NREL: 4,000GW of US offshore capacity

The National Renewable Energy Laboratory (NREL) has estimated that the U.S. offshore winds have a gross potential generating capacity four times greater than the nation’s present electric capacity.

In its latest report, "Large-Scale Offshore Wind Power in the United States: Assessment of Opportunities and Barriers” (www.nrel.gov/wind/pdfs/40745.pdf), NREL estimates the total gross wind resource at more than 4,000 GW, or roughly four times the generating capacity currently carried on the U.S. electric grid.

This estimate assumes that one 5-MW wind turbine could be placed on every square kilometre of water with an annual average wind speed above 7.0 metres per second (m/s). The gross resource has been quantified by state, water depth, distance from shore, and wind class throughout a band, extending out to 50 nautical miles from the U.S. coastline.

While this estimate does not consider siting constraints and stakeholder inputs, it clearly indicates that the U.S. offshore wind capacity is not limited by the magnitude of the resource, said NREL as it released a new report featuring a detailed assessment of the nation's offshore wind resources and offshore wind industry.

The report analyses the technology challenges, economics, permitting procedures, and the potential risks and benefits of offshore wind power deployment in U.S. waters. It also highlights that offshore wind power can help to build a diversified and geographically distributed U.S. energy mix, offering security against many energy supply emergencies—whether natural or man-made.

The report further notes that developing the offshore wind resource along U.S. coastlines and in the Great Lakes would help the nation to achieve 20% of its electricity from wind by 2030. NREL’s estimates indicate that 54% of added wind capacity could come from offshore wind.

Further, building 54 GW of offshore wind energy facilities would generate an estimated $200 billion in new economic activity and create more than 43,000 permanent, well-paid technical jobs in manufacturing, construction, engineering, operations and maintenance.

Extrapolating from European studies, NREL estimates that offshore wind will create more than 20 direct jobs for every megawatt produced in the U.S.

Although these analyses are still preliminary, NREL’s Regional Energy Deployment System (ReEDS) model (formerly called the Wind Deployment System [WinDS] model) shows offshore wind penetration of between 54 GW and 89 GW by 2030 when economic scenarios favouring offshore wind are applied.

Although the United States has built no offshore wind projects so far, about 20 projects representing more than 2,000 MW of capacity are in the planning and permitting process. Most of these activities are in the Northeast and Mid-Atlantic regions, although projects are being considered along the Great Lakes, the Gulf of Mexico, and the Pacific Coast. The deep waters off the West Coast, however, pose a technology challenge for the near term.

US: Salazar signs first offshore wind farm lease for Cape Wind

US Interior Secretary Ken Salazar and Cape Wind Associates have signed the nation’s first lease for commercial offshore wind energy development on the Outer Continental Shelf.

The lease authorises Cape Wind to construct the 130-turbine offshore wind farm on Horseshoe Shoal in Nantucket Sound, and to operate the facility for a period of 25 years.  

Last month, the U.S. Department of Energy unveiled a draft plan that calls for the US to install 54,000 MW of offshore wind power capacity by the year 2030, which would require more than 100 Cape Wind-sized projects.

Referring to the functioning of the Atlantic Offshore Wind Energy Consortium, Salazar said that firstly the focus is on spotting areas that have bountiful wind energy, and relatively fewer potential environmental and use conflicts than other offshore areas.

“We expect to identify high priority areas in most of the Atlantic states by the end of this year…To help shorten the permitting process, the plan is to gather (up front) the best information available about resources, potential conflicting uses, and environmental concerns for these high priority areas.”

According to Salazar, by working closely with the states the federal government can and should help jump-start the permitting process.

“Once we assemble information about resources and potential development in high priority areas, we should coordinate area-wide environmental reviews up front. Developing strong environmental analysis early-on will help investors and developers design proposals that have a greater chance of success,”  he said.

He added that by identifying high priority areas offshore for potential wind projects, it would be possible to explore the development of a transmission backbone in the Atlantic Ocean to serve those areas.

Gamesa unveils Business Plan 2011-2013

Wind turbine specialist firm Gamesa has revised its 2011 sales forecast to 2,800-3,100 MW from 2,700-3,300 MW projected earlier as part of a new business plan for 2011-13.

The company plans to invest €250 million per year in the next three years to establish manufacturing capacity where necessary to meet market demand and launch new products, including the development of offshore wind turbine generators (WTGs), to which it will allocate €150 million in 2011-2013. Overall, offshore will account for 20% of total capex.

Gamesa intends to offer the lowest cost of energy, while focusing on three vectors: Cost of Energy (CoE), growth and efficiency. It plans to reduce its clients’ cost of energy by 20% over three years and by 30% over five years.

Under the Business Plan, Gamesa says it will progressively restore growth and recover its main financial and operating figures, enabling it to sell 4,000 MW of WTGs in 2013, attaining a 15% compound annual growth rate. The EBIT margin in the WTG business will be 6%-7% and working capital will amount to 20% of sales under a rigorous policy of aligning production to orders.

The guidance for 2011 is for sales of 2,800-3,100 MW and an EBIT margin of 4%-5%. Working capital will amount to 20%-25% of sales and the target net debt/EBITDA ratio is under 2.5.

The growth strategy focuses on two major objectives: selling 4,000 MW in 33 markets, and doubling MW under operation and maintenance contracts to 24,000 MW by 2013.

In the period 2009-2013, sales will increase by an annual average of 15% in the US, 20% in China, 166% in India and 50% in Central and South America.

Gamesa expects sales in Europe to decline in that period, by around 20%, as a result of the market slowdown and regulatory uncertainty, primarily in southern Europe.

North Sea offshore grid ‘high priority’

The European Network of Transmission System Operators for Electricity (ENTSO-E) has emphasised that electricity grids need to be significantly increased mainly in the North and Baltic seas if Europe’s renewable energy and climate change targets are to be achieved.

Daniel Dobbeni, president of ENTSO-E, says in case of the North Sea Region, wind power will be installed in places where the transmission grid had no reason to be built previously. As a result the concerned TSO’s face major challenges in extending their grid onshore, as a prerequisite for integrating all new renewable energy sources, including offshore wind.

The European Wind Energy Association (EWEA) mentioned that it is vital that European countries work together to create the North Sea grid, which will improve security of energy supply and bring more competition into the electricity market. 

Europe needs this international infrastructure to connect offshore power to onshore grids, said Christian Kjaer, chief executive of EWEA.

On 2 December 2010 the North Seas Countries Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, Sweden and the United Kingdom will sign a Memorandum of Understanding on the North Seas Countries’ Offshore Grid Initiative.

The Memorandum of Understanding will provide a framework for regional cooperation to find common solutions to cross-country questions related to current and future grid infrastructure developments in the North Seas.

To date in Europe there are 948 offshore wind turbines in 43 fully operational offshore wind farms, with a total capacity of 2,396 MW.

LM Wind Power expands operations in Brazil

Denmark-based wind turbine blade manufacturer LM Wind Power plans to expand its manufacturing base in the Americas through the construction of a new blade manufacturing facility in Brazil.

The facility will deliver blades to wind turbines in Brazil and throughout South America. Blade production is expected to begin in early 2012 and the new facility will be based on its modular factory concept recently used for construction of its facilities in the U.S., Poland, Spain and China and will employ up to 300 people.

Moreover, the company is in negotiations with wind turbine manufacturers who want blades between 37 and 70 meters length for installation on turbines in this growing market for wind energy.  

The final location for LM Wind Power’s first factory in Brazil and fourth facility in the Americas region has not yet been determined and various locations are currently being studied. Its other Americas facilities include Grand Forks, North Dakota; Gaspè, Quèbec, Canada; and Little Rock, Arkansas. 

County Durham wind farm construction concluded

E.ON has finished the construction and connection of its County Durham wind farm at Haswell Moor.

The wind farm features five 2MW turbines, which stand 110m tall to the tip of the blade. All five wind turbines are now up and running.

Meanwhile, construction is continuing at E.ON’s Butterwick Moor wind farm, near Sedgefield, also in County Durham. The first turbine is expected to start generating power later this month.

SSE snaps up Calliachar project

Scottish and Southern Energy (SSE) has acquired the 32MW Calliachar wind farm project from I & H Brown Ltd for an undisclosed sum.

The buy-out was executed through SSE’s renewable energy division SSE Renewables. The 14-turbine Calliachar wind farm project is located 5km south of Aberfeldy in Perthshire and was consented by Scottish Ministers in July 2010.

Construction of the wind farm is expected to start in 2012.

The Calliachar wind farm will be located close to SSE’s Griffin wind farm in Perthshire, which is currently under construction and consists of 66 turbines.

Gamesa, Northrop Grumman ink offshore prototype  deal

Gamesa and US-based shipbuilder Northrop Grumman Shipbuilding, a unit of security company Northrop Grumman, have partnered to launch the former’s first offshore prototype in the U.S.- its new G11X-5.0 MW offshore wind turbine.

The agreement calls for the installation of two prototype Gamesa G11X-5.0 MW turbines in Q4, 2012.

Gamesa is currently designing and developing a G11X- 5.0 MW offshore Wind Turbine specifically for the marine environment. The two companies are setting up an initial team of 40 engineers in the Hampton Roads area of Virginia over the next month that will perform all of the preliminary work required to install in the U.S. the first Gamesa G11X-5.0 MW offshore prototype, including site selection, permitting, final construction and installation of the prototype and testing.

Further, the two companies plan to jointly develop new generations of offshore wind turbines and Gamesa is already working on the rollout of another family of offshore turbines, featuring a capacity of 6-7 MW, with a pre-series potentially available in 2014.

GE enters Chinese market on JV

GE has set-up a joint venture with Harbin Electric Machinery Company (HEC), a subsidiary of China’s Harbin Power Equipment, to manufacture and supply wind turbines to its customers in China.

GE believes that the move will enhance its ability to compete in China’s $13 billion wind industry segment.

Under the JV, HEC will own 51 %, and GE, 49% of the company.  The new company will manufacture GE-designed wind turbines for near-shore and offshore applications in China.

Besides, as part of the overall wind partnership, HEC is purchasing a 49 % interest in the existing GE Shenyang Wind factory, which will continue to manufacture land-based wind turbines.

Reuters reported that the interest in Shenyang subsidiary has cost Harbin 160 million yuan ($23.87 million). Harbin Power's unit, Harbin Electric Machinery Company, would also invest 186 million yuan to cooperate with General Electric (China) to set up a wind power company in Jiangsu province.

GE will develop wind turbines for offshore projects in China using direct drive technology. The JV will also provide customer and sales support, as well as commissioning and maintenance service to help customers maintain their fleet.

GE highlighted that China, already the world’s largest wind turbine sales territory, is projected to grow an additional 500% as the country’s installed wind capacity increases from the 2009 level of 25 GW to 150 GW by 2020.