This week’s WindEnergyUpdate news brief includes: UK 'green investment bank' to target offshore wind; GE to invest €340m in four European countries; Acciona to construct three wind farms in Mexico; Iberdrola to build 400 MW offshore wind park; We Energies to build Glacier Hills wind park; SRP signs deal for Dry Lake 2 wind power project; Vestas to supply turbines for Glacier Hills Wind Park; AMSC wins order from Sinovel; Western Wind Energy projects come online mid 2011; Whitelee offline following turbine blade loss: London Array identifies headquarters.

UK government ‘green investment bank’ to target offshore wind  

During this his budget speech last week, the UK’s chancellor of the exchequer, Alistair Darling, announced that the UK government intends to create a green investment bank with offshore wind as the initial funding target.

Designed to address emerging equity finance gaps, the green investment bank will launch with a £2bn funding pool. The Government intends to kick start the low-carbon economy engine by investing up to £1 billion from the sale of infrastructure-related assets. Darling said the government seeks to match this with at least £1 billion of private sector investment.  

Support for offshore wind ranks high among the government’s low-carbon economy objectives. Darling announced that  £60 million has been earmarked for the development of port sites to support offshore wind turbine manufacturers looking to locate new facilities in the UK, and to secure low- carbon manufacturing jobs.

He added that a competition would be launched to identify host locations for, and recipients of, the funding, subject to state aid approval. “The Government is acting to ensure the UK benefits from the rapid manufacturing and supply chain expansion needed to meet the increased deployment of offshore wind,” said Darling in Wednesday’s speech.

The government’s support for the wind energy sector is in line with the UK department of Environment and Climate Change’s Energy Market Assessment, which advises that the highest potential contributions to the UK’s 2050 energy mix should come from wind, nuclear and fossil fuel with CCS.

A consultation is to take place this summer on mechanisms to provide greater certainty for low-carbon investment. The government will also be introducing proposals for energy market reform this autumn and is due to publish a White Paper in Spring 2011, outlining its proposals.

GE to invest in European facilities

Global energy major GE will invest €340 million in the U.K., Norway, Sweden and Germany, to develop or expand its existing wind turbine manufacturing, engineering and service facilities in those countries.

One of the major highlights of this move is the development of GE’s 4MW wind turbine designed specifically for offshore deployment. It will be the largest wind turbine in GE’s fleet.

The wind turbine will incorporate advanced drive train and control technologies gained through GE’s acquisition of ScanWind.

Norway is the planned site for testing and demonstration of the first 4MW wind turbine offshore. It will feature GE’s technology that eliminates the need for gearboxes.

This technology is already being demonstrated at a test site in Hundhammerfjellet, Norway, where the first ScanWind direct drive unit has been operating for more than five years.

For the four countries, the investments are as follows:

Norway

GE will create a new Offshore Technology Development Centre in Oslo and will expand its advanced demonstration unit production and service facilities in Verdal.

GE has also joined the Nowitech Research Centre in Norway to participate in joint research projects on offshore wind topics. There are plans to invest €75 million (US$100.5mn; £67.4mn) by 2016. 

Sweden

GE will expand its current offshore wind facilities by developing a Conceptual and Systems Design Centre in Karlstad, Sweden. A technology demonstration unit is planned to be installed in Gothenburg harbour and GE also will join the Chalmers Wind Energy Centre in Gothenburg. GE intends to invest €50 million (US$67mn; £45mn) in Sweden by 2016.

Germany

In Germany, GE plans to invest €105 million (US$141mn; £94mn) by 2016. A new engineering centre in Hamburg will feature product development, application engineering and advanced technology.

GE also plans to expand its resources at its existing wind turbine manufacturing facility in Salzbergen and the GE Global Research Centre in Munich.

U.K.

GE plans to establish its offshore wind turbine manufacturing in the U.K. It will locate application and service engineering resources in the country and will bring partners and suppliers of towers, blades, nacelles and other offshore wind components to the manufacturing facility. The plan will result in up to €110 million (US$147.5mn; £99mn) investment and up to 2000 jobs by 2020.

The planned investment comes at a stage when renewable energy’s share in new power generation capacity in the European Union is on the rise.

For instance, of the total new capacity installed in 2009, 39% was wind power, amounting to an investment of €13 billion, including €1.5 billion offshore. Wind’s share of newly installed capacity increased from 35% in 2008 to 39% in 2009.

A total of 10,163 MW of wind power capacity was installed across the EU – a 23% increase compared to 2008 installations – made up of 9,581 MW onshore (up 21% from last year) and 582 MW offshore (up 56% from last year).

According to a report released by the European Wind Energy Association earlier this year, wind power’s total capacity in the EU has now reached 74,767 MW, up from 64,719 MW by the end of 2008 with Germany remaining the EU country with the largest installed capacity, followed by Spain, Italy, France and the U.K.

The countries with the biggest share of new capacity installed in 2009 were Spain (24% - 2459 MW), followed by Germany (19% - 1917 MW), Italy (11% - 1114 MW), France (11% - 1088 MW) and the UK (10% - 1077 MW).

Acciona to construct wind farms in Mexico

Spanish renewable energy company Acciona Energy will construct and develop three wind farms for Mexico’s Federal Electricity Commission (CFE) in the state of Oaxaca.

The €450 million (US$603.4mn; £405mn) deal totals 306 MW. Construction work will get under way in 2010 and the parks featuring Acciona’s 1.5 MW wind turbines are expected to be operational by 23 December 2011.

The wind parks awarded through the CFE’s call for tender are Oaxaca II, Oaxaca III and Oaxaca IV (102 MW each), all of which will be located in the Isthmus of Tehuantepec region.

In the call for tender by Mexico’s CFE, the company beat rival bidders Iberdrola Renovables, Recursos Eólicos de México (ACS) and Enerfin Sociedad de Energía (part of the Elecnor group).

The deal accounts for 12.7% of the wind power implementation objective to 2013 envisaged in Acciona’s Strategic Plan.

Acciona already has one wind park in operation in Mexico, the 250.5 MW Eurus facility, (the largest wind power installation in Latin America in terms of installed capacity),  which delivers electricity to CEMEX cement production plants across the country.

Iberdrola to build offshore wind park

Spanish utility Iberdrola Renovables has gained the rights to build a 400 MW offshore wind project in the Baltic Sea, which is expected to be commissioned by 2014.

The Ventotec Ost 2 project was first approved by the German government in 2007 and Iberdrola has bought it from a German joint venture comprising Deutsche Erneuerbare Energien GmbH (Deutsche Bank Group) and Ventotec GmbH (GHF-Group).

The wind complex comprising 80 wind turbines of 5 MW, with each generating a total of 1.200 Gigawatthours (GWh), is at an advanced stage of the authorisation procedure.

Ventotec Ost 2 is located in the northern part of the priority wind area known as Westlich Adlergrund, at a distance of some 40 km from the nearest coastline, the island of Rügen. The average depth of the water is approximately 39m.

Iberdrola Renovables recently 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 ScottishPower Renewables, the company’s U.K. business unit, which is also headed by Anderson.

We Energies to build Glacier Hills wind park

Milwaukee, Wisconsin-based We Energies has formed an alliance to design and build the Glacier Hills Wind Park, which will be located in the towns of Randolph and Scott in Columbia County. 

The construction alliance will include The Boldt Company of Appleton, Michels Corporation of Brownsville and Edgerton Contractors, Inc. of Oak Creek.

The project was approved by The Public Service Commission of Wisconsin (PSC) on January 22, 2010 and is expected to generate more than 400 million emission-free kilowatt hours annually, enough to power 45,000 homes. We Energies serves more than 1.1 million electric customers in Wisconsin and Michigan’s Upper Peninsula.

At the time of the approval, it was shared that depending on the type of wind turbine selected, each of the 90 Glacier Hill units will have an electric generating capacity between 1.5 MW and 2.3 MW.

Construction on the Glacier Hills Wind Park is expected to begin in the second quarter of 2010, with projected completion late 2011.

Wisconsin law requires the state to produce 10% of its electric energy from renewable sources by 2015.

SRP signs deal for Dry Lake 2 wind power project

The U.S.’ third-largest public power utility, Salt River Project (SRP), has agreed to purchase the entire output of Phase 2 of the Dry Lake Wind Power Project in northern Arizona for a 20-year term.

SRP has finalised the deal with Iberdrola Renewables.

The two have partnered once again after 2008 when SRP had purchased the entire output from Phase I of the Dry Lake Wind Project.

Dry Lake’s Phase 2 will use up to 31 Suzlon wind turbines and is expected to generate up to 65 MW of electricity. 

When permitted, the Dry Lake 2 Wind Project will be located approximately seven miles northwest of Snowflake on a combination of private and state lands.

The construction period of Dry Lake 2 is expected to span between 9-12 months and create construction and engineering jobs for 200 workers and approximately five permanent operations and maintenance staff.

Vestas to supply Glacier Hills Wind Park project

Danish turbine manufacturer Vestas will supply 81 V90-1.8 MW wind turbines for the Glacier Hills Wind Park in Wisconsin, U.S.

Vestas won the order from Milwaukee, Wisconsin-based We Energies.

The turbines will be delivered in early 2011, with commissioning for the 145-MW project expected by the end of 2011. The order also includes a two-year service and maintenance agreement.

Vestas began its partnership with We Energies in 1999, supplying the utility its first wind turbines in Byron, Wisconsin. In 2007, Vestas delivered 88 V82-1.65 MW turbines for the Blue Sky Green Field project that went online in 2008.

AMSC bags order from Sinovel

Devens, Massachusetts-based power technologies company American Superconductor Corporation (AMSC) has received an initial order for full wind turbine electrical control systems from China’s largest wind turbine manufacturer, Beijing-based Sinovel.

The systems will be deployed in Sinovel’s first 5 MW doubly-fed induction wind turbines.

AMSC expects to deliver the electrical control systems to Sinovel in the second half of 2010.

Sinovel expects to have its first 5 MW wind turbines, branded the SL5000, erected within the next 12 months and to commence full production of the wind turbines in 2011.

Western Wind Energy projects to come online mid-2011

U.S. based renewable energy electrical production company Western Wind Energy has announced that both its 50 MW Mesa Wind Repower Phase One and the 11 MW Steel Power Wind and Solar projects are planned to commence construction before the end of 2010 with commercial operations before June 30, 2011.

Together with Windstar, Western Wind is planning to have 161 MW of projects in construction by years end.

Western Wind is working with its EPC, BOP contractor, RMT, Inc., on various project activities for both Mesa and Steel Park. Jointly, Western Wind and RMT are conducting various project tasks including preliminary design, system impact and feasibility studies and permitting at Steel Park.

Upon commencement of their commercial operations, Western Wind will apply to the U.S. Treasury Department for the 30% tax free cash grant available under the American Recovery and Re-Investment Act of 2009. The tax-free cash grant is anticipated to be approximately $27 million.

Whitelee offline following turbine blade loss

Europe’s largest onshore wind farm, Whitelee, was shut down last week after a blade snapped off one of the huge turbines.

All 140 turbines at the Whitelee wind farm on Eaglesham Moor near Glasgow were inspected by engineers, reported the Press Association. ScottishPower Renewables reportedly said that mechanical failure or a lightning strike could be to blame for the breakage, which it described as “highly unusual”.

According to a report filed by bbc.co.uk, the damaged turbine was automatically shut down after sensors alerted the wind farm’s 24-hour control room. All turbines at the site were then taken offline while engineers began an inspection.

In December last year, ScottishPower Renewables was given permission by the Scottish Government to develop a second extension at Whitelee Windfarm near Glasgow, to add a further 39 turbines and increase overall capacity up to 593MW.  

The initial 140 turbines at Whitelee were completed ahead of schedule in May 2009 and on the same day the wind farm was officially switched on, planning permission was granted for the first extension of 36 turbines. The completion of both extensions will see the wind farm host a total of 215 turbines.

London Array locates headquarters

The world’s largest wind farm, London Array, is likely to site its headquarters in Ramsgate, according to a BBC report.

The London Array wind farm would be located more than 20km (12 miles) from the Kent and Essex coasts in the outer Thames Estuary, in one of three strategic areas identified by the Government for offshore wind farm development.

Up to 200 jobs will be created through extra trade for local businesses, with around 90 people directly employed.

A consortium called London Array Limited is developing the project. The company has three shareholders: E.ON, DONG Energy and Masdar. In all, the project will feature up to 341 turbines, to be installed over a four- year period. The wind farm would be constructed in two phases with phase one including 175 turbines.