DAY THREE EWEA OFFSHORE FRANKFURT 2013 ewea.org | rechargenews.com Produced by RECHARGE SCALING DOWN: EWEa’s Jacopo Moccia says that achieving current European offshore targets is ‘extremely unlikely’ nprecedented political The EWEA survey, Where’s the uncertainties could force Money Coming from? Financing Uthe European offshore Offshore Wind Farms, suggests 40GW goal wind industry to slash its 2020 the industry would need to raise target from 40GW to about 27GW. up to €123bn ($165bn) by the An EWEA survey, using end of the decade if it is to meet research from Ernst & Young, its 40GW target for installed illustrates how difficult it will be capacity. could be for the industry to raise capital at However, it points out that a time of high regulatory risk. should regulatory instability One senior source tells prevent the industry reaching Recharge that EWEA members 40GW, even a conservative are actively debating whether to assumption of 25GW would blown out formally abandon the 40GW require up to €69bn over the next target in favour of something seven years. The survey says much lower but more achievable. investment is being blocked by EWEA chief executive Thomas the uncertainty caused by Becker tells Recharge: “We can’t of the water pretend this shortfall is not a Continued on page 2 problem. We are having a big discussion about it. Hopefully this situation will be resolved, but RECHARGE Europe may have to accept a smaller I can’t predict what the results of PROduCER OF tHE EWEA OFFSHORE daiLiEs Visit us at stand 30F34 Photograph | Jason Bickley/EWEA Photograph offshore target, writes Christopher Hopson those discussions will be.” EWEA001_20112013 1 20.11.2013 19:55:22 EWEA OFFSHORE 2013 Bernd radowitz ermany risks gradually Don’t throw losing its offshore wind Gindustry to other countries if the incoming government doesn’t show it is it all away, firmly committed to expansion, warns Norbert Giese. The vice-president for offshore at turbine manufacturer Giese warns REpower told a press conference at EWEA Offshore yesterday: “It would be stupid to deliberately destroy an industry that took us Germans ten years to build up. “It would be as if Saudi Arabia decided not to produce oil any longer,” he added, comparing the potential of the North Sea to harness offshore wind energy with that of the Middle East kingdom pumping oil. In the coming five to 15 years, Germany will probably represent a quarter of the global offshore wind market, second after the UK, which will account for 40-50%, Giese said. But the industry will only stay in Germany if it provides a big enough domestic market for it, WAKE-UP CALL: he added. Norbert Giese in Without the right policies, the Frankfurt offshore industry operating out of the North Sea ports of Emden and Bremerhaven, and the Baltic conditions, Giese warned. The and the Netherlands, Belgium wind development, other parts harbours of Rostock and UK and France are pursuing and Denmark are also very of the world, particularly East Sassnitz — together with 18,000 active policies to lure offshore attractive to the industry. Asia, are waking up to the jobs — could gradually move to wind investments and While regions outside Europe potential of the technology, he countries providing better production facilities, he said, are lagging behind in offshore cautioned. European industry may have to lower its sights From page 1 grid connected wind by 2020” 25-30GW by 2020, instead of until more questions around 40GW, we would still have to changing regulatory frameworks, future activity are resolved. find up to €69bn by the end of mainly in the two largest offshore “By the end of this year we the decade. markets, the UK and Germany. should have done around 7GW “So we are going to have to “By undermining investment of offshore wind in Europe, but think very hard about this 40GW stability, governments are putting this still leaves us with 33GW to objective. Considering what is green growth, jobs and a do in the next seven years, which happening in Europe, we may world-leading European industry is looking extremely unlikely,” have to revise our objectives for at risk,” says Becker. “Stable Moccia concedes. wind energy for 2020.” national frameworks and a “So we still have to persuade the The 40GW target put in place binding EU renewable energy financial sector to commit this by the European wind industry target for 2030 will be a green money. However, until we have in 2009 followed a process light to investors and ensure the resolved these industry problems, whereby each EU member state Erik Luntang/EWEA | industry continues to flourish.” no financier is going to put up to submitted a National Renewable Jacopo Moccia, head of €123bn into an industry with so Action Plan outlining how they political affairs for EWEA, tells much regulatory risk. intend to meet targets and what WARNING: Thomas Becker Recharge that “we can’t seriously “Even if we said that we are role each renewable technology Photography Photography talk about achieving 40GW of now, as an industry, going to do will play. 2 rechargenews.com EWEA002_20112013 2 20.11.2013 19:55:42 EWEA OFFSHORE 2013 Clarify wind rules, Dong urges Merkel Bernd radowitz ong Energy has urged Angela Merkel to clarify Dthe future of Germany’s support system for offshore wind. The utility has written to the chancellor and her environment minister, Peter Altmaier, asking them to provide certainty about what happens when the current “compression model” expires in late 2017. SUPPORTING The compression model offers LETTER: Dong higher feed-in tariffs (FITs) for has written to Angela Merkel and offshore projects in the first Peter Altmaier eight years of operation, to help companies meet upfront investment costs. After that, FITs tells Recharge. “We have written Riffgrund 2 project in Germany’s “will not put more than €1bn fall to a lower-than-usual level. a letter to the chancellor in North Sea. [$1.35bn] at risk” with only an To qualify, projects must be grid- which we’re trying to address The Danish utility has received eight-day margin. “That, even for connected by 31 December 2017. this and highlight these issues. I an unconditional pledge by Dong, is too ambitious.” “There needs to be some kind think in general they are aware.” transmission system operator He adds that if there is no DPA/PA | of certainty over what happens Because of the regulatory TenneT to connect the project to visibility in Germany, the post-compression model,” Lars uncertainty, Dong is holding the grid by 23 December 2017 company will spend its money Thaaning Pedersen, Dong’s head back on an investment decision — but Dong says that is too late. in the UK, Denmark or Photograph Photograph of European wind development, on its 300MW Borkum Pedersen says his company will elsewhere. EWEA003_20112013 1 20.11.2013 19:49:12 EWEA OFFSHORE 2013 KARL-ERIK STROMSTA CfD strike he UK’s draft Contract for Difference (CfD) strike Tprices are more than price is ‘good sufficient for E.ON’s 700MW Rampion project, claims an executive, whose support for the renewables support system flies enough’ against criticism of the British government by other developers. “We think [the draft strike price] is good enough at £155 [$250] per MWh — certainly for our Round 3 Rampion project,” said Michael Lewis, managing director for E.ON Climate & Renewables, speaking yesterday at the Recharge Thought Leaders Brunch at EWEA Offshore 2013. Several other big developers operating in the UK — including RWE and Centrica — have reacted coldly to the draft strike price, suggesting they may not build projects unless support is energy industry is in “crisis”. E.ON is currently building the tendering process for offshore increased. “Much to my surprise, [the 288MW Amrumbank West wind, which is the UK Despite the bruising energy UK’s Offshore Transmission project in the German North Sea government’s ultimate intention. debate under way in both the UK Ownership regime] has been a and the 219MW Humber “[Doing so] reveals the price of and Germany, Britain has really good innovation,” Lewis Gateway in UK waters, and each project rather than a PL pl pl pl p lp lp l pl p, reports Karl-Erik emerged as a much more said. “It’s working very well, in submitted a planning application one-size-fits-all, because we all comforting destination for contrast to the German offshore for Rampion this year. know there’s a big difference Stromsta investment than Germany, claims grid-connection system, which Lewis supports moving the CfD between [Forewind’s 9GW] Lewis, who says the German has been a big, big problem.” system towards a competitive Dogger Bank and Rampion”. Insight at Thought TOP TABLE: Leaders VIP brunch From left: Michael Lewis, Andrew Valuable insights about the Garrad, Johan state of the offshore wind Sandberg and market were heard at the Henrik Stiesdal Recharge Thought Leaders VIP brunch at EWEA Offshore yesterday morning. Here are a few highlights of what the four main speakers said: Henrik Stiesdal, Siemens We’ve benefited from society wanting us to be here, even at a very significant premium. But society’s patience is getting very stretched right now. And many of us, if we were not in this industry, might feel the same way if we’re honest with ourselves. Michael Lewis, E.ON Climate & Renewables It’s not that utilities — and certainly not E.ON — are against Andrew Garrad, EWEA in Korea, even in America. So on the other side of the value renewables. What we’re saying If you’d asked me five years for offshore wind globally I feel chain you have foundations, is, yes we support renewables, ago whether anybody outside positive.