

 

Belfast Harbour, Dong Energy sign letter of intent for marine park

Belfast Harbour is to fund and build a new £40m, 450m quay and 50-acre logistics space, on the County Down side of the Harbour.

Belfast Harbour is Belfast’s port authority and operates the principal maritime gateway on the island of Ireland. The harbour estate covers an area of 2,000 acres representing 20% of Belfast City area.

The project would create up to 300 full time jobs and 150 construction posts. Dong Energy has signed a letter of intent in support of the project. If a final agreement is signed, Danish company Dong Energy will use the facility to pre-assemble turbines and foundations.  

Len O’Hagan, Belfast Harbour’s Chairman said that in addition to turbine assembly operations, there may also be opportunities to attract turbine manufacturers to Northern Ireland, helping to lay the basis of a Marine Energy Park that would create significant numbers of new high-value-add jobs and inward investment.

Belfast Harbour highlighted that over the next 20 years it’s expected that 11,000 new offshore wind turbines will be built in UK and Irish territorial waters at a cost of c. £100bn. With almost a quarter of the planned turbines located within 150 nautical miles of Belfast, it is being underlined that the Harbour area is well placed to become a major centre in the rapidly expanding offshore wind sector.

The Crown Estate, which manages licences for UK offshore wind farms, has awarded Dong Energy (as part of its Round 2 and 2.5 Licence Rounds), the licence to construct the West of Duddon Sands Offshore Wind Farm together with Scottish Power Renewables, and to further extend the capacity of the Burbo Bank (up to 234 MW) and Walney (up to 750 MW) offshore wind farms in the Irish Sea.

 

2010 beats record for European offshore wind installations

A staggering 9.3 GW of new wind power capacity was installed in the European Union during 2010, reaching a total of 84 GW by the end of 2010, according to figures released by the European Wind Energy Association (EWEA).

In its latest report, "Wind in power: 2010 European statistics", the Association has shared that while offshore wind power installations grew 51% from 582 MW in 2009 to 883 MW last year, onshore wind power installations (8.4 GW) were down 13.9% compared to 2009 (9.7 GW).

With 883 MW of new installed capacity, offshore wind power represented 9.5% of all new wind power installations (in MW).

Investment in EU wind farms in 2010 was €12.7 billion. The onshore wind power sector attracted €10.1 billion during 2010, whilst the offshore wind power sector accounted for around €2.6 billion. 9,259 MW of wind power capacity (worth some €12.7 billion) was installed in the EU during 2010, down 10% compared to the previous year.

Remarkable growth in the onshore wind markets of Romania, Poland and Bulgaria could not make up for the decline in new onshore installations in Spain, Germany and the UK. Strong development of the offshore wind market was led by the UK, Denmark and Belgium, said Christian Kjaer, CEO of the Association.

In terms of annual installations, Spain was the largest market in 2010, installing 1,516 MW, compared to Germany’s 1,493 MW. France was the only other country to install over 1 GW (1,086 MW), followed by the UK (962 MW) and Italy (948 MW). Sweden (604 MW), Romania (437 MW), Poland (382 MW), Portugal (345 MW) and Belgium (350 MW) also all performed strongly. Offshore installations accounted for 9.5% of total EU installations in 2010.

Power capacity installations

Wind power installations accounted for 16.7% of new installations in 2010, the first year since 2007 that wind power did not install more than any other generating technology. Following two consecutive years of installing less power capacity than the wind industry, gas installed more capacity than any other generating technology in 2010 with 28 GW, representing 51% of total new installed capacity.

Solar PV installed 12 GW (21.7% of total capacity), followed by wind with 9.3 GW (16.7%). In addition, 4,056 MW (7.3%) of coal, 573 MW (1%) of biomass, 405 MW (0.7%) of CSP , 208 (0.4%) of large hydro, 200 MW (0.4%) of peat, 149 MW (0.3%) of waste, 145 MW (0.3%) of nuclear, 25 MW of small hydro, 25 MW of geothermal, and zero MW of tidal and wave capacity were installed. Significantly, no fuel oil capacity was added in the EU during 2010.

Overall, 2010 was a record year in the EU with 55.3 GW of new electricity generating capacity installed, more than double 2009 installations (a 102% increase).

 
US to announce major offshore wind energy initiatives

US Secretary of the Interior Ken Salazar and Energy Secretary Steven Chu are scheduled to announce new initiatives on Monday to accelerate the responsible siting and development of offshore wind energy projects.

Salazar and Chu are slated to be in Norfolk to announce a coordinated effort by several federal agencies to more quickly develop wind energy off Virginia’s coast, according to a report filed by The Virginian-Pilot.

In Virginia, a major initiative was taken recently to support the offshore wind energy sector.

The 2010 Virginia General Assembly established the Virginia Offshore Wind Development Authority (VOWDA) to promote the development of wind resources off Virginia’s Atlantic coast. The Act authorises the Virginia Department of Mines, Minerals and Energy (DMME) to request an incumbent utility to initiate a transmission study to determine the potential interconnection options for multiple offshore wind facilities to the transmission grid.

The mission of the Authority is to facilitate, coordinate, and support development of the offshore wind energy industry, offshore wind energy projects, and supply chain vendors by collecting metocean and environmental data and identifying regulatory and administrative barriers. The Authority is to work with local, state, and federal government agencies to upgrade port and logistic facilities and sites. It would also recommend ways to encourage and expedite offshore wind industry development.

 

Gamesa finalises UK turbine factory shortlist

Wind turbine manufacturer Gamesa has shortlisted Harwich, Humber and Tyneside as the possible venues for its offshore wind turbine factory.

Gamesa is now in the final stages of fixing the location of a factory in England. The factory is to employ up to 600 people, as well as supporting more jobs in its industrial supply chain. The final decision is due by June reported UK broadsheet, The Independent.

Gamesa estimates that the construction and development of its offshore wind business in the UK will create over 1,000 direct jobs and another 800 indirect jobs at local suppliers.

Recently, it emerged that Gamesa is proposing to set up its marine wind technology centre in Scotland. Glasgow has been identified as the preferred location for the facility, subject to final agreements on financing. The announcement came just a few months after Gamesa unveiled its industrial plan for offshore wind power in the UK, where it plans to invest over €150 million through 2014.

Gamesa’s offshore wind business headquarters will be based in London, from where it will engage in sales, project development, finance and management activities.

In addition to its offshore technology centre in Glasgow and a potential industrial, logistics and O&M base in Dundee, Gamesa’s offshore wind strategy for the UK includes construction of a blade production plant (location, under study) and engaging in offshore logistics from a number of UK ports, around which it will locate its wind turbine O&M operations.

 

O’Malley rallies support for Maryland Offshore Wind Energy Act

Maryland Governor Martin O’Malley has stressed that more action is needed if US offshore wind ambitions are to be realised.

O’Malley believes that offshore wind energy offers vast potential to create jobs, and to help stabilise utility costs while increasing grid stability.  

O’Malley, who delivered his fifth State of the State address last week before members of the Maryland General Assembly last week, said, “We set one of the most ambitious goals for renewable energy in America, but so far we’re not on pace to meet it. This isn’t going to happen simply because we set this big goal or because it’s a good idea.”

He said: “I need your support for the Maryland Offshore Wind Energy Act not only to create more renewable energy in Maryland, not only to reduce greenhouse emissions in Maryland, but to jumpstart the creation of thousands of green manufacturing, assembly and servicing jobs on the shores and waters of Maryland.”

In the past also he has mentioned that even as progress is made towards to accomplishing the state’s Renewable Portfolio Standard of 20% clean energy on the grid by 2022, offshore wind remains one of the most critical components to achieving this goal.

In June last year, O’Malley announced the State’s formal partnership in the Atlantic Offshore Wind Consortium. The group, comprised of States along the Atlantic coastline and the United States Department of the Interior, will work to coordinate regionally prominent issues surrounding the development of offshore wind along the Atlantic outer continental shelf.

Technip acquires Subocean Group

Technip has acquired all of the assets of Subocean Group, a UK based subsea cable-installation company.

The latest acquisition forms part of Technip’s strategy to establish itself in the offshore wind services arena. The company announced that it will take on around 300 employees, land-based assets and the operations of some key contracts in backlog. This, according to Technip, will therefore enable it become a leading player in offshore wind cable-installation.

The acquisition builds on Technip’s track record in wind energy, which includes delivery of Hywind, the world’s first full scale, floating wind turbine. Technip’s upfront investment will be around £10 million.

Last month, Technip, in association with Nénuphar, Converteam and EDF Energies nouvelles, shared that it is launching the Vertiwind project to test a pre-industrial prototype of a vertical-axis offshore floating wind turbine. The partners of the project are Seal Engineering, ISITV, IFP Energies nouvelles, Arts et Métiers, Bureau Veritas, Oceanide. Technip is responsible for the design of the floater, mooring system, dynamic electrical connection cable, turbine integration as well as on-site installation.

Technip’s ambitions in the offshore wind sector were announced in early 2010 when it launched its operating centre in Aberdeen, UK as its headquarters for all European Offshore Wind projects.

 

France to share terms for offshore wind tenders in May

French Energy Minister Eric Besson has announced that the terms for tenders for 3,000 MW of offshore wind energy are to be published in May.

According to a report filed by Bloomberg, Besson said that bids for the projects must be submitted by the end of November and the successful bidders will be announced in the first half of 2012.

The development of renewable energy in France has undergone a major transformation with the implementation of the Grenelle Environnement. In this framework, France has set a target of 23% of the total energy consumption in 2020 should be from renewable energy.

In its report, French know-how in the field of renewable energies, published late last year, the French Environment and Energy Management Agency shared that France has over 3,000 wind turbines with an installed capacity of 4.7 GW. Wind energy alone will make it possible to achieve 25% of the objective fixed by the Grenelle Environnement. 

In 2020, the French fleet should include some 8,000 wind turbines with a total power of 25 GW. The potential already exists, with between around 400 and 500 wind turbines, which is 1,000 MW, commissioned every year in France.

The report underlined that offshore wind turbines have many advantages thanks to the strength and regularity of sea winds.

As far as the domestic market is concerned, around 140 French companies are currently contributing to the wind energy sector, from the production of components to the engineering, installation and maintenance of wind turbines.

Almost 150 other French companies have also demonstrated an interest in diversifying into the sector. In addition to domestic wind turbine manufacturers, including Vergnet, Alizeo, Alstom Wind and Areva-Multibrid, France enjoys a rich network of industrial firms with all the expertise needed to manufacture the parts used in wind turbines, as well as the ability to meet the needs of the assembly, installation and maintenance of wind turbines.

 

Industry calls for a single European electricity market  

Twenty European companies including Siemens, SSE Renewables, Vattenfall and Vestas, are calling on EU Heads of State to show the courage and vision to create a single market for electricity by 2015.   

The companies, along with a host of associations, emphasise that 25 years after the signing of the Single European Act, there is still no single market in electricity. Acciona, Enercon, Enel Green Power, EON Climate & Renewables, GE Energy, Mainstream Renewable Power, PPC Renewables and RES are among the companies that signed the declaration.

The declaration for a single European energy market comes just a few days before the 25th anniversary of the signing of the Single European Act on 17 February 1986, and reminds leaders attending the summit that 25 years ago European Heads of State showed courage and vision by creating a single European market.

While European legislation guarantees choice of electricity provider, only 5% of Europe’s electricity is currently traded across borders. It has been recommended that in order to achieve a single market in electricity, Europe needs both the infrastructure to transport electricity from one part of Europe to another, and a common set of market rules.

A properly functioning European market in electricity would have many benefits, such as:

  • Increased competition leading, in the long-term, to reduced electricity prices
  • Improved security of supply (and reduced risk of blackouts)
  • Reaping the full advantages of fuel-free, pollution-free renewable energy sources produced in ever greater quantities in many parts of Europe
  • Opportunities for increased trade in electricity regardless of the source

Associations already supporting the declaration include: European Biomass Association (AEBIOM),  European Geothermal Energy Council (EGEC), the  European Photovoltaic Industry Association (EPIA), the European Renewable Energy Council (EREC), the European Solar Thermal Electricity Association (ESTELA),  European Biomass Industry Association (EUBIA), European Wind Energy Association (EWEA) and the Friends of the Supergrid.


EIB supports Dutch grid project

The European Investment Bank (EIB) has formally agreed to provide a €450 million loan to TenneT Holding to finance construction and operation of an 83km 380kV transmission connection.

The Randstad 380 kV electricity transmission scheme will include construction of three substations and a 83km link between Wateringen, 7km southwest of The Hague, and Beverwijk, 20km northwest of Amsterdam.This will close the ‘Randstad 380’ extra-high voltage electricity transmission ring.

The contract for the first tranche of €150 million has been signed. The financial agreement follows December’s favourable legal judgment by the Council of State of the Netherlands on the integration plan and spatial decisions for this project. The first part of this new link is expected to be ready for operation in early 2013.