Offshore Wind - The New Generation.

We have moved

2011-04-17T14:01:00.000-07:00

We have now moved to be part of the UKOffshoreWind family at http://www.ukoffshorewind.com. We look forward to seeing you there!

Scotland the brave

2009-05-09T23:34:00.000-07:00

Hallelujah!

Apologies for the ramshackle combination of two iconic anthems ('Hallelujah' by Jeff Buckley and the one of the main contenders for the Scottish national anthem - 'Scotland the brave'), but they both seemed very apt today.

Where others have feared to tread, Scotland has stormed in and swept aside bureaucracy to move forward the grid connection for all wind energy projects which are currently awaiting national grid connection. God bless Ecosse and all who live there.

Although the article from Scotlands 'Herald' maybe errs too much on the dramatically positive side...

One scheme not due to be connected until 2018 is being brought forward to this year.

... making it sound as though the actual development project will move forward to this year, as opposed to the opening of the network connection, it is indeed very good news.

How refreshing it is for a parliament to put a halt to endless debating and nonsensical, decade-long planning and do something immediate and pragmatic for once. More action like that and we will see some exciting times ahead in the drive for offshore wind generation.

Vestas slams UK bureaucratic delays

2009-05-01T07:32:00.000-07:00

No sooner had the ink dried on my last post than this lands on my desk...

Vestas blames UK planning bottlenecks for loss of 600 wind industry jobs

... which made my previous article appear (at least in some part), rather fortuitous...

In a recent meeting between industry leaders however, it wasn't the cash that was being seen as the ultimate support, but changes to the bureaucratic framework that has hindered so many offshore wind projects. Developers expressed concerns over the cumbersome planning permissions process, grid connection delays and shortage of skills and services, which were seen as the greatest hurdles to maturing developments.

Ok, I'm happy to concede that it is a happy coincidence that this issue should rear its head so soon, but it illustrates the point.

Wind projects are being delayed. Delayed wind projects = wasted money.

The chancellor can increase the ROC bandings and dole out money to the industry till his hearts content, but unless this is accompanied by changes to the bureaucratic drudgery that is currently plaguing the industry then he may as well not bother. For projects to be development rapidly the industry needs;

Planning permission to be streamlined.
A skilled workforce to be created.
Grid connections to be made available more rapidly.

Without these changes, the companies will keep taking the subsidies, the projects will keep getting delayed and the offshore wind industry will fail to meet its potential at a time when its needed most.

UK projects to prosper under industry aid

2009-04-24T06:32:00.000-07:00

After experiencing an onslaught of blistering attacks during the height of the global economic melt-down, the sight of a long line of smiling faces may have heartened an otherwise dejected UK chancellor.

With not even the faintest hope that his new-found friends were savers, grateful for the rescue of their ailing banks, in the run-up to the countries budget announcements it appeared that the assembled masses were lobbyists, working for some of the most powerful industries in the land.

Whilst political lobbying has, for decades, been part of the pre-budget bartering process, the intensity of the negotiations were unprecedented due to the decimated state of the UK economy.

So whilst the green lobby jostled with the oil and gas lobby who fought off the road haulage lobby which was trying to side-step the car lobby, the chancellor had the responsibility of sorting the grain from the chaff, leaving offshore wind with...£525m. "Hoorah!" cried everyone (except the nuclear lobby), finally the industry has all the cash it was looking for!!

Err, cash? Hm, no. What the chancellor actually promised was to temporarily raise the Renewables Obligation Certificates (ROC) banding level for offshore wind, a move was designed to bolster the projected economics of offshore wind farms currently under development.

There is no doubt that the decision had been influenced by the on-running saga of the London Array Project, a high profile development in the Thames estuary, which has been plagued with delays and mired in doubts over its economic viability for months.

At times it proved difficult to seperate the developers genuine concerns over the projects commercial viability and their political posturing for further concessions (= increased profit margins).

What is certain is that had the Government not intervened with industry support, this national icon in the battle against climate change would not have been operational by 2012, when the eyes of the world would be fixed on East London for the 2012 Olympic Games.

Centrica had added to the political pressure with a demand for changes to the ROC banding scheme and eventually the treasury relented, awarding offshore wind operators 2 ROCS for every megawatt of electricty produced. The change will be temporary (only available between 2011 and 2014), but it seemed to appease wind developers and secure the London Array Project for good...

The firms behind the world’s largest wind farm, the project, are poised to approve the long-delayed project after Alistair Darling announced an aid package for the industry. A final investment decision on the £3 billion project will be made soon and construction is expected to begin later this year. If all goes to plan, the first phase will be completed in time to provide power to London for the Olympic Games in 2012. - The Times, 27th April 2009.

No sooner had the industry digested the implications of the ROC re-rating, than the British Wind Energy Association announced that five UK offshore wind projects had been saved by the budget. These were:

- London Array, Thames Estuary – being developed by E. On, Dong and Masdar;
- Gwynt y Môr, north Wales – RWE npower renewables;
- Walney II, Cumbria – Dong Energy;
- West of Duddon Sands, Scotland – ScottishPower, Dong and Eurus Energy; and
- Lincs, Lincolnshire – Centrica Energy.

Cynics could have argued that these projects may have been sat upon until the Government had made up its mind on the right level of industry support required, but BWEA spokesman Charles Anglin was in no doubt that the new fiscal reforms had made a difference...

"If these firms had not been able to come to financial close on their projects, not only would they have been delayed, some of them would have been cancelled."

Anders Eldrup, CEO of Dong Energy, said: "It is encouraging that the investment regime has now been created to allow us to implement our strategy of considerably expanding Dong Energy's position within sustainable energy. With the two ROCs, we can now begin the construction of Walney I and II."

So for the moment, Alistair Darlings olive branch appears to have appeased the industry, the public, the media and his colleagues. Whether it will be enough in the longer term is still to be seen. Half a billion pounds of support does'nt seem to be all that much when you consider that it will cost nearly twice that amount to get each of the aforementioned wind farms operational, but other aid is being made available. Earlier this month, the European parliament approved €565 million in aid for offshore wind projects under the EU Economic Recovery Plan and the UK will undoubtedly benefit from these funds.

In a recent meeting between industry leaders however, it wasn't the cash that was being seen as the ultimate support, but changes to the bureaucratic framework that has hindered so many offshore wind projects. Developers expressed concerns over the cumbersome planning permissions process, grid connection delays and shortage of skills and services, which were seen as the greatest hurdles to maturing developments.

Increasing the rewards for operational offshore wind farms is one thing, providing support for early-stage projects is a whole new ball-game altogether. As to the question of whether the Government can step up to the mark and meet these industries needs as well? Well the signs are good, but for the moment its still a case of lets wait and see.

European offshore wind roundup - April 16th

2009-04-14T08:12:00.000-07:00

UK

Scottish & Southern, Fluor team up in wind farm bid

Scottish & Southern Energy (SSE) (SSE.L) have teamed up with U.S. civil engineering group Fluor to develop new UK offshore wind farms, the British company said on Wednesday.

SSE said its renewable energy development unit Airtricity had joined the UK operating arm of Fluor Corporation (FLR.N), Fluor Ltd, to form a consortium called Seagreen Wind Energy.

The consortium is bidding for rights to build farms under the Crown Estate's round three offshore wind farm development programme.

The 'Seagreen' consortium is in addition to the 'Forewind' joint venture announced in February between Airtricity, RWE nPower renewables and two of Norway's largest companies, Statkraft and StatoilHydro. These collaborations are further evidence of aggressive expansion into offshore wind, after the company recently announced consent to develop a second offshore wind farm in the Dutch sector of the North Sea.

Comment: Whilst the likes of BP, Shell and Centrica feed the national press with column inches to appease the renewables doomsayers, the real goliaths of the offshore wind industry are seizing the initiative whilst they can. The oil and gas super-majors may feel that prudence is the name of the game at the moment or that the profit margins on wind cannot compete (or indeed threaten) with their traditional offerings. However, with the offshore wind revolution developing at a lightening pace, this is one market where where the option of buying in late will incur a very heavy premium.

Wind of change set for Lowestoft

A WIND of change is all set to blow through the port of Lowestoft in the UK, when the port will becomes the operations centre for the Greater Gabbard Offshore Windfarm.

Once completed, Greater Gabbard will be the world's largest offshore wind farm. Its 140 Siemans turbines will give it a 500 MW power rating and will deliver electricity to the South-East of England from 15 miles out at sea.

Greater Gabbard has had a number of stakeholders over recent years, but is now owned by Airtricity (subsidiary of SSE) and npower renewables (subsidiary of RWE).

Lowestoft is one of the key areas set to benefit by the explosion of interest in offshore wind, with Hull and the North-East of Scotland predicted to be other beneficial areas.

Germany

Offshore work on alpha ventus to restart soon

Work on the Alpha Ventus project off Borkum Island, Germany is set to resume this month after weather delayed the 60MW project late last year. The project, a collaboration between Germany's E.ON and EWE and Swedens Vatenfall will continue throughout the rest of the year and should be operational by the end of 2009.

Beluga and Hochtief in joint venture to develop offshore wind

Heavy-lift carrier Beluga Shipping GmbH and German construction giant Hochtief are teaming up in a joint venture to install offshore wind turbines. A Beluga spokesperson told European news sources that the carrier would be signing an agreement to pay approximately $1 billion on four specialized jack-up vessels, probably to be built at German shipyards, which will be used in the venture.

Comment: As in the rest of Europe, Germany is moving its focus from onshore to offshore wind. One of the major problems hampering this transition is the lack of support services (and vessels) available to install and maintain the hundreds of turbines planned for erection over the next decade. This deal is one small step to alleviating this problem and will act as a catalyst for further deals in the near future.

The more service support there is for offshore wind, the more competitive the market will become. This will lead to lower capital expenditure for project developers and will inevitably bolster the business case for offshore wind. Which can only be good news for all involved.

UK Majors Warn on Offshore Wind

2009-03-18T06:31:00.000-07:00

With the first signs of Spring just around the corner and some upbeat news from the Crown Estate, one could have been lulled into a false sense of security over the success of offshore wind. A sure-fire energy winner and one which the Government cannot afford to fail? Not according to Centrica and Shell.

Whilst the CE yesterday announced huge interest in its third offshore wind farm licensing round, the two energy giants pre-empted the marine development rights holder by launching high-profile warning shots across the bow of her majestys government.

"Offshore wind is at risk in the current environment," Centricas Chief Executive, Sam Laidlaw said at the Future of Utilities conference in London.

At around GBP3 million a megawatt offshore developments are roughly double that of onshore wind and the recent banking crisis has made project finance difficult to come by and more expensive. The issue has been compounded by the Crown Estates placing of the 3rd round preferred development zones in deepwater areas, increasing potential project costs by 25%. Laidlaws argument is that the return is currently so marginal that utility companies are better off investing in other forms of energy, an argument backed up by his companies stake-building in UK gas producer Venture Production, earlier today.

Laidlaw argued that if the UK are going to meet the countries targets of generating 20 percent of the nation's energy from renewable sources by 2020, the government need to review the number of Renewable Obligations Certificates (ROCS) awarded for each megawatt (MW) of clean energy produced. Offshore wind developers currently receive 1.5 ROCs per MW of wind energy, compared to the 1 ROC per MW for onshore wind.

"A ROC regime of two times banding would help the U.K. meet its renewables targets with offshore wind," Laidlaw said.

His sentiments were echoed by Jeroen van der Veer, the Chief Executive of UK behemoth Royal Dutch Shell at the companies annual strategy update. Asked about the role of renewables in the companies future energy mix, the CEO replied that the company wouldn't be spending much on new investments for wind and solar energy because of the poor investment returns, focussing instead on biofuels. Shell last year turned its back on the UK wind energy market when it pulled out of the London Array project, citing more favourable returns from projects in the US.

Whilst the Crown Estate later lightened the atmosphere when it announced the interest of 40 companies and consortia in bidding for the 3rd round of offshore licenses, even they expressed a word of caution.

[The offshore wind plan] “is also heavily dependent on implementing solutions to a number of issues including; grid, consenting processes, supply chain and economic support for the projects.”

So whilst offshore wind continues to enjoy its moments in the sun, there's always a reminder that the dark clouds of failure are never too far away.

Crown Estate Attracts Significant Round 3 Interest.

2009-03-16T09:32:00.000-07:00

The UKs Crown Estate today announced that it had attracted significant interest from developers in its third offshore wind farm licensing round. Releasing information for the first time since the application submission deadline expired, the organisation said that it had "received multiple bids for each of the nine zones".

The Crown Estate, who are spear-heading the countries drive to develop 25GW of renewable generation by 2020, also revealed that it had:

Received a total of 40 zone bids from 18 different companies and consortia.
Attracted international companies from at least nine different countries.
Received expressed commitment to bids from potential alliance partners and supply chain participants.

Commenting on the bidding round, Energy and Climate Change Minister, Mike O’Brien said:

“It is very encouraging there is so much interest in the latest round of offshore wind development. It is expected the UK will need to generate around 30% of its electricity from renewable sources by 2020, with the majority coming from wind power. Such an expansion represents a massive long term investment opportunity which has the potential to generate tens of thousands of jobs in the offshore wind sector as well as helping in the fight against climate change."

Whilst the Government has succeeded in making the development process easier through its completion of the Strategic Environmental Assessment, the CEs Director of the Marine Estate, Rob Hastings admitted that further support may be needed for developers. With regards to the issues surrounding grid connections, consenting processes, supply chain and economic support Mr Hastings added that:

"The Crown Estate is committed to overcoming these key challenges, and we are working closely with Government and other stakeholders to look at the issues surrounding supply chain developments and the economic opportunities within. "

The Crown Estate now intends to assess all applications and draw up a shortlist of companies for each zone. Final selection and zone exclusivity awards will be made in late 2009.

Seaenergy/EDP JV to be Announced Tomorrow

2009-03-15T07:27:00.000-07:00

Hot on the heals of our article late on Friday, the Sunday Express have revealed that the joint venture between Seaenergy Renewables and Portugese wind farm developer EDP will be announced tomorrow. Whilst the article does not mention which sites SE and EDP will bid for, Depthcharge understands it will be for the development zone covering the Beatrice field in Scotlands Moray Firth. The licence is up for grabs in the Crown Estates 3rd licensing round.

PORTUGUESE WIND-ENERGY FIRM BLOWS INTO BRITAIN.
by Tracey Boles

The world's fourth-largest wind-energy company,Potugal's EDP Renewables is poised to enter the UK market through a tie-up with a Scottish-based renewables firm.

The Scottish firm, SeaEnergy, is set to announce formation of a consortium with EDP tomorrow. The team is to bid for the latest round of offshore wind licences, pitting it against energy giants such as RWE subsidiary Npower.

SeaEnergy, a pioneer in offshore wind energy is 80 per cent owned by Ramco Energy, the Aberdeen based listed energy investment company.

It was formed by Ramco in june 2008 around the Beatrice Wind Farm Demonstrator Project team , which developed the world's first-deep-water offshore wind farm. EDPR is part of EDP Group, Portugal's largest industrial group and one of Europe's main energy companies.

Breaking news - Scottish/Portugese JV to Bid for Beatrice Development

2009-03-13T09:05:00.000-07:00

The race for some of the UKs most hotly contested wind energy licences gained pace today as it was revealed that Seaenergy Renewables, the Scottish offshore wind developer are teaming up with Portuguese partners EDP renewables to bid for the development of the Beatrice field in Scotlands Moray Firth.

In his blog, Highlands & Islands MSP Rob Gibson revealed that;

"[He] was able to discuss the developments planned by SeaEnergy and their Portuguese partners EDP renewables, the fourth largest wind farm developer in the world. Their target is to turn the successful Beatrice Field experiment from two offshore wind towers to hundreds. They have the licences from the Crown Estate Commission and the capacity to produce three to five gigawatts within ten years. "

As discussed in Depthcharge recently, the extension of Beatrice would provide a massive economic boost for the area, benefiting many companies affected by the downturn in North Sea revenues. A development of the size proposed by the joint venture could result in hundreds of new jobs being created for the nearby areas of Nigg and Invergordon.

Beatrice is currently the home to the two-turbine Beatrice demonstrator project, a project developed by Talisman Energy and Scottish and Southern Electric. Now considered a bastian of deepwater wind farm development, the trial comprised a series of feats never before attempted offshore, including:

The first ever use of the world’s largest wind turbines (5MW) offshore;
The first ever use of a “jacket” sub-sea structure for an offshore wind turbine;
The first ever deployment of a wind turbine in deepwater (45 metres); and
The first ever assembly of a turbine, tower, rotor, and blades onshore for installation in one piece offshore.

Shortly after the Beatrice project was completed, key members of the Talisman and SSE team struck out on their own to form Seaenergy Renewables, now a subsidiary of AIM-listed Ramco Energy.

Though a relatively new company, Seaenergy have already achieved notable success, winning the second and third largest offshore wind licences in the Scottish territorial licensing round last month, partnering Npower Renewables and Airtricity.

Companies Converge in Battle for Offshore Wind

2009-03-06T01:06:00.000-08:00

With the success of the Scottish offshore wind licensing awards still buzzing around the industry, the winners have shifted their sights to a new prize, the UKs 3rd offshore wind licensing round.

In a similar scenario to that of the Scottish round, the UKs 3rd licensing round has proved extremely popular with a plethora of companies seeking to get involved in the burgeoning offshore wind industry. Whilst this licensing round is designed to secure developers, the associated seminars held by the Crown Estate in Edinburgh and London have attracted many participants from a wide-range of possible support services.

The licensing round, which is offering some prime sites beyond the UKs 12 mile territorial limit, has been designed to encourage larger developments, set in deeper water. Whilst such developments will go a long way to pacifying energy firms, environmentalists and politicians alike, the required capital investment will be huge, posing too much of a risk for one company alone.

So, with only ten developments up for grabs and with each one estimated to cost in excess of £1bn, a number of energy companies have this week joined forces and submitted joint bids to the Crown Estate. Whilst it is still early days and many companies have not shown their full hand, the consortiums currently look like this...

Group 1

E.ON UK
Dong Energy
Fred Olsen Renewables

Group 2

RWE
Scottish and Southern Energy
StatoilHydro
Statkraft

Group 3

WPD
Clipper Windpower

Whilst only 3 consortiums have publicly announced their joint ventures, rumour has it that at least one additional consortium will comprise of Aberdeen-based Seaenergy Renewables (giant-killers in the Scottish licensing round) together with 'a major European-based wind energy producer' (source: Ramco Energy, Ambrian broker note).

This recent spate of co-operation between Europes wind energy majors is a major indication that the UK is the newest battleground in the fight for offshore wind. Favourable regulation, together with an attractive fiscal package, the UK is now considered one of the hottest properties in Europe to build wind farms. Whilst Denmark has had a head start, the UK has the advantage of being in the right place at the right time.

So what is the benefit for the UK economy?

With the wind farms planned in the 3rd round being bigger than ever before, major utility companies are signalling their intention to pour billions of pounds into the country to develop their projects as quickly as possible. This will provide a massive boost our energy industry and the related support-services sector.

Whilst the UK economy will benefit from its domestic growth of wind power, its biggest opportunity lies in the development of a specialised skills base. This has already been recognised by the European energy companies who have been attracted to the UK both by the quality of its offshore wind and its offshore skills base from the oil and gas industry.

Recruiting staff with the right skills set is a recognised challenge in the offshore wind sector. However, skills from the O&G industry could be easily adapted to accomodate offshore wind and with low oil prices affecting the commercialisation of fields in the north sea, wind energy companies would be welcomed employers.

The result of this would be one of the largest offshore wind energy workforces in the world, which in turn could be exported abroad. It has unrivalled potential and is undoubtedly one of the reasons why the Government has demonstrated such commitment to the industry. Other, high-carbon generators such as China, Thailand and the USA are now chasing offshore wind, but have neither the experience or expertise needed to succeed. Whilst the UK has only taken its first, tentative steps towards offshore wind, it has made significantly more progress than many others and for the UK economy, this could be where the real value lies.

Scotlands new dawn.

2009-02-23T04:34:00.000-08:00

As daylight broke on 16th February 2009, a year of careful planning and guarded negotiations came to fruition. For the Crown Estate it was the climax of a job well-done, for Scotland it was a glimpse into its new industrial future.

At 8am the Crown Estate announced the winning bids for Scotlands first offshore wind licenses. The ten-strong list of winners boasted most of Europes wind energy majors, with a sprinkling of home-grown giant-killers too.

Had these licences been located elsewhere or had they been onshore, then one could have been forgiven for barely noticing this rather understated event, but it wasn't elsewhere, it was Scotland and its significance couldn't be ignored.

Up until now, Scotland has barely figured on the global wind energy scene and yet it boasts some of the best wind resources in Europe. Key to its lack of development had been an unwillingness by the Scottish Parliament to endorse the erection of turbines across some of the most beautiful landscapes in the world. Which is why the offshore licensing round proved to be such a milestone.

Historically, onshore wind farm projects have received a hostile reception from the 'not-in-my-backyard' (NIMBY) brigade and stringent planning regulations have caused severe (if not terminal) delays. By moving the whole shebang out to sea, the Crown Estate were alleviating some of the risk posed by NIMBYism, whilst capitalising on the stronger, more consistent offshore winds.

So Scotland was launched into the spotlight of the wind energy industry and Alex Salmond took a significant step towards realising his dream of turning Scotland "into the "Saudi Arabia" of marine energy". But whilst the Scottish first minister may have appeared in a greenish hue of SNP yellow in front of the TV cameras on the 6th Feb., there is significantly more to play for than a smog-free highland games in 2050.

Scotland has a problem and a pretty big one at that. North Sea oil deposits are being depleted or are no longer sustainable at current low oil prices and before long thousands of jobs in the North Sea oil industry will be under threat. This will hit Scotland hard, particularly the north-east, which has enjoyed unrivalled prosperity over the past few decades and could lose its highly skilled work-force. If this happens, the Scottish parliament will feel the backlash, something they wish to avoid at all costs.

If any industry makes a natural bedfellow to the oil and gas industry, it is offshore wind. Many new technologies and methodologies employed in the O&G industry could be transferred with a little 'tweaking' to the offshore wind industry and one company has already been created to do just that.

However, whilst the technologies make excellent bedfellows, the mindsets don't. In this respect, wind and oil & gas are at a juxtaposition to each other. Some view the former as a threat to their traditional engineering industry, but if offshore wind is to succeed, business leaders need to place their prejudices aside and prepare for its arrival.

Offshore service companies are in an ideal position to adapt to the changing market and expand their operations to accommodate offshore wind. If they are proactive now, they can grab a slice of the burgeoning market before others follow. If they don't, highly lucrative opportunities could be wasted, resulting in an economic and social fallout rivalling that of the docks and fishing industries.

Scotland has made an excellent start to what could be a revolutionary period in its history. Success in harnessing the financial might of wind will be rewarded by an industry for the future.

Failure to do so will punish those who can afford it least.

Scotland - the king of wind

2009-02-20T11:54:00.001-08:00

Never has the rawness of Scottish weather been so charmingly and eloquently painted than by the great Scottish Bard himself, Robert Burns...

The wind blew as 'twad blawn its last;
The rattling showers rose on the blast;
The speedy gleams the darkness swallow'd
Loud, deep, and lang, the thunder bellow'd:
That night, a child might understand,
The Deil had business on his hand.

Tam O' Shanter - Robert Burns, 1790

Whilst Rabbie (as he is so fondly remembered), described the wind as a ferocious, dark character that tormented the small Scottish town of Ayr, the reality is that it is about to be harnessed by the nation he so deeply adored. However, while poetic license may have been enough to convey the power of Scotlands weather in the 1700's, in the midst of an offshore wind revolution Burns literary niceties no longer cut the mustard. For the major power companies of today, collating accurate wind data is not only an exact science, but it is the life-blood of offshore wind farm development.

Gone are the days of sticking turbines up on the nearest hillock and praying for some solid gusts. Wind analysis is now an expensive process and involves taking a vast array of measurements which map wind speed against frequency and direction and measures the long-term consistency of supply. Studies have shown that the UK experiences steady, stiff breezes that produce a more reliable wind energy supply than the more extreme blusters of Denmark and Germany, but studies around Scotland have been few and far between.

Whilst Scotland has laid claim to having the highest average wind speeds around Europe (see graphic below), industry insiders believe the upside could be even higher. They argue that the previously adopted methodology of measuring wind speeds at sea level as opposed to hub-height has given skewed results. Wind speed increases with height above the ground or sea, due to the reduced frictional effects and many believe that wind measurements should have been taken at hub-height (the height of the turbine blades) instead. Current data, they argue, gives a vast underestimate of Scotlands real wind resource.

Up until now there has been little demand for anything more comprehensive than sea-level measurements. However, the upcoming Crown Estate licensing awards for the territorial waters of Scotland have bought the subject back into sharp focus. The North sea is a hostile environment at the best of times, which makes the technical challenges of installing wind turbines all the more acute. If the majors are going to commit the millions of pounds needed to develop in such an environment, they need to be convinced of the areas commerciality. In the world of wind farms, commerciality lies in the wind.

In response to this need, new efforts are being made to ascertain wind speeds around the coastline - at hub-height. One of the largest programs involved in this research is 'NorseWind', a 7 million Euro project, partially funded by the EU. Launched by a consortium of industrial and academic stakeholders, NORSEWInD has been designed to deliver high quality hub height offshore wind data, suitable for project decision making.

The four year project aims to utilize leading edge technology effectively to reduce uncertainty offshore. Using remote sensing techniques such as LiDAR (Light Detecting and Ranging), NORSEWIND aims to improve confidence in the wide-scale use of such technology for commercial projects.

Whilst the NORSEWIND project will come too late to deliver results for the Scottish territorial licensing round, it will be provide valuable data for future wind farm developments in the region, as well as carrying out simultaneous tests in Ireland and the Baltic region. In the meantime, the hub-height data collected from the ground-breaking Beatrice project in the Moray Firth (which spawned NORSEWIND) will be invaluable to those who succeed in winning territorial licences in 2009.

If and when quality hub-height data is collated for the region, it could have a major impact on the perception of Scotland as a potential offshore wind producer. Some suspect that Scotland has the potential to rival Denmark for both the strength and consistency of its winds. If proven, it will undoubtedly bolster the countries chances of developing itself into the King of Wind.

Investing in jobs, but what about training?

2009-02-20T11:52:00.000-08:00

The Prime Minister Gordon Brown has revealed that the Government will invest in a job creation programme to help the UK fight itself out of recession...

http://news.bbc.co.uk/2/hi/uk_news/politics/7810178.stm

Mr Brown told The Observer newspaper of a £10bn programme of investment in new technologies and green projects. He said "improving the environment was part of the solution to the recession". He went on to explain that "Investments will be made in eco-friendly projects such as electric cars and wind and wave power, which will create jobs."

Whilst it is true that significant opportunities for job creation exist within the wind industry, it is debateable as to whether a meaningful impact can be made by industry investment alone.

Wind energy is a highly-skilled area. It is not an industry where a tranche of apprentices can be taken on and put into work with little training. Rather than going for cheap headlines and quick short-term wins, the government needs to address the real needs of the industry.

What is required is a tandem approach; industry investment coupled with investment in training. The Government needs to support local schools/colleges and universities, who, (working with industry partners) can develop a range of academic and vocational courses suited to the needs of the industry. Only then can wind farm developers, operators and job-seekers alike, benefit from the influx of support thats sweeping across the UK.

How the UK isn't taking 'no' for an answer

2009-02-20T11:48:00.002-08:00

A bitter wind whipped across the faces of Stephen Timms and Andrew Davies as they posed triumphantly for photographers on a cold November morning in 2003. Dwarfed by an array of 30 2MW turbines towering forty metres above their boat, the UK Energy Minister and Welsh Development Minister soaked in the awe-inspiring sight of the UK's first major offshore wind farm.

As the small vessel made its way from the coast of Prestatyn and into the Irish Sea, it may as well have been etching a blueprint behind it. A blueprint which others would follow when staking their claim in the battle for offshore wind.

The North Hoyle Offshore Wind Farm was on the cusp of starting electricity generation for 50,000 welsh homes. The project was a ground-breaking development in the diversification of the countries energy mix and had therefore gained strong vocal support from a broad coalition of beneficial stakeholders. With the UK Government, Greenpeace and industry leaders throwing their weight behind it, the project had the best possible start in what would prove to be a challenging industry.

Since those initial jubilant scenes at North Hoyle five years ago, the road to meaningful offshore wind powered generation has been rocky to say the least. Only 25% of licenses awarded by the crown estate in 2001 are now operational and none of those awarded in 2003 have made it passed the 3rd planning stage. Hampered by the same bottlenecks that delay so many infrastructure projects in the UK; a lack of money, a lack of skills and too much bureaucracy, it is understandable why many have questioned the future role of offshore wind.

When you consider the obstacles encountered by developers during those early years, many could be forgiven for turning their backs on new projects altogether. Some have chosen to do just that, yet it has failed to unsurp the industry as the leading light in the UK's clean energy policy. Despite opposers continued protestations over its suitability as a reliable generation source, it has managed to graduate from the periphery of the energy sector to the main stage. However, whilst the worse may be behind it, the best years are not yet quite within the reach of the major wind energy players.

If 2003 was the year of breakthrough for the offshore wind industry, 2008 was a year of contradictions. Whilst the government introduced a raft of initiatives designed to attract investment into offshore wind, the increasingly treacherous global economic climate prompted several influential stakeholders to review the industries business case altogether.

In May Royal Dutch Shell caused controversy when it pulled out of the London Array offshore wind farm, stating that the costs had become too high. In November, BP confirmed it would not be investing in the UK's wind energy sector in the foreseeable future, choosing instead to focus all its wind energy investment on a US market that it regards as more " economically viable" and this month, Centrica said that it is to review its projects amid a sharp increase in costs. The pattern is repeated throughout Europe with Eon and Iberdrola, owners of Scottish Power, among those which have said they will be reviewing their rate of spending on renewables.

Compounding the problems caused by the economic slow-down, the UK Government has come under sustained attack for placing too much reliance on wind energy in its plans for reducing greenhouse gases. Critics argue that Britains new-found love of wind will lead to a failure to meet the countries planned 34% cut in carbon emissions by 2020. Sceptics insist that a combination of bureaucracy, technological risk and lack of finance will ultimately result in targets not being met.

Whilst such assertions are not wholly unjustified, they fail to take into account the position that the government now finds itself in. Backed into a corner by agressive European renewables targets, an increasingly unstable energy supply from Russia and a faltering economy, the UK desperately needs a radical reform of its energy industry. However, with a wide-range of energy sources at its disposal, what has forced the Government to throw its weight behind wind?

The answer is time. Or more precisely a distinct lack of it. If the UK is going to have any chance of hitting the ambitions targets set by the EU by 2020, they'll have to ramp-up projects at a lightening speed. Many have expressed doubts over the Governments ability to deliver on its good intentions, but as stated by Mike O’Brien, Minister of State for Energy and Climate Change last october;

"I want to be absolutely clear today that wind will make a crucial contribution to meeting our 2010 target for 10% renewable electricity. And wind will be crucial to meeting our share of the 2020 EU target. It is no secret that we have set ourselves challenging, ambitious targets. But we fully intend to meet them."

With planning and construction times for nuclear power stations currently averaging 10 years and gas powered stations furthering the countries dependence on foreign gas supplies, offshore wind is now seen as the only realistic chance we have of hitting the EU targets on time. However, the question still remains, with so much hesitation still being shown by the major offshore wind farm developers, what regulatory improvements and fiscal incentives are required to ensure that offshore wind projects are delivered on time and within budget?

Firstly, the Government needs to acknowledge the additional costs that offshore wind farm developers face when compared to other, less expensive options. Where a nuclear power station will cost £1.5m per megawatt to build, an offshore wind farm can cost over three times that amount. So why are both subject to the same ROC (Renewable Obligation Certificate) banding, a fiscal incentive which allows operators to sell the 'greeness' of their output (in addition to selling the electricity itself). Determind to help make the economics off offshore wind work, the Department for Energy and Climate Change recently announced that they are;

"...intending to ‘band’ the Renewables Obligation (RO) to provide greater support for emerging technologies such as offshore wind and wave and tidal. Our proposals would increase the number of Renewables Obligations Certificates (ROCs) for offshore wind to 1.5, recognising the special challenges involved in developing offshore projects."

This would mean that for every unit of electricity sold from the wind farm, they would have 1.5 'green certificates' to sell on the open market. Thousands of UK companies are required to own a certain number of these certificates or pay for their carbon output (which is markedly more expensive than the certificates themselves), so the DECCs new stance on ROCs has been generally well-received by the energy sector. However, many insist that the change it is too late and not comprehensive enough.

Whilst the changes to ROC allowance provides the companies with a quicker return-on-investment, developers are also demanding some support in the planning and development stages of their projects. To this end, the Crown Estate (with a little encouragement from the Government?) have agreed to bear the cost of up to half of all pre-construction development costs for projects awarded under the UKs Round 3 licensing process. A move which (according to the British Wind Energy Association);

"...takes away much of the cost and uncertainty with third-round projects"

This incentive from the Crown Estate prompted a surge of interest in Round 3, with almost 100 companies indicating an interest to build wind farms far into the North Sea.

The Governments final initiative has been to tackle maybe the biggest hudle in offshore wind development - the planning process. For years, wind farm developments have been hindered by a lengthy planning process, designed to attract the wrath of NIMBY protestors and believe it or not... environmentalists. At the British Wind Energy Association conference last October, the Prime Minister indicated that no planning bottle-necks would be accepted in the Governments drive to develop its fledgling offshore wind industry. As quoted from Mike O’Brien;

"I know that the planning system is another key barrier to renewables deployment in the UK. And that is why we have proposed radical reforms in the Planning Bill to speed up and streamline the planning system in England and Wales.

As part of these reforms, we are proposing the establishment of an independent Infrastructure Planning Commission (IPC) in England and Wales to take decisions on nationally significant infrastructure projects for energy - including large scale renewables of over 50 megawatts."

Such a move would be a radical reform of the UKs current planning process and a breathe of fresh air for those who have witnessed the continued delays and cancellations of wind farm projects across the country. It is also a clear indication of the Governments intention to promote offshore wind as the energy of the future - at all costs.

The multi-faceted approach in improving the return-on-investment, reducing development costs and reforming planning laws will, over time, reap massive rewards for the country as a whole. Offshore wind will bring employment, energy stability, revenue and reduced carbon emissions just when its needed most.

Through listening to its stakeholders and making the concessions needed to grow offshore wind during these early, tentative years, the Government is sending out a clear message. Offshore wind is here to stay and despite the derision of the doomsayers, the UK won't be taking 'no' for an answer.

The Winners in the Great Wind Giveaway - Nigg

2009-02-20T11:48:00.001-08:00

As dawn broke over the calm waters of the Moray Firth, the 7,000 ton heavy-lifting barge 'Rambiz' sat idly at the Nigg Fabrication Yard, Scotland. A culmination of 6 years planning and hard work, the final stages of the Beatrice Wind Farm Demonstrator Project were already underway. With a 90m turbine hub, 60m blades and a specially licensed Quattropod to transport 12 miles offshore, it was going to be a both a challenging and ground-breaking operation. Never before had a turbine of this size been installed in such deepwater (45m) nor in one 'pre-assembled' piece. Success wasn't guaranteed, but a success it was.

The 'Beatrice project' (as it became known) proved to be a pioneering development in the history of offshore wind. By demonstrating the methodology behind the project, the Beatrice team (now called Seaenergy Renewables) proved that operational time could be maximised, objections could be minimised and larger turbines could be utilised in a deep offshore environment.

In addition to its technical achievements, the project also demonstrated the possibility of wind turbines providing power for offshore oil infrastructure. The two Beatrice turbines would generate power for the Beatrice oil platform 3km away, thereby extending its operating life by many years. A refreshing mix of old energy meeting new.

Yet whilst revolutionary in its modus operandi, many of the skills behind the wind project were well-established and had been nurtured and honed from that bastian of offshore engineering, the oil and gas industry. Nigg and its neighbour, Invergordon, had for years been used as bases for vessels travelling out to North Sea platforms, but Nigg in particular was a well-worn camp for trips to the Beatrice oil field. At its peak, the Beatrice field produced 50000 barrels of oil per day (bpd), now that figure is closer to 5000 bpd. Whereas the platform used to bustle with a crew of 240, today it operates on a skeleton crew of 20.

As the depletion of North Sea reserves accelerates, so does the deterioration of the surrounding industry. The Nigg Fabrication Yard is now up for sale and a huge row over ownership has ensued, further threatening its future.

This year the crown estate launched the 3rd UK Offshore Wind Farm Licensing round and accompanying the developer application material was a map of the UK, illustrated with the Crown Estates (CE) 'preferred development zones'. Drawn in the top right-hand corner of the map was a large, rectangular box, overlapping the Beatrice oil field. When the demonstrator project was started, Talisman had stated that its two turbine project could lead the way to a 200 turbine development in the same area, depending on its commerciality. The latest maps from the CE indicate that commerciality may well have been proven. It did not select sites at random and reams of industry data was collated from current developments before preferred sites were chosen.

If true, it makes the demise of the Nigg fabrication yard so much sadder. Will it miss out on a glorious resurgence of the Beatrice and outer-Beatrice area? As the older industries plod towards a comfortable retirement, will Nigg miss out on the newer, brighter, fresher industry thats waiting in the wings?

Over time, wind energy has the potential of creating tens of thousands of jobs. In Germany alone, the wind industry provides 70,000 jobs and there have been estimates that a redeveloped Nigg could provide up to 800 new jobs.

At the end of the day it seems that Beatrice needs Nigg, Nigg needs Beatrice and they both need wind. With the Crown Estates decision on a full-scale Beatrice wind farm development to be made later next year, I hope there will be a queue of people lining up to rejuvinate the area.

For this is not about the prosperity of a single North-East town, its the creation of an era, which will benefit the whole of Scotland for decades to come.

The Winners in the Great Wind Giveaway - Hull

2009-02-20T11:32:00.000-08:00

An icy wind sweeps across the mouth of the Humber, immersing the residents of Kingston Upon Hull in an unrelenting freeze. Located in East Yorkshire and nestled on East coast of the UK, the population of 250,000 'Hullensians' are hardened to the ferocious winds which batter the area. And yet, whilst accustomed to the harsh conditions carried from across the North Sea, this new storm is set apart from the rest. This freeze isn't meteorologic, it economic and its starting to bite hard.

A highly prosperous city between the 18th century and the second world war, Hull developed a world leading ports and fishing industry which served the whole of Britain. Unfortunately, it was the citys excellence in shipping that lead to its downfall. After heavy bombing by the Germans in 1941, Hull struggled to reform itself to its former glory, not helped in part by a detailed plan authored by architect Edwin Lutyens which took many years to build.

Having enjoyed the economic boom of the last few years, the city is now starting to feel a pinch with which the rest of the country is so familiar. Some traditional 'blue-collar' industries are battening the hatches and operating on a four day week, whilst the newer 'white-collar' industries are looking to reduce investment and costs. Whilst protecting itself against the current financial climate, Hull needs to also position itself for new opportunities on the horizon and secure a lucrative industry for generations of 'Hullensians' to come.

Hull is no stranger to the power of wind. E.ONs tentative 7-tubine, 9.1MW wind farm at Out Newton was build in 2002, in the face of considerable opposition. Whilst not discouraged, E.ON have decided to locate their latest farm proposals, for the Humber Gateway Offshore Wind Farm, five miles from the shore. Such a move will improve the stability of the electrity supply, whilst minimising objections from concerned locals. Friends of the Earth energy campaigner Nick Rau said FoE was delighted with the plans.

So, providing the plans for the Humber Gateway Offshore Wind Farm are approved, how will the population of East Yorkshire benefit from such a development?

The offshore wind industry has the potential to be a major employer in and around the central North Sea and Hull is geographically well situated to take advantage of this. However, training and personal development will have to be provided if the community is going to be able to cater for the massive array of skills that offshore wind requires. Herein lies the crux of the matter. Over time, one of two things will happen. Either Hull will wake up to the fact that they have a whole new world of wind at their feet and embrace the reforms needed to supply this industry, or they'll sit back and let others come in and do the work for them. The former option will require a lot of co-ordination and hard-graft, the latter will result in the city missing out on a potential gold mine.

One hopes that with the recent Crown Estate announcement of another central east coast 'preferred windfarm zone' (to be awarded next year), Hull City Council and Hull University will get their heads together and devise a set of academic and vocational courses to meet the needs of wind developers in the future. And maybe, maybe if they can get that done, the city and the people of Hull will be able to ride the gulf stream of good fortune created by the power of wind.

UK Faces Economic Wind of Change

2009-02-20T11:24:00.000-08:00

The contrast could not have been starker.

As the great and the good of the wind energy industry gathered together at Londons Excel Centre, a fiery contingent of Cornish locals congregated outside an award winning tourist attraction, protesting against the planned erection of a 400ft wind turbine.

And whilst the energy leaders were treated to a plethora of praise from the Prime Minister himself, Tim Smit, founder of the award-winning attraction 'The Eden Project', wasn't so lucky. He was facing an army of angry protestors stepping up their fight against the £3m 'montrosity', planned for erection at the famed bio-sphere.

A plan six months in the making, Mr Smit had argued that as an ecological charity, Eden Project had a duty to "walk the talk", a philosophy more than adequately shared by his counter-parties who packed themselves into Trethurgy village hall. In what may have appeared to be a distinctly one-sided event, the gathered masses in the cornish enclave were in fact unwittingly handing wind farm developers the trump card they needed. An illustration of the need for offshore wind.

For years the case for offshore wind was belittled by the arguments against it. Cost, weather, time, and skills were all viewed as punitive factors when considered against onshore farms. However, the offshore schemes bypass something a lot more costly - NIMBYism. Onshore wind farm development has become slow, painful and costly, due to the protracted planning process adopted by councils and the unwillingness of local communities to embrace the need for change.

The protestors of Cornwall may have felt satisfied at their stand against a sole wind turbine, but it bolstered the case for offshore wind and especially deep-water wind, where little planning permission is needed due to its distance from shore. The further the turbine is from shore, the smaller they appear, the smaller they appear, the fewers objections submitted.

Whilst the west-country tree-huggers marched through the town, passionately objecting about anything that moved in a gust, the UK Government blew in on a gale of grand band-wagon hopping and dealt the assembled Excel masses the boost they needed. The UK was now a world-leader in offshore wind and the best was yet to come. Gordon Brown (via video feed), deftly announced that no economic turbulance would mess with the Governments green agenda and the Government would in fact brush aside any bottle-necks facing the wind developers in their offshore development plans.

Simultaneously, The Carbon Trust announced a new alliance between leading wind energy companies, which would invest over £30m to identify development cost-cutting measures.

The cannons were out and today was the day of the 21 gun salute for the offshore wind industry. Lets just hope they made a mental note, think twice before turbining the coast of Cornwall.