This week’s WindEnergyUpdate news roundup includes:  RenewableUK calls for extension of UK’s Renewables Obligation; Sinovel and China’s inaugural national offshore wind project; U.S. senators call for ‘Buy America’ clause in the Clean Energy MTC; Iberdrola Renovables creates offshore wind division; U.S. senators table the Deepwater Wind Incentive Act; AGL Energy & Meridian Energy sign Australian wind farm deal; and Wind Energy America submits interconnection request. 

RenewableUK calls for immediate action on UK wind policy

RenewableUK, formerly known as British Wind Energy Association (BWEA), has stated that a range of issues must be resolved imminently if British wind projects are to be realized.

Wind developers are currently bringing forward nearly 50GW worth of sites, which would represent over £120 billion of private investment and create thousands of green-collar jobs. However, according to RenewableUK’s latest manifesto, there are a range of policy issues that could stand in the way of delivering that revolution, such as market stability, planning, aviation, grid access, and skills shortages.

The need for a supply industry is another issue that must be addressed. One of the lessons from the past is that if the UK is to be a world leader in offshore wind, wave and tidal technologies, it must create a support infrastructure. This means the country needs geographic centres of renewable energy, just as Aberdeen is a hub for the oil and gas sector.

The tension between radar and the wind industry is one of the biggest issues facing the industry, and must be resolved if the UK is to meet its 2020 renewable energy and greenhouse gas targets.

RenewableUK estimates that around 4GW of wind farm developments in the UK’s planning system in 2009 were blocked because of radar issues, and aviation objections are likely for proposed developments of a further 5.5GW still in the pre-application stage of development. These objections, justified or not, cause serious delays to the construction of renewable installations.

Regarding offshore wind, it has been highlighted that the UK Government should keep the support for offshore wind under review and, if necessary, be prepared to extend the period for which offshore wind receives 2 Renewable Obligation Certificates (ROC)/ MWh. This should be alongside investment in innovation and research and development aimed at reducing capital and operating costs and minimising the need for RO support.

The RO must be maintained in order to underpin investor confidence in the sector. A move away from the ROC system at this stage would only serve to confuse and discourage investors, causing a hiatus in projects going forward.

China’s first offshore wind demo project ready

Beijing, China-based wind turbine manufacturer, Sinovel, has completed the installation of all 34 wind turbines for the 102MW Shanghai Donghai Bridge offshore wind power demonstration project.

It is the first offshore wind power project outside Europe and China’s first national offshore wind power demonstration project.

The project has a total installed capacity of 102 MW, using 34 Sinovel 3 MW offshore wind turbines.

The annual power output is expected to reach 260 million kWh.  The electricity will be transmitted through the submarine cable to mainland Shanghai.

So far, the first three wind turbines have been put into operation, have passed the 240-hour test and combined, have generated 7.35 million kWh of electricity.

The wind farm will put all its wind turbines into operation before the opening of Expo 2010 Shanghai, to supply clean energy for this grand world event, that is scheduled to start in May.

Four US senators propose to stop flow of stimulus dollars overseas

U.S. Senators Charles E. Schumer, Bob Casey, Sherrod Brown and Jon Tester have urged the Obama administration to stop funds going to foreign manufacturers of clean energy.

They have urged the Obama administration to suspend the programme indefinitely until the law can be fixed so that funds only flow to projects that will create jobs in the US. This proposal comes after a report revealed that a clean-energy grant programme in the stimulus paid out more than US$1 billion to foreign manufacturers.

In a letter to Treasury Secretary, Tim Geithner, the four senators pushed for a moratorium on all payouts from a clean-energy grant programme until Congress considers new legislation that they have introduced.

The proposal would apply the “Buy America” standard to all renewable energy projects, public or private, that seek stimulus funds. If approved, the legislation would ban payments to projects like a wind farm in West Texas that is on the verge of receiving US$450 million in stimulus funds, despite most of the jobs being created in China.

The project in question is a joint venture comprised of China’s Shenyang Power Group, a Texas company called Cielo Wind Power and the U.S. Renewable Energy Group. It would build a 648MW wind farm in west Texas.

The proposal would ensure that grant money is distributed only to renewable energy projects that preserve and create jobs in the U.S., in addition to aiding flow only to clean-energy projects that rely on materials manufactured in the U.S., rather than overseas.

Iberdrola creates offshore wind division

Iberdrola Renovables has created an offshore wind division to develop a portfolio of offshore wind projects totalling almost 10,000 MW.

The company has chosen to base its global offshore wind power headquarters in Glasgow, Scotland. Headed by Keith Anderson, it will develop projects across the world.

The division will be incorporated into Scottish Power Renewables, the company’s U.K. business unit, which is also headed by Anderson.

The division will have three departments: operations and maintenance, business development and commercial operations.

The company was recently awarded the rights together with Swedish energy company, Vattenfall, to develop one of the world’s largest offshore wind farms in the UK.

The East Anglia Array, located in the North Sea off the coast of Norfolk, will have a capacity of up to 7,200 MW and is projected to commence construction in 2015. In addition, it has other offshore wind projects in Europe, comprising an additional 2,500 MW.

Iberdrola Renovables will invest €9 billion (US$12.2bn; £8.1bn) between 2010 and 2012 to accelerate its international expansion.

U.S. Deepwater Wind Incentive Act announced

U.S. Senators Olympia J. Snowe and Susan Collins have announced the Deepwater Wind Incentive Act, a bipartisan legislation to provide a critical long-term renewable production tax credit for developing deepwater wind facilities.

The Act would provide a tax incentive of 3.04 cents per kilowatt production tax credit for the first 6,000 MW of deepwater offshore wind production in the US. Deepwater wind is defined as in waters greater than 60 metres.

“Estimates are that development of 5GW of offshore wind in Maine - enough to power more than 1 million homes for a year - could attract US$20 billion of investment to our state and create more than 15,000 green energy jobs that will be sustained over 30 years,” said Senator Collins.

The legislation will complement the US Department of Energy’s vision of making the University of Maine a leading centre of deepwater offshore wind research, as well as helping the US achieve the goal of operating 20% wind energy by 2030.

Iberdrola to invest €18b over next three years

Spanish energy giant Iberdrola plans to invest €18 billion in the three-year period 2010-2012, including €9 billion in renewables.

The company also estimates cost savings of more than €300 million a year by 2012.

The U.S. will receive 39% of total investments, U.K. 25%, Spain 24%, and Latin America and other markets 12%. The group has obtained US$703 million (€516mn) in U.S. Treasury grants in 2009, of which US$577 million (€424mn) corresponds to renewables.

Iberdrola recorded net profits of €2.8 billion in 2009 and now plans to consolidate on its international expansion with projects in its key markets by growing organically.

The group has marked €9 billion for renewable energy, €6.3 billion for networks and €2.7 billion for generation and supply.

Moreover, Iberdrola has stated its plans to further diversify internationally and increasing the Ebitda obtained from regulated businesses (networks and renewables) to 70% of the total from its current 64%.

The firm’s total capacity is nearly 45,000 MW and expects renewables to increase to 28% of total operating profits.

Macarthur wind farm deal signed down under

Australia’s integrated renewable energy company AGL Energy has entered into conditional arrangements for the construction of Macarthur wind farm in southwest Victoria.

The company’s decision follows the federal government’s announcement of proposed changes to the operation of the Renewable Energy Target (RET) scheme.

The 365MW farm will be constructed under a joint venture between AGL and New Zealand’s Meridian Energy. AGL will take all of the wind farm’s energy output and renewable energy certificates.

The contractual arrangements are subject to a number of conditions, including approval by the boards of the joint venture partners. Construction is expected to take approximately three years after AGL announces the capital cost details of the contract.

WEA submits interconnection request

Wind energy company Wind Energy America (WEA) has submitted a formal request for interconnection of 250 MW of wind generation to Black Hills Power for the company’s Weston Wind I wind power project, located in Weston County, Wyoming.

With the acceptance of the request, WEA anticipates moving forward on several development milestones over the coming months, including evaluation of five years of meteorological data, permitting, interconnection and PPA negotiations.

Reports suggest that the project will be developed on a 10,000-acre private ranch in Weston County and will be capable of generating enough power to serve approximately 60,000 homes.

The project should be operational by the third quarter of 2011, according to WEA chief development officer, Brian Hill.