Offshore Wind Sector Slammed: ‘Only Industry Warned Offshore Wind Luck’ Has Prevented Deaths, Says Shell Job Losses Could ANDREW LEE Mirror Onshore

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DAY TWO

Offshore wind sector slammed: ‘only Industry warned offshore wind luck’ has prevented deaths, says Shell job losses could ANDREW LEE mirror onshore

ffshore wind is lagging BERND RADOWITZ well behind the oil & gas Oindustry over safety, with The European offshore wind industry “only luck” preventing a fatality in needs to avoid the thousands of job the sector last year, warned a senior losses that occurred in onshore wind executive from Shell. in recent years, and push for clear Dorine Bosman, the company’s policies to make it the backbone vice president for offshore wind, of a new Green Deal in the EU, told WindEurope Offshore yesterday industry executives told WindEurope that the fast-growing sector quickly Offshore yesterday. needs to follow the lead of oil & gas, “Onshore wind is a precedent right which “learned lessons the hard in front of us, not an example,” said way through tragedies such as Piper Philippe Kavafyan, chief executive of Alpha”, the devastating oil rig fire offshore turbine maker MHI Vestas that killed 167 in the UK North Sea To build a sustainable offshore in 1988. wind industry, the sector needs to Bosman told delegates that offshore learn its industrial and policy lessons wind experienced 256 high-potential from the past, he added. incidents — with the possibility of The wind industry at large is death or life-changing injury — in under unprecedented pressure, 2018. “Only luck stood between with margins getting tight all across something worse happening,” she said. Europe, Vattenfall wind chief Offshore wind’s rate of total Shell’s Dorine executive Gunnar Groebler warned. Bosman speaking “recordable incidents” was 4.55 per at WindEurope “The supply chain is having a million hours worked, compared Offshore yesterday hard time, we have lost more than to 0.9 per million in oil & gas, she 38,000 jobs in the wind industry in added. Germany alone over the last four And Bosman warned that the represented a 13% drop on 2017’s pointing out that offshore wind is a years,” he said. sector’s steep growth trajectory, and level, with no fatalities in either year. much younger industry. A combination of ill-designed the millions of hours of extra work When the statistics were released in Mike Rice, commercial director onshore wind auctions, a permitting it will involve, makes the issue even June, G+ chairman Paul Cowling at Dropsafe, a specialist in safety malaise, bureaucratic hurdles, and more urgent. said other key safety metrics showed in industries spanning energy, anti-wind protests have pushed “If you make these numbers work “a remarkable improvement in 2018”. marine, mining and other sectors, German onshore wind additions in your head, are you still convinced The G+ figures cover the European said: “There is still a visible gap to their lowest figure since 2000, you’ll have zero fatalities? Would offshore wind markets plus US and between offshore wind and oil & gas resulting in severe job cuts at wind you recommend this industry to a Taiwan, but not China. in its approach to tackling core safety OEMs and suppliers. friend?” Jakob Lau Holst, chief executive of risks.” To avoid such problems, the The figures quoted by Bosman wind OEM-backed safety training However, Rice added that demand offshore industry must show that it come from 2018 safety data specialist GWO, told Recharge that it for proven health and safety is a strategic industry to Europe that produced by G+ Global Offshore was “remarkable and encouraging” equipment, and best practices from exports equipment worth billions of Wind, a sector safety organisation that a senior executive used a major oil & gas, is growing, “indicating a euros every year, said Groebler. backed by major players such as offshore wind speech to highlight desire not only to tackle safety and Orsted, Vattenfall and ScottishPower. safety. associated financial risks, but also to VISIT RECHARGE The organisation’s data showed “We’re not doing badly but we address the threat to reputation that at Stand E-D20 Tim Buelens/WindEurope | Tim Photograph that the 256 high-potential incidents could do much better,” he said, may be posed by a serious incident.

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Offshore wind tenders ‘should be ‘Opex is next frontier’ for opened up to land-locked nations’ offshore wind

BERND RADOWITZ cost-cutting

ountries holding offshore LEIGH COLLINS wind tenders should open Cthose up for land-locked Manufacturers have done well European nations, Luxembourg’s to reduce the levelised cost of energy minister Claude Turmes energy from their turbines, but demanded at the opening of the offshore sector needs to now WindEurope Offshore yesterday. cut costs of installation, servicing Turmes said his plea was not and in the supply chain, senior primarily geared towards his OEM executives told WindEurope own inland country, but had Offshore yesterday. EU members in mind that have According to MHI Vestas chief not been at the forefront of the executive Philippe Kavafyan, transition towards renewables, such “Opex [operational expenditure] as the Czech Republic or Slovakia. is the next frontier” for cost- “Why do you think they are cutting. Luxembourg’s stubbornly [remaining] in the energy minister “We have so much to save on old [energy] world?” Turmes, a Claude Turmes the asset management of these (right) speaking former green party member of at WindEurope wind farms offshore and the fact the European Parliament, asked Offshore yesterday that we’ll have more and more the audience. “Because they have offshore wind farms and that they a less competitive edge on their will be close to each other will solar and wind. You have to open determined by a tender, with volatility created by power allow some mature aggregation your national tenders for land- governments providing a top-up markets, Turmes cautioned. of infrastructure, will allow some locked countries so that they also on the wholesale power price Pieter Van Oord, chief executive different concepts for being more gain access to what will be the when required, and the developer of Dutch contractor Van Oord, efficient and reduce your back- cheapest energy, which I think giving the state their surplus agreed, saying that the current end [costs],” he told delegates. will be offshore wind.” income when wholesale prices zero-subsidy environment in Andreas Nauen, offshore Turmes added that governments exceed the strike price. some European countries has wind chief executive at Siemens should opt for UK-style contract Without a CfD system, tenders “put a tremendous pressure on Gamesa, added that installation for difference (CfD) support will increase stress on suppliers all of us — developers, turbine of turbines offshore is still too schemes, under which operators and developers, but projects won’t manufacturers, contractors and expensive, “especially when we go receive set remuneration get cheaper, given the increased the supply chain.” to new countries”. “If we optimise the whole supply chain, including installation, then afterwards the servicing, then Floating installation vessel to debut at Arcadis Ost 1 we will get the costs [down]. If we just focus on the little part in DARIUS SNIECKUS “Taking the turbine installation between, then we can’t really get based on a floating vessel from there, so it has to be everything.” Parkwind will make the first use theory to practice is a major step John Lavelle, chief executive of of a floating installation vessel forward for the offshore wind GE Renewable Energy’s offshore at its Arcadis Ost 1 project in industry,” said Parkwind’s co-chief wind business, added that there the Baltic Sea, after completing executive Eric Antoons. is room for cost-cutting across a year-long investigation of The installation, on monopile these areas, with standardisation of the technique with Heerema foundations, will see the as-yet- components and services being key. Marine Contractors (HMC) unnamed vessel transport all “It’s the building out of modern and MHI Vestas, which will be turbine components on its deck vessels that can handle the bigger supplying turbines to the 257MW including a “dummy tower”, which machines, it’s the skilled workforce, development. will provide a stable platform on it’s the bigger supply chains that we The decision to opt for a floating board the vessel to assemble the all need to develop. And doing it in vessel at Arcadis Ost 1, located nacelle and the blades. a rational way so we don’t build up 20km northeast of the German This technique is seen as having too large of a cost structure, so we Rendering of a island of Rügen, was prompted two “unique” advantages: it turbine installation can all maintain a competitiveness by “challenging” soil conditions “avoids all interaction” with the at Arcadis Ost 1 in the market and then keep a high using a floating at the project site, which made seabed to reduce operational risk vessel with a reliability level of the operating use of conventional jack-ups compared to a jack-ip installation, ‘dummy tower’ fleet, which allows financiers to

Foto: Tim Buelens/WindEurope Tim | Foto: Photography problematic. and also, cuts installation time. come in.”

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Lithuania’s targets ‘mission impossible’ without offshore

BERND RADOWITZ

Lithuania will need to have at least 700MW of offshore wind capacity up and running by 2030 to meet the targets included in its National Energy and Climate Plan that the Baltic country Christina Aabo, has submitted to the European Ørsted’s director Commission, energy minister of R&D, speaking at Recharge’s Žygimantas Vaičiūnas told Annual Summit WindEurope Offshore yesterday. Lithuania wants renewables to make up 45% of its power mix by 2030, which would likely translate in a production of 7TWh that Ørsted: ‘you can’t have it both year, the government in Vilnius has said. That would be up from 1.3TWh in 2017. ways’ on price and local benefits “It was very clear that our target for 2030 without offshore ANDREW LEE see requirements on local content, The Ørsted executive said the is mission impossible,” Vaičiūnas harbours and job creation,” Aabo focus should be on planning told delegates. he offshore wind sector told the Recharge Summit in regionally rather than “state To be able to build a first is increasingly having to Copenhagen on Monday. by state or even city by city 700MW of offshore wind Ttell politicians they can’t Developers like Ørsted are sometimes”. in Lithuania, the country is have it both ways over cheaper having to ask politicians whether Local content is increasingly considering holding first tenders power and demands for local they want the cheapest possible emerging as a potential headache for offshore wind projects in two benefits such as jobs, said a senior offshore wind, or to prioritise for offshore players, putting years time, Vaičiūnas said. executive at global industry leader other spin-off benefits such as job pressure on developers, which With neighbour Poland having Ørsted. creation, she explained. fear a needlessly fragmented plans to install up to 10GW of Christina Aabo, head of R&D “Right now, it’s ‘we want both’. supply chain will reverse some of offshore wind in its part of the at the Danish offshore wind But honestly, as an industry we the huge cost cuts the industry Baltic Sea by 2040, Lithuania sees giant, said expansion into new are stepping up and saying simply, has made in the past five years. big potential. global markets is creating the ‘guys, you cannot have it’,” Aabo Taiwan is piling the pressure on “With the new government [in need for frank discussions, with said, adding that to accommodate developers and the supply chain to

Warsaw], there is hope that there policymakers keen to secure high- all the extra requirements would commit to local investments, while Photography | John Macdonald-Fulton/Recharge | Tim Buelens/WindEurope will be a new impetus for regional profile benefits while at the same be adding cost, potentially Australian labour unions recently cooperation,” Vaičiūnas said. time insisting on rock-bottom decreasing quality and increasing warned they want to see tangible electricity prices. project risk, but not reducing the local benefits from the first “As we step into new markets we price of energy. offshore wind projects there.

Iberdrola rolls projects into 3.1GW East Anglia Hub

ANDREW LEE the EA1 North, and EA2 and Bank project that took the lion’s EA3, previously envisaged as share of capacity awarded at Iberdrola will roll its three distinct projects, into a single record low prices. remaining East Anglia UK complex, with a combined Jonathan Cole, Iberdrola’s global offshore wind projects into a procurement programme offshore wind manager, said the single 3.1GW, £6.5bn ($8.4bn) “to leverage their scale with Spanish group expects “the East mega-development that it a continuous installation Anglia Hub to be a key part of says will be on line by 2026, programme” from 2022. the UK’s decarbonisation plans, Žygimantas selling power with or without The news comes after the 1.2GW regardless of whether that power Vaičiūnas at WindEurope government contract-for- EA3 lost out in the last round of will be sold via government Offshore yesterday difference (CfD) deals. UK CfD auctions, outgunned by backed contracts or private power The East Anglia Hub will unite the 3.6GW Equinor/SSE Dogger sales arrangements”.

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BERND RADOWITZ

WE Renewables, the recently formed global Rnumber two in offshore wind, is exploring offshore opportunities in India, South Korea and Taiwan, in addition to previously announced plans in Japan, the company’s chief executive tells Recharge. “We have an eye on several markets in the APAC [Asia- Pacific] region: Japan is certainly the market where we have spent much of our time and been the most engaged so far, but we are also looking at Korea, Taiwan and India, for example,” said Anja- Isabel Dotzenrath. RWE Renewables chief executive “We continue to monitor China Anja-Isabel but consider this less relevant for Dotzenrath speaking at last the time being.” year’s WindEurope RWE Renewables last month conference opened its first Asian office in Tokyo, and with local partner Kyuden Mirai Energy, plans to jointly develop, build and operate fixed-bottom projects in the RWE eyes South Korea, Taiwan, Kyushu area off southern Japan. As part of a wide-ranging asset and share swap deal, German India and Japan for offshore wind utility E.ON recently transferred its renewable generation assets second-largest offshore wind experience and technical know- the development of offshore to RWE, including the former’s player with 2.5GW in operation. how well,” Dotzenrath said, wind. It has identified 11 areas partnership with Kyuden Mirai. “Our strategy to become a adding that RWE would like to as potentially suitable for And early next year, the renewable leading offshore player in Japan expand the cooperation in Kyushu development, four of which were assets of its former subsidiary is to join forces with Japanese to other Japanese projects in the designated as “promising areas” Innogy will also be brought back partners, like Kyuden Mirai near future. where the preparation process, into the RWE fold, making the Energy. Their local expertise Japan’s government enacted a such as wind and geological German company the world’s complements our global law earlier this year to enhance research, will start immediately.

Recharge Summit told offshore wind can scale for global climate fight ANDREW LEE encourage openness. prompting increasingly robust such as local content. Recharge Editor-in-Chief discussions with governments over Other speakers said matching Hitting the scale and reach Darius Snieckus, opening the the trade-off between competitive offshore wind’s scale with needed to battle the climate event, warned the scale-up is not power prices and other benefits innovation in areas like green

emergency was a dominant theme happening “anywhere near rapidly hydrogen production could help Photography | Jason Bickley/WindEurope | GreenSpur to emerge from the Recharge enough to avert the gathering it play a more central role in the Annual Summit on Monday, storm of climate change”. energy transition. which this year took place in Offshore wind can help by Another senior financial official Copenhagen and focused on expanding into untapped told the 70 deelgates that “if offshore wind. nations such as India and you’re going to see offshore wind The scale challenge was Brazil, said a senior official meet its potential in emerging addressed by senior executives from an international financial markets, a lot will be floating”. from high-profile organisations organisation, pointing to a An executive from the floating including the World Bank, the “three-terawatt prize” of technical industry highlighted its ability to International Energy Agency, potential in emerging offshore provide significant local benefits MHI Vestas, Orsted, Equinor wind markets. almost everywhere it operates. and DNV GL, who spoke under An offshore wind executive The event was sponsored by GE

‘Chatham House rules’ at the agreed that the sector is penetrating Darius Renewable Energy, Goldwind, event — meaning speakers more new markets all the time, Snieckus DNV GL, Roxtec and MHI Vestas cannot be identified, in order to but warned that this growth is Offshore Wind.

6 rechargenews.com Artist’s impression of a drone with offshore oil platforms and a Digitalisation will drive wind farm in the distance ‘next era’ of offshore wind cost cutting

DARIUS SNIECKUS have achieved impressive cost point that way.” into the offshore wind space will reductions through bigger and But this digital leverage will be bring not only “big capital [but apid advances in bigger turbines and so on — “equally if not more important” also] big digital innovations”, he digitalisation and and we’ve been very innovative in automating future offshore added. “This will be one of the Rautomation will be needed already — there is much more to project development and biggest drivers. The oil industry is to drive the next era of cost do. operations, Brun predicted, with now very keen to enter the power reduction in the offshore wind “We need to ‘cluster’ because the robots “supplementing” and later sector through offshore wind and industry, or developers could fall auction prices we are seeing in supplanting humans in heavy-lift they understand the ‘technology foul of ever-narrowing project Europe are extremely aggressive and underwater work, especially environment’ very well, including margins as the sector enters the [and] the margins are so tight. But for wind farms located in remote digital and automation. zero-subsidy era, according to we also need to make a leap in “The ambition is to make DNV GL. [the use of] digitalisation.” offshore wind LCOE the most The “mega trend” of projects Developers have “just started cost-competitive large-scale upsizing to gigawatt-scale to reach on the digitalisation journey”, power generation technology an ever-lower levelised cost of Brun said, noting “we have high there is. And part of that is scale. energy (LCOE), would not be hopes this will lead to even But the other part is efficiency enough for future offshore wind greater efficiencies, bringing and much of that is down to auctions where margins “are improvements to planning, digitalisation — and increasingly so tight”, said DNV GL global installation and operation in the s o.” head of offshore windPeter next era [of offshore wind]”. DNV GL calculates that offshore Brun, speaking exclusively with In the first instance, future projects will account for 40% of Recharge ahead of today’s launch improvements to the hardware all wind projects by 2040, as the of the DNV GL report, Offshore — turbines and foundations — industry builds capacity to around

Wind: The Power to Progress. will be further streamlined by Peter Brun 600GW, en route to installing “Offshore wind is not an infant digitalisation, Brun said. 1,500GW by mid-century. technology any more — it is “There will be further cost “If you model [the growth of the maturing so rapidly. It has passed reductions of the hardware and and hazardous environments. offshore wind industry] based on the juncture where we are not much of this will be done by “From construction through the technologies’ progress, then looking into the minutiae, we are digital twins [where technology to O&M [operations and the main message is that on the looking at truly big scale. That’s can be modelled and virtutally maintenance] there is a lot to global scale expansion is going the game-changer: offshore wind tested on-screen] because the way gain from doing this all more be staggering and will require is about to grow immensely,” he everything is being developed digitally, more smartly,” said Brun. still more scaling-up of turbines, stated. in a way now where you can test “New digital tools including AI improvements in construction “But we will have to find new out different engineering options [artificial intelligence] will help methodologies in the ports and ways to improve the profitability — for specific geotechnical or the industry drive cost reduction harbours and so on but will, like of the future offshore wind meteorological conditions, for and expansion faster.” everything, be digitally-enhanced,

Equinor DNV GL | Equinor Photography farms because much as we instance — and get a stable proof- The arrival of oil & gas giants digitally-driven.”

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HIGHLIGHTS OF THE DAY WEDNESDAY, 27 NOVEMBER #offshore2019 HIGHLIGHTS OF THE DAY WEDNESDAY, 27 NOVEMBER #offshore2019

→ Individual session ti ckets are available at the registrati on desk! Social events Side events Offshore wind farm visits Networking lunch with the 12:15 – 16:00 Programme overview WindEurope Ports Platform Departure from Bella Center, Reception Desk 12:15 – 14:00 Please note the bus will depart from Bella Center at 12:15, WindEurope Stand E-D21 and the boat departs at 13:00. Join representati ves from over a dozen European The Safety Experience by Ørsted ports for this networking lunch. 10:30 – 11:15 Networking drinks at the Meeting room 20, level 1 Innovation Park Come and experience how expanding off shore wind power globally can be done with high safety standards and proper business. 16:30 – 18:30 The Innovation Park, Hall E Wind Energy and Aviation The ideal occasion to build contacts with the start-ups 10:00 – 13:00 and EU projects poised to change how off shore wind Meeting room 18, level 1 works. This is where we create opportuniti es to overcome the challenges WindEnergy Hamburg 2020 for the happy coexistence of wind energy and aviati on sectors. stand party PROMOTioN 17:00 – 18:30 Technical challenges and soluti ons for Meshed Off shore WindEurope Stand E-D21 Grid development in the Northern Seas Join us for a special announcement on the 2020 14:30 – 17:00 editi on of WindEnergy Hamburg, the world’s largest Meeting room 19, level 1 wind energy event! How we can maintain security of supply while cost-eff ecti vely Gala dinner integrati ng large quanti ti es of renewable energy into the future power grid. 19:30 – 22:30 Copenhagen City Hall R&I by Ørsted Guests will experience the culinary delights which 15:00 – 16:00 Denmark is so renowned for, in the form of a Meeting room 20, level 1 3-course dinner, all while being seated alongside Learn about some of the Ørsted off shore wind power research the crème de la crème of the wind industry! projects with universiti es, research insti tuti ons and other partners.

Exhibition halls (HALL E)

Global Markets Brought to you by Innovation Powered by Safety, Skills & In association with See the programme online: windeurope.org/programme Theatre Park Training Zone 10:00 – 17:30 09:30 – 18:00 10:00 – 16:30

What’s happening in the key global The Innovation Park is where you’ll find A unique 200m² area showcasing the Visit the WindEurope Stand E-D21 to meet the WindEurope team, pick up markets for offshore wind? Our the start-ups and innovative projects industry’s commitment to an injury-free your copy of our industry-leading reports, try out our market intelligence expert presenters will tell you transforming how wind works. working environment in offshore wind. everything you need to know. tools and book your stand for WindEurope Electric City 2021. 8 rechargenews.com windeurope.org/globalmarkets windeurope.org/innovati onpark windeurope.org/trainingzone Our energy, our future

HIGHLIGHTS OF THE DAY WEDNESDAY, 27 NOVEMBER #offshore2019 HIGHLIGHTS OF THE DAY WEDNESDAY, 27 NOVEMBER #offshore2019

Exhibition halls (HALL E)

What’s happening in the key global The Innovation Park is where you’ll find A unique 200m² area showcasing the Visit the WindEurope Stand E-D21 to meet the WindEurope team, pick up markets for offshore wind? Our the start-ups and innovative projects industry’s commitment to an injury-free your copy of our industry-leading reports, try out our market intelligence expert presenters will tell you transforming how wind works. working environment in offshore wind. everything you need to know. tools and book your stand for WindEurope Electric City 2021. rechargenews.com 9 windeurope.org/globalmarkets windeurope.org/innovati onpark windeurope.org/trainingzone RECHARGE | OFFICIAL EVENT DAILY

DARIUS SNIECKUS

apidly growing energy demand in many Rdeveloping regions of the world could be met with offshore World Bank: ‘Offshore wind power alone, according to a World Bank report into emerging markets in Brazil, India, Morocco, wind alone could the Philippines, South Africa, Sri Lanka, Turkey and Vietnam. The study, which was spun out of a $5m market development power fast-growing programme launched last year, calculated a total of 3.1TWs of potential offshore wind power in emerging markets’ the waters off the eight countries — with two thirds of that coming from deep-water floating turbines. The scale of the resource outlined in Going Global: Expanding Offshore Wind to Emerging Markets, produced with its sister organisation the International Finance Corporation (IFC), surprised even the report’s authors. “‘Emerging’ markets, such as we call them, have been watching what has been happening in offshore wind in Europe a while and many of them have had the growing sense that it represented a huge opportunity for them, but this is the first time we have put a number to it,” says Sean Whittaker, senior renewable energy specialist at the IFC Fishermen working in front and co-author of the report, of Vietnam’s with World Bank senior energy first wind power farm, the 99.2MW specialist Oliver Knight and coastal Bac Lieu consultant Alastair Dutton. project “Not only are we and these countries that we case-studied aware that it is an achievable report is arguably the most used high-resolution “Geographic “In the last edition of the [industrial development comprehensive to date, as it is Information System” analysis to GWS we went 30km offshore; opportunity], but offshore wind based on the World Bank’s latest scope out the far offshore waters with this latest one, we went also represents several times the Global Wind Atlas (GWS) which of the eight countries. 200km out. It gives you a much countries’ energy demand,” he clearer idea of the big picture tells Recharge. “So, I think it’s the potential of offshore wind — and scale of it that is most surprising.” often particular floating — for “In almost all of these markets many countries that wouldn’t you have rapidly increasing be immediately thought of as energy demands, fuelled mainly ‘offshore wind’ countries,” Knight by the growth in major coastal tells Recharge. conurbations. These countries “Many of the countries we see offshore wind as increasingly looked at have been building their economically viable and they are solar capacity as fast as they can beginning to fit that into their but really they are focused on how long-term energy plans and they are going to meet the growth realise it is something they can in their energy demand, which start acting on now, but the future can be going up in double-digits [where offshore wind can be a Ideol’s 2MW every year. Offshore wind is demonstrator unit large part of their energy mix] is off northwest increasingly being seen as key to fast-approaching.” France filling that gap.”

World Bank | World | Ideo IFC | AFP/Getty Photography The data collected for the Offshore wind’s fit applies across

10 rechargenews.com we use offshore wind to create be partitioned off to meet the jobs?’ electricity demand of individual “Many of these countries have countries. declining offshore oil sectors and “Cooperation down the supply it is clear there is an interest in chain within a regional market exploring possible skills transfer will be very important too, to and industrial diversification and make sure it develops where it transitioning, as part of this.” should, where it most economic,” Tantalising as it is, development says Whittaker. of an offshore wind industry – Knight adds: “That is one the big in any country – will not be a lessons that has come out of the quick or easy process, Whittaker European offshore wind industry: notes. “All the pieces will have ‘You’ve got to work together. No to come together – you can have one country can do it on its own. the greatest wind resource but if We are trying to reinforce that you no logistics, or a weak supply here is a case where the sum will chain, it won’t work.” The report underlines that countries looking to adopt offshore wind as a mainstream energy supply would need a “big picture” approach to grid and port infrastructure, using “innovative approaches” to financing, setting up stable policy frameworks, and cooperating on sensible supply chain development. Oliver Regional cooperation is seen Knight. as being “key” to achieving the greatest economies of scale that could be generated by offshore be greater than its parts.” wind in these six countries. Whittaker sees much of the On the power production progress coming from the cross- side, it is foreseen that offshore pollination of neighbouring wind could spur market-making markets as they evolve. “A lot of economies of scale by building the learnings to come will come multi-gigawatt complexes in from between these emerging the sea, but as few nations have markets, because much of what is a need of all of this volume of going to develop simply will not power, dividing financing and look like it does in Europe – ultra- project development costs as deep water and typhoons, seismic well as the energy supply once activity, for instance, something a wind farm is online, would Asian nations share but the be “eminently” sensible, says Germany and France do not.” the range of seascapes, with India, broadest sense, is what are aiming Whittaker. The World Bank and IFC is Sri Lanka and Turkey having to do with these countries,” says “Floating wind is particularly currently working on a handbook significant bottom-fixed offshore Whittaker. “That ranges from interesting in this context. The for emerging offshore wind wind potential in shallower wind resource to grid integration idea that these economies of scale markets designed to give best but also [includes] are possible to get the [levelised practice guidance on “structuring environmental cost of energy] prices to drop, and every aspect of their [offshore These countries see offshore and social then the power production could wind] industries from the ground considerations, u p”. wind as increasingly one of the main “In the final analysis, floating aspects of which wind’s potential is still just that economically viable and they is the economic right now. We have the first are beginning to fit that into development deployments and soon first potential that commercial-scale arrays, but we their long-term energy plans offshore wind have so far to go to really get to — brings.” in the case of our report countries Knight — get that 2TW of power,” says waters, and others, including the continues: “This came out really Whittaker. “But this is another Philippines and South Africa, strongly in our discussions opportunity too, because floating that would be reliant on floating with [the different countries’] needs to work in emerging foundations to develop projects in delegations: ‘How can this benefit markets [as well as in Europe] to depths down to 1,000 meters. us on a sub-national level, in our Sean Whittaker fulfil its global promise, [it has] a “‘Feasibility work’, in the industrial supply chain, how can massive potential to unlock.”

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Ørsted targets 1.9GW of Taiwan offshore wind by 2025

BERND RADOWITZ

Global offshore wind leader Ørsted has revealed plans to complete 1.9GW of generation capacity off Taiwan by 2025. Ørsted is currently building the 900MW Greater Changhua 1 & 2a project, which it expects to commission in 2022. The Danish utility has also been awarded an additional 920MW for the nearby Greater Changhua 2b & 4 project, which, subject to a final investment decision, is The recently completed expected to be completed in 2025. Formosa 1 offshore Ørsted has just inaugurated wind farm the 120MW phase two of the Formosa 1 offshore wind farm (pictured right). Earlier this year, Ørsted was engaged in a months- Taiwan doubles post-2025 long standoff with Taiwan’s government over support levels and at some point had declared offshore ambition to 10GW all its offshore wind plans off the island on hold. YUKI YU measures will be released “in to award seven companies a total Only after the government in the first quarter next year”, the 5.5GW capacity for its initial Taipei met the wind industry aiwan doubled its previous minister said. stage of large-scale development halfway in a revision of previously stated plans for the next “The bidding prices of the between 2019-25. However, the agreed upon feed-in tariffs, the Tstage of its offshore wind 10GW projects are likely to lower island had yet to make clear the company took an investment build-out with a goal to add 10GW than the average retail power post-2025 roadmap and the rules decision for Greater Changhua of extra capacity from 2026 to for its “third-round” offshore 1 and 2a, which will be the first 2035. project allocation. supersized offshore array Ørsted Taiwan’s President Tsai Ing-wen In September, the MOEA is building in Asia. and its Ministry of Economic announced it would postpone Taiwan’s Ministry of Economic Affairs (MOEA) this month the release of a first draft of the Affairs after the tariff row has unveiled a new target for allocation plan from the end increased pressure on offshore development in the Taiwan strait. of August to “early next year” wind developers once more, The island had only previously due to various disagreements warning foreign developers laid down ambitions for 5GW among project developers and the that they could be replaced by after 2025 without specifying a supply chain over allocation rules “second-tier candidates” if they timeframe. and localisation requirements, fail to fulfil localisation targets set The President made the Recharge previously reported. by the ministry. announcement during her speech Shen today revealed that the President at the inauguration ceremony for Tsai Ing-wen energy regulator is considering

Ørsted’s offshore the island’s first offshore wind a two-step selection process, in wind boss, project, Formosa 1. She urged the which the ministry would first Martin Neubert MOEA to quickly establish a plan rate,” MOEA said in a statement. pick eligible developers based on for the “10GW capacity for the “Already getting a head start” their localisation commitments,

next 10 years”. among Asian countries for followed by price-competitive Photography | Orsted Later, minister of economic offshore wind development, auctions. affairs Shen Jong-Chin confirmed Taiwan “should continue moving Offshore wind has become a live the figure, adding that the forward and plan in advance,” the issue in the run-up to Taiwan’s ministry is planning to allocate statement added. next presidential election in 1GW per year for the 10GW goal. Last year Taiwan held two January, with Tsai more ambitious The detailed plan of allocation rounds of offshore wind allocation than her rival over wind at sea.

12 rechargenews.com Equinor links with ESB for offshore wind in Ireland

ANDREW LEE

Norwegian energy group Equinor will link with Irish state-owned utility ESB to advance offshore wind projects off Ireland, the Senvion 6.2MW companies have revealed. turbine leaves Bremerhaven The partnership aims to get factory large-scale projects up and running by 2030, they added. Equinor is already a major player in the UK offshore wind sector, where it has several large fixed-bottom projects in the Last nacelle rolls out of Senvion’s water off eastern England and is advancing the 3.6GW Dogger closing-down Bremerhaven plant Bank mega-development with SSE. The Norwegian group is also DARIUS SNIECKUS designs — will be installed in a all colleagues and employees all the a pioneer in floating wind water depths of 25-35 meters at best for the future.” technology, which is tipped to he last of 32 turbines for the the North Sea project. In April, Senvion filed for have a role in Ireland’s ambitions 200MW Trianel Windpark “Production Bremerhaven has “preliminary self-administration to build at least 3.5GW of TBorkum 2 project off delivered the last offshore turbine proceedings” under German capacity in the next decade, with Germany has rolled out of of the Trianel [Windpark Borkum insolvency legislation after talks renewables delivering 70% of Senvion’s Bremerhaven plant, II] project. It is the last turbine with lenders failed. power by then. with the factory now set to be delivered from Bremerhaven Siemens Gamesa in October ESB chief executive Pat closed as the failed OEM moves before the doors close after agreed a €200m ($225m) deal to O’Doherty told Recharge earlier into administration. 11 years of great work,” said buy 8.9GW of Senvion’s European this year that floating projects The 6.2MW Senvion 6.2M152s Benjamin Schmidt, vice-president onshore service business along have potential in the deeper — once the most powerful of production at the Bremerhaven with its blade factory in Portugal. waters off Ireland’s west coast. offshore models in the world facility, in a LinkedIn post. “I am Trianel Windpark Borkum 2, The Irish group said of the before being out-scaled by proud to say that this was a great owned by 33 municipal utilities Equinor link: “Equinor’s scale Siemens Gamesa, MHI Vestas and performance by the team, although and regional energy suppliers, is and capabilities make them an GE’s 8-12MW machines, as well the times are very difficult. I am expected to be commissioned by ideal long-term partner. [This] as number of ultra-large Chinese very proud of the team and wish the end of this year. announcement represents a significant commitment by ESB in offshore wind in Ireland.” The Irish government last year laid the ground for future offshore Johnny Thomsen named co-CEO of MHI Vestas wind tendering via its Renewable Energy Support Scheme. Photography | Senvion | MHI Vestas | Global Wind Atlas DARIUS SNIECKUS decades, including with sector of the MHI Vestas platform with pioneer NEG Micon. business acumen,” said chairman Ireland’s has some of Vestas veteran Johnny Thomsen “Johnny combines substantial of the MHI Vestas board Anders the fastest has been named co-CEO of understanding and experience Runevad, who recently stepped offshore wind speeds in the offshore wind turbine-maker down from the chief executive world MHI Vestas, replacing Lars Bondo role at Vestas. Krogsgaard, who has resigned the Runevad said he “regretted but post after a year to “explore other respected” Krogsgaard’s decision opportunities”. to step down and thanked him Thomsen, who comes in to for having “played an important new role after 15 years at the role in the company and [being] Danish OEM, most recently as instrumental in expanding our senior vice-president of product Johnny business to Asia and the US”. management, has been in the Thomsen Philippe Kavafyan remains chief wind industry for more than two executive of MHI Vestas.

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RICHARD A KESSLER

New Jersey ew Jersey governor Phil Governor Murphy has signed an Phil Murphy Nexecutive order raising the US state’s offshore wind procurement goal from 3.5GW by 2030 to 7.5GW by 2035, setting the stage for heated competition in the US Northeast for billions of dollars in future supply-chain investment. New York leads the nation with a 9GW offshore wind target by 2035, while Connecticut launched its first 2GW of offshore wind request for proposals in August. “We have an immense opportunity to maximise our potential and make this region — and, specifically New Jersey — the nexus of the global offshore wind industry,” said Murphy. New Jersey’s new target will deliver enough power to enable it to meet as much as half of the state’s 50% renewable-energy goal by 2030 and a 100% clean-energy economy by 2050, Murphy said. “There is no other renewable energy resource that provides New Jersey doubles 2035 us with either the electric generation or economic growth potential of offshore wind,” he offshore wind goal to 7.5GW said, forecasting that 7.5GW of offshore wind capacity will power 2020 and 2022. Public Service Enterprise Group, is eligible for a 12% federal more than 3.2 million homes Ocean Wind, which will be which owns the state’s dominant investment tax credit. and generate billions of dollars in located about 24km off Atlantic power utility and will build the The present three wind energy investments. City, offered a first-year offshore project’s onshore transmission areas off New Jersey — under In June, the state’s Board of wind energy credit (OREC) price infrastructure, has an option to lease to Ørsted, Atlantic Shores Public Utilities (BPU) awarded of $98.10/MWh. Income from the acquire a 25% equity interest. (the Shell-EDF joint venture) Ørsted a contract for an initial remaining contract tenor was not Ørsted anticipates it will need and Equinor — do not have the 1.1GW at the Danish developer’s made public. up to two years to have all the project pipeline capacity to meet Ocean Wind offshore project, and The levelised net OREC cost is permits in place, with the 90 the new offshore goal, meaning proposed a timeline to consider estimated at $46.46/MWh over GE Haliade-X 12MW turbines that additional lease areas will be two future 1.2GW solicitations in the contract life. spinning by 2024. Ocean Wind necessary.

Mitsubishi beats Shell in deal for $4.5bn renewables player Eneco ANDREW LEE Dutch company will become “the interested in the utility. 1.7GW of onshore turbines and European centre for all energy- Eneco, the Netherland’s largest 300MW of solar. It is seen as A Mitsubishi Corporation-led related activities of Mitsubishi utility, already owns 427MW of one of Europe’s most forward- partnership has struck a deal to Corporation”. offshore wind, along with almost thinking groups in areas such as buy Dutch utility and offshore The acquisition — which still EVs and energy storage. wind player Eneco, strengthening requires shareholder approval Eneco’s Eneco’s board said it was the Japanese giant’s position in — will see Mitsubishi transfer its headquarters attracted by Mitsubishi’s plans to in Rotterdam European renewables and fighting European offshore wind interests, leave the Eneco brand and culture off competition from oil giant totaling more than 400MW, to intact. The utility was put up for Shell. Eneco. The Japanese group’s sale in late 2018, with private Mitsubishi will buy Eneco forays in Europe so far include equity group KKR also said to be in an 80/20 consortium with the Borssele 3 & 4 Dutch offshore interested. fellow Japanese group Chubu wind project as a minority Mitsubishi Heavy Industries is in a deal that values the utility shareholder with both Eneco half owner of offshore turbine

Photography | Getty Eneco Photography at €4.1bn ($4.5bn), saying the itself and Shell, which was also maker MHI Vestas.

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hinese efforts to reduce offshore wind costs will C“open up more space for international involvement”, according to Fitch Solutions. The analyst expects China to become the global offshore wind power front runner over the coming decade, with the country for the first time installing more capacity last year than previous market leaders Germany or the UK. “In line with rapidly falling offshore wind power costs in Western Europe and the rising competitiveness of the technology in markets such as the US and

Taiwan, we expect China to China State substantially boost offshore wind Construction unloads an power capacity over the coming offshore wind decade. tower in Nanjing “This will be the result of efforts to decarbonise power supplies closer to coastal consumption hubs and boost Chinese technological expertise with Cost falls will ‘open space’ in the aim to eventually export technology.” As an example of international Chinese offshore for global firms involvement in the Chinese offshore market, Fitch cites biggest and heaviest monopiles and highlight Longyuan’s recent Chinese turbine makers have Danish company Ramboll, which for the developer’s Guangdong $88 (€80) per MWh bid for the been pushing hard to increase has played a key role in designing Offshore Wind Power project in 200MW Fengxian Phase 1 project turbine capacity and thus reduce offshore wind farms for State 2019. in Hangzhou Bay off Shanghai, the levelised cost of energy, with Power Investment Corporation The researchers expect the which came in well below the Dongfang and CSIC Haizhuang since 2016, culminating in the downwards pressure on offshore average of $105-110/MWh of the recently unveiling 10MW company designing the world’s wind prices in China to continue, bids by its contenders. machines.

Call for tough local-content rules for Australia’s nascent offshore sector

ANDREW LEE overarching Offshore Renewables redeployment of workers from local industrial benefits with the Act to underpin development fossil-fuel industries”. chilling effect on cost reductions Australian trade unions have off the nation’s coasts, while Local-content requirements of unnecessarily fragmented urged the country’s government “ensuring renewable energy are rapidly emerging as a key supply chains. to put tough local-content rules in financing, targets, contracts, issue for the offshore wind sector Taiwan — one of the world’s place for its first big offshore wind licensing and approvals require as it expands into new markets hottest new markets — is a case project, as they backed renewables the maximising of local jobs, around the world, balancing the in point, with politicians there to offset declines in the country’s including planning for direct need for governments to show piling the pressure on developers oil & gas and shipping sectors. and the supply chain to commit

A clutch of labour groups The 2.2GW to local investments, while the focused on the planned first offshore project UK has also seen controversy over Star of the South Australian offshore wind farm would feed power major offshore wind contracts — the 2.2GW Star of the South to Melbourne going abroad. off the state of Victoria — as Technical and environmental they called for measures “to investigations at the Star of the ensure workers and communities South site — backed by investor currently reliant on fossil fuels Copenhagen Infrastructure weren’t thrown on the scrap heap”. Partners — began earlier this Union leaders want Australia’s month after the project got an states and the national exploration licence from the

Peter Mackay | Peter | Tuchong Photography government to create an Australian government this year.

rechargenews.com 15 HALIADE-X 12 MW, THE WORLD’S MOST POWERFUL OFFSHORE WIND TURBINE. SELECTED AS THE PREFERRED TURBINE FOR SEVERAL PROJECTS TOTALING 4.8 GW.

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