Ireland announces Offshore Renewable Energy Development Plan

Ireland has the potential to produce 10 times its existing electricity demand without significant environmental effect by banking on offshore renewable energy. This was stated by the Irish Energy Minister Eamon Ryan while launching the Offshore Renewable Energy Development Plan for public consultation.  

“Every megawatt of renewable energy that goes onto the Irish national grid reduces our €6 billion annual fossil fuel bill, reduces our carbon emissions and creates Irish jobs,” Ryan said. “Wind, wave and tidal off the Irish coast can produce 10 times our own electricity needs without adversely affecting the environment.

The plan will go to public consultation around the country for two months where developers, investors and local communities can give their views.

The plan highlights the Government's plans (subject to state aid clearance) for a Renewable Energy Feed in Tariff (REFIT) of €140 per megawatt hour for electricity produced from offshore wind.

Grid development

In terms of grid connection for renewable generation, a ‘Gate’ process was put in place by the regulator, the Commission for Energy Regulation, following public consultation.  Under the GPA or ‘Gate’ process, applications for connections are processed in batches rather than sequentially.

Within these gates, applications are further divided into groups and sub-groups based on the optimal network required to connect them. To date there have been 3 ‘Gates.’ Under Gate 1 and Gate 2, 1,755MW of connection offers to renewable generators were made and accepted. Under Gate 3, 3,900MW of offers are currently in the process of being issued to renewable generators.

Approximately 800MW of offshore wind projects in Gate 3 are due to receive an offer of a grid connection.  

Ireland stands at an important juncture in terms of setting an appropriate policy framework within which an offshore marine renewable energy industry can develop. It was for this reason that the government decided to launch a Strategic Environmental Assessment (SEA) of offshore marine environment to examine various development scenarios for offshore wind, wave and tidal energy to ascertain the level of development that appears feasible when environmental considerations are taken on board. 

Ireland’s policy framework supporting offshore marine renewables is at a developmental stage and is spread across several ministries and state bodies. One of the key challenges in taking the offshore marine renewable energy sector forward is to develop a mechanism for the enhanced co-ordination and collaboration on the sector between the relevant bodies, while respecting each body’s individual statutory remit, function and role in delivering and implementing policy.

The development of the offshore renewable energy sector will occur in the context of the following policies, many of which are still evolving:

• Ireland’s overall energy and renewable energy policy
• Co-operation mechanisms under EU Directive 2009/28/EC (Department of Communications,
• Energy & Natural Resources)
• Reform of the foreshore consenting process for offshore renewable energy projects
• Onshore planning (Department of Environment, Energy & Local Government)
• Renewable Energy Grid connection policy (Commission for Energy Regulation (CER))
• Grid 25 Strategy and national and international offshore grid development plans
• Ongoing economic analysis of offshore renewable energy developments
• Implementation of the Marine Strategy Framework Directive and the development in the near future of a national marine spatial strategy

United States: Wind installations hit three-year low

With a meagre addition of 395 MW of wind-powered electric generating capacity in the third quarter of 2010, the U.S. wind industry experienced its slowest quarter for new installations in three years.

With 1,634 MW installed through the end of September, the total installed utility-scale wind capacity through the third quarter was 36,698 MW. Over 6,300 MW is now under construction, suggesting that the U.S. is likely to end 2010 with over 5,000 MW completed, according to the American Wind Energy Association (AWEA). The association also found that in 2010, the rate of wind project development in the U.S. has been half that of Europe’s, and a third of China’s.

Factors attributing to the slowdown include lack of long-term U.S. energy policies, such as a Renewable Electricity Standard, and resulting lack of certainty for business, which has the country’s utilities failing to move forward with wind build-out plans.

Other factors include on-going sluggishness in the economy and a resulting lower demand for electricity; and lower prices to support new generating capacity. Such policies are already in place in China and Europe, resulting in more than US$35 billion of expected investment in 2010 -nearly four times the investment the U.S. will see this year.

“We're increasing our dependence on fossil fuels, impacting our national security, instead of diversifying our portfolio to include more renewables," said Denise Bode, CEO, AWEA.

Data from the U.S. Energy Information Administration and other third-party sources show that wind accounted for 39% of new installed capacity in 2009, versus 13% from coal. But in the first nine months of 2010, the ratio flipped with wind accounting for only 14%, versus 39% from coal.

EC publishes guidelines for wind energy development in protected natural areas

The European Commission has issued guidelines for wind energy development in protected natural areas.

The guidelines published are aimed at avoiding conflict between wind energy development and biodiversity conservation in Natura 2000 protected areas. They highlight the importance of strategic planning and the need for good quality appropriate assessment of new developments.

The guidelines contain examples of best practice, and show how wind energy developments can avoid damage to nature sensitive areas. 

Natura 2000 is an EU-wide ecological network of nearly 26 000 sites in the 27 EU countries, established under the 1992 Habitats Directive and covering almost 18% of the EU’s land area.

Janez Potočnik, European Commissioner for the Environment said: “These new guidelines will give Member States and industry clarity regarding the undertaking of wind energy development activities in accordance with Natura 2000 requirements. There is no change of legislation or policy, but merely guidance on existing law. Our aim is to ensure that renewable energy targets are met while fully respecting EU law on species protection.”

The new guidelines on wind power development aim to ensure that wind farms do not have a negative impact on vulnerable species and habitats in the ecological network of nearly 26,000 protected sites.

They give guidance to authorities and developers to ensure that new wind projects do not run contrary to the EU's Habitats and Birds Directives.

The draft lists potential impacts on birds and habitats for developers to look out for, including the risk of birds and bats colliding with wind turbines, habitat loss or wind farms forcing animals to change direction during migration and normal foraging activities. The guidelines argue that "most threats can be minimised by avoiding sites with sensitive habitats and key populations of vulnerable species".

At project level, each site should first be screened to determine whether the wind project is likely to have a significant effect on the area. Where this is the case, a further assessment is required before it can be authorised, according to the guidelines.

The European Wind Energy Association (EWEA) argued that wind farm developers already have to undertake an environmental impact assessment before giving construction the green light.

“Overall, wind power's impact on birds, bats, other wildlife and natural habitats is extremely low compared with many other human-related activities,” it said in a statement.

Scotland launches £70m wind energy fund

A £70 million investment fund has been launched in order to establish Scotland's place in the offshore wind industry.

The new National Renewables Infrastructure Fund will give immediate support to port and manufacturing facilities and supply chain provision for manufacturing offshore wind turbines and related components.

Scotland’s First Minister, Alex Salmond, launched the fund, which is being delivered through a partnership of Scottish Enterprise and Highlands & Islands Enterprise until 2015. Salmond said the scheme will demonstrate Scottish leadership in “green” energy, delivering 28,000 jobs and £7.1 billion to the economy over the next decade.

More than 7,000 offshore wind turbines are expected to be constructed off the U.K.’s coast over the next decade. The First Minister also reiterated his call for the U.K. Government to remove the restrictions on immediate access to the £191m of Scotland’s Fossil Fuel Levy funds generated north of the border to invest in renewable industries.

The fund aims to improve ports, manufacturing facilities and the supply chain - and bring in private sector investment and covers infrastructure relating to manufacturing and test/demonstration facilities.

Scottish Enterprise and Highlands & Islands Enterprise will now to work with site owners and public sector partners to develop key locations to the required specification that will fortify Scotland's position as a key offshore wind development location and attract the associated offshore wind inward investors. Initial expressions of interest by individual port site owners are invited by 10th December 2010.

AMSC’s Q2 revenues up by 36%

Wind turbine components maker American Superconductor Corporation (AMSC) has posted revenues of US$101.5 million for the second quarter of fiscal 2010, a 36% increase from $74.7 million for the second quarter of fiscal 2009.

The company generated net income of $10.0 million, in comparison with net income of $4.3 million for the second quarter of fiscal 2009.

The company reported backlog as of September 30, 2010 of approximately $956 million, compared with approximately $952 million as of June 30, 2010.

AMSC has increased its revenue and earnings forecast for 2010. The revenue guidance is up from a range of $420-430 million to a range of $430-440 million, representing growth in excess of 36 % compared with fiscal 2009. The net income forecast for the full fiscal year has increased from a range of $39.5 million to $42 million.

South Korea gears up for offshore wind power

South Korea plans to invest $8.2 billion in offshore wind power farms by 2019.

The government and private companies will install 500 wind turbines off the country’s west coast with a total capacity of 2,500 MW, as per the plan shared by the Ministry of Knowledge Economy.

A report filed by Chosun Ilbo shared that in  the first phase, wind farms with 20 turbines each with the capacity of 5 MW will be built near Buan, North Jeolla Province and Yeonggwang, South Jeolla Province to generate 100 MW electricity by 2013. Capacity will steadily increase to 900 MW by 2016, and 2,500 MW by 2019. 

The Ministry also shared that companies such as Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering plan to build 500 turbines.

Gamesa to establish UK offshore headquarters

Spanish wind maker Gamesa will be setting up its new worldwide centre of its offshore wind energy business in the U.K. for which it will invest up to €150 million 2014.

The investment will be for establishing an R&D centre for offshore technology and build one turbine blade manufacturing plant, with its port logistics and operation and maintenance services based at different ports in the U.K.

The offshore division which is to be based in London will also handle sales, project management, finance and administration for the offshore business.

Moreover, the company expects the construction and development of its offshore wind energy business in the U.K. to directly generate more than 1,000 jobs, with another 800 jobs created indirectly at the company's vendors and suppliers. 

It is also developing two offshore turbine systems, with capacity of 5 MW and 6-7 MW, as it positions itself to participate in planned North Sea projects in coming years.

BiFab bags £12m contract

Scottish firm Burntisland Fabrications Limited (BiFab) has signed a £12m contract with RWE npower renewables ) to design and manufacture two substation foundation structures for its Gwynt y Môr Offshore Wind Farm.

Gwynt y Môr Offshore Wind Farm is being built by RWE npower renewables in partnership with the Munich-based municipal utility company Stadtwerke München and Siemens.

BiFab, based in Fife, will work alongside Irish shipyard Harland & Wolff, which was appointed by the project’s Electrical Systems Contractor Siemens, to design and manufacture the two substations.

John Robertson BiFab managing director said this is his company’s first project with RWE. He added that work will start immediately and the contract is due for completion in March 2012.

Robertson also mentioned that BiFab will subcontract the design work to ODE London. The jacket structures that support the offshore substations will be fabricated at the BiFab Methil facility, securing employment for 350 staff, while the foundation piles that secure the jackets to the seabed will be manufactured by the BiFab Arnish facility at Stornoway, Isle of Lewis.

This will allow for the development of the facility of a pile manufacturing plant and will safeguard an additional 40 jobs.

GE to supply 55 wind turbines to Suncor wind project

Energy giant GE will supply 55 1.6MW wind turbines to Suncor Energy for one of the largest wind power projects in the province of Alberta, Canada called The Wintering Hills project.

The project is owned jointly by Suncor (70%) and Teck Resources (30%).

The 88 MW Wintering Hills project is located near Drumheller, approximately 125 km (78 miles) northeast of Calgary.

GE will deliver 55 of its advanced wind turbines to the site beginning in the second quarter of 2011. 

Scotland’s oil and gas experience key for offshore renewables

It is increasingly being highlighted that Scotland’s expertise in the oil and gas industry can play an important role in the development of renewable energy and decommissioning in the North Sea.

In an interview with FT.com, Ron Cookson, who heads the Aberdeen operation of Technip, said that the renewables industry – offshore wind in particular – is where the oil and gas industry was three decades ago.

He reportedly said, “There is a need for it to industrialise the process if the commitment that the government has placed on [it] is going to be delivered. It is a step-change from the industry today, to being able to deliver the 25 GW mentioned in the recent round three licensing awards.”

“Aberdeen needs to accelerate and demonstrate its full interest in offshore wind or renewable energy generally, if it wants to be the energy centre,” he said. “You can’t dispute that it is the centre for oil and gas. Offshore wind is happening today, and it is not centred in Aberdeen – it’s not centred anywhere. It’s there to play for.”

Cookson noted, "Many of the things that make the offshore environment safe in oil and gas will be needed when you step up to 7,000 or 10,000 turbines in five years".