Advice Notes on Wind Technology Economics for the NPA Region

Wind

The Advice Notes aim to provide introductory material for entrepreneurs, startups and SME’s, considering to enter into the renewable energy sphere and based in the NPA regions partners to GREBE. The scope of the Advice Note covers regional, trade and industry, renewable energy (RE), technology information from Ireland, Northern Ireland, Scotland, Iceland and Finland. Different partner regions have different level of deployment of the various RE technologies covered by the Advice Notes. Thus, the level of information will vary depending on the level of deployment for each technology. For example, wind is not deployed on a large scale in North Karelia (Finland); however, it is widely deployed in Scotland, Ireland and Northern Ireland.

Full details are available on the GREBE website:

http://grebeproject.eu/wp-content/uploads/2017/10/GREBE-Advice-Notes-WIND.pdf

The focus of the Advice Notes is on regional information of some of the main economic characteristics sited as imperative, when making an informed choice, regarding which RE technology may be the optimal choice for a new business venture:

  • Costs and economics associated with the relevant technology
  • Support schemes available, relevant to the technology
  • Government allowance/exemptions, relevant to the technology
  • Funding available for capital costs of the relevant technology
  • List of the relevant to the technology suppliers/developers, with focus on local/regional, suppliers/developers and the products and services they offer.

The first wind turbines for electricity generation were developed at the beginning of the 20th century. Thus, wind technology is one of the most mature and proven technologies on the market. In 2015, the wind energy industry installed 12.8 GW in the EU – more than gas and coal combined. Onshore wind is presently one of the most economically viable RE generation technologies. In areas with good wind resources, generating electricity with wind turbines is already competitive.  Thus, wind turbines offer the prospects of cost efficient generation of electricity and fast return on investment. The economic feasibility of wind turbines depends primarily on the wind speed. Usually, the greater the long term annual average wind speed, the more electricity will be generated and the faster the investment will pay back. The map below gives an overall picture of the wind potential across the globe, showing that the NPA region has a great potential to harness the benefits associated with wind energy generation.

Map

 

 

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Increased generation from Scottish renewables

Windfarm near Ardrossan, Scotland

In June the UK Government released figures showing that renewable energy generation has seen a dramatic 11% increase in the first half of 2018 compared to the same period in 2017. Improved weather conditions for generation have seen wind generation in Scotland increase by 37%.

Paul Wheelhouse, Scottish energy minister, said: “These figures show that Scotland’s renewable energy sector is stronger than ever with almost exactly 1GW of new capacity installed since Q1 2017 and a strong pipeline of further projects still to be constructed.” Last year proved to be another record breaking year with provisional annual statistics showing that renewable electricity generation was up 27% on 2016 and 19% on 2015. The increase in generation now brings 69% of Scotland’s electricity consumption being delivered by renewable energy.

Scotland has long delivered on world leading electricity targets and is helped by an abundant onshore wind resource and historic hydro system. As the Scottish Government builds out new offshore wind and tidal projects the increase in generation only looks to continue. Recent plans for a new pumped storage hydro scheme on Scotland’s famous Loch Ness show a long term vision for the country’s electricity grid as it looks to increase penetration of renewables into its grid system. Climate change targets have been helped by the closure of Scotland’s last remaining coal powered fire station in recent years but ageing nuclear power stations and a “no new nuclear” policy look to add new challenges in the future.

NORWEGIAN RENEWABLE INVESTMENT IN UK – GRAND OPENING OF DUDGEON WIND FARM

Dudgeon Turbines

The Dudgeon Wind farm is now completed and fully commissioned – right on schedule. The project is the largest Norwegian renewable investment in the UK and the Dudgeon Wind farm will harness wind to power 410,000 UK homes. Statoil and Statkraft had a grand opening of Dudgeon Wind farm in Norwich/Great Yarmouth on the 22nd of November.

The opening of the offshore wind farm took place as an official ceremony in Great Yarmouth’s Town Hall – and this happens 3.5 years after the investment decision was made, and only a year and a half after marine installations started. After the successful installation of the first 6MW wind turbine in early January 2017, all 67 Dudgeon Offshore Wind Farm wind turbines are now delivering electricity to the UK grid, providing clean, renewable energy to around 410,000 British homes.

Dudgeon also makes an important contribution to the UK’s renewable energy strategy and represents continued progress in the deployment of commercially viable clean technology. The support of the British government has been critical to the success of Dudgeon.

The Dundgeon Wind Farm project has required significant technical innovation from Statoil and Statkraft, and the technology transfer has been delivered through an excellent relationship with local companies and local suppliers.

East Anglia

The development of Dudgeon Wind farm has stimulated local jobs and economic growth for the East Anglia region – and the Dudgeon investment happens in the same area as an earlier Statoil renewable energy investment – The Sheringham Shoal. Together, these projects means a lot for the local economy in East Anglia.

In addition to Dudgeon, Statoil is operator for the Sheringham Shoal offshore wind farm in the UK- East Anglia, which has supplied electricity to around 200,000 homes since 2012.

The Statoil strategy is to develop from an oil and gas company to a broad energy major, Statoil will grow significantly in renewable energy, with an ambition to invest millions of Euro over the next few years. Dudgeon and East Anglia is a key part of this strategy to complement the oil and gas portfolio with profitable renewable energy solutions, as well as building upon Statoil’s already strong UK presence.

Dudgeon location

Maritime expertise

Offshore wind has been a natural place to start, as Statoil can build on their maritime expertise, experience from complex oil and gas projects and make use of their existing supplier chain. With Dudgeon in full production Statoil is well on its way to providing more than one million households in Europe with renewable electricity.

Maritime expertise in combination with improved technology and economic factors as; increased deployment and lower costs – are the key drivers turning offshore wind into an attractive power source, outcompeting traditional sources of energy in important markets.

Dudgeon Wind farm – in numbers

The Dudgeon Offshore Wind Farm is located approximately 20 miles off the North Norfolk coastline and has a maximum installed capacity of 402MW providing sufficient power to meet the annual demands of 410,000 UK homes.  The field comprises 67 turbines which are connected by 12 inter array cables to the main offshore facility which sits centrally in the field.

The offshore substation Jacket will be approx. 30m x 30m at the sea bed.  It spans a height of 48m from the cable deck to the bottom of the suction buckets.  Each bucket is 9m in diameter and 9m in height.  The Jacket will weigh approx. 1,300 tonnes once installed.

Dudgeon in numbers

Statoil Renewable Energy Portifolio in UK

Towards 2030 it is estimated that the installed capacity of offshore wind in Europe can grow from 12GW (2016) to 70 GW. Statoil wants to be a part of this development.

Statoil already has a sizeable renewables portfolio in UK – its current offshore wind portfolio has the capacity to provide more than 1 million homes with renewable energy. This includes the Sheringham Shoal wind farm and Dudgeon Wind Farm in the UK/East Anglia, and the Hywind Project in Scotland, the world’s first floating offshore wind farm, which came into production in October.

Statoil will grow significantly in renewable energy, with an ambition to invest around £9.5 billion over the next five years.

Report reveals massive range of UK wind, wave and tidal energy industries’ exports

Offshore wind

A report published by RenewableUK shows for the first time that UK-based companies working in the wind, wave and tidal energy sectors are exporting goods and services worldwide on a massive scale. 

Export Nation: A Year in UK Wind, Wave and Tidal Exports” reveals that in 2016, an illustrative sample of 36 UK-based firms featured in the report signed more than 500 contracts to work on renewable energy projects in 43 countries in Africa, Asia, North America, South America, Europe and Australasia. The contracts featured ranged in value from £50,000 up to £30 million each.

This is the first time that the industry has assessed the extent of Britain’s global reach in these innovative technologies, and the wide range of products and services we sell overseas. The diverse reach of the contracts indicates that the UK is well placed to benefit from the $290bn global renewables market, trading with countries inside and outside the EU.

Projects featured include: Gaia-Wind in Glasgow which is exporting small onshore wind turbines as far afield as Tonga; JDR Cables which is manufacturing massive subsea power cables in Hartlepool for German offshore wind farms; and Sustainable Marine Energy in Edinburgh, which is making tidal turbine platforms for Singapore. The UK’s world-leading wave and tidal testing centres off the coasts of Cornwall and Orkney are highlighted as the destinations of choice for global companies testing full-size devices in real sea conditions.

The UK is exporting its knowledge too, with renewable energy consultancy firms in places such as Bristol, Newcastle, Colchester and Winchester, winning contracts to plan and oversee the development of wind farms and other renewable energy projects in dozens of countries including the USA, China, India, Chile, Japan, Indonesia, Taiwan and Mauritius.

RenewableUK’s Executive Director Emma Pinchbeck said: “The UK’s wind, wave and tidal energy exports are great British success stories on the international stage. Our businesses are securing hundreds of contracts, worth millions of pounds, across six continents. Our leadership in this $290bn renewables marketplace will be even more important as we leave the EU.   

“We need to act swiftly to retain this competitive advantage or other nations will capitalise on the hard work our businesses have done to build opportunities. This year, as part of its Industrial Strategy, the Government will be looking to identify and support world-leading, innovative industries with global trade potential. This report shows that the UK’s wind and marine energy sectors can offer much to the Government’s Industrial Strategy. Britain must secure its position as a leading exporter in tomorrow’s global energy market”.  

The study is released in the same week as the Global Wind Energy Council’s annual report (on Tuesday 25th April), which will highlight developments in the international wind energy market, offering further opportunities for British exporters.

Notes:

  1. RenewableUK is the trade and professional body for the wind, wave and tidal energy industries. Formed in 1978, and with more than 400 corporate members which employ more than 250,000 people, RenewableUK is the country’s leading renewable energy trade association.
  2. The report is available here (NB it is a large file which will take several minutes to download). The study covers a sample of 36 companies based on a survey of member companies by RenewableUK. It also includes data from publicly announced contracts.  In 2016, these 36 companies signed 557 export contracts for work on 527 renewable energy projects overseas in the onshore wind, offshore wind, wave and tidal energy industries. These range from individual orders for small turbines to multi-million pound contracts to provide massive components and heavy-duty infrastructure for offshore wind farms. The actual number of UK companies exporting, and the number of contracts signed, will be higher as the sample represents less than 10% of RenewableUK’s membership.  The purpose of this study was to begin to assess the extent of export activity among UK-based wind, wave and tidal energy companies.
  3. The UK wind industry has an annual turnover of more than £5.9 billion in direct economic activity, according to the Office for National Statistics. This rises to over £11.3 billion when indirect economic activity is included. Offshore wind alone is bringing over £20 billion in investment to Britain over the course of this decade.
  4. GWEC’s annual Global Wind Market Report will be published on Tuesday 25th April. It provides a comprehensive snapshot of the global wind industry in more than 80 countries. This year’s edition includes insights into the 20 top wind markets across the world, including new entrants Vietnam and Argentina, and a five-year global market forecast out to 2021.

Record wind generation in Scotland

ERI image 25-08-2016

On Sunday the 7th of August Scotland provided 106% of its electricity needs from wind power for the day. Wind turbines provided 39 545MWh of electricity to the national grid whilst electricity usage from Scotland’s homes, businesses and industry only used 37 202MWh.

Sunday’s weather was not typical, with high winds across the country causing disruption to road, rail and ferry travel. These high winds were however very good for generation of electricity from wind turbines.

Whilst being the first time on record wind power has exceeded daily needs it may have happened before as a monitoring process for the data was only implemented in 2015.

Wind energy success in Scotland has been increasing year on year with turbines providing 123% of electricity needed for Scottish homes in January 2016. In January 2015 wind provided enough electricity for Scottish homes for 22 of the 31 days in the month.

These announcements have been hailed by WWF Scotland’s director Lang Banks, who said in January:

“2015 proved to be a big year for renewables, and the latest data makes clear that 2016 is already off to a flying start, with wind power alone meeting nearly half of Scotland’s total electricity needs during January.  I have little doubt that 2016 will be another record year for renewables.” 

His predictions for a record year are proving to be true.

Wind turbines assembled at Belfast Harbour

AR 22-08-2016

State of the art wind turbines with a diameter bigger than the London Eye are being assembled at Belfast Harbour.

 The 32 turbines are destined for the sea off Liverpool. Once running, they will generate enough electricity for a city twice the size of Belfast – about 230,000 homes. The component parts have been shipped to a purpose-built facility in the docks, built several years ago at a cost of £50m. They are being put together and fitted out, before being shipped out horizontally on a specialist vessel to the 40sq km site in Liverpool bay. At peak operation each turbine can produce the same amount of energy in one day as contained in 22,600 barrels of oil.

Government subsidies for onshore wind have been stopped, leading to the shelving of many projects. But financial support remains for off-shore projects, with developers promising to cut costs through technology and lower the amount of subsidy needed.

http://www.bbc.co.uk/news/uk-northern-ireland-36915662