Weekly Intelligence Brief: November 08 - November 15

This week’s Wind Energy Update includes the following: European Commission; The Maryland Department of Natural Resources, Maryland Energy Administration, the Maryland Offshore Wind Task Force and the University of Maryland's Center for Integrative and Environmental Research; Carbon Trust; Nordex; Vestas; Green GECCO & An suidhe; Draka & Siemens; and Woodward Governor &...

Energy investments of €1 trillion needed: EC

The European Commission has presented its new strategy, Energy 2020, defining the energy priorities for the next 10 years.

Over the next 10 years, energy investments in the order of €1 trillion are needed, both to diversify existing resources and replace equipment and to cater for challenging and changing energy requirements, according to the Commission.

The new energy strategy focuses on five priorities:

1. Achieving an energy efficient Europe;

2. Building a truly pan-European integrated energy market;

3. Empowering consumers and achieving the highest level of safety and security;

4. Extending Europe’s leadership in energy technology and innovation;

5. Strengthening the external dimension of the EU energy market.

On the supply side, the priority must continue to be the development of secure and competitive sources of energy. In the field of electricity generation, investments should lead to nearly two thirds of the electricity coming from low carbon sources by the early 2020's, the current level being 45%.

In this context, priority should be given to renewable energies. The strategy must provide a framework at EU level which, while respecting national differences, would not only allow Member States to outperform their respective targets, but also ensure that the renewable energy sources and technologies are economically competitive by 2020.

According to the Commission, in 2009, 62% of newly installed electricity generation capacity in the EU was from renewable sources, mainly wind and solar. However, Europe’s lead is challenged. The independent 2010 Renewable Energy Attractiveness Index now cites the US and China as the best investment opportunities for renewable energy. New stimulus is needed; more than ever is EU leadership called to address these challenges.

Europe is still lacking the grid infrastructure which will enable renewables to develop and compete on an equal footing with traditional sources. Major projects, such as the ones over 140 GW of offshore wind power currently being planned by European utilities, developers and governments, mostly in the North Sea or the Desertec and Medring initiatives, affect several Member States. Europe-wide coordination and collaboration should include the pooling of different funding sources, stated the Commission.


Maryland releases map for offshore wind leasing area

The federal government in the US, which controls the Outer Continental Shelf, has accepted the planning recommendations of the Maryland Offshore Wind Task Force and issued both a Request for Interest (RFI) and a map of an offshore wind leasing area in federal waters adjacent to Maryland's Atlantic Coast.

Maryland intends to generate 20% of its energy from renewable sources by 2022. The state authorities highlighted that 1GW offshore wind farm off of the Maryland coast could create as many as 4,000 jobs in manufacturing and construction during the five-year development period, with an additional 800 permanent jobs once the turbines are spinning.

This announcement is the result of nearly two years of planning. The Maryland Department of Natural Resources worked with the Maryland Energy Administration, the Maryland Offshore Wind Task Force and the University of Maryland's Center for Integrative and Environmental Research to develop a comprehensive understanding about the impact of offshore wind development.

The result was a draft marine spatial planning area nd formed the basis for the map released by the federal Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE).

The western edge of the RFI area for proposed wind generation is located approximately 10 nautical miles from the Ocean Citycoast and the eastern edge is approximately 27 nautical miles from the Ocean City coast.

A map of the area of interest as well as the electronic copy of the RFI can be found here.

 

Carbon Trust competition receives 600 registrations

The U.K. Carbon Trust’s competition for safe access to offshore wind turbines has seen more than 600 organisations from all over the world register so far.

The registrations include more than 300 from the U.K., 120 from North America and 110 from continental Europe including 35 from Norway. 

According to Carbon Trust, the global market opportunity for access solutions for deeper water offshore wind environments is estimated to be worth over £2bn by 2020 and according to Carbon Trust research, the UK market alone could account for up to 50% of that.

The UK’s Carbon Trust, via its Offshore Wind Accelerator programme, is encouraging companies to tackle the challenge head-on by offering several million in funding for the best solutions for transfer systems, vessel design and launch and recovery systems. The objective is to dramatically improve the availability of turbines and the safety of people during the transfer to turbines.

Carbon Trust’s Offshore Wind Accelerator manager, Phil de Villiers, even though the competition has resulted in positive response from Europe and North America, it is being believed that there may be technologies from the oil and gas sector in South East Asia that could be applicable to the offshore wind market.

“In these regions transfers from marine vessels to oil and gas platforms are far more common than in Europe or the US where helicopters are normally used,” said de Villiers.  

The next generation of ‘Round 3’ offshore wind farms to be constructed from 2014 will consist of as many as 1,500 turbines, located up to 300 km offshore where sea conditions are challenging. According to the Trust, developing new systems to enable safe transfer to a turbine in 3-metre significant waves will allow wider maintenance windows so increasing turbine operating hours and improving the overall economics of the wind farm.

The successful applicants to the competition will benefit from funding of up to £100,000 per concept to support the design and development of the successful concepts; the opportunity to work with eight leading offshore wind developers with licences to develop 30GW of offshore wind capacity in UK waters (representing 60% of today’s licensed UK capacity) and potentially several million pounds of funding to take the concepts to full-scale demonstration.

 

Nordex reduces 2010 revenue target

German wind turbine manufacturer Nordex has lowered its sales guidance for 2010, despite better results in the third quarter. 

The company no longer expects a small increase in sales for 2010 and currently projects a figure of around €1 billion (previous year: EUR 1.183 billion).

The forecast is chiefly based on the assumption that the portfolio of firmly financed orders worth €423 million will be largely executed together with contractually guaranteed service business and the commencement of a small proportion of work on new orders booked in the final quarter of the year.

In the third quarter, Nordex’s sales increased over the previous quarter by 33% to €264.4 million. 

However, at a cumulative €614.2 million in the first three quarters, it remained below the previous year’s figure (€814 million). This was chiefly due to weak market conditions. Order intake rose by €201 million in the third quarter, amounting to €530 million in the first nine months of the year. The same figure for 2009 was €638 million.

 

EU warned over 2020 climate and energy targets  

The European Commission has warned the EU member states that without strong new policy initiatives the EU’s existing energy and climate strategy is currently unlikely to achieve the 2020 targets.

The Commission, in its new strategy, Energy 2020, defining the energy priorities for the next 10 years, has shared that energy investments in the order of €1 trillion are needed, both to diversify existing resources and replace equipment and to cater for challenging and changing energy requirements, over the next decade.

“We share 100% the concerns stated by the European Commission”, said Christian Kjaer, CEO of the European Wind Energy Association (EWEA).

According to the Association, the Commission has also intimated the members that the security of internal energy supply is undermined by delays in investments and technological progress, and will be further undermined if electricity grids are not upgraded, obsolete plants are not replaced and energy is not used more efficiently throughout the whole energy chain.

The EWEA also emphasised that the Commission has pointed out that in 2009, 62% of newly installed electricity generation capacity in the EU was from renewable sources, mainly wind and solar. However, Europe’s lead is challenged. The independent 2010 Renewable Energy Attractiveness Index now cites the US and China as the best investment opportunities for renewable energy. New stimulus is needed; more than ever is EU leadership called to address these challenges.

 

Vestas signs wind energy order for 100 MW in Europe

Danish wind turbine maker Vestas has signed an agreement for a total capacity of 100 MW for several wind projects in Europe.

The order comprises delivery ex-works, installation and commissioning as well as a VestasOnline Business SCADA system.  

This supply-and-installation contract entails the delivery of the turbines that is expected to start in the second half of 2011.

 

Green GECCO buys Scottish An Suidhe wind farm

Green GECCO, a joint venture set up in April this year, has signed a contract to buy the An Suidhe wind farm located in the Argyll and Bute region in Scotland.

The 20 MW An Suidhe wind farm, which has been developed and constructed by RWE Innogy, is Green GECCO's first project whose construction started in January 2009.

The wind farm has 23 Enercon turbines, which are all in the 800 or 900 kilowatt categories. The first turbines started in autumn this year and are already feeding electricity into the grid. Final completion of the wind farm is expected to take place at the end of the year, when the Green GECCO consortium will take over the facility as a turnkey project.

Green GECCO, which is a joint venture between 26 German municipalities (49% ownership) and RWE Innogy (51% ownership), was created with the aim of developing and implementing renewable energy projects such as wind power. The 26 municipal utilities and regional energy suppliers formed a dedicated holding company which owns 49% of the Green GECCO joint venture.

Draka finalises plans for cable assembly venture for wind in the US

Draka, a global manufacturer of wire and cable, plans to locate its U.S. cable assembly venture for wind in Hutchinson, Kansas.

Draka is being termed as the first supplier to locate in Kansas specifically to supply the newly-built Siemens nacelle facility.

In addition to its proximity to Siemens, Draka chose Hutchinson because of support offered by the Kansas Department of Commerce, local governments, and the Hutchinson/Reno County Chamber of Commerce. Draka is opening its operations in an existing building at One South Lorraine on December 6.

Draka is the main supplier of value-added cable for Siemens Wind in Denmark.

 

Woodward to supply wind power converters to REpower

Energy control and optimisation solutions provider Woodward Governor will supply wind power converters to German company REpower.

As a result of this agreement, Woodward will extend its key supplier relationship to cover REpower's full wind turbine portfolio, including onshore and offshore turbines.

Power converters are used for delivering stable, high-quality power to the grid by controlling the voltage and power from the wind turbine generator, so that voltage and frequency are constant and independent of the variable rotation speed of the wind turbine. 

Woodward will manufacture the Concycle power converters for REpower at its facilities in Kempen, Germany; Krakow, Poland; and Fort Collins, CO, U.S.