Global offshore wind market could be 80 GW by 2020

A report gives an in-depth analysis of the global offshore wind power market, covering three major regions: North America (the US and Canada), Europe (the UK, Germany, Denmark, the Netherlands, Sweden, Norway, Spain and Finland) and Asia-Pacific (China and Japan). The report covers the offshore wind cumulative installed capacity, power generation from 2001 to 2020 and major turbine manufacturers who installed turbines in 2010. The report also provides the policies and regulations for wind energy for each country discussed. It gives global offshore technology analysis, cost analysis and market force analysis with drivers and restraints. From 2001 to 2010, the installed capacity of offshore wind globally grew from 54 MW to 2,862.9 MW, 55.5% annually. The growth in capacity during this period was driven by the commissioning of new offshore wind farms with installed capacities of 2,119 MW in the UK in 2010 and 749 MW in Denmark in 2007. During the forecast period 2011 to 2020 the total global offshore wind installed capacity is expected to grow at 36.8% from 4,782.9 MW to 80,044.5 MW. The sudden rise in capacity in 2020 is mainly due to a capacity addition of 13 GW expected in UK and 2,000 MW in China. A few highlights in the $3,500 report include:
UK leading the race in the offshore wind market
The UK and Denmark are leaders in terms of installed capacity with 1,341.2 MW and 853.7 MW respectively in 2010. A large number of active wind farms are operational in these countries and they have identified a number of sites along their coasts which are favorable for offshore wind power. These countries have allocated budgets and set targets to encourage use of renewable sources for energy production. China is gradually increasing its offshore wind power potential and is planning to introduce new offshore wind farms.
China to compete with European countries in offshore wind
China has introduced a number of new offshore wind farms and is planning to reach more than 11 GW of offshore wind capacity by 2020. The government of China is committed to developing the country’s massive wind resources due to its need for more power to support its growing economy. In 2010, China’s share in the global offshore wind power market was 4% which is expected to rise to 10.3% in 2015 and 14.3% in 2020.
To drive wind power development, the Chinese National Energy Administration has selected locations in provinces with the best wind resources and set targets for each of them to reach by 2020. The expected high growth in the cumulative installed capacity in China is mainly due to the planned offshore wind farms, namely Pingtan offshore wind farm in the East China Sea with a capacity of 1,500 MW, Lufeng Jiahu Bay Offshore Wind Power Plant in South China sea with a capacity of 1,250 MW, Hebei offshore wind farm in the Yellow Sea with a capacity of 1,000 MW capacity and Bohai Bay offshore wind farm with a capacity of 1,000 MW.
Wind companies’ investment plans by new technologies
Wind companies across the world are investing millions of dollars in R&D activities regarding offshore wind turbines, vessels, and others. Turbine manufacturers are developing high capacity turbines which can sustain rough weather at sea. Shipping companies are developing vessels which are suitable for the development of offshore wind turbine installations and are expecting a revolution similar to that caused by the oil and gas industry a few years ago.
Government funding (especially Europe) to boost offshore work
Various governments have announced policies to encourage organizations to establish offshore wind farms. Along with huge tax concessions, governments have introduced new tariff regulations to compensate for huge investments. The U.K. government is offering 1.5 renewable obligation certificates (ROC) per MWh of power generated by offshore wind power compared to 1 ROC/MWh produced from onshore wind power. The German government has announced a sprinter bonus to encourage the faster development of offshore wind projects in the country.

GBI Research
www.gbiresearch.com

European experience valuable to U.S. offshore developers

As players in the US offshore wind industry work to complete the nation’s first commercial offshore wind project, a look at European development suggests one possible path for American offshore wind. A few observers point to the European programs as a model for U.S. development. European experience illustrates the technical and financial, feasibility of large-scale offshore wind.

A recent report by the European Wind Energy Association documents the growth of offshore wind in European waters in the first half of 2011. The European report presents a snapshot of the state of European offshore wind as of June 30, 2011. A few details from the report include:

3,429 MW total installed capacity in operation: 1,247 offshore wind turbines are fully grid connected with a total capacity of 3,294 MW. This capacity comes from 49 wind farms in 9 countries.

2,844 MW total installed capacity under construction: 11 wind farms are under construction in European waters. Of these, the UK is responsible for most growth in the first half of 2011. Seven projects are under development in UK waters. When all complete, they will add 2,238 MW of offshore wind capacity. Germany is second in terms of the size of projects under construction, with 448.3 MW of new offshore wind capacity.

101 turbines installed and grid-connected in the last 6 months. In the first half of 2011, 101 turbines came online, amounting to 348.1 MW of new capacity. This represents a 4.5% increase in new offshore wind capacity coming online over the same period of 2010. On average, each turbine added 3.4 MW of capacity, suggesting larger turbines are becoming preferred. Average capacity per new turbine in the first half of 2010 was 2.9 MW.

Example of a recent project: a recently-completed effort is Vattenfall’s 150 MW Ormonde project off England’s northwest coast. The Ormonde project includes 30 Repower 5 MW turbines. Offshore construction began last year, with the 30 Scotland-built steel lattice foundations installed last summer. Between March 23 and August 8, 2011, Vattenfall installed all 30 turbines and a substation. The project is now complete, and Vattenfall expects to begin producing power Summer 2011.

Floating platform tests in Norway: Commercializing deepwater offshore wind resources may require turbines on floating platforms. The first half of 2011 brought a milestone in that effort, with the installation of a Sway 0.015 MW floating turbine in Bergen, Norway. While the 15-kW turbine may not be cost-effective on a commercial basis, the developer sees the pilot project as a key stage in the development of a 10 MW floating wind turbine.

States, however, continue to examine the opportunities offered by offshore wind. Illinois, for instance, has passed a law creating a council to study offshore wind potential in Illinois’ Lake Michigan waters. Illinois House Bill 1558, passed both houses of that state’s legislature in May 2011 and has been signed by the Illinois governor. The bill initiates the Lake Michigan Offshore Wind Energy Advisory Council to examine criteria for:

• The Illinois Department of Natural Resources to apply in reviewing applications for offshore wind development of Lake Michigan lakebed leases;
• Identifying areas that are favorable, acceptable, and unacceptable for offshore wind development
• A process for ensuring public engagement in lakebed leasing
• Options for how the State shall be compensated for Lake Michigan lakebed leasing.

EWEA
www.ewea.org

Sodar measurements speed European wind-farm development

Formed in 2007 to finance the development of wind farms in Central and Eastern Europe, Continental Wind Partners (CWP) uses the Triton Sonic Wind Profiler as a part of its standard wind resource assessment practice. The developer is using advanced remote sensing (with eight Tritons) to expedite wind farm development, reduce project uncertainty and streamline project financing at sites in five Eastern European countries.

Triton is a sodar-based (sound detection and ranging) remote sensing system that measures wind at higher heights than most tower-based devices. By measuring wind speeds at the turbine rotor’s hub height and beyond (up to 200 m), the sodar unit reduces uncertainty in annual energy production forecasts. Its ease of deployment also streamlines wind-farm developments. The design have been in commercial use since April 2008 with over 200 installed worldwide.

“Although met-tower data remains a key part of wind project financing, remote sensing is becoming more necessary to reduce uncertainty by measuring hub height wind conditions,” says Konrad Gorzkowski, Wind & Site Engineer at CWP. “We like the unit because of its low power requirements, mobility, and data reliability.”

CWP uses the sodar units to support its project development activities, and in doing so has accumulated nearly 100,000 hours of data in Central and Eastern Europe. On sites with existing met towers, CWP has deployed a Triton at several locations around the site to better map the available wind resources, an approach known as micro-siting. “Triton always correlates well to the met tower measurements and provides valuable information on each site’s large height shear profile,” says Maciej Baginski, Wind Measurement and GIS Specialist at PS Wind Management, CWP’s Poland-based development group.

CWP expects the sodar units to give an advantage in securing project financing. In one example, a single unit was deployed at five different locations on a greenfield site that already had a met tower. Triton measurements reduced this project’s resource uncertainty by three percent, compared with use of the met tower data alone, which directly led to a considerably higher P75 figure.

Second wind Inc.
secondwind.com

In Europe, 118 offshore wind turbines connect to grid in first half of 2010

New offshore wind turbines total 333 MW, well over half the 577 MW installed offshore last year, continuing growth in offshore wind power despite the financial crisis. In addition, 151 offshore wind turbines totaling 440 MW were installed, but not yet connected to the grid, says EWEA, the European Wind Energy Association.

Overall 16 offshore wind farms totaling 3,972 MW were under construction. Of these, four became fully operational: Poseidon in Denmark, Alpha Ventus in Germany, Gunfleet Sands, and Robin Rigg in the UK.

To date in Europe, there are 948 offshore wind turbines in 43 fully operational offshore wind farms, with a total capacity of 2396 MW. Among the developers, E.ON Climate and Renewables developed 64% of the grid connected offshore wind capacity during the first half of 2010, followed by DONG Energy (21%), and power company Vattenfall (11%). Among manufacturers, Siemens accounted for 55% of the grid connected offshore wind capacity during the first half of 2010, Vestas (36%), and REpower (30.9%).

“There is no doubt this burgeoning industry is being held back by a lack of finance. Projects led by utilities are less affected thanks to their ability to fund investments from their balance sheets, but independent developers are constrained. Loans from public institutions such as the European Investment Bank are crucial, and have already helped a number of projects and this support must be extended further,” says Justin Wilkes, Director of Policy at EWEA.

Wind Turbines off shore in Germany

A consortium of companies, EWE, E.ON, Vattenfall, and DOTI (Deutsche Offshore-Testfeld und Infrastruktur GmbH), has completed construction of the first of 12 wind turbines for the alpha ventus offshore wind farm in the North Sea. It’s the first offshore wind farm in German waters. The 5-MW turbine is situated 45 km north of Borkum island. Wind turbine construction began in mid-April 2009 and all 12 turbines in the €250 million project are scheduled for work by end of 2009. “For the first time, wind turbines of this size are being constructed this far offshore in 30-m deep waters,” says Wilfried Hube (EWE), overall project leader of alpha ventus.

Ongoing activities at sea can be followed on the internet. A webcam on the research platform FINO1 is focused on the construction site. A link to the webcam can be found right here.

Renewable Grid Initiative Launched in Europe

Transmission system operators in Europe and nongovernmental organizations there have formed the Renewables-Grid-Initiative (RGI). It will call for a mandate for energy regulators to spur development of a European grid that can transmit power from wind farms and other renewable generators. “The Renewables-Grid Initiative sets the ground for speeding investments in grid infrastructure, to integrate renewable energy sources wherever produced, and whenever they become available, in full recognition of environmental concerns,” Antonella Battaglini, Senior Scientist at the Potsdam Institute for Climate Impact Research.

Some European companies insist that new strategic interconnections are needed to transmit electricity from remote locations to dispersed customers. Several renewable-energy sources are needed to hit targets of 20% renewable energy by 2020. About 35% of which will be electricity. A significant increase of wind-generated electricity into the European grid will come from upgrading transmission capacity.

The group says it is necessary to combine local and decentralized renewable supplies as well as solar and large-scale offshore wind. In addition, the costs of high-voltage dc and ac lines will be significant. Smart-grid equipment will make best use of the power. RGI says developing a smart grid is essential for renewable energy because it will come from many locations.