IEA WIND ENERGY Annual Report 2008

Home , Blyth Offshore Wind Farm, GE Wind Energy, Hywind Scotland, Port Alma Wind Farm, Suzlon, Whitelee Wind Farm

Executive Committee for the Implementing Agreement for Co-operation in the Research, Development, and Deployment of Wind Energy Systems of the International Energy Agency

July 2009

ISBN 0-9786383-3-6

IEA Wind 1 Front cover: The NedPower Mount Storm 264-MW wind energy project is located about 120 miles west of Washington, D.C. in Grant County, West Virginia. Owned by Do- minion and Shell WindEnergy Inc., the project began construction in 2006, consists of 132 wind turbines along 12 miles of the Allegheny Front, and can generate enough electricity to serve about 66,000 homes and businesses. Output from the wind farm will be sold into PJM Interconnection, a regional transmission operator and wholesale electricity market serving 51 million people in 13 states and the District of Columbia. Photo Credit: Vetter, Moe.

2 2008 Annual Report Foreword

Under the auspices of the International Energy Agency (IEA*), the Implementing Agreement for Co-operation in the Research, Development, and Deployment of Wind En- ergy Systems (IEA Wind**) is a collaborative venture among 24 contracting parties from 20 Member Countries, the European Commission, and the European Wind Energy Association (EWEA). In this thirty-first IEA Wind Energy Annual Report, experts describe activities in the research, development and deployment of wind energy within their countries in Sec- tion II, Member Activities. The managers (Operating Agents) of the IEA Wind cooperative research Tasks report progress for the year and plans for the coming year in Section I, Imple- menting Agreement and Active Annexes. The Executive Summary compiles information from all countries and Tasks in a shorter format suitable for decision makers. This IEA Wind Energy Annual Report for 2008 is published by PWT Communications in Boulder, Colorado, United States, on behalf of the IEA Wind Executive Committee. It was edited by P. Weis-Taylor, with contributions from experts in participating organizations from Australia, Austria, Canada, Denmark, the European Commission, the EWEA, Finland, Germany, Greece, Ireland, Italy (two contracting parties), Japan, the Republic of Korea, Mexico, the Netherlands, Norway (two contracting parties), Portugal, Spain, Sweden, Swit- zerland, the United Kingdom, and the United States.

Ana ESTANQUEIRO Chair of the Executive Committee 2006-2008

Patricia WEIS-TAYLOR Secretary to the Executive Committee 1998-present

* The IEA was founded in 1974 within the framework of the Organization for Eco- nomic Co-operation and Development (OECD) to collaborate on international energy programs and carry out a comprehensive program about energy among Member Countries. In 2008, 28 countries and the European Commission participated in 42 Implementing Agreements of the IEA. OECD Member countries, non-Member countries, and international organisations may participate. For more information, visit www.iea.org.

**The IEA Wind implementing agreement functions within a framework created by the International Energy Agency (IEA). Views and findings within this Annual Report do not necessarily represent the views or policies of the IEA Secretariat or of its individual member countries.

Web site for additional information on IEA Wind www.ieawind.org

IEA Wind 3 Message from the Chair

Welcome to the 2008 IEA Wind Annual Report where we document the record increases in wind energy capacity and its contribution to satisfying electrical demand around the world! The member countries of IEA Wind added more than 17,000 megawatts (MW) with growth rates up to 58% over 2007. Amidst all of this work in our home countries, we managed to work together to achieve significant results in IEA Wind. Following the 2003 Strategic Plan, IEA Wind has addressed key issues of integration of wind power into the electricity system, offshore wind development, and social acceptance of wind energy projects. For example the final report of the first term of Task 25, Power Systems with Large Amounts of Wind Power showed that the impact of wind power can be controlled by appropriate grid connection requirements, extension and reinforcement of transmission networks, and integration of wind power production forecasts into system and market operation. This work is having significant impact on expanded wind energy development. In 2008, we produced an End-of-Term Report documenting that the cooperative research tasks are rewarding participants with benefits totaling many times the value of the monetary and in-kind efforts they contribute. Industrial and utility participation is inform- ing the research tasks, and the information sharing and distribution of the ExCo is contributing to policy development in the Member Countries and at IEA. We extended our cooperation for another five years and approved a Strategic Plan to guide our work in 2009 through 2013. Also this year, work has been completed in two tasks on issues of offshore wind energy deployment and integration of wind and hydropower systems. Final reports are expected next year and this work will provide the foundation for continuing work in these areas. Four important tasks illustrating the importance of technical as well a social issues moved forward. Consumer labeling of small wind turbines demands technical expertise as well as policy sensitivity. Cost of wind energy will provide important methodologies to compare technologies and approaches. Social acceptance of wind energy projects will translate the findings of social scientists into the language of planners, developers, and engineers to enhance the process of wind power development. And following on the successes of two previous tasks on aerodynamics, a new task will bring the combined efforts of organizations in eleven countries to process and use the massive amounts of data collected by the European Union “MEXICO” aerodynamic experiment. Improving aerodynamic models is an important element of improving wind turbine durability. I personally have been honored to participate in the progress of IEA Wind and to serve as Chair these three years. Now I confidently pass these important duties on to Brian Smith of the United States.

Ana Estanqueiro

Chair of the Executive Committee, 2006 to 2008

4 2008 Annual Report Contents

FOREWORD ...... 3 Message from the Chair ...... 4 CONTENTS ...... 5

EXECUTIVE SUMMARY ...... 7

SECTION I The Implementing Agreement and Active Tasks

Chapter 1 The Implementing Agreement ...... 31 Chapter 2 Base Technology Information Exchange - Task 11 ...... 37 Chapter 3 Wind Energy in Cold Climates – Task 19 ...... 43 Chapter 4 Offshore Wind Energy Technology Deployment – Task 23 ...... 47 Chapter 5 Integration of Wind and Hydropower Systems – Task 24 ...... 53 Chapter 6 Power Systems with Large Amounts of Wind Power – Task 25 ...... 58 Chapter 7 Cost of Wind Energy – Task 26 ...... 64 Chapter 8 Consumer Labeling of Small Wind Turbines – Task 27 ...... 67 Chapter 9 Social Acceptance of Wind Energy Projects – Task 28 ...... 70 Chapter 10 MexNex(T): Analysis of Wind Tunnel Measurements and Improvement of Aerodynamic Models – Task 29 ...... 74

SECTION II Member Activities

Chapter 11 Australia ...... 79 Chapter 12 Austria ...... 85 Chapter 13 Canada ...... 89 Chapter 14 Denmark ...... 103 Chapter 15 the European Commission ...... 119 Chapter 16 Finland ...... 131 Chapter 17 Germany ...... 143 Chapter 18 Greece ...... 155 Chapter 19 Ireland ...... 163 Chapter 20 Italy ...... 173 Chapter 21 Japan ...... 187 Chapter 22 Republic of Korea ...... 197 Chapter 23 Mexico ...... 201 Chapter 24 the Netherlands ...... 209 Chapter 25 Norway ...... 223 Chapter 26 Portugal ...... 229 Chapter 27 Spain ...... 239 Chapter 28 Sweden ...... 253 Chapter 29 Switzerland ...... 263 Chapter 30 the United Kingdom ...... 271 Chapter 31 the United States ...... 291

APPENDICES

Appendix A Photo of The Executive Committee ...... 309 Appendix B List of Executive Committee Members, and Operating Agents ...... 309 Appendix C Currency Exchange Rates ...... 313 Appendix D Abbreviations and Terminology ...... 314

IEA Wind 5 Message from the Chair

6 2008 Annual Report Executive Summary

1.0 Introduction 2.0 Progress Toward National In 2008, cumulative installed wind power Objectives capacity increased nearly 29% (1) world- 2.1 Wind generation capacity wide and nearly 23% (2) in the member The dramatic increase in electrical gen- countries of the IEA Wind Implement- eration capacity and output from wind ing Agreement. In the IEA Wind member in the IEA Wind member countries as a countries, 17,000 MW was added in 2008 whole can be seen in Figure 1. Capac- for a total of close to 92 GW of generating ity has increased from less than 5 GW in capacity. Even more encouraging, electri- 1995 to nearly 92 GW in 2008. In 2008, cal production from wind increased more the member countries added more than than 25% in IEA Wind countries to about 17 GW of new wind generating capac- 194 TWh (Table 1). This electrical produc- ity, and much more is being planned for tion from wind met 2% of the total elec- 2009 and beyond. Thirteen countries added trical demand in the reporting IEA Wind more than 100 MW of new capacity, and member countries—up from 1.6% in 2007. four countries added more than a gigawatt The percentage contribution from wind is of new capacity: the United States (8,558 growing steadily even in this time of eco- MW), Spain (1,609 MW), Germany (1,665 nomic slowdown. Electrical output from MW), and Italy (1,010 MW) (Table 3). wind in the world was enough to cover the In addition, Australia, Canada, Japan, the electricity consumption of Australia. Netherlands, and Portugal added 300 MW At the close of 2008, three-quarters of or more. The Netherlands reached an all- the nearly 121 GW (Table 2) of the world’s time record of 490 MW of new installed wind generating capacity was operating in wind capacity in 2008. Australia, Italy, and the IEA Wind member countries. Located the United States also broke their national in Europe, North America, Asia, and the records due to favorable changes in domes- Pacific Region, the member countries are tic programs. Increases in capacity were less sharing information and research efforts to than hoped for in other countries such as increase the contribution of wind energy Austria, Denmark, Finland, Korea, Mexico, to their electrical generation mix. They are Norway, and Switzerland because of un- also reaching out to other countries to join certainty about government programs or this co-operation. very low competing energy prices. Total

Table 1 Key Statistics of IEA Wind Member Countries 2008 2007 2008 Total installed capacity 74.84 GW 91.77 GW Total offshore wind capacity 1,125 MW 1,431 MW Total new wind capacity installed 13,315 MW 17,000 MW Annual increase in capacity from previous 21% 23% year Total annual output from wind 155 TWh/yr 194 TWh/yr Wind generation as % of national electric 1.6% 2.3% demand

IEA Wind 7 Executive Summary

Table 2 Worldwide Installed Capacity for 2008 generating capacities of each country varied

IEA Wind Members Rest of World (2) greatly, from the United States with 25,369 MW to Switzerland with about 14 MW. Country MW Country MW The growth rate in many countries far United States 25,369 China 12,200 exceeded the respectable average of 23% Germany 23,902 India 9,645 (Table 4). In the United States, wind energy

Spain 16,740 France 3,387 capacity grew more than 50% in 2008 and accounted for 42% of that nation’s new Italy 3,736 New Zealand 468 electrical generation for the year. Australia United Kingdom 3,331 Poland 405 had the highest growth rate at 58%, while Denmark 3,163 Belgium 384 11 countries had growth rates exceeding

Portugal 2,819 Turkey 383 23% for the year. Looking regionally, in Eu- rope wind power installations alone made Canada 2,369 Egypt 365 up almost 36% of new power installations Netherlands 2,214 Brazil 336 and grew more than any other power gen- Japan 1,880 Taiwan 224 erating technology there.

Australia 1,306 Bulgaria 158 Many countries report significant amounts of capacity in the planning stages, Sweden 1,047 Morocco 134 including planning applications submitted, Ireland 1,002 Czech Republic 133 successful acquisition of land leases, projects Austria 995 Hungary 127 under construction, and projects awaiting

Greece 990 Ukraine 90 final connection to the grid. The capacity of projects planned or under construction is Norway 430 Costa Rica 92 more than three times the capacity added in Republic of 236 Estonia 78 2008 (Table 5). Mexico has 330 MW of ca- Korea pacity under construction, nearly four times Finland 143 Iran 67 the capacity operating at the close of 2008. Mexico 85 Caribbean 57 In the United States, more than 4,000 MW

Switzerland 14 Tunisia 54 were under construction at the beginning of 2009, more than half the capacity added Total 91,771 Lithuania 52 in 2008. In the United Kingdom, more Luxembourg 35 than 7,000 MW had received planning Philippines 33 approval and 1,665 were under construc-

Argentina 30 tion. And Australia is poised to repeat its 2008 record year with another 6,359 MW Latvia 27 planned or under construction. Paciﬁ c Islands 24 Offshore generating capacity was add- Colombia 20 ed in the Netherlands and in the United

Chile 20 Kingdom. The UK is now the world leader in offshore wind energy, with 598 MW Uruguay 18 installed capacity. Much more offshore Croatia 17 capacity is in the planning stages and could Russia 11 be connected as early as 2009: Denmark

Romania 10 (28 MW), Germany (512 MW), Sweden (30 MW), and the UK (90 MW). Signifi- Reunion (France) 10 cant offshore resources to be exploited Others (<10 MW) 38 in the near future have been identified Total 29,132 in Finland, Ireland, Italy, the Netherlands,

World Total 120,903 Norway, and Spain.

8 2008 Annual Report Executive Summary

Another trend in wind capacity in- Wind’s contribution to national electrical creases is repowering—the replacement of demand varied from under 1% in several older, smaller turbines with fewer, larger countries to nearly 20% in Denmark. In turbines representing the state of the art in five countries, the wind energy contribu- power production. Especially for countries tion to national electrical demand exceeded that have been installing wind turbines 5%, and in 14 countries it met or exceeded for a decade or more, repowering onshore the 1% mark (Table 3). Portugal and Spain is expected to increase in years ahead. In both got more than 11% of electricity de- 2008, the Netherlands decommissioned 37 mand from wind energy. In Ireland, nearly turbines (total capacity 14.6 MW) and re- 9% of electricity demand was satisfied by placed them with 53 turbines (total capacity wind energy in 2008. In the United States, 126 MW). The net repowering effect was as a result of record growth the past three an increase of about 112 MW. In Denmark, years, wind energy for the first time sup- 164 turbines were removed and 51 new plied close to 2% of that country’s electrical turbines were installed for a net addition of demand. 39 MW, and the new incentive structure In Europe overall, total wind power will encourage more repowering. capacity operating at the end of 2008 pro- Increased interest in small wind systems duced 142 TWh, or 4.2% of EU power de- (less than 40 kW) was reported in several mand in an average wind year, and avoided countries (Canada, Ireland, Italy, Japan, Por- emissions of about 108 million tons of CO2 tugal, Spain, the United Kingdom, and the annually. In 2000, less than 0.9% of EU United States). In the United States, the electricity demand was met by wind power. small wind turbine industry (turbines rated Wind energy is becoming a significant at less than 100 kW) grew by almost 78% source to meet peak demand. In Spain, in 2008. The industry added 17.3 MW of wind energy covered more than 40% of new capacity, bringing the total small wind hourly demand on several occasions in capacity to more than 80 MW. In Portugal, 2008, and for several days it supplied more an active research program has developed than 30% of daily electricity demand. and is testing a small vertical-axis turbine for urban applications. 2.3 Environmental benefits Wind power’s contribution to providing 2.2 Contribution to electrical demand for the world’s electrical demand reduces Total electrical production from wind ener- the amount of conventional fuel burned to gy in the IEA Wind member countries has generate electricity. Many countries evalu- increased from less than 10 TWh in 1995 ate their generation mix and calculate the to nearly 194 TWh in 2008 (Figure 1 and effects of using wind power. For example, Table 3). The contribution from wind ener- the total U.S. wind generation capacity at gy to the combined electricity demand has the end of 2008 produced enough electric- increased from under 0.2% overall in 1995 ity to power approximately seven million to well over 2% in 2008. In 2008, electri- U.S. households. Generation from these cal generation from wind increased even projects over their lifetime will displace as national electrical demand decreased or nearly 44 million tons of carbon emis- remained nearly constant in several coun- sions—the equivalent of taking more than tries (Denmark, Finland, Germany, Greece, seven million cars off the road. In Ireland, a Ireland, Italy, Portugal, Spain, Sweden, Swit- nation that is more than 90% dependent on zerland, United Kingdom, and the United imported energy supplies, wind power dis- States). As a result of these two factors, the placed almost 1.28 million metric tonnes of contribution of wind energy to electri- CO2 emissions and primary energy imports cal demand increased significantly in 2008. of 215,000 metric tonnes of oil equivalent.

IEA Wind 9 Executive Summary 1.3% 1.0% 6.5% from wind* from % of national electricity demand 337.6 1.9% 337.6 615.1 615.1 406.0 1.3% 406.0 575.0 demand National National (TWh/yr) electricity electricity

5,274 6,637 6,637 3,462 267.0 2,298 26.2 26.2 2,298 8.8% (GWh/yr) electricity Wind generated (kW) capacity Average new turbine Turbines Total No. of (MW) (MW) capacity Annual net increase in in increase (MW) wind capacity wind Offshore installed (MW) capacity = estimated vale AustraliaAustriaCanada2,000 482 0 1,306 14 523 2.9% 756 995 0 70.7 2,369 0 5,800 1,681 1,863 2,0502,000 618 Table 3 National Statistics of the IEA Wind Member Countries for 2008 Country wind installed Total DenmarkFinlandGermanyGreeceIrelandItaly39Japan 423 3,163 1,665RP of Korea3319.3% Mexico36.2 13 143 5,101 23,902 0 40,400 2,000 19,568 1,667 Netherlands0.3% 3.7% 6,975 115 87.0 207.7 51.0 Norway 118 3,000 990 0 260 25 Portugal 1,002 1,0102,300 1,650 1,190 Spain 834 342 1,696 3,7360.3% 0 Sweden 1,880913.2 11 236 3,588 1,566 Switzerland490 1,508 1,247 2,856 0United Kingdom 228 2,214 85 0 United3.6% States 119.3 11.3% 450.1% 2,053694 0.7% Totals209.7 2,219 50.6 430 0 0 128.6 104 1,609 4,259 0 2,819 *% of national electricity demand from wind= (wind generated electricity/national electricity demand)*100 1,500 5,737 1,900 200 254 2,531 italic Bold 0 16,740 216 >16,000 921 2.3 133 1,047 3,331 11.7% 430.03% 0 14 1.4% 145.9 266.5 1,151 25,369 57.4 58,102 1,700 2.28% 8,521 1,974 2,000 28 1,886 193,997 152 17,000 31,100 19 1,600 598 1,431 91,771 0 912 1,579 8,558 1,952 >15,000 421 2,060 422.0 1,670 0.1% 71,000 3,736.8 1.9%

10 2008 Annual Report Executive Summary

Table 4 Wind Energy Capacity Increases Country Capacity added in Percent wind 2008 capacity increase United States 8,558 51% Germany 1,665 7% Spain 1,609 11% Italy 1,010 37% United Kingdom 912 38% Portugal 694 33% Canada 523 28% Netherlands 490 28% Australia 482 58% Japan 342 22% Sweden 216 27% Ireland 208 26% Greece 115 13% Norway 45 12% Korea 43 22% Denmark 39 1.0% Finland 33 30% Austria 14 1% Switzerland 2.3 19% Mexico 0 0% Average rate 23%

The environmental benefit of wind power and supplied the electrical consumption of production in Finland is about 0.2 million more than 10 million households. tons of carbon dioxide savings per year. In Austria, 162 wind parks with 618 wind 2.4 National targets turbines generated 2.1 TWh of electric- All IEA Wind member countries recog- ity, enough to power 570,000 households. nize that renewable energy in general and This generation displaced 1.3 million wind and solar energy in particular offer tonnes of CO2 for the year. In Spain, the great potential to reduce overall carbon use of wind power lowered CO2 emis- emissions of the power industry. In addi- sions by about 18 million tons just during tion, reducing the cost of electricity and 2008. Furthermore, wind generation saved decreasing reliance on imported fuels are up to 6 million tons of conventional fuels justifications for several national targets

IEA Wind 11 Executive Summary

Table 5 Potential Increases to Capacity After 2008 Country Planning Planning Under Total planned application* approval** construction*** and/or under (MW) (MW) (MW) construction (MW) Australia 2,767 3,057 535 6,359 Austria 150 30 0 180 Canada 5,834 Denmark 200 200 500 Finland 80 30 3 113 Germany Greece Ireland 11,000 1,400 580 12,980 Italy 2,885 Japan 134 134 Korea 420 420 Mexico 2,500 2,000 330 4,830 Netherlands 200 Norway 4,535 2,095 0 2,095 Portugal 3,880 971 739 5,590 Spain Sweden 1,140 125 1,265 Switzerland 50 26 4 80 United King- 7,093 1,665 8,758 dom United States 4,451 4,451 Totals 26,102 17,036 9,052 56,674 *Means all pa- **Means all rel- ***Means all perwork has evant planning approvals are been submitted bodies have received and to ofﬁ cial plan- approved the physical work ning bodies projects has begun on the projects for renewable energy. In 2008, success in aggressive targets. In Australia, the renew- meeting targets for renewable energy con- ables target set for 2010 was met, so the tribution to electricity demand prompted Australian federal government proposed a several countries to propose or adopt more new target of 20% by 2020.

12 2008 Annual Report Executive Summary

Along with new targets, some coun- onshore grid access point to the offshore tries are also changing the incentive wind farm. structures. In Finland, the new target is An important goal has been set for the 2,000 MW of wind power in 2020. This European market for wind energy technol- would be about 6% of the total electricity ogy by EU framework legislation com- consumption in Finland. A new subsidy bined with legislation at the national level system is proposed to start in 2010. Proj- aimed at reducing barriers to the develop- ects that are planned, are under feasibility ment of wind energy and other renewables. studies, or have just been proposed equal The EU has issued a new Renewable En- 1,100 MW onshore and 5,700 MW off- ergy Directive for a binding 20% renewable shore. Ireland could reach its 2010 target energy target by 2020. The EU’s overall if 60% to 70% of contracted wind farms 20% renewable energy target for 2020 has are connected by 2010. This seems likely, been divided into legally binding targets so Ireland increased its target from 33% re- for the 27 member states, averaging out at newables by 2020 to 40%, and this target is 20%. These targets must be implemented at now described as a minimum. In Germany, the national level. the EU target for renewables was exceeded Studies of wind energy potential are in 2007, so the German government set a also driving policy and planning. In the new target that at least 25% of electricity United States, a report published in 2008 consumption should come from renewable examined the potential for wind energy sources. This translates to a strategic goal to provide 20% of U.S. electricity by 2030. for offshore wind development of 1,500 Wind capacity contributing 20% would MW by 2011 and 25,000 MW by 2030. support 500,000 jobs, reduce greenhouse This effort may be facilitated by the Infra- gas emissions equivalent to taking 140 mil- structure Acceleration Act, which requires lion vehicles off the road, and save 4 tril- transmission system operators to pay for lion gallons of water. The report concluded and install the grid connection from the that reaching such capacity will require

Figure 1 Annual installed capacity, cumulative installed capacity, and annual generation as reported by IEA Wind member countries, 1995–2008.

IEA Wind 13 Executive Summary an increase from the current 25.3 GW to centralized, large-scale power plants. The more than 300 GW. To achieve this in- move toward smaller and more decentral- crease by 2030, annual increases in wind ized generation plants thus requires adapta- capacity will need to exceed 16 GW after tion of the grid. an initial 10-year ramp-up period. The Integrating wind energy and hydro- 8.5-GW increase in 2008 is a significant power renewable resources for the benefit step toward meeting this goal. In Italy, the of consumers and the electrical generation maximum wind potential is considered to system is appealing, and its technical and be 12,000 MW by 2020 according to the economic issues have been explored by IEA 2007 Renewable Energy Position Paper of Wind Task 24, Integration of Wind and the Italian government. Offshore installa- Hydropower Systems. Expected outcomes tions should contribute 2,000 MW to this of this work, to be published in 2009, in- target, corresponding to a total annual pro- clude the identification of practical wind/ duction of 22.6 TWh. (See Table 1 of the hydro system configurations and an under- each country chapters for specific national standing of the costs, benefits, barriers, and targets.) opportunities when integrating wind and hydropower systems. 2.5 Issues affecting growth System operation impacts from wind IEA Wind member countries report several power are a concern of transmission system key issues affecting increased deployment operators. Responding to the need to ex- of wind energy. Work in the countries and plore this issue, IEA Wind Task 25, Power co-operative research tasks (annexes) within Systems with Large Amounts of Wind Pow- the IEA Wind Implementing Agreement er, began work in 2005. The final report of are under way to address some of these is- the first phase of 2006–2008 shows the er- sues. (See also Section 5.0, R, D&D Activi- ror of claims that wind power requires large ties, of each country chapter.) Countries amounts of reserve power and that integra- experiencing rapid growth attributed the tion costs erode the benefits of wind power. growth to favorable financial incentives and The report finds that a substantial toler- regulatory environments that allowed for ance to variations is already built in to our efficient approval and construction of proj- power network. This is why the influence ects. Slower growth was often attributed to of wind power fluctuations can be further uncertainty about the future of incentives, balanced through a variety of relatively easy lack of sufficient incentives, or difficult and inexpensive measures for reasonably regulatory issues that prevented timely ap- large penetrations (10% to 20%). The im- proval of projects. pact of a large share of wind power can be controlled by appropriate grid connection 2.5.1 The world economy requirements, extension and reinforcement The economic situation referred to as a of transmission networks, and integration credit crisis, economic slowdown, or eco- of wind power production and production nomic crisis began to affect wind energy forecasts into system and market operation. development in the second half of 2008 in Forecasting the output of wind plants some countries. All countries mentioned can increase the value of wind generated this issue when discussing prospects for electricity and make system impacts more 2009. manageable. IEA Wind Task 11 Base Tech- nology Information Exchange held a Joint 2.5.2 Grid capacity, integration, Action Symposium that gathered experts and transmission on wind forecasting techniques. The value Today’s grids are mostly the result of pre- of the wind forecasts depends on several vious planning and are adapted to the factors like the characteristics of the system, needs of an electricity system made up of the way the system is operated, regulations,

14 2008 Annual Report Executive Summary climatic conditions, and so on. To continue 765-kV (high-efficiency) transmission lines the exchange between modelers and users are proposed, costing 60 billion USD. To of information, IEA Wind may sponsor ad- improve grid access, planning and construc- ditional meetings on this topic. In Australia, tion of multistate, extra-high-voltage trans- the variability of wind generation prompted mission lines is under way. implementation of the Australian Wind Energy Forecasting System (AWEFS), a so- 2.5.3 Planning issues and public resistance phisticated forecasting model that predicts Planning issues were mentioned as both wind generation for use with the National benefiting wind development (when plan- Electricity Market management systems. ning proceeded smoothly) or obstructing Limited capacity of the transmission projects. Complex requirements in plans system has prompted rationing of capacity can obstruct wind development. In Japan, a and construction of expanded systems. In building code that became effective in June Ireland, the electricity regulator directed 2007 classified wind turbines over 60 m system operators as to how they should high (highest point of blade tip) as a kind control the connection of wind applicants of building. Under this code, the installa- in the coming years. Those wishing to con- tion of wind turbines requires the minister’s nect to the grid join an applicant queue sanction, and the application procedure for once their application is “deemed com- planning permission is very complicated, plete.” The options considered for accepting time consuming, and expensive. Only in applicants included a date-order approach, July 2008 was the first project approved a mixed date-order/optimization approach, under this new code. After that, the permis- or a Grid Development Strategy, which will sion process became more standardized, and result in the issuance of offers to selected many other projects are being authorized. applicants in the connection queue when In Korea, wind farm development has the application process closes. To gain full been slow for several reasons, including the advantage of its abundant wind resource, complex system for approval of develop- Ireland should have a 500-MW East-West ments caused by conflict among existing Interconnector with the mainland by 2012. laws, public acceptance issues, and difficulty Another 350-MW high-voltage direct- getting permits for grid connection. Also, current interconnector between Ireland and onshore sites are limited because of moun- Britain is planned by Imera Power, a private tainous terrain. asset-investment company that will build Some countries have improved the and operate the interconnector on a mer- permitting process in recent years. In the chant basis. United Kingdom, the approval rate for new The Mexican government awarded a wind energy projects in 2007 was 70.1%. 209-million-USD contract in August 2008 This was significantly greater than the rates for the construction of a 300-km electrical of 54.7% in 2006 and 59.6% in 2005. In transmission line for wind energy projects. 2008, the approval rate dropped to 61%. The new line will be rated at 2,000 MW Although this rate was lower than the and will be shared by wind project devel- 2007 rate, significantly more capacity was opers who will also pay for the line over approved in 2008 (almost 4 GW) than in the long term. The transmission line will be 2007 (2,300 MW). commissioned by the end of 2010. In response to growing concerns In the United States, a study by an about public acceptance of wind energy investor-owned utility and the trade as- development, IEA Wind Task 28 Social sociation concluded that a transmission su- Acceptance of Wind Energy Projects was perhighway will be needed for the United approved in 2008. The work will collect States to obtain 20% of its electricity from case studies of successful community and wind. More than 19,000 miles of new market engagement and will publicize

IEA Wind 15 Executive Summary successful strategies for developing wind In Italy, the economic turnover of the power. wind sector in the past two years rose to In Denmark, public resistance is being more than 1 billion €, including turbines addressed by government regulation. Begin- and components delivered to foreign coun- ning in 2009, the owners of new turbines tries. At the end of 2008, 18,309 employees to be installed will pay neighbors for result- were involved in the wind sector, of which ing loss of property value. The compensa- 5,353 are directly employed. The total per- tion will be based on an individual evalua- sonnel involved is subdivided as follows: tion of the loss of property value. feasibility studies, 2,240; manufacturing of turbines and related industry, 3,033; devel- 3.0 Benefits to National Economy opment and civil works, 5,246; installation, 3.1 Market characteristics 1,421; and management O&M, 6,369. A The economic impact of wind energy de- study estimated that by 2020, assuming full velopment is estimated in various ways by exploitation of an Italian wind potential the IEA Wind member countries (Table of 16,200 MW and energy production of 6). Monetary values in this report are cal- 27.2 TWh, some 66,000 people would be culated using the exchange rates effective employed (including indirect employment). on December 31, 2008 (Appendix C Cur- This development is taking place in rural rency Conversion Rates). One measure of areas needing employment. Another posi- benefit, sometimes referred to as economic tive aspect ensuing from the rising wind turnover or contribution to gross domestic power capacity is increased investment in product, is the value of all economic activ- upgrading electrical grid infrastructures. ity related to such development. It includes Total investment in wind energy instal- payments to labor, cost of materials for lations in the Netherlands for 2008 can be manufacture and installation, transportation, estimated at 850 million €, assuming an sales for export, and value of electricity average investment cost of 1,250 €/kW generated. Other values reported include for the 370 MW installed onshore and an industrial activity, construction, and value investment cost for the Q7 Offshore Wind of exports. Many countries are estimating Farm of 3,192 €/kW for the 120 MW the number of jobs created by wind energy installed. The total investment in wind en- manufacturing, development, and operation. ergy installations from 1989 to 2008, not According to the EWEA, 15.1 jobs are cre- corrected for inflation, is estimated at some ated in the EU for every megawatt installed. 3 billion €. For the 490 MW installed in In addition, 0.4 jobs are created per mega- 2008, an estimated 4,000 jobs were involved watt of cumulative capacity in operations, in the Netherlands. Further, for the 2,214 maintenance, and other activities. About MW of total installed capacity, about 1,000 half of these jobs are associated with wind jobs are created permanently in operations, turbine and component manufacturing. For maintenance, and other activities. offshore, the numbers are higher. In Spain, investment in wind energy The rapid growth of Canada’s wind was more than 2,250 million € in 2008. energy industry has resulted in a grow- About 50% of Spanish wind energy equip- ing number of firms entering the market, ment production is exported. According resulting in increased activity in a variety to a study, the number of jobs related to of areas including resource assessment, wind power reached more than 40,000 in project development, manufacturing, 2008. Of this total, the number of direct construction, and operations. In fact, jobs in operation and maintenance of wind the Canadian Wind Energy Association’s farms, manufacturing, assembly, research, (CanWEA) corporate membership has and development is estimated at more than grown from 86 members to about 400 21,800. The number of indirect jobs (linked members over the past five years.

16 2008 Annual Report Executive Summary mainly to components) is estimated to be mainly due to the large number of 3-MW more than 17,000. turbines. Of the 221 turbines installed, In the United Kingdom, it is estimated 97 had a capacity of 3 MW. The average that companies working in the renewables hub-height has risen to nearly 80 m, and sector currently sustain about 16,000 do- 91 turbines installed in 2008 have a hub- mestic jobs. If the UK meets its proposed height of 100 m. The swept area per unit 2020 RE target, 122,000 to 133,000 jobs of power decreased from 2.5 m2/kW in will be involved, although not all of these 2007 to about 2.1 m2/kW, because of the will necessarily be in the UK. 64 turbines with 82-m-diameter rotors and In the United States, the new wind 3-MW generators installed in 2008. generating capacity installed in 2008 rep- The IEA Wind member countries resents an investment of about 17 billion contain turbine manufacturers that serve USD (12.2 billion €). About 85,000 people global as well as national markets. Coun- were employed in the wind industry, up tries reporting a national manufacturer of from 50,000 in 2007. The share of compo- 1-MW or larger turbines include Denmark, nents for wind systems made domestically Finland, Germany, Italy, Korea, the Neth- has increased from less than one-third in erlands, Norway, Portugal, Spain, and the 2005 to about half in 2008. In 2007 and United States. A broad spectrum of R&D 2008, manufacturers of turbines and com- activities are financed by the industry or ponents announced additions to or expan- supported by state governments to develop sions of 70 facilities, which created an esti- larger wind turbines. mated 8,400 new jobs in 2008 alone. Domestic manufacturing is a goal of Even countries with small increases in many countries. In Finland, WinWinD domestic wind capacity are benefiting from presented its first 1-MW pilot plant in the industrial activity of the wind industry. spring 2001 and erected the 3-MW pi- The Austrian component suppliers special- lot plant in 2004 in Oulu. By the end of ize in wind turbine control systems, blade 2008, WinWinD had installed 142 MW in materials, generators, and wind turbine seven countries including Estonia, France, design. Last year the turnover of these com- Portugal, and Sweden. WinWinD has sup- panies rose by 25% to about 300 million plied 39% of all the turbines in Finland (57 €. About 35,000 MW of wind capacity MW). In 2008, the number of employees worldwide is equipped with the control grew to 270 (190 in Finland). In Korea, systems of the Austrian company Bachmann three new big players—Hyundai Heavy electronic. The sale of wind turbines from Industries, Samsung Heavy Industries, and Denmark in 2008 is estimated to be about Hyundai-Rotem—entered the wind tur- 7 GW. Nearly all turbines manufactured bine manufacturing market in Korea with were exported. megawatt-scale wind turbines. In addition to the existing turbine manufacturers mar- 3.2 Industrial development and ket initially formed by companies such as operational experience Unison, Hanjin, Doosan Heavy Industries, 3.2.1 Turbines and Hyosung Heavy Industries, all major The average rated capacity of new tur- shipbuilding heavy industries are ready to bines installed in 2008 increased slightly to begin manufacture of wind turbines. Com- 1,872 MW. The increase is mainly thanks petition among these major heavy indus- to a large contribution provided by 2-MW tries might open a new era of accelerating turbines and a number of other machines technology development. ranging from 1.35 MW to 3 MW. For Several countries that do not have local example, in the Netherlands the average turbine manufacturing capabilities report generation capacity per installed turbine the manufacture of supporting components increased to 2.2 MW in 2008. This was

IEA Wind 17 Executive Summary

(Australia, Austria, Canada, Greece, Ireland, Small wind turbine domestic manu- Mexico, Switzerland, and the United King- facturing and encouragement of micro- dom). These include blades, control systems, generation are expanding the market for power inverters, generators, gearboxes, na- small wind turbines in Canada, Denmark, celle assembly, or towers. Italy, Japan, Portugal, Spain, and the Unit- In addition to megawatt-scale wind ed States. In Ireland, a microgeneration turbines, intermediate-sized turbines of field trial is planned for 2009 and 2010. 660 to 850 kW are being manufactured in The study will offer a financial incentive several countries for single turbine installa- for host sites to get involved. In Canada, tions or small wind power plants (Denmark, several companies are proposing small Germany, Italy, Korea, and the Netherlands). wind turbines that are at various stages of

Table 6 Capacity in Relation to Estimated Jobs and Economic Impact in 2008 Where Data Available Country Capacity Estimated Economic (MW) number of impact jobs (million euro) United States 25,369 85,000 12,206 Germany 23,902 90,000 Spain 16,740 40,000 2,250 Italy 3,736 18,309 1,800 United Kingdom 3,331 16,000 Denmark 3,163 25,000 5,300 Portugal 2,819 2,500 900 Canada 2,369 3,340 873

Netherlands 2,214 5,000 850 Japan 1,880 6,000 3,200 Australia 1,306 1,600 1,104 Sweden 1,047 Ireland 1,002 600 60 Austria 995 2,500 300 Greece 990 Norway 430 Korea 236 Finland 143 Mexico 85 Switzerland 14 600 200 Total 91,771 296,449 29,043

18 2008 Annual Report Executive Summary development. Some of the designs feature a with fewer public acceptance obstacles and vertical axis. The Wind Energy Institute of fewer issues of complex terrain. By the Canada has begun testing the small turbines close of 2008, more than 1,400 MW of that were selected following an RFP pro- capacity was located offshore in seven IEA cess completed in December 2007. The tur- Wind member countries, with about 300 bines being considered under this program MW added for the year. Many countries re- have a capacity of not more than 100 kW. port enormous offshore wind potential. The In the United States, more than 10,000 significant technical issues remaining for domestically manufactured small wind offshore wind development are the topic turbines were sold in 2008, equal to about of research in many of the participating 50% of the global market share and involv- countries and within the IEA Wind agreeing about one-third of the 219 identified ment in Task 23 Offshore Wind Technology manufacturers worldwide. With the increas- Deployment. ing number of small turbines entering the market, consumers are questioning product 3.2.3 New products and applications safety and quality. To help consumers com- The Dutch company Advanced Tower Sys- pare products or estimate performance, a tems, designed and developed a hybrid con- Small Wind Certification Council (SWCC) crete/steel tower for wind turbines on land has been formed as an independent cer- with hub-heights of 100 m to 150 m. The tification body for North America. Some tower is a prefabricated segmented pre-cast turbines submitted by manufacturers for concrete tower with a conventional tubu- certification will be tested in the United lar steel tower on top. The concrete part is States; others may be tested in Canada. made of sections that are easy to transport with ordinary trucks. The expected reduc- 3.2.2 Projects tion in the costs of energy is up to 10%. At The size of new wind energy projects is the end of 2008, the construction of the increasing in many countries. In the United demonstration project with the 100-m- States, more than 100 new wind projects high ATS tower and a Siemens Wind larger than 2 MW were installed in 25 Power SWT2.3-93 wind turbine started at states and resulted in nearly 5,000 turbines Windtest Grevenbroich in Germany. being commissioned in 2008. The average The wind turbine manufacturer Dar- size of the turbines installed in 2008 was winD developed a 5-MW direct-drive 1.67 MW, a slight increase from the 1.65 wind turbine with a rotor diameter of 115 MW in 2007. More than half of the tur- m for offshore applications. It includes a bines were 1.5 MW, and the largest turbines 5.3-m-diameter 3-kV direct-drive gen- were 3 MW. The average project size was erator with permanent magnets, a single about 70 MW. The world’s largest operating main bearing, innovative blades, a modern wind plant is the 735-MW Horse Hol- fully sealed overpressured tower and na- low facility, which covers 47,000 acres (190 celle, external air generator cooling, and km²) in Texas. In Spain, the average size of an integrated management control system. an installed wind farm in 2008 was 24 MW. The tower head mass is only 265 tons Canada has also experienced an increase in and promises a minimum of maintenance the size of wind farms, especially in prov- because there are fewer components. The inces with existing wind installations. This first prototype will be erected late in 2009 is mainly because smaller projects (less than on a 100-m tower at the ECN test field in 50 MW) can cost from 10% to 30% more Wieringermeer in the province of Noord because of economies of scale. Holland. Interest in offshore wind development ChapDrive AS is a newly established even in lakes is growing because it offers company in Norway developing a system the possibility of huge increases in capacity for hydraulic transmission of wind power.

IEA Wind 19 Executive Summary

The gearbox and the generator will be at the availability of turbines on the small ground level to reduce the weight at the nearshore farms is also high. Since 2005, all top of the tower. A pilot project has been Horns Rev offshore turbines operated at operating on a 225-kW wind turbine at nearly 100%, with an availability of 95% to VIVA AS test facility. An upgraded ver- 97%. In Sweden, the availability of turbines sion will be connected on a 900-kW wind at Lillgrund offshore wind park during its turbine by spring 2009. A 5-MW version is first full year of operation in 2008 was 94%. planned. Productivity is also relatively high—the Another system for locating the genera- result of good siting of farms based on na- tor at ground level is being developed by tional wind atlas data and the use of taller Anglewind, Norway. The system uses an towers to reach better wind resource. Re- “angle” concept and a new drivetrain sys- ported capacity factors ranged from 16% tem for mechanical transmission of power. (Switzerland) to 40% (Japan). In Mexico, Installation of a prototype (225 kW) is ex- wind power plants La Venta I (1.3 MW) pected by the end of 2009. and La Venta II (83.3 MW) operated at an Autoproducers have on-site genera- annual capacity factor of 34%, according to tion installed with the aim of displacing the manager of the wind power plants. It purchased electricity at retail rates. In Ire- had been expected that the capacity factor land, following the success of the 850-kW of La Venta II would exceed 40%; however turbine installed on campus in Dundalk in 2008, there were some constraints re- Institute of Technology, some industrial cus- garding the availability of the transmission tomers are exploring their options. Several line and some of the wind turbines. energy services companies offer to take on Reports are becoming available on off- all the risk in planning, designing, procur- shore projects. In the Netherlands, for ex- ing, installing, and operating megawatt-scale ample, results of the monitoring and evalu- turbines. They then offer to the energy user ation program of the offshore wind farm on site a tariff for the power produced that OWEZ, formerly known as NSW, became is guaranteed to be a percentage below the available in 2008. The General Report cov- retail rate for the period of the long-term ers the period from June 2005 until com- contract. With competitiveness becoming missioning at the end of 2006. increasingly difficult for industry in Ireland, In its Operations Report 2007, this arrangement is likely to be attractive to NoordzeeWind gives an account of the first high energy users with suitable sites. year of operation of the wind farm. It con- In Norway, a wind/hydrogen demon- tains monthly statistics and figures about the stration project at Utsira has now been in availability of the wind farm and its energy operation for two years. The purpose of the production. Calculated losses and downtime project is to demonstrate how renewable per subsystem affecting this energy yield are energy can provide safe and efficient energy also presented. It also contains a complete supply to isolated areas. The system is based overview of all data and reports delivered on wind energy as the only energy source. by NoordzeeWind on behalf of the MEP- Excess power is used to produce hydrogen, NSW in 2007. NoordzeeWind’s general which is to be used later in a fuel cell. conclusion in this Operations Report 2007 is that the wind farm, having generated 3.2.4 Operational experience 330 GWh, has performed satisfactorily. The Turbine availability is high in all countries, Operations Report 2008 will be available in ranging between 80% (for isolated areas) mid-2009. and 99%, with most countries reporting Other data have been collected during 98% or higher. In Denmark, the technical 2008 on corrosion and lightning; dynamics availability of new wind turbines on land is of turbines; aeroelastic stability; scour pro- between 98% and 100%. For offshore wind, tection; electricity production, disruptions,

20 2008 Annual Report Executive Summary failure data, availability, maintenance, and and guarantees. Decommissioning cost has reliability; power quality, grid stability and been estimated at approximately 5 €/kW. power forecasts; and wind turbine Power/ Explanations for higher costs varied by Voltage curve and wake effects. ECN and country. Spain reports that the increasing Delft Technical University have started sev- use of large wind turbines (2 MW of nomi- eral projects with some of these data under nal power), the increasing prices of raw an NDA agreement with NoordzeeWind. materials, the shortage of main components, and the excess demand for wind turbines 3.3 Economic details have increased prices for wind generators. 3.3.1 Turbine and total installed In Portugal, the cost depends on the tur- project costs bines’ characteristics and/or the country of Although many countries do not report manufacture. cost information, several member countries In the United Kingdom, the higher reported stable or slightly increasing wind capital costs of offshore are due to the in- turbine costs from 2007 to 2008 (Figure crease in size of structures and the logistics 2 and Table 7). Turbine costs reported by of installing the turbines at sea. The costs of the IEA Wind member countries averaged foundations, construction, installations, and from a low of 977 €/kW (U.S.) to a high grid connection are significantly higher off- of 1,800 €/kW (Austria) for 2008. Total shore than onshore. Typically, for example, installed costs onshore for 2008 in the re- offshore turbines are 20% more expensive, porting countries ranged from a low of 984 and towers and foundations can cost more €/kW (Mexico) to a high of 1,885 €/kW than 2.5 times offshore than onshore for a (Switzerland). Total installed costs offshore project of similar size. ranged from 2,100 €/kW (UK) to 3,230 €/ kW (Germany). 3.3.2 Operation and maintenance costs Some member countries have reported Costs for service, consumables, repair, insur- how costs of wind projects are distributed. ance, administration, lease of site, and so on, In Italy, the cost of installed wind turbines for new large turbines ranged from 1.3% to is at substantially the same level as it was 1.5% of capital cost per year. When O&M in 2007. The average installed plant cost of costs are mentioned by the member coun- a medium-sized wind farm (30 MW) at a tries, they are reported as fairly constant site of medium complexity, with 15 km of over the years. O&M costs are higher for paths/roads and 12 km of electric line for offshore turbines. connection to the high-voltage grid, is approximately 1,800 €/kW. This cost is gener- 3.3.3 Tariffs and cost of energy ally subdivided as follows: Key to the economic viability of a wind • Turbines, installation, and commis- project is the balance of costs and revenue. sioning, 1,270 €/kW: 70.6% Wind energy tariffs, feed-in tariffs, and • Development, namely site qualifica- buyback rates are the payments to the wind tion, design, administrative procedures, farm owner for electricity generated. In and so on, 236 €/kW: 13.1% some countries, this is the market price of • Interest on loans, 196 €/kW: 10.9% electricity. In others, the wind energy tariff • Connection to the grid, 73.8 €/kW: includes environmental bonuses or other 4.1% added incentives to encourage wind en- • Civil engineering work, 23.4 €/kW: ergy development. In many countries, the 1.3%. revenue of each wind farm is governed by the contract (power purchase agreement) Annual cost of operation and maintenance negotiated with the power purchaser, so has been estimated to be about 54 € /kW, the numbers reported by the IEA Wind which includes leasing of terrain, insurance, member countries are estimated averages or

IEA Wind 21 Executive Summary ranges. For explanations of revenue to wind emission permit prices have been volatile park owners, including tariffs and buyback and future and forward prices are about 40 rates, refer to the country chapters of this €/MWh for 2009–2010. Wind power still report. needs subsidies to compete, even on the IEA Wind Task 26 Cost of Wind En- best available sites in Finland. ergy, which will begin work in 2009, will In Canada, wind generation costs are survey the state of the art of calculating the estimated to be between 44 €/MWh and cost of wind energy in preparation for de- 70 €/MWh. For example, provincial calls veloping recommended practices for such for power in British Columbia, Ontario, calculations. and Québec and the Renewable Portfolio Several countries explained how cost Standard (RPS) in Prince Edward Island re- of energy might be calculated. In Finland, sulted in electricity prices from wind ener- on coastal sites the cost of wind energy gy in the range 45 €/MWh to 56 €/MWh. production could be about 50 €/MWh to In most cases, the latest price proposals have 80 €/MWh without subsidies (15 years, 7% shown the highest prices. The primary vari- internal rate of return), while the cost of ables associated with this cost range are the offshore production could be about 80 €/ cost of the wind turbines themselves, the MWh to 100 €/MWh. The average spot quality of wind resources, transmission con- price in the electricity market Nord Pool nection fees, the scale of operation, and the was 51 €/MWh in 2008 (30 €/MWh in size of turbines. 2007). Emission trade effects on the operat- In Greece, the cost of wind generated ing costs of thermal power have resulted in electricity could be assumed to be between an increase of spot market prices; however, 26 €/MWh and 47 €/MWh, depending on

Figure 2 Average total installed costs of wind projects 2007–2008 as reported by IEA Wind member countries. These include costs for turbines, roads, electrical equipment, installation, development, and grid connection.

22 2008 Annual Report Executive Summary

Table 7 Estimated Average Turbine Cost and Total Project Cost for 2008 Country Turbine cost (€/kW) Total installed cost (€/kW) Austria 1,400 to 1,800 Canada 1,057 to 1,291 Germany 941 to 1,340 onshore; 1,260 to 1,659 onshore; 1,350 to 1,500 offshore 2,625 to 3,230 offshore Greece 1,000 to 1,200 Ireland 1,100 1,700 Italy 1,270 1,800 Japan 1,000 to 1,200 1,800 to 2,200 Mexico 984 Netherlands 1,200 onshore; 3,200 offshore Portugal 1,061 1,297 Spain 1,400 Switzerland 1,450 1,885 United Kingdom 1,050 to 1,575 onshore; 2,100 to 3,150 offshore United States 977 the site and project cost. The typical interest tariff includes an initial remuneration of rate for financing wind energy projects is 92 €/MWh for at least 5 years and a maxi- 7% to 8%. mum of 20 years. After the initial period, In Norway, estimates of production the tariff is 50.2 €/MWh for a maximum costs from sites with good wind conditions of 20 years. Offshore turbines put into op- suggest a production cost of about 66 €/ eration by 31 December 2015 receive an MWh, including capital costs (discount initial remuneration of 150 €/MWh for 12 rate 8.0%, 20-year period), operation, and years. After that period, the basic tariff is 35 maintenance. During 2008, the spot market €/MWh until the maximum remuneration electricity price on the Nord Pool (Nordic period (20 years plus year of commission- electricity market place) increased until ing) is reached. Wind farms more than 12 autumn 2008 and then dropped noticeably. nautical miles away from the coast and in The forward price by the end of December waters deeper than 20 m receive a longer 2008 was 38 €/MWh. So far, wind energy initial period. is not competitive with the price of many In Spain, payment for electricity gener- new hydropower projects; hydro still is an ated by wind farms is based on a feed-in option for new green power in Norway. scheme. The owners of wind farms can Wind energy tariffs or buyback rates choose payment for electricity generated vary by country according to the incentive by a wind farm independent of the size structure. In Germany, the wind energy of the installation and the year of start-up.

IEA Wind 23 Executive Summary

For 2009, the value is 78.183 €/MWh; production from wind projects. The ITC the update is based on the Retail Price In- allows 30% of the investment in wind proj- dex minus an adjustment factor. They can ects to be refunded in the form of reduced choose instead payment calculated as the income taxes. The ITC may also be taken market price of electricity plus a premium, in the form of an up-front grant equivalent plus a supplement, and minus the cost of to 30% of the project value. The inflation- deviations from energy forecasting. There adjusted value of the PTC in 2008 was 21 is a lower limit to guarantee the economic USD/MWh (15 €/MWh) for wind energy. viability of the installations and an upper In Canada, the ecoENERGY for Renew- limit (floor and cap). For instance, the val- able Power program provides tax write-offs ues for 2009 are reference premium 31.27 as a production incentive to all renewable €/MWh, lower limit 76.098 €/MWh, and energy technologies. The 14-year program upper limit 90.692 €/ MWh. In 2008, the will invest close to 1.5 billion CAD (0.88 market price of electricity in Spain reached billion €) to increase Canada’s supply of 64.43 €/MWh. clean electricity from renewable sources In the United States, the sales price such as wind, biomass, low-impact hydro, of electricity was estimated by weighing geothermal, PV, and ocean energy. In 2007, projects by nameplate capacity to represent the tax write-off was increased from 30% to actual market prices. The average electric- 50% per year on a declining-balance basis. ity sales price for projects built in 2008 was Some IEA Wind member countries roughly 51.5 USD/MWh (36.98 €/MWh), have national and state governments that up from a low of 30.9 USD/MWh (22.19 require utilities to purchase a percentage €/MWh) for projects built in 2002 to 2003. of their overall generating capacity from This price is what the utility pays to the renewable resources. Often called renewable wind plant operator and includes the ben- portfolio standards (RPS) or renewables efit of the federal production tax credit and production obligation (RPO), they allow state incentives. utilities to select the most economical renewable technology. The preferred option 4.0 National Incentive Programs by most utilities to satisfy this obligation is In each country, the mix of incentive types wind energy. In the United States, 28 of the and the level of government at which they 50 states had adopted RPS approaches that are applied is unique and changing. Widely collectively called for utilities to procure ranging incentives are operating in the IEA about 23 billion kWh of renewable energy Wind member countries (Table 8). Those in 2008. mentioned most often include direct capi- Wind energy qualifies as green electric- tal investment such as subsidies or grants ity used to meet utility RPOs, to trade as for projects, providing a premium price certificates, or to meet consumer prefer- for electricity generated by wind (tariffs or ences. In Australia, a state-based renewable production subsidies), obliging utilities to energy target scheme requires electricity purchase renewable energy, and providing a retailers and wholesale purchasers in Victo- free market for green electricity. ria to acquire Victorian Renewable Energy Tax credit incentives based on invest- Certificates. Because wind projects can cre- ment or electrical generation are also ate these certificates, at least two large wind gaining popularity. In the United States, energy projects were able to move forward. the very effective production tax credit Clear, consistent programs give the industry (PTC) and investment tax credits (ITC) a firm foundation. for wind energy development were ex- Other kinds of support have also ac- tended through 2012. The PTC provides celerated the development of wind energy an income tax credit based on electricity in the IEA Wind member countries. For

24 2008 Annual Report Executive Summary

Table 8 Types of Incentive Programs in IEA Wind Member Countries Type of program Description Enhanced feed-in tariff An explicit monetary reward is provided for wind-generated electricity, paid (usually by the electricity utility) at a rate per kilowatt-hour somewhat higher than the retail electricity rates being paid by the customer Capital subsidies Direct fi nancial subsidies aimed at tackling the up-front cost barrier, either for specifi c equipment or total installed wind system cost Green electricity schemes Allows customers to purchase green electricity based on renewable energy from the electricity utility, usually at a premium price Wind-specifi c green electricity Allows customers to purchase green electricity from wind schemes plants from the electricity utility, usually at a premium price Renewable portfolio standards A mandated requirement that the electricity utility (often (RPS) or renewables production the electricity retailer) source a portion of its electricity obligation (RPO) supplies from renewable energies Wind requirement in RPS A mandated requirement that a portion of the RPS be met by wind electricity supplies (often called a set-aside) Investment funds for wind en- Share offerings in private wind investment funds plus other ergy schemes that focus on wealth creation and business success using wind energy as a vehicle to achieve these ends Income tax credits Allows some or all expenses associated with wind installation to be deducted from taxable income streams Net metering In effect the system owner receives retail value for any excess electricity fed into the grid, as recorded by a bidirec- tional electricity meter and netted over the billing period Net billing The electricity taken from the grid and the electricity fed into the grid are tracked separately, and the electricity fed into the grid is valued at a given price Commercial bank activities Includes activities such as preferential home mortgage terms for houses including wind systems and preferential green loans for the installation of wind systems Electricity utility activities Includes green power schemes allowing customers to purchase green electricity, wind farms, various wind generation ownership and fi nancing options with select customers, and wind electricity power purchase models Sustainable building require- Includes requirements on new building developments ments (residential and commercial) to generate electricity from renewables including wind microgeneration Special planning activities Areas of national interest set aside for considering wind energy development

IEA Wind 25 Executive Summary example, publishing wind energy atlases de- 13 counties have been identified as areas of veloped with public research money helps national interest for electricity production developers select productive sites (Austria, to protect the potential for wind energy Finland, Italy). In Canada, some provincial development. initiatives require projects to have elements manufactured in the region. This has helped 5.0 R, D&D Activities develop a wind industrial base in Canada. 5.1 Setting priorities To stimulate the industrial base, Portugal An important activity of the wind energy has also used domestic manufacturing as research community is the setting of pri- a requirement for government-supported orities for investment of precious research project proposals. money. In 2008, the IEA Wind agreement Microgeneration (i.e., small wind tur- developed a new strategic plan to guide the bines) is being promoted in several coun- agreement for another five years from 2008 tries with new incentive approaches. An through 2013. The key R, D&D areas iden- indirect incentive for the deployment of tified include: microgeneration is provided in Ireland un- 1. Wind technology research to improve der the Building Energy Ratings scheme performance and reliability at competitive (BER). Irish building regulations require costs that new dwellings have a portion of their 2. Power system operation and grid in- energy demands met by renewable sources tegration of high amounts of wind genera- on site. The designer has a choice between tion, including development of fully con- sourcing this energy through either renew- trollable, grid-friendly “wind power plants” able thermal or renewable electrical means 3. Planning and performance assessment (4 kWh/m2/year electrical or 10 kWh/m2/ methods for large wind integration year thermal). The contribution of a wind 4. Offshore wind in shallow and deep turbine can be included in the BER once waters its performance over a year has been veri- 5. Social, educational, and environmen- fied. In the United States, many states also tal issues have policies and incentives for small wind In the EU, the European Wind Energy electric systems. These incentives include Technology Platform (TPWind), operating rebates and buy-downs, production incen- since 2006, is an industry-led initiative to tives, tax incentives, and net metering. The identify and prioritize areas for increased subsidy or rebate may be as much as 50% innovation, new and existing research, and of the cost of a small wind turbine. The development tasks. In June 2008, TPWind rebates become even more effective when issued its Strategic Research Agenda and combined with low-interest loans and net Market Deployment Strategy documents. In metering programs. In Ireland, there is 2009 it will release a list of projects consti- growing interest in microgeneration. Inter- tuting the implementation plan of the stra- est is expected to increase further now that tegic research agenda of the European wind the largest electricity supplier intends to of- energy sector. fer 0.09 €/kWh to its domestic customers In Canada, a wind energy technology for electricity they deliver to the grid. roadmap is being developed. The goal is to Areas of national interest have been determine investment areas in research and designated in Sweden to promote good development required to achieve overall management from the point of view of (social, environmental, and technological) public interest. These areas for fishery, min- cost reductions and to increase Canadian ing, nature preservation, outdoor recreation, industrial and economic benefits. and so on, can be of national interest for In Germany, the aims and priorities several kinds of land use. Forty-nine areas in of wind power research are determined at regular strategy meetings with experts. The

26 2008 Annual Report Executive Summary most recent strategy meeting led to the new related to wind energy has also been government funding announcement for launched in 2008, for another 14.6 million research projects to reduce costs, increase €. In the United States, the budget for the yields, and improve the availability of wind federal Wind Program was close to 50 mil- turbines. Projects will also develop tech- lion USD (36 million €) for fiscal year (FY) nologies to expand offshore wind power 2008 (1 October 2007 through 1 October (including research at the alpha ventus test 2008). The budget approved for FY 2009 site) and perform the ecological research was 55 million USD (39.5 million €). The and improve the technology of wind tur- budget for FY 2010 will be 75 million bines to reduce ecological impacts. USD (53.9 million €). In Spain, a new R&D plan was developed in 2008 that covers 2008 to 2011 for 5.3 Test site news the national government. It is based on the Test sites for large and small wind turbines national science and technology strategy and for components comprise an important instead of on thematic areas as in previous part of the national research programs. calls for proposals. A new research center has been estab- In the United Kingdom, wind power, lished in Québec, Canada, for the study of both onshore and offshore will be a key wind turbine operation in cold climates. growth area. One scenario is that by 2020, The Corus Centre is surrounded by two offshore wind capacity could be ~14 GW, wind farms with a total capacity of 108 compared with less than 1 GW today. This MW, making it a unique natural laboratory. would require the installation of a further An icing wind tunnel for instrument and 3,000 offshore turbines, rated at 5 MW. Ini- material research and testing in icing condi- tial government models indicate that ~13 tions was put up in 2008 at the VTT Tech- GW of onshore wind generation capacity nical Research Centre of Finland. It will be will be required by 2020, as compared with used to develop technologies, components, 2.7 GW in early 2009. This equates to ap- and solutions for large wind turbines. proximately 4,300 onshore turbines rated at The first German offshore wind farm 3 MW. It is expected that a large proportion alpha ventus began construction in 2008 of this onshore wind development will take 45 km north of the North Sea island of place in Scotland. Borkum. The wind farm will begin with 12 5-MW wind turbines from Multibrid 5.2 Research funding and REpower, with a total installed capac- Some countries report increased budgets ity of 60 MW. The transformer substation for R&D in 2008 and 2009. In the EU, was completed in 2008 with a height of 60 more than 20 R&D projects were running m and weighing more than 1,300 tons. The with the support of the Sixth and Seventh transformer substation is located about 2 Framework Programmes of the EU (the km from the BMU research platform FI- Framework Programmes are the main NO 1. The submarine cable was also laid in EU-wide tool to support strategic research 2008. As a test and demonstration project, areas). Many IEA Wind member countries alpha ventus will be the first use of offshore participate, often in leadership roles, in these wind power in Germany. joint research projects. Denmark’s funding A miniature version of a full-scale for wind energy R&D was increased about wind farm was completed for research at 1.3 million € in 2008. In Germany, R&D ECN, the Netherlands, as an integral part support from the Federal Ministry for the of ECN’s test field for multimegawatt-class Environment grew from 35 million € in wind turbines. The scaled wind farm re- 2007 to 40.1 million € in 2008. Additional search facility has 10 10-kW turbines and research into grid integration technologies 14 carefully placed wind metering masts at two distinct heights, 7.5 m and 18.9 m.

IEA Wind 27 Executive Summary

ECN will use the scaled wind farm for re- compared their predictions of gear-tooth search on wind turbine wake modeling and loads and bearing loads. Next they will verification. compare these predictions with test data, In September, a new Wind Turbine Test improve design codes, and improve gearbox Laboratory (www.cener.com) was inaugu- designs. An instrumented drivetrain and rated at CENER, Spain. It includes a Blade gearbox will be tested in a 2.5-MW dyna- Test Plant to characterize physical proper- mometer test facility at NREL in Colorado, ties and to conduct static and fatigue tests United States. for blades of up to 85 m. long. The Power Better understanding of aerodynam- Train Test Bench can perform mechanical ics and wind turbines can contribute to durability tests on low speed shaft, mul- improving reliability. This is the goal of the tiplier, high speed shaft and generator for IEA Wind Task 29 MexNex(t) which is turbines of up to 5 MW. The Electrical Test the successor of IEA Wind Task 20 HAWT Bench can test generators and power elec- Aerodynamics and Models from Wind Tun- tronics equipment. The Nacelle Test Bench nel Measurements. It will use wind tunnel tests complete nacelles and tooling trials measurements from the EU project Model and is used to train personnel in assembly Experiments in Controlled Conditions and maintenance. The Composite Mate- (MEXICO) to validate the design codes rial Laboratory addresses manufacturing and aerodynamic models used by wind tur- processes of components with composite bine developers. materials and characterizes process control variables and the physical, chemical and 5.5 Small wind turbines mechanical properties of materials. Increased interest in small wind turbine technology was mentioned by several coun- 5.4 Large turbine development tries. In Spain, work is under way to sup- Larger turbines are being designed for both port the small wind turbine sector through onshore and offshore applications, and sev- promotion, dissemination, sensitization, and eral new designs and approaches appeared information collection. In line with this in 2008. work, CIEMAT will serve as Operating In Korea, as a result of government Agent for the new IEA Wind Task 27 Con- support in previous years, 750-kW and 1.5- sumer Labeling of Small Wind Turbines. MW wind turbines were successfully tested In Portugal, the T-URBan project, a and certified by GL and DEWI Offshore prototype small (2.5-kW) wind turbine and Certification Centre GmbH, respec- with horizontal axis, is in the test phase. tively. In 2008, two 2-MW wind turbines This turbine has a 2.3-m rotor diameter from different manufacturers were installed and is designed for a 10- to 15-m-high and remained under field testing through tower. This project, designed and construct- mid-2009. ed using Portuguese technology, continues Gearbox reliability was addressed in demonstration testing as part of the urban an IEA Wind Task 11 Base Technology wind power effort. Information Exchange Topical Experts In Ireland, a major wind R, D&D Meeting in 2008. Several countries are activity in 2009 will support 40% of the conducting research to improve reliability. start-up and short-term-maintenance costs The U.S. Wind Program initiated a wind of small wind turbines. The support will be turbine Gearbox Reliability Collaborative available in approximately 50 trial locations. to validate the design process, including Overall budget for the study is 2 million €. everything from calculating system loads to Data monitoring at all of the sites for the rating bearings to testing full-size gearboxes. 18-month duration of the study will as- In 2008, an international team of analysts sess the performance of the technologies

28 2008 Annual Report Executive Summary and inform future decisions on possible large-scale electricity storage. This is mainly incentives, tariffs, or deployment programs. because of the increasing flexibility of the To protect customers and prescribe best system and the expansion and better use of practices in the pilot, turbine suppliers and interconnectors. manufacturers applying for inclusion in the The University of Genoa, Italy, has de- pilot will be required to supply equipment veloped a model to study the variable char- that conforms to the appropriate European acter of wind energy and its consequences standards (EN 61400-2/11/12), as will the for electrical power systems. The model associated inverters (EN 50438). Best prac- identifies the optimal allocation of wind tices are prescribed in an effort to ensure power plants over an extended geographic high-quality and safe installations in a fledg- territory. This allows lower temporal vari- ling sector sensitive to the impact of bad ability of the aggregate wind power output customer experiences on future growth. and guarantees a contribution to base-load power supply. To date, this model has been 5.6 Costs applied on the island of Corsica, and by The members of IEA Wind have agreed means of this optimization, wind energy that a clear, impartial voice regarding the fluctuation in the power supply system of costs of wind systems is needed to avoid Corsica has been reduced by about 58%, the publication of erroneous costs of wind with an energy production loss of 23%. systems. Task 26 Cost of Wind Energy will provide the tools to compare the costs 5.8 Environmental impacts of wind energy with other electricity- Preserving bats and birds in areas of wind generating technologies. It will modify the power development is a goal of work in underlying assumptions that are applied to the United States. Changes to operations the different technologies. Finally, this task during low wind conditions at a plant in aims to form the basis for a more compre- rural Pennsylvania, owned and operated by hensive analysis of the value of wind energy. Iberdrola Renewables, demonstrated nightly The Netherlands, for example, participates reductions in bat fatality ranging from 53% in Task 26 because it will give insight into to 87% with marginal annual power loss. In international cost data for offshore wind other studies, an acoustic system to discour- energy that can be used for policy decisions. age bats from entering wind facilities will be field tested, and researchers are investi- 5.7 Grid integration gating whether artificial intelligence can be IEA Wind Task 25 Power Systems with used to detect the presence of birds using Large Amounts of Wind Power published Next-Generation Radar (NEXRAD) data. the final report of its first phase showing NEXRAD is a network of 158 high-reso- that the impact of a large share of wind lution Doppler weather radars operated by power can be controlled by appropriate the National Weather Service. The program grid connection requirements, exten- is working with the U.S. Geological Survey sion and reinforcement of transmission and Montana State University to develop networks, and integration of wind power algorithms to differentiate biological (bird) production and production forecasts into echoes in the NEXRAD data to help iden- system and market operation. tify migratory flyways. A study in the Netherlands of the op- In the United States, in 2008, a study erational effects, cost/benefits, costs of grid funded by the Department of Homeland integration, and market effects of storage Security concluded that wind farms can concluded that integration of 4 GW to 10 interfere with radar tracking of aircraft and GW of wind power in the Dutch Electric- weather but that no fundamental physical ity generation system is possible without constraint prohibits the accurate detection

IEA Wind 29 Executive Summary of aircraft and weather patterns around countries. To support the increasing need wind farms. Interference occurs when radar for durable, cost-effective machinery, larger signals are reflected back by wind turbines, technology research budgets will be pro- causing clutter on the radar screens. The re- vided by growing national and industrial port also concluded that it is difficult to dis- research programs. tinguish wind farm signatures from airplane and weather signatures and that quantitative References: evaluation tools and metrics are needed to (1) The Windicator, Windpower determine when a wind farm poses a suf- Monthly, April 2009, Denmark: Wind Pow- ficient threat to a radar installation. er Monthly News Magazine. Environmental impacts were studied (2) Statistics for IEA Wind member during the construction of the German countries have been provided by the au- FINO 3 offshore research platform. To thors of the Country Chapters and repre- reduce noise emissions, an air bubble cur- sent the best estimates of their sources in tain was constructed with a radius of 70 m February 2009. around the construction site. Scientists re- (3) IEA Wind Annual Reports 1995– corded the sound pressure levels at various 2007, www.ieawind.org. distances from the site. Initial data analysis (4) IEA R&D Wind Annex XV reports suggests that the air bubble curtain achieved 1995, 1997. a total noise reduction of 12 decibels, with (5) Wind Directions, http://www.ewea. a reduction of 30 to 35 decibels in the fre- org/fileadmin/ewea_documents/docu- quency range between 1 and 7 kilohertz. ments/publications/WD/WD22vi_public. Biologists also spent several days studying pdf the effectiveness of measures to protect (6) British Wind Energy Association porpoises. Initial results indicate that dur- (BWEA) report, http://www.bwea.com/ ing construction, no porpoises entered the pdf/planning/planningdelays.pdf hazardous zone around the site. Two weeks (7) IEA Wind, 2008, End-of-Term Re- later, the number of porpoises had returned port and Strategic Plan, 1 November 2008 to the preconstruction level. to 31 October 2013, www.ieawind.org.

6.0 Next Term Author: Patricia Weis-Taylor, Secretary, Continued growth in deployment is IEA Wind. expected in most IEA Wind member

30 2008 Annual Report Chapter 1 Implementing Agreement

1.0 Introduction to by their annex number. The numbers of The International Energy Agency (IEA) active Tasks may not be sequential because Implementing Agreement on wind energy some Tasks have been completed and so do began in 1977 and is now called the Imple- not appear as active projects in this report menting Agreement for Co-operation in (Table 2). the Research, Development, and Deploy- The combined effort devoted to a task ment of Wind Energy Systems (IEA Wind). is typically the equivalent of several people The 24 participating countries and inter- working full-time for a period of three national organizations (contracting parties) years. Some tasks have been extended to work to develop and deploy wind energy continue the work. The projects are either technology through vigorous national cost-shared and carried out in a lead coun- programs and through cooperative interna- try, or task-shared, when the participants tional efforts. The participants exchange in- contribute in-kind effort, usually in their formation on their continuing and planned home organizations, to a joint research pro- activities and participate in selected IEA gram coordinated by an Operating Agent. Wind Research Tasks. In 2008, 24 contract- In most projects each participating organi- ing parties from 20 countries, the European zation agrees to carry out a discrete portion Commission, and the European Wind En- of the work plan. This means that each par- ergy Association (EWEA) participated in ticipant has access to research results many IEA Wind (Table 1). times greater than could be accomplished in any one country. For example, as report- 2.0 National Programs ed in the End-of-Term Report submitted The national wind energy programs of to IEA, the following statistics for recently the participating countries are the basis completed tasks show the benefit of coop- for the IEA Wind collaboration. These erative research. national programs are directed toward the • Task 20 HAWT aerodynam- evaluation, development, and promotion ics and models from wind tunnel of wind energy technology. An overview measurements. and analysis of national program activities is - Contribution per participant: presented in the Executive Summary of this $9,375 USD plus in-kind effort Annual Report. Individual county activities - Total value of shared labor received are presented in Chapters 11 through 31. by each participant: $2,036,300 USD 3.0 Collaborative Research • Task 21 Dynamic models of wind In 2008, participants in the IEA Wind farms for power system studies Agreement worked on nine cooperative - Contribution per participant: Research Tasks, which have been approved 15,500 Euro plus in-kind effort by the ExCo as Annexes to the original - Total value of shared labor re- Implementing Agreement text. Each mem- ceived: 4,760,000 Euro ber country must participate in at least one • Task 24 Integration of wind and hy- cooperative research Task. Countries choose dropower systems to participate in Tasks that are most relevant - Contribution per participant: $16,430 to their current national research and de- USD plus in-kind effort velopment programs. Additional Tasks are - Total value of shared labor received: planned when new areas for cooperative $6,237,000 USD research are identified by Members. Prog- By the close of 2008, 18 tasks had ress in cooperative research is described in been successfully completed and two tasks chapters 2 through 10. Tasks are referred had been deferred indefinitely (Table 3).

IEA Wind 31 Implementing Agreement

Table 1 Contracting Parties in 2008 to the International Energy Agency Implementing Agreement for Co-operation in the Research, Development, and Deployment of Wind Energy Systems (IEA Wind) Country/Organization Contracting Party to Agreement Australia Clean Energy Council Austria Republic of Austria Canada Natural Resources Canada Denmark Danish Energy Authority European Commission Commission of the European Communities Finland National Technology Agency of Finland (TEKES) Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety Greece Center of Renewable Energy Resources (CRES) Ireland Sustainable Energy Ireland Italy CESI RICERCA S.p.A. and ENEA Cassaccia Japan National Institute of Advanced Industrial Science and Technology (AIST) Korea Government of Korea Mexico Instituto de Investigaciones Electricas (IIE) Netherlands Netherlands Agency for Energy and the Environment (SenterNovem) Norway Norwegian Water Resources and Energy Directorate (NVE) and Enova SF Portugal National Institute for Engineering and Industrial Technology (INETI) Spain Instituto de Energias Renovables (IER) of the Centro de Investigación; Energetica Medioambiental y Tecnologica (CIEMAT) Sweden Swedish Energy Agency Switzerland Swiss Federal Ofﬁ ce of Energy United Kingdom Department for Business, Enterprise & Regulatory Reform United States U.S. Department of Energy Sponsor Participants EWEA European Wind Energy Association

32 2008 Annual Report Implementing Agreement

Table 2 Active Cooperative Research Tasks Deﬁ ned in Annexes to the IEA Wind Implementing Agreement (OA indicates operating agent that manages the task) Task 11 Base technology information exchange OA: Vattenfall, Sweden (1987 to 2008) changing to CENER, Spain (2009-2010) Task 19 Wind energy in cold climates OA: Technical Research Centre of Finland - VTT (2001 to 2008) Task 23 Offshore wind energy technology deployment OA: Risø National Laboratory, Denmark and NREL, United States (2004 to 2008) Task 24 Integration of wind and hydropower systems OA: NREL, United States (2004 to 2008) Task 25 Power systems with large amounts of wind power OA: Technical Research Centre of Finland – VTT, Finland (2005 to 2008) Task 26 Cost of wind energy OA: NREL, United States (2008 to 2011) Task 27 Consumer labeling of small wind turbines OA: CIEMAT, Spain (2008 to 2011) Task 28 Social acceptance of wind energy projects OA: ENCO Energie-Consulting AG, Switzerland (2008 to 2011) Task 29 MexNex(T): Analysis of wind tunnel measurements and improvement of aerodynamic models OA: ECN, the Netherlands (2008 to 2011)

Final reports of tasks are available through party may designate members or alternate the IEA Wind Web site: www.ieawind.org. members from other organizations within Table 4 shows participation by members in the country. active research tasks in 2008. The ExCo meets twice each year to To obtain more information about the exchange information on the R&D pro- cooperative research activities, contact the grams of the members, to discuss work Operating Agent Representative for each progress on the various Tasks, and to plan task listed in Appendix B or visit our Web future activities. Decisions are reached by site at www.ieawind.org under the tab for majority vote or, when financial matters cooperative research or follow the links to are decided, by unanimity. Members share individual Task Web Sites. the cost of administration for the ExCo through annual contributions to the Com- 4.0 Executive Committee mon Fund. The Common Fund supports Overall control of information exchange the efforts of the Secretariat and other ex- and of the R&D tasks is vested in the Ex- penditures, such as preparation of this An- ecutive Committee (ExCo). The ExCo nual Report, approved by the ExCo in the consists of a Member and one or more annual budget. Alternate Members designated by each contracting party that has signed the IEA Officers Wind Implementing Agreement. Most In 2008, Ana Estanqueiro (Portugal) served countries are represented by one contract- as Chair. Morel Oprisan (Canada) and ing party that is a government department Brian Smith (United States) served as Vice or agency. Some countries have more than Chairs. Brian Smith was elected to serve as one contracting party within the country. Chair in 2009. Hannele Holttinen (Finland) International organizations may join IEA and Joachim Kutscher (Germany) were Wind as sponsor members. The contracting elected to serve as Vice Chairs in 2009.

IEA Wind 33 Implementing Agreement

Table 3 Completed or Inactive Cooperative Research Tasks Defi ned in Annexes to the IEA Wind Implementing Agreement (OA indicates operating agent that manages the task) Task 1 Environmental and meteorological aspects of wind energy conversion systems OA: The National Swedish Board for Energy Source Development (1978 to 1981) Task 2 Evaluation of wind models for wind energy siting OA: U.S. Department of Energy - Battelle Pacifi c Northwest Laboratories (1978 to 1983) Task 3 Integration of wind power into national electricity supply systems OA: Kernforschungsanlage Jülich GmbH, Germany (1978 to 1983) Task 4 Investigation of rotor stressing and smoothness of operation of large-scale wind energy conversion systems OA: Kernforschungsanlage Jülich GmbH, Germany (1978 to 1980) Task 5 Study of wake effects behind single turbines and in wind turbine parks OA: Netherlands Energy Research Foundation (1980 to 1984) Task 6 Study of local fl ow at potential WECS hill sites OA: National Research Council of Canada (1982 to 1985) Task 7 Study of offshore WECS OA: UK Central Electricity Generating Board (1982 to 1988) Task 8 Study of decentralized applications for wind energy OA: UK National Engineering Laboratory. (1984 to 1994) Task 9 Intensifi ed study of wind turbine wake effects OA: UK National Power plc (1984 to 1992) Task 10 Systems interaction. Deferred indefi nitely Task 12 Universal wind turbine for experiments (UNIWEX) OA: Institute for Computer Applications, University of Stuttgart, Germany. (1988 to 1995) Task 13 Cooperation in the development of large-scale wind systems OA: National Renewable Energy Laboratory (NREL), USA. (1990 to 1995) Task 14 Field rotor aerodynamics OA: ECN, the Netherlands (1992 to 1997) Task 15 Annual review of progress in the implementation of wind energy by the member countries of the IEA OA: ETSU, the United Kingdom (1994 to 2001) Task 16 Wind turbine round robin test program OA: NREL, the United States. (1995 to 2003) Task 17 Database on wind characteristics OA: RISØ National Laboratory, Denmark (1999 to 2003) Task 18 Enhanced fi eld rotor aerodynamics database OA: Netherlands Energy Research Foundation - ECN, the Netherlands. (1998 to 2001) Task 20 HAWT aerodynamics and models from wind tunnel tests OA: NREL, the United States (2003 to 2007) Task 21 Dynamic models of wind farms for power system studies OA: SINTEF Energy Research, Norway (2003 to 2007) Task 22 Market development for wind turbines. Deferred indefi nitely.

34 2008 Annual Report Implementing Agreement

Table 4 Participation of Member Countries in Tasks During 2008. (OA indicates operating agent that manages the task) 11 19 23 24 25 26 27 28 29 Australia x x Austria Canada x x x x x x Denmark x OA x x x European x Commission European Wind x Energy Association

Finland x OA x OA x Germany xxx xx xx Greece

Ireland x x Italy x Japan x xxx Republic of Korea x x x Mexico x Netherlands x x x x OA Norway xxxxx xx Portugal x x Spain x x x x OA x Sweden OAxxxxxx x SwitzerlandxxxxOA United Kingdom x x x x x United States x xOAOAxOAxx x Totals 177107127 7 711

Participants (RD&D). The first meeting of the year is In 2008, there were no changes in IEA devoted to reports on R&D activities in the Wind country participation however there member countries and in the Tasks, and the were personnel changes among the Mem- second meeting is devoted to reports about bers and Alternate Members. (See Appendix deployment activities. B for Members, Alternate Members, and The 61st ExCo meeting was hosted by Operating Agent representatives who served Denmark in the city of Aalborg on 22, 23, in 2008.) and 24 April 2008. There were 32 participants from 15 of the contracting parties. Meetings Attendees included eight operating agent The ExCo meets twice a year to review representatives of the Tasks and a represen- ongoing Tasks; plan for new Tasks; and tative of IEA Paris. The ExCo approved report on national wind energy research, the final report of Task 20 HAWT Aero- development, and deployment activities dynamics and Models from Wind Tunnel

IEA Wind 35 Implementing Agreement

Measurements and closed the project. The The IEA Wind ExCo unanimously ap- ExCo approved the final report of Task 21 proved the End-of-Term Report and Stra- Dynamic Models of Wind Farms for Power tegic Plan documents to extend the Imple- System Studies and closed the project. menting Agreement for another 5 years by Technical progress reports of ongoing tasks email ballot on 15 August 2008. were also approved: Task 11 Base Technol- The key RD&D areas for the wind ogy Information Exchange, Task 19 Wind energy sector were identified by the IEA Energy in Cold Climates, Task 23 Offshore Wind ExCo as follows: Wind Technology Deployment, Task 24 1. Wind Technology Research to Im- Integration of Wind and Hydropower Sys- prove Performance and Reliability at Com- tems, Task 25 Power Systems With Large petitive Costs Amounts of Wind Power, and Task 26 Cost 2. Power System Operation and Grid of Wind Energy. Proposals for three new Integration of High Amounts of Wind Tasks (27 Consumer Labeling of Small Generation Including Development of Wind Turbines, 28 Social Acceptance of Fully-controllable, Grid-friendly “Wind Wind Energy Projects, and 29 MexNex(T) Power Plants” Aerodynamics) were approved to move for- 3. Planning and Performance Assess- ward. The audit report of 2007 Common ment Methods for Large Wind Integration Fund accounts was approved. On 24 April 4. Offshore Wind in Shallow and Deep 2008, the ExCo visited Aalborg University’s Watters Institute for Water, Earth, and Environment 5. Social, Educational, and Environ- and the test sites in Fredrikshavn Harbour. mental Issues Siemens welcomed the ExCo to tour the In the next five years the IEA Wind new Blade Factory in Aalborg. Agreement will focus on the completion The 62nd ExCo meeting was hosted by of the R&D work already initiated and the United States and the Commonwealth develop new research Tasks related to these of Massachusetts in Boston, Massachusetts five key research areas. on 23, 24, and 25 September 2007. There A planning committee consisting of the were 29 participants from 15 contracting Chair, Vice Chairs, the Secretary, the former parties, including nine operating agent rep- Chair, and the Operating Agent Represen- resentatives of tasks, and six observers. The tative for Task 11 Base Technology Infor- ExCo approved the budgets for the ongo- mation Exchange perform communication ing tasks and for the Common Fund for and cooperation activities between ExCo 2009. On 25 September, the ExCo visited meetings. Support for IEA Paris initiatives the town of Hull and met with the util- has been provided by the Planning Com- ity and town officials about the town’s two mittee. This support included attending wind turbines which have tremendous sup- NEET meetings in Russia, attending IEA port in the community. They also viewed meetings to present the End-of-Term Re- the site of the future blade test facility on port and Strategic Plan for extension of the Boston Harbor. IEA Wind agreement, supplying materials for ministerial meetings, reviewing draft 5.0 Outreach activities IEA documents that address wind technol- The 30th issue of the IEA Wind Energy ogy, and supplying text for drafts of IEA an- Annual Report was published in July 2008 nual reporting documents. and the Web site, www.ieawind.org continued to expand coverage of IEA Wind activities.

36 2008 Annual Report Chapter 2 Task 11 Base Technology Information Exchange

1.0 Introduction immediately available to countries that par- The objective of this research Task is to ticipate in the Task. After one year, proceed- promote wind turbine technology by ings are made public on the IEAWind.org co-operative activities and information Web site. Only experts from participating exchange on R, D&D topics of common countries may attend meetings. interest. These particular activities have been part of the IEA Wind Implementing 2.0 Objectives and Strategy Agreement since 1978. Most of the IEA The Task includes activities in two sub- Wind member countries participate in this tasks. The first is to develop recommended Task so that researchers in their countries practices for wind turbine testing and eval- can benefit from this information exchange uation by assembling an Experts Group for (Table 1). Proceedings of the meetings are each topic needing recommended practices.

Table 1 IEA Wind Task 11 Participants in 2008 Country Contracting Party Canada Natural Resources Canada Denmark Danish Energy Agency European Commission European Commission Finland Technical Research Center of Finland (TEKES) Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety Ireland Sustainable Energy Ireland Italy CESI RICERCA S.p.A. Japan National Institute of Advanced Industrial Sci- ence and Technology (AIST) Korea New & Renewable Energy Division of the Ministry of Knowledge Economy Mexico Instituto de Investigaciones Eléctricas (IIE) The Netherlands Senter/Novem Norway Enova SF Spain CIEMAT Sweden Swedish Energy Agency; Vattenfall (OA) Switzerland Swiss Federal Ofﬁ ce of Energy United Kingdom Department for Business, Enterprise & Regulatory Reform United States U.S. Department of Energy

IEA Wind 37 Task 11

In the series of Recommended Practices, 3.0 Progress in 2008 11 documents have been published. Five To complete the work plan approved by of these have appeared in revised editions the ExCo, three meetings were planned and (Table 2). Many of the documents have completed during 2008: served as the basis for both international • 57th Topical Expert Meeting on and national standards. Wind Turbine Drivetrain Dynamics The second sub-task is to conduct two and Reliability types of meetings of experts on topics des- • 3rd Joint Action Symposium on ignated by the IEA Wind ExCo. The first Wind Forecasting Techniques. kind of meeting is a Joint Action Sympo- The fourth meeting of the year will be sium at which experts meet regularly to arranged during 2009. share progress. So far, Joint Action Symposia have been held on aerodynamics of wind 3.1 Smart structures for large blades turbines, wind turbine fatigue, wind char- The objective of the 56th Topical Expert acteristics, offshore wind systems, and wind Meeting on the Application of Smart forecasting techniques. The second type of Structures for Large Wind Turbine Rotor meeting, Topical Expert Meetings, are ar- Blades, held in 2008, was to report and dis- ranged on topics decided by the IEA Wind cuss progress of R&D in this relatively new ExCo. Proceedings are distributed to at- field of wind turbine technology. Much tendees and to the countries that pay fees to knowledge had been accumulated since the participate in IEA Wind Task 11. Sometimes previous meeting on this topic in Decem- Topical Expert Meetings result in a recom- ber 2006. In 2006, participants discussed mendation for a Joint Action, so participants basic performance of materials and flap can continue to share information on a principles. In 2008, they were able to report regular basis. results of actual tests that incorporated blade Topical Expert Meetings can also be- profiles equipped with movable flaps. Mi- gin the process of organizing new research cro-tabs equipped with control algorithms tasks as additional annexes to the IEA Wind and actuators were also tested. The field Implementing Agreement. For example, now applies a more integrated approach in 2007, the meeting on social acceptance by testing materials, measuring loads, and issues of wind energy projects brought evaluating control strategies. together interested experts who wrote a During final discussions, participants proposal for a new research task, Social Ac- agreed that this is a new and challenging ar- ceptance of Wind Energy Projects. This task ea of wind turbine research that may result began its work in 2008. in more effective ways of controlling power During these 28 years of activity to production. Highlights of the discussion in- promote wind turbine technology through clude the following: information exchange, 57 volumes of pro- • Shape memory alloys (SMAs) have a ceedings from Topical Expert Meetings (Ta- slow reaction as actuators, which could ble 3) and 27 volumes of proceedings from be a problem. Joint Action Symposia (Table 4) have been • Surface suction and rubber trailing published. The Task 11 Joint Action Sym- edges were mentioned as promising posium on Aerodynamics was previously technologies. arranged co-operatively by Task 20 HAWT • New types of sensors with increased Aerodynamics and Models from Wind Tun- performance are needed. nel Measurements and Task 11. Task 20 is • Blade failure today is less of an issue now finished. Aerodynamic challenges will than gearboxes. be further studied by Task 29 MexNex(T) • Reliability should be increased and Analysis of Wind Tunnel Measurements and incorporated in new system solutions. Improvement of Aerodynamic Models. The participants agreed that it was too

38 2008 Annual Report Task 11

Table 2 List of Recommended Practices Developed by IEA Wind No Area Edition Year First Ed. Valid Status 1 Power Performance 2 1990 1982 no Superceeded by IEC Testing 61400-12, Wind power performance testing 2 Estimation of Cost of 2 1994 1983 yes Energy from WECS 3 Fatigue Loads 2 1990 1984 yes Part of IEC 61400-13 TS, Measurement of mechanical loads 4 Acoustics Measure- 3 1994 no Superceded by IEC 61400- ment of Noise Emis- 11, Acoustic noise mea- sion From Wind Tur- surement techniques bines 5 Electromagnetic Inter- 1 1986 yes ference 6 Structural Safety 1 1988 no See also IEC 61400-1 7 Quality of Power 1 1984 See also IEC 61400-21 Single Grid-Connected WECS 8 Glossary of Terms 2 1993 1987 See also IEC 60030-413 International Electrotechni- cal vocabulary: Wind turbine generator systems 9 Lightning Protection 1 1997 yes See also IEC 61400 PT24, Lightning protection for turbines 10 Measurement of Noise 1 1997 yes Immission from Wind Turbines at Receptor Locations 11 Wind Speed Measure- 1 1999 yes Document will be used by ment and Use of Cup IEC 61400 MT 13, updat- Anemometry ing power performance measurement standard

early for a co-operative research task and application engineering of the cur- on this topic. However, another meet- rent state of the art of drivetrain systems ing to discuss progress should be held for wind turbine applications. The great in one or two years. interest in gearbox and drivetrain dynamics resulted in a large number of participants 3.2 Wind turbine drivetrain in this meeting, with 47 people registered dynamics and reliability for the event. All types of stakeholders were The intention of this meeting was to facili- represented: sub-suppliers, manufacturers, tate an in-depth discussion of both research utilities, and R&D.

IEA Wind 39 Task 11

Many talks focused on the analysis and dedicated to forecast the power production validation of the complete drivetrain. It was of wind farms. There are many different ap- concluded that the analytical capabilities are proaches to the problems that use the fields strong, and the challenge is to apply these of meteorology and mathematics. capabilities appropriately. Validation using End users of the forecasts explained field data was considered as most important. what they need and how they would use Despite these efforts, there are still extensive wind forecasts in their environment. The problems with failures in gearboxes and circumstances and needs of the users can gearbox subcomponents. be very different depending on the country, One cause of these problems may be area of interest, and so on. Another work- incomplete load cases and transients used shop with end users should be considered in the design process. The aeroelastic mod- to better understand the various scenarios els of the turbine are sufficiently accurate; and their priorities regarding the use of however, the elastic properties of the com- wind predictions. The users present at the ponents in the nacelle and geometric non- meeting were interested in extreme events, linearities are not fully understood. specifically on ramp forecasting. To understand load flow and resulting The value of wind forecasts depends forces in nacelles and bedplates, a number on factors including the characteristics of of dynamometers are available for tests. In the system, the way the system is operated, addition to this, new dynamometers are regulations, climatic conditions, and so planned, e.g., by the United Kingdom. The on. Some studies conclude that improve- United States Gearbox Reliability Col- ments in forecasting accuracy do not have laborative (GRC) was mentioned as a step an impact on the management of the forward and a possible source of future co- system. These studies should be extended operation. A task force was set up to prepare to consider extreme events (where the for formulating a new task on this subject. value of forecasting a single event can be An alternative would be to arrange a new enormous) and to other systems with dif- meeting on the subject within one to two ferent operational conditions. There was a years to exchange information. consensus about the need to reduce errors and uncertainties, especially under extreme 3.3 Wind forecasting techniques conditions. The aim of this meeting was to gather a Workshops with wind energy fore- group of experts in the field of forecasting casters, meteorologists, and end users are who were interested in sharing their exper- needed to improve the quality of the fore- tise regarding optimal use of information in casts and to improve decision-making pro- wind power forecasting. Wind energy fore- cesses involving wind energy management casting has evolved rapidly during the past and integration with the electricity system. several years, both technically and from the It was also mentioned that it is difficult to point of view of its implementation. Wind attract end users to these events, especially forecasting models are now used operation- transmission system operators (TSOs) and ally in some countries. The tendency is to large utilities. increase the use of wind power forecasting There was interest in establishing a new to manage grids, trade in the market, per- task on wind power prediction. This new form maintenance, and so on. task should promote a “dynamic bench- Presentations by participants showed marking” of wind power prediction models; results coming from the meteorological organize a meeting with utilities, meteo- community that can be applied to improve rologists and end users of wind power fore- the prediction of wind power, and also casting to share experiences; use meeting improvements in the models specifically attendees to identify areas of interest to the end users.

40 2008 Annual Report Task 11

Table 3 Topical Expert Meetings Held Since 2001* 57 Wind Turbine Drivetrain Dynamics and Reliability Jyväskylä, Finland 2008 56 The Application of Smart Structures for Large Wind Turbine Albuquerque, USA 2008 Rotor Blades 55 Long-Term Research Needs – In the Frame of the IEA Wind Berlin, Germany 2007 Co-operative Agreement 54 Social Acceptance of Wind Energy Projects Luzerne, Switzerland 2007 53 Radar, Radio, and Wind Turbines Oxford, United Kingdom 2007 52 Wind and Wave Measurements at Offshore Locations Berlin, Germany 2007 51 State of the Art of Remote Wind Speed Sensing Techniques Risoe, Denmark 2007 Using Sodar, Lidar and Satellites 50 The Application of Smart Structures for Large Wind Turbine Roskilde, Denmark 2006 Rotor Blades 49 Challenges of Introducing Reliable Small Wind Turbines Stockholm, Sweden 2006 48 Operation and Maintenance of Wind Power Stations Madrid, Spain 2006 47 Methodologies for Estimation of Cost of Wind Energy and Paris, France 2005 the Methodologies to Estimate the Impact of Research on the Cost 46 Obstacle Marking of Wind Turbines Stockholm, Sweden 2005 45 Radar, Radio, Radio Links, and Wind Turbines London, UK 2005 44 System Integration of Wind Turbines Dublin, Ireland 2004 43 Critcal Issues Regarding Offshore Technology and Deploy- Skærbæk, Denmark 2004 ment 42 Acceptability of Wind Turbines in Social Landscapes Stockholm, Sweden 2004 41 Integration of wind and hydropower systems Portland, OR, USA 2003 40 Environmental issues of offshore wind farms Husum, Germany 2002 39 Power performance of small wind turbines not connected to CEDER, Soria, Spain 2002 the grid 38 Material recycling and life cycle analysis (LCA) Risø, Denmark 2002 37 Structural reliability of wind turbines Risø, Denmark 2001 36 Large scale integration into the grid Hexham, UK 2001 35 Long term research needs - for the time frame 2000 – 2020 Petten, The Netherlands 2001 *For meetings prior to 2001, see www.ieawind.org

4.0 Plans for 2009 and Beyond become the new Operating Agent begin- The current Operating Agent (OA), Vatten- ning in January 2009. fall, has resigned from managing this task. Task 11 will continue coordinating Several potential candidates were invited to Topical Expert Meetings and Joint Action apply, and CENER of Spain was selected to Symposia. Four meetings of this type will be held in 2009. Examples of meetings

IEA Wind 41 Task 11

Table 4 Joint Action Symposia Held Since 2001* Aerodynamics of Boulder, USA 2003 wind turbines Athens, Greece 2001 Wind assessment Roskilde, Denmark 2003 Wind forecasting techniques Madrid, Spain 2008 Lyngby, Denmark 2004 Norrköping, Sweden 2002 *For symposia held prior to 2001, see www.ieawind.org include but will not be limited to the Work related to the development of a following: Recommended Practice on the use of sodar for measuring wind speeds will continue. • Wind park performance assessment in All documents produced under Task 11 complex terrain are available to organizations in countries • Wind turbine performance in com- that participate in the task. Organizations plex terrain and cold climate in these countries can receive the newest • Sound propagation models and documents from the Operating Agent. All validation documents more than a year old can be ac- • Follow-up on wind measurements cessed on the public web pages for Task 11 using sodar and lidar at www.ieawind.org. • Micro-meteorology inside wind farms and wakes between wind farms Author: Sven-Erik Thor, Vattenfall, • Radar, radio links, and wind tur- Sweden. bines, follow-up meeting.

42 2008 Annual Report Chapter 3 Task 19 Wind Energy In Cold Climates

1.0 Introduction retard energy production during the win- Wind energy is increasingly being used ter. Such sites are often elevated from the in cold climates, and technology has been surrounding landscape or located in high adapted to meet these challenges. As the northern latitudes (1). turbines that incorporate new technology are being demonstrated, the need grows 2.0 Objectives and Strategy for gathering experiences in a form that The objectives of Task 19 are as follows: can be used by developers, manufactur- • Determine the current state of cold ers, consultants, and financiers. To supply climate solutions for wind turbines, needed information on the operation of especially anti-icing and de-icing solu- wind turbines in cold climates, Annex 19 tions that are available or are entering to the IEA Wind Implementing Agreement the market. was officially approved in 2001. The result- • Review current standards and rec- ing research Task 19 began in May 2001 ommendations from the cold climate and continued for three years. At the end point of view and identify possible of the first three-year period, the partici- needs for updates. Possibly recommend pants decided to extend the collaboration. updates to standards that include com- The main drivers were the need to better ments from planners and operators. understand wind turbine operation in cold • Find and recommend a method to climates and to gain benefit from the results estimate the effects of ice on produc- of the national projects launched during the tion. A better method would reduce first three years. Continuation of Task 19 incorrect estimates and therefore the through 2008 was approved by the ExCo. economic risks currently involved in Table 1 lists the participating countries in cold climate wind energy projects. As 2008. possible, verify the method on the ba- The expression “cold climate” was de- sis of data from national projects. fined to apply to sites where turbines are • Clarify the significance of extra load- exposed to low temperatures outside the ing that ice and cold climate induce on standard operational limit and to sites where wind turbine components and dissemi- turbines face icing. These cold conditions nate the results.

Table 1 IEA Wind Task 19 Participants in 2008 Country Contracting Party; Organizations Canada Natural Resources Canada Finland TEKES; VTT Technical Research Centre of Finland (OA) Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety; ISET Norway Enova SF; Kjeller Vindteknikk Sweden Swedish Energy Agency; WindREN AB Switzerland Swiss Federal Ofﬁ ce of Energy; ENCO USA U.S. Department of Energy; NREL

IEA43 Wind 2008 Annual Report43 Task 19

• Perform a market survey for cold cli- 3.0 Progress in 2008 mate wind technology, including wind Three meetings were organized in 2008: farms, remote grid systems, and stand- the first in April in Anchorage, Alaska alone systems. (United States), hosted by NREL; the sec- • Define recommended limits for ond in September in Espoo, Finland, hosted the use of standard technology (site by VTT; and the third in Norrköping, Swe- classification). den, hosted by WindREN Ab. • Create and update the Task 19 state- The need to continue the work of Task of-the-art report and expert group 19 in one way or another was expressed study on guidelines for applying wind during 2008. The issue of low temperatures energy in cold climates. is mentioned in standards and recommendations; however, icing is rarely taken into The national activities of task partici- account. Many projects are in the planning pants are designed to provide new infor- stage, but there is a lack of commercially mation on issues that are preventing cold available solutions especially for ice detec- climate development today. The results of tion and blade anti-icing and de-icing. The these activities will enable improvements of development of such solutions may not be the overall economy of wind energy proj- a suitable topic for an IEA Wind Task, but ects and lower the risks involved in areas pointing out the needs and recommending where low temperatures and atmospheric tools to compare the solutions are goals of icing are frequent. The reduced risk would Task 19. It was decided to propose a third thereby reduce the cost of wind electricity term to the ExCo at the first meeting of produced in cold climates. 2009. Participants in Task 19 are active in sev- The project web site at http://arctic- eral international projects and co-operative wind.vtt.fi has been updated and serves as efforts. Some take part in the European an extranet among Task 19 participants. Union–funded COST727 action, which aims to improve the Europe-wide ice 4.0 Plans for 2009 and Beyond measurement network and to forecast at- Final results of the task to be achieved by mospheric icing. This information directly the end of the term include these: benefits Task 19’s work. • Publish updated The collaboration will continue to ac- state-of-the-art-report tively disseminate results through the Inter- • Publish updated recommendations net page of Task 19 (http://arcticwind.vtt. report fi) and in conferences and seminars (2–6). • Complete database of wind turbines At the end of the current task period, a in cold climates final report will be published that describes • Complete database of relevant reports updated state-of-the-art technology and is- • Prepare a proposal for the extension sues updated recommendations regarding of Task 19 the use of wind turbines at sites where winter conditions prevail a significant amount The activities will help solve the most of time during the year. common issues causing uncertainty for cold One important dimension of this work climate wind energy development. These will be the initiation of conversation about task activities are intended to match well whether cold climate issues should be rec- with the national activities of participants. ognized in future standards that set the limits for turbine design.

44 2008 Annual Report Task 19

References Lacroix. IEA Co-operation on Wind Turbines (1) T. Laakso, H. Holttinen, G. Ronsten, in Icing and Cold Climates. Proceedings of L.Tallhaug, R.Horbaty, I. Baring-Gould, Boreas VI, Pyhätunturi, Finland, 2003. A. Lacroix, E. Peltola, B. Tammelin. State of (5) T. Laakso, E. Peltola, G. Ronsten, the Art of Wind Energy in Cold Climates. IEA L. Tallhaug, R. Horbaty, I. Baring-Gould, Wind Annex 19, 53 p. http://arcticwind. A. Lacroix. Specific Recommendations for the vtt.fi, 2003 (date of access 31 January 2006). Development of Wind Energy Projects in Cold (2) Jonas Wolff, Per Lundsager, Lars Tall- Climates. Proceedings of EWEC, London, haug, Göran Ronsten, Ian Baring-Gould. United Kingdom, 2004. Cold Climate Wind Energy Co-operation under (6) E. Peltola, T. Laakso, G. Ronsten, L. the IEA. Proceedings of Boreas V, Levi, Fin- Tallhaug, R. Horbaty, I. Baring-Gould, A. land, 2000. Lacroix. Specific Recommendations for the De- (3) H. Holttinen, G. Ronsten, L. Tall- velopment of Wind Energy Projects in Cold Cli- haug, P. Lundsager, R. Horbaty, I. Baring- mates. Proceedings of Boreas VII, Saariselkä, Gould, A. Lacroix, E. Peltola, T. Laakso. The Finland, 2005. State of the Art of Wind Energy in Cold Cli- mates. Proceedings of GWPC, Paris, France, Authors: Esa Peltola, VTT Processes, 2002. Finland, and Timo Laakso, Pöyry Energy, (4) E. Peltola, T. Laakso, G. Ronsten, L. Finland. Tallhaug, R. Horbaty, I. Baring-Gould, A.

IEA Wind 45 Chapter 4 Task 23 Offshore Wind Energy Technology and Deployment

1.0 Introduction energy, IEA Wind Task 11 Base Technology Installing wind turbines offshore has sev- Information Exchange sponsored a Topical eral advantages over onshore development. Expert Meeting (TEM 43) in early 2004 Onshore, difficulties in transporting large in Denmark on Critical Issues Regarding components and opposition due to vari- Offshore Technology and Deployment. The ous siting issues, such as visual and noise meeting gathered 18 participants represent- impacts, can limit the number of acceptable ing Denmark, Finland, the Netherlands, locations for wind parks. Offshore locations Sweden, the United Kingdom, and the can take advantage of the high capacity of United States. Presentations covered both marine shipping and handling equipment, detailed research topics and more general which far exceeds the lifting requirements descriptions of current situations in the for multi-megawatt wind turbines. In ad- countries. After the meeting, the IEA Wind dition, the winds blow faster and more ExCo approved Annex 23 (Task 23) to the smoothly at sea than on land, yielding more Implementing Agreement as a framework electricity generation per square meter for holding additional focused workshops of swept rotor area. On land, larger wind and developing research projects. The work farms tend to be in somewhat remote areas, would increase understanding of issues so electricity must be transmitted over long and develop technologies to advance the power lines to cities. Offshore wind farms development of wind energy systems off- can be closer to coastal cities and require shore. In 2008, 10 countries have chosen to relatively shorter transmission lines, yet they participate in this task, and many research are far enough away to reduce visual and organizations in these countries are sharing noise impacts. their experiences and conducting the work Recognizing the interest and chal- (Table 1). lenges of offshore development of wind

Table 1 IEA Wind Task 23 Participants in 2008 Country Contracting Party Denmark Danish Energy Agency; Risø DTU (OA) Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety Republic of Korea Government of Korea The Netherlands Senter/Novem Norway Norwegian Water Resources and Energy Directorate Portugal INETI Spain CIEMAT Sweden Swedish Energy Agency United Kingdom Department for Business, Enterprise & Regulatory Reform United States U.S. Department of Energy; NREL (OA)

46IEA Wind 2008 Annual Report46 Task 23

2.0 Objectives and Strategy knowledge about impacts of offshore The overall objectives of Task 23 include wind turbine systems on the marine the following: environment. • Organize workshops on critical re- • get a picture of the consequences search areas for offshore wind deploy- for regulatory frameworks, such as re- ment. The goal of the workshops is quirements for environmental impact to identify R&D needs of interest to assessments (EIAs) and protection mea- participating countries, publish pro- sures for nature reserve areas. ceedings, and conduct joint research • generate ideas for frameworks on activities for task participants. how results of nature research can be • Identify joint research tasks among used to (re)formulate regulations and interested countries based on the issues legislation. identified at TEM 43. • Conduct R&D activities of common Discussion and final recommenda- interest to participants to reduce costs tions fell into three categories. First, the and uncertainties. knowledge base for planning and designing offshore wind farms needs strengthening. As This task has been organized as two ecological research progresses and experi- sub-tasks. Sub-task 1, Experience with ence from the planning and operation of Critical Deployment Issues, is led by Risø existing wind farms emerges, documents National Laboratory (Risø) in Denmark, covering the following issues need to be and Sub-task 2, Technical Research for produced and distributed about offshore Deeper Water, is led by the National Re- (wind energy) legislation, guidelines for newable Energy Laboratory (NREL) in the EIAs and strategic environmental assess- United States. ments (SEAs), and best practices. Second, transfer is required between 3.0 Progress in 2008 R&D establishments and the users who in- 3.1 Sub-task 1: Experience with clude wind farm planners and designers, as critical deployment issues well as authorities responsible for approving Statistics show a global wind energy capac- wind farms and specifying EIAs and SEAs. ity in 2008 approaching 1% of the global A lack of knowledge for integrated spatial electricity capacity. Estimates predict a huge marine planning, was identified compared increase in wind energy development over to other offshore activities such as sand the next 20 years. Much of this develop- mining, shipping, military activities, oil and ment will be offshore wind energy. This gas production, and nature conservation. implies that billions will be invested in Third, specific areas of and methods for offshore wind farms over the next decades. co-operation between countries were iden- The aim of Sub-task 1, therefore, has been tified during the workshop. to support this development by arrang- • Regular meetings of multidisciplinary ing workshops in which participants will research and industry groups, repre- inspire each other and test and improve senting disciplines in the fields of ecol- research results. The work in Sub-task 1 has ogy and wind energy technology. It been divided into three research areas. appeared that the Task 23 workshop Research Area 1, Ecological Issues and was one of the rare opportunities for Regulations, held a workshop in Petten, the representatives from both fields to Netherlands, in February 2008, and was at- meet and exchange views. tended by more than 20 experts. The work- • Cumulative effects of an increasing shop objectives were to number of wind farms on the marine • provide a state-of-the-art overview of ecosystem. There is an urgent need to

IEA Wind 47 Task 23

address this issue for spatial planning of offshore grid systems and enabling tech- purposes. nologies. A planning meeting at Risø in • Integral risk analysis as part of the 2006 set up workshops where the five is- planning process and SEA. sues would be addressed. Also, participants • Geographic information system (GIS) agreed to supply information about projects mapping as a basis for representing in the member countries including results, R&D results. to help coordinate activities under this IEA • Integration of the three major issues Wind task. for offshore wind energy planning: A workshop called Grid Integration impacts on ecology, electrical infra- of Offshore Wind conducted in June 2007 structure, and wind farm layout. This in London, included a brief overview of requires integration with other activi- the situation in the UK. In that country, a ties of IEA Task 23. number of early (Round 1) offshore wind • Co-operation on the government farms are already connected to the onshore level. Governments, which usually grid via low-voltage connections (33 kV). finance ecological research, should Larger Round 2 projects will be connected facilitate the exchange of information via offshore transmission systems (132+ by disclosing results as they become kV). Significant work has been undertaken available. by the Department for Trade and Industry • Database formation. and the industry regulator, Ofgem, to de- • How to use ecological and environ- velop an appropriate regulatory framework mental networks within the European for offshore transmission. The UK govern- Union (EU) (such as the Environmen- ment announced the appropriate model tal Impact Information Tool [EIIT], to follow for offshore, tenders will be held which the European Wind Energy for regulated licenses to connect specific Association is designing, and possibly offshore projects, and minimum security the Global Wind Energy Council standards which should apply to offshore [GWEC]) and other countries for the have been consulted on. A final workshop, benefit of making knowledge available Power Fluctuation, is planned to take place to potential users. in Denmark February 2009. • Reviewing of siting decisions by Research Area 3: External Conditions, international experts with the aim of Layouts, and Design of Offshore Wind learning and criticizing possible poor- Farms held a workshop in December 2005 quality decisions. at Risø, Denmark where wake model- • How to deal with shipping safety and ing and benchmarking of models, marine siting of wind farms with respect to boundary layer characteristics, and met- shipping lanes. ocean data and loads were identified for inclusion in the future work program. As a Research Area 2: Grid Connection held result, another workshop on wake model- a workshop in September 2005, at Man- ing and benchmarking of models was held chester University in the United Kingdom. at the Danish test station for large wind There it was decided to focus the work turbines, Høvsøre and Billund, in Jutland, program on five issues: (1) offshore wind Denmark. A great need was identified for meteorology and impact on power fluctua- further collaboration and exchange of data tions and wind forecasting, (2) behavior and to develop and verify computational models modeling of high-voltage cable systems, and to understand the physics of wakes and (3) grid code and security standards for meteorological backgrounds. offshore versus onshore, (4) control and In addition to the work of IEA Wind communication systems of large offshore Task 23, the EU R&D project UpWind wind farms, and (5) technical architecture includes similar activities. To multiply the

48 2008 Annual Report Task 23 benefits from both activities, during 2008, wind energy is to be economical, reserve the benchmarking experience and results margins must be quantified, and uncertain- obtained from collaboration with UpWind ties in the design process must be reduced were analyzed and discussed. so that appropriate margins can be applied. For marine boundary layer character- Uncertainties associated with load predic- istics and met-ocean data and loads, a col- tion are usually the largest source and hence laboration between two IEA Wind tasks (11 the largest risk. Model comparisons are the Base Technology Information Exchange first step in quantifying and reducing load and 23) resulted in a Topical Expert Meet- prediction uncertainties. Comparisons with ing under Task 11 in January 2007. The test data would be the next step. meeting was titled The State of the Art of This project is designed to address near- Remote Wind Speed Sensing Techniques term needs of the industry as well as future Using Sodar, Lidar, and Satellites. These needs. Currently, the industry is focused on are very important techniques to explore bottom-fixed, shallow-water applications, boundary layer characteristics and offshore especially in Europe where shallow-water loads to wind turbines. Additional col- sites are plentiful. Deeper-water sites are laboration took place when an IEA Wind more common in Greece, Republic of Ko- Task 23 meeting was held in February 2007 rea, Japan, Norway, Spain, the United States, in conjunction with a German offshore and many other countries. This project conference and the EU policy seminar on includes support structures that are likely offshore wind. to become solutions for these markets also. A follow-up workshop with focus on The scope of this collaboration includes continued benchmarking was scheduled to technologies ranging from the current shal- take place in Denmark during the second low-bottom monopiles to transition-depth half of 2008. However, it was postponed tripods to deep-water floating platforms. to February 2009 and held in conjunction To test the offshore wind turbine with the workshop on power fluctuation as system-dynamics models, the main activi- a back-to-back workshop, Wake Effects and ties of the OC3 project are (1) discussing Power Fluctuations. modeling strategies, (2) developing a suite A summary of the workshops de- of benchmark models and simulations, (3) scribed in this section will be published in running the simulations and processing the 2009. simulation results, and (4) comparing the results. But these activities fall under the 3.2 Sub-task 2: Technical research following much broader objectives: for deeper water • Assessing the accuracy and reliability Sub-task 2 is intended to focus on technical of results obtained by simulations to issues associated with deeper-water imple- establish confidence in the predictive mentation of offshore wind energy. In prac- capabilities of the models tice, however, the project has focused on • Training new analysts to run and ap- the activities of the working group known ply the models correctly as the Offshore Code Comparison Collab- • Identifying and verifying the capabili- orative (OC3), which includes the analysis ties and limitations of implemented of shallow, transitional, and deep-water off- theories shore wind turbine concepts. • Investigating and refining applied The OC3 project is benchmarking analysis methodologies system-dynamics models (i.e., design codes) • Identifying further R&D needs. used to estimate offshore wind turbine dynamic loads. Currently, conservative In the past, such verification work has offshore design practices adopted from ma- led to dramatic improvements in model ac- rine industries are enabling offshore wind curacy as the code-to-code comparisons development to proceed. But if offshore and lessons learned have helped identify

IEA Wind 49 Task 23 deficiencies in existing models and needed verification of the offshore support struc- improvements. These results are important ture dynamics as part of the dynamics of because the advancement of the offshore the complete system. This emphasis is a wind industry is closely tied to the devel- feature that distinguishes the OC3 proj- opment and accuracy of system-dynamics ects from past wind turbine code-to-code models. verification exercises. Nevertheless, it was The simulation of offshore wind tur- important to test the aerodynamic mod- bines under combined stochastic aerody- els separately so that modeling differences namic and hydrodynamic loading is very resulting from the aerodynamics could be complex. The benchmarking task, therefore, identified. This identification is important requires a sophisticated approach that facili- because the aerodynamic models are rou- tates the identification of sources of model- tinely a source of differences in wind turing discrepancies introduced by differing bine code-to-code comparisons. theories and/or model implementations in To encompass the variety of support the various codes. This is possible only by structures required for cost-effectiveness at meticulously controlling all of the inputs to varying offshore sites, different types of sup- the codes and carefully applying a stepwise port structures (for the same wind turbine) verification procedure in which model are investigated in separate phases of the complexity is increased in each step. OC3 project: The fundamental set of inputs to the • In Phase I, the NREL offshore codes controlled in OC3 relates to the 5-MW wind turbine is installed on a specifications of the wind turbine. The monopile with a rigid foundation in 20 OC3 project uses the publicly available m of water. specifications of the 5-MW baseline wind • In Phase II, the foundation of the turbine developed by NREL (1), which monopile from Phase I is made flexible is a representative utility-scale multimega- by applying different models to repre- watt turbine that has also been adopted sent the soil-pile interactions. as the reference model for the integrated • In Phase III, the water depth is EU UpWind research program. This wind changed to 45 m and the monopile is turbine is a conventional three-bladed up- swapped with a tripod substructure, wind variable-speed blade-pitch-to-feather- which is one of the common space controlled turbine. The hydrodynamic and frame concepts proposed for offshore elastic properties of the varying offshore installations in water of intermediate support structures used in the project are depth. also controlled. Furthermore, the turbulent • In Phase IV, the wind turbine is in- full-field wind inflow and regular and ir- stalled on a floating spar-buoy in deep regular wave kinematics are model inputs water (320 m). controlled in the OC3 project. This approach reduces possible differences brought The OC3 project is performed through about by dissimilar turbulence models, wave technical exchange among a group of in- theories, or stochastic realizations. ternational participants who come from The key component of the stepwise universities, research institutions, and indus- procedure is the enabling and disabling of try. Although several participants have come features of the model among different load- and gone, the main participants in 2008 case simulations. Simulations are defined were Acciona Energia (Spain), CENER with and without aerodynamics and hy- (Spain), Fraunhofer Institute IWES (Ger- drodynamics, with and without the control many), Garrad Hassan (United Kingdom), system enabled, and with individual subsys- Institute for Energy Technology IFE (Nor- tems both flexible and rigid. way), Marintek (Norway), NREL (United The OC3 project emphasizes States), NTNU (Norway), Ramboll

50 2008 Annual Report Task 23

(Denmark), Risø-DTU (Denmark), Sie- reference 5-MW wind turbine, including mens Wind Power (Denmark), Statoil- the control system, has been developed; the Hydro (Norway), University of Stuttgart wind and wave data sets have been gener- (Germany), and University of Hannover ated; the simulations and code-to-code (Germany). comparisons of Phases I, II, and III have Most of the codes that have been devel- been completed; and Phase IV has been ini- oped for modeling the dynamic response of tiated. Three conference papers have been offshore wind turbines are tested in OC3. published and presented—one for summa- Although more codes have been tested to rizing the results of each of the completed some extent over the course of the proj- phases—see references (2), (3), and (4) for ect, the main codes currently being tested Phases I, II, and III, respectively. Figure 1 are ADAMS, ADCoS, ANSYS, BHawC, illustrates the model used in Phase III (4). FAST, FLEX5, GH Bladed, HAWC2, NAS- A paper summarizing the results of Phase TRAN, Poseidon, WAMIT, WaveLoads, and IV is tentatively planned to be published SESAM. and presented at a conference in 2009. A The OC3 project started in October final report will be compiled from all the 2004 and is scheduled to be completed in conference papers, with new results added the fall of 2009. Over this time, Internet (from new participants, etc.) that have been meetings have been held approximately ev- contributed after the papers were first pub- ery two months, which continue to be pro- lished. This report will be written after the ductive and significantly reduce the need Phase IV paper has been completed, and for physical meetings and travel. In addition, its publication is tentatively planned for fall nine physical meetings have been held at 2009. key points in the project: United States, The natural next step for the OC3 October 2004; Denmark, January 2005; project is to compare the analytical mod- Norway, June 2005’ Denmark, October els to real test data—a significant increase 2005; United States, June 2006; Germany, in complexity. Usually it is difficult for a January, September, and December 2007; public project to gain access to the needed and Denmark, September 2008. data. Obtaining the model properties is dif- Since the start of the project, the ficult, and they are usually proprietary. The

Figure 1 NREL 5-MW wind turbine with tripod support structure used in OC3 Phase III.

IEA Wind 51 Task 23 data sets are rarely complete enough for a org/EJ/article/1742-6596/75/1/012071/ good comparison with analytical models. jpconf7_75_012071.pdf?request-id= 8kI- Wind inflow data are usually from a single 1Ig5u3BGgUobT2wi7Kg. NREL/CP- anemometer. Wave data are usually from a 500-41930. Golden, CO: National Renew- single point source. Currents might not be able Energy Laboratory. available. So comparisons are usually made (3) Jonkman, J., Butterfield, S., Passon, on a statistical basis. However, even com- P., Larsen, T., Camp, T., Nichols, J., Azcona, parisons relying on statistical data are better J., and Martinez, A. “Offshore Code Com- than no comparisons at all. The value of parison Collaboration within IEA Wind such comparisons is that they give analysts Annex XXIII: Phase II Results Regarding and designers a measure of confidence that Monopile Foundation Modeling.” 2007 the loads they are predicting are representa- European Offshore Wind Conference & tive of the conditions the turbines are actu- Exhibition, 4–6 December 2007, Berlin, ally operating in. Therefore, even though Germany [online proceedings], BT2.1. such a project is bound to be imperfect, it www.eow2007proceedings.info/all- is essential. files2/206_Eow2007fullpaper.pdf. NREL/ CP-500-42471. Golden, CO: National Re- 4.0 Plans for 2009 and Beyond newable Energy Laboratory. In 2009, the 10 participating countries will (4) Nichols, J., Camp, T., Jonkman, continue work in both sub-tasks to com- J., Butterfield, S., Larsen, T., Hansen, A., plete final reports which will be posted to Azcona, J., Martinez, A., Munduate, X., Vor- the Task Web site at www.ieawind.org. The pahl, F., Kleinhansl, S., Kohlmeier, M., Kos- task will end in December 2009 with ap- sel, T., Böker, C., and Kaufer, D. “Offshore proval of these reports. Code Comparison Collaboration within IEA Wind Annex XXIII: Phase III Re- References sults Regarding Tripod Support Structure (1) Jonkman, J., Butterfield, S., Musial, Modeling.” 47th AIAA Aerospace Sciences W., and Scott, G. Definition of a 5-MW Meeting and Exhibit, 5–8 January 2008, Reference Wind Turbine for Offshore Sys- Orlando, Florida, AIAA Meeting Papers on tem Development. NREL/TP-500-38060, Disc 14(1). CD-ROM. AIAA-2009-1038, Golden, CO: National Renewable Energy Reston, VA: American Institute of Aeronau- Laboratory, February 2009. tics and Astronautics, January 2009. NREL/ (2) Passon, P., Kühn, M., Butterfield, CP-500-44810. Golden, CO: National Re- S., Jonkman, J., Camp, T., and Larsen, T. J. newable Energy Laboratory. “OC3—Benchmark Exercise of Aero- Elastic Offshore Wind Turbine Codes,” Authors: Jørgen Lemming, Risø Na- Journal of Physics: Conference Series, tional Laboratory, Denmark; and Walt Mu- The Second Conference on the Science sial, Sandy Butterfield, and Jason Jonkman, of Making Torque From Wind, 28–31 Au- National Renewable Energy Laboratory, gust 2007, Copenhagen, Denmark [online United States. journal], 012071, vol. 75, 2007. www.iop.

52 2008 Annual Report Chapter 5 Task 24 Integration of Wind and Hydropower Systems

1.0 Introduction completed in 2008 and will publish its final About 450 GW of hydropower capacity is report in 2009. It has allowed participating operating in the IEA Wind Member Coun- organizations to multiply the experience tries along with approximately 92 GW of and knowledge gained from their indi- wind power capacity. Because of the natural vidual efforts. This is particularly important variability of wind power production and since there are many different hydro system the inherent uncertainty in its prediction, configurations in many different electricity integrating wind power into utility opera- markets. In addition, the IEA Wind Task 24 tions typically increases the amount of gen- worked in co-operation with the IEA Hy- eration reserves required as well as the need dropower Implementing Agreement, which for flexible, rapidly responding generation is investigating integration of hydropower resources. Since hydropower is a genera- and wind through a complementary set tion resource that is generally quite flexible of investigations. Task 24 is also working and able to provide reserves, many utilities with IEA Wind Task 25 on the Design and are making use of these characteristics to Operation of Power Systems with Large help meet the balancing needs due to wind Amounts of Wind Power. power. This approach raises many questions concerning economics, overall benefit to 2.0 Objectives and Strategy the electrical system, impacts on hydropow- Task 24 has two primary purposes: (1) to er operations, and more. To address some of conduct co-operative research concerning these questions, seven IEA Wind countries the generation, transmission, and economics participated in Task 24 in 2008 (Table 1). of integrating wind and hydropower sys- The proposal for Task 24 Integration of tems, and (2) to provide a forum for infor- Wind and Hydropower Systems arose from mation exchange. an IEA Wind Topical Expert Meeting in The specific objectives of the task are 2003. It was approved by the ExCo in May as follows: 2004. This co-operative research effort was • To establish an international forum

Table 1 IEA Wind Task 24 Participants in 2008 Country Contracting Party; Organizations Australia Clean Energy Council; Hydro Tasmania Canada Natural Resources Canada; Manitoba Hydro, Hydro Quebec Finland TEKES; VTT Norway Norwegian Water Resources and Energy Di- rectorate; Sintef Energy Research, Statkraft Energy Sweden Swedish Energy Agency; KTH Swedish Institute of Technology Switzerland Swiss Federal Ofﬁ ce of Energy; EW Ursern United States U.S. Department of Energy; NREL, (OA) Arizona Power Authority, Bonneville Power Administration,

53IEA Wind 2008 Annual Report53 Task 24

for exchange of knowledge, ideas, and studies may only address and share informa- experiences related to the integration tion related to one or two. Each case study of wind and hydropower technologies will address problem formulation and as- within electricity supply systems sumptions, analysis techniques, and results. • To share information among participating members concerning grid 2.1 Grid integration case studies integration, transmission issues, hy- The wide variety of hydropower installa- drological and hydropower impacts, tions, reservoirs, operating constraints, and markets and economics, and simplified hydrologic conditions combined with the modeling techniques diverse characteristics of the numerous • To identify technically and economi- electrical grids (balancing areas) provide cally feasible system configurations for many possible combinations of wind, hy- integrating wind and hydropower, in- dropower, balancing areas, and markets, cluding the effects of market structure and thus many possible solutions to issues on wind-hydro system economics with that arise. Hydro generators typically have the intention of identifying the most very quick start-up and response times and effective market structures. may have flexibility in water-release timing. Therefore, hydro generators could be ideal The expected outcomes of the work for balancing wind energy fluctuations or conducted under Task 24 include the for energy storage and redelivery. Studying following: grid integration of wind energy, particularly • The identification of practical wind- on grids with hydropower resources, will hydro system configurations help system operators understand the po- • A consistent method of studying tential for integrating wind and hydropower the technical and economic feasibility resources. Each of the seven countries par- of integrating wind and hydropower ticipating in the task is planning to contrib- systems ute at least one case study covering a wide • The technical and economic feasibili- variety of system configurations and sizes ty of integrating wind and hydropower ranging from <1,000 MW peak load such systems in specific case studies as Grant County Public Utility in Washing- • The ancillary services required by ton State, United States to >35,000 MW wind energy and the electric system peak load such as Hydro Quebec, Canada. reliability impacts of incorporating There is also a wide variety of hydropower various levels of wind energy into util- facilities, ranging from essentially run-of- ity grids that include hydro generation the-river with little storage capacity (a day • An understanding of the costs and or two) to very large hydro plants associated benefits, and the barriers and oppor- with reservoirs that have multiyear storage tunities, related to integration of wind capability. This diversity should allow for and hydropower systems a comprehensive look at grid integration • A database of reports describing case scenarios. studies and wind-hydro system analyses conducted through co-operative re- 2.2 Hydropower system search of the task. impact case studies Depending on the relative capacities of the Four types of case studies will be con- wind and hydropower facilities, integra- ducted by the participants: grid integration, tion may necessitate changes in the way hydrologic impact, market and economics, hydropower facilities operate to provide and simplified modeling of wind-hydro in- balancing or energy storage. These changes tegration potential. While many case studies may affect operation, maintenance, revenue, may involve all four of these topics, some water storage, and the capability of the

54 2008 Annual Report Task 24 hydro facility to meet its primary purposes. on wind-hydro system economics with the Beyond these potential changes, integra- intention of identifying the most effective tion with wind may provide benefits to the market structures. Economic studies that hydro system related to water storage or consider the value of wind energy gen- compliance with environmental regulations eration and hydropower to the electricity (e.g., fish passage) and create new economic customer are of greatest interest. Because opportunities. Without a proper under- economic feasibility is germane to integrat- standing of the impacts and benefits, it is ing wind and hydropower, each participat- unlikely that many hydro facility operators ing country will contribute to these studies. will be interested in using their resources to Initial results of the case studies are consis- enable integration of wind power into their tent with other wind integration studies in respective balancing areas. Thus, study of that the efficiency and liquidity of the elec- the impacts of wind integration on hydro- tricity market has a large influence on the power operations to determine the benefits economics, frequently dominating all other and costs could help pave the way for im- factors. Further, an important factor in in- plementation of wind-hydro projects. Four terpreting the economic consequences of of the seven participating countries expect integrating wind with hydro is the perspec- to contribute to these studies (Australia, tive taken by the study—whether it is for Canada, Norway, and the United States). the overall benefit of the electric customer Examples of hydropower system impacts or of a single actor in the market (e.g. a include the effects on meeting fish flow utility or wind developer). requirements, reservoir levels for recreation, irrigation deliveries of water, or other pri- 2.4 Simplified modeling of wind-hydro orities in running a hydro facility that may integration potential case studies supersede power production. It is worth Approximate methods for estimating the noting that some of the hydropower facili- amount of wind power that can be physi- ties being considered have these constraints cally or economically integrated into a bal- while others do not. ancing area with existing hydropower generation—based on the characteristics of the 2.3 Market and economic case studies balancing area loads, hydropower facilities, While grid integration and hydrologic and the wind power resource—are of keen impact studies may demonstrate the tech- interest. Such methods will be considered nical feasibility of integrating wind and as the case studies of the participants come hydropower systems, implementation will to a close, and a search for basic indicators often depend on the economic feasibility for such methods will be conducted. The of a given project. Such economic feasibil- analysis methods should include only the ity will depend on the type of electricity most influential operational constraints for market in which the wind and hydro proj- hydro and electric reliability concerns. The ects are considered. Addressing economic goal is to develop a technique to approxi- feasibility in the electricity market will mate the potential for integrating wind and provide insight into which market types hydropower without the need to conduct are practical for wind-hydro integration, as an in-depth study. However, any simplified well as identify the key factors driving the method must still take a system-wide per- economics. This understanding may provide spective, with the understanding that wind opportunities to devise new methods of and hydropower interact within a larger scheduling and pricing that are advanta- grid that includes other generation resourc- geous to wind-hydro integration and per- es. Because of this, it may be more fruitful mit better use of system resources. These for some investigators to consider simplified market and economic case studies will ad- methods that study how much wind can dress the effects of today’s market structures be integrated into a large interconnected

IEA Wind 55 Task 24 grid that includes significant hydropower studies and finding how best to collaborate. resources but not to consider specific hy- Differences in terminology and techniques dropower resources. Three of the participat- inherent in an international collaboration ing countries expect to contribute to the made it necessary to create a consistent simplified modeling (Australia, Norway, and framework for formulating problems and the United States). presenting results (a matrix). Participants al- As the breadth of these case studies in- so decided to with a similar task of the IEA dicates, integrating wind and hydropower Hydropower Implementing Agreement. can be quite complex. Figure 1 provides Thus a joint task or annex was approved by a conceptual view of the relationships of the IEA Wind and Hydropower ExCos in wind, hydropower, and the transmission 2006. balancing area along with “surrounding” In 2006, an R&D meeting was held issues for a case study in the Southwestern online using a web meeting tool (Webex) United States. through the U.S. Department of Energy. Meeting participants called into a central 3.0 Progress and Plans voice conference, while viewing and ma- By the end of 2008, six meetings of Task nipulating a common presentation accessed 24 participants had been held. The general and displayed over the Internet. The matrix work plan for participating countries was and details of the upcoming R&D meeting developed at the kickoff meeting in 2005 at were discussed. Hoover Dam, Nevada, United States. The At the next R&D meeting in Laun- work of the task over these first two years ceston, Tasmania, it became clear that to was focused on initiating participant case achieve the expected results defined in the

Figure 1 Conceptual view of the relationships of wind power, hydropower, and the transmission control area, and the issues surrounding their integration.

56 2008 Annual Report Task 24 task work plan, distilling information from water, wind integration requires no backup the case studies and describing the results in and/or storage. Wind generation is a system the final report will be necessary. Additional integration issue, and no local dedicated outcomes from the work plan were added storage is needed. However, storage may as a result of collaborating with participants make sense when considered in the context from the IEA Hydropower Implementing of the efficiency of the entire system. Agreement. Other important issues include how to During 2007, two R&D meetings were properly define the wind penetration level, held in collaboration with the participants creating a “flexibility index,” and the re- of Task 25 on the Design and Operation quired success factors for wind integration of Power Systems with Large Amounts of studies. Participants agreed that wind inte- Wind Power. Joint meetings with Task 25 gration studies should take a cost-benefit were initiated because the tasks had some perspective of wind in the grid rather than similar goals. The first was held in Milan, a perspective of limited integration cost due Italy in conjunction with the European to the variability and uncertainty of wind Wind Energy Conference 2007. Twenty energy. people from 11 countries attended the A final version of the matrix was ad- meeting. Participants discussed methods for opted at the end of 2006, and each of the determining the impacts of wind energy in task participants has completed a matrix to power systems, what these impacts are, and describe its case study projects. This allows how they are modeled and predicted. comparison and reporting of the results The second joint R&D meeting, held from the various case studies. in Oslo, Norway, was attended by 21 people In June 2008, the final R&D meeting from 12 countries. Task 24 participants was held in Quebec City, Canada and was presented updates on their case studies and attended by 13 people from five countries. addressed the primary hydropower impacts Task participants presented their case stud- of integration of wind power. In all coun- ies and discussed the similarities and dif- tries except the United States, the only ferences among the various systems and impact on their hydropower utilities from studies. The outline for the final report was wind power is in the optimal economic use approved, and the participants will com- of the hydro resource in the system. The plete the case studies and produce the final United States is the only member country report in 2009. with specific flow constraints due to non- power requirements. The general consensus Author: Thomas L. Acker, NREL, United was that when considering energy storage, States. including that in hydro impoundment of

IEA Wind 57 Chapter 6 Task 25 Power Systems with Large Amounts of Wind Power

1.0 Introduction the participants in the task. During the first Wind power will introduce more uncer- term, 11 countries plus the European Wind tainty into operating a power system; it is Energy Association (EWEA) participated in variable and partly unpredictable. To meet the Task; for the second term, Canada and this challenge, more flexibility will be need- Japan also have joined. ed in the power system. How much extra The existing targets for wind power flexibility is needed depends on how much capacity anticipate a quite high penetration wind power there is and on how much in many countries. It is technically possible flexibility exists in the power system. To ex- to integrate very large amounts of wind plore issues of wind power’s effects on the capacity in power systems; the limits arise overall power system, Annex 25 to the IEA from how much can be integrated at social- Wind Implementing Agreement was ap- ly and economically acceptable costs. So far, proved in 2005 for three years (2006–2008) the integration of wind power into regional and was granted a second term (2009– power systems has mainly been studied on a 2011) in September 2008. Table 1 shows theoretical basis, as wind power penetration

Table 1 IEA Wind Task 25 Participants, Second Term (2009–2011) Country Contracting Party; Organizations Coordinating Work; [TSO participants in brackets]* Canada National Resource Canada; [Hydro Quebec] Denmark Danish Energy Agency; Risø-DTU; [Energinet.dk] EWEA European Wind Energy Association Finland TEKES; VTT Technical Research Centre of Finland (OA) Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety; ISET; [RWE and E.ON Netz] Ireland Sustainable Energy Ireland; ECAR; [Eirgrid] Japan AIST Netherlands SenterNovem; ECN Norway Enova SF; SINTEF Energy Research; [Statnett] Portugal INETI; [Rede Electrica Nacional (REN)] Spain CIEMAT; Universidad de Castilla–La Mancha Sweden Swedish Energy Agency; Kungliga Tekniska Högskolan (KTH) UK Department for Business, Enterprise & Regulatory Reform; Centre for Dis- tributed Generation and Sustainable Electrical Energy; [National Grid] United States U.S. Department of Energy; NREL; Utility Wind Integration Group (UWIG) *In some countries, such as Finland and Sweden, the TSO follows the national advisory group. CIGRE JWG C1,3,6/18 and European TSO consortium EWIS have sent observers to meetings.

58IEA Wind 2008 Annual Report58 Task 25

Figure 1 Impacts of wind power on power systems, divided into different timescales and sizes of area relevant for the studies. Primary reserve is denoted for reserves activated in seconds (frequency activated reserve; regulation) and secondary reserve for reserves activated in 5–15 minutes (minute reserve; load following reserve). is still rather limited in most countries and 2.0 Objectives and Strategy power systems. However, some regions— The ultimate objective of IEA Wind Task e.g., western Denmark, northern Germany, 25 is to provide information to facilitate the and the Iberian Peninsula (Spain and Portu- highest economically feasible wind energy gal)— have significant practical experience penetration in electricity power systems with wind integration and already show a worldwide. Task 25 work supports this ob- high penetration of above 10% of electricity jective by analyzing and further developing consumption coming from wind power. the methodology to assess the impact of In recent years, several reports have wind power on power systems. Task 25 has been published investigating the power established an international forum for ex- system impacts of wind power. However, change of knowledge and experiences re- results on the costs of integration differ sub- lated to power system operation with large stantially, and comparisons are difficult to amounts of wind power. The challenge is make. This is due to using different method- to create coherence between parallel activi- ology, data, and tools during the investiga- ties with transmission system operators and tions and different terminology and metrics other R&D task work and to remain as the in representing the results. An in-depth re- internationally accepted forum for wind view of the studies has been started in Task integration. 25 to draw any conclusions on the range of The participants will collect and share integration costs for wind power. Because information on the experience gained in system impact studies are often the first current and past studies. Their case studies steps taken toward defining wind penetra- will address different aspects of power sys- tion targets in each country, it is important tem operation and design: reserve require- that commonly accepted standard method- ments, balancing and generation efficiency, ologies are applied in system impact studies. capacity credit of wind power, efficient

IEA Wind 59 Task 25 use of existing transmission capacity and Publication of the work is a key goal requirements for new network investments, of Task 25 co-operative research. In 2007, bottlenecks, cross-border trade, and system national case studies presented in a ses- stability issues. The main emphasis is on sion organized for the European Wind technical operation. Costs will be assessed Energy Conference (EWEC) in Brussels when necessary as a basis for comparison. in April 2008. Task 25 work and results Also, technology that supports enhanced were presented at several other key meet- penetration will be addressed: wind farm ings in 2008: the CIGRE C6-08 meeting controls and operating procedures, dynamic in Berlin, Germany; the Irish Wind Energy line ratings, storage, demand side manage- Association meeting; a wind integration ment (DSM), and so on. workshop in Madrid, Spain; the Windpower The task work began with a state-of- 2008 conference in Houston, Texas, United the-art report collecting the knowledge States; and the IEEE Power Engineering and results to date. This report was updated Society meeting in Pittsburgh, Pennsylvania, as a final report of 2006–2008 work dur- United States. ing spring 2009. The task will end with Work has begun on a simplified assess- developed guidelines on the recommended ment of wind integration effort and power methodologies when estimating the system system flexibility. The assessment draws on impacts and the costs of wind power inte- the work done by the Operating Agent gration. Best-practices recommendations for an IEA Secretariat study for the G8 on will be formulated on system operation integrating renewable energy sources. In practices and planning methodologies for addition, a paper collecting results on statis- high wind penetration. tical methods assessing short-term reserve requirements of wind power from Finland, 3.0 Progress in 2008 Sweden, and the United States was pub- 3.1 Research progress lished in Wind Engineering. The meetings organized by Task 25 have The Task 25 web site has been estab- established an international forum for ex- lished at http://www.ieawind.org under change of knowledge and experiences. The Task Web Sites. The public portion of spring task meeting in 2008 was organized the site contains the Task 25 publications in Denmark and hosted by the TSO En- and a bibliography completed in 2008 in erginet.dk. In the autumn meeting, hosted conjunction with Task 24 that lists publi- by ECAR and SEI in Dublin, participating cations related to system integration. The countries presented the national results in members-only section details the meeting a one-day seminar followed by discussions presentations and information relevant to about the final report. task participants. Coordination with other relevant activities is an important part of the Task 25 ef- 3.2 Results of the final report fort. The meetings in 2007 were organized 2006–2008 in conjunction with Task 24, Integration The results of the final report of the first of Wind and Hydropower Systems. The phase of 2006–2008 can be used by partici- system operators of Denmark, Germany, pating countries to show the error of claims Ireland, Portugal, and the UK have joined that wind power requires large amounts the meetings organized thus far. Links be- of reserve power and that integration costs tween TSO organization working groups erode the benefits of wind power. The at CIGRE and ETSO European Wind In- report finds that a substantial tolerance to tegration Study (EWIS project) have been variations is already built in to our power formed, and observers have joined Task 25 network. This is why the influence of wind meetings in 2008 and 2009.

60 2008 Annual Report Task 25 power fluctuations can be further balanced distance between consumption centers and through a variety of relatively easy and wind power plants and the strength of the inexpensive measures for reasonably large existing grid. penetrations (10% to 20%). The impact of a (3) Capacity value of wind power, i.e. large share of wind power can be controlled the ability of wind power to replace other by appropriate grid connection require- power plant capacity. Even though wind ments, extension and enforcement of trans- power is mainly an energy resource that mission networks, and integration of wind replaces fossil power generation, it can also power production and production forecasts be used for replacing existing power plant into system and market operation. capacity. In areas where the overall wind The report emphasizes the benefits of penetration level is low, wind power can operating the power systems in a coordi- replace other capacity by its average power, nated manner and/or with larger balancing typically 20% to 40% of the installed wind areas. The aggregation benefits of a power power capacity. However, when penetra- system that covers a large area help to re- tion levels are high (e.g., 30%) and in areas duce wind power fluctuations and improve where wind power production during peak predictability. A large power system also has demand is always low, wind power can only more generation reserves available, and the replace other capacity by 5% to 10% of the increased regulation effort can be imple- wind power capacity. mented cost-effectively. The transmission Figures 2 through 4 summarize the re- capacity between areas is crucial for the use sults from case studies reviewed in the final of the benefits arising from large produc- report for 2006–2008. They also illustrate tion areas. An electricity market in which the difficulties in comparing the results production forecasts can be updated a few from existing studies. The range evident hours ahead also helps in limiting forecast in the results is great due to the different errors and thereby the costs of balance power systems in question and different power. methodologies applied in the studies. Com- The main results of the state-of-the-art parison of the studies showed that assump- report can be divided into three categories: tions concerning the use of international (1) Additional costs arising from the transmission connections and the timescale balancing of wind power fluctuations. With of updating wind power forecasts had major wind power penetrations amounting to impacts on the results. 10% to 20% of the gross electricity demand, the additional cost (per megawatt hour of 4.0 Plans for 2009 and Beyond wind power) arising from the balancing The final report for 2006–2008 will be of wind power fluctuations is estimated to published in 2009. Journal articles will be range between 1 and 4 €/MWh. This is less written about some of the issues in the fi- than 10% of the long-term market value of nal report. A meeting is scheduled for early electricity. in the year hosted by Imperial College (2) Grid reinforcement needs due to (DG&SEE) and National Grid. Another wind power. Current wind power tech- meeting is planned for mid-October in nology makes it possible for wind power Germany in conjunction with the 8th In- plants to support the grid in the event ternational Workshop on Large-Scale Inte- of faults such as significant voltage drops gration of Wind Power into Power Systems and to participate in voltage regulation. as well as on Transmission Networks for Wind power plants are also able to limit Offshore Wind Farms, where Task 25 will their production fluctuations. Grid rein- organize a session. Task 25 work and results forcement needs related to wind power will be presented at several other meetings vary among countries depending on the

IEA Wind 61 Task 25

Figure 2 Results from estimates for the increase in balancing and operating costs due to wind power. The currency conversion used here is 1 € = 0.7 £ and 1 € = 1.3 USD.

Figure 3 Results from studies on grid reinforcement costs due to wind power (for Den- mark, the results are to reach from 20% to 50% penetration).

62 2008 Annual Report Task 25

Figure 4 Results from studies on the capacity value (capacity credit) of wind power. in 2009, including EWEC 2009 and the systems with wind power. Work on creating 14th Kasseler Symposium Energie-System- simple rules of thumb stating the probable technik, Germany. impacts and cost ranges for different power The topic being addressed by Task 25 systems with different levels of wind pen- is growing exponentially in importance in etration will be continued in collaboration the member countries and more broadly. with the IEA Secretariat’s IREG2 project. There is consensus that the work of the The library on the Task 25 web site will be task has only just begun. During the second complemented and updated. term, participants will expand into studies of higher-penetration that will address the Author: Hannele Holttinen, Operating important topic of cost/benefit analysis of Agent Representative, VTT Technical Re- wind power integration and will go more search Centre of Finland, Finland. deeply into the subject of modeling power

IEA Wind 63 Chapter 7 Task 26 Cost of Wind Energy

1.0 Introduction community are able to discuss the specific Wind power generation has come to a costs of wind systems on the basis of a “historical” point at which, just as installed sound methodology. Without a clear im- costs were becoming competitive with partial voice regarding costs, organizations other conventional technologies, the in- without a good understanding of wind vestment cost per megawatt for new wind systems are left to determine and publicize power projects has started increasing. This is their costs, often in error. These issues are believed to be the result of increasing com- exacerbated by the diversity of the wind modity prices (mainly raw material such portfolio and variations in international as copper and steel, plus a bottleneck in project development costs assumptions. certain sub products) and the current tight- The work undertaken in this cost task is ness in the international market for wind also expected to provide a methodology for turbines. Signals in the U.S. market indicate projecting future wind technology costs. a 50% increase in the investment cost of Finally, this task aims to form the basis for wind systems, up to approximately 1,800 a more comprehensive analysis of the value USD/kW. Other important markets for of wind energy. Table 1 lists participants in wind energy are also experiencing a rising the task for 2008. costs, although noticeable differences still exist among countries. 2.0 Objectives and Strategy This is precisely the background that The objectives of this task are justifies the initiation of a new task. Because • To establish an international forum wind is becoming an important source for exchange of knowledge and in- of electricity generation in many markets formation related to the cost of wind and is competing with other technolo- energy. gies—notably natural gas and nuclear—in • To identify the major drivers of terms of new installed capacity, it is crucial wind energy costs—e.g., capital in- that governments and the wind research vestment, installation, operation and

Table 1 IEA Wind Task 26 Participants in 2008 Country Contracting Party; Organizations Denmark Danish Energy Agency; Risø National Laboratory /DTU, EA Energy Analyses EWEA European Wind Energy Association Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety; WindGuard Netherlands SenterNovem; ECN Spain CIEMAT; AEE Sweden Swedish Energy Agency; Vattenfall Switzerland Swiss Federal Ofﬁ ce of Energy United States U.S. Department of Energy; NREL (OA)

IEA64 Wind 2008 Annual Report64 Task 26

maintenance, replacement, insurance, performance for proposed or installed proj- finance, and development costs—and ects, for both land-based and offshore wind to quantify the differences of these technology. Manufacturers, developers, and cost elements among participating other wind industry participants should countries. be engaged to obtain these representative • To develop an internationally ac- costs. Methods such as surveys or interviews cepted, transparent method for calcu- could be used. Based on this common set lating the cost of wind energy that can of data from each participating country, as- be used by the International Energy sumptions for a generic estimate of wind Agency (IEA) and other organizations. energy costs will be determined. Each par- • To derive wind energy cost and ticipant will provide documentation of their performance projections, or learning representative cost data and will quantify curves, that allow governments and the the differences between their country’s cost research community to anticipate the structure and that of the generic model. A future trends of wind generation costs. report will summarize these results, provid- • To compare the cost of wind energy ing insight into the different cost drivers for with those of other electricity genera- each participating country. tion technologies, making sure that the Estimates of future cost and perfor- underlying assumptions used are com- mance for wind technology are important patible and transparent. for analyses of the potential for wind en- • To survey various approaches to esti- ergy to meet national targets for carbon mating the value of wind energy, e.g., emission reductions or renewable electric- carbon emission avoidance, fuel price ity generation. Learning curves are one stability. method for assessing the effects of technology development, manufacturing efficiency Three activities are proposed to achieve improvements, and economies of scale. these objectives: 1) development of a trans- National laboratory component–level cost parent method for estimating cost of wind and scaling relationships can also be used energy and identification of major cost to estimate future technology development drivers; 2) estimation of future cost and per- pathways. Although costs have decreased formance of land-based and offshore wind since the early 1980s, recent trends indicate projects; and 3) assessment of methodolo- rising costs that have been attributed to gies and results for estimating the value of tight supply, commodity price increases, and wind energy. other influences. These effects may continue Providing transparency in the cost in the future, and it is important to identify elements of wind projects among all par- the contribution of such market influences ticipating countries will result in better to wind technology costs. These effects, understanding of the cost drivers of wind and their relation to technology advances, technology and the reasons for differences should be incorporated into methods to among participating countries. Develop- project future costs and performance for ment of a simple spreadsheet model that wind technology. A thorough assessment of represents the major elements of wind the effect of wind technology changes such projects’ costs will result in a tool that as increased generator size, larger rotors, and could be used by IEA or others in estimat- taller towers over the past decade will help ing wind project costs. The model inputs inform the use of learning curves and engi- and methodology will be clearly defined neering models to develop future cost and and documented. A representative set of performance trajectories. input parameters specific to each participat- Wind energy technology ultimately ing country will be collected. These data operates in an electricity system that in- should represent typical costs and project cludes conventional and other alternative

IEA Wind 65 Task 26 electricity generation technologies. Wind data representing the various wind energy energy technology adds value to a system costs in each participating country will in several ways, including reducing carbon be collected, and the model will be exer- emissions, diversifying the fuel supply, and cised to represent costs in each country. providing stable energy production prices. A generic representation of wind energy Various methods and approaches are used to costs will be agreed on by all participants. quantify these impacts of wind energy de- Finally, an analysis in which each country ployment. This work package will provide a identifies the primary differences between summary of these concepts and approaches. actual costs and the generic cost model will be conducted. A report summarizing 3.0 Progress in 2008 the influences of different costs among the Development of the work plan for this task participating countries will be compiled was the primary activity in 2008. All par- in the following year. Most of this work ticipants agreed to the work plan in early will be conducted by web-based meet- 2009. Development of a cost of wind en- ings. However, an in-person meeting will ergy discounted cash flow model was also be held in Sweden in September. At this agreed on as the approach for the first work meeting, assumptions for a generic cost of package. wind energy model will be determined. An approach to begin the work of identifying 4.0 Plans for 2009 future wind energy cost and performance During 2009, the primary activity will be projections will also be addressed. The work directed toward the development of a cost for this task formally began in January 2009 of wind energy discounted cash flow model and is expected to continue for three years and a comparison of input data from each until the end of 2011. of the participating countries. Each country will provide specific guidance to ECN and Author: M. Maureen Hand, National NREL for development of a spreadsheet Renewable Energy Laboratory, the United model and a glossary of terms. Next, input States.

66 2008 Annual Report Chapter 8 Task 27 Consumer Labeling of Small Wind Turbines

1.0 Introduction 2.0 Objectives and Strategy This task, approved in April 2008, will de- The entire wind energy sector should sup- velop and deploy a system of quality label- port the labeling initiative to reduce the ing for consumers of small wind turbines. risk of accidents with small wind turbines The task will also contribute to and use and to minimize deceptive investments in an IEA Wind Recommended Practice for less than optimum equipment. The primary labeling small wind turbines. For anyone objective of this new task is to give incen- interested in buying a small wind turbine, tives to this industrial sector to improve the this work will also provide information technical reliability, and therefore the per- such as recommended methodologies and formance, of small wind turbines. The in- independent test reports on power per- tention is to define a globally standardized formance curves, acoustic noise emissions, product label for small wind turbines and strength and safety, and duration tests. The minimum requirements for a testing process actual testing of the wind turbines is be- that would allow a label to be placed on yond the scope of Task 27. Reliable third- products. This would give customers and party testers such as national laboratories, governments minimum assurances regard- universities, and certification entities already ing the safety and performance of small exist. The Operating Agent of this task will wind turbines. Common methodologies to direct small wind turbine manufacturers to test equipment and test results displayed in these testers in order to get a label for their a form understood by consumers will in- products. crease the maturity of the small-scale wind The task’s primary goals are to 1) build power sector. In addition, consumer quality bridges between small wind turbine manu- labels will benefit manufacturers of high- facturers and third-party testers and 2) to quality small wind turbines, that compete provide private companies with a com- in a marketplace with outdated or untested monly accepted testing methodology (IEA technologies. But mostly, the outcome of Wind Small Wind Turbine Recommended this task will benefit potential buyers and Practice). Table 1 lists the countries partici- installers of small wind turbines and the pating in Task 27 in 2008. official energy entities that give permits to connect them to the electric grid.

Table 1 IEA Wind Task 27 Participants in 2008 Country Contracting Party; Institutions Coordinating Work Australia Clean Energy Council; RISE, Murdoch University Canada Natural Resources Canada; WEICan Japan AIST; JEMA Spain CIEMAT (OA) Sweden Swedish Energy Agency; INTERTEK United Kingdom Department for Business, Enterprise & Regulatory Reform; BWEA, TUV-NEL United States U.S. Department of Energy; NREL, Small Wind Certiﬁ cation Corpora- tion

IEA Wind 67 Task 27

To accomplish these outcomes, several Task 27 proposal, IEC TC 88 proposed goals must be met. developing a third edition of the standard • To build up a critical mass of in- 61400-2 Ed 2 “Requirements for Small volvement the task will include Wind Turbines.” This initiative to improve government agencies, wind turbine the standard was presented and approved in manufacturers, and third-party testers the plenary meeting of the IEC in Beijing (primarily universities, national labo- (China) in September 2008. In addition to ratories and institutes, and companies the existing areas of 61400-2 Ed 2, the new having considerable experience in test- edition would introduce changes desired ing wind power devices) to develop by the small wind turbine industry relat- methodologies for testing and presenting to power performance testing; acoustic ing results and for labeling classifica- sound testing; strength, safety, and design tion. This critical mass should provide requirements; duration testing; reporting the necessary basis for development and certification; change control of certified and wide use of the IEA Wind Rec- products; and, consumer labeling. ommended Practices for the small-scale The IEC TC 88 revisions to 61400-2 wind power sector. and IEA Wind Task 27 initiatives regard- • To test methodologies and labels on ing small wind turbine labeling have some several small wind turbines and provide important conceptual differences. IEC TC feedback to entities that are working to 88 prepares and publishes international update methodologies in this area. standards for wind energy technology. IEA • Strongly increase consumer and of- Wind will provide private companies with ficial entities awareness. a commonly accepted methodology for labeling so they can enter or remain in the The main deliverables of this new task market. The IEC TC 88 proposal to revise are a system of quality labels for small wind 61400-2 is a very ambitious initiative that turbines and an IEA Wind Small Wind will take years to complete. The IEA Wind Turbine Recommended Practice as a pre- Task 27 initiative could be developed more normative international standard for testing quickly to deliver international recommen- and labeling small wind turbines. dations for manufacturers and end users. By During the preparation of the IEA focusing on labeling, the Task 27 activities Wind Task 27 work plan, several initia- will complement the work of IEC TC 88 tives to develop domestic small wind tur- to produce 61400-2 Ed 3. bine quality label procedures have been launched. Among them are the British 4.0 Plans for 2009 and Beyond Wind Energy Association (BWEA) Small An IEA Wind Task 27 kickoff meeting was Wind Turbine Performance and Safety held in Madrid, Spain in February 2009 Standard in February 2008 and the Ameri- to analyze the status of the small wind can Wind Energy Association Small Wind sector in terms of quality certification in Certification Corporation (AWEA-SWCC) the various countries. This meeting was initiative in the United States proposed for organized in liaison with the IEC TC 88. January 2009. However, no systematic in- After this kickoff meeting, several other ternational approach for quality labeling of IEA-IEC liaison meetings were sched- small wind turbines has yet been established. uled for 2009 in the United Kingdom, the United States, Canada, and Japan. The 3.0 Progress in 2008 agenda for these meetings is to complete In response to the same pressures that task planning and assign working groups prompted development of the IEA Wind for proposed activities.

68 2008 Annual Report Task 27

The expected results of this task are as Small Wind Turbine Recommended follows: Practice. • An IEA Wind Small Wind Turbine • Within three years, to convey the Recommended Practice that is a base work to IEC to develop an interna- document in pre-normative form to tional standard, and/or to establish a guide and aid manufacturers, indepen- more permanent hosting/funding of dent organizations acting as testers of the management of the labeling effort. small wind turbines, and public entities • Higher consumer awareness of small and investors involved in developing, wind turbines, resulting in the use of selecting, and licensing wind turbines. better equipment. • An expanding worldwide list of • Improved awareness of IEC standards manufacturers that have submitted in this area. their equipment to third-party tests according to the IEA Wind Small Wind Author: Ignacio Cruz, CIEMAT, Ma- Turbine Recommended Practice. drid, Spain. • An expanding list of third-party testers according to the IEA Wind

IEA Wind 69 Chapter 9 Task 28 Social Acceptance of Wind Energy Projects

1.0 Introduction experiences related to social acceptance and The mission of the IEA Wind Implement- other societal issues. The work will produce ing Agreement is to stimulate co-operation a state-of-the-art report on the knowledge on wind energy research and development and results so far on social acceptance of and to provide high quality information wind power installations, including a list and analysis to member governments and of studies and online library of reports and commercial sector leaders by addressing articles. The participants will establish “Best technology development and deployment Practices” and tools for policy makers and and its bene¬fits, markets, and policy in- planners to reduce project risks due to lack struments. Within IEA Wind, envi-ron- of social acceptance, accelerate time of real- mental and societal issues are sometimes re- ization of projects, accelerate the exploita- ferred to as ‘soft issues’ to differentiate them tion of the full potential of wind energy from technology aspects. However, environ- in the concerned countries, and establish mental and societal issues have become piv- strategies and communication activities to otal to the deployment of wind energy in improve or to maintain the image of wind many countries. Even where the economics power. of wind energy are favorable, deployment Three different groups of people par- can only occur when the public and the ticipate in Task 28. The Working Group planning authorities accept the technology. (1 or 2 people per participating country) This requires an appreciation of the benefits represents the main working body of the of wind energy that weigh against any local task. Its members make the essential con- visual and environmental effects. To address tributions to the task goals by working out these issues, seven countries participate in the results of the work pack-ages (Table IEA Wind Task 27 (Table 1). 2). Members of the Support Group (1 or 2 people per participating country) re-views 2.0 Objectives and Strategy and contributes to the results of the work- A first short report on social acceptance was ing group by commenting on the proposed presented to the IEA Wind ExCo at the reports and suggesting future activities to end of 2007. Specific or partial objectives the working group. Members have yet to of this task are to establish an international be defined. Members of the Social Accep- forum for ex-change of knowledge and tance and Wind Energy Community are the

Table 1 IEA Wind Task 28 Participants in 2008 Country Contracting Party; Institution(s) Canada Natural Resources Canada; University of Québec at Montréal Finland TEKES; wpd Finland Oy Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety; Martin-Luther-University, Otto-von-Guericke-University Japan AIST; the University of Tokyo Norway Enova SF; Centre for Energy and Society, NTNU Switzerland Swiss Federal Ofﬁ ce of Energy; ENCO Energie-Consulting AG (OA) United States U.S. Department of Energy; NREL

IEA70 Wind 2008 Annual Report70 Task 28

Table 2 Members of Working Group for Task 28 Canada University of Québec at Montréal, Department of Political Science Finland wpd Finland Oy Germany Martin-Luther-University Halle-Wittenberg, Institute for Psychology; Federal Ministry for the Environment, Nature Conservation and Nuclear Safety; Otto-von-Guericke-University Magdeburg, Institute for Psychology Japan The University of Tokyo Norway Center for Energy and Society, Department of Interdisciplinary Studies and Culture Switzerland Swiss Federal Ofﬁ ce of Energy, Wind Department; ENCO Energie-Consulting AG United States National Wind Technology Center, NREL recipients of the task’s results, persons to • Proceedings from workshops (presen- be invited to seminars, and scientists and tations given at research meetings plus researchers to be informed about the task notes of the summary discussions) activities. • An online library of case study reports generated by the research 2.1 Overview of anticipated results participants The participants have formulated the possible results from the task’s activities: Due to the expected relevance of the • State-of-the-art report outcomes of this task to the policy makers • Guidelines with a list of best practices of the different countries, results on guide- (methodology, input data, especially lines, new methodologies, strategies, and how so-cial acceptance to be consid- best practices will be available to all partici- ered in project development) pating countries, even when not directly • Translation of the existing knowledge represented in the task. of social scientists into the language of plan-ners and engineers to improve 2.2 Structure of activities and projects and speed up wind energy planning Based on the Task Proposal, the participants processes, e.g. how to elicit participa- structured the possible activities and proj- tion or how to turn affected people ects according to the list in Table 3. The into positively involved parties website, the on-line library, and the ques- • Description of successful participation tionnaire con-cerning various projects will models be ordered in this way. • Curricula on social acceptance issues for seminars, training courses, and 3.0 Progress in 2008 teaching units for wind power people The Task proposal was approved to move • Conference on social acceptance forward by the ExCo at the meeting in with developers and politicians (in 2-3 April 2008. The proposed Operating Agent years), and perhaps scheduled around is ENCO Energie-Consulting AG Switzer- an EWEA conference land represented by Robert Horbaty. A first • Published results of the task in reports Pre-kick-off Meeting was held in August and available on a server Bubendorf, Switzerland. Seven countries

IEA Wind 71 Task 28

Table 3 Structure of activities of Task 28 0 Deﬁ nition of Social Acceptance 4 Instruments - What it is and why we need it. - Visual impacts - Photomontage - Communication campaigns. 1 National Wind Energy Concepts 5 Stakeholders - National / State incentive programs - e.g. Utilities - Spatial planning, planning aid. - Financial institutions - NGO. 2 Distributional Justice 6 Well-being - Burden sharing - Standard of living - Compensation of land use - Quality of life - Compensation of impacts. - Health. 3 Procedural Design - Communication strategy - Step by step procedure - Participation of locals - Social design process - Siting. committed and another five expressed in- • Write a State-of-the-art Report terest. A website has been developed that - The report should have the same can be accessed through www.ieawind.org structure as in Table 1, except there or www.socialacceptance.ch, internal pages will be an Introduction (What are accessed by a password issued by the it is and why we need it), a de- OA representative. tailed Description of Task 28, and Definitions. 4.0 Plans for 2009 and Beyond - Every chapter should distinguish Task 28 work will officially start in 2009 between “What do we know?” and and will conduct activities for three years– “What do we want to know?” from 2009 through the end of 2011 (Figure • Arrange a 1st workshop with the 1). The participants discussed the work plan Support Group at the pre-kick-off meeting and agreed - Present state-of-the-art report upon three work packages. - Define open questions - Define possible new case studies 4.1 Work Package 1: State-of-the-art and research content • Produce a questionnaire for persons - Evaluate key factors for success and and projects non-success in the siting and mi- • Make a list for the Kick-off Meeting crositing proc-esses to state “Wishes” / “Needs” / “Re- quirements” and specify relevant proj- 4.2 Work Package 2: Best practice ects (existing, planned, or open) • Analyse the various projects • Collect information on research- • Analyse case studies to determine ers and projects in different countries: which strategy leads to the best results Who is doing what • Compare and evaluate national and • Create a website and a online library regional policy frameworks

72 2008 Annual Report Task 28

Figure 1 Work plan of Task 28 Social Acceptance of Wind Energy Projects.

• Verify the underlying concept of so- 4.4 Next Meetings cial acceptance (triangle model) The following dates are proposed for the • Compare and evaluate different par- next meetings: ticipation models (“How to turn af- • Kick-off Meeting: 20-21 March 2009 fected people into involved parties”) (Magdeburg, Germany), only Working • Understand and describe the concept Group of “procedural fairness” • 2nd Meeting, Autumn 2009, Tenta- • Describe proposed processes and tive dates: 26-27 October 2009 (Boul- strategies in the fields of: der, Colorado, United States), only - Stakeholder analysis, Working Group - Participation processes, and • 3rd Meeting, Spring 2010 with - Planning procedures EWEA Conference, Tentative dates: • Write Best Practice Report 20-23 April 2010 (EWWC 2010 in • Arrange a 2nd workshop with the Warsaw, Poland), Working Group and Support Group. Support Group.

4.3 Work Package 3: Dissemination Reference: • Collect existing material on courses, (1) Strategic Plan of IEA R&D Wind, 1 etc. November 2003 – 31 October 2008, www. • Produce manuals and instructions for ieawind.org. planners • Organize an international seminar or Author: Robert Horbaty, ENCO Ener- workshop in conjunction with the 3rd gie-Consulting AG, Switzerland workshop of the Support Group.

IEA Wind 73 Chapter 10 Task 29 Analysis of Wind Tunnel Measurements and Improvement of Aerodynamic Models

1.0 Introduction unexpectedly; they experience instabili- The accuracy of wind turbine design mod- ties, power overshoots, or higher loads than els has been assessed in several validation expected. Alternatively, the loads may be projects (1, 2, 3). They all show that the lower than expected which implies an modeling of a wind turbine response (e.g. over dimensioned (and costly) design. To the power or the loads) is subject to large improve these models used to design wind uncertainties. These uncertainties mainly turbines the countries and institutes listed find their origin in the aerodynamic mod- in Table 1 have expressed their interest to eling where several phenomena such as participate, although some are not yet sure 3-D geometric and rotational effects, in- about the availability of funding (4). stationary effects, yaw effects, tower effects, The availability of high quality mea- and stall, amongst others contribute to un- surements is considered to be the most known responses, particularly at off-design important pre-requisite to gain insight conditions. These unknown responses make into these uncertainties and to validate and it very difficult to design cost-effective and improve aerodynamic wind turbine mod- reliable wind turbines. Turbines behave els. However, conventional experimental

Table 1 IEA Wind Task 29 Potential Participants in 2009 Country Contracting Party; Institution(s) Canada Natural Resources Canada; École de technologie supérieur, Montreal Denmark Danish Energy Agency; RISØ DTU/DTU-MEK, and LM-Glasﬁ ber Germany Federal Ministry for the Environment, Nature Conservation and Nuclear Safety; University of Stuttgart, University of Applied Sciences, Kiel and Forwind Japan AIST; Mie University, and National Institute of Advanced Industrial Sci- ence and Technology Korea New & Renewable Energy Division of the Ministry of Knowledge Economy; Korea Institute of Energy Research, and Korea Aerospace Research Institute The Netherlands Senter/Novem; ECN (OA), University of Delft, TUDelft, and AE-Ro- tortechniek Norway Enova SF; Institute for Energy Technology/Norwegian University of Sci- ence and Technology, IFE/NTNU Spain CENER Sweden Swedish Energy Agency; Royal Institute of Technology/University of Gotland UK Department for Business, Enterprise & Regulatory Reform; University of Liverpool USA U.S. Department of Energy; NREL

IEA74 Wind 2008 Annual Report74 Task 29 programs on wind turbines generally do from Wind Tunnel Measurements, com- not provide sufficient information for this pleted in 2007. purpose, since they only measure the in- IEA Wind Task 29 MEXNEX(T) is the tegrated, total (blade or rotor) loads. These successor of Task 20. It will use the wind loads consist of an aerodynamic and a mass tunnel measurements from the EU project induced component and they are integrated Model Experiments in Controlled Condi- over a certain spanwise length. In the late tions (MExICo) that became available in 1980’s and the 1990’s it was realized that December 2006 (1). In this project, detailed more direct aerodynamic information was aerodynamic measurements were carried needed in order to improve the aerody- out on a wind turbine model with a di- namic modeling. For this reason several in- ameter of 4.5 m, which was placed in the stitutes initiated experimental programs in 9.5 m2 LLF facility of the German Dutch which pressure distribution and the result- Wind Tunnel (DNW). Within the MEX- ing normal and tangential forces at differ- ICO project, pressure surface data were ent radial positions were measured. Under measured at five radial positions (25%, 35%, previous research tasks of the IEA Wind, 60%, 82%, and 92% span) together with many of these measurements were stored in blade root bending moments and tower a database in Task 14 Field Rotor Aerody- bottom moments from a tunnel balance namics and Task 18 Enhanced Field Rotor from DNW (Figure 1). Perhaps the most Aerodynamics Database (5). The results of important feature of the measurements is these measurements turned out to be very the extensive flow field mapping from the useful and important new insights about stereo Particle Image Velocimetry (PIV) 3-D stall effects, tip effects, and yaw were technique. formed. However, the measurements were Although the size of the wind turbine taken on turbines in the free atmosphere, rotor used is smaller, the MEXICO experi- where the uncertainty due to the instation- ments were designed to be complementary ary, inhomogeneous, and uncontrolled wind with the NREL measurements at NASA- conditions formed an important problem Ames. The most important difference (as it is in all field measurements). between the two experiments is that the This problem was overcome when the MEXICO project includes extensive flow National Renewable Energy Laboratory field measurements, simultaneous with the (NREL) National Aeronautics and Space pressure and load measurements. Also, the Administration (NASA)-Ames wind tunnel MEXICO model was three bladed, whereas experiment that was carried out in 2000 in the NREL model used at NASA-Ames the United States (2). In this experiment, was two bladed. Furthermore, the major- a heavily instrumented rotor with a 10 m ity of the NREL measurements concern diameter was placed in the 24.4-m by 36.6- (the very important) stalled flow, while the m) wind tunnel and measured with few entire operational envelope was covered in blockage effects. Although this rotor diam- the MEXICO measurements. Finally, the eter is still much smaller than the diameter MEXICO measurements made use of fast of modern commercial wind turbines, the Kulite pressure transducers, which measure blade Reynolds number (in the order of 1 absolute pressures, whereas differential pres- million) was sufficiently high to make the sures were measured in the NREL experi- aerodynamic phenomena, at least to some ment (both techniques have pros and cons). extent, representative of modern wind tur- The MEXICO database is still in a bines. NREL made the measurements from rather rudimentary form and only limited this experiment available to other institutes analyses have been carried out (6, 9, 10). and they were analyzed within IEA Wind This is the case because the amount of data Task 20 HAWT Aerodynamics and Models is vast and the time needed to analyse all

IEA Wind 75 Task 29

Figure 1 The MEXICO model turbine in the LLF tunnel of DNW. The blue box is the yawable balance and the (vertical) yaw axis passing through the rotor center. The tunnel collector is shown in the background and the nozzle in the foreground. The nozzle measures 9.5 m2, the collector 9.7 m2. data is extremely long for a single country. carried out in the EU-sponsored MEXICO A cooperative research task under IEA project. Special attention will be paid to Wind is an efficient way to organize the yawed flow, instationary aerodynamics, analysis of the MEXICO data. Added value 3-D effects, tip effects, non-uniformity of also lies in the fact that the task will serve flow between the blades, near wake aero- as a forum for discussion and interpretation dynamics, turbulent wake, standstill, tunnel of the results. This will generate more value effects, etc. These effects will be analysed from the data than the summed value from by means of different categories of models the individual projects. (computational fluid dynamics (CFD), free In the IEA Wind Task 29 wake methods, engineering methods, etc.). MEXNEX(T), the data will be accessible A comparison of the MEXICO findings and a thorough analysis will take place. This with the findings of the NASA-Ames and includes an assessment of the measurement other experiments will also be carried out, uncertainties and a validation of different providing insight on the accuracy of dif- categories of aerodynamic models (ro- ferent types of models and descriptions for tor aerodynamics and near wake models, improved wind turbine models. where the latter type of models form part In order to reach the objective, the of wind farm models as well). The insights work plan is divided into five work pack- will be compared with the knowledge that ages (WP): was gained from IEA Wind Task 20 on the NASA-Ames experiment and from other • WP1: Processing/presentation of experiments such as wind tunnel measure- data, uncertainties. The aim of this ments from the Technical University of work package is to provide high qual- Delft (7) and FFA (8). ity measurement data to the calculational parties. In principle, the data is 2.0 Objectives and Strategy organized in a self explanatory way but The objective of the IEA Wind Task it will be investigated whether some MEXNEX(T) is a thorough investigation further processing, explanations, cor- of the measurements which have been rections, and descriptions are needed. Furthermore, an uncertainty analysis

76 2008 Annual Report Task 29

will be performed in the form of con- The phenomena will be investi- sistency checks and an investigation gated with isolated submodels, simple of the reproducibility of the data. The analytical tools, or by physical rules. WP also includes an assessment of the Phenomena that will be investigated blade manufacturing (note that the include 3-D effects, instationary ef- actual blade shape has been measured). fects, yawed flow, non-uniformity of This shape will be compared with the the flow between the blades (i.e. tip specified geometry. corrections), and the wake flow at dif- • WP2: Analysis of tunnel effects. The ferent conditions, among other things. 4.5 m diameter wind turbine model • WP5: Comparison with results from was placed in the open jet section of other (mainly NASA-Ames) measure- the 9.5 m2 LLF facility. This ratio of ments. The results from WP3 and WP4 turbine diameter to tunnel size may are expected to provide many insights make the wind tunnel situation not into the accuracy of different codes and fully representative of the free stream their underlying sub-models. Within situation. Therefore tunnel effects will WP5 it will be investigated whether be studied with advanced CFD mod- these findings are consistent with re- els. Supporting information on tunnel sults from other aerodynamic experi- effects will also be obtained from eight ments, particularly the data provided pressures, which were measured with within IEA Wind Task 20from NREL’s taps in the collector entrance. These NASA-Ames experiment. pressures measure the speedup in the outer flow (outside the wake) needed 3.0 Progress in 2008 for the mass conservation of the tunnel A kick-off meeting in September 2008 flow. was attended by interested participants. • WP3: Comparison of calculational Although formal work in the task begins results from different types of codes in 2009, some interesting results were pub- with MEXICO measurement data. lished in January 2009 (9, 10, 11). In this WP the calculational results from the codes which are used by the 4.0 Plans for 2009 and Beyond participants are compared with the data As mentioned in section 3.0, Task 29 started from the MEXICO experiment. It is only in September 2008 with a kick-off meant to be a thorough validation of meeting which was attended by almost all different codes and it provides insights interested participants. At this meeting a de- into the phenomena which need fur- tailed time line was discussed. In 2009, the ther investigation (see WP4). The fol- emphasis of the activities will lie on WP1 lowing quantities will be compared: (Processing/presentation of data, uncertain- - Pressure surface data ties), WP2 (Analysis of tunnel effects), and - Aerodynamic normal force WP3 (Comparison of calculational results coefficients from different types of codes with MEX- - Aerodynamic tangential force ICO measurement data). The time line of coefficients the project leads to production of the final - Blade root bending moments and report in 2011. tower bottom loads - PIV flow field data. References and notes: - P4: Deeper investigation into (1) J. G. Schepers and H. Snel: ‘Model phenomena. Experiments in Controlled Conditions, In this WP a deeper investigation of Final report,’ ECN-E-07-042, Energy Re- different phenomena will take place. search Center of the Netherlands, ECN, February 2007.

IEA Wind 77 Task 29

Download from http:// Experiments in Controlled Conditions): www.ecn.nl/publicaties/default. The database and first results of data pro- aspx?nr=ECN-E--07-042 cessing and interpretation,’ The Science (2) D.Simms, S. Schreck, M. Hand, L.J. of Making Torque from the Wind, 28–31 Finghers ‘NREL Unsteady Aerodynam- August 2007, Technical University of ics Experiment in the NASA-Ames Wind Denmark. Tunnel: A Comparison of Predictions to Download from http://iopscience. Measurements,’ NREL-TP-500-29494, The iop.org/1742-6596/75/1/012014/ National Renewable Energy Laboratory, pdf?ejredirect=iopsciencetrial NREL, June 2001. (7) W. Haans, T. Sant, G. van Kuik and (3) J.G. Schepers, J.J. Heijdra, D. Fousse- G. van Bussel, Delft University of Technol- kis, S Øye, R. Rawlinson Smith,; M. Beles- ogy, Delft, The Netherlands Measurement sis, K. Thomsen, T. Larsen, I. Kraan, I. B. and Modelling of Tip Vortex Paths in the Visser, I. Carlen, H. Ganander, H. L. Drost Wake of a HAWT Under Yawed Flow ‘Verification of European Wind Turbine Conditions AIAA-2005-590 43rd AIAA Design Codes, VEWTDC’ final report, Aerospace Sciences Meeting and Exhibit, ECN-C--01-055, Energy Research Center Reno, Nevada, USA, Jan. 10-13, 2005. of the Netherlands, ECN, April 2002. (8) G. Ronsten: Pressure measurements Download from http:// in a rotating and a non-rotating 2.34 m www.ecn.nl/publicaties/default. wind turbine blade. Comparison with 2D aspx?nr=ECN-C--01-055 calculations, Proceedings of EWEC Con- (4) It is noted that Israel (Tech- ference, Amsterdam, October 1991. nion) is also interested in participating in (9) H. Snel, J.G. Schepers and A. Sicca- MEXNEX(T), but Israel has not yet joined ma, Mexico, the database and results of data the IEA Wind Implementing Agreement. processing and analysis 47th AIAA Aero- Actions have been taken to extend mem- space Sciences meeting, Orlando, Florida, bership to Israel. USA, January 2009. (5) J.G. Schepers, A.J. Brand, A. Bruin- (10) L. Pascal Analysis of Mexico mea- ing, R. van Rooij, J.M.R. Graham, R.J.H. surements, ECN-Wind Memo-09-010, Paynter, M.M. Hand, D.A. Simms, D.G. January 2009. Infield, H.A. Madsen, T. Maeda, Y. Shimizu, (11) H. Snel and J.G. Schepers N. Stefanatos ‘Final Report of IEA Annex JOULE1: Joint Investigation of Dynamic XVIII: ‘Enhanced Field Rotor Aerodynam- Inflow Effects and Implementation of an ics Database’ ECN-C--02-016, Energy Engineering Method, Energy Research Research Centre of the Netherlands, ECN, Centre of the Netherlands, ECN, ECN- February 2002. C-94-107, December 1994. Download from http://www.ecn. nl/en/wind/additional/special-projects/ Author: J. Gerard Schepers, ECN, the field-rotor-aerodynamics-database/ Netherlands. (6) H. Snel, J.G. Schepers, B. Mont- gomerie: ‘The MEXICO project (Model

78 2008 Annual Report Chapter 11 1.0 Introduction In 2008, Australia’s renewable energy in- Australia dustry rapidly expanded due to a growing commitment from governments, communities, and investors to reduce carbon emis- and innovation to exploit our abundant sions. Renewable energy has proven to be suite of world-class clean energy resources. an integral part of the energy mix as well This will foster accelerated development as providing marked increase in national of emerging technologies and drive down energy security. costs for those already proven. Further, the In 2007, the government committed to 10,202 MW of projects currently in either ensuring that 20% of Australia’s electricity development or evaluation (Table 2) is a supply would come from renewable energy clear indication of the potential of sound sources by 2020 by establishing the ex- supportive policy for the industry. panded national Renewable Energy Target (RET) scheme. Draft legislation on the de- 2.0 Progress Toward National sign of the RET was released in December Objectives 2008. The final legislation to implement the 2.1 Industry growth in 2008 RET is expected to pass through parlia- The Clean Energy Council (CEC) exists as ment in mid-2009 and is due to commence Australia’s peak industry body to drive ac- on 1 January 2010. The national RET celerated deployment and uptake of clean scheme will increase the existing MRET energy technologies and energy efficiency by more than four times to 45,000 GWh measures. It is funded by members to ad- in 2020 to ensure that Australia reaches the vocate policy on their behalf at an industry 20% target by 2020. level, and it profiles the industry through Correctly drafted legislation such as forums such as conferences, seminars, and the RET will be an important comple- related publications. mentary measure in the government’s cli- In Australia, wind energy is a proven mate change strategy. Its primary objective and reliable technology that can be and should be to develop a dynamic and inter- is readily deployed. At the close of 2008, nationally competitive clean energy indus- there were 50 wind farms in Australia, with try in Australia. Its success will be demon- a total of 756 operating turbines. The to- strated by its ability to stimulate investment tal operating wind capacity was 1.3 GW

Table 1 Key Statistics 2008: Australia Total installed wind generation 1,306 MW New wind generation installed 482 MW Total electrical output from wind 3.462 TWh Wind generation as % of national 1.3% electric demand Target: The Mandatory Renewable Energy Target, 9,500 GWh from renewables by 2010, has been met. The new government has promised a further Renewable Energy Target, 45,000 GWh from renewables by 2020, beginning in 2010 (combining and extending state targets). Legislated targets introduced by state governments: Victoria – 10% by 2016

IEA Wind 79 National Activities

Table 2 Installed wind capacity Capital Wind Farm (Babcock & Brown in Australia 2008 Wind Partners, 140 MW) and Cullerin Range (Origin Energy, 30 MW) in New Sum of installed capacity MW South Wales and Hallett Stage 2 (AGL, 71 Operating 1,306 MW) and Clements Gap (Pacific Hydro, 58 MW) in South Australia. In Victoria this in- Construction 535 cludes Waubra (Acciona Energy, 192 MW) Development 5,824 and Portland Stage 3—Cape Nelson South (Pacific Hydro, 44 MW), which is part of Evaluation 4,378 the Portland Wind Project. Potential 484 The proposed target will stimulate more than 20 billion AUD of investment Total 12,527 in Australia’s emerging renewables industry. The wind industry will be a major contrib- (Table 3). Several new projects also became utor to Australia meeting this target. fully operational throughout the year, adding capacity to the Australian electricity 2.2 The emissions trading scheme grid. These include Hallett Stage 1 (AGL, The Australian federal government released 95 MW), Lake Bonney Stage 2 (Babcock its Carbon Pollution Reduction Scheme & Brown Wind Partners, 159 MW), Mt. White Paper in late December 2008. It Millar (Transfield Services Infrastructure proposed that the emissions trading scheme Fund, 70 MW), and Snowtown Stage 1 start in 2010, assuming a starting carbon (TrustPower, 99 MW), all in South Austra- price of around 25 AUD/tonne. The price lia; Portland Stage 2—Cape Bridgewater of emissions is set to be capped at 40 (Pacific Hydro, 58 MW) in Victoria; and AUD/tonne, escalating at 5% real per an- Kalbarri (VerveEnergy, 1.6 MW) in Western num. This rate is too low on its own to Australia. trigger investment in large-scale renew- Another six projects totaling 535 MW ables. Allowing importing of emissions are under construction and expected to credits means the eventual carbon price is be commissioned in 2009. These include likely to be driven by international rather than Australian activity. The industry is encouraged by the gov- Table 3 Total installed capacity in ernment’s move to maintain momentum by Australia starting the scheme in 2010 and highlight- Year MW ing the importance of stabilizing greenhouse gas concentrations at around 450 2000 32 ppm CO2e. Importantly, the white paper 2001 73 has for the first time outlined a set of principles by which all complementary mea- 2002 105 sures will be developed. This will serve as a 2003 198 useful guide for future discussion relating to emission reductions. The principles focus 2004 380 on delivering against specific market failures 2005 708 and must ensure efficiency, effectiveness, equity, and administrative simplicity. 2006 817 2007 824 3.0 Benefits to National Economy 3.1 Market characteristics 2008 1,306 The Australian wind power sector continues to make a significant contribution to

80 2008 Annual Report Australia

Australia’s economy (Table 4), particularly systems. It takes weather forecasts from in regional areas. Given that Australia is rich meteorological bureaus and operational data in renewable resources, it is likely that re- from wind energy generators, such as site gional areas will see an influx of new clean wind speed and direction and turbine avail- energy developments such as wind or solar ability and output, to produce forecasts of farms and bioenergy plants. Such changes expected wind energy generation. will create great economic opportunities The base AWEFS became operational both regionally and nationally. in late 2008; Australia-specific functionality and enhancements are expected to be in 3.2 Grid connection issues place by 2010. While the AWEFS will ini- In mid-2008, an Australian wind energy tially operate in the NEM, the system is ca- forecasting system was implemented by pable of being extended to other Australian NEMMCO, the operator for the National electricity markets. The levels of available Electricity Market (NEM). This sophisti- wind forecast information include dispatch cated forecasting model is called the Aus- forecast information from a single wind tralian Wind Energy Forecasting System farm or all wind farms in a region. (AWEFS). It was established in response In 2008, an amendment was made to to the growth in intermittent generation the National Electricity Rules to allow for such as wind and the increasing impact semi-dispatch of new generators, including this growth is having on NEM’s forecast- wind farms. This allows generation from ing process. Wind energy’s variability wind farms to be limited when required to presents challenges for electricity system better manage the constraints on the grid. management. The ability to better forecast wind 4.0 National Incentive Programs power generation will assist in the manage- 4.1 State-based incentive programs ment of the NEM and allow higher pen- The Victorian Renewable Energy Target etration of wind in the market. The AWEFS (VRET) scheme that commenced on 1 is a centralized system that provides predic- January 2007, mandates Victoria’s consump- tions of wind energy generation compat- tion of electricity generated from renewable ible with NEMMCO’s NEM management sources be 10% by 2016. Under the scheme,

Table 4 Australian wind energy industry 2008: Economic, environmental, and social benefits* Installed megawatts 1,306 Average number of Australian households powered 487,537 by wind energy Number of wind energy projects (two or more 37 turbines) Annual greenhouse gas emissions displaced 3,530,744

(tonnes CO2/yr) Equivalent number of cars taken off the road/yr 784,610 Total capital investment (billion AUD) 2.207 *All figures are estimates only based on current available information obtained by the Clean Energy Council.

IEA Wind 81 National Activities

Figure 1 Installed wind capacity in Australia by state. all retailers and wholesale purchasers of the program’s establishment in 1997 is electricity in Victoria will have a legal li- equivalent to 4,777,881 MWh. ability to contribute toward the generation of additional renewable energy by acquiring 4.3 Department of Victorian Renewable Energy Certificates Climate Change initiatives (VRECs). Relevant entities are required to The Department of Climate Change was surrender VRECs in proportion to their established on 3 December 2007 as part of acquisitions of electricity. A penalty will be the Prime Minister and Cabinet Portfolio. imposed on entities that fail to surrender The Australian government has committed sufficient VRECs to offset their liability. Ac- to: credited renewable energy power stations • Reducing emissions in Australia in and small generation unit owners are eligi- the short and long term—reduce Aus- ble to create VRECs under the scheme. The tralia’s greenhouse gas emissions by VRET scheme has allowed large wind farm 60% on 2000 levels by 2050; projects such as the Portland Wind Energy • Working with the international com- Project and Waubra to go ahead. munity to develop a global response; and 4.2 Green Power national • Preparing for the inevitable impacts accreditation program of climate change. Renewable energy development is also encouraged by the nationally accredited 5.0 RD&D Activities program Green Power, which sets stringent 5.1 Significant funding announcements environmental and reporting standards The Renewable Energy Fund that was an- for renewable energy products offered by nounced in the May 2008 budget will be electricity suppliers to households and busi- brought forward to be spent over the next nesses across Australia. Since Green Power’s 18 months rather than the original five-year inception in 1997, more than 740,880 time frame. This fund includes 15 million domestic and commercial customers have AUD for second-generation biofuels and contributed to reducing greenhouse gas 50 million AUD specifically for geother- emissions by buying green power across mal drilling. The remainder of the fund Australia. The total Green Power sales since will go toward large-scale demonstration

82 2008 Annual Report Australia projects that will deliver technology from address areas of potential environmental the laboratory straight to homes and busi- concern before they arise. nesses, helping to prove a project’s viability Wind farm lighting and aircraft safety on a technical and economic basis. Under is another area where there is concern the fund, the private sector must contribute among local communities with respect to at least 2 AUD for every 1 AUD provided by amenity issues where turbines are required the government. The fund will be launched to be lit at night. The industry is seeking to in 2009 with the release of guidelines for ap- work proactively with government and the plicants and a call for a first round of applica- Civil Aviation Safety Authority to develop tions. The Renewable Energy Fund is for world best-practices guidance on this issue. large-scale demonstration projects; wind will This work is expected to be finalized by not be a big recipient as it is already a well- mid-2009. established market sector in Australia. Rather, The South Australia Environment Pro- this investment is expected to provide great tection Authority (EPA) is currently under- impetus for the early development of geo- taking a review of noise guidelines for wind thermal, solar thermal, bioenergy, and ocean farms. Although these guidelines are specific generation projects. to South Australia, many other state juris- dictions use them as a reference point when 5.2 Environmental and setting policy and approving wind farm amenity impacts projects. The industry is actively involved in The Brolgas project is a collaborative proj- providing input into this review to ensure ect between wind industry representatives that the resulting guidelines are reasonable and Australian state and federal government from both amenity and industry develop- to research the Brolga (Grus rubicunda) ment perspectives. bird population in the region. The project has been initiated in response to a rapidly 6.0 The Next Term emerging wind energy industry within the 6.1. Priorities for industry growth Brolga’s range in southwestern Victoria and At the close of 2008, the Australian federal the need to assess accurately the potential government released draft legislation to im- impacts of an increasing number of wind plement its promised RET of 20% by 2020. energy proposals. The project’s overall objec- Now the challenge for Australia’s clean en- tive is to develop a scientific framework for ergy industry is to help the government get understanding and assessing the potential the design right and implement the legisla- impacts of the wind energy industry on the tion as quickly as possible. southwest Victorian Brolga bird population, The Clean Energy Council has already including the effectiveness of mitigation begun framing its position to guide negoti- strategies. This framework will be based on a ations on the policy details. The first half of three- to four-year research program into the 2009 will be a crucial time for the industry Brolga in that region. to ensure the target delivers against its pri- The outcomes of this project will mary objective—providing an effective and ensure that wind development in the re- reliable industry development mechanism gion is sensitive to the preservation needs for the coming decade. of the species, and conversely that proj- In 2009, the federal government is also ects are not unduly impacted and made moving to financially unviable by unreasonable or • Implement its carbon pollution re- unscientific approaches to conservation of duction scheme; the Brolgas in the southwest of Victoria. • Develop a national strategy for en- This project is a clear demonstration of ergy efficiency; and the industry working cooperatively with • Begin deployment of its 435 million both government and key stakeholders to AUD Renewable Energy Fund and

IEA Wind 83 National Activities

the new 500 million AUD Innovation important in the history of global climate in Climate Change Fund (announced change negotiations. The Clean Energy in 2008). Council’s international team is in consulta- These measures will all require the tion with U.S., UK, and EU counterparts considered input of our industry to assist through the alliance of the International governments in extracting the maximum Council for Sustainable Energy to develop value from proposed initiatives. a collective strategy for the renewable in- All this will culminate at the United dustry’s policy position. Nations Framework Convention on Cli- mate Change (UNFCCC) meeting in Author: Felicity Sands, Policy Research, Copenhagen in 2009, considered the most Clean Energy Council, Australia.

84 2008 Annual Report Chapter 12 1.0 Introduction In 2008, 14 MW of new wind generation Austria was installed for a total of 995 MW. The 162 wind parks with 618 wind turbines generated 2.1 TWh of electricity, enough Austria has committed itself to an increase to power 570,000 households. This genera- in alternative energy from the current tion avoided 1.3 million tonnes of CO2 for 23.3% to 34% by 2020. the year. Surveys and assessments show a poten- 3.0 Benefits to the tial of 7.2 to 7.3 TWh of wind energy by National Economy 2020. This would comply with 10% of the The Austrian wind energy sector consists total energy expenditure. In strong contrast on one hand of the operators of wind to this great potential, the construction of farms and on the other hand of the sup- new wind turbines in Austria came more or plying industry. The Austrian component less to a standstill in 2008. An amendment suppliers are specialized in wind turbine to the green electricity law worsened the control systems, blade materials, genera- framework conditions significantly. Recent- tors and wind turbine design. Last year ly new planning has been agreed. Now, also the turnover of these companies rose by because of the financial crisis, planning of 25% to about 300 million €. The Austrian Austrian Projects is gaining attention, even wind power association estimates that though they can only be realized when the about 2,500 jobs have been created in the green electricity law, especially the funding whole wind energy sector. guidelines are improved. 3.1 Market characteristics 2.0 Progress towards About 40% of all existing wind plants are National Objectives owned by cooperatives; another 40% are There is no Austrian wind energy target owned by utilities; and the rest are owned yet. Nevertheless, there are two compulsory by private companies. The first wind targets for the whole renewable energy sec- turbines in Austria where built in 1994. tor. The old EU target of 78.1% of the na- At that time, cooperatives or single wind tional electric demand by 2010 (the current turbines built by farmers were most com- percentage lies at about 60%). The other mon. Due to a more stable framework target is the EU resolution RES, where in the support system since 2000, but

Table 1 Key Statistics 2008: Austria Total installed wind generation 995 MW New wind generation installed 14 MW Total electrical output from wind 2.1 TWh Wind generation as % of national electric demand 3.0% Target: 2010: 78.1% electricity from renewable sources; 2020 RES should reach 34% of the total energy production. For reaching this target, according to our estimations 10% of the total electricity consumption are achievable

IEA Wind 85 National Activities

Figure 1 Development of wind power installations. especially in 2003, utilities and other com- MW of wind capacity is equipped with the panies got into the market on a larger scale. control systems of Bachmann electronics. Today the most successful players planning Hexcel Composites GmbH develops and new wind projects are cooperatives, which produces materials for blades. Elin EBG were able to grow over the years, and Motoren GmbH expanded its production utilities. of generators in 2008. It established a joint The Austrian operators are very ac- venture with Suzlon in India. Windtec tive in the neighboring countries of Cen- GmbH develops customized wind turbine tral and Eastern Europe. When prospects concepts and helps its customers to set up worsened in 2006, operators concentrated their own production They find their mar- on project developments abroad. In spring ket mainly in the Far East. At the moment 2009, some of the independent companies they are also working on a 10-MW wind formed “The Wind Company GmbH” turbine. which is planning the development of proj- Other companies are benefiting from ects in regions outside of Europe. the booming world market for wind energy. In 2008, the first wind projects were Companies from traditional branches are repowered. Four 600-kW wind turbines now building wind power components, were replaced by six 2-MW machines. often unknown to the public, the trade Since Austria only recently began building unions, or even the wind energy associa- of wind plants, most of the turbines are al- tion. Therefore in 2009, a new market anal- ready in the 1.8-MW to 2-MW size range. ysis will be initiated by the Federal Ministry The two main suppliers in the Austrian of Transport, Innovation and Technology. market are Enercon and Vestas. Component suppliers are the main 3.3 Economic details economic activity in Austria related to Since there were only a few wind tur- wind energy. Bachmann electronics GmbH bines installed in 2008, it is difficult to tell is one of the world’s leading manufacturers the exact prices. Quotations from wind of turbine control systems. About 35,000 turbine manufacturers to developers for

86 2008 Annual Report Austria some defined projects include prices rang- aid. According to the existing law the feed- ing from 1,400 €/kW to 1,800 €/kW for in tariff has to be lowered every year. The machines in the 2-MW, 100-m hub-height tariff for 2008 is 0.0743 €/kWh. class. In the new (decided, not yet implemented) green electricity law there is a goal 4.0 National Incentive Programs of 700 MW until 2015. But this goal can Back in 2003 to 2004, Austria had a work- only be reached if great effort will be made ing support system for wind energy devel- in the next few years. opment. The nationwide green electricity act (“Ökostromgesetz”) supported all kinds 5.0 R, D&D Activities of renewables (except large hydro) with In the last several years some studies where feed-in tariffs lasting 13 years. A boom was conducted in the field of wind energy triggered in all kinds of renewables, but potential (1) including studies on social only projects that received their permission acceptance of wind energy in Austria or by the end of 2004 were supported. Those integration of wind power through load projects were completed through 2006. management. Furthermore, the Energy Since then, only a few wind turbines have Economics Group (EEG) of Vienna’s Tech- been installed. nical University is working in many fields Since 2004 there has been discussion of of renewable energy on the topics such as: amending the law. In 2006, an amendment costs, potential, grid integration etc. of re- brought deep cuts in the security for inves- newable energies (2). tors. Also the tariff was cut from 0.078 €/ As stated above a new market survey kWh to 0.075 €/kWh. After 2006, the law is planned which will start in summer was amended three more times with the last 2009. Its aim is to get a realistic overview decision in July 2008. For wind energy, this of the economic activities in the Austrian last amendment was seen at least as a step wind sector. in the right direction, but unfortunately it Another project wants to create a has not yet come into power. In 2009, the wind atlas for Austria and a map and an discussion with the European Commission estimation of the realistic wind potential. was still going on. It was not clear if a new The same company, which is managing cost ceiling for energy-intensive industries the Wind Atlas, “Energiewerkstatt Verein” was in line with the EU regulation of state wants to start to do more research work in

Figure 2 Market share of wind turbine suppliers to Austria.

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Figure 3 Tauern wind park Oberzeiring (Credit: Stefan Hantsch). the field of wind energy and cold climate Austria and whether it will help wind en- (See Figure 3). ergy development. On the other hand, the component 6.0 The Next Term suppliers are optimistic. Even with the dif- A summary of expected and needed activi- ficult economic situation they expect to ties in 2009 will be presented by the Aus- continue the very good growth rates of re- trian Wind Energy Association, including cent years. They have achieved this growth expected growth, industrial trends, policy by recruiting new customers and increasing trends and planned R&D activities. The their share of the world market. necessary components for continued or increased growth will be listed and any key References: lessons to learn or major trends of interest (1) http://ispace.researchstudio.at/ to decision makers identified. products/products_eea_wind_de.html) It is likely that in 2009 no wind tur- (2) (www.eeg.tuwien.ac.at) bines will be installed in Austria. For increased capacity, an improved law is crucial, Authors: Stefan Hantsch Austrian Wind and also feed-in tariffs at the level of the Energy Association and Susanne Glanzegg, other European states that encouraged Federal Ministry of Transport, Innovation wind energy development. It is not clear and Technology, Austria. when a new law will come into force in

88 2008 Annual Report Chapter 13 1.0 Introduction Following on the success of the Wind Canada Power Production Incentive, which funded approximately 1,000 MW of new wind capacity since 2002, the ecoENERGY for infrastructure will be needed in the short to Renewable Power program was launched medium term for wind to reach significant in April 2007 to provide the same kind of levels of penetration. production incentive to all renewable energy technologies. The 14-year program will 2.0 Progress Toward invest close to 1.5 billion CAD to increase National Objectives Canada’s supply of clean electricity from Although there are no national wind renewable sources such as wind, biomass, energy deployment targets, the federal low-impact hydro, geothermal, solar photo- government’s wind and renewable energy voltaic, and ocean energy. programs provide considerable economic The influence of the federal program incentives for the accelerated introduction on the development of wind energy in of new capacity. In April 2007, the federal Canada can readily be seen when reviewing government launched a new ecoENERGY yearly installed capacities (Figure 1). The for Renewable Power program to pursue capacity added in 2006 was not replicated the efforts that began with the Wind Power in 2007 or 2008. While it can be inferred Production Incentive (WPPI) program. The that wind energy in Canada still requires new program will fund an additional 4,000 financial support to make it consistently MW of renewable energy technologies by appealing and competitive with conven- 2011 out of which 3,000 MW is expected tional energy sources, other factors like the to be wind capacity. This program, along unavailability of turbines and the turmoil with numerous provincial initiatives, is the in the financial markets can also explain main driver for future wind energy deploy- the lower numbers of the last two years. ment in Canada. Research support measures are also needed By December 2008, a total of 2,369 to stimulate domestic manufacturing and MW of wind power had been installed in assembly operations. Canada. In 2008, Canadian wind installed While wind capacity currently rep- capacity increased by 28% from 2007 with resents about 1% of Canada’s total capac- the addition of 523 MW of installed capacity, future growth will depend on how ity (Figure 1). This annual increase ranks well new capacity can be integrated into Canada tenth in the world in annual in- the grid. It is expected that major invest- stalled capacity for 2008 and eleventh in ments in transmission and distribution the world in total cumulative capacity.

Table 1 Key Statistics 2008: Canada Total installed wind generation 2,369 MW New wind generation installed 523 MW Total electrical output from wind [5.8] TWh* Wind generation as % of national electric demand [1.0]%* Target: n/a Progress to target: n/a * Estimated and based on installed capacity with a 30% capacity factor and new capacity with 15% capacity factor. Source: StatsCan: 57-601-XWE

IEA Wind 89 National Activities

Figure 1 Installed capacity per year in Canada. Source: Natural Resources Canada (NRCan) 2009.

In 2008, the expansion of wind en- awarded 990 MW Request for Proposal ergy production continued across Canada’s (RFP) process issued in 2004 by Hydro- large and geographically diverse land mass Québec. In New Brunswick, the Kent Hills (Figure 2). By December 2008, the central Wind Farm (96 MW) was commissioned province of Ontario had the largest total in 2008. This wind farm represents the first installed wind capacity, with 782 MW, fol- step taken by the province to achieve its lowed by the central province of Québec at target of generating 400 MW from wind 532 MW, and Western province of Alberta power by 2016. Finally, in Newfoundland at 523 MW (Figure 3). Only one out of and Labrador, the St. Lawrence Wind Farm Canada’s ten provinces does not have in- (27 MW) was completed in late 2008. This stalled wind capacity, the Western province project contributes to the provincial target of British Columbia. British Columbia is of 80 MW of wind energy on the island of expecting the commissioning of its maiden Newfoundland. wind farms in 2009. The largest total for new installations in 2.1 Rates and trends in deployment 2008 occurred in Ontario with 281 MW, Installed wind power capacity in Canada much of which resulted from the commis- has experienced an average annual growth sioning of the Melancthon Project Phase 2 rate of 52% over the past five years. Canada (132 MW) and the Port Alma Wind Farm enjoyed its second best year in new capac- (101.2 MW). Figure 3 shows the Cultus ity installations in 2008 with 523 MW in- and Frogmore wind farms (19.8 MW) in stalled. In spite of this achievement, Canada Norfolk County, Ontario. In Québec, the did experience a drop in annual installed Carleton Wind Farm (109.5 MW) rep- wind power capacity from its record year resented the single largest commissioned in 2006 (776 MW). Factors contributing wind farm in 2008. This farm is the third to this decrease include the uncertainty project to be commissioned from the concerning the federal incentive for wind energy during 2008 and the renewal of the

90 2008 Annual Report Canada

Figure 2 Canada’s installed wind capacity. Source: Canadian Wind Energy Association Web Site, February 2009. production tax credit in the United States, 2.2 Contribution to which increased the competition for equip- national energy demand ment and reduced the availability of tur- In 2005, Canadian national electrical ener- bines in the Canadian market. gy generation totaled 557 TWh (1) and was Canada is poised to set an annual instal- estimated to reach approximately 575 TWh lation record in 2009 with a minimum of in 2008. Total installed generation capacity, 650 MW expected to be installed before which includes hydropower, coal, nuclear, year’s end. This anticipated capacity growth natural gas, oil-fired, wood-fired, tidal, and is a result of the ecoENERGY for Renew- wind plants, totaled 124 GW in 2006 and able Power program launch in early 2007 was estimated to reach a similar level in coupled with a record number of provincial 2008. The installed wind capacity was 2,369 wind farms expected to be commissioned MW at the end of 2008, producing an esti- in 2009. Strong annual growth rates for mated 5,800 GWh of wind energy per year wind power installations in Canada are (about 1.0% of total electricity production). expected to continue for the foreseeable future, but the impact of the global credit cri- 3.0 Benefits to National Economy sis remains unclear. According to the Cana- 3.1 Market characteristics dian Wind Energy Association (CanWEA), In Canada, wind farms are usually owned projects currently under construction or by private corporations (independent with signed power purchase agreements power producers or IPPs), by utilities, or amount to approximately 5,800 MW of ad- by income funds. The electricity is sold to ditional wind energy capacity by 2013. All utilities by means of a PPA or, as in the case provinces either have wind energy targets of deregulated markets such as in Alberta, or RFPs in place or being planned, with it is sold on the spot market. In some juris- a total of at least 10,000 MW of installed dictions, including in Québec and British capacity by 2015 (see Section 4.0 for list of Columbia, a call for tenders is issued so initiatives).

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Figure 3 Cultus and Frogmore wind farms (19.8 MW) in Norfolk County, Ontario. Source: Stewart C. Russell 2008. provincial utilities can obtain the electricity and May and reduce wind energy produc- at the best rate. tion substantially. In addition, icing can be a The main constraints for wind energy safety concern and also negatively impacts development in Canada are the lower cost the fatigue properties of turbine materi- of conventional energy, a surplus of genera- als. Cold air temperatures also increase tion capacity in many areas, and a lack of loading on turbines due to increased air transmission capabilities in areas with prom- density. Components such as the gearbox ising wind potential. Another constraint is and generators are affected by the resulting Canada’s weather. Wind turbines installed increased power output. at high elevations are affected by rime ice. To reach its full potential, the Cana- Icing can occur anytime between October dian wind energy industry will also have to overcome the following barriers:

92 2008 Annual Report Canada

• While no fuel cost is associated with The lack of grid transmission availabil- wind energy, the cost of wind power ity can be a problem in regions where the is still higher than the current cost of wind resource is promising but grid capac- electricity from conventional sources ity is inadequate. This is particularly the case of energy in Canada. in Southern Alberta where wind projects • Wind energy is a variable source of have been developing at a fast pace but the electricity. As a result, local wind in- accessibility to the one transmission line is stallations cannot be relied on for base limited. Recently, a 900 MW cap limit for load requirements, posing challenges to wind was lifted but development in increas- electricity generation and transmission ing grid capacity has been slow. system operators. Canada also has more than 300 off-grid • Although wind energy is a clean remote sites that could benefit from the technology, it is not completely free integration of wind on diesel mini-grids. of environmental effects such as visual Demonstration projects in the past have not impacts, noise pollution, and potential been very successful but there is a renewed effects on wildlife such as birds and interest to develop the market. bats. Community acceptance of wind projects depends on these challenges 3.2 Industrial development and being addressed. operational experience • Codes and standards need to be de- 3.2.1 Industry development and structure veloped for local interconnection and The Canadian industry is composed mainly safety issues. These are usually harmo- of companies that manufacture wind-relat- nized with international standards and ed components such as rotor blades, con- should be adapted to ensure Canadian trol systems, inverters, nacelles, towers, and conditions are addressed. Canada is meteorological towers. The rapid growth of currently involved in updating the fol- Canada’s wind energy industry has resulted lowing wind energy standards: in a growing number of firms entering the • Design Requirements market, resulting in increased activity in a • Small Wind Turbine Design variety of areas including resource assess- Requirements ment, project development, manufacturing, • Acoustic Noise Measurement construction, and operations. In fact, the • Power Performance Testing Canadian Wind Energy Association’s (Can- • Lightning Protection. WEA) corporate membership has grown from 86 members to about 400 members The issue of variability does not yet over the last five years. This growth has appear to be a major problem for most had an impact on the Canadian economy regions of Canada, namely because of the in terms of job creation, direct investment, wide availability of hydropower facili- contribution to Gross Domestic Product ties, which can act as energy storage, and (GDP), and induced benefits. because wind energy is still only a small A recent survey by Insightrix (2) fraction of the total electricity production. commissioned by CanWEA, shows that Hydro-Québec, however, is addressing the the Canadian wind industry consists of issue of variability by accounting for a ‘bal- a wide variety of organizations. Among ancing fee’ in the cost structure of its supply the respondents, 66 companies (30% of of wind-generated electricity. For levels of the total) identified their primary activ- penetration higher than 20%, more sophis- ity as wind power development. A further ticated network management strategies will 49 companies (22%) identified themselves be needed. These issues are now being ad- as wind energy consultants, 19 (9%) indi- dressed in Europe, and Canada could ben- cated that they are accessory equipment efit from Europe’s experience.

IEA Wind 93 National Activities manufacturers, and another 14 (6%) identi- Canadian Industries is manufacturing wind fied themselves as wind turbine manufac- towers in Saskatoon, Saskatchewan. AAER turers. The industry remains largely Cana- has started a blade and tower manufacturing dian and based in the private sector, with unit in Bromont, Québec and the company 74% of respondents indicating that they are shipped its first turbine in December. AAER privately-held companies, and 77% indicat- Systems has licensed Fürhlander and Ameri- ing that their head offices are in Canada. can Superconductor Corp. to manufacture There is some diversity in terms of scope of complete turbines ranging from 1 to 2 MW. project activity: 43% indicated that their or- Also, in May, Hydro-Québec announced ganizations’ scope of operations is “interna- that Enercon and RePower were the win- tional,” another 30% indicated “provincial ning manufacturers of the second wind en- or regional,” while 22% are “national.” ergy RFP process in the province’s history. It is expected that these two manufacturers 3.2.2 Manufacturing will establish facilities in the province to ad- As shown above, the Canadian industry dress the regional content requirements. is mainly comprised of developers that are From the Insightrix survey (2) , of the backed by large energy firms, industrial 19 companies who are primarily involved corporations, and income funds that bring in accessory manufacturing, six companies with them financial resources and commer- manufacture electrical components, five cial credibility. SaskPower and other leaders companies produce wind turbine towers, such as TransAlta, Suncor, and Canadian three companies manufacture monitoring Hydro Developers have significant opera- devices, and the remainder produce other tions behind them. Large energy related accessories. Of the 14 companies primar- firms, such has TransCanada with Cartier ily involved in turbine manufacturing, six Wind Energy Group, Epcor, Nexen, and manufacturer turbines of more than 300 Brookfield Power have created subsidiary kW capacity, six manufacture turbines with power firms to develop wind projects. In- a capacity between 20 kW and 300 kW, and ternational firms such as Airtricity, Suez another three manufacture turbines with a Renewable Energy, and Acciona/EHN capacity of less than 20 kW. have purchased shares in companies and The small wind turbine manufacturers projects. This phenomenon points to the are comprised of the following: continuing role of major energy companies • Wenvor Technologies, Énergie PGE, in the growth of the industry and the chal- and Vergnet Canada are developing lenge and increased competition ahead for small wind turbines in the size range of existing market leaders. 10 to 30 kW. Canada is still in the early stages of de- • Entegrity Wind Systems Inc., Verg- veloping a local manufacturing industry. As net Canada, Wind Energy Solutions, a result of the two Québec RFP processes, Cleanfield Energy, and Atlantic Orient GE Wind Energy has contributed to estab- Canada Inc. are offering turbines in the lishing facilities in the province to enable size range of 50 to 250 kW. up to 60% of wind turbine components In addition, several companies are to be manufactured and assembled locally. proposing small wind turbines that are at LM Glasfiber has installed a blade-manu- various stages of development. Some of the facturing unit in the Gaspé region, and in designs feature a vertical axis. The Wind Matane, Marmen is manufacturing tow- Energy Institute of Canada has begun testers and Composites VCI is manufacturing ing the small turbines that were selected nacelles. Elsewhere, DMI Industries (U.S.) following an RFP process completed in acquired a manufacturing plant in Fort Erie, December 2007. The turbines being con- Ontario, to expand its heavy steel wind sidered under this program have a capacity tower fabrication operations and Hitachi of not more than 100 kW.

94 2008 Annual Report Canada

3.3 Economic details lines by providing a fixed-price tariff for No fuel costs are associated with wind en- clean energy projects less than 10 MW in ergy; therefore, capital, operating, and main- capacity. tenance costs largely determine generation According to the survey by CanWEA costs. Recent calls for tenders and RFPs referenced above, Canada’s wind energy have shown that the capital costs to install industry contributed 1,490 million CAD wind farms in Canada range from 1,800 to the country’s GDP in 2006, which is to 2,200 CAD/kW, while the generation double the impact in 2005. That same year, costs are estimated to be between 0.075 there were 3,340 full-time equivalent jobs and 0.12 CAD/kWh. For example, pro- in the wind energy industry, an increase of vincial calls for power in British Columbia, 178% over 2005. This reflects the intense Ontario, and Québec, and the Renewable activity carried out in 2006, a record year of Portfolio Standard (RPS) in Prince Edward installation for wind. Island resulted in electricity prices from The credit crisis of 2008 is also affect- wind energy in the range 0.0775 to 0.096 ing wind energy in Canada. Wind farms CAD/kWh. In most cases, the latest price are projects that by nature require a massive proposals have shown the highest prices. influx of capital. Promoters are affected by The primary variables associated with this the tightening in the credit markets and cost range are the cost of the wind turbines this delays the completion of projects. This themselves, the quality of wind resources, could have a significant impact in 2009. transmission connection fees, the scale of operation, and the size of turbines. 4.0 National Incentive Programs Although the cost of wind power has Since 2002, the most influential market declined steadily in the past 20 years, recent stimulation instrument had been the federal cyclical factors in effect until mid-2008 (the government’s incentive programs (WPPI ongoing boom in prices for commodities and ecoENERGYRP) for wind energy such as steel and oil, variations in currency developers. Qualifying wind energy facili- exchange, and shortages in wind turbine ties received an incentive payment of 0.01 supply due to a sudden increase in world CAD/kWh of production. The incentive is and U.S. demand) have led to an increase in available for the first ten years of produc- capital costs of approximately 20%, mitigat- tion and helps to provide a long-term stable ed slightly by the strength of the Canadian revenue source. dollar against the U.S. dollar. Furthermore, The 14-year ecoENERGY for Renew- the current economic crisis has made in- able Power program will invest close to 1.5 vestors nervous, which in turn has resulted billion CAD to increase Canada’s supply in an increase in the cost of debt. Thus, in of clean electricity from renewable sources Canada, wind power is still more expensive such as wind, biomass, low-impact hydro, than electricity generated by conventional geothermal, solar photovoltaic, and ocean sources, and federal and provincial support energy. The objective of the ecoENERGY is still needed to close the price gap. for Renewable Power program is to help Canada has also experienced an in- position low-impact renewable energy increase in the size of wind farms, especially dustries to make an increased contribution in provinces with existing wind installa- to Canada’s energy supply, thereby contrib- tions. This is mainly because smaller projects uting to a more sustainable and diversified (less than 50 MW) can cost from 10% to energy future. The program will provide the 30% more because of economies of scale. same production incentive of 0.01 CAD/ This trend may be reversed in regions kWh for up to 10 years for electricity where a focus on decentralized generation generated from eligible renewable energy is made, such as in Ontario, which intends projects commissioned between 1 April to attract new capacity on its distribution

IEA Wind 95 National Activities

2007 and 31 March 2011. The program will governments working directly with indus- encourage the production of 14.3 TWh try have supported a better understand- of new electricity from renewable energy ing of the wind resource in Canada. The sources, enough electricity to power ap- Canadian Wind Energy Atlas developed proximately one million homes. by the Meteorological Service of Canada In another incentive, Class 43.1 and (MSC) of Environment Canada is now well 43.2 of the federal Income Tax Act provide established and is used by most developers an accelerated rate of write-off for certain in pre-siting their projects. The provinces capital expenditures on equipment that of B.C., Ontario, Quebec, PEI, and New is designed to produce energy in a more Brunswick have also produced their own efficient way or to produce energy from wind atlases, often using the database gener- alternative renewable sources. In 2007, the ated by the Canadian Wind Atlas to provide tax write-off was increased from 30% to maps with greater resolution. The Alberta 50% per year on a declining-balance basis. Electricity System Operator with CanWEA In addition, the Canadian Renewable and has started a one-year pilot project to pro- Conservation Expense (CRCE) category vide wind data to a centralized forecasting in the income tax system allows the first service. Industry is also developing its own exploratory wind turbines of a wind farm commercial forecasting services. to be fully deducted in the year of its installation or transferred to investors using flow- 5.0 R, D&D Activities through share financing. 5.1 National R, D&D efforts Provincial governments provide market The fiscal year 2008/2009 budget for the stimulation through an array of initiatives. Wind Energy R&D (WERD) group at Request for Proposals are a popular method Natural Resources Canada (NRCan) was of allowing market participants to bid and about 3 million CAD, with contributions of compete for a specific wind capacity target. about 2.5 million CAD from contractors, Some provinces, notably Nova Scotia and research institutions, and provinces. The Prince Edward Island, have implemented focus of the Canadian national wind energy Renewable Energy Standards, similar to R&D activities continues to be the devel- Renewable Energy Portfolios, where the opment of safe, reliable, and economic wind government legislates that a designated per- turbine technology to exploit Canada’s centage of the provinces’ electricity capacity large wind potential, as well as supporting is sourced from wind energy. North Ameri- field trials. ca’s first Standard Offer Program, or feed-in NRCan also supports a recently tariff program, was launched in Ontario in formed national wind institute. Since 1981, late 2006. Through this program the On- the Atlantic Wind Test Site (AWTS), located tario government establishes a fixed price in North Cape, PEI, has been Canada’s for production from various renewable primary facility for wind turbine testing, energies, including wind, and allows the technical innovation, and technology trans- market to determine the amount produced. fer. The national Wind Energy Institute Ontario’s program aims to reduce the bar- of Canada (WEICan) evolved from the riers for small renewable generators, and is regionally-based AWTS, and focuses on therefore limited to projects under 10 MW. four strategic areas: testing and certification, Table 2, compiled by CanWEA, shows the research and innovation, training and public wind objectives and level of commitment education, and technical consultation and from each province. assistance. WEICan supports the develop- In parallel, various agencies are work- ment and implementation of wind power ing to provide tools needed by industry to generation and wind energy products address the market created by these incen- and services for Canada and export mar- tives. The federal government and provincial kets. It has signed an exclusive framework

96 2008 Annual Report Canada

Figure 4 Mount Miller wind farm in Murdochville, Québec. Source: Antoine Lacroix 2005.

agreement with Deutsches Windenergie- the extraction of wind energy. NRCan has Institut (DEWI) in order to provide the supported the Corus Centre through the North American wind industry with Type acquisition of scientific material. Testing services. Type Testing is undertaken NRCan’s WERD group continues to in order to demonstrate a turbine’s power support new technology development ac- performance and is typically comprised of tivities related to: safety tests, load and power performance • Small wind turbines (< 300 kW), measurements, as well as static and fatigue including the testing of turbines con- blade tests. nected in single-phase for net-meter- In the province of Québec, the Wind ing applications, verifying electricity Energy TechnoCentre, as part of a col- production, reliability of system com- laborative effort involving several Québec ponents, and ability to withstand the universities closely connected to the wind Canadian climate energy industry, has set up the Corus Cen- • Large wind turbines (>300 kW), tre. Located in Murdochville, on the Gaspé including the support of market infra- Peninsula, the Corus Centre is an organiza- structure for large wind technologies tion dedicated to research, development, through the development of industry and the transfer of technology mainly in the standards and planning aids such as the area of wind turbine operation in cold cli- Canadian Wind Energy Atlas, a tool mates. It is surrounded by two wind farms that identifies areas best suited for wind with a total capacity of 108 MW (Figure 4). power This location makes the research center a • Wind energy in cold climates, partic- unique natural laboratory in which to study ipating in a wind energy R&D project the impact of the Nordic environment on in the Northwest Territories. Turbines

IEA Wind 97 National Activities

Table 2 Federal and provincial objectives for wind energy Jurisdiction Initiative Status Federal Announced the ecoEnergy for The program was not expanded Renewable Power program in or extended in the 2009 federal January 2007 to support the budget. It is anticipated that all deployment of 4,000 MW of remaining funds will be allocated renewable energy between 2007 by Fall 2009. and 2011. .

British Government aims to achieve 325 MW of wind energy contracts Columbia energy self-suffi ciency by 2016. in place. BC Hydro Call for Clean 50% of new generation to come Power in 2008 sought 5,000 GWh from clean energy sources (no and received 17,000 GWh in bids. specifi c wind energy target).. Results of process expected in early 2009. Alberta There is currently no provincial Alberta was the fi rst jurisdiction target. in Canada to pass 500 MW of installed wind energy capacity. Now designing transmission upgrades to connect 3,000 MW of wind in southwestern Alberta. Saskatchewan Provincial energy plan seeks to 171 MW currently in place. have 300 MW of wind energy in Saskatchewan by 2011. Manitoba Manitoba government seeking Currently 104 MW in place. 1,000 MW of wind energy by Manitoba Hydro has announced 2016. that it is pursuing a contract for an additional 300 MW. Ontario The Ontario Power Authority’s 782 MW currently in place, with Integrated Power System Plan almost 400 MW of additional wind called for 4,600 MW of wind energy projects currently under energy by 2020. IPSP is currently construction. In January 2009, being revised following a OPA announced contracts for Ministerial six new wind energy projects in directive. New Green Energy Act Ontario totaling 492 MW. expected to be announced in March 2009.

Québec Québec government seeking 531 MW currently in place and 4,000 MW of wind energy by nearly 3,000 MW contracted. 2015 500 MW of new Requests for Proposals for First Nations/ Municipalities to be issued in 2009. New NB Power seeking 400 MW of 96 MW currently in place. 300 MW Brunswick wind energy by 2016. of additional contracts announced in 2008.

98 2008 Annual Report Canada

Nova Scotia The Renewable Energy 59 MW currently in place. If all Standards (RES) put in place by wind capacity, the RES will require the government of Nova Scotia some 210 MW of additional wind require that 5% of the total Nova capacity by 2010 and a total of Scotia electricity requirement some 510 MW of additional wind be supplied by new (post 2001) capacity by 2013. renewable energy sources by 2010, rising to 10% by 2013. Prince Edward Government target of installing 72 MW of wind energy already in Island 500 MW of wind power by 2013. place. Exploring opportunities to bring more wind energy onto the grid. Newfoundland Target of 80 MW of wind energy 27 MW currently in place and a on the island of Newfoundland further 27 MW contracted. and exploring wind development potential in Labrador. Source: Canadian Wind Energy Association Web site, February 2009.

will be instrumented to document the industrial benefits address the government’s performance of the system in Arctic goal of “Providing Effective Economic conditions and monitor several param- Leadership for a Prosperous Future.” Taken eters. In addition, foundations will also together, these two goals support Canada’s be instrumented to observe and moni- strategy for GHG reductions, and address tor the behavior of concrete founda- energy, economic, and environmental pri- tions in permafrost orities of Canadians. • Offshore wind, laying the ground- The TRM comprises six workgroups work for development on the Great that are: Lakes through research on the behav- • Market and Economics ior of the wind resource, on the tools • Wind Energy Resources that can be used to assess the resource, • Wind Energy Systems – Large Wind and through participation in projects Turbines and Components to assess the impacts of offshore wind • Wind Energy Systems – Small Wind development. Turbines NRCan is currently involved in the • Wind Energy Integration – Planning development of a wind energy technology • Wind Energy Integration roadmap (TRM). A key objective of this – Operations. TRM is to identify the priority areas for stakeholders, both the technology provid- The TRM deliberations will take place ers and technology adopters or ultimate over three one-day meetings to be held in users. The goal is to determine investment three different cities across Canada. The first areas in research and development required meeting took place in November 2008 in to achieve overall (social, environmental, Montreal. The other meetings are planned and technological) cost reductions, and infor Toronto and Vancouver in early 2009. creased Canadian industrial and economic NRCan is one of the sponsors of the benefits. Reducing the cost will increase Canadian Wind Energy Strategic Network the deployment of wind energy in Canada, (WESNet). WESNet is the first network addressing the government’s goal of increas- of its kind in Canada and is comprised ing the contribution of renewable energy to of leading Canadian wind energy re- Canada’s energy supply. Increased Canadian searchers from 16 universities, working in

IEA Wind 99 National Activities collaboration with 15 contributing partners minimum regional manufacturing content from Canadian industry, wind institutes, and have contributed to the inception of a wind government. WESNet will realize its vision industrial base in Canada. Some provinces and achieve its objectives through a research have required a portfolio share for wind program organized into four wind energy electricity or have found other means to theme areas, led by internationally recog- encourage wind development. nized Canadian researchers. In the past, cost reductions have come • Theme 1 Wind Resource Assessment about mainly through a combined effort on • Theme 2 Wind Energy Extraction improved design and manufacturing. This • Theme 3 Wind Energy in Power has led to the development of a growing Systems sustainable market serviced by large, global- • Theme 4 Techno-Economic Mod- ly competitive, mostly European companies eling and Optimization of Wind that have the means to fund R&D and im- Energy Systems. prove products and manufacturing methods. Another key to cost reduction has been 5.2 Collaborative research better siting of wind turbines and wind Canada participates in the following tasks farms; this is directly dependent on better of the IEA Wind R&D Implementing knowledge of the geographical distribution Agreement: of the wind resource. The development of • Task 11—Base Technology the Canadian Wind Energy Atlas and the Information Exchange development of detailed provincial wind at- • Task 19—Wind Energy lases are providing assistance in this area. in Cold Climates Technology and standards development • Task 25—Design and Operation of will emphasize adaptation of international Power Systems with Large Amounts standards to the Canadian context and re- of Wind Power. mote communities. For example, NRCan is currently supporting the demonstration of a Canada participates in the International wind-hydrogen-diesel system for a remote Electrotechnical Commission’s technical community in the province of Newfound- committee TC88 on Wind Turbines. land. Canada will continue to maximize information exchange with national and 6.0 The Next Term international collaborators through renew- Although a sustained effort is required to able energy technology networks, such as address both technical and non-technical the IEA’s Wind Implementing Agreement, issues, cost of generation in Canada remains the Wind Energy Institute of Canada, and the most important barrier to increased through a newly formed network of Cana- wind deployment. Since wind is not yet dian university researchers. cost competitive with more traditional Canada will pursue its valuable work sources of electricity in Canada, incentives quantifying and qualifying wind resources will still be required in the next few years through continued work with onshore and to sustain the actual growth rate of com- offshore resource assessment and forecasting mercial turbine installations. The federal tools. wind incentive by itself is insufficient to Environmental impact and mitigation bridge the cost gap, but it has provided studies are shedding new light on turbine partial funding along with a stable plan- interactions with wildlife as well as noise ning framework for both industry and the and radiofrequency interference assessment provinces. This has made a difference, and and mitigation. the Canadian wind market is now grow- Interest in offshore wind projects in ing rapidly. Provincial initiatives requiring Canada is growing, with the West coast and

100 2008 Annual Report Canada

Great Lakes being considered the first areas Canada in 2006, A Summary of Results to be developed. of the 2007 Annual Survey of CanWEA Members, Insightrix 2007. References: (1) Energy Statistics Handbook 2007 Author: Antoine Lacroix, NRCan, File: 57-601-X Canada. (2) CANSIA: The Economic Con- tribution of the Wind Energy Industry to

IEA Wind 101 National Activities

102 2008 Annual Report Chapter 14 1.0 Introduction Approximately 17% of Denmark’s energy Denmark supply came from renewable sources in 2008, and the production from wind tur- 1.1 Installed capacity and bines alone corresponded to 19.3% of the production in 2008 domestic electricity supply. Another 20% The capacity of wind power in Denmark of energy supplies came from natural gas increased by 39 MW in 2008, bringing the and 23% from coal. Dependence on oil total up to 3,163 MW. The total number has been about 40%. of turbines was reduced to 5,101. During The installation of new wind power 2008, 51 new wind turbines were installed, capacity in Denmark has been low during and 164 turbines were decommissioned. the past years. In 2008, the net capacity The average capacity of those installed in installed was 38.9 MW, with 77.6 MW of 2008 was 1.52 MW, but excluding a num- new wind generation installed, and 38.7 ber of small turbines under 55 kW, the MW removed. The key statistics for 2008 average was nearly 2 MW. A detailed his- are shown in Table 1. tory of installed capacity and production in The Danish government has con- Denmark can be downloaded at the Danish tinued the energy policy introduced in Energy Agency Web site (www.ens.dk) (1). 2006 which was based on the Strategy As shown in Table 1 and Figure 1, elec- 2025, published June 2005 (2), and later tricity from wind energy covered 19.3% of followed by A Visionary Danish Energy the electricity consumption in Denmark in Policy 2025, published 19 January 2007 2008 compared to 19.9% in 2007. The total (3). This policy includes initiatives that electricity production from wind energy emphasize globalization and the improved in 2007 was 6,975 GWh, a decrease from use of renewable energy sources, includ- the unusually high value of 7,171 GWh in ing stronger support for energy research, 2007 due to high wind. development, and demonstration. The largest onshore turbine installed At the end of 2007, the Danish gov- in Denmark by the end of 2008 was one ernment established a new Ministry for 3.6-MW Siemens Wind Power turbine. Climate and Energy to strengthen efforts Other sites with large turbines include to abate climate change and to prepare for three Vestas 3-MW turbines on the Island the Climate Summit COP 15 in Copen- of Lolland, two Vestas 3-MW turbines in hagen in 2009.

Table 1 Key Statistics 2008: Denmark Total installed wind generation 3,163 MW New wind generation installed* 38.9 MW Total electrical output from wind 6.975 TWh Wind generation as % of national electric 19.3 % demand** Target*** Not speciﬁ ed for wind * 77.5 MW installed; 38.7 MW removed ** In 2008 the wind index was 100% *** Target for Renewable is 20% in 2011 of gross energy consumption.

IEA Wind 103 National Activities

Figure 1 Danish wind power capacity and its share of domestic electricity supply (1).

Frederikshavn, and five 2.75-MW turbines 22,000 full load hours + 0.023 DKK/ at the Tjaereborg site near Esbjerg. kWh in balancing costs The two largest offshore wind farms • Turbines under the repowering are still the 160-MW offshore wind farm scheme shall be given an extra fixed at Horns Rev (80 Vestas 2-MW wind tur- supplement of 0.08 DKK/kWh for the bines placed in the North Sea 14 km to 20 first 12,000 full load hours km offshore Blaavands Huk), and the wind • Municipalities shall secure reservation farm at Nysted (Roedsand I) south of Lol- of land for 75 MW of wind turbines in land in inland waters (72 Bonus 2.3-MW each of the years 2010 and 2011 wind turbines). • Allocation of 10 million DKK to a guarantee fund for supporting financ- 2.0 Progress Toward ing of local mill guilds’ preliminary National Objectives studies, etc. A new February 2008 Agreement on Dan- • A compensation scheme to ensure ish energy policy for the years 2008-2011 neighbors of new wind turbines re- (4) includes better terms for wind turbines ceive compensation for loss of property and other sustainable energy sources such value due to the installation. Compen- as biomass and biogas. The initiatives in the sations shall be paid by wind turbine agreement combine policy regulation and owners in connection with installation market mechanisms. With an aim to real- of the turbines. The object of com- izing its vision, the agreement has set the pensation responsibility shall be based following targets and initiatives relevant to on the ordinary principle of the right renewable energy and wind power: to compensation, including a concrete • The goal for the renewable energy individual evaluation of the loss of share of gross energy consumption is property value 20% in 2011 • Invitations to tender for two 200 • The subsidy to the central power MW offshore wind farms to come into plants’ biomass-based electricity pro- operation in 2012 duction shall be increased from 0.10 to • All new and existing biogas plants 0.15 DKK/kWh. shall be subject to a fixed electric- • The subsidy for new wind turbines ity price of 0.745 DKK/kWh or a shall be raised to 0.25 DKK/kWh for fixed-price premium of 0.405 DKK/

104 2008 Annual Report Denmark

kWh when biogas is used along with As reported in 2007, the Danish Energy natural gas. The fixed electricity price Authority made a plan for sites for the next and price premium shall be adjusted by generation of offshore wind farms between 60% of the increases in the net price 2010 and 2025. Three committees have index finished their reports on layout and plans • A pool of 30 million DKK over two for future Danish offshore wind turbine de- years for information campaigns, label- velopment, sites for future onshore turbines, ing of efficient heat pumps, limited and sites for testing new industrially devel- subsidy schemes, etc. aimed at heat oped turbines (0-series) by manufacturers consumers outside the areas of district and developers. heating In April 2007, the Danish Energy • 25 million DKK/year for four years Authority published the report: Future shall be allocated to small renewable Offshore Wind Turbine Locations – 2025 energy technologies such as solar cells (4), where the offshore committee charted and wave power a number of possible areas where offshore

• CO2 taxes shall be raised from 3 to turbines could be built with an overall ca- 90 DKK/ton CO2 to the expected pacity of some 4,600 MW, which can gen- CO2 quota price, which for 2008-2012 erate approximately 18 TWh, or just over is provisionally estimated at 150 DKK/ 8% of energy consumption in Denmark. ton This corresponds to approximately 50% of

• A new NOx tax of 5 DKK/kg ef- the Danish electricity consumption. The fective from 1 January 2010 for par- committee examined in detail 23 specific 2 tial fulfillment of the Danish NOx possible locations, each of 44 km , for an obligation overall area of 1,012 km2 divided into seven • A significant increase in funding of offshore areas. research, development, and demon- The completed and planned offshore stration in energy, in order to increase wind developments in Denmark are shown the overall publicly financed effort to in Figures 3 and 4. a total of 750 million DKK in 2009 and to one billion DKK per year from 2.1 Horns Rev II 2010. The offshore wind farm Horns Rev II is to be located about 10 km west of the exist- To reach the goals mentioned above and ing wind farm at Horns Rev (Figure 5). fulfill the February 2008 Agreement, several Construction of the wind farm will start in priorities were set. These include additional 2008, and will cover a total area of about 35 support for R, D&D in fuel cells, develop- km2 when it is commissioned during 2009. ment of second-generation bio-ethanol Energinet.dk is responsible for extend- production, and promotion of new research ing the electricity grid to the wind farm. in wind energy and other renewables. Infor- The energy company DONG Energy will mation about the Danish wind energy policy own and build the farm. The price to be can be downloaded from the Danish Energy paid for the electricity was negotiated with Agency Web site (www.ens.dk). the government, and is set to 0.518 DKK/ Based on the initiatives already taken, kWh for the first 50,000 full-load hours, the Danish government expects that 1,300 which corresponds to about 12 years of MW of new wind power capacity will be electricity production. The wind farm will installed by 2012 (Figure 2). This additional consist of 91 2.3 MW Siemens turbines on capacity could potentially cover another monopiles. The turbines are sited in a fan 12% of total electricity consumption, thus formation with 13 rows going from East to bringing the total contribution to electrical West and with seven turbines in each row. demand to over 30%. The site also gives room for three large test

IEA Wind 105 National Activities

Figure 2 Approved and planned onshore and offshore capacity up to 2012 (4).

1. Vineby 11 windturbines, 5 MW 1991 2. Tunø Knob 10 windturbines, 5 MW 1995 3. Middelgrunden 20 windturbines, 40 MW 2000 4. Horns Rev 1 80 windturbines, 160 MW 2002 5. Rønland 8 windturbines, 17 MW 2003 6. Nysted 72 windturbines, 158 MW 2003 7. Samsø 10 windturbines, 23 MW Figure 3 Locations, composition, and com- 2003 missioning dates of offshore wind farms in 8. Frederikshaven 4 windturbines, 10.6 MW Denmark (5). 2003 9. Horns Rev II 95 windturbines, c. 200 MW 2009 10. Rødsand II 92 windturbines, c. 200 MW 2010

106 2008 Annual Report Denmark

Figure 4 Potential locations for offshore wind farms (5). turbines with a total capacity of 15 MW. 2.3 Djursland/Anholt The distance from the shore (Blåvands In the Energy Policy Agreement of Febru- Huk) is 30 km. The water depth in the area ary 2008, it was decided to call for tender is between 6 and 18 m. for two 200-MW offshore wind farms to come into operation in 2012. Later in the 2.2 Roedsand II year it was agreed to locate a 400-MW E.ON Sverige AB has won the public ten- offshore wind farm between Djursland and der for an offshore wind farm at Roedsand. Anholt (Figure 7). DONG Energy Roedsand II A/S also Following experience with previ- turned in a bid for establishing the 200 ous tenders for offshore wind farms in MW offshore wind farm south of Lolland, Denmark, the Danish Energy Agency has but E.ON offered the lowest price (0.629 adjusted the tendering procedure, which DKK/kWh for 50,000 peak load hours) was used for the tenders for Roedsand II and thereby won the tender process. and Horns Rev II. This means that the 400 The offshore wind farm Roedsand II MW Djursland/Anholt offshore wind farm will be able to supply 200,000 households will first undergo site development before with electricity, which accounts for around being opened for public tenders. The Dan- 2% of the Danish power consumption. The ish TSO, Energinet.dk, is responsible for wind farm will cover an area of 35 km2 the site development, which already has and will be placed around 3 km West of the commenced. existing offshore farm at Roedsand (Figure The Danish Energy Agency expects 6). The farm will supply the grid with elec- to offer the 400 MW farm for tender in tricity by 30 September 2011 at the latest. the first half of 2009 while the preliminary

IEA Wind 107 National Activities

Figure 5 Site and layout of Horns Rev I and II (6).

Figure 6 Deﬁ nition of the pre-investigation area, base-case scenario, toponomy, distance to Nysted Offshore Wind Farm, and distance to Hyllekrog, Nysted, and Gedser (7).

108 2008 Annual Report Denmark investigations are still being carried out. of the area will be presented by En- The tendering procedure will end when erginet.dk. These include for example, the EIA consultation procedure is over, analyses of geotechnical surveys, the which is expected to be in the first half of environment, and sailing/navigation. 2010. The winner of the tender will then Tenders will have access to these re- be awarded a concession, permission for sults. All communication concerning preliminary investigations, and permission these results must be in writing and to establish the farm, after which the main will be accessible for all possible ten- contractor can finalize contracts and start ders simultaneously. the detailed planning. • The Danish Energy Agency will sub- The adjusted model for the tendering mit the EIA report for a broad public procedure of the 400-MW farm at Djurs- consultation. land/Anholt is also characterized by the following factors: 3.0 Benefits to National Economy • The environmental impact (EIA) re- 3.1 Market characteristics port will include the proposed sites for The sale of wind turbines from Denmark the farm and proposals for alternative in 2008 is estimated to about 7 GW. As it is sites. The sites will be mapped as early noted above, the Danish home market was as possible during the process. a low contributor to these sales in 2008. • The results of the ongoing analyses Therefore, nearly all turbines manufactured

Figure 7 Map of investigation area (the box) between Anholt and Djursland. O and P are suggested sites from the Follow up to Future Offshore Wind Power Sites -2025 (8).

IEA Wind 109 National Activities were exported and contributed approxi- wind, the availability of turbines on the mately 40 billion DKK to the national small near-shore farms is also high. Since economy in 2008. The two large wind 2005, all Horns Rev offshore turbines oper- turbine manufacturers, Vestas and Siemens ated at nearly 100%, with an availability of Wind Power, together had a world market 95% to 97%. During the same time period, share of about 25%. It is estimated that the Siemens (Bonus) turbines at Nysted more than 25,000 people are employed in were at the same level except for the three the Danish wind industry. month period in 2007 where the main The market for onshore wind power transformer was out of order. in Denmark in 2008 was characterized by a high electricity purchase price based on 3.3 Economic details the market-based price plus a premium No new data on operation and mainte- of 0.25 DKK/kWh for 22,000 full-load nance costs (service, consumables, repair, hours. insurance, administration, lease of site, and Offshore, the future market will be so on) have been reported. Growing com- driven by political decisions based on the mercialization in the wind energy market plan described above. makes it more difficult to have data on hardware and O&M costs. The information 3.2 Industrial development and from a study by the Danish Wind Turbine operational experience Owners’ Association about O&M for tur- Today, the major Denmark-based manufac- bines between 600 kW and 1,300 kW was turers of large commercial wind turbines up reported in the 2004 IEA Wind Energy An- to a size of some MW are Siemens Wind nual Report. Power (formerly Bonus Energy A/S) and Vestas Wind Systems A/S. Only one com- 3.4 Certification of pany, Gaia Wind Energy A/S (owned by wind-power installations Mita Teknik A/S), currently produces wind Wind turbines installed in Denmark must turbines for households, but a couple of fulfill the Danish Wind Turbine Certifica- small companies are planning to produce or tion Scheme. The scheme is based on the import micro-turbines. IEC WT01 System for Conformity Test- The most important suppliers of major ing and Certification of Wind Turbines. In components for wind turbines are still LM June 2008, a supplementary set of rules for Glasfiber A/S, a leading producer of com- maintenance and service of the turbines posite blades for wind turbines; Mita Teknik was implemented. Wind turbine owners A/S, which produces controller and com- must now ensure that the wind turbines are munication systems; and Svendborg Brakes maintained and serviced by a certified or A/S, a leading vendor of mechanical brak- approved company, as long as the wind turing systems. bines are in operation. Further, the service The 3-MW turbines are still the largest company must have documented sufficient commercial turbines installed in Denmark. basis, experience, and expertise in main- As a result of experiences at Horns Rev tenance and service of the specific type of and the problems with the 3-MW turbines, wind turbine that they are contracted to Vestas has made a strong effort to improve maintain. All documents related to the cer- the quality of its offshore wind turbines, tification scheme can be found on the Web and the 3-MW turbines are once again for site: www.wt-certification.dk. sale to offshore projects. The technical availability of new wind 4.0 National Incentive Programs turbines on land in Denmark is usually in In 2008, the subsidy for new wind tur- the range of 98% to 100%. For offshore bines was increased from a premium of

110 2008 Annual Report Denmark

0.10 DKK/kWh on the top of the market Research’s (DCSR) Programme Com- price for 20 years to a premium of 0.25 mittee on Energy and Environment DKK/kWh for 22,000 full load hours plus • The Danish National Advanced 0.023 DKK/kWh for compensation for Technology Foundation. balancing costs, etc. For turbines under the repowering scheme there is an extra fixed Grants to wind energy projects sup- supplement of 0.08 DKK/kWh for the first ported in 2007-2008 totalled 63 million 12,000 full-load hours. DKK. From 2009, owners of new turbines Funding of energy R, D&D was in- shall pay neighbors compensation for loss creased in 2006 and again in 2007 and of property value due to the installation. 2008, as shown in Figure 9. The funding Compensation shall be paid in connec- will increase to about 750 million DKK tion with installation of the turbines. The in 2009 and about 1 billion DKK annu- object of compensation responsibility shall ally from 2010. The trend in public fund- be based on the ordinary principle of the ing for energy research and technological right to compensation, including a concrete development is shown in Figure 8. Funds individual evaluation of the loss of property are available under the annual Finance Act value. Details about the incentive system for and Public Service Obligation funds (PSO), turbines installed before the end of 2004 which Energinet.dk as TSO is entitled to and in the years 2005-2007 can be found at collect from the electricity users under www.ens.dk. the Danish Electricity Supply Act and apply toward research in environmentally 5.0 R, D&D Activities friendly electricity generation and efficient The annual report: Energy 2008 on pub- energy use. lic grants from the energy research pro- The development of the funding for grammes (9) provides overviews of projects wind energy is illustrated on figure 9. that were funded, in progress, and completed under the following research programs: 5.1 EUDP • The Energy Development and Dem- In 2008, the former ERP was replaced by onstration Program (EUDP) including the EUDP. Additionally, the National Re- Energy Agency’s Energy Research search Councils and the newly established Program (ERP) and Nordic Energy High Technology Foundation may also pro- Research (NEF) vide funds for energy research. The Danish • Energinet.dk’s ForskEL program and Energy Authority is responsible for the ForskNG program administration according to the regulation • The Danish Council for Strategic of the new EUDP, which covers research

Figure 8 Funding for energy research and technological development, million DKK (9).

IEA Wind 111 National Activities

Figure 9 Funding for wind energy, million DKK (9). in both conventional energy and renewable including the ability of wind power plants energy. Additionally, the EUDP supported to contribute to regulation and stability. international R&D cooperation through the IEA. 5.3 Programme Committee on Energy The EUDP also includes funding for and Environment quality assurance for renewable energy Since its establishment in 2004, the Danish devices, including wind turbines. The sec- Council for Strategic Research (DCSR) retariat of the Danish Wind Turbine Cer- has had strategic research funds of various tification Scheme is assigned to manage sizes at its disposal for research related to quality assurance of turbines. The actual the value chain of energy research. Energy certification of turbines and installations is research has enjoyed high political priority carried out by private certification compa- since 2004 and represents a limited themat- nies like DNV and GL. Denmark has also ic area. The Danish parliament decides the been active in international standardization amount for strategic research funds in the through IEC and CEN/CENELEC for annual Appropriation Act. The DCSR’s Su- several years. pervisory Board sets up program commis- sions consisting of acknowledged scientists 5.2 ForskEL and ForskNG programs who are charged with allocating the funds. Transmission system operators have had In 2007, the Programme Commission PSO-subsidized R&D programs for non- on Sustainable Energy and Environment commercial projects concerning new and advertised a total of 200 million DKK to environmentally friendly energy technolo- be allocated on five research areas. The two gies since 2000. The Energinet.dk’s For- themes relevant to energy research were: skEL programme and ForskNG programs “organized sustainable energy,” and “energy focus on the development of renewable and the environment,” totaling approxi- energy technologies including wind power. mately 100 million DKK. The other three Priority areas and the total budget are to themes advertised were: “water as a resource be approved by the responsible minister and element in nature’s cycle,” “environ- and the Danish Energy Authority. The mental technology including climate,” and PSO program emphasizes the interaction “marine environment research.” between turbines and the power system,

112 2008 Annual Report Denmark

5.4 Danish National Advanced technology projects is 5-30 million DKK, Technology Foundation of which the Danish National Advanced The objective of the Danish National Ad- Technology Foundation typically provides vanced Technology Foundation is to sup- 50%. The duration of advanced technology port risky and capital intensive research and projects is 2-4 years. development which would otherwise not be possible without the active participation 5.5 Funded projects 2007-2008 of the Foundation. The focus, therefore, lies Funded wind energy project in Denmark on potentially value-creating technologies for the period 2007-2008 are presented in which have not yet been sufficiently ma- Table 2. tured for the commercial market. The tools of the Foundation are twofold: 5.6 Test sites 1. Advanced technology platforms, Risø DTU still owns and manages the test which involve research in a phase of con- site for multi-megawatt wind turbines at siderable risk and a correspondingly very Høvsøre, a site on the northwest coast of large potential for value creation. Research Jutland with high wind speeds. The annual is planned with a view to radical innova- average wind speed at the site at a height of tion. The platforms, which usually involve 78 m is 9.1 m/s. The test site consists of five private enterprises as well as research insti- test stands allowing turbines with heights tutions, serve as a stepping-stone for future up to 165 m and a capacity of up to 5 MW commercial activities in a number of fields. each. The test site is shown in Figure 10. Each platform has a budget of 30-150 million DKK, of which the Danish National 5.7 Collaborative research Advanced Technology Foundation typically Risø DTU plays a leading role in the large provides 50%. The time frame for the ad- European Union project called UpWind. This vanced technology platforms is 3-5 years. project aims to design a wind turbine of 8 to 2. Advanced technology projects, the 10 MW that will be able to operate onshore focus of which is often closer to the market and offshore on wind farms of several hun- than that of the platforms. The participat- dred megawatts. With Risø DTU as the coor- ing businesses move into new business areas dinator, 38 partners participate in the project, where they develop existing strengths by, which started early in 2006. for instance, developing a next-generation In 2008, Denmark participated in the technology or by applying innovative following IEA Wind Tasks: Task 11 – Base combinations of know-how and technol- Technology Information Exchange; Task 23 ogy. The total budget of the advanced

Table 2 Wind Energy Projects funded by Danish R&D Programmes 2007-2008

Project title Support Short description Project manager Total budget Completion date

Offshore wind DKK 1,366,000 Wind field calculation at large offshore wind farms dynamics DKK 2,350,530 and subsequent flow involves some uncertainties. 3rd quarter 2010 The project tries to apply a fundamentally differ- Department of Wind ent formulation of the physics in the atmospheric Energy/Risø-DTU boundary layer, i.e. Bergmann’s balance of pre- served sizes in their steady-state formulation.

IEA Wind 113 National Activities

Shadow effects of DKK 2,446,000 The project aims at developing a meteorological large wind farms DKK 4,892,000 software tool for large wind farm planning. The 4th quarter 2009 project is based on data from previous projects on Department of Wind large wind farm shadow effect. The existing tools Energy/Risø-DTU have proven too optimistic and the close siting of wind farms is not considered properly.

Main electrical wind DKK 4,000,000 The cooperation project is conducted as a PhD turbine components DKK 6,943,000 study as its central element and its research will be 2nd quarter 2011 used directly in wind turbine and wind farm devel- DTU Electrical opment so as to prepare common guidelines under Engineering calls, during planning and design and in connection with a risk analysis of these systems.

Aero-Hydro-Elastic DKK 2,679,000 The project focuses on a theoretical and experi- Simulation Platform DKK 3,137,000 mental study of floating platforms for wind tur- for Floating Systems 4th quarter 2009 bines, wave power systems and the relationship between wind and wave power. The project basis Department of Wind is the existing wave-wind power plant ‘Poseidon’s Energy/Risø-DTU Organ’.

Estimation of extreme DKK 950,000 The project aims to develop controlled Monte Carlo response and struc- DKK 1,203,000 simulation algorithms for wind turbine dimension- tural reliability of wind 1st quarter 2010 ing to obtain a more precise estimate of how turbines under normal extreme values and failure probabilities are distrib- operation by means uted in the reference interval. By extrapolation, the of controlled Monte distribution of extreme responses can be deter- Carlo simulation mined for the entire life of the construction.

Department of Civil Engineering-AAU

Nano-filtration of oil DKK 1,944,000 To extend the life of gear oil – not least for use in DKK 2,985,000 offshore wind turbines – the project aims to in- C.C. Jensen A/S 4th quarter 2010 vestigate whether nano-filtration using CJC filters (cellulose fibres) with zeolites eliminates the car- bonyl compounds which increase oil oxidation. The project also involves the long-term testing of nano filters.

Noise emission from DKK 1,693,000 Acoustic measurements will be performed at vari- wind turbines in wake DKK 3,208,000 ous degrees of wake using several measuring tech- 3rd quarter 2009 niques. The results will be compared with aerody- DELTA Dansk Elek- namic measurements to enhance knowledge of tronik, Lys og Akustik wind turbine noise emission at low, medium and high frequencies. The objective is to improve noise prediction and thus optimise wind farms.

114 2008 Annual Report Denmark

Wind energy DKK 2,285,000 The project aims to generate up-to-date knowl- economy DKK 1,726,000 edge on the trend in Danish wind turbine economy EMD International 4th quarter 2009 for use in an IEA project on ‘Cost of Wind Energy’. Against the background of reliable operational data and analyses of project development costs, learning curves and scenarios will be set up for the technological and economic development.

Design and optimisa- DKK 2,131,000 Using new mathematical methods – topological tion of wing tips for DKK 3,049,000 fluid mechanics – and computer simulations, the wind turbines 4th quarter 2009 exact vortex at the blade tips of a number of blade designs will be analysed. The analysis will result in DTU Mechanical new blade tip designs enhancing mechanical tur- Engineering bine power and reducing noise.

Integrated design of DKK 1,499,200 By combining dynamic simulations and dedicated wind power systems DKK 2,345,200 tools for electric design and control, aero elastic 4th quarter 2009 design and integration into the electricity system, Institute of Energy attempts will be made at fully integrating the con- Technology-AAU siderable dynamic interaction between these areas in a future wind energy system design.

Programme for re- DKK 4,147,000 For 2008, the multi-annual programme includes search in applied DKK 6,549,000 seven specific milestones for maintaining Den- aeroelasticity 1st quarter 2009 mark’s unique position in the fields of aerodynamics and aero elastic research as part of the Wind Wind Energy Depart- Power Hub vision. Thus, the programme plays a ment at Risø-DTU key role in training engineers and researchers for the wind turbine industry.

Improved design ba- DKK 2,000,000 The project aims to develop experimental methods sis for large wind tur- DKK 4,093,000 for characterising material properties for relevant bine blades (Phase 4) 1st quarter 2009 types of damage to wind turbine blades made of composite materials as well as calculation meth- Materials Research ods and procedures. Blade manufacturers will be Department at able to use the results to improve their blade de- Risø-DTU signs and the damage tolerance level.

Research and de- DKK 1,484,000 During this second phase of the project to estab- velopment centre DKK 1,981,000 lish a Danish knowledge centre for wind turbine for wind turbine 2nd quarter 2008 components, the draft design of the centre will be components initiated. Initially, a test bed for a 200-300 kW drive train will be established, and work on the construc- The Danish Wind In- tion of the large-scale test bed will be initiated to dustry Association provide a decision basis for the detailed planning.

IEA Wind 115 National Activities

Interaction between DKK 9,400,000 Offshore wind farm foundations are complex and seabed and offshore DKK 14,500,000 expensive, one reason being the seabed which wind farms 2011 shifts due to wave and current impact. The project is looking into seabed conditions, erosion and the DTU Mechanical quicksand-like conditions that may arise due to im- Engineering pacts. The results are important for the assessment of foundation embedding and dimensioning.

Integrated aero- DKK 10,000,000 Today, wind turbine control systems are designed servo-elastic analysis DKK 12,600,000 separately from its structural, aerodynamic quali- and design of wind 2011 ties, but to achieve cheaper, more reliable wind turbines turbines, the design phases need to be united into one integrated aero-servo-elastic process. The Wind Energy Depart- project will develop new models, methods and ment at Risø-DTU guidelines for integrated aero-servo-elastic wind turbine design.

Wind turbines in- DKK 15,000,000 The project group aims to develop a flexible flap spired by nature DKK 30,000,000 for continuous wind turbine blade adaptation under 2011 turbulent wind conditions. Special wind detector Vestas Wind Systems sensors send data to a computer which calculates A/S flap position. This reduces turbine weight as well as production costs.

Development of DKK 35,000,000 In the course of the next five years, the project ground-breaking DKK 65,000,000 group aims to develop and mature a wind turbine wind turbine blade 2013 blade which by way of a new “Blade King” technol- technology ogy using new fibre types and increased production automation will increase production as well as LM Glasfiber A/S cost effectiveness. The first Blade King blades are expected to be introduced in 2015 at the latest.

– Offshore Wind Energy Technology De- energy begun in 2008, including more offshore ployment; Task 25 –Operation and Design wind power and better terms for wind power of Power Systems with Large Amounts of on land in Denmark, emphasizes that there is a Wind Power; and Task 26 - Cost of Wind strong political will. The recently enacted ini- Energy. In Task 23, the Department of Wind tiatives to fulfill the Energy Strategy 2025 will Energy, Risø DTU serves as one of the task strengthen wind energy R, D&D in Denmark. Operating Agents. It is expected that focus in the new EUDP program will be shifted to increase demonstration 6.0 The next term of new technologies. It is expected that focus on wind power and other renewables will continue with References: emphasis on the new, large, offshore projects (1) The Danish Energy Agency Web site that are currently in the planning process (www.ens.dk). with the framework of the COP 15 Climate (2) Strategy 2025, published June 2005. Change Meeting to be held in Denmark in (3) A Visionary Danish Energy Policy 2025), late 2009. The new political agreement for published 19 January 2007.

116 2008 Annual Report Denmark

Figure 10 Test site at Høvsøre for multi-MW wind turbines (Photo credit: Risø DTU).

(4) Energy Policy Statement 2008, February (9) Annual report 2008 on public grants from 2008. the energy research programmes, ForskEL, (5) Future Offshore Wind Power Sites -2025. EUDP/ERP, Elforsk and DCSR Energy and Danish Energy Agency, April 2007. Environment. November 2008. (6) Horns Rev II project description posted on www.ens.dk (in Danish). Authors: Henrik Lawaetz and Jørgen (7) Roedsand 2 Offshore Wind Farm Envi- Lemming, Wind Energy Division, Risø DTU; ronmental Impact Assessment. Summary of Hanne Thomassen, Danish Energy Agency. the EIA-Report. E.ON Sweden AB. June 2007. (8) Offshore action plan 2008. Follow up to Future Offshore Wind Power Sites -2025. Danish Energy Agency Nov 2008.

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118 2008 Annual Report Chapter 15 *LEGAL NOTICE: Neither the Eu- ropean Commission nor any person acting European on behalf of the Commission is responsible for the use that might be made of the fol- Commission lowing information. The views expressed in this document are the sole responsibility of the authors and do not necessarily reflect of CO2 annually. In 2000, less than 0.9% of the views of the European Commission. EU electricity demand was met by wind power. 1.0 Introduction The 2008 capacity increase was driven Europe has historically been and continues by Italy, Germany, and Spain, together rep- to be the world’s strongest market for wind resenting 53% of the total. Today, 19% of energy development. In 2008, the European Denmark’s electricity comes from wind, Union (EU) saw another record year with 12% in Spain, and 7% in Germany. The installations of almost 8.5 GW, thereby reaf- growth was sustained in Italy – which add- firming its undisputed status as the world’s ed 1,010 MW to reach 3,736 MW – and biggest wind market (1). Industry statistics France, which installed 950 MW for a total released by the EWEA show that in 2008, of 3,404 MW. The new Member States cumulative wind capacity increased by 15% of the EU performed well and increased to reach a level of 64.935 GW; this was up their installed wind capacity by 63%, with from 56.535 GW at the end of 2007 (Fig- Poland, the most successful, reaching a total ure 1). This 8.4 GW of new wind power of 472 MW. In 2008, Bulgaria tripled its capacity represents a wind turbine manu- capacity and Hungary doubled its capac- facturing turnover of some 11 billion €. ity. Over the last ten years, cumulative wind energy installations in the EU have 1.1 Overall capacity increases increased by an average of 26%/yr. The In the EU, wind power continues to be one overall market growth in 2008 was 15%. of the most popular electricity generating Looking beyond Europe, the global market technologies for expanding capacity. Since for wind turbines grew by 28.7% last year 2000, almost 178 GW of new electric- to 121 GW. ity generating capacity has been installed The slow pace of development in some in the EU. During that time, the installed European countries can be explained by a wind capacity has increased almost seven mixture of slow administrative processes, times from 9.7 to 64.9 GW. Over these last problems with grid access, and legislative eight years, according to figures from Platts uncertainty. The figures demonstrate the PowerVision and EWEA, new gas instal- existence of continuous barriers to wind lations totaled 96 GW, while wind energy energy development. One critical element installations totaled more than 55 GW. This for a massive and sustained expansion of represents 31% of the total new generation wind energy in all countries of the EU is installations over the period between 2000 the swift and rapid implementation of the and 2008 (Figure 2). European directive for the promotion of In 2008 alone, wind power installations renewable energy sources, with an objective made up almost 36% of new power instal- of 20% of renewable energy in the Europe- lations in Europe and grew more than any an energy mix in 2020. This could represent other power-generating technology. Wind 35% of European electricity coming from energy now represents 8% of the total EU renewables in 2020. installed power capacity (Figure 3). Total wind power capacity installed by the end 1.2 Offshore wind of 2008 will produce 142 TWh, or 4.2% Offshore wind, seen as a key market for of EU power demand in an average wind European expansion, is now near take off. year, and will avoid about 108 million tons By 2008, the industry had developed 32

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Figure 1 Wind power installed in Europe by end of 2008.

120 2008 Annual Report European Commission

Figure 2 New electricity generating capacity in the EU from 2000 to 2008.

Figure 3 Cumulative installed capacity per Member State by end of 2007.

IEA Wind 121 National Activities projects in ten countries, many of them 2.0 The EU Legislative Framework large scale and fully commercial, with a for Wind Energy total capacity of around 1,471 MW (Figure 2.1 The RES-E Directive 4). At the end of 2008, offshore wind farm Up until now, an important factor behind installations represented nearly 2.3% of the the growth of the European wind market total installed wind power capacity. has been strong policy support both at the The short-term prospects for offshore EU and at the national level. The EU’s Re- wind are promising, with several projects newable Electricity Directive (77/2001/ planned to be connected to the grid in EC) has been in place since 2001. The 2009 in Germany (512 MW), France (105 aim is to increase the share of electricity MW), the United Kingdom (90 MW), produced from RES in the EU to 21% by Sweden (30 MW), and Denmark (28 MW). 2010, up from 15.2% in 2001. This target Prospects for 2015 look bright, with a was established by the EU Renewable total of more than 37 GW planned (Figure Electricity (RES-E) Directive, which set 5). One critical element for an accelera- out differentiated national indicative targets. tion of the development of offshore wind The RES-E Directive has been a historical energy in the EU is the rapid publication of step in the delivery of renewable electricity the Commission’s blueprint for a North Sea and constitutes the main driving force be- grid, the Baltic interconnection plan, and hind recent policies being implemented. the Mediterranean ring, as announced by In the pursuit of the overall target of the second Strategic Energy Review. How- 21% of electricity production from renew- ever, the current global financial environ- able sources by 2010, the RES-E Direc- ment is also a potential delaying factor for tive gives EU Member States freedom of the foreseen deployment. choice regarding support mechanisms. Thus,

Figure 4 Offshore wind power installed by the end of 2008 by Member States of the EU. Source: EWEA (2009) Offshore Wind Farms 2008.

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Figure 5 Offshore wind power planned for 2015. various schemes are operating in Europe, not appropriate. By adopting best practices mainly feed-in tariffs, fixed premiums, or combining national support schemes, green certificate systems, and tendering Member States can continue to reform, op- procedures. These schemes are generally timize, and coordinate their efforts to sup- complemented by tax incentives, environ- port renewable electricity. According to the mental taxes, contribution programs, or vol- European Wind Energy Association, a hasty untary agreements. move toward a harmonized EU-wide pay- The European Commission (EC) re- ment mechanism for renewable electricity ports COM (2005) 627 and COM (2008) would have a profoundly negative effect on 19 have highlighted that despite the re- the markets for wind power and put Euro- quirements of Directive 77/2001/EC, the pean leadership in wind power technology efforts of Member States, and some im- and other renewables at risk. provements of the regulatory frameworks, major barriers to the growth and integra- 2.2 EU Legislative Framework tion of renewable electricity remain. In In December 2008, the European Union relation to wind, the progress report high- agreed a new Renewable Energy Directive lights that even if the level of payment is to implement the pledge made in March sufficient to cover costs, it may not increase 2007 by the EU Heads of State for a bind- deployment of wind. The main cause of the ing 20% renewable energy target by 2020. slow development in some Member States The EU’s overall 20% renewable energy is not deliberate policy barriers, but delays target for 2020 has been divided into legally in authorization, unfair grid access condi- binding targets for the 27 Member States, tions, and slow reinforcement of the electric averaging out at 20%. The Member States power grid. The reports invite the Member are given an ‘indicative trajectory’ to follow States to give a high priority to removing in the run-up to 2020. By 2011-12, they administrative barriers and improving grid should be 20% of the way toward the target access for renewable energy producers. (compared to 2005); by 2013-14, 30%; by Finally, the EC reports conclude that 2015-2016, 45%; and by 2017-18, 65%. the harmonization of support schemes for In terms of electricity consumption, economic efficiency, single market, and renewables should provide about 35% of state aid remains a long-term goal, but the EU’s power by 2020. By 2020, wind that harmonization in the short-term is energy is set to contribute the most - nearly

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35% of all the power coming from renew- increased capacity of an installation that was ables. The directive legally obliges each refurbished after the directive enters into EU Member State to ensure that its 2020 force, and the electricity must be consumed target is met and to outline the ‘appropriate within the EU community. measures’ it will take do so in a National Regarding administrative procedures, Renewable Energy Action Plan to be sub- the Member States will have to make sure mitted by 30 June 2010 to the EC. that the authorization process for renewable The National Action Plans (NAPs) will energy projects is proportionate, necessary, set out how each EU country is to meet and transparent. This should reduce the its overall national target, including sector time a new project takes to become op- targets for shares of renewable energy for erational and help the 2020 targets be met transport, electricity, and heating/cooling. more easily. The NAPs will also describe how Member For integration to the electricity sys- States will tackle administrative and grid tem, the agreement requires EU countries barriers. If they fall significantly short of to take “the appropriate steps to develop their interim trajectory over any two-year transmission and distribution grid infra- period, Member States will have to submit structure, intelligent networks, storage fa- an amended NAP stating how they will cilities, and the electricity system” to help make up for the shortfall. develop renewable electricity. They must Every two years Member States will also speed up authorization procedures for submit a progress report to the EC, con- grid infrastructure. taining information on their share of EU countries must ensure that trans- renewable energy, support schemes, and mission system operators and distribution progress on tackling administrative and grid system operators guarantee the transmission barriers. Based on these reports from the and distribution of renewable electricity Member States, the EC will publish its own and provide for either priority access to the report the following year. grid system – meaning connected genera- Certain measures to promote flex- tors of renewable electricity are sure that ibility have been built into the directive they will be able to sell and transmit their in order to help countries achieve their electricity - or guaranteed access - ensuring targets in a cost-effective way without un- that all electricity from renewable sources dermining market stability. For example, sold and supported gets access to the grid. Member States may agree on the statistical The EC will publish, by 2018, a transfer of a specified amount of renewable Renewable Energy Roadmap for the energy between themselves. They can also post-2020 period. This is a very welcome co-operate on any type of joint project development that will allow the wind pow- relating to the production of renewable er sector to ensure that a stable regulatory energy, including projects involving private framework replaces the Renewable Energy operators if relevant. Thirdly, two or more Directive of 2009 when it expires at the Member States may decide, on a voluntary end of 2020. basis, to join or partly coordinate their national support schemes in order to help 3.0 R, D&D Wind Energy Projects achieve their targets. In 2008, around 20 R&D projects were Under certain conditions, Member running with the support of the Sixth and States will be able to help meet their na- Seventh Framework Programmes of the EU tional electricity sector target with imports (the Framework Programmes are the main from non-EU countries. The electricity will EU-wide tool to support strategic research have to be produced by a newly construct- areas). The management and monitoring ed installation that became operational after of these projects is divided between two the directive enters into force, or by the Directorate-Generals (DGs) of the EC: the

124 2008 Annual Report European Commission

Directorate-General for Research (DG Re- consortium composed of 40 partners and search) for projects with medium- to long- brings together the most advanced Euro- term impact, and the Directorate-General pean specialists of the wind industry. for Transport and Energy (DG TREN) Following the first call for proposals by for demonstration projects with short- to the EC’s Seventh Framework Programme, medium-term impact on the market. The three wind-related projects started in 2008. following paragraphs summarize both the RELIAWIND: The EU Council of nature and the main data of EU R&D ini- Ministers, held on 8 and 9 March 2007, ex- tiatives funded projects during 2008. amined energy issues and agreed, amongst other things, that “renewable energy will 3.1 DG Research activities cover at least 20% of the EU’s energy de- In 2008, the two projects POW’WOW and mand by 2020.” Wind power can make the UPWIND continued their activities, and most important contribution to this target, three wind-related projects started in 2008. if sufficient emphasis is placed on tech- POW’WOW, which stands for Predic- nological R&D and market development. tion Of Waves, Wakes and Offshore Wind Because of the current European scenario (powwow.risoe.dk), is a three-year coordi- and its forecasted evolution toward 20% nation action that started in October 2005 renewables by 2020, offshore wind energy with the aim to co-ordinate activities in is called to play a key role. Currently, off- the fields of short-term forecasting of wind shore maintenance costs are still too high power, offshore wind and wave resource and thus require higher feed-in tariffs for prediction, and estimation of offshore the private investor’s business case to reach wakes in large wind farms. The purpose of minimum profitability. The RELIAWIND the POW’WOW project is to spread the project aims to offset this paradigm and al- knowledge gained in these fields among the low offshore wind power to be deployed in partners and colleagues, and to start work the same way onshore has been. Based on on some roadmaps for the future. A first the success of collaborative experiences in workshop on “Best Practice in the Use of sectors such as aeronautics, members of the Short-Term Forecasting of Wind Power” European wind energy sector established was held in Delft, the Netherlands in 2006. the RELIAWIND consortium to jointly In September 2007, a workshop on “Inte- and scientifically study the impact of wind gration of Wind and Wave Resource As- turbine reliability. The mission of the con- sessment” was organized in Porto, Portugal. sortium is to change the paradigm of how In May 2008, a second workshop on “Best wind turbines are designed, operated, and Practice in the Use of Short-Term Fore- maintained. This will lead to a new genera- casting of Wind Power” was held in Madrid, tion of offshore (and onshore) wind energy Spain. systems that will hit the market in 2015. UPWIND, which stands for Integrated The objectives of this research project are: Wind Turbine Design (www.upwind.eu), • To identify critical failures and started in March 2006 to tackle, over six components (WP-1: Field Reliability years, the challenges of designing very large Analysis) turbines (8 to 10 MW), both for onshore • To understand failures and their and offshore. UPWIND focuses on design mechanisms (WP-2: Design for tools for the complete range of turbine Reliability) components. It addresses the aerodynamic, • To define the logical architecture aero-elastic, structural, and material de- of an advanced wind turbine genera- sign of rotors. Critical analysis of drive tor health monitoring system (WP-3: train components is also being carried Algorithms) out in the search for breakthrough solu- • To demonstrate the principles of the tions. UPWIND is a large initiative with a project findings (WP-4: Applications)

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• To train internal and external part- procedures in their daily practices for de- ners and other wind energy sector signing turbines and components, certifying stakeholders (WP-5: Training) them, and carrying out prototype measure- • To disseminate the new knowledge ments. Project results will be submitted to through conferences, workshops, relevant standardization committees. web site, and the media (WP-6: SAFEWIND: The integration of wind Dissemination). generation into power systems is affected by uncertainties in the forecasting of expected PROTEST: One of the major causes power output. Misestimating of meteoro- of failures of mechanical systems (e.g. drive logical conditions or large forecasting er- trains, pitch systems, and yaw systems) in rors (phase errors, near cut-off speeds, etc), wind turbines is insufficient knowledge of are very costly for infrastructures (such as the loads acting on these components. The unexpected loads on turbines) and reduce objective of this pre-normative (2) project the value of wind energy for end-users. is to set up a methodology that enables bet- The state-of-the-art techniques in wind ter specification of design loads for the me- power forecasting have focused so far on chanical components. The design loads will the “usual” operating conditions rather be specified at the interconnection points than on extreme events. Thus, the current where the component can be “isolated” wind forecasting technology presents sev- from the entire wind turbine structure (in eral strong bottlenecks. End-users argue for gearboxes for instance, the interconnection dedicated approaches to reduce large pre- points are the shafts and the attachments to diction errors and for scaling up local pre- the nacelle frame). The focus of this activity dictions of extreme whether (gusts, shears) will be on developing guidelines for mea- to a European level because extremes and suring load spectra at the interconnection forecast errors may propagate. Similar con- points during prototype measurements and cerns arise from the areas of external con- to compare them with the initial design ditions and resource assessment where the loads. Ultimately, these new procedures aim is to minimize project failure. The aim will be brought to the same high level as of this project is to substantially improve the state-of-the-art procedures for design- wind power predictability in challenging or ing and testing rotor blades and towers, extreme situations and at different temporal which are critical to safety. A well-balanced and spatial scales. Going beyond this, wind consortium consisting of a turbine manu- predictability will be considered as a system facturer, component manufacturer, certi- parameter linked to the resource assessment fication institute, and R&D institutes will phase, where the aim is to make optimal describe the current practice for designing decisions for the installation of a new wind and developing mechanical components. farm. Finally, the new models will be im- Based on this starting point, the project plemented into pilot operational tools for team will draft improved procedures for evaluation by the end-users in the project. determining loads at the interconnection The project concentrates on: points. The draft procedures will then be • Using new measuring devices for a applied to three case studies, each with a more detailed knowledge of the wind different focus. They will determine loads speed and energy available at local at the drive train, pitch system, and yaw sys- levels tem. The yaw system procedures will take • Developing strong synergy with re- into account complex terrain. The project search in meteorology team will assess the procedures, and (de- • Developing new operational methods pending on the outcome) the procedures for warning/alerting that use coherent- will be updated accordingly and dissemi- ly collected meteorological and wind nated. All partners will incorporate the new power data distributed over Europe for

126 2008 Annual Report European Commission

early detection and forecasting of ex- significantly reduce costs and increase the treme events market value. Second, new power electron- • Developing models to improve me- ics technology and improved wind fore- dium-term wind predictability casting will be used to stabilize the grid • Developing a European vision of in the high-capacity wind park. Improved wind forecasting that takes advan- forecasting is envisioned to further improve tage of existing operational forecast- the cost-effectiveness of the high-capacity ing installations at various European wind park by reducing imbalance costs and end-users. improving commercial value. Third, the 7-MW turbines will be used to maximize The 2009 call for proposals brought wind energy capacity, while reducing land- two cross-cutting topics about platforms for scape pollution and environmental impact. deep water offshore multipurpose renew- Such large WECs generate more than dou- able energy (wind/wave/ocean). Several ble the energy in the same given area when proposals were received by 25 November compared to conventional 2-MW turbines 2008 and were being evaluated. and require fewer turbines when compared to conventionally used wind turbines. After 3.2 DG TREN activities the 77-MW demonstration, lessons learned The two projects discussed below represent in developing the high-capacity Estinnes demonstration actions funded within the wind park will be adapted to a different Seventh Framework Programme (FP7- 1st national context with a weak grid system, Call) of the EU and managed by the DG Cyprus, Greece. TREN. NORSEWInD will provide a wind 7-MW-WEC-by-11: This action fo- resource map covering the Baltic, Irish, cuses on demonstrating a cost-effective and North Sea areas. The project will large-scale high-capacity wind park using acquire highly accurate, cost effective, new state-of-the-art multi-megawatt tur- physical data using a combination of tradi- bines coupled with innovative technology tional meteorological masts, ground-based used to stabilize the grid. A key objective remote sensing instruments (LiDAR & of the ‘7-MW-WEC-by-11’ project is to SoDAR), and Satellite acquired synthetic introduce a new class of large-scale Wind aperture radar (SAR) wind data. The verti- Energy Converters (WEC), the 7-MW cal resolution of the ground-based instru- WEC, onto the market. Such WECs could ments will be used to calibrate the satellite contribute to higher market penetration data to provide hub-height, real-world levels for wind electricity in Europe. The data. The resultant wind map will be the new 7-MW WEC should be designed first stop for all potential developers in the and demonstrated at a large scale: 11 such regions being examined, and as such rep- WECs will be demonstrated in a 77-MW resents an important step forward in quan- wind park close to Estinnes, Belgium. The tifying the quality of the wind resource wind park will be the first large-scale on- available offshore. The techniques em- shore wind park in Belgium and the first ployed can be repeated in any offshore en- in the world that will consist of this ‘mega’ vironment. This will be showcased in the turbine power class. Key-challenges related NORSEWInD validation task. Remote to wind power will be addressed in this sensing technologies have an important demonstration action ranging from techni- role to play in the wind industry, and their cal issues (network stability and security), use within the NORSEWInD program tol to financial aspects (cost effectiveness), to reduce the cost and increase the accuracy environmental issues (landscape pollution). of offshore wind measurements will in- First, the ‘mega’ turbines will be developed crease acceptance and showcase the ability and installed in series; this is envisioned to and power of the techniques.

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3.3 Future R&D projects 2. Putting an automated wind manufac- Several wind projects are expected to start turing capacity in place in 2009 under the Seventh Framework 3. Reducing the cost and enabling large Programme. The new projects will address wind energy integration into the grid by deep-offshore multipurpose renewable adapting the network and its operation to a energy platforms, the demonstration of in- progressive but fast up-take of on and off- novative multi-MW machines, and wind shore wind electricity mapping for offshore applications. 4. Accelerating market deployment through a deep knowledge of wind re- 3.4 Plans and initiatives sources and a high predictability of wind The Strategic Energy Technology Plan (3) forecasts. is a pragmatic and pioneering tool for supporting the development of low carbon 3.5 European Commission contacts technologies to significantly contribute to DG RESEARCH the European energy and climate change Thierry LANGLOIS d’ESTAINTOT objectives. Part of this plan, the European European Commission Industrial Initiatives will be set up to in- Office CDMA 5/138 clude the industrial sector in setting priori- B-1049 Brussels Belgium ties, objectives, and activities, and in iden- Tel. direct: +32-2-295.07.65 tifying the financial and human needs to Fax: +32-2-299.49.91 make a step change in the energy sector. Email: thierry.d’[email protected] The European Wind Industrial Initia- tive has the objective to make wind one of DG TREN the cheapest sources of electricity and to Roberto GAMBI enable a smooth and effective integration European Commission of massive amounts of wind electricity into Office DM24 3/104 the grid. To achieve this objective, special B-1049 Brussels Belgium efforts will be dedicated to greatly increase Tel. direct: +32-2-299.81.75 the power generation capacity of the larg- Fax: +32-2-296.62.61 est wind turbines (from 5-6 MW to 10-20 Email: [email protected] MW) and to tap into the vast potential of offshore wind. This will pave the way for 4.0 The European Wind Energy achieving ambitious targets by 2020: Technology Platform • Supplying up to 20% of the EU elec- The European Wind Energy Technology tricity consumption Platform (TPWind) was officially launched • Reducing the cost of electricity from on 19 October 2006, with the full support wind energy by 20% of the EC and the European Parliament. • Enabling the development of new TPWind is an industry-led initiative. The types of turbines reaching up to 20 Secretariat is composed of the European MW. Wind Energy Association, Garrad Hassan, and Risø DTU. Its objective is to identify The European Wind Industrial Initia- and prioritize areas for increased innovative will integrate the following elements: tion, new and existing research, and devel- 1. Reinventing wind turbines through opment tasks. innovative design, integration of new ma- Historically, the principal drivers for terials, and development of advanced struc- wind energy cost reductions have been R, tures with particular emphasis on offshore D&D, for approximately 40%; and econo- wind applications that are far from shore mies of scale, for around 60%. The scope and water depth independent of TPWind mirrors this duality. TPWind

128 2008 Annual Report European Commission focuses not only on short- to long-term Figure 6 (pg. 130) reflects the TP- technological R&D but also on market de- Wind structure. The secretariat of the plat- ployment. This is reflected in the TPWind form is funded by the Sixth Framework structure, as defined by the Steering Com- Programme. mittee in 2007. TPWind is composed of TPWind Secretariat contact four technical working groups responsible TPWind Secretariat for building a Strategic Research Agenda, Renewable Energy House two working groups responsible for build- Rue D’Arlon 63 - 65 ing a Market Deployment Strategy, a Fi- B-1040 Brussels Belgium nance Group responsible for exploring and Tel.: +32-2-546.19.40 proposing funding mechanisms, and a Mir- Fax: +32-2-546.19.44 ror Group gathering representatives from Email: [email protected] national governments. The platform is lead www.windplatform.eu by a Steering Committee of 25 members, representing a balance between industry References and notes and research, and between European coun- (1) Note that due to differences in sta- tries. Altogether, this represents a group tistical methodology, there may be slight of 150 high-level experts representing the differences between the figures quoted in whole wind industry. this section and those in other sections of TPWind is the indispensable forum for the IEA Wind Annual Report. the crystallization of policy and technol- (2) Pre-normative research is R&D ogy research and deployment pathways for likely to generate new matters for standard- the wind energy sector. It also provides an isation, usually in advance of these activities, opportunity for informal collaboration and (i.e. work anticipating future standards). coordination between EU Member States, (3) Communication from the Commis- including those less developed in wind en- sion to the Council, the European Parlia- ergy terms. ment, the European Economic and Social In June 2008, TPWind issued its Committee and the Committee of the Re- Strategic Research Agenda and Market gions - A European strategic energy tech- Deployment Strategy documents. These nology plan (SET-plan) - ‘Towards a low documents were debated during the two carbon future’, COM/2007/0723 final. General Assemblies of the Technology Plat- form. TPWind is now moving to its next Authors: Thierry Langlois d’Estaintot, operation phase, focused on implementing European Commission, DG Research; Ro- its Strategic Research Agenda. Therefore, berto Gambi, European Commission, DG in March 2009, TPWind released a docu- TREN; Nicolas Fichaux, Sharon Wokke, ment proposing a list of concrete projects European Wind Energy Association. in order to enable a swift implementation of the priorities of the European wind energy sector.

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Figure 6 Structure of TPWind. SOURCE: European Wind Energy Technol- ogy Platform. Available at http://www.windplatform.eu.

130 2008 Annual Report Chapter 16 1.0 Introduction Energy in Finland is generated using a high Finland share of renewables, mainly hydropower and biomass. Finland’s generating capacity is diverse. In 2008, 25% of gross demand was 2.0 Progress Toward produced by nuclear, 19% by hydropower National Objectives (it was a good hydropower year), and 31% The progress in wind power capacity has from combined heat and power (coal, gas, been slow compared with other European biomass, and peat). Gross electricity demand countries. The funds available for invest- is about 87 TWh and is dominated by ment subsidies have been inadequate to energy-intensive industry. About half of the achieve any large increases in wind-power electricity is consumed by the paper and capacity. From 2005 to 2008, no specific metal industries. About 15% of electricity goal for wind power was set. was imported, mainly from Russia. The new target proposed in the climate Most of Finland’s hydropower resource and energy strategy in 2008 is 2,000 MW has already been used; there is potential of wind power in 2020. This would be for about 1 TWh/yr more. Biomass is used about 6% of the total electricity consump- intensively by the pulp and paper industry, tion in Finland. A new subsidy system is raising the share of biomass-produced elec- proposed to start in 2010. This reflects the tricity to 10% in Finland. There is still bio- increased targets for renewables arising from mass potential available, and this is reflected the EU target of 20% of energy consump- by the national energy strategy, which tion from renewable sources in 2020. The foresees biomass as providing most of the target for Finland is 38% of final energy increase in renewables. consumption by RES (current RES share Wind energy potential is located most- 28.5%). ly on coastal areas. There is a huge technical The development in wind power ca- potential offshore, with ample shallow sites pacity and production is presented in Fig- available. Offshore, nearly 10,000 MW of ure 1. Eleven new turbines totaling 33 MW wind power potential has been identified were installed, bringing the total capacity to in the process of renewing regional plans in 143 MW at the end of 2008 (30% growth Finland. from the previous year). Total wind en- A feed-in premium has been proposed ergy production in 2008 increased by 38% to begin in 2010 to promote investments in compared to 2007. The production of 260 wind power. A guaranteed price of 83.5 €/ GWh corresponds to 0.3% of the annual MWh has been proposed for wind power. gross electricity consumption of Finland The difference between the guaranteed (Table 1). price and spot price of electricity will be There were 118 wind turbines in op- collected from the consumers and paid to eration in Finland at the end of 2008. The the producers as a premium. average wind turbine size is 1,210 kW.

Table 1 Key Statistics 2008: Finland Total installed wind generation 143 MW New wind generation installed 33 MW Total electrical output from wind 0.26 TWh Wind generation as % of national electric demand 0.3% Target: 2,000 MW by 2020

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About 37% of the equipment originates the Northern part of the West coast, as from Denmark, 20% from Germany, 39% well as Kristiinankaupunki (240-400 MW), from Finland, and 4% from the Netherlands. Siipyy (about 250 MW), and Inkoo (180- The size of the installed capacity ranges 300 MW) on the Southern part of the from 75 kW to 3 MW. The eleven new West coast. Pori offshore demonstration turbines installed in 2008 were all 3 MW is the closest to the building phase (100 turbines (Figure 2). MW). The largest onshore projects are in Only a few projects could still be built Tornio (28 MW), Muonio (30-40 MW), in 2009, (1 MW in Ii, 3 MW in Pori, and Raippaluoto (45 turbines), Teuva (30 tur- 12 MW in Hamina), but more than 80 bines), Kristiinankaupunki (45 turbines), MW received investment subsidy deci- Ilmajoki (20 turbines), Maalahti (35 tur- sions in 2008 and in the first part of 2009. bines), Raahe (30 turbines), and Närpiö (30 There are a huge number of projects that turbines). are planned, under feasibility studies, or The Åland islands between Finland and have just been proposed: 1,300 MW on- Sweden constitute an autonomous region shore and 4,700 MW offshore. Several large with its own legislation, budget, and energy offshore project plans were published in policy. Wind energy deployment there is 2007 and 2008, and Environmental Impact steady and, considering the population, Analyses have been started for Suurhiekka the targets are ambitious. Wind energy was (400 MW), Oulu-Haukipudas (500 MW), expected to cover 10% of electricity con- Maakrunni (350-450 MW), Pitkämatala sumption in the region by 2006. This figure (800-900 MW), Oulunsalo-Hailuoto (150- stood at 23% in 2008 for the 22 MW in- 210 MW), and Raahe (300-500 MW) on stalled and will further increase as 18 MW Eckerö project will be built in 2010.

Figure 1 Development of installed wind power capacity (MW) at end of 2008, yearly wind power production (GWh), and wind production index (calculated from Finnish Meteorological Institute (FMI) wind-speed measurements converted to wind power production, 100% is average production from 1987–2001).

132 2008 Annual Report Finland

The environmental benefit of wind for interest in offshore projects. The first power production in Finland is about 0.2 semi-offshore projects were built in 2007 million tons of carbon dioxide savings (six 2.3-MW turbines in Åland Båtskär) per year. and 2007-08 (ten 3-MW turbines in Kemi, of which 12 MW are offshore) (Figure 4). A 3.0 Benefits to National Economy demonstration project in Pori is still in the 3.1 Market characteristics planning phase (100 MW). Most of the turbines in Finland are located along the coast and are owned by power 3.2 Industrial development companies and local energy works (Figure and operational experience 3). Green electricity is offered by most 3.2.1 Industrial development electric utilities; however, the marketing The Finnish manufacturer WinWinD pre- is not very active. In 2008, the companies sented its first 1-MW pilot plant in spring reported thousands of new customers for 2001 and erected the 3-MW pilot plant the renewable electricity products. The in 2004 in Oulu. Their turbines operate at supply of used turbines from the first dem- variable speed with a slow speed planetary onstration projects in Finland and from the gear box and a low-speed permanent- Netherlands has encouraged some farmers magnet generator. This solution combines to acquire second-hand turbines—they are the best features of a direct drive and gear located inland where the wind resource is system, producing efficient and reliable tur- limited at heights below 60 m. bines. By the end of 2008, WinWinD had Good sites for larger wind farms on the installed 142 MW in seven different coun- coastal areas are scarce. This is one reason tries including Estonia, France, Portugal,

Figure 2 Oulunsalo saw two new 3-MW WinWinD turbines added to the existing wind park in 2008 (three 1-MW WinWinD turbines; one 1.3-MW Nordex turbine). (Photo: Win- WinD).

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Figure 3 Locations of wind turbines in Finland at the end of 2008.. and Sweden. WinWinD has manufactured 2006 is Sterling Group (India) and in 2008 39% of all the turbines in Finland (57 Masdar (Abu Dhabi) became a major share- MW) (Figure 5). In 2008, the number of holder, too. This has led to a steady expan- employees grew to 270 (190 in Finland). sion in the company and an increase in the WinWinD has two manufacturing facilities production capacity to meet the demand in Finland. An assembly plant for 3-MW for turbines. turbines is currently being constructed in Several industrial enterprises have de- Hamina, Finland. An assembly and blade veloped important businesses as suppliers manufacturing plant for 1-MW turbines of major components for wind turbines. is starting operation in 2009 in Chennai, For example, Moventas Oy (earlier Metso India. The main owner of WinWinD since Drives Oy) is the largest independent

134 2008 Annual Report Finland

million € according to the industry’s own estimates. The manufacturing industry has a branch group under Technology Industries in Finland, to promote technology development and to export wind technology. The benefit to the national economy was estimated by the wind technology manufacturing industry under Technology Industries in Finland in its road map for wind power technology in November 2005. According to the calculations, investing a total of 220 million € for wind energy from 2006 to 2020 could result in raising the yearly wind technology exports from 200 million € to 1,400 million €/yr in 2020 and creating 18,000 new jobs. According to this scenario, the total investment for wind power in Finland would be 100 million €/ yr on average from 2006 to 2020 (1,500 MW), and this would result in a carbon dioxide reduction of 7 million tons during those years (10 TWh total).

3.2.2 Operational experience According to the statistics portrayed in Figure 7, performance of wind power production has improved. The average capacity factor was higher between 2000 and 2006 Figure 4 New semi-offshore wind farm (ten than it had been in the 1990s, even though 3-MW WinWinD turbines) installed in Kemi the FMI wind energy production index has Ajos. (Photo: Eero Kokkonen, PVOI). been lower in recent years. This improved production is mainly because more mega- manufacturer of gears and mechanical drives watt-scale machines are reaching a higher for wind turbines. ABB Oy is a world- wind resource (Figure 8). leading producer of generators and electri- The average availability of wind tur- cal drives for wind turbines. The Switch bines operating in Finland was 96% in 2008 company supplies individually tailored (94% in 2007). Two old 300-kW turbines permanent-magnet generators and full- were not operational all year after gearbox power converter packages to meet the needs problems late in 2006 – they are now up of wind turbine applications, including for sale. There were not many large failures harsh conditions. Hollming has an assembly in 2008: three generator failures, one blade plant for wind turbines and components failure, and one gear-box failure were rein Loviisa. The 3-MW WinWinD turbines, ported from the 96 turbines reporting. as well as direct-drive generators for the Switch company, are assembled there. In ad- 3.3 Economic details dition, materials such as cast-iron products, On coastal sites in Finland, the cost of wind tower materials, and glass-fiber products are energy production could be about 50 to produced in Finland for the main wind tur- 80 €/MWh without subsidies (15 years, bine manufacturers. As shown in Figure 6, 7% internal rate of return), while the cost the total turnover has grown to about 1,000 of offshore production could be about 80

IEA Wind 135 National Activities

Figure 5 Market shares of turbine manufacturers in Finland as a percentage of the total capacity at the end of 2008 (143 MW).

Figure 6 Finnish wind-sector turnover: wind power technology exports, electricty investments, and electricty production turnover. Turnover from electricity production sales has been estimated from the average spot price. to 100 €/MWh. The average spot price in and future and forward prices are about 40 the electricity market Nordpool was 51 €/MWh for 2009-2010. Wind power still €/MWh in 2008 (30 €/MWh in 2007). needs subsidies to compete even on the Emission trade effects on the operating best available sites. costs of thermal power have resulted in an All wind energy installations are com- increase of spot market prices, however, mercial power plants and have to find their emission permit prices have been volatile customers via a free power market. In most

136 2008 Annual Report Finland

Figure 7 Average capacity factor of wind turbines in Finland for all turbines and for higher- and lower-hub-height turbines. The production index calculated from FMI wind-speed measurements is also shown (100% corresponds to average production in 1987–2001). Turbines with low availability (< 80 %) have been excluded in this analysis.

Figure 8 The average size of installed capacity (rated power in kilowatts) is indicated by the bar (for new and second-hand turbines). The number of installed turbines is marked in the bars. The vertical line represents minimum and maximum capacity of turbines installed. cases, an agreement with a local utility is difference between the guaranteed price made that gives market access and financial and a three-month-average spot price of stability. Several companies offer green or electricity will be collected from the con- specifically wind electricity certified by the sumers and paid to the producers as a pre- Association for Nature Conservation. mium. This is a system that fits the Nordic A feed-in premium for wind energy electricity markets, as the producers will sell has been proposed, and this would greatly their energy in the market or by bilateral increase the wind power market in Finland. contracts, and account for the balancing A guaranteed price of 83.5 €/MWh is cur- costs for their production. rently proposed for wind power, where the

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4.0 National Incentive Programs had received an investment subsidy decision As the main incentive to promote wind by June 2009. investments, an investment subsidy of up to In 2007, the EU published a target of 40% has been possible depending on the 20% of energy consumption to be sourced level of novelty of a wind energy installa- from renewable energy in 2020. The target tion. In addition to the investment subsidy, for Finland was set to 38% of final en- a tax refund of 6.9 €/MWh is awarded. A ergy consumption by RES (current share new incentive system based on a guaranteed 28.5%). The new climate and energy strat- price has been proposed in 2009. egy given by the government in 2008 has Projects that applied for a subsidy be- a target of 2,000 MW of wind power in tween 2001 and 2006 received an average 2020. A change in the incentive program investment subsidy of 35% (Figure 9). In is currently prepared: a feed-in premium 2008, investment subsidies were granted for wind power, biogas, and possibly other to two projects with offshore foundations RES. developed for ice infested waters (subsidy A guaranteed price of 83.5 €/MWh of 1.6 million €, representing 35% of the has been proposed for wind power, where total investment). To speed up wind power the difference between the guaranteed development, additional funds for invest- price and spot price of electricity will be ment subsidies have been made available for collected from the consumers and paid to 2009. Already by April 2009, more than 13 the producers as a premium. This proposal, million € have been granted, and 80 MW from April 2009, has yet to be approved

Figure 9 Investment subsidies granted for wind power and the total amount of tax refunds for wind electricity in Finland. The average investment subsidy as a percent of total investment costs is also shown. Most of the capacity granted with investment subsidies in 2006 (total 25 MW) was built in 2007.

138 2008 Annual Report Finland by the government and the parliament of Environment published guidelines for to enable the new incentive system. A planning and building permission proce- three-month average spot price has been dures for wind power plants. Sites for wind proposed as the comparison price to deter- power have been added to regional plans by mine the payments to the producers (the the authorities. This will help future wind guaranteed price minus the average spot power projects. Large areas mostly offshore price). Should the (average) spot price rise have already been added for the Gulf of to above the guaranteed price, the produc- Bothnia, North (about 4,000 MW), and the ers will get this higher price. Wind power Gulf of Finland, West (about 200 MW). The producers will be responsible for their planning process is ongoing for the Gulf forecast errors. If the impacts of emission of Bothnia, South, and the Gulf of Finland, trading continue to raise electricity market East. prices, this will reduce the consumer payments for this subsidy. An increased level 5.0 R, D&D Activities of guaranteed price for the first projects, a 5.1 National R, D&D efforts reduced level of guaranteed price for new Since 1999, Finland has not had a national projects during the later years, and a special research program for wind energy. Indi- subsidy for offshore wind power will still be vidual projects can receive funding from the considered. National Technology Development Agency A new wind atlas is currently being (Tekes) according to the general priori- developed by FMI with government budget ties and requirements for technical R&D. funding, and will be published at the end Benefit to industry is stressed, as is the of 2009. This will help reduce uncertainty industry’s direct financial contribution to when estimating the production potential individual research projects (Figure 10). Pri- of the taller multi-megawatt machines in ority is given to product development and the forested coastal areas of Finland. the introduction of new products. National An addition to the electricity market projects for collaboration with IEA Wind act was approved in 2007 where a ceiling to Tasks 19, 21, 24, and 25 have been under the distribution network charges was set for the DENSY program (Distributed Energy distributed generation, including wind. The Systems) (2003–2007). distribution charges vary across the country The VTT Technical Research Centre and in some areas have hindered local gen- of Finland is developing technologies, com- eration. The act also stated that grid rein- ponents, and solutions for large wind tur- forcement payments must be borne by the bines. An icing wind tunnel for instrument consumers, not by the producer. Before be- and material research and testing in icing coming effective in February 2008, project conditions was put up in 2008. Industrial size for grid reinforcement exemption was collaboration in the development of reliable limited to 2 MW from the original 20 MW. and cost-efficient solutions for drive trains This means that the promoting effect of the and ice prevention systems in large wind grid reinforcement exemption will remain turbines has been started. small for wind power. Of the 3.5 million € granted for wind Wind energy deployment is slow in power projects in 2008, only 0.4 million € Finland, but even so there is discussion of was for public research (like the national the environmental impact of wind turbines. projects for IEA Wind Tasks), and the rest Land-use restrictions and visual pollution, was for company projects for wind technol- especially in relation to summer residents ogy development. WinWinD has developed and vacation activities, might yet prove 1-MW and 3-MW turbines for different a significant obstacle to development. To weather conditions. ABB has developed a overcome these problems, the Ministry direct-drive multi-pole permanent-magnet

IEA Wind 139 National Activities

Figure 10 Development of R&D funding for wind power in Finland: Tekes funding and total funding. wind turbine generator. The Switch compa- EU project Tradewind (2006-2009), VTT ny is developing multi-megawatt generators estimated the impact of wind power on and a modular series-connected frequency cross border flows in the European power converter. Moventas has several projects on system. As part of the EU project UP- gearbox load management. Pem-Energy Oy WIND, technologies to control the shape is developing small wind turbines. Hoxville of composite structures were developed has developed an embedded condition- at laboratory scale. In 2008, VTT imple- monitoring system to be used in wind mented a phenomenological macroscopic turbines. SMA-material model iRLOOP, created at the Czech Academy of Science, into Mat- 5.2 Collaborative research lab and ABAQUS. Development toward a VTT has been active in several interna- plug-and-play type adaptive trailing edge tional collaborative projects in the EU, which includes all needed sensors and ac- Nordic, and IEA frameworks. As part of the tuators has started.

Figure 11 An airfoil section with a plug-and-play type adaptive trailing edge. (Photo VTT, Tomi Lindroos).

140 2008 Annual Report Finland

The Finnish Meteorological Institute to cold climate technology development in (FMI) has been active in EU collaboration some Finnish industrial projects. for wind and ice measurement technology. FMI is coordinating the COST collabora- 6.0 The Next Term tion “Measuring and Forecasting Atmo- Up to 16 MW of new capacity will be spheric Icing of Structures,” in which VTT added in 2009. In addition, projects totaling is also participating. nearly 6,000 MW are in various planning Nordic Energy Research has two proj- phases in Finland. If the feed-in premium ects related to wind energy: VTT is par- takes effect in 2010, a strong growth of ticipating in a grid integration project, and the wind power market in Finland is VTT and FMI are participating in a project anticipated. investigating how climate change affects re- A new wind atlas is currently under newable energies. development by FMI with government VTT is taking part in the following budget funding and will be published at IEA Wind research tasks: the end of 2009. This will help to reduce • Task 11 Base technology information uncertainty when estimating the produc- exchange tion potential of the taller multi-megawatt • Task 19 Wind energy in cold cli- machines in the forested coastal areas of mates (operating agent) Finland. • Task 24 Integration of wind and hy- A next-generation blade heating system dropower systems is being developed in Finland, which will • Task 25 Design and operation of enable the use of the wind resource poten- power systems with large amounts of tial at arctic fell areas in Finland. Increas- wind power (operating agent). ing global demand for ice-free turbines is foreseen. Wpd Finland together with Motiva are participating in Task 28 Social acceptance Authors: Hannele Holttinen and Esa of wind energy projects. Work on Task 19 Peltola, VTT Technical Research Centre of wind energy in cold climates also has links Finland, Finland.

IEA Wind 141 National Activities

142 2008 Annual Report Chapter 17 1.0 Introduction Wind power will remain the greatest con- Germany tributor to the expansion of renewable energy in the electricity sector for the foreseeable future. In 2008, wind power gen- The aims and priorities of wind power eration accounted for some 6.5% of Ger- research are determined at regular BMU many’s gross electricity consumption, and is strategy meetings with experts. The most therefore already one of the main producers recent strategy meeting took place on 3 of electricity in Germany, ranking alongside and 4 November 2008 in Berlin. The out- conventional technologies. At the end of come of this meeting was reflected in the 2008, Germany had a total of 20,301 wind new BMU funding announcement on 20 turbines installed with an output of around November 2008, which lists the following 23,902 MW (compared with 22,250 MW main research priorities for the next few at the end of 2007). Despite the huge in- years: creases in many countries, 22% of installed • Contributing toward cost-reduction, output worldwide is still concentrated in increasing yields, and improving the Germany. Germany retained its leading availability of wind turbines international position in the construction • Technologies for the expansion of of new turbines with 1,665 MW, putting it offshore wind power (including rein third place behind the United States and search at the alpha ventus test site) China (Table 1). • Accompanying ecological research R&D supported by the Federal and technological optimization of Ministry for the Environment (BMU) wind turbines to reduce ecological experienced a considerable increase in impacts. 2008. R&D projects with a total financial volume of 40.1 million € have been 2.0 Progress Toward launched (Figure 1). National Objectives Current research and development The German government acknowledges priorities include helping to cut the cost of the importance of renewable energy, and producing and operating wind turbines, and in this regard national policy was generally hence the cost of generating wind power, continued. The EU target for Germany of as well as continuously improving the tech- 12.5% contribution to energy consump- nological requirements for the eco-friendly tion by all renewable energies in 2010 expansion of wind power. In 2008, BMU was already exceeded in 2007 with 14.2%. approved a total of 32 projects, including Therefore new targets were set in 2007. By some funding top-ups, with a total volume 2020, the government aims to increase the of nearly 40.1 million €. A total of 29.9 proportion of primary energy consumption million € was also allocated to ongoing re- generated from renewable energy sources search projects in 2008. to 16%, as compared with 5.6% in 2006.

Table 1 Key Statistics 2008: Germany Total installed wind generation 23,902 MW New wind generation installed 1,665 MW Total electrical output from wind 40.4 TWh Wind generation as % of national electric 6.5% demand Target: 30% of national electricity demand from RES in 2020.

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Figure 1 Development of funds for new R&D projects for wind energy research 2004 – 2008. Additional research into grid integration technologies related to wind energy has also been launched in 2008, with a ﬁ nancial volume of 14.6 million €.

The proportion of electricity consumption become well-established on the German from renewable sources will be increased to market over a period of many years. In at least 30%, and then will be continuously 2007, the German wind power industry expanded (1). generated some 7.6 billion € from turbines Although offshore development in and components alone (data of 2008 will Germany is currently behind the strategic be available in July 2009). According to the goal set by the government in 2002, me- Verband deutscher Maschinen- und Anla- dium- and long-term targets for offshore genbauer (VDMA/German Engineering expansion in the German seas (1,500 MW Federation), the export share is 83%. In by 2011; up to 25,000 MW by 2030) are 2008, more than 90,000 people in Ger- still relevant. Important steps were taken many were employed in the wind power with the Infrastructure Acceleration Act by sector. improving the conditions for investors in A recent forecast by the Deutsches offshore wind by obligating transmission Windenergie-Institut (DEWI/German system operators to pay for and install the Wind Energy Institute) predicts that around grid connection from the onshore grid ac- 210,000 MW of wind power will be in- cess point to the offshore wind farm toward stalled worldwide by 2014, which translates meeting these targets. Another step is the into an investment volume of around 130 revised Renewable Energy Sources Act billion €, with offshore technology and (EEG) that was enacted by the parliament repowering playing a key role. As soon as in July 2008. The beginning of the offshore offshore expansion picks up pace, the mari- construction of the first German offshore time industry anticipates a new boom. Sea- wind farm, alpha ventus, set a starting point ports such as Bremerhaven and Cuxhaven for future offshore development. have already prepared for this by investing in infrastructure. The aim is to advance 3.0 Benefits to the wind power generation through research National Economy and development, to reinforce German in- German wind turbine manufacturers and dustry’s position in this expanding market suppliers boast a global market share of and safeguard its future viability. more than one-third, thanks to sophisti- Cost ranges for turbines onshore and cated multi-megawatt turbines which have offshore in 2008 are summarized in Table 2.

144 2008 Annual Report Germany

Table 2 Estimated average turbine cost and total project cost for 2008 Turbine cost €/kW Total installed cost €/kW ONSHORE Rated Power 1.3 - 1.9 1,026 – 1,160 1,345 – 1,479 MW Rated Power 2.0 - 3.0 941 – 1,199 1,260 – 1,518 MW Rated Power > 3.0 MW 1,155 – 1,340 1,474 –1,659 OFFSHORE deep water, great coast 1,450 – 1,500 3,010 – 3,230 distance shallow water, low coast 1,350 – 1,450 2,625 – 2, 895 distance Data from Deutsche Windguard GmbH

4.0 National Incentive Programs grid integration (voltage and frequency An amendment of the Renewable Energy regulation) and for the lighting system. Sources Act was passed by the Parliament in July 2008 and came into force on 1 Janu- 4.2 Wind energy offshore ary 2009. The aim is to increase the share of Turbines put into operation by 31 Decem- renewable energy in the German electricity ber 2015 receive an initial remuneration portfolio to at least 30% by 2020. This is in- of 0.15 €/kWh for 12 years. After that tended to counteract the dramatic increase period, the basic tariff is 0.035 €/kWh in energy and raw material prices (especial- until the maximum remuneration period ly for steel and copper) and to promote the (20 years plus year of commissioning) is lagging offshore development in Germany. reached. The initial remuneration will be prolonged for wind farms more than 12 4.1 Wind energy onshore nautical miles away from the coast and in The amendment of the Renewable waters deeper than 20 m. For wind turbines Energy Sources Act includes an initial installed after 31 December 2015, the initial remuneration of 0.092 €/kWh for at tariff will be 0.13 €/kWh for a period of least 5 years and a maximum of 20 years, 12 years. A reduction of 5% per year will depending on the quality of the site ac- start for new wind turbines after 2015. A cording to the reference yield model. new principle is that operators can sell the After the initial remuneration period, the electricity produced directly to third par- tariff is 0.0502 €/kWh for a maximum ties on a “calendar-monthly” basis (without of 20 years. Remuneration will be paid EEG-remuneration). only for wind turbines with at least 60% yield of the defined reference. A reduc- 5.0 R, D&D Activities tion of 1% per year begins in 2010. For 5.1 Structure of research two cases there is a special extra payment The study “On the structure of wind power of 0.005 €/kWh (until 2013) for repow- research in Germany” was commissioned by ering and for turbines fulfilling technical BMU and conducted by the Internationales requirements for the improvement of Wirschaftsforum Regenerative Energien

IEA Wind 145 National Activities

(IWR/International Economic Forum has created a top cluster for wind power Renewable Energies). German wind power research in Germany. research is characterized by a large number of decentralized institutions, which makes it 5.2 Projects different from other areas of energy research In 2008, BMU supported 123 on-going such as photovoltaics, as well as from the research projects in the wind power sec- research structures in other countries. The tor, with the development of offshore authors recommend the establishment of wind power a top priority. The 28 newly powerful, internationally visible players in launched projects focus on the following wind research. To this end, they recommend priority areas: the expansion of regional priority areas, and • Completion of the RAVE research identified the region around Bremen and network in the test site alpha ventus Bremerhaven in the North of Germany with regard to foundations, grid in- and the Rhine/Ruhr region in the West as tegration, accompanying ecological regional clusters. research, and a central measurement The study has helped to stir up the project wind power research scene, and ensure the • Developing new variants of founda- continuing evolution of structures in wind tions and supporting structures and power research. Of central importance in new technologies for their production, this connection is the foundation of the including noise reduction in offshore Fraunhofer-Institut für Windenergie und expansion Energiesystemtechnik (FhG-IWES/Fraun- • Improvement of the design of rotor hofer Institute for Wind Energy and Energy blades using new materials Systems Technology) on 1 January 2009. • Developing new multi-megawatt At the heart of the institute is the Fraun- wind turbines and demonstrating them hofer Center für Windenergie und Meer- under near-shore conditions. estechnik (CWMT/Fraunhofer Centre for Wind Power and Offshore Technology) in 5.3. Offshore wind power Bremerhaven, with the rotor blade compe- 5.3.1 Alpha ventus test site tence center funded by the BMU and Bre- The first German offshore wind farm al- men. When the Institut für Solare Energie- pha ventus is under construction 45 km versorgungstechnik (ISET) is incorporated North of the North Sea island of Bochum. during the course of 2009, the FhG-IWES The company DOTI GmbH, owned by will gain a second branch in Kassel, draw- the power utilities EWE, E.ON, and Vat- ing on many years of experience in wind tenfall, will construct and operate 12 wind power research. There are also plans to forge turbines from Multibrid and REpower, close co-operation links between the FhG- with a total installed capacity of 60 MW. IWES and the universities of Hanover, Old- The first structure for alpha ventus was the enburg, and Bremen. transformer substation, completed in 2008 The latter have joined forces to form with a height of 60 m and weighing more the university wind energy research cen- than 1,300 tons. The transformer substation ter ForWind. The establishment of two is located around two km from the BMU Fraunhofer project groups at the universi- research platform FINO 1. The submarine ties of Hanover and Oldenburg will help to cable was also laid in 2008. Unfortunately, forge close co-operation. Kassel University construction of the 12 wind turbines, orig- will also be co-operating with the IWES. inally scheduled to begin in August 2008, Together, IWES and the participating uni- had to be postponed until 2009 due to un- versities cover almost the entire spectrum favorable weather conditions. As a test and of wind power research. This constellation demonstration project, alpha ventus will

146 2008 Annual Report Germany mark the start of the use of offshore wind and migrating birds, fish, and biotic com- power in Germany. munities on the ocean floor). As such, they The research initiative RAVE was far exceed the requirements specified in the launched in May 2008 with a kick-off analysis concept. Based on the results, the event in Berlin. At the event, research BSH will optimize the analysis concept for projects at the alpha ventus test site were the licensing of further wind farms. Evalu- presented to a large expert audience for the ation of the analysis concept is the largest first time. The main priorities of RAVE are accompanying ecological research project to explore wind as a “raw material,” to in- to date. At the kick-off event in Novem- vestigate the technical requirements placed ber 2008, some 70 experts from academia, on wind turbines and their foundations, and research institutes, the wind industry, and to focus on grid integration and accompa- policy and government authorities were nying ecological research. The Bundesamt told about the initial findings. (BMU fund- für Seeschiffahrt und Hydrographie (BSH/ ing total: 5 million €). Federal Maritime and Hydrographic Agen- The BSH is managing and coordinat- cy) and the Deutsches Windenergieinstitut ing the measurement technology, as well (DEWI/German Wind Energy Institute) as providing maintenance and support for are involved in measurement and data col- measurements from all research projects. lection, while the RAVE projects are being Installation of measuring equipment was coordinated by ISET in Kassel. By the end completed on time in 2008. Over 200 of 2008, BMU had approved 20 projects sensors have been installed on the founda- with a total of 33.7 million € for research at tions of one of the wind turbines, and will the test site. provide information on power distribution, By signing a co-operation agreement, dynamics, position, water temperature pat- researchers and industry have set them- terns, and sediment deformations in the vi- selves the joint target of deriving maximum cinity of the foundations. Once sited in the knowledge and experience from operation alpha ventus wind farm, the sensor-covered of the offshore test site which will benefit tripod foundation will be situated just 850 future wind power use on the high seas. m from the FINO 1 research platform. Further information is available at: http:// rave.iset.uni-kassel.de/rave/pages/welcome 5.3.2 Technological development The BSH, as the authority for the li- In January 2008, the IWES/Fraunhofer- censing of offshore wind farms, has drawn Institute for Wind Energy Research and up a standard analysis concept to provide a Energy System Technology started work on framework for the ecological analyses re- construction of the rotor blade competence quired for the licensing, construction, and center in Bremerhaven. The first section of operation of an offshore wind farm. The the test center to be completed has a hall analysis concept is being used for the first for 70-m rotor blades. In the hall, measur- time in the construction phase of the alpha ing 17 m wide, 84 m long and 20 m high, ventus wind farm. In order to investigate these rotor blades can be subjected to in- whether the defined methods and specified depth analysis. To this end, they are screwed standards are adequate, appropriate, and ef- into a foundation made from 4,000 tons fective, the StUKplus project will formulate of steel-reinforced concrete, and subjected broad-based ecological research activities in to months of vibrations, during the course order to evaluate the analysis concept. The of which the blade tips are deflected up to work is being coordinated by the BSH and 17 m. The tests are accompanied by state- is dedicated to determining the potential of-the-art measurements. The aim of the impacts of the wind farm on various pro- project is to ensure that the rotor blades are tected species (marine mammals, resting fit to withstand 20 years of offshore and

IEA Wind 147 National Activities onshore use. Phase two of the complex, for Over the next few years, demand for rotor blade lengths of up to 90 m, as used foundations for offshore wind farms will in future offshore wind farms, is currently grow. With this in mind, WeserWind GmbH in the final planning stages. The test rigs Offshore Construction Georgsmarienhütte, are part of the BMU-funded project In- in collaboration with other companies and noBladeTeC, in which Fraunhofer-IWES IWES, is launching a joint project to pave is collaborating with industry to develop the way for high-quality and cost-effective new test methods designed to prepare rotor mass production of offshore foundations. blades for the extreme loads at sea. Mea- There are currently no production facili- surements are carried out on whole rotor ties in the world that are suitable for mass blades, and supplemented by test rigs to production of this type of steel structure allow much cheaper component testing, as weighing several hundred tons. In this proj- well as a climate controlled chamber which ect, the principles of production automa- allows the simulation of offshore condition and quality management already used tions. In 2008, a project extension was ap- in automotive engineering, for example, are proved. In the future, the rotor blades will to be adapted for the production of offshore be simultaneously deflected both vertically wind turbine foundations. (BMU funding and horizontally during the load tests. (total total: 2.8 million €). BMU funding: 11.1 million €). On 28 October 2008, the commissioning of the BARD multi-megawatt 5.3.3 Foundations nearshore wind turbine took place. The Several companies and research institutes BARD VM installed at this site has a rated are participating in the OGOWIN project output of 5 MW with a total height of 152 (optimization of jacket foundation struc- m and a rotor diameter of around 120 m. tures for offshore wind farms with regard to BARD VM used the innovative BARD material consumption, assembly sequence, “Tripile Foundation” for the first time with and new production techniques) to develop this project. It is comprised of three piles, a modular system for the foundation struc- each weighing 210 tons, with a supporting tures of offshore wind farms. In February cross-section on top weighing around 49 2008, early results from the OGOWIN tons which carries the tower. The nearshore project were incorporated into the world’s facility was installed around 400 m from first jacket foundation with cast junctions the shore near Hooksiel outer harbor, in for offshore wind farms, which WeserWind a water depth of 2-8 m depending on the GmbH has constructed onshore in Bremer- tide. As part of the project, BARD will be haven as a test foundation. It supports a 5M testing the entire production, construction, type 5-MW turbine from REpower. The and operation logistics at the nearshore site. particular feature of this jacket is its cast (BMU funding total: 1.9 million €). junctions, which produce a highly efficient The aim of the joint project “Founda- and stable structure. The project is led by tions of offshore wind farms from filigree WeserWind GmbH Offshore Construction concrete structures with a particular focus Georgsmarienhütte, with the involvement on the fatigue behavior of high-strength of HOCHTIEF Construction AG, and concrete” by the Institute of Concrete EUROPIPE GmbH. Participating research Construction at Leibniz University Ha- institutions include IWES, the Institut für nover and Ed. Züblin AG is to develop the Statik und Dynamik at Leibniz University most lightweight possible filigree structure Hanover, and the Bundesanstalt für Materi- of high-strength concrete (HPC) for the alforschung und –prüfung. (BMU funding foundations of offshore wind turbines. De- total: 2.3 million €). velopment focuses on the dynamic interaction between the foundation structure and

148 2008 Annual Report Germany the turbine, with the foundation initially A project by Deutsche WindGuard being designed for a 5-MW turbine. GmbH aimed to make the operation of Parallel to the development of the offshore wind farms more cost-effective by foundation structure, the research team identifying the optimum service vehicle. will also concentrate on manufacturing The alternatives considered were a Small techniques, transportation and assembly Waterplane Area Twin Hull (SWATH), devices, as well as the necessary logistics catamaran, crew boat, and helicopter. These for subsequent mass-production and instal- vehicles are designed to transport main- lation of the foundation structure. Finally, tenance staff safely to the wind farm even the research team will look at devising the in heavy swell. A subsequent cost analysis most cost-effective overall solution possible. revealed that a SWATH is the most cost- (BMU funding total: 350,700 €). efficient alternative, particularly for large Herrenknecht AG, market leader in offshore wind farms. For optimum opera- the production of tunnel-boring machines, tion, the combination of a SWATH craft is carrying out a feasibility study to de- plus a helicopter was identified as the op- termine whether the Herrenknecht Verti- timum solution for offshore wind farms. cal Shaft Machine (VSM) is suitable for The project team also drafted technical use in the construction of offshore wind recommendations to optimise the SWATH farms. Unlike pile driving, boreholes are in terms of its suitability for offshore use in less dependent on the local geology and the servicing of wind farms. (BMU funding can therefore offer benefits, for example, total: 46,500 €). with regard to noise emission levels in the The project developer PTS GmbH construction of turbines. Other project has designed a system allowing assembly partners include IMS Ingenieurgesellschaft personnel and spare parts to be transported mbH from Hamburg and the Institut für safely onto the platforms of offshore wind Geotechnik (Geotechnical Institute) at turbines in a wide range of weather con- Hamburg-Harburg Technical University. ditions. The Personnel Transfer System (BMU funding total: 77,000 €). (PTS) consists of a crane mounted on the platform of the wind farm. Personnel and 5.3.4 Construction and logistics equipment can be suspended from a hook Experience acquired during 2008 with the and lifted onto the platform from the ship. construction of the FINO 3 research plat- An adaptive control system ensures that the form and the alpha ventus wind farm have distance between the hook and the ship highlighted the decisive role of technolo- always remains the same, even in rough seas. gies for the construction and installation This system allows almost year-round safe of offshore turbines (such as construc- access to offshore wind farms. This increases tion ships, jack-up platforms, cranes, etc.). accessibility and safety, and also helps to Without adequate installation technology cut assembly and maintenance costs. PTS adapted to the specific requirements of off- GmbH is a joint venture between Teupen shore wind turbines, it will be impossible to Maschinenbau GmbH and ep4 offshore continue expanding offshore wind power GmbH. In 2008, Teupen constructed and at the planned rate. Priorities here include tested a prototype of the system. (BMU the efficient handling of transportation and funding total: 158,000 €). assembly, and minimizing the influence of The Institut für Seeverkehrswirtschaft waves, currents, and wind on the construc- und Logistik (ISL/Institute of Shipping tion process. During the operational phase, Economics and Logistics) undertook a logistics are also needed to give year-round study to investigate the extent to which access for the maintenance and repair teams, modern, coordinated logistics concepts if possible.

IEA Wind 149 National Activities and models from other industries may be In February 2008, Deutsche Wind- transferred to the wind power sector. The Guard GmbH began operation of a wind study focuses on offshore logistics and the tunnel center in Bremerhaven, capable of export market, and examines concrete case creating wind speeds of up to 250 km/h. examples. The aim is to calculate logistics Over a working section of 14 m, experi- costs and illustrate potential cost-cutting ments are conducted on models and origi- measures. As logistics are estimated to ac- nal wind turbine parts. The acoustically count for between 15 and 20% of the costs optimized wind tunnel is used to improve in an offshore wind farm, this project could the aerodynamic components of wind tur- potentially make a decisive contribution bines. In collaboration with the wind farm toward improving the cost efficiency of industry, the center will address scientific offshore wind farms. (BMU funding total: and technical issues, with a particular em- 296,000 €). phasis on the optimization of rotor blade Ed. Züblin AG is developing an in- profiles to improve the efficiency of wind novative vertical lifting device for the final farms, the acoustic optimization of rotor assembly of nacelles for offshore wind blade profiles to minimize sound emission, turbines weighing up to 500 tons. The and the identification and optimization of proposed device lifts the nacelles from the load profiles on rotor blades. (BMU funding transporter ship onto the tower. This will total: 753,000 €). dispense with the use of expensive assembly A project to make wind farms more units such as floating cranes and jack-up compatible with the requirements of civil platforms, whose availability until now has and military airspace, monitoring was con- been limited, at least for parts of the assem- cluded by EADS Deutschland GmbH bly process. The project is being carried out (European Aeronautic Defence and Space in collaboration with Berg-idl GmbH, Of- Company). The project included the de- fenburg University and Karlsruhe Univer- velopment of technologies for radar en- sity. (BMU funding total: 475,000 €). gineering which enable the detection and In a theoretical study, F+Z-Baugesell- suppression of signals from wind farms schaft mbH defined the application condi- that can potentially interfere with airspace tions and requirements for a jack-up plat- monitoring. Recommendations for mini- form for the construction of offshore wind mizing radar reflections from the turbines farms. In the follow-up project, completed were drawn up as well. (BMU funding total: in 2008, the company developed a specific, 1 million €). certified technical design for this purpose. PN Rotor GmbH is working on the The new type of jack-up platform will be development and construction of a par- capable of withstanding wave heights of up tially automated surface coating for rotor to 2.5 m, making it usable in at least 75% of blades. It is hoped that this will reduce all weather situations throughout the year. wear and tear on the rotor blades during (BMU funding total: 93,000 €). operation and minimize the work involved in surface treatment. Coating systems are 5.4 Onshore technological research being selected and tested in collaboration Although offshore wind power is currently with suppliers. In a subsequent stage, the the greatest technological challenge for team will develop suitable automated ap- wind power development, onshore technol- plication techniques and the edges of the ogy still offers the largest expansion poten- rotor blade will be given special edge pro- tial in global terms. Here, older wind farms tection. The partially automated finish is to are increasingly being replaced by more be used in the new rotor blade production powerful technology (repowering) in order plant at PN Rotor for the construction of to make optimum use of the energetic and large offshore rotor blades. (BMU funding economic potential of wind power. total: 846,600 €).

150 2008 Annual Report Germany

UpWind is currently the largest wind performance curves of the turbines and to power project funded by the European perform load analyses. Union. Since 2006, some 40 companies The research platform FINO 2, lo- and research institutions across Europe have cated 45 km North of Rügen at the Baltic been working on this project to develop Sea, has been recording wind data and models for key components of large wind hosting ecological research projects since turbines with outputs of up to 10 MW. summer 2007. The wind measurements The recently established IWES (formerly utilize the same regime as on FINO 1. CWMT) is collaborating closely with the Since 2008, the data has likewise been UpWind network as an associated part- fed into the ODIN database of the BSH, ner in a research project funded by BMU. where it is available for downloading IWES is also developing new test methods alongside the FINO 1 data. for rotor blades. It is hoped that, rather than In late July 2008, offshore work began testing the vibration resistance of entire ro- on construction of the FINO 3 research tor blades, it will be possible instead to per- platform around 80 km North-West of form static and dynamic load tests on rotor the North Sea Island Sylt. To this end, a 55 blade spars. m long steel pipe (monopile) was driven At the same time, IWES is contributing into the sea bed in water depths of 23 m. to the materials database “OptiDAT” within The surface of the monopile is fitted with the framework of UpWind, and helping a comprehensive array of sensors from to define a certification methodology for Braunschweig University, which will later rotor blade materials. (BMU funding total: measure how the pile is embedded in the 597,200 €). seabed. Researchers were anxious to discov- er how well the sensitive technology would 5.5 Research platforms survive the pile-driving process. Thanks to Since summer 2003, the research platform special protective covers, almost all sensor FINO 1 in the North Sea has collected holders have remained fully functional, de- data on wind, waves, currents, and bird spite having been driven more than 20 m migration. It has also played host to other into the seabed. ecological research projects. To date, the In order to reduce noise emissions, the BSH has recorded around 150 incidences company Hydrotechnik Lübeck GmbH of data use by industry and research. FINO was commissioned by Forschungs- und 1 is acquiring still greater significance Entwicklungszentrum FH Kiel GmbH to thanks to the offshore test site alpha ven- construct an air bubble curtain with a ra- tus, which is located just a few hundred dius of 70 m around the construction site. meters away. Back in early 2002, the plan- Scientists at Hanover University and the ners deliberately sited FINO 1 in the main Institut für technische und angewandte approach to this pilot wind farm so that Physik GmbH (ITAP) investigated the ef- measurement data could be evaluated in fectiveness of this measure and recorded the combination with data from the turbines. sound pressure levels at various distances FINO 1 is an important research tool for around the site. Initial data analysis suggests the 20 research projects in the alpha ventus that the air bubble curtain achieved a total test site now approved under the RAVE noise reduction of 12 decibels, with a 30 research initiative. One turbine each from to 35 decibel reduction in the frequency the companies Multibrid GmbH and range between 1 and 7 kilohertz. Biologists REpower Systems AG will be equipped also spent several days studying the effec- with extensive research technology as part tiveness of measures to protect porpoises. of RAVE. FINO 1 wind measurement Initial results indicate that during construc- data will then be used to determine the tion, no porpoises entered the hazardous

IEA Wind 151 National Activities zone around the site. Two weeks later, the part of its “Finobird” project. In order to number of porpoises had returned to pre- be able to track the flight paths of sea birds construction level. and migratory birds more accurately, the “Finorad” project will convert a decom- 5.6 Environmental research missioned weather balloon tracking radar and optimization from the German army to enable it to be The expansion of offshore wind power use used for ecological research purposes. With is accompanied by a wide range of projects the help of this system, it will be possible to on ecological issues. The effects on birds, monitor even small birds over distances of marine mammals, fish, and benthic organ- many kilometres, and to derive information isms are investigated, and legal aspects are regarding the spectrum of species. The new taken into account. radar will therefore set a new state of the art The research project “Marine mam- in ornithological offshore radar technology, mals in the North and Baltic Seas” (MI- which will help to intensify our knowledge NOS+) was successfully completed in early of bird migration. Scientists hope this study 2008. This was a joint project between the will enable them to quantify the potential Leibniz-Institut für Meereswissenschaften impacts of wind farms on bird migration. If (IFM-GEOMAR/Leibniz Institute for the project is successful, there are plans to Marine Sciences at Kiel University), Forsc- use the new technology for the first time hungs- und Technologiezentrum Westküste in the vicinity of the offshore test site alpha (Büsum), the Deutsches Meeresmuseum ventus. (BMU funding amount: 175,000 €). Stralsund (German Oceanographic Mu- In a joint project, Leibniz University seum) and the Nationalparkamt (National Hanover, Erlangen University, Enercon Parks Office) Schleswig-Holsteinisches Wat- GmbH, and the Forschungsinstitut für Op- tenmeer. The project represents a milestone tronik und Mustererkennung (FOM/Re- in accompanying environmental research. search Institute for Optronics and Pattern Firstly, it examined the habitats, migration Recognition) are developing methods to routes, and distribution patterns of porpois- analyze and reduce the risk of bat collision es, seals, and seabirds, and secondly, analyzed with onshore wind farms. Based on pre- the hearing sensitivity of porpoises and dictions, practical methods will be derived seals. This unique data record provides the aimed at reducing and avoiding possible bat basis for numerous new findings on the dis- strikes. (BMU funding total: 1.1 million €). tribution, behavior, seasonality, and sensitiv- The Michael-Otto-Institut within the ity of such species. The methods developed Naturschutzbund Deutschland (NABU/ will be used in future marine monitoring Nature and Biodiversity Conservation and accompanying studies in Germany. The Union), BioConsult SH, and the Leibniz- study has broadened the ecological knowl- Institut für Zoo- und Wildtierforschung edge of Germany’s marine regions, and (Leibniz Institute for Zoo and Wildlife significantly improved our understanding Research) are exploring the reasons for of ecological correlations, creating a tenable possible collisions between birds of prey scientific basis for the licensing of offshore and wind turbines, with a special focus on wind farms. The data will be permanently red kites, sea eagles, and Montagu’s har- stored in a database in the National Parks riers. In order to be able to systematically Office created specifically for this purpose. investigate the behavior of birds in various (BMU funding total: 3.4 million €). parts of Germany, the birds of prey are fit- The Institut für Vogelforschung “Vo- ted with small satellite receivers, rather like gelwarte Helgoland” (IfV/Institute for Bird navigation systems, and terrestrial VHF Research) has already conducted numer- transmitters. In this way, flight movements ous studies into potential impairments of in the vicinity of wind farms are logged, migrating birds by offshore wind farms as and compared with standardized behavior

152 2008 Annual Report Germany records. The observations provide insight funding in the Renewable Energy Sector, into potential avoidance and minimization Federal Ministry for the Environment, measures. (BMU funding total: 802,000 €). Nature Conservation and Nuclear Safety, Germany. 6.0 The Next Term Improving the conditions for investors in Authors: Joachim Kutscher, Forsc- offshore wind should stimulate activity in hungszentrum Jülich GmbH, PtJ; Joachim 2009. The first German offshore wind farm Nick-Leptin and Ralf Christmann, alpha ventus will begin operation in 2009 Federal Ministry for the Environment, and increased research funding will provide Nature Conservation and Nuclear Safety interesting results in the next years. (BMU), et al.

References (1) Innovation through Research, Annual Report 2008 on Research

IEA Wind 153 National Activities

154 2008 Annual Report Chapter 18 1.0 Introduction The target established for Greece under Greece the European Union’s Renewable Energy Directive, Directive 2001/77/EC, is that at least 20% of electricity supply should come of Directive 96/92/EC for the liber- from renewable sources by 2010. Although alization of the electricity market (OJ this seemed an ambitious target, the ap- L27/30.1.1997). The basic law was revised proval of the Specific Framework of Plan- by Law 3175/2003, “Exploitation of the ning Design and Sustainable Development geothermal potential, district heating and for the Renewable Energy Sources (from other provisions” (Official Gazette A 207) the Ministry for the Environment, Physical and Law 3426/2005, “Precipitation of the Planning and Public Works) will enforce liberalisation process of the electricity mar- the development of renewable energy ket” (Official Gazette A 304). sources (RES) in Greece. The new frame- Today, the RES deployment regime work aims at: is governed primarily by Law 3468/2006, • The formation of planning policies “Generation of electricity from renewable for RES projects, energy sources and through high-efficiency • The establishment of rules and stan- co-generation of electricity and heat and dards for the development of efficient miscellaneous provisions” (Official Gazette RES installations and their harmonious A’ 129). The text of the law and its circular penetration into the environment, and D6/F1/oik.21691/30.10.2006 are posted • The creation of sufficient mecha- on the Ministry of Development web site nisms of RES planning. (http://www.ypan.gr). Table 2 provides the feed-in tariff for Last, the Specific Framework of Plan- wind energy. The list of prices is based on ning Design and Sustainable Develop- the price in euros per megawatt-hour (€/ ment for the Renewable Energy Sources MWh) of electric energy absorbed by the is expected to decrease the difficulties of grid, including the grid of non-intercon- land selection and to lessen bureaucratic nected islands. bottlenecks. During 2008, four large wind farms 2.0 Progress Toward National were installed, having capacities in the Objectives range of 15 MW to 24 MW each. The Apart from the obvious environmental and total installed capacity of wind generators social benefits of using renewable energy reached 990 MW. sources, the economic benefits from their The electricity sector operates within development are huge, as they gradually the framework set by Law 2773/1999 promote Greece’s independence from im- “Liberalisation of the electricity mar- ported energy and finite fuel sources. ket—regulation of energy policy issues and Directive 2001/77/EC, On the Pro- other provisions” (Official Gazette A 286). motion of Electricity Produced from Re- This law was enacted for the transposition newable Energy Sources in the Internal

Table 1 Key Statistics 2008: Greece Total installed wind generation 990 MW New wind generation installed 115 MW Total electrical output from wind 2.3 TWh Wind generation as % of national electric demand 3.7% Target: 3,370 MW

IEA Wind 155 National Activities

Table 2 Energy Tariff (€/MWh) for 2008 Electric energy production Interconnected Non-interconnected islands Wind onshore 80.14 91.74 Wind offshore 97.14

Electricity Market, sets an indicative target 3.0 Benefits to National Economy for Greece to cover a part of its gross na- 3.1 Market characteristics tional electricity consumption by 2010 Wind energy represents an enormous op- from RES equal to 20.1%, with the con- portunity to attract foreign investments tribution of large-scale hydroelectric plants into Greece and is also a challenge for the included. This target is also compatible with country’s business world. In the last decade, the international commitments of Greece interest has increased among, mainly, con- resulting from the Kyoto Protocol. Based struction companies and individual inves- on expected electricity consumption in tors for wind energy–related projects. Wind 2010, production of electric power from energy deployment has become a challeng- RES on the order of 14.45 TWh (including area for development all over the coun- ing large-scale hydroelectric plants) is set try—especially in areas having poor infra- as the goal for 2010. To meet these goals, structure, in which some of the most prom- the installed capacity of wind farms should ising sites for wind energy development can reach the level of 3,193 MW, and the cor- be found. Although manufacturing of wind responding energy generated should be on turbines has not been established in Greece, the order of 8.1 TWh. there is considerable domestic added value In 2008, the installed capacity of the in connection with infrastructure works, wind turbines reached 990 MW, showing for example, grid strengthening, tower an increase over the previous year of 13%. manufacturing, road and foundation con- In 12 separate projects, a total of 72 wind struction, civil engineering works, and so energy conversion systems, with an in- on. In addition, new jobs are created related stalled capacity of approximately 115 MW, to maintenance and operation of the wind were connected to the electricity supply farms in mainly underdeveloped areas. An network. The current estimation of wind expanding network of highly experienced energy production in 2010 ranges between engineering firms has been created and 2,040 MW (conservative scenario) and is currently working on all phases of the 3,193 MW (optimistic scenario) (1). The development of new wind energy projects. development of wind energy within the Thus, wind energy is gradually becoming a past 10 years is shown in Figure 1, which considerable player contributing in the de- depicts total installed capacity per year. velopment of the country. The distribution The energy produced from wind tur- of installed wind farms throughout Greece bines during 2008 was approximately 2,300 is depicted in Figure 3. GWh. The energy produced in the previous five years was 1,873 GWh (2007), 1,683 3.2 Industrial development and GWh (2006), 1,270 GWh (2005), 1,130 operational experience GWh (2004), and 1,020 GWh (2003). Fig- No significant manufacturing developments ure 2 shows the electricity produced from occurred in 2008 apart from the continu- wind turbines during the past ten years. ing involvement of the Greek steel industry

156 2008 Annual Report Greece

Figure 1 Cumulative installed wind capacity in Greece.

Figure 2 Electricity produced from wind turbines in Greece. in wind turbine tower manufacturing. The gearbox failure and lightning strikes. No average capacity of wind turbines installed major events leading to extensive wind in 2008 was 1,657 kW, while the average farm outages have been reported. capacity of all the wind turbines operating in the country was 832 kW (Figure 4). The 3.3 Economic details market share per manufacturer is depicted The total cost of wind-power projects de- in Figures 5 and 6. pends on the wind turbine type, size, and Wind farm malfunctions that have been accessibility. This cost ranges from 1,000 to reported up to now are mainly related to 1,200 €/kW and is mainly influenced by

IEA Wind 157 National Activities

Figure 3 Distribution of installed wind farms in Greece.

Figure 4 Average capacity of wind turbines installed in 2008 and operating in Greece.

158 2008 Annual Report Greece

Figure 5 Market share of wind turbine manufacturers (as a percentage of total wind turbines installed).

Figure 6 Market share of wind turbine manufacturers (as a percentage of total installed capacity). international market prices and intercon- Energy and Technology numbered Δ6Φ1/ nection costs. The cost of generated wind ΟΙΚ.8295/19.4.95 (ΦΕΚ 385/10.5.95); power could be assumed to be between and Law 2773/99. This electricity either is 0.026 and 0.047 €/kWh, depending on the produced by independent producers or is site and project cost. The typical interest the surplus of auto-producers and comes rate for financing wind energy projects is from either RES or CHP. There is no ca- 7% to 8%. pacity charge on purchases from producers In the liberalized electricity market, in non-interconnected islands. as well as before, a single price exists in the so-called interconnected system and 4.0 National Incentive Programs in the autonomous systems, depending Until 2008, financial support for wind on the identity of the consumer and the energy projects was provided by the state voltage class. This price list concerns the within the framework of the Operational tariffs of electricity purchased since August Program for Competitiveness (OPC), 2006 by the Hellenic Transmission Sys- 2000–2006, and the Law for Development tem Operator according to Law 2244/94; 3299/2004. The OPC raises resources from the decision of the Minister of Industry, the Third Community Support Framework

IEA Wind 159 National Activities to provide public aid to renewable energy has developed and operates its Laboratory sources and energy saving, substitution, and for Wind Turbine Testing, which has been other energy-related actions. As 2008 was accredited under the terms of ISO/IEC the ending year of the Third Community 17025:2000. Support Framework, most of the projects Several research projects were running financed by the OPC have been finalized. at CRES during 2008, co-funded by the Within the OPC, 29 wind energy projects European Commission and the Greek Sec- of 468 MW total installed capacity have retariat for Research and Technology. These been approved. Twenty of them (295 MW research projects had the following goals: total installed capacity) were successfully • Characterizing the main features of finalized, providing approximately 700 complex or mountainous sites and GWh/year to the national grid. identifying the crucial parameters af- In January 2008, the Greek Ministry of fecting both the power performance Economy and Finance announced a new and the loading of different types program entitled National Strategic De- of wind turbines operating in such velopment Plan (NSDP), 2007–2013. The environments NSDP raises resources from the Fourth • Developing wind turbines for instal- Framework Programme to reinforce the lation in hostile environments investment activities of the private sector • Improving the damping characteris- and strengthen the productive potential tics of wind turbine blades of the country. Additionally, financial sup- • Developing new techniques for pow- port for wind energy investments is fore- er quality measurement and assessment seen through the Law for Development • Increasing understanding of wind 3299/2004, which provides grants of up to turbine standardization procedures 40% of the total investment. • Developing blade material testing techniques in the in-house experimen- 5.0 RD&D Activities tal facility The Ministry for Development promotes • Understanding generic aerodynamic all R&D activities in the country, includ- performance of wind turbine blades ing applied and basic R&D as well as through computational fluid dynamics demonstration projects. Key areas of R&D (CFD) techniques in the field of wind energy in the country • Developing cost-effective microsit- are wind assessment and characterization, ing techniques for complex terrain standards and certification, wind turbine topographies. development, aerodynamics, structural loads, blade development, noise, power quality, In the Laboratory for Wind Turbine wind desalination, and autonomous power Testing of CRES, the project titled “Devel- system integration. There is limited activity opment of Infrastructures and Laboratory in Greece concerning offshore deployment. Support of CRES” (Measure 4.2, Action 4.2.2, of the operational program “Compet- 5.1 Activities of CRES itiveness”) ensures the update of its equip- CRES (Center for Renewable Energy ment and services. The project involves the Sources) is the national organization for the optimization and integration of equipment promotion of renewable energy in Greece. and services related to power quality mea- It is mainly involved in applied R&D in surements, load measurements, wind speed the fields of aerodynamics, structural loads, measurements, and so on. Two of the most noise, power quality, variable speed, wind significant purchases by the CRES Wind desalination, standards and certification, Turbine lab under this project were the wind assessment, and integration. CRES continuous-wave light detection and ranging system (LIDAR) Zephyr from Qinetiq

160 2008 Annual Report Greece and the pulsed-wave LIDAR (windcube • Microgrids with high penetration mode) from Leosphere, for wind speed from distributed energy resources, measurements up to 150 m and higher. The concentrating on simulation algorithms project was completed in September 2008. and on control and communication CRES is responsible for the develop- technologies ment of the New Wind Map of Greece, • Investigation of wind power integra- which aims at the exploitation of coun- tion potential to the Greek intercon- try’s wind potential and at the promotion nected power system and development of wind energy technology through new of grid code recommendations investments. The work involves the instal- • Application of pumped storage to lation of 40 new masts. The Regulatory increase wind penetration levels in iso- Authority for Energy (RAE) assigned the lated island grids development of the map to CRES. The • Investigation of PV penetration po- project was completed at the end of 2008. tential in isolated island grids • Technical issues and feasibility stud- 5.2 University research ies for the interconnection of isolated Basic R&D on wind energy is mainly per- island grids to the mainland power formed at Greece’s technical universities. system The Fluids Department of the Mechani- • Advanced short-term wind power cal Engineering school of the National forecasting functions for operational Technical University of Athens (NTUA) is planning, using numerical weather active in the fields of wind modeling, rotor predictions and advanced artificial in- aerodynamics and aeroelasticity, load calcu- telligence techniques lation, fatigue analysis, noise, and wind farm • Power quality analysis of wind tur- design. bines and wind farms, with a particular Since 2007, NTUA, in collaboration emphasis on harmonic emissions with CRES, developed a new eigenvalue • Design of electrical generators and stability tool for the analysis of the com- converters for small wind turbine plete wind turbine in closed-loop opera- applications, with a particular focus tion (i.e., including the control loop). Also, on permanent magnet synchronous NTUA participated in the EC-funded generators project UPWIND, which is aimed at de- • Research on small stand-alone sys- veloping the computational framework tems fed by renewable energy sources, for the design of future large-scale wind including the design of the electrical turbine applications (beyond the current and control systems for completely 5-MW scale). Within this project, NTUA autonomous wind-driven desalination developed and tested new aeroelastic tools systems capable of treating the large deflections an- • Development of laboratory infra- ticipated in future large-scale highly flexible structure for renewable and distributed blades. New load control techniques such as energy systems and participation in a trailing edge flap have also been tested in relevant laboratory and pre-standard- the context of advanced 3-D aerodynamic ization activity networks. modeling using the in-house free wake code GENUVP. Since 1990, the Applied Mechanics In 2008, the Electric Power Division of Section of the Department of Mechanical NTUA continued its research activities on Engineering and Aeronautics, University renewable and distributed energy resources, of Patras (UP), has focused on educational focusing on several aspects of their technol- and R&D activities involving composite ogies and grid integration issues. Specific materials and structures. Emphasis is given research areas include the following:

IEA Wind 161 National Activities to anisotropic material property character- wind turbines, an activity that is supported ization, structural design, and dynamics of by the involvement in the activities of Task composite rotor blades of wind turbines. 20, HAWT Aerodynamics and Models from Experience has been acquired by participat- Wind Tunnel Measurements. ing in several national and EC-funded research projects. UP is the Task Group leader 6.0 The Next Term in the EC-funded research project OPTI- In 2005, the existing legal framework was MAT BLADES, an investigation of blade reviewed, and in mid-2006 a new law for material behavior under complex stress the promotion of renewable energy sources states that assesses the effect of multi-axial and especially wind energy took effect. static and cyclic loading on strength and life The new law aims to accelerate licensing of composite laminates. Results are available procedures and alleviate major bureaucratic in the form of design guidelines for rotor bottlenecks. A critical point for the achieve- blade manufacturers, among others. ment of the targets is completion of the Other research activities of the Applied extensive projects destined to boost trans- Mechanics Section include: (a) develop- mission capacity of the grids in the areas of ment of finite element formulations and great interest for wind energy deployment dedicated code accounting for selective (Eastern Macedonia–Thrace, Southeastern nonlinear lamina behavior (e.g. in shear, Peloponnese, and Euboea). The promotion in the laminate) to model property degra- of national land planning currently under dation due to damage accumulation and way is expected to further facilitate invest- predict the life of large rotor blades under ments in renewable energy systems. How- spectrum loading; (b) probabilistic meth- ever, reaching the targets set for 2010 is still ods in the design of composite structures; uncertain, unless additional measures and (c) residual strength and fatigue damage policies are undertaken, both institutional characterization of composite materials us- and technological. The institutional mea- ing wave propagation techniques; (d) smart sures are expected to be implemented in composites and structures; and (e) structural the new legal framework, while technologi- damping and passive and active vibration cal actions such as the interconnection of control. the Northeastern Cyclades islands complex with the interconnected system are still to 5.3 Participation in IEA Wind tasks be decided and implemented. Greece participates in Tasks 11 and 20. Task 11, Base Technology Information Exchange, References: promotes wind turbine technology under- (1) 4th National Report Regarding the standing through cooperative activities and Penetration Level of Renewable Energy information exchange on R&D topics of Sources Up to Year 2010 (October 2007). common interest among member countries. Extra emphasis has been given through the Authors: Kyriakos Rossis and Eftihia years, especially at NTUA and CRES, to Tzen; CRES, Greece. the development of aerodynamic models of

162 2008 Annual Report Chapter 19 1.0 Introduction Wind energy’s contribution to Ireland’s Ireland electricity supply continues to rise (Figure 1). By December 2008, a total of 77 wind farms were connected, bringing the total 2.0 Progress Toward installed capacity for wind to 1,002 MW or National Objectives 13.7% of total installed capacity (1). Wind Ireland’s target is to supply 15% of elec- power displaced almost 1.28 million metric tricity demand from renewable sources by tonnes of CO2 emissions and primary en- 2010. As large-scale hydroelectric develop- ergy imports of 215,000 metric tonnes of ment in Ireland is not a viable option, wind oil equivalent to a nation that is more than has contributed, and will continue to con- 90% dependent on imported energy sup- tribute, the vast majority of the additional plies. Wind farm connection rates have re- renewable generation required (Figure 2). covered to pre-2007 levels, with 207.7 MW Added to other renewable generation stock, connecting in 2008. an estimated 1,350 MW of wind capacity In 2008, wind generation produced is required to meet the target for 2010. At approximately 2.3 TWh of electricity, in- the end of 2006, 744 MW of wind capac- creasing its share of electricity consump- ity was connected. To meet the 2010 target tion from 6.8% in 2007 to approximately from that point required the addition of 8.7% in 2008 (2). 200 MW annually. In 2007, only 48.25

Figure 1 Wind-sourced electricity in Ireland, 2000–2008. Source: EirGrid.

Table 1 Key Statistics 2008: Ireland Total installed wind generation 1,002 MW (MEC 986 MW*) New wind generation installed 207.7 MW Total electrical output from wind 2.298 TWh Wind generation as % of national electric demand 8.7% Target: 15% of electricity demand from renewables by 2010 40% of electricity demand from renewables by 2020 *maximum export capacity (MEC) see Section 2.0.

IEA Wind 163 National Activities

MW were added and this was a setback in a 33% penetration of renewable generation efforts to meet the target. In 2008, wind in 2020 would deliver a CO2 saving alone farm connection rates were more in line of more than 7 million tonnes/yr. It can with 2005 and 2006. However, it appears be seen from the figures for current con- that meeting the target will hinge on the nection applicants (11,000 MW) (5), sites capacity additions in 2009 and the first half contracted for connection (1,412.3 MW), of 2010. The system operators have target and wind farms already connected (1,002 connection dates within this time frame MW) that the wind industry is capable of for more than 600 MW of contracts. These providing the generation required as long dates have been subject to slippage in the as conducive conditions persist and the past, but if 60% to 70% of those contracted system operators have capacity to connect. wind farms are connected within the peri- Approximately 280 MW of new renewable od, the target may be achieved. Contracted capacity is required each year from 2009 wind farms totaled 1,412.3 MW at the end to 2020 if the target is to be met. The peak of 2008 (1). These successful applicants were connection rate to date was 231.85 MW in taken from the applicant queue via a group 2006, and the average connection rate over processing approach, which is discussed the past three years has been 162.6 MW. later in this report. The capacity additions for each year since A key national objective for renew- 2000 are shown in Figure 3. able energy was revised during 2008. As Ireland’s electricity regulator, the Com- outlined in the 2007 Energy White Paper mission for Energy Regulation, undertook (3), Ireland had aimed to supply 33% of its a series of public consultations during 2008 electricity demand from renewable sources that led to a direction to system opera- by 2020. This target has been increased tors as to how they should approach the to 40% (4), and the government has em- connection of wind applicants in the next phasized that the target is to be seen as a round of group processing (6). Those wish- minimum rather than a ceiling. Using cur- ing to connect to the grid join an applicant rent emission factors for Ireland’s fuel mix, queue once their application is “deemed

Figure 2 Kilgarvan, County Kerry 3-MW wind turbines. Courtesy of T. J. Hunter.

164 2008 Annual Report Ireland

Figure 3 Annual increases in wind capacity 2000–2008. Source: EirGrid. complete.” The options considered for ac- on the grid is less than the firm capacity cepting applicants into Gate 3 included required by a group of generators, firm ac- a date-order approach (as per Gate 1), a cess to the network will be rationed on the mixed date-order/optimization approach basis of date order of applications received. (as per Gate 2), or a new approach proposed Sites within Gate 3 will have the option to by the system operators known as the Grid increase their maximum export capacity Development Strategy (GDS) (6). The GDS (MEC) by 20% up to a cap of 4 MW to will result in the issuance of offers to an account for changes in technology over the amount of applicants in the connection time scales the connection process may take. queue at gate closure. The entire list of wind connection ap- The aim of the GDS approach is to plicants, including those in Gate 3, amounts plan and develop the grid to meet its an- to over 11,000 MW at year’s end. To put ticipated demand and generation needs up this into context, Ireland’s peak demand was to 2025 in a cost-effective, optimal, and not expected to rise above 5,000 MW dur- efficient way by assessing the system over a ing the 2008/2009 winter season. longer term than has been used in the past. In 2008, just 200 MW of intercon- According to the Commission for Energy nection existed between the Republic of Regulation, “the GDS allows for the opti- Ireland and Northern Ireland. As a result, mal connection of a very significant capac- the Irish Republic’s grid is relatively iso- ity of renewable generation in Ireland over lated. The East-West Interconnector project the coming years, facilitating the achieve- has progressed significantly in 2008 and is ment of the 40% Government renewable on course to be completed by 2012 (7). target through a long term and strategic The East-West Interconnector will have a programme of transmission development, capacity of 500 MW and will be the first to the benefit of renewable generators and connection between the Republic of Ire- end-customers.” land and Britain’s transmission systems. It During the next phase of the process is hoped that the interconnector will assist up to 2011, 3,890 MW of renewable gen- in the deployment of high levels of wind eration, including 3,877.5 MW of wind ca- generation and provide generators with pacity, chosen by “deemed-complete” date access to a larger market. Marine surveys order, will be offered. It is intended that this have been completed, the proposed route amount added to the grid by 2025 will pro- chosen, authorizations granted, and connec- vide the capacity needed to meet the 2020 tion points determined. Final permissions targets, and it also takes into account some are currently being sought at either end of attrition of sites already holding connection the two high-voltage direct-current cables. offers. Where the local capacity of a node In January 2009, the European Commission

IEA Wind 165 National Activities announced a contribution of 100 million € and indigenous development companies to toward the strategic infrastructure as part of subsidiaries of semi-state bodies, utilities, its “Investing today for tomorrow’s energy” and multinational developers. A landowner economic development plan. has the option of leasing land suitable for Another 350-MW high-voltage direct- wind farm development without having to current interconnector between Ireland and get personally involved in the development Britain is planned by Imera Power, a private of the site. Typical costs for leasing such land asset-investment company that will build are in the range of 6,000 €/MW installed. and operate the interconnector on a mer- Because the equipment is imported, chant basis. the associated operation and maintenance (O&M) costs are with international suppli- 3.0 Benefits to National Economy ers. Therefore a large portion of the O&M 3.1 Market characteristics expenditure, which is estimated to be 1.5% The design, development, construction, to 3% of the capital costs of a project, goes equipping and connection of wind farm to equipment suppliers and manufacturers facilities in Ireland is estimated at 300 mil- abroad. Current total capital costs are in the lion €/yr of economic activity over the range of 1.7 million €/MW installed for past three years. Up to 80% of the outlay wind developments in the 10-MW range. is spent on imported equipment, including Five manufacturers’ turbines were installed the turbine and associated electrical equip- during 2008; the market share of each (in ment. Therefore, the value to the local and terms of each) is shown in Figure 5. national economy could be estimated to A major development in the wind sec- be worth approximately 60 million €/yr. tor came during 2008 when Scottish and The value of civil and construction costs Southern Energy plc completed the acqui- to the local economies is approximately 30 sition of Airtricity Holdings Ltd, valued at million €/yr. the time at 1,455 million €. Airtricity has Development of wind farms in Ireland wind farm projects in Ireland, China, Eu- has been undertaken by a wide range of in- rope, and the United States. Scottish and dividuals and organizations—from farmers Southern Energy plc is the second-largest

Figure 4 Wind farming near Dunmanway in West Cork. Courtesy of Zane R. Llewellyn.

166 2008 Annual Report Ireland

are expected to be reduced. Figure 6 shows how typical project costs can be appor- tioned in Ireland. Current support mechanisms for renewable generation take the form of a Renewable Energy Feed-In Tariff (REFIT). REFIT is a public service obligation–backed power purchase agreement (8). Section 4.0 will provide details of the mechanism. The single electricity market (SEM) has been live for more than a year. Northern Ireland and the Republic of Ireland trade almost all of their electricity through a gross Figure 5 Turbines connected in 2008 (manufacturer, MW, %). pool operated by the SEM operator; a portion of electricity is still traded bilaterally with licensed suppliers outside of the pool. generator and supplier in neighboring Generators with installed capacity of less United Kingdom, with operations in a than 10 MW can trade bilaterally if they range of other utilities and services. choose, thus avoiding administrative bur- dens associated with market participation. 3.2 Industrial development and All generators above the 10 MW minimum operational experience must trade in the mandatory pool, either Although a burgeoning ocean energy in- directly or via an intermediary. dustry is developing in Ireland, the country The SEM Committee continues to has no manufacturing industry of large- consult on the treatment of wind and scale wind turbines. There is, however, a de- other intermittent generation in the SEM veloping micro-scale turbine manufactur- (9). Membership of the SEM Committee ing industry, with a handful of companies includes both regulatory authorities and developing their own units and masts. In external members from Spain. The aim of addition, several companies are involved in the consultation is to promote discussion manufacturing key mechanical and electri- in a market of increasing wind penetration cal components for both micro-scale and large-scale turbines and generators. In 2007, the average size of a large-scale wind turbine grew to 1.9 MW; however, in 2008 the average size fell to 1.65 MW. During 2008, 128 turbines were installed in 12 wind farms, including extensions to two existing wind farms.

3.3 Economic details Turbine costs currently range between 1.1 million € and 1.4 million €/MW, depending on the size of the turbine and the project. The trend in costs continues to be upward. A typical cost for connection would be in the range of 150,000 € to 300,000 €/MW. With the global economy facing recession, Figure 6 Breakdown of capital costs. Source: the demand for materials and hence costs IWEA.

IEA Wind 167 National Activities with the goal of dealing with issues in a to offshore wind at 140 €/MWh. The in- timely manner. Issues such as the process to creased discrete tariff for offshore wind is secure economic dispatch, firm access, the designed to reflect the additional costs as- calculation of the average system marginal sociated with offshore wind development price, constraint compensation, and capacity and aims to stimulate activity in the area. payments will be further developed in 2009 Despite the fact that Ireland is an island, following several meetings held in February. offshore development has been limited to date, with 97.5% of installed capac- 4.0 National Incentive Programs ity onshore. Hundreds of megawatts of REFIT is the form of support mechanism offshore wind capacity has been licensed, employed in Ireland, initially with the aim but progress toward construction is not of meeting the 2010 targets for renewable yet evident. However, Gate 3 includes 785 energy (10). The indirect beneficiaries of MW of offshore connection applicants. The this form of state aid are the renewable department responsible for foreshore leases generators. Electricity suppliers receive has decided to temporarily postpone the payments accruing under REFIT in return assessment of further applicants until it has for entering into 15-year power purchase reviewed the process. agreements with approved generators. Dif- At the opposite end of the scale, a ferent levels of REFIT exist for different micro-generation field trial is planned for renewable technologies to reflect the varia- 2009 and 2010 (12). The study will offer a tion in their setup costs and to promote financial incentive for host sites to get in- diversity in the generation portfolio. For volved. A proposal by the largest electricity wind generation, the values of the REFIT supplier to buy exported electricity from reference prices originally announced in domestic sites was welcomed as progress, 2006 were 57 €/MWh and 59 €/MWh for although the industry would like to see a large-scale and small-scale wind, respec- tariff or support mechanism that would tively. This value is inflated annually by the provide a driver for technology adoption. Consumer Price Index, which at present is The 90 €/MWh offering will be reviewed low. At January 2009, the value of REFIT annually and is an interim tariff prior to for large-scale wind was approximately 64 the outcome of the micro-generation pilot €/MWh. The average wholesale price of study and smart-metering trials. electricity for 2009 was forecasted to be An indirect incentive for the deploy- between 90 €/MWh and 110 €/MWh; ment of micro-generation is provided by however, this is likely to reduce as gas the Energy Performance in Buildings Di- prices fall (11). rective being implemented in Ireland under Should suppliers become exposed to the Building Energy Ratings scheme. Irish higher than average prices by contracting building regulations require that new dwell- with REFIT-backed generators, they are ings have a portion of their energy demands compensated through the PSO for the op- met by renewable sources on-site. The de- portunity cost occurring. Suppliers also re- signer has a choice between sourcing this ceive 15% of the large-scale wind reference energy through either renewable thermal price on top of the energy payment. This or renewable electrical means (4 kWh/m2/ 15% payment was originally designed to yr electrical or 10 kWh/m2/yr thermal). cover balancing costs (“top-up” and “spill”) The contribution of a wind turbine can be in the old market and has been carried for- included in the Building Energy Ratings ward into the single electricity market. scheme once its performance over a year Early in 2008, the Department of has been verified. Communications, Energy, and Natural Sustainable Energy Ireland also admin- Resources announced a REFIT specific isters a Low Carbon Homes Programme

168 2008 Annual Report Ireland which is in place to incentivize further limitations, network costs were not includ- efficiency in the design of dwellings (12). ed in the study. The program provides financial assistance for developments (5–15 dwellings) that At a high level, the study resulted in the offer a 70% improvement in energy ef- following findings: ficiency when compared to 2005 building • Wholesale market prices are signifi- regulations. The program requires at least 10 cantly lower for all but one portfolio kWh/m2/yr of electricity to be generated of high wind penetration on-site for self supply or export. One-off • As expected, economic benefits are demonstration buildings are considered if it sensitive to fuel and carbon prices can be shown that the design can be dupli- • A mixed portfolio of plant including cated. Funding of 40%, up to a maximum combined-cycle gas turbine, open- of 15,000 €, is available per unit, and all cycle gas turbine, and wind provides a scales of renewable electricity generation greater carbon reduction are eligible costs. • Incentives may be required for all forms of new generation into the 5.0 R, D&D Activities future Several key studies were published during • The SEM design appears to be ro- 2008. January saw the publication of the bust, but continued review will be All-Island Grid Study, which has since been required to facilitate the changes ex- of interest to industry participants all over pected in the next decade. the world and has provided a platform for further research in Ireland (13). A summary It is worth noting that the modeling was provided in the 2007 IEA Wind Annual was carried out during a period of histori- Report. The conclusions of the study were cally high oil and gas prices. Since then, a key factor in the decision by government prices have dropped to a level comparable to increase to 40% Ireland’s 2020 renewable with the low-price-fuel scenario, rather electricity target. than those used in the central scenario.

5.1 Impact of high levels of wind 5.2 Grid25 penetration on the SEM EirGrid, Ireland’s transmission system op- Following on from the technical grid study erator, has published its strategy for the de- the regulators undertook a study to assess velopment of the grid up to 2025 (15). The the possible impacts of high penetrations of study aims to identify how, on a national wind on the SEM in 2020 (14). The study and regional level, the grid will need to be examines the impact of the five generation developed to accommodate projected de- portfolios from the All-Island Grid Study mand growth and the move toward a high on the unconstrained system marginal price proportion of renewables. EirGrid estimates and on the capacity payments to generators. that the transmission system’s capacity will Generators receive capacity payments pro- have to double by 2025, and such an ex- portional to their capacity and availability. pansion is likely to cost in the region of 4 The cost/benefit analysis was limited to billion €. The potential of the existing grid analyzing the additional cost of the added to be upgraded will be maximized to mini- renewable capacity and the displaced costs mize the construction of new lines, and no for carbon fuel and conventional plant. The new 220-kV lines will be built. EirGrid will study also analyzed the effect high wind design the transmission network around penetration might have on the profitability 400-kV rather than 220-kV lines to mini- of existing and new conventional genera- mize the footprint and length of new lines tors. It should be noted that, among other (a 400-kV circuit typically has the same

IEA Wind 169 National Activities capacity as three 220-kV circuits). The net- Energy Ireland will fund data monitoring work will also have 110-kV lines. at all of the sites for the 18-month duration Following on from Grid25, the trans- of the study. The monitoring will assess the mission system operator has begun more performance of the technologies and in- detailed studies to identify specific rein- form future decisions on possible incentives, forcement needs and their environmental, tariffs, or deployment programs. economic, and system impacts. To protect customers and prescribe best practices in the pilot study, turbine suppliers 6.0 The Next Term and manufacturers applying for inclusion Ireland intends to take part in the new IEA in the pilot study will be required to sup- Wind Task 28 (The Social Acceptance of ply equipment that conforms to the ap- Wind Energy Projects: Winning Hearts and propriate European standards (EN 61400- Minds) and will contribute research benefi- 2/11/12), as will the associated inverters cial to the international wind community. (EN50438). Installers will be required to IEA Wind Task 25 (Design and Operation undergo wind theory and practical manu- of Power Systems with Large Amounts of facturer training. A robust site assessment Wind Power) has been extended, and Ire- and feasibility study will have to accompany land will continue its involvement. an application. Best practices are prescribed While output from wind increases, in an effort to ensure high-quality and safe provisional figures show that the capac- installations in a fledgling sector sensitive to ity factor for the wind portfolio may have the impact of bad customer experiences on dropped just below 30% during 2008 (2). future growth. The reasons behind this apparent fall war- rant further study (wind resource, site selec- 6.2 Smart network for tion, turbine availability, etc.). island communities Several R, D&D projects will take place Several offshore islands in Ireland support during 2009 and beyond. These—along communities. Energy is provided by im- with a national smart metering pilot, fur- ports from the mainland or, in some cases, ther work on Gate 3, and a review of the from distributed diesel generators. Wind has connection process for smaller generators been used on the islands as far back as the greater than 11 kW—will assist the deploy- 1980s and is still being harnessed on several ment of wind at all scales. islands on a small scale. The offshore islands have some of the best wind resources 6.1 Micro-generation field trials in Europe, and it is hoped that this, along There is growing interest in the area of mi- with ocean energy, could be employed to cro-generation from all sectors of the com- increase the economic and environmental munity for both economic and ecological sustainability of island life by supplying the reasons. Interest is expected to increase fur- communities with reduced-cost electricity ther, now that the largest electricity supplier for power, heat, and transport. The Depart- intends to offer 0.09 €/kWh to its domestic ment of Community, Rural and Gaeltacht customers for exported electricity. Affairs and Sustainable Energy Ireland have The major wind R, D&D activity ex- commissioned an economic and technical pected in 2009 will be at the smaller scales feasibility study focused on the Aran Islands and will be undertaken by Sustainable En- with the possibility for duplication in other ergy Ireland. Financial support to meet 40% communities. The study will also assess the of the start-up and short-term-maintenance costs and benefits of storage technologies, costs will be available in approximately 50 both for transport end use and heating, thus trial locations with an overall budget for improving security of supply of energy and the study of 2 million € (12). Sustainable reducing the need for conventional reserve.

170 2008 Annual Report Ireland

6.3 Autoproduction Energy+Planning+Division/ Autoproducers are generators with on-site Energy+White+Paper.htm. generation installed with the aim of displac- (4) 2009 Carbon Budget; ing imported electricity at retail rates. Wind download from autoproduction, large and small scale, will www.environ.ie/en/Publications/Envi- grow over the coming years as heavy ener- ronment/Atmosphere/PublicationsDocu- gy users look for options to make their opments/FileDownLoad,18677,en.doc. erations more competitive and sustainable. (5) “Customers”; “List of complete ap- As autoproduction adds generation capacity plications”; download from downstream of the meter, it can be easier www.eirgrid.com/EirgridPortal/Desktop- to facilitate than adding the same capacity Default.aspx?tabid=Customers. directly to a congested grid, although grid (6) “Direction on Criteria for Gate 3 access for the full capacity of the generator Renewable Generators,” CER/08/260, may be sought. download from To date, autoproduction has been main- www.cer.ie/GetAttachment. ly employed through CHP generation. Fol- aspx?id=54270766-56dc-4ddf-b0a1- lowing on from the success of the 850-kW d3be66a23df1. turbine installed on campus in Dundalk (7) East West Interconnector updates, Institute of Technology, some industrial download from customers are exploring their options. A www.eirgrid.com/EirgridPortal/Desk- number of energy services companies offer topDefault.aspx?tabid=EastWest. a risk-free model to industrial customers (8) Department of Communications, that have a suitable site. These companies Energy and Natural Resources, “Terms and take on all the risk in planning, design- Conditions of REFIT”; download from ing, procuring, installing, and operating the http://www.dcenr.gov.ie/Energy/Sustainab megawatt-scale turbines. They then offer le+and+Renewable+Energy+Division/Su to the energy user on-site a tariff for the stainable+and+Renewable+Energy+Divis power produced that is guaranteed to be a ion.htm. percentage below the retail rate for the pe- (9) “Policy for Large Scale, Intermittent riod of the long-term contract. With com- Non Diverse Generation,” SEM-08-127, petitiveness becoming increasingly difficult download from for industry in Ireland, this arrangement is www.allislandproject.org/en/generation. likely to be attractive to high energy users aspx?article=5bb9b3bb-d35f-43aa-ad50- with suitable sites. d2f0d18cc436. (10) European Commission, State Aid References: Clearance for REFIT, download from (1) “Customers”; “List of connected and http://ec.europa.eu/community_law/ contracted generators”; download from state_aids/comp-2006/n571-06.pdf. www.eirgrid.com/EirgridPortal/Desktop- (11) “PSO Levy Decision Paper,” Default.aspx?tabid=Customers. CER/08/129, download from (2) “Market”; “Download centre”; www.cer.ie/en/renewables-decision-docu- download from ments.aspx. www.eirgrid.com/EirgridPortal/Desktop- (12) www.sei.ie/grants Default.aspx?tabid=MarketHomePage. (13) “All-Island Grid Study Published,” (3) “Delivering a Sustainable Energy Fu- January 2008, download from ture for Ireland,” Department of Commu- www.dcmnr.gov.ie/Energy/Latest+News/ nications, Energy and Natural Resources, All-Island+Grid+Study+Published.htm. March 2007; download from (14) “Impact of High Levels of www.dcmnr.gov.ie/Energy/ Wind Penetration in 2020 on the Single

IEA Wind 171 National Activities

Electricity Market (SEM),” SEM-09-002, a Sustainable and Competitive Future,” download from download from www.allislandproject.org/en/mod- www.eirgrid.com/EirgridPortal/uploads/ elling-group-minutes-presentations. Announcements/EirGrid%20GRID25.pdf. aspx?article=7e445962-3abe-4224-90a4- 82adc6038b91. Author: Martin McCarthy, Sustainable (15) “Grid25, A Strategy for the De- Energy Ireland. velopment of Ireland’s Electricity Grid for

172 2008 Annual Report Chapter 20 1.0 Introduction Italy, more than many other European coun- Italy tries, is very poor in indigenous resources, and so is highly dependent on foreign countries for its energy needs. The development Hydro, with about the same installed of an energy policy for the exploitation capacity in 2008 as 2007, had a substantial of renewable sources has two main objec- production growth as a consequence of tives: 1) having a significant contribution more rainfall and snow in the last months of from RES to satisfy energy demand—even the year. Wind energy also enjoyed a particu- though in 2008, for the first time, domestic larly windy year, but its substantial growth in electricity demand was less (–0.7%) than in energy contribution was mainly the result of 2007—and 2) improving environmental in- a massive increase in power capacity. More dicators, by reducing air and water pollution than 1,000 MW was put into operation in through the replacement of older conven- 2008, establishing a new annual record (Ta- tional generating plants. ble 1). Wind power capacity rose in 2008 by In 2008, the electric energy generation a surprising 37%, because many wind farms, from RES was quite good and much better totaling about 370 MW, were connected to than in previous years. This was mainly due the grid in December. to a strong increase of electricity production As to the whole electricity system, from hydropower and, to a much smaller ex- according to Terna’s provisional data, the tent, wind, taking into account the different 2008 electrical demand on the domestic relative weights of these two clean sources. grid (including both customer loads and In fact, the production from wind grew by grid losses) was about 337 TWh. This is 63% compared to 2007, according to 2008 0.7% less than 2007 and about the same as provisional electricity statistics provided by demand in 2006. The balance between im- Terna (Italian Transmission System Opera- ported and exported electricity improved tor), while that from hydro increased by only to almost 40 TWh, 14.5% less than 2007. 18%. However, in absolute terms production Italy’s 2008 gross domestic electricity con- from hydro was 45,511 GWh (albeit includ- sumption (i.e., 318 TWh of gross domestic ing output of some pumped-storage plants). production plus the balance between im- Production from wind was 6,637 GWh, port and export) can therefore be consid- with growth of approximately 2,500 GWh. ered to be about 358 TWh.

Table 1 Key Statistics 2008: Italy Total installed wind generation 3,736 MW New wind generation installed 1,010 MW Total electrical output from wind 6.637 TWh* Wind generation as % of national electric demand 1.9%* Formal wind target according to the 1999 RES 2,500 MW or 5 TWh by 2008–2012 White Paper: RES target according to Directive 2001/77/EC and 22% (76 TWh) of gross electricity Legislative Decree 387/2003: consumption from RES by 2010 Maximum wind potential according to the 2007 12,000 MW or 22.6 TWh by 2020 Position Paper of the Italian Government: *Provisional data

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Altogether, hydropower (less an es- 2008 equal to 1,010 MW, cumulative wind timated 5.5 TWh from pumped-storage power in Italy was 3,736 MW at the end plants, which cannot be considered as a of December 2008 (Figure 1). This is well RES output), wind energy, and geothermal above the former official target and is in energy (the last one with the same pro- line with national commitments on a grow- duction as 2007), totaled some 52.1 TWh. ing role for RES in accordance with the According to GSE (Gestore dei Servizi forthcoming European Directive. The total Elettrici, the body in charge of running all number of online turbines was 3,588, with RES support schemes), biomass contributed an increase of 645 units in 2008. an estimated 7.2 TWh. Therefore, the total electricity contribution from RES in 2008 2.1 Commercial Deployment is estimated at nearly 60 TWh—10 TWh Wind energy, through excellent results more than 2007 and an increase of 20%. achieved in 2008 both in terms of new Wind-generated energy, as a percentage power capacity and, according to provi- of national electricity demand, amounted sional data, electricity generation, is con- to 1.9% in 2008, 63% more than in 2007. firming its important role in Italy’s elec- In spite of that, stronger involvement by tricity system. It is now positioned as the central and local administrations and by the third renewable source following hydro and national transmission system operator Terna biomass. is still required for achieving, if not exceed- The average capacity factor of wind ing, the maximum wind potential of 12,000 plants in 2008, according to figures com- MW. This is the estimate for 2020 accord- puted by Garrad Hassan Italia S.r.l. from ing to the 2007 Renewable Energy Position data acquired by Terna and ENEA, was as Paper of the Italian government. Such wind high as 0.24, appreciably higher than in development would contribute to reaching 2007 (Figure 2). Italy’s 17% quota of primary energy from Good wind conditions in 2008 and RES by 2020, in accordance with the so- the increased power capacity online led called European Directive 20/20/20. (This to a share of wind generation of 1.9% as a directive, before becoming operational, percentage of domestic electricity demand. must be implemented at the national level.) Italy is experiencing a growing but still low contribution from wind energy (in 2007 2.0 Progress Toward the share was 1.23%), but much more must National Objectives be done to reach a possible but very ambi- So far, the formal objective for wind energy tious share of 6% to 7% of electric demand. is still 2,500 MW, which must be achieved With 1,010 MW of new wind power in the 2008–2012 period, according to the capacity installed in 2008, the previous es- national White Paper of 1999. This goal has timate of a maximum 3,500 MW of total by now been greatly exceeded. However, capacity by 2008 (see the 2007 IEA Wind taking into account the aforementioned Annual Report) has actually been demon- position paper issued by the Italian govern- strated to be low. Now the nearest target, ment in September 2007 (in response to which should be reached very shortly, is the new 2020 RES targets set by the Plan the threshold of 4,000 MW. By the end of of Action “An Energy Policy for Europe” 2009, taking into account works in progress, of the European Council), the actual wind the cumulative installed capacity should be capacity objective for 2020 is now 12,000 some 4,600 MW. MW, of which 2,000 MW is from offshore Despite the usual difficulties faced by installations, corresponding to an annual developers—administrative bureaucracy, production of 22.6 TWh. opposition from a minority of environ- Through new wind power capac- mental associations, and lengthy proce- ity introduced into the electric system in dures for connection to the grid (which

174 2008 Annual Report Italy

Figure 1 Trend of annual and cumulative wind turbine capacity and electricity production from wind in Italy.

Figure 2 Capacity factor of Italian wind farms. are becoming a real bottleneck)—wind and Molise (Figure 3). Worthy of men- energy deployment has been growing at a tion is the region Sardinia, where some very brisk pace. Continued annual growth 100 MW were installed last year despite is anticipated of from 800 MW to 1,000 the fact that wind energy had not been MW in the period 2009–2012. Moreover, favored by the regional government. this growth rate could be confirmed as an In 2007, International Power plc, a annual average until 2020 if a contribu- leading independent electricity generat- tion were also to be made by offshore ing company with interests in more than installations. 30,000 MW (gross) of power generating The Apulia (260 MW) and Sicily (211 capacity located in 20 countries, entered MW) regions were the most active in 2008, the Italian wind market. It acquired some followed by Campania, Sardinia, Calabria, 550 MW and gained the position as the

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Figure 3 Wind power capacity at the regional level in Italy at the end of 2008 (wind capacity added in 2008 is indicated in brackets). leading player in Italy in wind generation. and installed approximately 1,000 MW of International Power plc owns 1,199 MW of wind capacity, which it manages, distributed wind energy plants around the world, and over seven Italian regions. Of this capacity, its share in Italy of total wind power in- it directly owns 324 MW. The IVPC Group stalled was almost 15% at the end of 2008. currently has 166 MW under construction. Five other energy producers in the Ital- Furthermore, through IVPC Gestione S.r.l. ian wind market—two utilities (Enel and and its other service companies, it manages Edison) and the wind developers IVPC, and maintains wind farms not only for itself Fri-EL, and E.ON Italia—have capacity but also for third parties. shares ranging between 7.5% and 11.2%. With regard to the sourcing of financial They are followed by several minor inves- resources, the IVPC Group is a lead player tors with a share up to 3% (Figure 4). in obtaining bank loans (so-called project The IVPC Group, Italian Vento Power financing). From 2006 through 2008 alone, Corporation, is one of the leading national the IVPC Group negotiated and executed operators in the production and sale of project financing bank loan agreements of electricity from wind. Since 1993, when it approximately 696 million €. As regards was set up, the IVPC Group has expanded intermediation in the sale of electricity its range of services by offering them to and green certificates, the IVPC Group third-party operators. IVPC has developed looks after the sale of electricity produced

176 2008 Annual Report Italy

Figure 4 Contribution by electricity producers from wind at the end of 2008. from the group’s wind farms and wind Besides these three major manufactur- farms belonging to third parties. It carries ers, others have entered the Italian market out the same activity for the sale of green with shares ranging from 3.2% to 5.3%. certificates belonging to group companies. REpower had the best result in 2008; 146 Intermediation activities for the sale of MW located in the Apulia and Sicily re- electricity and green certificates are carried gions brought its total capacity to nearly out by its own organization based in Rome, 200 MW. It was followed by Nordex, which which operates in the sector of electricity installed 109 MW, and Ecotecnia with 104 trading. Its aims are to maximize the objec- MW. GE Wind put into operation only tives of the companies that own production 13.5 MW, but it should significantly in- plants, see to the care and fulfillment of all crease its capacity in 2009 (Figure 5). associated operations and activities (manag- The average unit power of wind turing contracts, analyzing and checking data, bines installed in 2008 was 1,566 kW, monitoring stock markets, examining in- slightly less than the previous year, but the tegrated commercial proposals, and so on), average unit power of all online turbines and act as interface in relations among insti- at the cumulative level still increased from tutions in the electricity sector. 926 to 1,041 kW. The increase is mainly Among wind manufacturers, Vestas thanks to a large contribution provided still leads the Italian market with a share of by 2-MW turbines and a number of other total capacity close to 50% and more than machines ranging from 1.35 MW to 3 340 MW installed in 2008—one-third of MW (Figure 6). the total capacity put into operation for So far, no electricity producers with the year. Gamesa maintains the second a single wind turbine have entered Italy’s position, with a share of 20% and new in- market. However, the new incentive scheme stallations totaling 164 MW. Enercon had of the 2008 Financial Law for wind plants quite a good result in 2008 with 125 MW up to 200 kW became fully operational (see installed, bringing its cumulative capacity Section 3.1) in the beginning of 2009. Also to 473 MW or a 12.67% share of installed some new rules at the regional level, make wind power. it likely that small private investors, mainly

IEA Wind 177 National Activities

Figure 5 Market share of wind turbine manufacturers at the end of 2008 (percentages of total online capacity).

Figure 6 Average annual and cumulative online unit capacity. farmers and landowners, will start to install to 18,309 positions, of which 5,353 are single machines with capacity up to 1 MW. directly employed. The total personnel involved is subdivided as follows: feasibility 3.0 Benefits to the studies, 2,240; manufacturing of turbines National Economy and related industry, 3,033; development Because of the increasing annual growth and civil works, 5,246; installation, 1,421; of wind power capacity, the economic and management O&M, 6,369. turnover of the wind sector in the past two Regarding future prospects, a study years rose to more than 1 billion €, includ- jointly carried out by ANEV and UIL (a ing turbines and components delivered to national trade union) estimated that by foreign countries. The most positive effect 2020, assuming full exploitation of an Ital- of this progress is the growing number of ian wind potential of 16,200 MW and employees involved in the sector. At the energy production of 27.2 TWh, some end of 2008, according to ANEV (National 66,000 people would be employed (in- Wind Energy Association), this amounted cluding indirect employment). In addition,

178 2008 Annual Report Italy other economic and employment benefits 3.2 Industrial development and are related to replacement of the main operational experience components of old medium-sized wind Vestas once again in 2008 was the leader turbines, carried out by IVPC. Another both in annual and cumulative wind power positive aspect ensuing from the rising capacity installed. The company is increas- wind power capacity and its being scat- ing its presence in Italy by setting up three tered in rural areas is increased investment subsidiary companies. Specifically: in upgrading electrical grid infrastructures, • Vestas Italia S.r.l. is responsible for mainly planned and implemented by the the sale, installation, commission- TSO Terna. ing, and maintenance of wind farms installed in Italy; Switzerland; eastern 3.1 Market characteristics Mediterranean countries such as Tur- With awareness of the environmental and key, Cyprus, Egypt, Tunisia, Libya, economic benefits from wind energy and and Lebanon; South Balkan countries the full knowledge of new opportunities such as Bosnia, Macedonia, and Alba- offered by the changing incentive mecha- nia; and all the Middle East countries. nism, local municipalities, entrepreneurs, • Vestas Nacelle Italia S.r.l. specializes investors (including foreign investors), in the assembly of V52 850-kW and and common citizens have shown steadily V90 3-MW turbines. So far, more growing interest in being involved in new than 2,600 nacelles have been sent wind projects. Through the Ministerial worldwide. Decree on 18 December 2008, the RES • Vestas Blades S.r.l. is involved provisions in the 2008 Financial Law finally with the construction of blades for went into effect at the beginning of 2009. V52 units. Among other measures, this law has introduced a favorable fixed feed-in tariff for Vestas now has two commercial offices, electricity generated by RES plants up to 1 in Taranto and Rome. Moreover, in 2008, MW in capacity (for wind, this limit is only the company inaugurated the new produc- 200 kW) as an alternative to tradable green tion line of the V90 3-MW turbine and certificates (TGCs). This new incentive has increased the employees in its two factories prompted several entrepreneurs to build, in Taranto to almost 700 people. commercialize, and invest in smaller wind In 2008, Leitwind was set up as a com- turbines. This market, so far a niche market, pany belonging to the Leitner group. In now has the opportunity to grow signifi- December 2008, the company installed its cantly owing to the great interest shown by first wind farm in Italy with four LTW people living in medium-high windy areas. 77 1.5-MW turbines (Figure 7). So far, Owners of wind farms are mostly Leitwind’s commercial products are two private medium-large companies, utilities, turbines, LTW 70 and LTW 77, of 1.7 MW and sometimes small local firms that have and 1.5 MW rated capacity, respectively, and joined forces with larger ones. Neither with different rotor diameters, 70 m to 77 single farmers nor citizens, including co- m, as a function of the wind class of the site. operatives, are yet owners of medium or Previously, Leitwind installed a few wind large wind turbines. Only small turbines turbines in Italy, Austria, Bulgaria, and India. are currently owned (and to a lesser extent A new prototype, the LTW 80, rated at 1.5 managed) by landowners. In the near future, MW, is under development and is likely to this tendency should change, with a grow- be installed in 2009. ing number of single wind turbines up to 1 The very first wind farm in the Italian MW in capacity being located and run on Alps was installed by Nordex at the end of private properties. December 2008. Four 2.5-MW NM 90

IEA Wind 179 National Activities

Figure 7 Leitwind LTW 77 1.5-MW turbines installed in Tuscany (courtesy of Leitwind). turbines and one NM 80 turbine are lo- farm in Albania. The interconnecting di- cated about 1,000 m above sea level close rect-current (DC) cable between the Italian to the French border (Figure 8). transmission grid and the Albanian grid will The Moncada Energy Group should be 154 km long. Of these, 14 km will run soon begin producing the WPR 850/58 on Italian ground (Brindisi), 10 km will be 850-kW direct-drive turbine. In the near on Albanian ground, and the remaining 130 future, 2-MW, 20-kW, and 1.5-kW models km will be laid on the seabed in the Chan- are to be designed and built in its factory nel of Otranto down to a maximum depth in Sicily. Moncada has received approval to of 825 m. The two ends of the cable will build a 500-MW 400-kV merchant electri- be connected to conversion stations (trans- cal line across the Adriatic Sea from Albania forming AC to DC current and vice versa) to Italy. The line is being developed as part which, in turn, will be connected to a 380- of a wider plan for an integrated energy kV line at Brindisi Sud (Italy) and to a 220- hub in southern Europe. This will enable kV line at Babica (Albania). This project has Moncada to export power from its planned already been judged favorably by Terna and and already authorized 500-MW wind the Albanian TSO and was also approved (9 January 2008) by the Albanian government.

180 2008 Annual Report Italy

The company has also developed a project and regulation of active and reactive power. for an interconnecting DC cable between Terna, with the aim of allowing the the Italian transmission grid and the Tuni- connection of growing energy production sian one, with a capacity of 600 MW and a from wind into the national transmission voltage of 400 kV. grid, has developed the “collecting plants Regarding grid connection, mention method” (metodo dei collettori di potenza). should be made of Deliberation ARG/elt This method allows connection of consid- 99/08 issued by AEEG (the Regulatory erable amounts of power in the safest way Authority for Electricity and Gas) on 23 with environmental and economic benefits. July 2008 to streamline further, and gather Its main objective is to favor the connec- in a single document, the technical and tion of more than 200 MW of generation economic conditions for connecting gener- capacity to each collecting plant of the 380- ating plants to electrical systems at all volt- kV system. age levels. This deliberation, in effect from Terna plans to invest 550 million € in 1 January 2009, includes special provisions the national transmission grid to support for RES plants, which should help clarify the development of RES, and in particular and speed up the procedures for connecting wind energy, through the repowering of wind plants to the grid and better define existing lines, construction of new lines, the sharing of relevant costs between wind and construction of connecting plants, investors and the grid operator. On the which represent the most significant part other hand, a further AEEG Deliberation of planned investments. Terna’s plans for (ARG/elt 98/8 of July 2008) has allowed new connections include the 500-kV DC grid operators (for example, Terna) to re- 1,000-MW submarine cable between Sar- quire that new wind plants provide some dinia and the mainland (to be completed ancillary services for the benefit of the elec- by the second quarter of 2010) and an trical system. Such services include power enhanced connection to Sicily. They will output modulation, cut-in power ramp guarantee an increase of some 3,700 MW control, fault ride-through capability, of transmissible energy from wind.

Figure 8 Nordex 2.5-MW NM 90 turbines at Garessio (Cuneo) in the Italian Alps (courtesy of Nordex Italia).

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In September 2008, a small 80-kW generation, but without the problem of wind turbine was installed by the company negative visual impact. Blue H on a floating foundation about Other initiatives aimed at setting up 20 km off the Apulian coast. This offshore offshore wind farms on fixed foundations in turbine was installed on a 111-m depth shallow waters are running along the coasts of the seabed, where a counterweight was of southern Italy and Sicily. For the time placed previously, and used a submerged being, the investors are dealing with diffi- deepwater platform. The temporary permit cult permitting procedures, increasing costs, for the installation in the sea expired at the and some adverse judgments expressed by end of 2008, and the unit was subsequently local authorities. decommissioned and brought safely back to shore. Blue H feels that it learned a tremen- 3.3 Economic details dous amount from this experience and is According to ANEV, the cost of installed confident that the know-how gained, along wind turbines is at substantially the same with its intellectual property already filed in level as it was in 2007. The average installed the form of utility model and patents, will plant cost of a medium-sized wind farm (30 ensure its continued leadership in the field MW) at a site of medium complexity, with of floating wind turbines. 15 km of paths/roads and 12 km of electric Blue H is currently building the first line for connection to the high-voltage operational 2.5-MW unit in Brindisi, grid, is approximately 1,800 €/kW. This which it expects to deploy at the same cost is generally subdivided as follows: site in the southern Adriatic Sea in 2009. • Turbines, installation, and commis- This is the first turbine in the planned sioning, 1,270 €/kW: 70.6% 90-MW Tricase offshore wind farm lo- • Development, namely site qualifica- cated more than 20 km from the beauti- tion, design, administrative procedures, ful coastline of Apulia. etc., 236 €/kW: 13.1% Early in 2009, project GEOMA, a • Interest on loans, 196 €/kW: 10.9% consortium led by Blue H, was selected • Connection to the grid, 73.8 €/kW: as one of 30 recipients of Italian public 4.1% funding under “Industria 2015,” a program • Civil engineering work, 23.4 €/kW: announced by the Minister of Economic 1.3% Development. The Blue H consortium is • Annual cost of operation and mainte- one of two wind energy projects selected nance has been estimated to be about by a panel of experts in Industria 2015. 54 €/kW, which includes leasing of This Italy-based project will develop a hy- terrain, insurance, and guarantee brid concrete/steel 3.5-MW floating wind • Decommissioning cost has been esti- turbine ideal for the deep waters of the mated at approximately 5 €/kW. Mediterranean Sea. Consortium members are Ansaldo Sistemi Industriali, Blue H The income of wind plant owners is R&D, Blue H Sky Saver S.r.l, CESI RI- currently derived from two sources: CERCA, EADS Astrium, Progeco, Società • Income accrues from the electricity Gomma Antivibrante, TRE Tozzi Renew- price obtained by selling the energy able Energy, and the University Federico II produced. Energy may be sold on of Naples. The consortium aims to create the free wholesale market or directly an integrated solution for a floating wind to GSE through a special contract by turbine able to bring down the overall cost which the whole production is pur- of electricity generation to be in line with chased at prices set in accordance with the economics of onshore wind energy those of the free market. Most wind plant owners choose the latter option.

182 2008 Annual Report Italy

In 2008, the purchase price was ex- now become 15 years for plants that be- tremely variable depending on many gan operations on or after 1 January 2008). factors; on average it could be put at TGCs are valid for three years. approximately 90 €/MWh. TGCs can also be bought from GSE • Plant owners derive income from at a price that is fixed every year in ac- the price obtained from the sale of cordance with a given procedure. Unlike the TGCs assigned by GSE to electri- in previous years when GSE’s TGCs were cal energy produced from RES. This needed to meet demand, from 2006 onward price, too, was very variable in 2008; the whole TGC demand has been covered average value was estimated at about by IAFR producers, mainly with hydro, 75 €/MWh. wind, and geothermal plants. The ensuing competition pulled the TGC trading price It is also worth recalling, for the sake well below that of GSE’s TGCs, reportedly of completeness, that a decreasing number around 70–80 €/MWh in 2008 trading. of wind plants have still been entitled to These poor price conditions have been sell energy to GSE at the premium feed-in blamed on factors including that the RES tariffs granted by the old scheme (CIP Pro- obligation percentage rose at too slow a vision No. 6 of 29 April 1992). In 2008, the rate, which did not allow TGC demand to maximum CIP 6/92 tariff for wind plants grow enough. was 151.8 €/MWh (preliminary price). The rules of the RES quota/TGC scheme have recently been reshaped some- 4.0 National Incentive Programs what by the so-called 2008 Financial Law As the old CIP 6/92 system based on feed- (Law 244 of 24 December 2007). It took in tariffs gradually expires (incentives were quite some time for the RES provisions granted for the first eight years of plant of this law to become effective as they re- operation), more and more wind plants are quired a further Ministerial Decree, which benefiting from the current RES support was issued only on 18 December 2008. schemes. However, the main changes brought in by The main scheme (and the only one these new provisions can be summarized currently available to wind plants above 200 as follows: kW) is based on a RES quota obligation • The yearly increase of the manda- and the issuing of TGCs. Producers or im- tory quota of RES electricity has been porters of electricity generated from non- raised from 0.35 to 0.75 percentage renewable sources must feed into the Italian points in the period 2007–2012. grid a mandatory quota of RES electricity • The size of all TGCs has been re- calculated as a percentage of the electric- duced to 1 MWh. ity produced from conventional sources • RES plants that have come online in the previous year. At the beginning this after 1 January 2008 will get TGCs for percentage was 2%; in 2008, it rose to 3.8%. a period of 15 years (instead of 12 as Operators subject to the RES requirement older plants), in a number equal to the have to prove compliance by returning number of produced megawatt-hours to GSE, after the end of the year, a cor- multiplied by a coefficient. The coef- responding number of TGCs. These can ficient is specific for each technology either come from one’s own RES plants (e.g., 1 for onshore wind, 1.1 for off- or be bought from other RES electricity shore wind). producers. GSE grants TGCs to certified • From 2008 on, the price of TGCs RES plants that began operating after 1 bought from GSE will be calculated April 1999 (the so-called IAFR plants) for as the difference between 180 €/ the first 12 years of operation (this term has MWh and the annual average market price of electricity. (For example, the

IEA Wind 183 National Activities

calculated price for 2008 was 112.88 low-wind site applications. Blu Mini Power, €/MWh.) through a venture with the French com- • The reference values and coefficients pany Vergnet, is entering the Italian market may be updated every three years. with a 200-kW Vergnet turbine in addition • Until Italy has reached its RES to its own smaller turbines. electricity target according to Direc- In addition to universities that have tive 2001/77/EC, GSE must buy all been working on wind energy for a long unsold TGCs before their expiration time (e.g., Genoa, Bologna, Trento, and the date (three years from issue) at a price Polytechnic of Milan), other universities are equal to the average TGC price of the now conducting R&D activities: offshore previous year. wind power (Catania), towers (Florence and Padua), and small turbines (Naples). Another important feature is that these Among R&D activities of note are laws also set up or restructured other in- those carried out by the Aerospace Engi- centives available to RES plants of up to neering Department of the Polytechnic of 1 MW capacity. Specifically, RES plant Milan. They are mainly focused on: owners can choose a fixed comprehensive • Advanced control laws for wind incentive price for the energy fed into the turbines, namely development of grid as an alternative to electricity market control laws for variable-speed wind price plus TGCs. This option has been al- turbines for reducing fatigue damage lowed for RES plants up to 1 MW, but it and for gust load alleviation. Particu- excludes solar plants (photovoltaics actually lar emphasis is placed on laws that has its own special legislation and feed-in include individual blade pitch control, tariffs) and wind plants above 200 kW. The account for aeroelastic effects (tower comprehensive price is available for 15 and blade flexibility), and can react to years to plants that have come into opera- changes in the operating conditions tion after 31 December 2007. For wind (change in wind shear, presence of plants up to 200 kW capacity, it is currently vertical and lateral wind components, 300 €/MWh. operation in the wake of another tur- Additional new provisions give RES bine, and so on). plant owners the option to choose, as a • Research activity has also led to the trading mechanism, the on-the-spot ex- development of several supporting change of their production with the energy technologies, including monitoring they draw from the grid as customers. This of the wind turbine structural flex- possibility has now been extended to all ible states from strain gauges and ac- RES plants up to 200 kW, provided they celerometers, and measurement of came into operation after 31 December the spatial distribution of the wind 2007. (Formerly, this limit was 20 kW.) over the rotor disk. The control laws Both of these provisions, could well open are being tested both in the field on new prospects for the deployment of small- a megawatt-class wind turbine and in sized wind turbines or plants with a single a high-fidelity simulation environ- turbine up to an overall capacity of 200 kW. ment based on the multi-body finite- element aero-servo-elastic code named 5.0 R, D&D Activities Cp-Lambda (Code for Performance, Since the introduction of a feed-in tariff Loads, Aeroelasticity by Multi-Body for wind turbines up to 200 kW, several Dynamics Analysis). manufacturers of wind turbines up to 20 • In (WT)2 (Wind Turbine in a Wind kW have begun scaling up projects. To date, Tunnel project), aeroelastic wind tun- however, only one of them, Terom Wind nel models of a multi-megawatt wind Energy, has developed a 55-kW turbine for turbine are designed for testing in the

184 2008 Annual Report Italy

large wind tunnel facility of the Poly- applied to the case of optimal allocation technic of Milan. Scope of the models of wind plants over the island of Corsica. is the development, verification, and The model is based on the identification comparison of control laws for wind of anemological regions and wind regimes turbines, as well as the testing of ex- over the territory and on the calculation treme operating conditions. of the optimal spatial distribution of wind • Software for wind turbine design and power plants under given requirements of optimization is being developed. This minimal variability of overall wind energy project aims at developing automated input (i.e., the aggregate contribution of procedures for supporting all phases all anemological regions to the power sup- of the design process, including aero- ply system). By means of this optimization, servo-elastic analysis using the multi- wind energy fluctuation in the power sup- body finite-element code Cp-Lambda, ply system of Corsica has been reduced by transfer of loads from aeroelastic simu- about 58%, with an energy production loss lations to detailed FEM models of sub- of 23%. components for fatigue and ultimate CESI RICERCA has been work- analysis, and multi-objective optimiza- ing on wind power within the framework tion of the machine. The optimization of its research program carried out under procedures use the simulation capa- contract to the Italian government in the bilities provided by the Cp-Lambda interest of Italy’s electricity system. After code for performing: (a) aerodynamic completing its new Wind Atlas of Italy, optimization of the rotor (e.g., twist CESI RICERCA is concentrating on bet- and chord distribution for maximum ter assessing Italy’s offshore wind potential, annual energy production (AEP), with taking into account all factors on which noise constraints and maximum chord exploitation of this potential could depend constraints); (b) structural optimization (windiness, technology, costs, etc.). Since the of the blades (e.g., minimum weight most plentiful resources are found in wa- configuration for given design load ters too deep for the current offshore wind cases [IEC-61400 DLCs], placement technology, CESI RICERCA has taken an of frequencies, stress/strain allowables, interest in the feasibility of building plants and so on); and (c) combined aerody- on floating foundations. Consultants assist namic-structural optimization (e.g., for on more specific marine issues. The effort maximum AEP over weight). begins with a preliminary review of different concepts of floating platforms and their The University of Genoa is conduct- moorings. Next, a computational model ing several activities on wind assessment, analyzed, under normal and extreme wind including the development of new models. and wave conditions, the dynamic behavior One of them has recently been developed and stresses of a system comprising a large to study the intermittent character of wind wind turbine mounted on floating struc- energy and its consequences for electrical tures of various types. power systems. Since wind energy is sto- CESI RICERCA is also looking into chastic, a possible way to mitigate undesired the practical aspects of construction, in- fluctuations of energy output in the electri- stallation, and operation of floating wind cal system could be to identify the optimal turbines, taking into account technical be- allocation of wind power plants over an havior and costs over the whole operating extended territory. This would allow lower lifetime. A specific structure configuration temporal variability of the aggregate wind has been selected and examined, and loads power output and, therefore, also guaran- and stresses have been calculated both tee a significant contribution to base load in normal operation and in other criti- power supply. To date, this model has been cal phases, including transportation and

IEA Wind 185 National Activities installation on site. At the same time, the the Ministerial Decree of 18 December costs of this structure have been estimated 2008 on incentives for electricity produc- to get an idea of the overall investment tion from RES (implementing the 2008 and maintenance costs of a wind farm Financial Law). Among other measures, the with floating wind turbines versus its ex- decree establishes a feed-in tariff for small pected energy performance. wind turbines and helps to support the CESI RICERCA has also undertaken commercial value of TGCs. to supplement the Wind Atlas of Italy with Further development of R&D work a full Atlas of Environmental Compatibility. can also be expected. Within the framework This work provides, as far as possible, infor- of Industry 2015, a new industrial policy mation about protected or restricted areas law issued by the Italian government in and other environmental constraints that 2006 and later implemented by the 2007 could hamper the setting up of wind farms. Financial Law, a call was published in 2008 CESI RICERCA has also developed a by the Ministry of Economic Develop- software application to simulate wind farms ment to grant funds to R&D programs for preliminary assessment of their visual aimed at industrial innovation for energy impact on a given area. efficiency. The announcement raised very Wind-measuring masts have been set strong interest, and many applications were up, both offshore (on a very small island in submitted. Three wind power projects were the Adriatic Sea) and in Tuscany, to fine- approved: offshore floating wind plants, tune the Wind Atlas in some areas of Italy. development of a large wind turbine prototype, and a system having a very small 6.0 The Next Term vertical-axis wind turbine and a PV device. In 2009 the growth of wind capacity is The total eligible cost of these projects is expected to be similar to that seen in 2008. some 50 million €, of which about 20 mil- Accompanying increasing industrial activity lion € should be granted by the Ministry of is expected and consequently the creation Economic Development. of new job opportunities. This forecast is confirmed by the civil engineering work Authors: Luciano Pirazzi, ENEA; Clau- in progress in several regions for setting up dio Casale, CESI RICERCA, Italy. many more hundreds of megawatts and by

186 2008 Annual Report Chapter 21 1.0 Introduction At the end of 2008, the total wind power Japan capacity in Japan was 1,880 MW (1,508 turbines) with 342 MW of annual net increase. The national target is to reach 3,000 2.0 Progress Toward MW by 2010, so good progress toward the National Objectives goal has been made (Table 1). However, the 2.1 Strategy increase in wind power capacity each year At the UN Climate Change Conference has turned from an exponential curve to a in Kyoto in December 1997, the Japanese linear curve. Therefore, the attainability of government agreed to reduce the output the national target is still under question. of greenhouse gases by 6% (compared with Some reasons for the deceleration in growth the 1990 level) by 2010 (in the period include legal reform of the Japanese Build- 2008-12). To attain this target, the governing Code in April 2007, the establishment ment decided to increase “new energy” (a of an extreme wind map as a guideline lim- term similar to renewable energy) to 3% of iting development in some areas, and severe the primary energy supply by 2010 as out- climactic events like typhoon and lightning lined in the Primary Energy Supply Plan. strikes. Additionally, more than a few proj- Wind power generation contributes 7% of ects have been delayed or cancelled due to this new energy, which made the target for high-level requirements in getting legal per- wind power 3,000 MW, or 2.1% of the pri- mission and finding possible sites. mary energy supply by 2010. Another significant issue is grid con- In April 2003, the Japanese government nection. Compared with EU countries, passed legislation for a Renewables Portfo- Japan is very isolated, and so the influence lio Standard (RPS) in order to realize the of wind generation on grid stability is con- national target for renewables by 2010. Un- sidered to be very large regardless of how der the original RPS, Japan’s utilities were small the penetration ratio is. Therefore, obligated to use 12.2 TWh (1.35% of total the electric power companies tend to limit electricity supply) from renewable sources new wind farm projects and often choose by 2010. RPS targets are reviewed every the small numbers of them allowed by ran- four years. The new RPS target established dom selection. in 2007 is 16.0 TWh (equivalent to 1.63% Moving to offshore installations has not of total electricity supply) by 2014. Dur- yet begun due to deep-water conditions, ing fiscal year 2008, wind plants supplied however a national investigation was initi- 2.856 TWh, which is one third of the total ated in 2008. supply generated from renewable sources.

Table 1 Key Statistics 2008: Japan Total installed wind generation 1,880 MW1 New wind generation installed 342 MW2 Total electrical output from wind 2.856 TWh/yr3 Wind generation as % of national electric demand 0.313%4 Target: 3,000 MW by 20105 1. Statistics at the end of December 2008, based on grid-connected wind plants; 2. New capacity (346 MW) minus decommissioned capacity (4 MW); 3. Estimated based on home page data, Japanese Renewables Portfolio Standard System, METI; 4. Electric power demand in 2008 was 913.2 TWh (Data: home page of the Federation of Electric Power Companies of Japan); 5. In the period of 2008-2012.

IEA Wind 187 National Activities

However, judging from the 2008 year-end ratio: 22.3%). Figure 1 shows the history of installation, it will be difficult to achieve the wind power development in Japan. Note national wind target. that the period of statistics was changed To counteract natural and social ob- from previous fiscal year to calendar year. stacles to wind power development, the Wind power generation in 2008 was 2.856 government has been running the follow- TWh and accounted for 0.313% of the na- ing investigations or research programs: tional energy demand. • Wind Energy Business Support Program 2.3 Rates and trends in deployment- • R&D of Advanced Wind Energy Most commercial wind farms have been Technology developed with governmental promotional • Investigation on Offshore Wind subsidy programs, which quickly acceler- Technology ated developments. Figure 2 shows the • Field Test Programme history of annual increases in wind power • Demonstration of Grid Stabilization capacity in percentages. The average in- • Demonstration of Battery-Backup crease rate in the past 17 years is 63%. Wind Farms The five-year average increases are 46.8% • Subsidies for Grid-Connected (1994-1998), 83.9% (1999-2003), and Systems 26.7% (2004-2008). Looking at Figure 2 • Wind Technology Standards (Japa- together with Figure 1, wind power devel- nese Industrial Standards (JIS)/Inter- opment is apparently slowing down and national Electrotechnical Commission the tendency of wind power development (IEC)) has turned from an exponential function to a linear function. 2.2 Installed capacity Japan’s cumulative wind power capacity 3.0 Benefits to National Economy was 1,538 MW with 1,331 units at the end The wind turbine industry in Japan has of December 2007, and 1,880 MW with been growing in recent years. Not only 1,508 units at the end December 2008. The traditional Mitsubishi, but also several other annual net increase was 342 MW (increase manufacturers like Japan Steel Works, Ltd.

Figure 1 History of wind power development in Japan.

188 2008 Annual Report Japan

Figure 2 History of annual increase rate of wind power capacity (percent). and Fuji Heavy Industries, Ltd. have started start in June 2009. Today there are five wind mass production of 2-MW-class wind tur- farms that exceed 50 MW. Many entities bines. Several bearing companies such as are developing wind power: citizen groups, NTN, Ltd., JEKT Co., and NSK, Ltd., are NPOs, third-party sectors, local govern- also expanding their factories. Many elec- ments, and big private companies. Most tric companies like Hitachi, Ltd., Meiden- of the large wind farms are owned by big sha Co., and Fuji Electric Holdings (a) are wind energy developers. exporting power devices corresponding for Japan has four wind turbine manu- large numbers of orders from wind turbine factures; Mitsubishi Heavy Industries, Ltd. manufactures around the world. The growth (MHI, 2.4-MW), Fuji Heavy Industry, of the wind turbine industry brings so- Ltd. (FHI, 2-MW), Japan Steel Works, Ltd. called “green money” and “green jobs” for (JSW) (2-MW), and Komai Tekko Inc. Japan. The production of wind turbines and (300-kW). However, foreign manufactur- their components has reached around 300 ers such as Vestas, GE Energy, and Enercon billion JPY/yr, according to data collected dominate the Japanese market. Approxi- by the New Energy Foundation. More than mately 83% (by capacity) of wind turbines 1,000 people are working directly in wind were supplied by foreign turbine manufac- turbine mass production, and it is estimated turers. As shown in Figure 4, the top sup- that 4,000 to 15,000 jobs have been created plier is Vestas (21.7%), following GE Energy among parts and devices companies. (19.5%), Mitsubishi (16.4%), and Enercon (9.1%). 3.1 Market characteristics Nagashima Wind Hill, the third larg- The wind power market in Japan has rap- est wind farm in Japan, began operation in idly progressed in the past 15 years. As a June 2008 with 21 MHI 2.4-MW turbines. result, large wind farms have been devel- Wind power capacity has increased very oped as shown in Figure 3. The largest quickly in the past ten years; however, the wind plant was built in December 2008 in sector has experienced a slowdown recently Izumo City in Shimane Prefecture. It has a as detailed above. The four major reasons total capacity of 78 MW from 26 3-MW for this slowdown are natural external con- Vestas turbines. Its operation is planned to ditions, the legal system, grid systems, and

IEA Wind 189 National Activities

Figure 3 Scale distribution of wind farms larger than 10 MW.

Figure 4 Share of the wind turbine manufacturers in capacity. economics. The Japanese market is deeply foreign countries by ocean, grid connec- influenced by external conditions, both nat- tion and stability is another severe barrier to ural and grid-related. Extreme wind condi- wind power development. tions such as tropical storms and typhoons, The country has a history of typhoons high turbulence due to complex terrain, that blow down turbines in the summer. and heavy lightning storms are the most Lightning strikes in winter and sum- important technical issues. Isolated from mer, strong gusts, and high turbulence in

190 2008 Annual Report Japan complex terrains are also technical hazards. depreciation of Japanese Yen against the These challenges define the external condi- Euro and the U.S. dollar. This has a signifi- tions in Japan. Therefore in 2008, the New cant impact on Japanese wind power capac- Energy and Industrial Technology Develop- ity because more than 80% of new wind ment Organization (NEDO) developed a turbine installations were imported. This safety guideline designed for Japanese me- impact seems to be decreasing, however, teorological and geographical conditions in because the price of wind turbines started order to provide technical measures against decreasing due to appreciation of Japanese typhoons and lightning strikes and to help Yen against the Euro and the U.S. dollar future wind turbine developments. As a from the latter half of 2008. Because of this, result, some promising sites have to be care- a number of developers have started trying fully evaluated for safer development. to reopen projects that had been shelved. A new legal requirement has also lim- However, new installations in 2009 are not ited development. According to the new expected to be high due to long the lead- Japanese Building Code, which became time for delivery of wind turbines. effective in June 2007, wind turbines over 60 m high shall be considered as a kind of 3.2 Industrial development and building, and its height is defined as the operational experience top height of a blade from ground level. Several wind turbine manufacturers pro- Under this revised code, the installation of duce turbines in Japan. The main com- wind turbines requires the minister’s sanc- mercial turbines are listed in Table 2. These tion. The application procedure for plan- manufacturers have developed new turbines ning permission is very complicated, time that are more suitable for Japanese external consuming, and expensive. The first project conditions, such as higher tolerances for authorized under the new code was in 50-year extreme gusts (above 70 m/s). July 2008, which means absolutely no new A small but very stable wind farm de- projects started between June 2007 and July velopment has been created by the local 2008. However, the permission process is town government of Tomamae. It has de- rather standardized now and many projects veloped a small wind farm since December are being authorized. 1998. The wind power plant consists of The grid system in Japan has also pre- two 600-kW turbines and one 1,000-kW vented new wind farm developments in turbine. Nine years of operational data is order to keep the stability and security of available on the town’s home page. Figure 8 electricity supply. Geographically, the lead- shows monthly capacity factors vs. monthly ing regions for wind power development mean average wind speeds with bin-aver- are Tohoku and Hokkaido in the north of aged data plotted with black squares and the country and Kyushu in the south. Un- a fitting curve. Tomamae, located in Hok- fortunately, the greatest electricity demands kakido, has good winds and is one of the are concentrated in the center of Japan biggest wind farm regions in Japan (Figure such as Tokyo, Osaka, and Nagoya, while 5). This steady effort to record and report most of the potential wind power sites are the wind farm’s operational data has en- located in remote areas where grid capac- couraged many developers. From Figure 6, ity is relatively small. Additionally, as a social we may expect capacity factors above 30% system, this regional monopolistic grid sys- if the mean wind speed is 7 m/s or 40% if tem with very limited grid access forms a 8 m/s. social barrier against challenging wind farm developments. 3.3 Economic details Another reason for the slowdown of In general, the cost of a wind power wind turbine installations is the relatively plant in Japan is higher than in EU coun- high price of wind turbines due to the tries where wider grid systems are well

IEA Wind 191 National Activities

Table 2 Main commercial wind turbines Manufacturer Wind turbine Technical characteristics P=Power; D=Rotor Diameter Mitsubishi Heavy MWT92/2.4 P=2.4 MW, D=92 m, 3 bladed, Upwind, Smart- Industries, Ltd. (MHI) Yaw control MWT-1000A P=1.0 MW, D=61.4 m, 3 bladed, Upwind, SmartYaw control Fuji Heavy Industries SUBARU P=2 MW, D=80 m, 3 bladed, Downwind Ltd. (FHI) 80/2.0 The Japan Steel Works, J70/J82 P=2 MW, D=70.65/82.6 m, 3 bladed, Upwind Ltd. (JSW) Komai Tekko Inc. KWT300 P=300 kW, D=33 m, 3 bladed, Upwind Iref=20 % Zephyr Corporation Airdolphin P=1 kW, D=1.8 m, 3 blades, Upwind Cut-in/Cut-out wind speed=2.5/50 m/s, Full carbon fiber blade developed. In Japan, there are additional approximately 100,000 JPY/kW and the costs because of requirements for grid average initial cost was estimated at 190,000 connection and stability including battery JPY/kW in 2003. However, wind turbine back-up plants. costs increased approximately 80% in 2007. A couple of years before 2007, it was About 50% of this increase was caused by reported at a national committee that the a worldwide trend and 30% was due to the average cost of energy (COE) for a 25-MW currency exchange rate between the Euro, wind farm was 10.2 JPY/kWh with sub- the U.S. Dollar, and the Yen. The impact sidy. Generally COE was from 9.0 to 11.0 was significant as more than 80% of wind JPY/kWh for medium-sized wind turbines turbines have been imported from Europe (unit capacities between 500 kW and 1,000 and the United States. As of mid-2008, kW). For large-scale wind farms comprised the average initial plant costs were around of wind turbines with capacities of more 300,000 JPY/kW and the electricity pur- than 1,000 kW, COE was in the range of chase price was 10.4 JPY/kWh. The COE 7.0 to 9.0 JPY/kWh. for 2008 is quite difficult to determine due The average wind turbine cost was to the social and natural obstacles described

Figure 5 A view of Tomamae wind farm region.

192 2008 Annual Report Japan

Figure 6 Operational data of Tomamae Yuhigaoka wind farm owned by the town of Tomamae. in Section 3.1 as well as the global eco- for Wind Project Support (Wind Business nomic crisis. Support) and Subsidy Support for Grid Measures. The latter is a special incentive 4.0 National Incentive Programs to encourage faster wind developments by In fiscal year 2002, national wind energy R, solving the grid battery back-up system D&D programs were closed and the main barrier. stream of governmental incentive programs on wind energy were switched to subsidies 5.0 National R, D&D efforts for wind plant developments and investi- Concerning wind technology R, D&D, gations on grid issues. However, the grid three programs are running. It is also worth issues and external conditions such as ex- special mention that the basic research pro- treme wind, high wind gusts, and lightning grams were revived, although the focuses were found to be still technically important are still in the field of applied technology. and investigations and demonstrations on these issues have been conducted for the 5.1 Applied technology research past several years. NEDO reported J-Class Advanced Wind Technology is a compre- (for Japanese conditions) Wind Turbine hensive program which includes both basic Guidelines in 2008 for the purpose of tech- and applied research. Two key areas are nical safety of wind turbines installed in remote sensing for advanced wind mea- Japan. An investigation program on offshore surements and lightning measurements and wind started as well. J-class wind models for development of The governmental incentive programs future safety standards. The projects aim to under the Ministry of Economy, Trade, and keep international co-operation with IEA Industry (METI) are summarized in Table 3 Wind R, D&D and IEC standards. with their time periods and budgets in fis- Under the Offshore Wind Technology cal year 2008. The total budget was 26,483 Project, several candidates for offshore wind million JPY, which is 94.3% of the budget sites were selected to start feasibility studies in fiscal year 2007. The main support and and project designs. Based on the feasibility market stimulation incentives are subsidies studies; wind, wave, and soil measurements;

IEA Wind 193 National Activities Million Japanese Yen (MJY) Million Japanese Yen 18 26,483 60 210 200 185 2,960 2,400 20,450 2007 2008 2009 2010 2011 2012 2013 (Part of Advanced Wind Technology) 2006 NEDO/JEMA Standard Subsidy METI Subsidy NEDO/METI Table 3 JapaneseTable National Incentive Programs. Data courtesy of METI and NEDO. ProgrameNew Energy Development wind)) Support (for Technology Wind Advanced R,D&DOffshore Technology Category NEDO/METI ProgrammeField Test Organization StabilizationGrid R,D&D R&DBattery-Backup Technology D&D NEDO/METI Support for Grid Connection for Battery NEDO/METI D&DBack-up Plant NEDO/METI IEA R&D WIND NEDO/METI (JIS, Standardarization IEC) TOTAL R,D&D Year NEDO/AIST

194 2008 Annual Report Japan and offshore wind performance predictions, offshore. Therefore, activities of the IEC detailed designs will be conducted in 2009. and JIS are conducted by METI, NEDO, Field Test Programme is a co-operative Japan Electrical Manufacturer’s Association research project with NEDO that will take (JEMA), and the National Institute of Ad- high-altitude wind measurements at several vanced Industrial Science and Technology promising sites in order to develop useful (AIST). wind databases. Concerning demonstrations on grid is- 5.2 Collaborative research sues, the Grid Stabilization Programme and Since 1978, Japan has been the member Battery Back-up Demonstration Project of IEA Wind. In 2008, AIST expanded were closed in 2008. One of the main tech- Japan’s involvement in collaborative re- nical targets of the Grid Stabilization Pro- search through participation in IEA Wind gramme was to investigate the performance Research Tasks. Since 1988, Japan has been of wind generation prediction techniques involved in IEC activities aimed at estab- using CFD (Computational Fluid Dynam- lishing international standards for wind tur- ics) models. Its availability was well appre- bine technology. The Japanese Wind Energy ciated but it has not been introduced as a Association (JWEA) and the Japanese Wind common and powerful tool to help solve Power Association (JWPA), have been co- the grid issues. The Battery Back-up Dem- operating as a member of the Global Wind onstration Project contributed technical Energy Council (GWEC) since March experience, and its database will contribute 2005. to future wind development with higher penetration. Author: Hikaru Matsumiya, Guest Re- Standardization of wind turbine tech- searcher, National Institute of Advanced nology is very important for reliability and Industrial Science and Technology, Japan. safety since Japan has some very severe external conditions onshore as well as

IEA Wind 195 National Activities

196 2008 Annual Report Chapter 22 1.0 Introduction In 2008, the first 750-kW turbine com- Republic of Korea mercially produced by Unison was purchased by a Korean utility company (Figure 1), while the prototypes of both an additional 2 GW of wind energy capac- Unison’s and Hyosung’s 2-MW turbines ity is needed from 2009 to 2012 to reach were installed for type testing. Doosan’s the target. To achieve the goals of the plan, 3-MW turbine for offshore was still under the Korean government set the Third Ba- development in 2008 and is scheduled for sic Plan for NRE. On 27 August 2008, field testing in 2009. So far, progress in the Third National Energy Basic Plan for the Korean wind market remains a little Green Growth officially introduced green behind schedule. At the end of 2008, the growth as “new national development cumulative installed capacity was 236 MW paradigm” that creates new growth en- (Table 1). The new installation of 43 MW, gines and jobs. Because Korea is the tenth indicates the current difficulty caused by largest energy consumer in the world, the the increased price of imported wind tur- economic feasibility of green energy has bines (due to currency exchange rate based increased due to the high price of oil. The on global economic crisis) and existing domestic market also has a good potential barriers of limited onshore sites and public for greenhouse gas reduction. According to acceptance issues (Figure 2). the new plan the capacity target for wind In 2008, the Korean government set energy will be 4,336 MW by 2015 and the Third National Basic Plan for New and 7,301 MW by 2030. Renewable Energy R&D and Deployment (Third Basic Plan for NRE). This is a revi- 3.0 Benefits to National Economy sion of the Second National Basic Plan 3.1 Market characteristics for NRE announced in 2003. According The Third Basic Plan for NRE states that to the Third Basic Plan for NRE, the total for primary energy consumption, the share installed capacity of wind turbines will be of new and renewable energy will be 4.33% more than 7 GW in 2030. The data used in in 2015 and 11% in 2030. For the electric- the following tables and this report are pro- ity supply target, wind generation is ex- vided by the New and Renewable Energy pected to provide the largest contribution Center under the Korea Energy Manage- (up to 42% or 16.6 TWh) of the total gen- ment Corporation (KEMCO). eration of 39.5 TWh by new and renewable sources in 2030. To achieve this goal, the 2.0 Progress Toward government is providing attractive incentive National Objectives programs such as the 15-year guaranteed At the end of 2008, 150 wind turbines feed-in tariff, tax incentives, and subsidies were operating in Korea. According to the for the local wind market. Encouraged target in the Second Basic Plan for NRE, by strong government support of R&D

Table 1 Key Statistics 2008: Korea Total installed wind generation 236 MW* New wind generation installed 43 MW* Total electrical output from wind .421 TWh* Wind generation as % of national electric demand 0.1%* Target: 7,301 MW by 2030 * tentative

IEA Wind 197 National Activities

turbines were installed and will remain under field testing until mid-2009. The Korean wind farm business has been slow so far for several reasons, including the complex system for approval of developments caused by conflict among existing laws, public acceptance issues, and difficulty getting permits for grid connection. Also, onshore sites are limited because of mountainous terrain. The onshore wind map feasibility study performed by the Korea Institute of Energy Research (KIER) estimates the potential for wind farm development at up to 7.8 GW. In addition to this onshore possibility, the government is supporting an offshore wind map study that indicates an additional expansion potential of about 18 GW, reflecting the advantage of being a peninsula country. However, offshore wind construction might be challenging due to deep-sea foundation issues, concerns over coastal fishery rights, military radar issues, and environmental issues.

3.2 Industrial development and operational experience The Korean wind industry is growing rapidly, especially in the development of wind Figure 1 Unison’s ﬁ rst commercial product of turbines and components, while most 750-kW direct drive, U50, has been installed installations related to wind farm develop- in Korea Hydro & Nuclear Power Co., Ltd. ment still depend on imports. Even though existing wind farms have been gaining programs, several big companies have been experience in operation and maintenance, participating in wind turbine development the repair or exchange of parts is still in projects, including local production of com- the hands of foreign manufacturers. For ponents. In 2007, as a result of government this reason, several imported wind turbines support in previous years, 750-kW and 1.5- had to be shut down for long periods due MW wind turbines were successfully tested to delays in the delivery of re-imported and certified by GL and DEWI Offshore parts. This kind of problem is one reason and Certification Centre GmbH, respec- why local manufacturers and developers tively. In 2008, two different 2-MW wind are accelerating their efforts to build up

Table 2 Total Installed Wind Capacity in Korea Year ~2001 2002 2003 2004 2005 2006 2007 2008 Total Capacity (MW) 7.9 4.7 5.4 50 30 77 18 43 236 Electrical Output (GWh) 32 15 21 48 130 239 399 421 1305

198 2008 Annual Report Korea

Figure 2 Taegi mountain’s 40-MW wind part using VESTAS V80 turbines. in-house technical expertise and supply achieve this goal, the feed-in tariff is an the local market. important element of the government’s in- In 2008, three new big players—Hyun- centive policies. Wind generation is eligible dai Heavy Industries, Samsung Heavy for a 15-year feed-in tariff of 107.29 Won/ Industries, and Hyundai-Rotem—entered kWh, which is scheduled to be reduced by the wind turbine manufacturing market 2% every year after October 2009. Accord- in Korea with megawatt-scale wind turing to this plan, however, the Renewable bines. In addition to the existing turbine Portfolio Standard is scheduled to take ef- manufacturers market initially formed by fect in 2012, and it will be the one of the companies such as Unison, Hanjin, Doo- most important policies. san Heavy Industries, and Hyosung Heavy For demonstration projects or stand- Industries, all major shipbuilding heavy alone small wind installations of less than industries are finally ready to begin manu- 50 kW, the government provides subsidies facture of wind turbines. Future business up to 70% to 80%. The government also competition among these major heavy in- provides subsidies to local governments of dustries might open a new era accelerating up to 60% for the installation of a new and technology development and the national renewable facility. This subsidy allows one- wind industry as a core growth engine of tenth of the installation cost to be deducted green energy. The industrial value chain from income or corporation tax for the or supply chain had been formed with the year. Also, an import tariff rate reduction is existing infrastructure of utility companies, applied for stand-alone or grid-connected major shipbuilding heavy industries, and wind generators and blades. The govern- their components subcontractors. Taewong, ment also compensates any loss by com- Pyongsan metal, and Hyunjin Materials mercial banks up to a certain portion when hold the biggest share of the world market long-term project financing to renewable for hot forging metal parts such as main energy construction is offered at lower shafts, tower flanges, and bearing rings. than commercial rates. A single renewable They are exporting major wind turbine construction facility can make a proposal to components to Vestas, Enercon, Gamesa, KEMCO for a maximum of 10 billion Won GE Wind, and others. About half of the that is payable over ten years following an world’s market for wind turbine towers initial five-year grace period. is also covered by the Korean companies Unison and Dongkuk S&C. 5.0 R, D&D Activities Support of wind power is one way the Ko- 4.0 National Incentive Programs rean government can cost-effectively con- According to the Third Basic Plan for centrate the R, D&D investment among NRE, except for energy from wastes and new and renewable sources. The govern- biomass, wind energy will supply the big- ment’s annual budget for wind R, D&D in gest portion (12.6%) of the final target for 2008, 56.8 billion Won, has been aimed at new and renewable sources in 2030. To localizing the manufacture of megawatt-size wind turbine systems and their components.

IEA Wind 199 National Activities

Recent government research has been car- of domestically manufactured wind genera- ried out to develop 2-MW onshore and tors as demonstration projects. This support 3-MW offshore domestic turbine models. should help Korean manufacturers to install The research program is also running a their turbines in several places. Government 4-MW offshore wind farm demonstration R, D&D support will also be focused on project that will be completed in 2009. speeding up the domestic manufacture of The important results of government- turbine components like gearboxes, pitch sponsored projects during 2008 were and yaw systems, and bearings. According the development of 2-MW direct-drive to the national R&D roadmap, long-term permanent-magnet-generator wind tur- research soon will be initiated on smart- bines, 5-MW offshore wind turbines, and blade concepts for large-rotor-diameter a planning study for a 300-MW offshore turbines and offshore floating foundation demonstration wind farm to be completed structures for deep water. In addition, there by 2012. Hyundai-Rotem, the high-speed- are increased requests from the wind indus- train manufacturer, signed a development try for education and training of experts contract with the government for 2-MW and for international collaborative research. direct-drive wind turbines in the next three Offshore wind farm developers are looking years, while Hyosung Heavy Industries is forward to a new feed-in tariff for offshore, developing a 5-MW offshore turbine. Ko- while onshore wind farm developers are rea Electric Power Corporation (KEPCO), trying to set up a new policy for direct the key national utility company, signed connection to the existing grid instead on as a primary investigator for planning of to the utility company’s transformer the 300-MW offshore wind farm project. stations. This significant government funding has helped reduce business risk at the initial Authors: Kil-Nam Paek and Seung- stage and speed up technology development Young Chung, Korean Energy Manage- by domestic turbine manufacturers to cope ment Corporation, and Chinwha Chung, with global competition. The national dem- Pohang Wind Energy Research Center, onstration projects for both onshore and Republic of Korea. offshore offer a test-bed of those domestic developments.

6.0 The Next Term During the next few years, the government is willing to support the installation

200 2008 Annual Report Chapter 23 1.0 Introduction During 2008, three new wind power plants Mexico were under construction. All three are to be commissioned in 2009. On 28 November 2008, the government of Mexico issued the Regulatory Commission, about 2.2 GW Law for the Use of Renewable Energy and of wind power capacity will be installed Financing of Energy Transition (Ley para el within the next three years. Aprovechamiento de Energías Renovables The new Law for Renewable Energy y el Financiamiento de la Transición Ener- instructs the Ministry of Energy to prepare gética). The new law will pave the way for and co-ordinate a Special Program for the a significant deployment of wind power Use of Renewable Energy. The program within the next years and decades. is to include specific goals established as In August 2008, the government of minimum percentages in capacity (MW) Mexico, by means of the Federal Electric- and energy (MWh) and the strategies and ity Commission (CFE), awarded a contract actions for achieving them. By the end of for 209 million USD for the construction May 2009, the program will be presented of a 300-km electrical transmission line for for consideration and approval by the presi- wind energy projects. The new line will be dent of Mexico. rated at 2,000 MW and will be shared by Mexico’s largest wind energy resource several wind project developers that also is found in the Isthmus of Tehuantepec in will share proportionally a long-term pay- the state of Oaxaca (Figure 1). Average an- ment obligation for the line. The transmis- nual wind speeds in this region range from sion line will be commissioned by the end 7 m/s to 10 m/s, measured at 30 m above of 2010. the ground. Given the favorable character- CFE issued a second call for bid to istics of this region, particularly its topog- construct a 100-MW wind power plant raphy, it is estimated that more than 2,000 within the independent power producer MW of wind power could be commercially (IPP) modality (La Venta III) after a first tapped there. In fact, during 2008, La Venta call for bid was declared void. Results of II, the 83.3-MW wind power plant owned the bidding process will be known by by CFE, operated at a capacity factor of May 2009. CFE issued another call for around 34%. This compares favorably with bid to construct another 100-MW wind capacity factors of wind power plants lo- power plant, also within the IPP modality cated in the best inland sites in the world. (Oaxaca I). National consumption of electricity According to plans of several wind is expected to grow from 209.7 TWh in power developers that already have ob- 2008 to 281.5 TWh in 2017, represent- tained permits granted by the Energy ing an increase of 71.8 TWh of electricity

Table 1 Key Statistics 2006: Mexico Total installed wind generation 84.6 MW New wind generation installed 0 MW Total electrical output from wind .254 TWh Wind generation as % of national electric demand 0.12 Target: 2.2 GW by 2010 to 2012* 6% of electric generation by 2030** * From ofﬁ cial projections **Shared vision from 2005 workshop

IEA Wind 201 National Activities

Figure 1 Location of wind turbines installed in Mexico as of December 2008. generation equivalent to about 14 GW Access to the grid; Recognition of external of additional generating capacity. Of this, costs; Recognition of capacity credit; Tech- 3.5 GW are already under construction or nical standards for interconnection; Infra- planned, the majority using combined-cy- structure for electricity transmission; Envi- cle gas-turbine technology. The remaining ronmental standards; Support for industrial 10.5 GW will come from new projects. An development; and Support for research and opportunity therefore exists for supplying development. a reasonable portion of the uncommitted 10.5 GW of new capacity using Mexico’s 2.2 Progress wind energy resource. By the end of 2006, CFE commissioned Mexico’s first significant-capacity wind 2.0 Progress Toward power plant (La Venta II) (Figure 2). It is National Objectives rated at 83.3 MW and has 98 850-kW The Law for the Use of Renewable En- wind turbines from the Spanish manufac- ergy and Financing of Energy Transition turer Gamesa Eólica (Table 2). The plant is is a sound signal from the government of owned by CFE and was constructed under Mexico regarding both political will and the modality of financed public work. This commitment for energy diversification to- means that a private contractor is respon- ward sustainable development. The regula- sible for the financing and construction of tory instrument for this law will be issued the wind power plant, and CFE pays the by mid-2009. contractor the total amount of the contract when the plant is commissioned. After that, 2.1 Strategy CFE owns and operates the plant. La Venta The main elements of strategy that are II is becoming an important project within already included in the new law for renew- CFE to increase knowledge about how to able energy are: merge wind power technology into the na- Strategic goals; Special Program on Re- tional electrical system, to gain confidence newable Energy; Creation of a green fund; on operation and maintenance issues, to

202 2008 Annual Report Mexico assess direct and indirect benefits, and to Spanish company Iberdola, began con- learn about all those technical issues that struction of the first privately owned wind are not very transparent in the commercial power plant for self-supply purposes. Rated arena. at 79 MW, the plant is being built with 93 La Venta II was constructed in one of 850-kW wind turbines from the Spanish the windier sites in the Isthmus of Tehuan- manufacturer Gamesa Eólica. By the end of tepec. It is expected to operate at annual ca- 2008, most of the wind turbines had already pacity factors above 40%. The estimated in- been installed; the plant is scheduled to be vestment cost of this plant was 1,370 USD commissioned in February 2009 (Figure 3). per installed kilowatt, not including the cost In mid-2008, Bii Nee Stipa S.A., an of the transmission line. The contract for association led by the Spanish company construction was awarded to the Spanish Gamesa Energía, began construction of the consortium Iberdrola-Gamesa. second privately owned wind power plant In mid-2007, Parques Ecológicos de for self-supply purposes. Rated at 22.9 MW, México S.A., an association led by the the plant is being built with 26 850-kW

Table 2 Wind Turbine Installations in Mexico at the End of 2008 Location Manufacturer Wind turbines Capacity Commissioning Owner (MW) date La Venta, Vestas 6 x 225 kW 1.35 1994 CFE Oaxaca Guerrero Gamesa 1 x 600 kW 0.60 1998 CFE Negro, Eólica Baja California Sur La Venta, Gamesa 98 x 850 kW 83.30 2006 CFE Oaxaca Eólica Total 105 85.25

Figure 2 La Venta II 83.3-MW windfarm on the Isthmus of Tehuantepec, Mexico.

IEA Wind 203 National Activities

Figure 3 Parques Ecológicos de México (93 MW under construction). wind turbines from the Spanish manufac- In 2008, Eurus S.A., a consortium turer Gamesa Eólica. By the end of 2008, managed by the Spanish company Acciona most of the wind turbines had already been and the Mexican company Cemex, started installed; the plant will be commissioned by construction of a 250-MW wind power mid-2009. plant in the Isthmus of Tehuantepec. It will In mid-2007, CFE launched a call for include 166 1.5-MW wind turbines manu- bid to construct a 100-MW wind power factured by Acciona. By the end of 2008, plant within the IPP modality. The bidding about 25 wind turbines had been installed included a potential complement to the (but not commissioned yet). The project electricity buyback price of about 0.015 was suspended because of some disagree- USD/kWh that would be granted by the ments with a group of local people; it is Global Environmental Facility through expected that a win-win agreement will be the World Bank. Only two consortiums reached so construction of the project may (both Spanish) participated in the bidding. continue as soon as possible. Unfortunately, the bidding process was declared void. One of the companies was 3.0 Benefits to National Economy excluded during the evaluation of the tech- 3.1 Market characteristics nical offers while the other was excluded The wind power market in Mexico is still during the evaluation of its economic of- in its early stage, and negotiations between fer. In 2008, CFE issued a second call for interested parties are still in progress. The bid for this project. Also during 2008, CFE major companies of the industrial sector issued another call for bid to construct an- are very interested in electricity self-supply other 100-MW wind power plant within projects based on wind power, and several the IPP modality (Oaxaca I). The results companies are evaluating their economic of both bidding processes will be made feasibility. In addition, several municipal known in 2009. governments, as well as organizations of the trading and services sectors, are in similar

204 2008 Annual Report Mexico positions. Indeed, several important compa- billing purposes, the country is divided nies have already obtained permits to build into eight regions. Each region has its own wind power projects. Simultaneously, inter- timetable for electric tariffs throughout the est is growing in the installation of manu- day. As an example, Table 3 shows the price facturing facilities for wind turbines. for the HM tariff (general tariff for medium voltage—e.g., 115,000 V). 3.2 Industrial development and In 2008, a special buyback price for operational experience wind energy had not been set in Mexico. During 2008, the combined electricity However, according to commitments made production from CFE’s wind power plants between private companies within the self- La Venta I (1.3 MW) and La Venta II (83.3 supply modality, it seems that some wind MW) was around 254 GWh. The facilities energy projects in the Isthmus of Tehuan- operated at an annual capacity factor of tepec are reaching economic feasibility. The 34%, according to Eng. Carlos Aguilar, the main constraints on wind power market manager of the wind power plants. As men- development in Mexico are as follows: tioned previously, it was expected that the • Electricity for the industrial sector is capacity factor of La Venta II would exceed subsidized. 40%; however, there were some constraints • The methodology for computing regarding the availability of the transmission the buyback price for wind energy line and some of the wind turbines. that would come from IPPs (especially The Mexican company Fuerza Eólica from small power producers) is not is manufacturing permanent-magnet elec- fully appropriate for reaching the point tric generators for the U.S. wind turbine of financial feasibility for the projects manufacturer Clipper Windpower. This (including those projected at the best Mexican company is also manufacturing a windy regions). 5-kW wind turbine, primarily for export • There is a critical need to generate markets. Several wind turbine compo- a confident and stable business envi- nents—including towers, generators, gears, ronment that can provide appropriate conductors, and transformers—could all guarantees to international and national be manufactured in Mexico using existing financial institutions on the viabil- infrastructure. Indeed, all the towers for the ity and profitability of wind power La Venta II wind power plant were manu- projects. factured in Mexico. A joint venture facility • There is a critical need to include is manufacturing wind turbine blades in fitting and fair social benefits to wind Mexico (exclusively for export). More than landowners (especially to peasants) 200 Mexican companies have the capacity in the negotiation of wind power to manufacture the parts required for wind projects. turbines and wind power plants. The country also has excellent technical expertise in Table 3 Example of Electricity Price in civil, mechanical, and electrical engineering Mexico* that could be tapped for plant design and construction. The new law for renewable Period Price energy instructs the Ministry of Energy and (Mexican Pesos/kWh) the Ministry of Economy to promote man- Peak 1.93 ufacturing of wind turbines in Mexico. Intermediate 1.29 3.3 Economic details Base 1.08 Electricity prices to consumers vary depending on the region, time of day, voltage, * Central Region, December 2008 and kind of user (sector). For electricity

IEA Wind 205 National Activities

• Planning studies for deploying wind specific wind power plant for self-supply power at the national level have not purposes does not generate any power dur- yet been carried out. ing just five minutes over one month, then • At the international level, the de- full contracted capacity is used to compute velopers that have back-ordered wind billing charges. turbines are controlling the wind During 2005, the Secretariat of Energy development; wind turbines for new (Sener), Mexico’s Energy Regulatory Com- wind energy projects are becoming mission (CRE), and the Mexican Associa- scarce or very expensive. tion of Wind Power (AMDEE), with the technical support of the Instituto de Inves- 4.0 National Incentive Programs tigaciones Eléctricas (IIE), carried out an In September 2001, the federal government intensive negotiation with CFE to achieve through the Energy Regulatory Commis- the recognition of certain capacity credit sion issued the first incentive for renewable for wind power. By the end of 2005, these energy. Embedded in existing legal and participants agreed on a modification of the regulatory frameworks, this new incentive agreement. The modification includes the consists of a model agreement for the in- recognition of capacity credit of renewable terconnection of renewable energy power energy technologies, based on the aver- plants to the national electrical grid. It al- age capacity factor computed during the lows self-supply generators to interchange system’s peak hour. The modification was electricity among various billing periods issued in early 2006. (e.g., base to peak). In this fashion, self-sup- A tax incentive was issued in Decem- pliers do not necessarily have to sell surplus ber 2004. The federal law for income tax electricity to CFE, because generation de- (Ley de Impuesto Sobre la Renta) allows livered to the grid during certain periods accelerated depreciation of investments in can be credited to compensate for the elec- renewable technologies (wind energy is tricity extracted from the grid during other specifically included). Investors may de- different periods. The interchange was duct 100% of the investment in a year (one allowed based on the ratio of the marginal year of depreciation). Before, investors in costs among various billing periods; there- equipment for electricity generation were fore, more than 1 kWh must be generated allowed to deduct only 5% in one year (20 during a base period to match 1 kWh re- years of depreciation). The equipment must quired in a peak period. operate for at least five years following the This administrative incentive was de- tax deduction declaration; otherwise, com- signed to improve the economic feasibility plementary declarations are obligatory. of some self-supply wind power projects, especially those for municipal public light- 5.0 R, D&D Activities ing, where the plants generate a consid- The first demonstration project, La Venta erable quantity of electricity during the I, a 1.6-MW wind power plant sponsored daylight period when no electricity is by the Mexican government, was built in required. Furthermore, before this incen- 1994. In 1998, a 600-kW wind turbine was tive, electricity transmission charges for a installed at Guerrero Negro. CFE operates renewable energy self-supply project were both of these projects. computed based on the project’s rated ca- With the economic support of pacity. Today, these charges are reduced to the Global Environmental Facility the power plant capacity factor level. How- (GEF) and the United Nations Devel- ever, this incentive was not effective since opment Program (UNDP), the IIE is capacity charges were computed based on working to implement a Regional Wind a five-minute period. This means that if a Technology Center, which aims to offer the following provisions:

206 2008 Annual Report Mexico

• Support to interested wind turbine prediction of wind power output at La manufacturers for the characterization Venta II. CFE is preparing a Grid Code of their products under the local con- for the interconnection of new wind pow- ditions at the La Ventosa area er plants to the national electrical system. • A means to train local technicians in the operation and maintenance of 6.0 The Next Term wind turbines Expectations for 2009 include the follow- • An easily accessible national technol- ing. Several wind power projects already ogy display that facilitates interaction under construction that will be commis- between wind turbine manufacturers sioned during 2009: Parques Ecológicos de and Mexican industries, thus promot- México, 79 MW; Bii Nee Stipa, 28 MW; ing the identification of possible shared and Eurus (first phase), 150 MW. The results business ventures of the calls for bid for two CFE projects • A modern and flexible installation will be known. The regulatory instruments that will enable researchers to obtain for the Law on Renewable Energy will be hard operational data on the interac- issued. A green fund for renewable energy tion of specific types of wind turbines will be available, and the rules for its ap- with the electrical system plication will be established. A Special Pro- • A means to understand international gram on Renewable Energy will be estab- standards and certifications (issued lished. Several studies, methods, standards, abroad) in order to identify additional and other instruments aimed at fulfilling requirements to fit local conditions the objectives and instructions of the Law • A means to increase the playing level on Renewable Energy will be prepared and of national research and technology issued. Several private consortiums will start development, including joint projects the construction of their projects, planning or specific collaboration activities with for commissioning dates at the end of 2010 prestigious overseas R&D institutions. or by early 2011. In 2010 it is expected that a 2,000- Construction of the basic infrastructure MW transmission line for wind energy of the Regional Wind Technology Cen- projects will be commissioned. A number ter was completed in 2007. It is the first of private consortiums will be ready to in- project to receive a permit to operate as a terconnect their wind turbines to the new small power producer in Mexico. However, transmission line. the installation of wind turbines has been For 2011 to 2012, it is expected that delayed because of the long delivery times CFE´s wind power installed capacity will for machines in the wind energy market reach 84.6 MW. IPPs’ wind power installed worldwide. capacity (for selling the electricity to CFE) The wind energy resource in several will be around 505 MW. Privately owned promising areas of Mexico has not been wind power installed capacity (self-supply evaluated in detail. Therefore, IIE’s wind modality) should reach 2,000 MW. Total power action plan includes the explora- installed wind power capacity in Mexico tion and assessment of the wind energy would then reach about 2,600 MW. resource at both known and new regions. By the end of 2007, one full year of data Author: Marco A. Borja, Instituto de had been collected for 20 promising new Investigaciones Eléctricas (IIE), Mexico. areas. Furthermore, through a contract with CFE, the IIE carried out a feasibility study for a wind power station in the state of Baja California Sur. Also, there is increasing interest by CFE in the short-term

IEA Wind 207 National Activities

208 2008 Annual Report Chapter 24 1.0 Introduction The Netherlands saw an all-time record of The Netherlands 490 MW of new wind capacity installed in 2008. The total installed wind capacity reached 2,214 MW. Wind power gener- of 2008 was 2,214 MW (Figure 1). Of the ated 4.3 TWh of electricity or 3.6% of the turbines decommissioned in 2008, 37 (total country’s total electricity consumption of capacity 14.6 MW) were replaced with 53 119 TWh (Table 1). The Netherlands gov- turbines (total capacity 126 MW). The net ernment confirmed its ambition to increase repowering effect was an increase of about its target from 10% to 20% renewable 112 MW. The large repowering effect was energy in 2020. This implies an installed mainly due to the decommissioning at wind capacity of about 4 GW onshore and Eemshaven in the province of Groningen 6 GW offshore. The second offshore wind of 20 Kenetech 33 turbines (total capacity farm, Q7 of 120 MW, was completed and 7.24 MW) and the installation at that site started operations. of a mix of Enercon E82 and Vestas V90 turbines (total capacity 114 MW) (2). 2.0 Progress Toward National Objectives 2.2 Government objectives 2.1 Progress in 2008 The national target is for 9% of the total The production of electricity from all re- electricity consumption to be supplied by newables increased from 6.0% of the total renewable electricity in 2010. The govern- electricity consumption in 2007 to 7.5% ment has the ambition to achieve energy in 2008 (Table 2). This was due to the savings of 2% per year, a share of renewable increased production of wind electricity energy of 20% in 2020, and a reduction of and the co-firing of biomass in electricity greenhouse gas emissions of 30% compared plants. The contribution of wind electric- to 1990. ity was 25% higher than in 2007 due to Until 2011, the government expects the additional 490 MW of installed capac- the growth of renewable energy to come ity. The co-firing of biomass in electricity mainly from wind energy. The estimated plants also increased 25% over 2007. In growth for wind both onshore and offshore 2008, wind produced about half of the re- is given in Table 3. The government expects newable electricity in the Netherlands (1). to stimulate the availability of necessary In 2008, 221 wind turbines were in- sites through various spatial planning activi- stalled with a total capacity of 490 MW ties and the production of renewable ener- and 63 turbines with a total capacity of 22 gy through the allocation of MEP and SDE MW were decommissioned. The net added subsidies of 900 million € from 2008 to capacity in 2008 was therefore 469 MW, 2011. For a more detailed explanation, see and the total installed capacity at the end the 2007 IEA Wind Energy Annual Report

Table 1 Key Statistics 2008: The Netherlands (1) Total installed wind generation 2,214 MW New wind generation installed 490 MW Total electrical output from wind 4.3 TWh Wind generation as % of national electric demand 3.6% Target: Renewable Electricity in 2010 9% Ambition: Renewable Energy in 2020 20%

IEA Wind Energy 209 National Activities

Table 2 Wind generated electricity, 2.2.1 Wind on land avoided fossil fuel, and national Under the so-called Administrative Agree- electricity consumption ment National Development Wind Energy (Dutch acronym BLOW), the departments Wind Primary National generated energy electric- of economic affairs, spatial planning, wa- electricity savings ity con- ter management, agriculture, defense, and [GWh] [PJ] sumption the provincial and local authorities work [GWh] together to create enough available sites. At the end of 2008, about 1,700 MW of 1985 6 0.05 projects were in the pipeline that fit in the 1986 7 0.06 provincial spatial policy. The government’s ambition to double 1987 14 0.12 the capacity for wind on land by 2011 1988 32 0.26 (compared to 2007) and remove barriers to increasing the capacity after 2011 has been 1989 40 0.33 underlined by signed agreements with the 1990 56 0.50 78,582 provincial and local authorities. For the short term, a solution has been worked out 1991 88 0.78 80,803 for conflicts of interests concerning spatial 1992 147 1.30 83,173 planning issues (safety, noise), radar signal disturbance, and nature conservation on 1993 174 1.56 84,318 one hand and wind energy on the other. 1994 238 2.12 87,067 Active support of projects on a local level is also in place. For the long term, a spatial 1995 317 2.79 89,058 perspective has been worked out in co- 1996 437 3.76 92,259 operation with all government levels. For a more detailed explanation of BLOW see 1997 475 3.98 95,735 the 2007 IEA Wind Energy Annual Report. 1998 640 5.32 99,292 2.2.2 Wind offshore toward 450 MW 1999 645 5.34 101,508 To reach the ambition of committing 450 2000 829 6.86 104,718 MW of offshore wind power within the present government 2008 to 2011 time- 2001 825 6.98 107,144 frame, the ministries of Economic Affairs, Water Management and Environment pub- 2002 946 7.98 108,452 lished a scenario in June 2008. The outline 2003 1,318 11.11 109,777 is as follows. Step 1. The general part of the govern- 2004 1,867 15.59 112,930 ment’s evaluation criteria of ecological ef- 2005 2,067 17.22 114,471 fects is ready by 1 July 2008 and will be an integral part of all Environmental Impact 2006 2,737 22.46 116,085 Assessments (EIA). 2007 3,437 28.71 118,463 Step 2. The main criteria for allocating the SDE subsidies through a tender are 2008 4,259 35.57 119,300 ready and published per 1 July 2008. CBS Numbers CBS ﬁ nal Step 3. Consultation of the wind industry about criteria for allocating the SDE subsidies and the evaluation criteria of ecological effects. In the autumn of 2008, the 11 initiators will be asked to indicate

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Figure 1 Installed, removed, and cumulative wind turbine capacity in the Netherlands. how many of the 77 initiatives they will Table 3 Necessary growth of wind continue to pursue by supplying building energy up to 2011 permit applications (including EIA) before 1 March 1 2009. Necessary growth of Capacity wind energy [MW] Step 4. Evaluation of EIAs by the Ministry of Water Management before 1 Wind on MEP 2007 2,100 February 2009. During this period, vari- land to 2008 ous (small) adjustments can be made due Growth SDE 2008 2,000 to nautical and air traffic safety, and envi- to 2011 ronmental impact. The completed building permit application including a completed Total on land 2011 4,100 EIA needs to be supplied by 1 March 2009 Wind off- MEP 2007 230 at the latest. After this date new applications shore to 2008 will not be accepted. In the first half of 2009 the SDE sub- Growth SDE 2008 450 sidy criteria for wind offshore will be de- to 2011 tailed and published. Total off- 2011 680 Step 5. Applications for the SDE sub- shore sidy have to be submitted to the Ministry of Economic Affairs before 1 December Total wind 2011 4,780 2009. A maximum of 450 MW offshore capacity will be allocated in this first SDE tender. An applicant needs to have a valid building permit, supply a solid business

IEA Wind 211 National Activities plan and project finance, and have enough • Wind areas offshore are areas where, experience. according to the vision of the govern- Step 6. Evaluation of subsidy applica- ment, wind farms could be realised tion by the Ministry of Economic Affairs while taking into account other func- according to the published criteria up to 1 tions in the North Sea (ecological con- April 2010. ditions, ship and air traffic, oil and gas Step 7. 1 April 2010. Decision to allo- exploration, etc.). Point of departure is cate SDE subsidies up to a capacity of 450 an area large enough for about 6,000 MW by the Ministry of Economic Affairs. MW Step 8. Check building activities by the • The total surface area of the wind ar- Ministry of Water Management. The build- eas will be about 1,000 to 1,500 km2 ing activities have to be started within three • Weighing of interests to designate the years after the date the building permit was wind areas takes place via the process issued. All issued building permits in 2009 of a Strategic Environmental Assess- automatically expire after three years. This ment and the structural vision of the automatic expiration includes building per- National Water Plan mits that were not awarded an SDE subsidy. • The status of these wind areas is that The timeline and deadlines are given in they will be reserved for the function Table 4. wind and that the government com- mits itself to only give SDE subsidies 2.2.3 Wind offshore toward 6,000 MW in these areas To reach the Netherlands’ ambition of 20% • Periodically the government (initia- renewable energy in 2020, the government tive minister of Ministry of Economic is aiming at 6 GW of offshore wind capac- Affairs) opens “wind lots/licence ar- ity. Preparations for the issue of locations eas” to tender a subsidy allocation and were announced with the above-mentioned obtain “licence” scenario in June 2008. They were given in • Wind lot is the area, determined in a so-called “contour for a new policy (for coordinates, within the wind area wind offshore)” and consist of three main • The government determines the size elements. of the wind lot in advance and it is The government (initiative sub-secre- (periodically) dependent on available tary of state of Ministry of Water Manage- subsidy ment) designates “wind areas” in the Na- • Market parties can submit propos- tional Water Plan 2009: als for a wind farm in the wind lot at

Table 4 Scenario time line for 450 MW of offshore wind development Action Deadline Completed building permit 1 March 2009 application Final decisions building per- 1 November 2009 mits Application SDE subsidy 1 December 2009 SDE allocation 1 April 2010 Start building activities 1 November 2012

212 2008 Annual Report The Netherlands

disposal in which they have to specify 0.4 jobs are created per MW of cumulative the intended installed capacity, energy capacity in operations, maintenance, and production, and the financial support other activities. About half of these jobs are • The government selects one party associated with wind turbine and compo- from the submitted applications (main nent manufacturing. For offshore the num- criteria are highest energy production bers are higher. for the lowest subsidy, reliability of So for the 490 MW installed in 2008 business plan, technical reliability of we estimate that about 8,000 jobs were the proposal) involved in the EU, of which about 4,000 • The selected party gets a preliminary/ were in the Netherlands. Further, for the conditional subsidy allocation includ- 2,214 MW of total installed capacity, about ing licence, with the obligation to 1,000 jobs are created permanently in op- further develop the wind farm at that erations, maintenance, and other activities. location within a certain period (with The types of ownership have not fixed phased milestones), to submit a changed much from 2007 to 2008. There building permit application includ- seems to be a slight increase in ownership ing EIS, obtain a building permit, and from private enterprises toward energy build and exploit the wind farm companies (Table 5). For a more detailed • The concerned licensee submits a explanation of the types of owners, see the building permit application (includ- 2007 IEA Wind Energy Annual Report. ing EIS) and the government (initia- In 2008, a new developer RWE Off- tive sub-secretary of state of Ministry shore Wind Nederland B.V. started the of Water Management) supplies the process of obtaining building permits for building permit offshore wind farms through the submis- • The building permit is based on an sion of five inception memoranda for envi- EIS and concerns “fine tuning.” The ronmental impact statements as required by suitability of the location has been the Public Works and Water Management globally evaluated (taking into account cumulative effects) when it is designat- (M€) ed a wind area in the National Water Plan.

3.0 Benefits to National Economy 3.1 Market characteristics Total investment in wind energy installations in the Netherlands for 2008 can be estimated at 850 million €, assuming an average investment cost of 1,250 €/kW for the 370 MW installed onshore and an investment cost for the Q7 offshore wind farm of 3,192 €/kW for the 120 MW installed. The total investments in wind energy installations from 1989 to 2008, not corrected for inflation, is estimated at some 3 billion €. Figure 2 shows the investments per year over the period 1989 to 2008. According to the European Wind En- ergy Association (3), 15.1 jobs are created in Figure 2 Investments per year over the pe- the EU for every MW installed. In addition, riod 1989 to 2008.Netherlands.

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Table 5 Ownership of capacity in 2007 and 2008 2007 2008 MW % MW % Private Enterprises 1,354 72 1,523 68 Energy companies 516 28 702 32 Total 1,870 100 2,225 100

Act. Together with the earlier applicants, at of 9% in 2007 went up steeply to 47% in the end of 2008, 11 initiators had supplied 2008. Nordex’s share was 2%. For the first 77 initiatives for offshore wind farms. time ever the market was dominated by two At the end of 2008, the completed en- wind turbine manufacturers with an almost vironmental impact statements and building equal share of the market (Table 7). permit applications for six offshore wind Seven wind farms with an installed ca- farms had been open for public inspection. pacity of 10 MW or higher were installed This implies that the Ministry will not deal in 2008. The largest is the wind farm at with other existing or future claims of oth- Eemshaven and Emmapolder with 192 er developers for the same site. The status of MW, equipped with 3-MW Enercon tur- progress in applications for offshore wind bines. The second largest is the 120 MW farms with these site rights is given in Table offshore wind farm Q7 with 2-MW Vestas 6. The prospective total installed capacity V80 turbines installed 24 km off the coast lies between 1,900 MW and 2,700 MW. of IJmuiden. The third largest is the wind farm Eemshaven-Growind with 63 MW, 3.2 Industrial development and equipped with 3-MW Vestas turbines. The operational experience cluster of wind farms at Eemshaven with The average generation capacity per installed turbine after a sharp decrease to 1,787 kW in 2007 increased again sharply to 2,219 kW in 2008. This is mainly due to the large number of 3 MW turbines from Enercon and Vestas installed in the Gronin- gen Eemshaven area in 2008. From the total of 221 turbines installed, 97 have a capacity of 3 MW. The average hub-height is rising again to nearly 80 m in 2008. From the total of 221 turbines installed, 91 have a hub-height of 100 m. These are also mainly in the Groningen Eemshaven area. The installed swept area per unit of power decreased from 2.5 m2/kW in 2007 to around 2.1 m2/kW, because of the 64 Enercon turbines with 82 m diameter rotors and 3 MW generators installed in 2008 (Figure 3). Of the wind turbines installed in 2008, Figure 3 Annual average characteristics of the Vestas share was 52%. Enercon’s share installed turbines in the Netherlands.

214 2008 Annual Report The Netherlands

Table 6 Building permit applications for offshore wind farms with site rights per 31-12-2008 Offshore wind Area Pmin Pmax Inspection Draft Final Status farm [km2] [MW] [MW] procedure decision decision 01 December 2008 IJmuiden 17 140 246 29 November 18 February Application 2006 2008 withdrawn Katwijk 50 400 705 29 November 18 February Draft declined 2006 2008 Den Haag II 43 270 480 24 January 18 February Application 2007 2008 withdrawn Scheveningen 39 369 369 8 May 22 May 21 December Application Buiten 2007 2008 2008 declined West Rijn 45 250 353 29 November Application 2006 complete Breeveertien II 42 300 403 12 November Application 2007 complete Rijnveld Noord 10 60 60 15 August Application 2008 complete Rijnveld Oost 17 102 102 15 August Application 2008 complete Total 263 1,891 2,718

Table 7 New wind turbines by manufacturer in 2008 Manufacturer Turbines Installed capacity Rotor swept area [MW] [%] [m2] Vestas 128 254.5 52 596,184 Enercon 90 228.4 47 433,336 Nordex 3 7.5 2 19,085 Total 221 490.4 100 1,048,605 around 260 MW is one of the largest con- concrete tower with a conventional tubular centrations of wind farms in The Nether- steel tower part on top. The concrete part is lands (Table 8). built with pre-cast concrete segments that The company Advanced Tower Systems, are long and slender and therefore easy to a joint venture of Dutch MECAL, Hurks transport with ordinary trucks. The expect- Group BV, and German Juwi Holding ed reduction in the costs of energy is up to AG, designed and developed a new prod- 10%. At the end of 2008, the construction uct. It is a hybrid concrete/steel tower, for of the demonstration project with the 100 wind turbines on land with hub-heights m high ATS tower and a Siemens Wind of 100 to 150 m (Figure 4). The tower is a Power SWT2.3-93 wind turbine started at combination of a prefabricated segmented Windtest Grevenbroich in Germany.

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Table 8 Size of wind plants installed in 2008 Wind farms > Manufacturer Turbines Height Diameter Capacity Swept area 5MW [m] [m] [MW] [m2] Eemshaven and Enercon 64 100 82 192.0 337,985 Emmapolder North Sea Q7 Vestas 60 57 80 120.0 301,593 Eemshaven- Vestas 21 100 90 63.0 133,596 Growind Amsterdam- Vestas 9 77.5 90 27.0 57,256 Afrikahaven Aalten Enercon 8 98 82 16.0 42,248 Middelburg- Vestas 12 70 52 10.8 25,485 Borssele Stampersgat Vestas 5 80 80 10.0 25,133 Eemshaven - Vestas 3 100 90 9.0 19,085 Emmapolder Echteld - A 15 Enercon 4 78 82 8.0 21,124 Oosterhout Nordex 3 100 90 7.5 19,085 Tuitjenhorn Enercon 8 60 53 6.4 17,649 Marrum Vestas 7 40 44 5.3 10,644 Midlum Vestas 6 60 52 5.1 12,742 Various < 5MW Others - - - 10.4 24,980 Total 490.41,048,605

The wind turbine manufacturer Dar- erected late in 2009 on a 100 m tower at winD developed another new product. It the ECN test field in Wieringermeer in the is a 5-MW direct drive wind turbine with province of Noord Holland. a rotor diameter of 115 m at 18 rotations The construction of the second off- per minute dedicated for offshore applica- shore wind farm Q7 in the Netherlands’ tions. Its unique features include a 5.3-m part of the North Sea was completed in diameter, 3-kV direct-drive generator with stages in the first quarter of 2008. This off- permanent magnets, a single main bearing, shore wind farm is built just outside the innovative blades, a modern fully sealed 12-mile zone Southwest of the Offshore over-pressured tower and nacelle, external Wind Farm Egmond aan Zee (OWEZ) air generator cooling, and an integrated and has a surface area of 14 km2. The 120- management control system. The turbine MW farm Q7 consists of 60 Vestas 2-MW is lightweight (tower head mass 265 tons), 80-m-diameter turbines, with a hub height yet boasts high operational availability and of 59 m. The investment costs are 383 mil- a minimum of maintenance due to fewer lion €. Q7 is non-recourse financed. The components. The first prototype will be Q7 offshore wind farm was renamed at the

216 2008 Annual Report The Netherlands

inauguration in June as the Princess Amalia offshore wind farm. For a more detailed explanation of the construction of the Q7 wind farm, its ownership and financing, see the 2007 IEA Wind Energy Annual Report.

3.3 Economic details The Ministry of Economic Affairs contracts ECN and KEMA each year to assess the financial viability of the different renewable electricity production technologies in succeeding years. The Ministry uses these assessments, along with other statistics, to decide on the level of the SDE base tariffs required to bridge the difference between cost and market prices (unprofitable top) for each renewable electricity source and technology in succeeding years. The assessment by ECN and KEMA on the costs for projects in the Netherlands aimed at realization in 2009 and 2010 was published in December 2008. The costs for offshore wind projects were not assessed; this will be done separately in 2009. The general financial and economic assumptions for the calculation for wind on land are: an equity share of 20%; interest Figure 4 ATS Hybrid tower. Photo: ATS. rate of 5%; return on equity of 15%; project

Figure 5 Impression of DarwinD turbine. Picture: DarwinD BV.

IEA Wind 217 National Activities

Figure 6 Offshore wind farm Princess Amalia during opening ceremony. Photo: Jaap ’t Hooft, SenterNovem. return (WACC) of 6%; a 15 year loan peri- production costs. The amount of support od; a 15 year economic lifetime; indexation per kWh that a producer receives varies of variable costs of 2%; and a company tax yearly by decreasing the base subsidy tariff of 25.5%. Two assumptions changed in the with the average market price of electric- assessment from 2008-2009 to 2009-2010. ity. For a more extensive description of the Due to the credit crises, the equity share for basic SDE mechanism, see the 2007 IEA project finance rises from 10% to 20%. The Wind Energy Annual Report. cap on energy investment deduction (EIA) At the end of 2008, about a 100 MW changed from 80% of 1,100 €/kW to 600 of wind capacity were allocated a subsidy €/kW. under the SDE scheme. This is lower than Investment costs in the assessment are expected and probably because market par- based on a reference case of orders for a ties still have to get used to the details of 15-MW wind farm with 3-MW wind tur- the new scheme and the financial conse- bines. The O&M costs are seen as represen- quences for their projects. tative for 3-MW turbines. The calculation then led to a base subsidy tariff of 88 €/ 5.0 R&D Activities MWh for the period 2008 to 2009 and 94 For a complete description of the Nether- €/MWh for the period 2009 to 2010. The lands research priorities refer to the 2007 values are summarized in Table 9. IEA Wind Energy Annual Report.

4.0 National Incentive Programs 5.1 Interesting new research efforts The feed-in support scheme SDE is the At the end of January 2008, ECN complet- successor of the MEP scheme and has been ed a so-called ‘Scaled Wind Farm’ research in force since October 2007. It supports the facility. This wind farm is a miniature ver- production of all kinds of renewable energy sion of a full-scale commercial wind farm. with the ability to determine different sup- The project is an integral part of ECN’s port levels for different production tech- test field for multi-megawatt class wind nologies, e.g. wind onshore, wind offshore. turbines. The setup is physically comprised The SDE scheme will make it possible to of ten 10-kW AIRCON 10 turbines and tender wind projects for a requested level of 14 carefully placed wind metering masts at production subsidy and to evaluate projects two distinct heights, 7.5 m and 18.9 m. The on innovative aspects and learning effects. AIRCON 10 is a three-blade horizontal- In the SDE scheme, a base subsidy axis wind turbine, fitted with a 7.6 m rotor tariff is determined on the basis of average

218 2008 Annual Report The Netherlands

Table 9 Technical and ﬁ nancial parameters for wind onshore Wind onshore Advice ECN- Advice ECN- KEMA 2008- KEMA 2009- 2009 2010 Investment [€/kW] 1250 1325 costs Full load hours [hr/yr] 2200 2200 Fixed O&M [€/kW] 24 25 costs Variable O&M [€/MWh] 10 11 costs Base subsidy [€/MWh] 88 94 tariff and an axial-flux type direct drive perma- 5.2 Interesting completed research nent magnet generator. At a wind velocity 5.2.1 Study large-scale storage of 11 m/s the turbine reaches 10 kW rated, On the order of the Transition Platform and output is kept at this constant level up Renewable Electricity Supply, the added to 37 m/s. This is ensured by a combination value of large scale electricity storage was of electrical load regulation and active pitch studied. The results of the study were pub- control. The German made turbines have lished in January (4) and also in a paper been put on short tubular steel towers with (5). The five different technologies studied a 7.5 m hub height. were: low head (40 m) pumped hydro stor- The advantages of a scaled wind farm age basin (60 km2) in the North sea; under- are: costs of wind metering masts for a real ground (1,400 m) pumped hydro storage; farm are very high; switching off several real compressed air energy storage; using Nor- turbines for wake effect measurements is wegian hydro storage via NorNed cable; unacceptable for a commercial wind farm; and more flexibility using electricity from introducing changes into the wind turbine combined heat and power units. control system is given by the AIRCON Analyses were performed on the op- 10 turbine supplier for scaled wind farm erational effects, cost/benefits, costs of grid research purposes. integration, and market effects. The main ECN will use the scaled wind farm conclusion concerning wind energy was mainly for research projects concerning that integration of 4 to 10 GW of wind wind turbine wake modelling and verifi- power in the Dutch Electricity genera- cation. Other research projects at this site tion system is possible without large scale include: the validation of the code ECN electricity storage. This is mainly because Wakefarm; further testing in the scaled of the increasing flexibility of the system wind farm of the patented Heat&Flux con- and the expansion and better utilisation of cept to change the turbine performance in interconnectors. the first rows of the wind farm in order to Even with more than 10 GW of off- increase the total wind farm output; and shore wind power after 2020, large-scale the quantification of the Controlling Wind electricity storage would not be necessary concept in the scaled farm. in following years. This is under the condition that in 2020 the Western European

IEA Wind 219 National Activities

Figure 7 Scaled wind farm at ECN test site. Photo: Jaap ’t Hooft, Senter- Novem. electricity market is functioning well and The General Report covers the period the planned growth of interconnection ca- from June 2005 until commissioning at pacity is realized. the end of 2006. The report describes: the partners and contractual basis; project or- 5.2.2 Results of OWEZ ganisation; permits; technical description of Further results of the Monitoring and the design, support structure, wind turbines, Evaluation program of the offshore wind and electrical design; assembly and instal- farm OWEZ, formerly known as NSW, lation; planning versus execution; budget; became available in 2008. Reports and data health, safety, security, and environment are freely available (6). management; risk management; financing, Results from the OWEZ include wind insurance, and power purchase agreements; climate characteristics. These are half-year quality assurance management; require- reports with analyses of the meteorological ments and qualifications; monitoring and measurements at the 116-m-high meteo- evaluation program; and lessons learned. rological mast at the wind farm. They give In the Operations Report 2007, amoungst others graphical and tabular pre- NoordzeeWind gives an account of the first sentations of wind speed frequency distri- year of operation of the wind farm. It con- butions, turbulence intensity, vertical profile tains monthly statistics and figures about the of turbulence intensity, and wind speed pro- availability of the wind farm and its energy files. The associated 10-min average wind production. Moreover, calculated losses and measurements of the site at three heights of downtime per subsystem affecting this en- the meteorological mast from July 2005 to ergy yield are also presented. It also contains December 2008 are also available. Wave and a complete overview of all data and reports current data are integrated in the files of the delivered by NoordzeeWind on behalf of 10-min average wind measurements of the the MEP-NSW in 2007. NoordzeeWind’s site. A report with a description of the rela- general conclusion in this Operations tion of wind, wave, and current characteris- Report 2007 is that the wind farm, hav- tics is available. ing generated 330 GWh, has performed

220 2008 Annual Report The Netherlands satisfactorily. The Operations Report 2008 country on research gives access to five will be available in mid 2009. euros value of research spent in the other Commercially sensitive data that has participating countries. been collected during 2008 is on the Netherlands research institutes also subjects: corrosion and lightning; dynam- participated in various EC projects. Among ics of turbines; aero-elastic stability; scour others, is the EC project Upwind, which protection; electricity production, disrup- is closely interlinked with the Netherlands tions, failure data, availability, maintenance, INNWIND project. and reliability; power quality, grid stability, and power forecasts; and wind turbine P-V 6.0 The Next Term curve and wake effects. ECN and Delft The following policy developments in 2009 Technical University have started several are expected: the issue of building permits projects with some of this data under an for offshore wind farms; the detailing of the NDA agreement with NoordzeeWind. conditions and subsidy levels and opening of the offshore SDE tender; and the outline 5.2.3 Results of the We@Sea program of the planning for the development of The results of the We@Sea program for the offshore locations, grid at sea, and support research lines: Scenario’s and Integration; levels after 2011. Offshore Wind Energy Technology; Spa- The expected installed capacity in 2009 tial Planning and Environmental Aspects; is between 100 MW and 200 MW. Energy Transport and Distribution; Energy Market and Financing; Installation, Opera- References: tions and Maintenance can be found on (1) Source CBS http://www.cbs.nl/ their website (7). nl-NL/menu/themas/industrie-energie/ publicaties/artikelen/archief/2009/2009- 5.3 Collaborative research 2707-wm.htm Various Netherlands organisations partici- (2) Wind Service Holland, http:// pate in IEA Wind Tasks 11 Base Technology home.wxs.nl/~windsh/nwturtab08.html Information Exchange, 23 Offshore Wind (3) Wind at Work, Wind energy and job Technology Deployment, 25 Design and creation in the EU, By the European Wind Operation of Power Systems with Large Energy Association, January 2009. Amounts of Wind Power, 26 Cost of Wind (4) Download from (in Dutch) http:// Energy , and 29 MexNext Improvement www.senternovem.nl/energietransitiedev/ of Aerodynamic Models. The participation onderwerpen/centrale_elektrische_infra- benefits the Netherlands R&D in various structuur.asp ways. (5) Paper in English http://www.we- As of 2008, the Netherlands research at-sea.org/publications/r3_03.pdf institute ECN acts as Operating Agent in (6) See http://www.senternovem.nl/ Task 29 Analysis of wind tunnel measure- offshorewindenergy/technology_nsw/ ments and improvement of aerodynamic monitoring_mep-nsw/index.asp models (MexNext). Delft Technical Univer- (7) http://www.we-at-sea.org/index. sity and AERotortechniek are also partici- php?keuze=r0 pating in this Task. The Netherlands’ participation in this task is important to further Author: Jaap L. ‘t Hooft, SenterNovem, strengthen the knowledge that ECN and Netherlands agency for innovation and sus- Delft Technical University have in this re- tainability, the Netherlands. search area. Participation in the IEA Wind Tasks is a cost-effective way to conduct research. On average, each euro spent in the

IEA Wind 221 National Activities

222 2008 Annual Report Chapter 25 1.0 Introduction Electric energy in Norway is generated Norway using a very high share of renewables. The dominating energy resource is hydropower, but there is also a keen interest in wind established a target of 30 TWh above the power as a commercial source of energy. 2001 level of production from renewable Most of the remaining economical renew- energy sources and energy efficiency. To able resources are wind power, but there is help achieve this goal, the Energy Fund, also a potential for about 20 TWh of hy- administered by the state-owned agency dropower, mostly small-scale hydropower. Enova, gives grants to energy saving and The wind energy potential is located renewable energy production projects. The mostly on West coastal areas. Norway has a Energy Fund is partly financed by a levy on long coastline and the offshore potential is the transmission tariff, and the yield from also huge even though most of the offshore a new fund (Basic Fund for Renewable areas are deep water or protected marine Energy and Energy Efficiency). The Energy zones. More than 50,000 MW of wind Fund contained approximately 190 million power potential has been identified. € in 2008. In 2008, the installed wind power In 2008, renewable sources of electric- capacity in Norway increased from 385 ity contributed 110% of national electrical MW to 430 MW (Table 1). By the end demand. About 0.6% of the renewable sup- of 2008, there were project plans for over ply comes from wind power. Since electric- 15,000 MW in Norway. However, financ- ity production in Norway mainly comes ing and public acceptance remain substan- from hydropower, the share of renewable tial hurdles to overcome for the installa- energy varies considerably from one year tion of wind turbines. Although the price to the next. It turns out that 2008 was a for long-term future electricity has risen rather wet year resulting in excess power during past years, it is still not a strong production available for export. For 2010, enough incentive to spur new investments the target set by the government for the rein wind energy. newable share of electricity consumption is 90%. According to a government statement, 2.0 Progress Toward National this target corresponds approximately with Objectives the 6 to 7 TWh of new renewable electric- 2.1 Strategy tiy production capacity being introduced Norway’s national goal for renewable en- from 1997 to 2010. ergy production and energy savings in 2010 is 12 TWh above the 2001 level. At least 3 2.2 Progress toward the wind target TWh of this production will be achieved Interest in wind power is high, and several from wind power and 4 TWh from water- projects have been submitted for approval. based central heating systems. For the Projects totalling 6,400 MW have applied longer term (2016), the government has for concession (approval). More than 2,000

Table 1 Key Statistics 2008: Norway

Total installed wind generation 430 MW New wind generation installed 45 MW Total electrical output from wind 0.921 TWh Wind generation as % of national electric demand 0.7 % Target 3 TWh in 2010

IEA Wind 223 National Activities

MW have received approval; however, very approximately 1,000 MW of installed ca- few projects are under way. This indicates pacity at the most favorable sites. Since that the economic incentives are not yet 2001, Enova has signed contracts with ener- sufficient. There is an expectation, however, gy utilities for 11 wind power projects. The that the economic conditions will be im- projects represent an estimated 1.4 TWh/ proved in the future. In addition, projects yr of energy production. There is no indica- totalling an annual production of 45 TWh tion that the 3 TWh target can be reached have been proposed, including offshore by 2010 (Figure 1). wind power projects totalling 8,200 MW (23 TWh/yr). 3.0 Benefits to National Economy All the projects cannot be developed 3.1 Market characteristics due to the limitations of the existing grid Production of wind power is dispersed capacity. In 2008 Enova and The Norwe- among seven energy companies, some of gian Water Resources and Energy Direc- which are small local utilities. The largest torate estimated the potential for onshore wind power projects are operated by big wind power, based on the official Nor- national energy companies that also own wegian grid plan. The study concludes power stations in foreign countries. So far that it is possible to feed in approximately there is no significant wind turbine manu- 5,000 MW onshore wind power by 2020. facturing industry in Norway. The total investment costs are estimated to be approximately 80 billion NOK (10 3.2 Industrial development and billion €), and will require support (state operational experience aid) of approximately 30 billion NOK 3.2.1 Manufacturing (3.75 billion €). ScanWind Group AS is a new Norwegian- Enova provided a grant to two wind based manufacturer of large wind turbines power projects in 2008. Jæren Energi AS (3.5 MW) for use in Class 1 wind areas. received 352 million NOK (44 million €) The design consists of a directly-driven, for a new wind park in Rogaland, with an variable-speed turbine with a permanent- annual production of 260 GWh. Addition- magnet generator. The company is ready for ally, Kvalheim Kraft AS received 93 million serial production in 2009. An installation of NOK (11 million €) for a new wind farm a prototype offshore turbine is expected in in Sogn og Fjordane, with an annual pro- 2011. duction of 50 GWh. Some of the Norwegian industry takes The target for wind power of 3 part in component production for wind TWh of generation by 2010 represents energy systems, e.g. wind turbine blades

Figure 1 Installed wind power capacity in Norway.

224 2008 Annual Report Norway and nacelles. Companies with experience All turbines, even those with very low avail- from the offshore oil industry (OEWC ability, have been included in this figure. Tower and Aker Solutions) have widened their scope of interest and have also been 3.3 Economic details engaged in the offshore wind industry. The In some remote areas having favorable wind companies offer offshore wind turbine sub- conditions, the cost of grid-connection is structure solutions like Jacket Quattropod too high to make the development of wind and Tripod. energy economical. In addition, the capac- ChapDrive AS is a newly established ity of the existing grid is a limiting factor company with the aim to develop a system in many places and restricts the size of the for hydraulic transmission of wind power. wind farms being constructed. Most new The object of the system is to move the wind farms are designed taking into ac- gearbox and the generator down to ground count the limitation of the capacity of the level in order to reduce the weight at the grid. An increase of the grid-capacity can top of the tower. A pilot project has been be an option in some areas. Generally, areas in successful operation on a 225-kW wind with the best wind conditions are located turbine at VIVA AS test facility. An upgrad- in the northern part of the country, but ed version will be connected on a 900-kW these areas are too far from the consumer. wind turbine by spring 2009. A 5-MW ver- Constructing new transmission lines has sion is planned. been considered, but so far the lower cost Another system for locating the genera- for generating in the North, where wind tor at ground level is being developed by conditions are more favorable, does not Anglewind. The system is comprised of an make up for the additional cost of building “angle” concept and a new drive train sys- new lines (Figure 2). tem for mechanical transmission of power. Estimates of production costs from Installation of a prototype (225 kW) is ex- sites with good wind conditions suggest a pected by the end of 2009. production cost of about 650 NOK/MWh Another company, Smartmotor, has (66 €/MWh), including capital costs (dis- developed a new weight-reduced genera- count rate 8.0%, 20-year period), operator design for wind power applications. The tion, and maintenance. During 2008, the main objective of this project is to develop spot market electricity price on the Nord a new radial flux permanent-magnet gen- Pool (Nordic electricity market place) in- eration system that reduces the generator creased until autumn 2008, followed by a mass by at least 25%. noticeable drop. The forward price by the end of December 2008 was 375 NOK/ 3.2.2 Operational experience MWh (38 €/MWh). So far wind energy The technical availability of new wind tur- is not competitive with the price of many bines in Norway is usually in the range of new hydropower projects, which still is an 97% to 99%. Some wind farms are exposed option for new green power. to very harsh and turbulent wind. In those areas the availability is considerable lower, 4.0 National Incentive Programs in some places even less than 80%. The me- For renewable power production, the sup- chanical impact of turbulent wind has ap- port system is administrated through the parently been underestimated. state-owned Enova. The support is given The average capacity factor of wind as a grant (investment subsidy). There are turbines has varied between 24% and 29%. no support systems for hydropower. Wind Based on calculations made on average power is supported through Enova’s Wind wind speed through the year, the capacity Power Program. The program will continue factor should have varied between 30% and to 2010, where the target is to support at 33%. In 2008 the capacity factor was 24.4%. least 3 TWh of wind power.

IEA Wind 225 National Activities

Figure 2 Location of wind installations in Norway.

The calculated grant (support) for each attempt to come to an agreement of a com- wind power project is based on a cash flow mon scheme for a green electricity market. analysis, where the grant shall give the in- The result from the negotiations is expect- vestment an Investment Rate of Return ed to be announced in September 2009. (IRR) of 8% before taxes. The wind power companies are in competition with each 5.0 R, D&D Activities other and are being ranked by cost efficien- In accordance with a broad-based politi- cy (kWh/support level). The most cost ef- cal agreement on climate achieved in the ficient projects are being supported in every Storting (the Norwegian parliament) and round. The Wind Power program is being the national R&D strategy for energy (En- announced annually. ergi21), the Research Council of Norway Parallel with the ongoing Wind Power has selected eight new Centers for Environ- Program, The Norwegian government has ment-friendly Energy Research (CEER). decided, as an option, to reopen negotiation The goal of the centers is to become inter- with the Swedish government in a new national leaders in their respective areas of

226 2008 Annual Report Norway energy research and to make environmen- (7.08 million €) investment grant from tally friendly energy profitable. Each CEER Enova in 2007. The other concept, will receive up to 20 million NOK (2.4 Sway, is a tilting downwind solution million €) annually over a five-year period to offshore turbines, but its demonstra- with the possibility to receive an exten- tion project has been postponed until sion of funding up to eight years. Two of 2011. the CEERs are focusing on offshore wind • A new concept for a floating platform energy: the Research Centre for Offshore with three wind turbines (two upwind Wind Technology at SINTEF Energy and one downwind) and tilted towers Research and the Norwegian Centre for is under development. Construction Offshore Wind Energy (NORCOWE) at will be completed on a dockyard, and Christian Michelsen Research. then, the platform ready for operation, The governmental research program for will be towed to the offshore site. sustainable energy is called RENERGI. Its • Several projects dealing with wind budget for wind energy R&D in 2008 was resource mapping and micrositing in 12.5 million NOK (1.5 million €). Norway complex terrain have been approved. will increase its research in offshore wind substantially in 2009. The following wind In 2001, in order to assist the develop- energy R&D projects have been approved ment of wind energy in Norway, SINTEF for funding in 2008: Energy Research, the Institute for Energy • A pilot project demonstrating hy- Technology (IFE), and the University of draulic transmission of wind power Trondheim (NTNU) formed a joint initia- • Pre- and post-construction studies tive to develop a test station for wind tur- of conflicts between birds and wind bines on the midwestern coast of Norway. turbines in coastal Norway. The main The test site (VIVA AS) was opened in the focus of this project is to obtain bio- summer of 2005 and is now operating. A logical and ecological knowledge on new 900-kW test turbine has been erected wind turbines and bird behaviors, in order to try out the new hydraulic con- mortality and mitigating measures, and cept of ChapDrive AS. A hydraulic pump is tool development to facilitate data col- installed in the nacelle and a corresponding lection. The project results will signifi- hydraulic motor and the generator at the cantly increase knowledge about how ground level. For more information: www. wind power can affect birds adversely vivawind.no in coastal areas of Norway The wind/hydrogen demonstration • Development of maintenance strate- project at Utsira has now been in success- gies on the component and system lev- ful operation for more than four years. The els. Methods will focus on availability purpose of the project is to demonstrate in a life cycle cost perspective. how renewable energy can provide a safe • Two concepts for floating wind and efficient energy supply to isolated areas. turbines are under development. The The system is based on wind energy as the systems are designed to operate in areas only energy source. Excess power is used to of deep water (200 m to 800 m). One produce hydrogen which is to be used later of the concepts, Hywind, is a demon- in a fuel cell. The system was developed and stration project in which StatoilHydro is operated by StatoilHydro ASA. The com- will use floating constructions familiar pany has decided to continue the project from the offshore industry as founda- and improve the system to provide a basis tions for the offshore wind turbines. A for commercialization. full-scale (2.3-MW) prototype is ex- The Norwegian Water Resources and pected to be in operation during 2009. Energy Directorate (NVE) and Enova SF Hywind received a 59 million NOK have conducted studies on the resource

IEA Wind 227 National Activities potential for offshore wind off the coast of development has been slow in Norway Norway. The studies show a total theoretical recently due to low electricity prices, low potential annual wind resource of 14,000 support system, and increasing construction TWh along the Norwegian coast. Only sea costs. As a result, pressure for large-scale areas from the shoreline up to water depth integration of wind and hydropower has less than 300 m are included in this poten- been low. With a new strategy for large- tial. The studies document resource varia- scale wind development, the wind-hydro tion geographically along the coastline as integration study will be more important to well as seasonal variation of the wind speed implement. We therefore expect the activi- over the year. ties to grow in 2009. A computer based dataset representing the wind regime during the past 30 6.0 The Next Term years has been developed. The data will be At the end of 2008, no wind development compared with the hydrologic data to study projects were under construction. Two integration of wind power and hydropower. projects have received grants and new wind The Norwegian energy supply system is capacity of 100 MW is expected to come largely dependent on hydropower, however, into operation within one or two years. this 122 TWh/yr system is vulnerable to During 2009, a complete Norwegian annual variations in precipitation and to Wind Atlas (Onshore and Offshore) will prolonged droughts despite its 87 TWh res- be further developed and updated. So far ervoir capacity. An increasing share of wind the wind resources along the coastline have power promotes interest in the integration been mapped where most of the resources of wind power and hydropower, because are located, but it now turns out that there both resources are naturally intermittent. are also large wind resources in the inland The question is whether the two can be areas. The country’s wind resources esti- complementary and improve overall per- mate figures will be revised after the new formance, or whether, they tend to increase investigation. the problems of energy supply when combined. The latter eventuality can be the case Author: Knut Hofstad, Norwegian if drought years generally coincide with pe- Water Resources and Energy Directorate, riods of low mean wind speed. Wind power Norway.

228 2008 Annual Report Chapter 26 1.0 Introduction Portugal Due to its location, Portugal has several valuable renewable resources for electricity production. It has a high level of solar of 2008 was about 11% of the total national radiation, moderate wind resource, and electrical demand—50.6 TWh (2). considerable vegetable and animal biomass Also, use of renewable sources for mi- potential. Ocean and hydro resources are cro generation of electricity is growing also present, mainly the latter—although and as a result of legislation published at its major development took place in 2006 the end of 2007 (Dec. Law 363-2007, 2 with the construction of large hydraulic November). The public in general has repower stations. Wave energy systems are sponded in large numbers to the initiatives now under development; the PELAMIS and the programs that followed. By the end project, the first of its kind, is installed and of 2008, 5,768 license requests had already has been functioning since the beginning been granted and registered on the web of 2008. site of CERTIEL (3), the governing agency, Nevertheless, Portugal still depends corresponding to 19,772 kW of capacity. greatly on foreign countries for oil, gas, and Of these registered systems, 7,137 kW are coal resources, but it is taking large steps to- ready for inspection and about to start pro- ward sustainable renewables-based electric- duction (4). ity generation. Government and competent authorities established several measures in 2.0 Progress Toward National recent years that created incentives to install Objectives renewable energy systems and created the During 2008, moderate steps toward ac- conditions for economic development in complishment of national objectives took the energy sector. place. At the end of the year, renewable Regarding renewable energy systems, at energy generation capacity was 8,151 MW. the end of 2008 Portugal had about 8,151 Hydro systems experienced a decrease in MW capacity (1), corresponding to an esti- output of about 15% compared with the mated energy production of about 23,179 previous year (Figure 1). Biomass decreased GWh. This production constitutes 43.3% slightly, whereas wind and photovoltaic of national electricity demand. However, (PV) systems have increased somewhat this represents a 9% decrease in production compared with the previous year. In 2008, compared with 2007, largely due to the the first PV park was connected to the decrease hydropower production. The goals electric grid. Although total PV installed defined for 2010 and 2013—that 39% and capacity has grown about 60% since 2001, 45%, respectively, of the national electric- it is still a small part of total renewable ity demand be generated from RES—are sources (0.3% of production compared with within reach. Wind generation at the end other renewables technologies).

Table 1 Key Statistics 2008: Portugal Total installed wind generation 2,819 MW New wind generation installed 694 MW Total electrical output from wind 5.737 TWh Wind generation as % of national electric demand 11% Target: 3,750 MW by 2010 5,100 MW by 2013

IEA Wind 229 National Activities

Figure 1 Evolution of the production from each renewable technology, in comparison with the overall production of renewable energy systems.

At the end of 2008, about 2,819 MW During 2008, the mean wind speed was of wind energy capacity was installed, an above the average of the previous 10 years, increase of 625 MW over 2007 (Figure 2). representing a wind index of 1.05 for the This is a 33% increase from 2007 to 2008 coastal region and 1.03 for the mountain- (Figure 3). ous region of mainland Portugal (Figure 7). Wind energy production in 2008 was For the Azores and Madeira archipelagos, 5,695 MWh in the mainland territory plus this value is not yet available. 47 MWh in the Madeira and Azores archi- The increase in wind capacity occurred pelagos, which together could meet about mostly in the northern region of the coun- 11% of total national demand (Figure 4). try and also in the Azores (4.5 MW). Figure Most of the installed wind parks have 8 shows the capacity distribution by district capacity greater than 50 MW (Figure 5a). in mainland territory. Figure 5b classifies wind parks in terms of The north of Portugal is characterized production hours at full capacity. by higher values of wind energy potential. As shown in Figure 6, the projected Consequently, and also due to the availabili- increase in capacity through 2010 assumes ty of transmission lines to collect the gener- the complete fulfillment of Portugal’s wind ated electricity, wind parks are concentrated power goals under the 77/2001/EC Direc- in this region. Distribution of installed ca- tive for Renewable Energies. pacity is shown in Figure 9.

Figure 2 Installed capacity versus accumulated capacity.

230 2008 Annual Report Portugal

Figure 3 Installed capacity growth rate.

Figure 4 Wind energy generation in 2008.

Figure 5 Wind park capacity classiﬁ cation (a) and classiﬁ cation in production hours at full capacity (b).

3.0 Benefits to National Economy Interest in the renewable energy sec- 3.1 Market Characteristics tor is still increasing in Portugal. Several During 2008, the unit cost of wind turbines companies in this sector have been created, was estimated to be in the range of 950 to some of them focused on implementing 1,110 €/kW. Cost depends on the turbines’ microgeneration systems for domestic use. characteristics and/or the country of manu- This growth has led to considerable job facturer. Contracted O&M is estimated to creation in the sector and formation of have averaged approximately 13% or 15% multiple opportunities to expand the sector. of the investment cost for the past decade During 2008, to cooperate in reaching of wind power plant operation. European objectives to reduce greenhouse

IEA Wind 231 National Activities

Figure 6 Installed wind capacity evolution from 2001 to 2010.

Figure 7 Wind index for (a) coastal and (b) mountainous regions of mainland Portugal.

Figure 8 Installed capacity distribution by district. gas emissions and move toward renew- microproducers/consumers through Inter- able energy use, the new microgenera- net registration and licensing. tion legislation published in 2007 (Dec. Application of the law began in April Law 363-2007, 2 November) was applied. 2008 with the first call to register micro- This legislation’s main objective is to sim- generation systems. By the end of Feb- plify the licensing process for potential ruary, of the 25 MW registered, 5 MW

232 2008 Annual Report Portugal

Figure 9 Wind capacity installed in mainland Portugal, showing location of wind parks and transmission network. were already awaiting inspection. The homeowners that have become energy Portuguese government’s goal for 2010 producers are choosing PV over small is to have at least 165 MW of these small wind turbines. This is somewhat surprising systems installed, assuming a growth rate of considering that the financial incentives 20% per year. are similar (or even better for wind) and Although application of the new leg- the wind resource is quite good in some islation has been a success so far, more urban areas.

IEA Wind 233 National Activities and the fact that most of the suitable sites In the offshore wind sector in 2008, for wind energy exploitation are already some companies examined more areas, taken and/or under contract leads to the looking for high-potential zones where off- installation of turbines with high rated shore turbines could be used. Some com- capacity. panies are now conducting experiments to The total wind farm installation costs study the project’s viability (energetic and are estimated between 1,200 and 1,400 €/ economic). kW, and annual maintenance is estimated to be between 17 and 19 million €/MW/year. 3.2 Industrial development and Concerning tariffs for renewable ener- operational experience gies, in 2007 no new legislation was pub- During 2008, more than 363 wind tur- lished regarding conventional wind parks. bines were installed with an average nomi- Dec. Law 33–A/05 is used to define which nal power of 1.9 MW (1). ENERCON tariffs to apply in the operating projects. Al- remains the manufacturer with the larg- so the price for energy remains unchanged est market share in the Portuguese wind since 2006 (Figure 11) for wind parks with power industry. This wind turbine manu- connection permits granted before 2005. facturer, as well as Repower, produces For micro generation, and consider- relevant components for wind turbines in ing the new legislation being implemented the Portuguese territory. The distribution there are two types of regime: general and of installed capacity by manufacturer is special. In the general regime, 5.75 kW is shown in Figure 10. the maximum capacity possible to install, The wind power sector already plays and the tariff is equal to the cost of electric- an important role in job creation in Por- ity sold under the purchasing contract. In tugal and promises to continue to do so in the special regime (“additional benefits”), coming years. This job creation has been microproducers can install a maximum ca- particularly relevant in the interior regions pacity of only 3.68 kW. However, to have (remote areas), since, as with most other access to these benefits, single houses must European countries with large wind devel- have a 2-m2 installation of solar collectors, opment, specialized workers for new devel- and condominiums must have an energetic opments, such as engineers, are becoming certification. The reference tariff is guar- hard to find. anteed for the first five years following the installation. It is defined as 650 €/MWh for 3.3 Economic details the first 10 MW installed, and it decreases In Portugal, environmental regulators are 5% for each additional 10 MW registered very rigid about wind energy and prefer in the Registration System of Micropro- large wind turbines (>1,500 MW) over the ducers (SRM) per year (Figure 12). The smaller ones. Also, the very complex orog- amount of the reference tariff depends on raphy that characterizes mainland Portugal the renewable energy technology used. It is

Figure 10 Distribution of installed wind capacity by manufacturer.

234 2008 Annual Report Portugal

Figure 11 Tarrif evolution for wind parks 199-2008.

Figure 12 Tariff evolution in the project lifetime for microgeneration systems.

100% for solar, 70% for wind, and 30% for summer of 2008. Portuguese institutions, hydro, cogeneration, biomass, and others. including Instituto Nacional de Engen- haria, Tecnologia e Inovação (INETI), 4.0 National Incentive Programs are participating in the five-year project During 2008, small changes in national NORSEWInD (Northern Seas Wind incentive calls took place. The QREN Index Database, EC FP7-2008) to run financing program was opened in Novem- from 2008 to 2013. Another relevant gov- ber 2008, in which several scientific and ernmental financing program, PRIME/ technological areas were under evaluation, MAPE, was released in 2008 with funds including energy renewable systems. A fi- covering 1,533 MW of wind park capacity. nancing call for R, D&D projects was also opened at the end of 2008 by the Portu- 5.0 R, D&D Activities guese Science and Technology Foundation 5.1 National R, D&D Efforts (FCT), covering a huge variety of areas. In Portugal, many R, D&D groups are Several projects financed by the Eu- housed in academic and/or research in- ropean Union Seventh Framework Pro- stitutes and financed by research projects gramme (FP7) kicked off during the included in international, European, and

IEA Wind 235 National Activities national programs. The R, D&D develop- In 2008, Portugal achieved some mile- ment is growing slowly with the continuing stones. It became the first country with a participation of wind energy developers wave farm (the Aguçadoura Wave Farm), and consultancy entities in academic proj- had several multi-megawatt photovoltaic ects, especially those related to doctoral and plants installed, and had its highest increase postdoctoral projects. in wind power capacity to date. Wind energy R, D&D activities are The Aguçadoura Wave Farm, the first mainly being developed in the regions of commercial-scale farm in the world to Oporto and Lisbon. In the north region of take advantage of wave energy, is located Portugal, the main institutes are the Faculty 5 km off the coast near Póvoa de Varzim of Engineering of the University of Porto in the north of Portugal. It is composed (FEUP) through the Research Centre for of three PELAMIS wave energy con- Wind Energy and Atmospheric Flows verters. The farm was commissioned (RCWEAF) and the associated laboratory and operated during the summer and INESC-Porto (Computers and Systems autumn of 2008, producing power and Engineering Institute of Porto), which is transferring it to the Portuguese national part of the research network established by grid. This project was conceived by the the Portuguese Foundation for Science and Portuguese renewable energy company Technology (FCT). Enersis, which developed and financed it. The most active public R, D&D or- In 2008, the Aguçadoura Wave Farm had ganizations in wind energy research and an installed capacity of 2.25 MW, enough technology is INETI, a part of the Ministry to meet the average electricity demand of Economy and Innovation, located in of more than 1,500 Portuguese homes. Lisbon’s region and financed partially by In its second phase the installed capacity the national government and wind energy will be increased from 2.25 MW to 21 companies (consultancy contracts). MW using an additional 25 PELAMIS The main R, D&D projects under way machines (Figure 13). in Portugal include the following: During 2008, Portugal also inau- • ANEMOS plus (EC) – INESC gurated several solar PV power plants Porto; (Figure 14). The world’s third largest PV • Cup anemometer correlation with plant is near Moura, a southern Portu- wind satellite data for offshore purposes guese town, with an installed capacity (input to NORSEWInd, EC FP7- of 46.41 MW, distributed by 2,520 azi- 2008) – INETI; muthal trackers, each one equipped with • Applying research on the use of hydro storage as regulation for excess wind production – INESC Porto; • Remote control of wind park clusters using DSO by TSO request – Several wind energy developers; • Using wind turbine as FACTS – IN- ESC Porto; • TURBan 2.5-kW small wind turbine project (national project financed by DEMTEC (70/0201) that consists of the development of two prototypes of Figure 13 The front of the PELAMIS machine small and low-cost turbines for urban at the Aguçadoura Wave Park with the city use) – INETI. of Póvoa de Varzim in the background (5).

236 2008 Annual Report Portugal

Figure 14 Solar photovoltaic central in Moura, south interior of Portugal (6).

104 solar panels. This plant will also in- completed the testing phase, and industrial clude a research center. manufacturing for commercial launch was In 2008, several wind parks were in- about to start. Portuguese manufacturers stalled in Portugal, among them Europe’s will contribute most of the components. biggest onshore wind park, installed in Another small wind turbine was developed the northern region of Viana do Castelo. according to the second phase of the TUR- This wind farm has 120 wind turbines Ban project with a vertical rotation axis (Figure 15). (VAWT) (Figure 16). This turbine, with 2 kW of rated power, has very high perfor- 5.2 Collaborative research mance unique in its class and is currently In 2008, the TURBan project, carried out undergoing testing. by the INETI, continued. The small wind NORSEWInD was created to address turbine prototype with horizontal axis the shortage of offshore data for the wind

Figure 15 Europe’s biggest onshore wind park in the northern region of Viana do Castelo, Portugal. Photograph: Estela Silva/EPA.

IEA Wind 237 National Activities

developed and updated. The onshore atlas will incorporate detailed data at the mu- nicipality scale and apply methodologies that will be useful in several foreign countries, especially those in Africa and Eastern Europe. The offshore wind atlas project will also be continued. It will include the data obtained in the measurements campaign of 2007 and will study new methodologies for offshore resource assessment. The urban wind energy sector is now a high priority, representing a new business opportunity for the wind energy sector. Figure 16 The TURBan 2-kW vertical-axis This opportunity demands new method- prototype, developed by INETI. Photograph: ologies for urban wind resource assessment. INETI. It also requires continued development of simple methods to reliably estimate wind industry. Offshore wind is an expensive energy production in very complex terrain. business, with a real problem in obtaining These are good prospects for R, D&D dur- easily available high-quality datasets suitable ing 2009. for project decision making. This project It is expected that in 2009, offshore will use new techniques to acquire physi- wind feasibility studies will begin with cal data offshore for the wind industry. In measurements in the sea along the Portu- early August 2008, the NORSEWInD guese Atlantic Coast. project, with which INETI is involved, officially kicked off. NORSEWInD is made References: up of 15 organizations and is financed by (1) Source General Directorate for Energy the European Community under the Sev- and Geology (DGGE). enth Framework Programme. The project (2) Source National Electric Grid (REN). will develop high-quality wind atlases to (3) www.certiel.pt the North, Irish, and Baltic seas. It will use, (4) www.renovaveisnahora.pt/30 among other data sources, the anemometer (5) www.eccn.edu.pt/.../Energias_Reno- station of Berlenga Island, operated by IN- vaveis.htm ETI, to validate methodologies for its atlas. (6) www.apea.pt/scid/webapea/ This project will create one of the biggest defaultArticleViewOn.. dedicated instrumentation networks to acquire wind speed data offshore. Authors: Teresa Simoes, Liliana Madeira, Also, new sites for offshore measure- and Ana Estanqueiro, Department of Re- ments are already under study along the newable Energies, INETI. – Instituto Na- Portuguese coast using contracts with Por- cional de Engenharia, Tecnologia e Inova- tuguese wind energy companies. ção, Portugal.

6.0 The Next Term During 2008, the Portuguese Wind At- lases (onshore and offshore) will be further

238 2008 Annual Report Chapter 27 1.0 Introduction Installed wind capacity in Spain reached Spain 16,740 MW in 2008 with the addition of 1,609 MW, according to the Spanish Wind Energy Association’s Wind Observatory. demand, and for several days it supplied The wind sector expected this growth after more than 30% of daily electricity demand. the 3,500-MW increase in 2007, a special For instance, on November 24, wind year in which companies made an effort energy supplied more than 35% of the total to start up the greatest number of wind electricity demand (Figure 2). And on sev- farms so they could benefit from the pre- eral occasions, production of wind energy vious support system. The total of 16,740 reached more than 40% of hourly demand. MW establishes Spain as the third country Wind energy in Spain has also in the world in terms of installed capacity emerged as a driving force for industrial and will allow the 2010 objective (20,155 development. In 2008, investment was MW set by the Renewable Energies Plan more than 2,250 million €, and about 50% 2005–2010) to be reached. of Spanish wind energy equipment pro- The addition of 1,609 MW in 2008 is duction is dedicated to the export market. an increase of 10.63%, the third highest in- According to the “Macroeconomic Study crease in absolute terms in the short history on the Impact of the Wind Energy Sector of wind energy in Spain. The only higher in Spain,” the number of jobs related to annual increases were in 2007 (3,505 MW wind power reached more than 40,000 in or 30%) and 2004 (2,297.51 MW or 37%). 2008. Of this total, the number of direct Electrical energy demand in 2008 was jobs in operation and maintenance of wind 266,485 GWh, a growth of 1.21% over farms, manufacturing, assembly, research, 2007. Wind energy met 11% of this de- and development is estimated at more mand and was the fourth largest contribut- than 21,800. The number of indirect jobs ing technology in the generation system, (linked mainly to components) is estimated besting hydropower (7% of demand). The to be more than 17,000. other contributors to the system were gas Finally, it is important to point out the combined-cycle power plants (32% of total significant efforts of the industrial sector demand), nuclear power plants (20%), and and the system operators to implement the coal power plants (16%). Figure 1 shows new Grid Code (P.O.12.3). Due to their how electricity was generated in Spain dur- coordinated efforts, the impact of wind ing 2008. energy on system operation is smaller than On several occasions in 2008, wind expected. The regulatory systems have energy covered more than 40% of hourly been able to regulate and optimize system management at very low cost.

Table 1 Key Statistics 2008: Spain Total installed wind generation 16,740 MW New wind generation installed 1,609 MW Total electrical output from wind 31.1 TWh Wind generation as % of national electric demand 11.5% Target: 20,155 MW by 2010 Source: AEE (Spanish Wind Energy Association and REE (Spanish Transmission System Operator)

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Figure 1 Electricity generation system in Spain, 2008. Source: REE

2.0 Progress Toward National 20,155 MW by the end of 2010. The 1,609 Objectives MW installed in 2008 confirms that the The present objectives for 2010 for the sector is strong and that this growth will be promotion of renewable energies are con- maintained or will increase in the next two tained in the Spanish Renewable Energy years, reaching the total of 20,155 MW Plan 2005–2010 (PER) (1). This plan is a fixed as the objective according to PER. revision of the previous version completed Figure 3 shows the annual cumulative in 2002. The aim of this revision was to wind capacity and the PER objectives for maintain the commitment to meet at least 2005 to 2010. 12% of total energy use from renewable The strength of the wind energy sec- sources by 2010. It also incorporates other tor and its continuous growth have cre- indicative targets (29.4% of electricity gen- ated the expectation of new targets for the erated from renewable sources and 5.75% next term. There is consensus for fixing a of transport fuel from biofuels). new target of 40,000 MW by 2020. The For the wind energy sector, the PER installed wind power in Spain during 2008 objective implies reaching a capacity of implies a growth rate of 10.63%, as shown in Figure 4. The majority of the Autonomous Re- gions (that are responsible for regulating wind installations) have their own specific objectives, which reached a total value of 41,000 MW between 2010 and 2020. Local governments see the need for this on the basis of energy planning, local resource use, industrial development, and job creation in their zones (Table 3). The industrial sector participating in the Asociación Empresarial Eólica, or (Spanish Wind Energy Association) has established a new objective for onshore of 40,000 MW for 2020 (2). It is conducting studies and developing strategies to reach that goal. Figure 2 Coverage of electricity demand by Finally, the management and planning wind power production on November 24, of the new Spanish target is designed to 2008. fulfill the new European Union objectives

240 2008 Annual Report Spain

Table 2 Current and expected employment created by the wind sector in Spain. 2008 2010 2012 Direct employment 21,824 26,950 31,184 Indirect employment 17,307 21,371 24,728 Total employment 39,131 48,321 55,912 Source: AEE

Figure 3 Cummulative wind power and objectives for 2010.

Figure 4 Annual growth of installed wind power.

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Table 3 Wind power capacity by Autonomous Regions CCAA Potencia Limites Es- Puesta en Planes Concursos Instalada a tudios zon- servicio + Regionales en Marcha 01/01/2009 ales (MW) autorizada (MW) (1) CCAA (MW) Andalucia 1,795 3,754 3,487 6,284 500 Aragón (2) 1,749 2,400 1,951 4,000 Asturias 304 918 819 1,100 Baleares (2) 4 50 210 210 Canarias (3) 134 344 440 1,025 440 Cantabria 18 400 32 300 1,100 Castilla León 3,334 4,375 6,488 6,625 Castilla La Man- 3,416 3,990 3,324 4,100 cha Cataluña 420 1,460 1,248 3,500 Extremadura (2) 0 225 501 400 Galicia 3,145 3,438 2,950 6,500 2,325 Madrid (2) 0 50 0 200 Murcia 152 538 411 850 Navarra (2) 959 1,400 922 1,536 La Rioja (2) 447 500 448 665 C. Valenciana (2) 710 1,600 2,300 3,500 250 Pais Vasco (2) 153 250 145 624 256 TOTAL 16,740 25,692 25,676 41,419 4,871 (1) Potencia eólica instalada prevista por las CCAA, cada comunidad tiene un objectivo temporal distinto (2) Al no disponer de estudios zonales, se aplicia el criterio PER (3) Puesta en servicio + autorizada: Concurso eólico de Canarias Fuente: AEE, Estudios zonales, Planes regionales established during 2007—to supply 20% of and reached a total of 89,944 MW accord- the primary energy with renewable sources ing to the data of Red Eléctrica de España by 2020. Due to the solidity of the wind (the Spanish Transport System Operator sector, it is likely that an important amount [TSO]) (3). Wind power, solar technology, of the renewable objective will be covered and combined cycle are the technologies by wind energy. that contributed to this growth. The installed electrical power capac- With more than 16,740 MW of wind ity in the mainland generation system in- power installed, there are nowadays more creased more than 4,200 MW during 2008 than 16,800 turbines operating in Spain.

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They are grouped among 733 wind farms. grew 24%, adding 349 MW to reach a total The average size of an installed wind farm of 1,795 MW. This places Andalusia ahead in 2008 was 24 MW. Wind energy is pres- of Aragón, which is fourth with 1,749 MW. ent in fifteen of the seventeen Spanish Only two SACs, Extremadura and Madrid, Autonomous Community (SAC). The SAC have not yet installed any wind power ca- Castilla–La Mancha has the most installed pacity. However, they have advanced proj- power among them. The region’s capacity ects and regulation to start wind energy breakdown shows that Castilla–La Mancha activities. It should be noted that unlike keeps its leadership with 3,415.61 MW many other countries with significant wind (273.25 MW added in 2008), but the big- development, Spain has increased its distri- gest growth in absolute terms is in Castilla bution throughout the country. Table 4 and y León, with 518.69 MW; that amount put Figure 5 show wind energy development this SAC in second place with 3,334.04 and annual growth by SAC.

MW, ahead of Galicia (which ranked first Use of wind power has lowered CO2 two years ago), which had 3,145.24 MW. emissions by about 18 million tons just In percentages, Comunidad Valenciana during 2008. Furthermore, wind generation has experienced the biggest growth, with has saved up to 6 million tons of conven- 27.66%. With the 154 MW installed in tional fuels. Wind production has supplied 2008, it has reached 710 MW. Comunidad the electrical consumption of more than 10 Valenciana is followed by Andalusia, which million households.

Figure 5 Wind capacity distribution in Spanish Autonomous Communities, January 2009. Source: AEE.

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Table 4 Wind Power Growth by Spainsh Autonomous Communities CCAA Accumulated at In 2008 Accumulated Growth 01/01/08 at 01/01/09 2008/2007 % Castilla-La Mancha 3,142 274 3,415.61 8.70% Castilla y León 2,815 519 3,334.04 18.40% Galicia 2,973 172.45 3,145.24 5.80% Andalucía 1,446 349.45 1,794.99 24.17% Aragón 1,719 30 1,749.31 1.73% Navarra 952 7 985.77 .69% Comunidad 556 154 710.34 27.66% Valenciana La Rioja 447 0 446.62 0% Cataluña 343 77 420.444 22.42% Asturias 276 28 304.30 10.13% País Vasco 153 0 152.77 0% Murcia 152 0 152.31 0% Canarias 134 0 134.09 0% Cantabria 18 0 17.85 0% Baleares 4 0 3.65 0% Extremadura 0 0 0 0 Madrid 0 0 0 0 TOTAL 15,131 1,609 16,740 11% Source: AEE

3.0 Benefits to National Economy connected to the grid during 2008 and 3.1 Market characteristics some medium size companies were being The number of installations during 2008 acquired by the big ones. demonstrates the maturity of the wind in- In the ranking of wind farm owners, dustry, which has been able to increase de- Iberdrola Renewables, the largest Spanish spite worldwide difficulties with the supply utility, has the largest accumulated capac- of wind turbines and components. Installing ity (4,602.35 MW) thanks to the addition and operating wind plants to cover 11% in 2008 of 305.10 MW. Acciona is still in of the Spanish electrical demand implies second place with an accumulated capacity a huge accomplishment by the developers of 2,698.84 MW. The most new capac- and manufacturers. ity (321.50 MW) was added by ECYR In 2007, there was a tendency to (ENDESA), the company that owns a total consolidate big wind energy holdings. accumulated capacity of 1,640.94 MW. Sev- The largest Spanish developers had ac- eral other organizations have installed wind cumulates most of the wind farms power capacity during 2008. For instance,

244 2008 Annual Report Spain

Figure 6 Installed wind capacity in 2008 by developer.

Energías y Recursos Ambientales (EyRA) which consolidates its leadership among installed 213.68 MW and reached the sixth manufacturers. VESTAS, the second largest position with 495.68 MW. Eolia Renov- manufacturer, installed more than 15% of ables installed more than 141 MW, supply- new capacity in 2008, adding 242.2 MW. ing 8.8% of installed capacity. Figure 8 shows the distribution of accumu- Figure 6 shows the percentage of new lated wind capacity by manufacturer. capacity supplied by each developer. The number of wind turbines in Spain increased by more than 890 in 2008, and 3.2 Industrial development and the total number of turbines is more than operational experience 16,000 units. The average size of a wind Gamesa installed more than 50% of new ca- turbine installed in 2008 was 1.6 MW. pacity (Figure 7), according to the Spanish Wind turbines operating in Spain show Wind Energy Association’s Wind Observa- important seasonal behavior, as shown in tory, with more than 9,480 MW (including Figure 9. Total electricity generated by wind the subsidiary company MADE) in Spain, farms was more than 31,100 GWh, and the

Figure 7 Installed wind capacity in 2008 by manufacturer.

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Figure 8 Accumulated wind capacity by manufacturer at the end of 2008.

Figure 9 Electricity generated by wind, 2003 to 2008, monthly distribution. equivalent hours at rated power were slight- for wind generators. The average cost per ly higher than 2,000 hours for most of the kilowatt installed during 2008 in Spain was wind farms. On 18 April 2008, new historic about 1,400 €/kW. highs in wind power were recorded: 10,879 MW of instantaneous power, 10,727 MWh 4.0 National Incentive Programs of hourly wind power, and 213,169 MWh The promotion of renewable energies has of daily wind power (28.2% of the electri- been a stable national policy for several cal demand for that day). On 24 November, years. All political parties have similar poli- instantaneous wind power production sup- cies regarding support of renewable ener- plied 43% of total demand. gies. The main tools within this policy at a national level are: 3.3. Economic details • A payment and support mechanism The increasing use of large wind turbines enacted by the Parliament through (2 MW of nominal power), the increas- Electric Act 54/1997: Producers of ing prices of raw materials, the shortage of renewable energy sources are entitled main components, and the excess demand to connect their facilities and transfer for wind turbines have increased prices the power to the system through the

246 2008 Annual Report Spain

distribution or transmission grid and farm is independent of the size of receive remuneration in return. the installation and the year of start- • The Renewable Energy Plan, in- up. For 2009, the value is 78.183 €/ cluding midterm objectives for each MWh; the update is based on the Re- technology (PER 2005–2010), and the tail Price Index minus an adjustment tariff scheme are guaranteed until the factor. fulfillment of targets. • A market option: payment is calcu- • Royal Decree (RD) 661/2007 lated as the market price of electricity regulates the price of electricity from plus a premium, plus a supplement, renewable sources in Spain. The new and minus the cost of deviations from regulation has been in force since June energy forecasting. There is a lower 2007. Wind farm installations gov- limit to guarantee the economic vi- erned by previous regulations (RD ability of the installations and an upper 436/2004) had until January 2009 to limit (floor and cap). For instance, decide whether they would continue the values for 2009 are: reference to follow RD 436 or choose the new premium 31.2 €/MWh, lower limit RD 661/2007. 76.98 €/MWh, and upper limit 90.7 €/ MWh. The price of wind electric- To facilitate the integration of wind en- ity versus the market price is shown in ergy into the grid, supplemental incentives Figure 10. are based on technical considerations (reactive power and voltage dips). These incen- The feed-in scheme will be valid until tives apply only for the existing wind farms; fulfillment of the PER objective (20,155 after January 2008 it is mandatory to satisfy MW) in 2010. An additional 2,000 MW are Grid Code P.O.12.3). considered for repowering wind farms built Payment for electricity generated by before December 2001, and an extra bonus wind farms in Spain is based on a feed-in of 70 €/MWh is considered. tariff. The owners of wind farms have two The market price of electricity in Spain options: during the past several years is shown in • A regulated tariff scheme: payment Figure 11. In 2008, the electricity price for electricity generated by a wind reached 64.4 €/MWh.

Figure 10 New regulations for payment of electricity from wind plants, values for 2009.

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Figure 11 Evolution of electricity prices in Spain, 2004 to 2008.

5.0 R, D&D Activities • Subprogram of complementary ac- A new R&D plan was developed in 2008. tions for non-oriented fundamental This plan covers 2008 to 2011 for the research projects. R&D and technological program prepared • Assistance for development and rein- by the Spanish national government. It is forcement to Results Research Trans- based on the national science and technol- fer Offices. ogy strategy instead of thematic areas as in previous calls. It is important to highlight that most The ongoing PER 2005–2010 is mak- of the projects presented to this solicita- ing an exhaustive analysis of the techno- tion were focused on grid integration and logical innovation required to achieve its control issues. During 2008 the following objectives. In the case of wind energy, the projects were approved: Spanish priorities are to make efforts lead- • Study of the effect of grid voltage ing toward the following goals: sags on the operation of wind turbines. • Develop advanced systems to control Leader: Polytechnic University of the quality of the power fed into the Catalonia. grid, • Wind farm with synchronous wind • Develop wind turbines with unit turbines connected in unity genera- power outputs of more than 2 MW, tion. Leader: University of Malaga. • Adapt high-capacity wind turbines to • Stabilization of wind farms by the the more demanding technical require- implementation of biomass plants. ments of offshore applications, and Modeling, simulation, and analysis of • Implement demonstrations of off- the techno-economic viability of this shore wind farms. kind of hybrid system. Leader: Poly- technic University of Valencia. Within the basic research activity drive • Development of advanced control by the General Sub-direction for Research techniques to improve the integration projects of the Science and Innovation of wind energy converters into electri- Ministry, many projects have been proposed cal distribution networks. Leader: Uni- for the different Subprograms of the Na- versity of Alcala de Henares, Madrid. tional R&D Plan: • Maximization of wind energy pen- • Subprogram of fundamental research etration in the electrical system by the projects (not oriented). participation of auxiliary services of the • Subprogram of fundamental re- grid and the contribution to dynamic search projects oriented to knowledge stability. Leader: University Carlos III, transfer. Madrid.

248 2008 Annual Report Spain

• Improving the stability of the electri- prototypes and critical components cal grid by the application of FACTS (generators, gearboxes, converter, based on wind energy generators. chassis yaw, etc.). Leader: Polytechnic University of Catalonia. Another R&D project financed by CE- • Development of distributed measur- NIT is Eolia, carried out by a consortium ing solutions for industrial monitoring of 16 companies led by Acciona Energia. based on the use of smart-sensor net- The project has been approved by the CD- works. Leader: University of Valencia. TI for a grant of 16.7 million €, not quite half the overall 33.9 million € estimated The CENIT program carried out by total investment required. Eolia includes 25 the Center for Industrial Technological research centers and seven private compa- Development (CDTI) from the Ministry nies subcontracted by the consortium. Its of Industry and Energy is another effort objective is to develop technologies en- to increase R&D activities. It is a Spanish- abling deployment of offshore wind plants government project aimed at increasing in deep waters (over 40 m). The project’s investment in R&D for both public and research activities integrate a series of tech- private initiatives over the next few years, nologies, including energy (wind power and with the objective of reaching 2% of GPD. other electricity technologies) aquaculture, The program started in 2006 and so far desalination, construction, naval and marine two projects have been approved: Windlider grid connections, and O&M technologies. 2015 and Eolia. In the Program for the Promotion of Windlider 2015 is an industrial research Technical Research (PROFIT) the govern- project led by Spanish turbine manufactur- ment makes calls for proposals for publicly ers Gamesa and Ecotecnia. Its objective is funded projects aimed at encouraging to keep Spain at the cutting edge of wind private companies and other entities to power technology. Specifically, the project adopt research and technology develop- involves the design of new high-power ma- ment activities. The program is in line with chinery. Windlider 2015 has received a grant the objective established in the National of 13 million €, almost half of the 28.5 mil- Plan of Scientific Research, Development lion € estimated total investment required. and Technological Innovation (National The project’s objectives are the following: R&D and Innovation Plan) 2004–2007, in • Improve the design process of future part dedicated to the promotion of tech- turbines, reducing time to market and nological research. The National R&D and increasing maturity of the first series, Innovation Plan 2004–2007 set a series considered vital to leading the market of objectives aimed at contributing to the as of 2012; general development of good relations • Boost Spanish-owned enabling among science and technology companies. technologies; The energy objectives of PROFIT in the • Create a holistic simulation model energy field are: that reproduces as faithfully as possible • To use R&D to guarantee eco- the behavior of future turbines and de- nomically viable and environmentally termines the effect of new configura- friendly energy supply, based on ef- tions, new enabling technologies, and ficiency and quality criteria, employing other factors on turbine performance; conventional energy sources and intro- • Deploy several midsize technolog- ducing technologies to optimize their ical-scientific infrastructures in Spain use, and that permit experimentation at scales • To facilitate scientific and techno- up to 5 MW with complete turbine logic resources contributing to the

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efficient and competitive deployment and three end users. The 16 projects are orga- of renewable and emerging energy nized in three main areas: technologies, together with their im- • Product development supporting man- proved integration within the electric- ufacturers to develop new products. New ity system. designs will cover the needs of the market in the power range between 1 and 5 During the 2007-2008 period, the fol- kW for urban and residential applications lowing projects were approved: (innovative horizontal- and vertical-axis • R&D project on an innovative wind turbines) and from 20-kW and foundations solution for deep-sea off- 100-kW very reliable, robust, and effi- shore wind turbines (from 30 to 60 m cient newly designed small wind turbines depth). Leader: Construcciones Espe- for residential, industrial, and agricultural ciales y Dragados S.A. applications. • Development of a pitch rotor con- • Technical development breaking trol based on hydrostatic transmission. technological barriers and advancing Leader: Hydra-Power S.L. technological development in key areas • R&D on the capacity to use tall for small wind turbines. buildings as wind energy produc- • Infrastructure development activating tion sites. Leader: Vallehermoso and supporting the small wind turbine Promoción. sector. The objectives of this area are • Application of nanotechnology to promotion, dissemination, sensitiza- improve the efficiency of wind farms. tion, and information collection for Leader: Maeco Eólica S.L. the small wind turbine sector. • GAVEGE Project: R&D on a new, improved, and flexible mechanical The Spanish Wind Power Technolo- system for different sizes and types of gies Platform REOLTEC has an important wind technology components. Leader: role in the coordination and definition of Etxe-Tar S.A. research priorities for the Spanish Ministry • Development of a new automatic of Education and Science. REOLTEC is process for manufacturing flanges for the platform for exchange of ideas among the wind sector. Leader: Industrial all Spanish R&D entities to define research Barraquesa S.A. and development priorities. Those priorities • New line of machines for high preci- are identified by several working groups fo- sion manufacturing of large-diameter cy- cused on wind technology, wind resources lindrical components for use in the aero- and site assessment, grid integration, certi- nautical, wind, naval, and energy genera- fication and standardization, offshore wind tion sectors. Leader: Danobat Scoop. farms, applications, environmental issues, and social acceptance aspects. Finally, the Strategic Singular (PSE) Proj- The CENER Wind Turbine Test Labo- ects are arried out by strategic national con- ratory (www.cener.com) was inaugurated sortiums for technological research led by the on 22 September, 2008. Located in the industrial sector. In the field of wind energy, town of Sangüesa, Navarra, it is comprised a project called Minieolica is developing to of a series of cutting-edge technology wind promote the Spanish small wind energy sec- turbine test infrastructures, of international tor (new developments of turbines up to 100 reference, which include: kW). This project involves more than six man- • Blade Test Plant, to perform tests on ufacturers of small wind turbines and compo- characterization of physical properties, nents, three engineering companies, five public static and fatigue test. It has two test posi- and private research centers, three universities, tions for blades of up to 85 m. long.

250 2008 Annual Report Spain

• Power train test bench, to perform With a joint effort of the transport system mechanical durability tests on the operator, utilities, and the wind energy sec- power train (low speed shaft, multi- tor, wind parks will continue to increase their plier, high speed shaft and generator) contribution to meeting electrical demand. of wind turbines of up to 5 MW Among new technological develop- • Electrical test bench, to perform tests ments are two 3-MW-rated power wind on generators and power electronics turbines under test by Alston-Ecotécnia equipment. and Acciona Wind Power, another being • Nacelle test bench, to perform func- designed by MTorres, and a brand-new tional tests on the complete nacelle, 5-MW wind turbine from Gamesa. and tooling trials as well as to train per- In relation to small wind, several sonnel in assembly and maintenance. new manufacturers are developing wind • Composite material laboratory, to turbines from 3 kW to 100 kW for grid- optimize the manufacturing processes connected applications, and two manufac- of components with composite materi- turers are working on new wind turbine als, characterization of process control prototypes in the range from 150 kW to variables and characterization of mate- 300 kW. New fee-in tariff for small wind rial physical, chemical and mechanical is under discussion. properties. A new Renewable Energy Plan is being studied by the authorities to include 6.0 The Next Term the objectives of the European Union for Expectations for the Spanish wind energy 2020. A realistic estimate for wind energy industry for 2009 are optimistic. It is likely in Spain is that 40,000 MW of onshore and that by the end of the year, 18,500 MW of 5,000 MW of offshore wind capacity could total capacity will be installed. This amount be operating by 2020, providing close to represents more than 90% of the objectives 30% of Spain’s electricity. defined in PER 2005–2010, which established a target of 20,155 MW by the end of References: 2010. Only funding problems related to the (1) THE SPANISH RENEWABLE financial crisis could affect reaching the tar- ENERGY PLAN 2005–2010, Instituto pa- get. However, when the target is reached, a ra la Diversificación y Ahorro de la Energía revision of the tariff scheme will be in order. (IDEA; Institute for Diversification and Electricity prices seem likely to be flat Saving of Energy) July 2005. www.idae.es. in 2009 and may not exceed 80 €/MWh (2) WIND POWER OBSERVATORY. (especially if the contribution of hydropow- 2008, Asociación Empresarial Eólica (AEE; er to the system continues increasing and Spanish Wind Energy Association). January oil prices do not increase too much). 2008. www.aeeolica.org. During 2009, installation costs are (3) THE SPANISH ELECTRICITY expected to be as in 2008. No important SYSTEM. PRELIMINARY REPORT shortage of components and materials is 2007, Red Eléctrica de España. REE. De- expected that could influence the continu- cember 2007. www.ree.es. ation of the stable Spanish wind energy (4) REOLTEC. Spanish Wind Power market. Technological Platform II General Assembly. One of the main challenges for the industry in 2009 is to complete the regula- Authors: Ignacio Cruz and Enrique Soria tions for the Grid Code. Grid management Lascorz, CIEMAT, Spanish Ministry of Sci- has been reformed, and every wind farm is ence and Innovation, and Asociación Em- assigned to a control center, which makes presarial Eólica (AEE; Spanish Wind Energy the feed-in more transparent. Association), Spain.

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252 2008 Annual Report Chapter 28 1.0 Introduction The new wind energy installations in Sweden 2008 had a capacity of 216 MW (Table 1), which is less than the 236 MW that were installed in 2007. However, the installation planning goal for wind power generation of rate in the two last years has been about 30 TWh/yr until 2020. The purpose of the four times higher than in previous years. planning goal is to create land area for wind Figure 1 shows the evolution of installed in the general public planning (e.g. spatial wind power capacity in Sweden from 2003 planning and grid planning) for possible to 2008. This rate must be increased even production by 2020. Previously, the Swed- more if the new proposed planning goal of ish Energy Agency had suggested that plan- 30 TWh/yr can be met by 2020. ning be divided between 20 TWh onshore and 10 TWh offshore. 2.0 Progress Toward With current quotas in the electricity National Objectives certificate system it is estimated that wind 2.1 Swedish energy and electricity mix energy will contribute approximately 7 to 8 The Swedish energy end use in 2007 TWh by 2015. Without a change in quotas (numbers for 2007 are used since general in the electricity certificate system, further statistics for 2008 are not yet available) was expansion by 2020 will be marginal. The 404 TWh. The energy use is divided into Swedish Energy Agency, however, notes industrial energy use 157 TWh; transport that increased quotas can work as an ef- 105 TWh; and residential, services, etc. 143 fective way to increase the contribution of TWh. The total energy supplied was 624 renewable electricity, and that wind energy TWh. The difference between energy sup- likely will contribute to a major increase ply and use consists of losses and use for in renewable electricity production. The non-energy purposes. The largest losses Swedish Energy Agency further notes that were in nuclear power production with 124 even though the electricity certificate sys- TWh. The electricity production was 144.9 tem likely will work to increase wind ener- TWh in 2007. gy onshore, nothing will happen in the near Preliminary figures for 2008 indicate future offshore unless additional support a 0.5% increase in electricity production is given. The Swedish Energy Agency will compared to 2007. At the same time, elec- therefore look at suggestions for dedicated tricity use decreased by nearly 2%, which support for offshore wind. resulted in net export of electricity from Sweden of about 2 TWh in 2008. The pro- 2.3. Need for changes duction mix is shown in Figure 2. to the legislation A change in quotas in the electricity cer- 2.2 Goals for wind power tificate system or other economic support In recent political negotiations about ener- systems will be needed to reach a level gy, the government agreed to suggest a new substantially larger than 8 TWh by 2020.

Table 1 Key Statistics 2008: Sweden Total installed wind generation 1,047 MW New wind generation installed 216 MW Total electrical output from wind 1.974 TWh Wind generation as % of national electric demand 1.4% Planning Target 30 TWh in 2020 (suggested planning target)

IEA Wind 253 National Activities

Figure 1 Installed wind power capacity in Sweden 2003 to 2008.

In addition to such changes, there is also sufficiently permitted with one of these a need to make the permit procedure run permissions smoother and a need for changes in the • The preconditions for offshore wind electricity act. Today, several permits are power should be investigated in more required for a single project according to detail. the Environmental Code, the Planning and Building Act, the Electricity Act, and some- Another inquiry into the grid-connec- times other regulations as well. This results tion for renewables recently put forward its in several different reviews with possible suggestions for changes to the legislation multiple appeals, even though it essentially and procedures coupled to the Electricity is the same assessment that is made. This Act. The inquiry found that there is a need results in long wait times from first applica- to solve certain bottlenecks in the electric- tion until permits are obtained. The govern- ity network to make it easier to expand ment has therefore appointed an inquiry to the network in an economically sound look over the legislative process and make way (e.g. step-costs occur in the financ- suggestions for changes. Results from this ing for upgrading networks). The inquiry and other inquiries were recently included therefore proposes the creation of a grid in a set of suggestions from the government: investment fund to finance investments in • The Certificate System shall be fur- the electricity grid for future renewable ther developed. For the year 2020, energy connections. The fund is suggested 25 TWh is mentioned as a goal with even further increases thereafter. The Swedish Energy Agency will be given tasks to analyze and develop methods to meet the new goals as well as expanding the market for the Certificate System to other countries • A new target for wind power of 30 TWh is settled for the year 2020, with 20 TWh onshore and 10 TWh offshore • The planning process for wind power will be simplified by remov- Figure 2 Electricity production mix in Sweden ing the so-called doubled permissions. during 2008. In the future, planning should be

254 2008 Annual Report Sweden to be financed via network companies and Vestas, Enercon, Nordex, and others, have to be shared according to each company’s sales offices in Sweden. underlying electricity consumption by end On the component side (supply chain), customers. however, the value of manufactured goods is large. The market consists of subcon- 3.0 Benefits to National Economy tractors such as SKF (roller bearings and 3.1 Market characteristics monitoring systems), ABB (electrical com- The consortium Vindpark Vänern is cur- ponents and cable), Vestas Castings (former rently constructing a 30-MW park in Lake Guldsmedshytte Bruk AB), Dynavind Vänern. A number of other offshore sites (tower production), and EWP Windtower have already obtained permits or are in Production. Other companies worth men- the permitting process. However, there is tioning are Oiltech (hydraulic systems and no further construction going on since coolers), Nexans (cables), and ESAB (weld- onshore investments are currently more ing equipment). The subcontractors are economical. mainly multinational companies, but smaller The expansion onshore is driven partly entities that find the wind power market by the large utilities like Vattenfall and relevant to their know-how are also estab- E.ON but also by other actors. Much of lished in Sweden. project development currently takes place World record holder Näsudden II was in forested areas with developers continuing decommissioned during 2008 (Figure 3). to establish land lease contracts with forest The reason was a major failure of the gear- owners. The Norwegian power utility Stat- box. The 3-MW machine began operation kraft, for example, has applied for final per- on 1 June 1993 and produced 61.4 GWh mitting consent to develop and build 1,140 during 61,469 hours of operation (a world MW to produce about 2.4 TWh of wind record). energy. RES Skandinavien together with The decommissioning was done by Hg Capital of the UK are currently build- blasting the lower part of the tower, which ing the 95.4-MW wind farm Havsnäs in resulted in collapse of the whole machine. the northern part of Sweden. The indepen- The site will be reused for erection of a dent developer O2 Vindkompaniet finalized 2.5-MW prototype machine from the Indi- several onshore wind farms during 2008, an-German company Kenersys. This project and a Danish consortium built the 35-MW is part of the Market Stimulation Program Bondön project near the city of Piteå. run by Vattenfall. Apart from the companies mentioned above there are a number of utilities, de- 3.3 Offshore construction velopers, real estate companies, and private Three offshore projects, Utgrunden II, persons developing smaller and larger proj- Kriegers Flak, and Lillgrund projects have ects that are still in the planning phase. The been partly funded with support from the current financial crisis will slow the con- market introduction program as described struction of some projects during 2009. Of in Section 4. The Vindpark Vänern project the erected wind power in 2008, Vestas ob- in the largest lake in Sweden is also being tained a market share of 45%, Enercon and built with support from the market intro- Nordex each had a share of 25% and Dyna- duction program. vind (WinWinD) had a share of around 5%. For Utgrunden II, all necessary permits are ready and construction was planned 3.2 Industrial development and to start in 2007. However, the developer operational experience E.ON in early 2007 decided to postpone There are a few manufacturers of small building the wind farm. Having received wind turbines in Sweden. The large, inter- all tenders for the construction, the finan- national manufacturers of large turbines, cial return did not meet internal minimum

IEA Wind 255 National Activities

Figure 3 The decommissioning of wind power aggregate Näsudden II. levels and the project has been put on hold 2007. The last turbine was erected in Octo- for the time being. ber 2007. The first wind turbine was con- Support for the Kriegers Flak project nected to the grid and started to generate has been granted for development studies. electricity on 4 October 2007. All wind The project consists of studies of different turbines were in operation on 28 Novem- foundation types, risk assessment for ship ber 2007. The availability of Lillgrund in safety, and studies of how the wind farm 2008 was 94% and the production was 326 will influence marine currents. The result of GWh (calculated normal year generation of the studies will be reported in 2009. 330 GWh). The Lillgrund 110-MW offshore Vindpark Vänern is being built in Lake wind farm was put in operation in 2007. Vänern, the largest lake in Sweden with a The project consists of 48 Siemens 2.3- total area of 5,600 km2. The park is given MW turbines and a main transformer on 40 million SEK (3.7 million €) of financial a separate platform. They are erected on support from the Swedish Energy Agency, 49 gravity foundations that were built in which is 9.5% of the total estimated invest- Poland by a Danish-German Joint Venture, ment of around 450 million SEK (41.6 Pihl-Hochtief, and transported on barges to million €). The foundations are currently the Lillgrund site. The turbines have a hub under construction. The water depth on the height of 68.5 meters and a rotor diameter site is around 5 to 7 meters. The founda- of 93 meters. Construction of the foun- tions consist of concrete foundations that dations started in 2006 and was finished are secured in the rock by approximately during spring 2007. The internal offshore 16 20-meter-long pre-stressed anchors. This cables within the wind farm and the export makes it possible to have rather small foun- cable were laid during summer 2007. The dations with a minor influence on the lake first wind turbine was erected on 3 August bottom and the ecosystem.

256 2008 Annual Report Sweden

3.4 Economic Details done in assessing areas of national interest The average price of electricity certificates for wind power can also be considered a in 2008 was 247.21 SEK/MWh, which is sort of “soft incentive.” higher than in 2007 when the average certificate price was 195.4 SEK/MWh. Prior 4.1 Electricity certificates to the introduction of the electricity certifi- The national production target for renew- cate system, Sweden had a subsidy for wind able energy sources as a result of the EU di- power called the Environmental Bonus. rective 2001/77, implies an increase in the This system is being phased out and will be annual use of renewables in Sweden of 10 removed after 2009. During 2008, the value TWh from 2002 to 2010. The tool to meet of the Environmental Bonus was 20 SEK/ the target is a quota-based system with MWh onshore and 130 SEK/MWh. Dur- electricity certificates. The system came ing 2007, the Environmental Bonus was 40 into force on 1 May 2003, and is intended SEK/MWh onshore and 140 SEK/MWh to increase the production of renewable offshore. electricity in the most cost-efficient way. Figure 4 shows the average value of the The increased deployment of renewables, total revenue for wind-generated electricity and particularly wind power, will be driven onshore in Sweden during 2007 (the price by stipulated quotas that are increased an- paid to a wind turbine owner can be slight- nually, as well as by a quota obligation fee. ly reduced to cover the balancing cost on The system replaces earlier public grants electricity price for the grid company). The and subsidy systems. The principle is that sum is around 56 €/MWh. During 2006 there should be sellers and purchasers of the same number was 76 €/MWh. certificates, and a market to bring them together. There are no specific quotas for 4.0 National Incentive Programs wind power. Electricity producers receive There are three main incentive programs from the state a certificate for each MWh for the promotion of wind power: electric- of renewable electricity that they produce. ity certificates; production support, the so- This certificate can be sold, to provide ad- called Environmental Bonus; and support ditional revenue above the sale of the elec- for technical development in coordination tricity, improving the economics of elec- with market introduction for large-scale tricity production from renewable energy plants offshore and in artic areas. The work sources and encouraging the construction of new plants for the purpose. The demand for certificates is created by a requirement under the Act that all electricity suppliers and certain electricity users purchase certificates equivalent to a certain proportion of their electricity sales or use, known as their quota obligation. The size of this obligation is increased from year to year, increasing the demand for renewable electricity. The price of certificates is determined by supply and demand, and can vary from one transaction to another. The current aim of the system is to increase the level of renewable electricity Figure 4 Breakdown of total revenue (56 €/ to 17 TWh by 2016 relative to the 2002 MWh average) for a wind power plant during level. A new production unit can receive 2007. certificates only for a period of 15 years.

IEA Wind 257 National Activities

Old units therefore leave the system after effects from wind power offshore and in 15 years. Around 2010 there is a “notch” in the arctic areas. For the years 2003 to 2007, the quotas due to the fact that a number the budget was 350 million SEK (38 mil- of older production units are phased out lion €). The market introduction has been of the system after 2012. Figure 5 shows prolonged another five years with an addi- the quotas and expected production. The tional 350 million SEK for the period 2008 quota-based electricity production in 2007 to 2012. The projects funded to date are was about 13.25 TWh (9.6 TWh bioenergy, shown in Table 2. 2.2 TWh hydropower, and 1.4 TWh wind power). The increase in production from 4.4 Areas of national interest wind and hydro was about equal in 2007 According to the environmental code, land with wind increasing by 0.44 TWh. and water areas shall be used for the purposes for which the areas are best suited in 4.2 Production support view of their nature, the situation, and the (the Environmental Bonus) existing needs. Priority shall be given to The level of the “Environmental Bonus” is the use that promotes good management declining for each year until 2009. It will be from the point of view of public inter- zero after 2008 for onshore and after 2009 est. In the environmental code, different for offshore wind power. areas of Sweden are designated as areas of national interest for different kinds of land 4.3 Support for technical development use. These are areas of national interest for In 2003, the Swedish Energy Agency fishery, mining, nature preservation, out- launched a program to support technical door recreation, etc. The idea is to protect development in coordination with market specific areas such that the specific national introduction, for large-scale plants offshore interest not is jeopardized. An area can and plants in artic areas. The aim is to stim- be of national interest for several kinds ulate the market, achieve cost reduction, of land use. In order to guard the interest and gain knowledge about environmental of wind energy, 49 geographical areas in

Figure 5 Quotas and production goal of the electricity certiﬁ cate system. [units on left axis should be TWh]

258 2008 Annual Report Sweden

Table 2 Projects with support from the market introduction program Project Recipient company Support Location Estimated production and estimated year of operation Lillgrund Örestads vindkraft- 213 MSEK Offshore 330 GWh; oper- park AB (owned by (23 M€) ating since late Vattenfall) 2007. Utgrunden II E.ON Vind Sverige 70 MSEK Offshore 285 GWh; planned AB (7.6 M€) for 2008 but recently postponed. Vindpark Vindpark Vänern 40 MSEK Largest 89 GWh; planned Vänern Kraft AB (4.3 M€) Swedish for full operation in lake 2009. Uljabouoda Skellefteå Kraft AB 35 MSEK Onshore 100 GWh (2008) (3.8 M€) artic Kriegers Flak Sweden Offshore 9.45 MSEK Offshore No production. Wind AB (Vattenfall (1 M€) Only development AB) program. Vindval 35 MSEK No production. (3.8 M€) Only research program.

13 counties were pointed out as areas of 5.0 R, D&D Activities national interest for electricity production Publicly funded wind energy research is from wind energy in 2004. mainly carried out within the Vindforsk The Swedish Energy Agency has and Vindval research programs. started a network to promote the use of wind power. Project financing decisions 5.1 National R, D&D efforts totaling about 13 million SEK were made The Vindforsk II program ran between in autumn 2008. Most of the projects are 2006 and 2008 with a total budget of 45 designed to strengthen local activities and million SEK. The goal of the program was knowledge of wind power. One project, to generate knowledge in order to facilitate for example, will develop informational the deployment of wind energy and its handbooks about regional/local owner- integration with the power grid. Vindforsk ship of wind power. Other projects are was focused on research related to the tech- aimed at stimulating local wind power nological development of wind turbines development, such as support for industry and their interplay with the technical en- wind power development projects. Projects vironment in which they operate. Studies for strengthening the competence of key have been carried out in the following people involved in wind power planning areas: and in helping municipalities with contacts • Large amounts of wind power from between actors related to wind power es- a market and technical perspective. tablishment were also supported. Support One study showed that the opportuni- was also given to projects that enhance ties for wind power expansion are not school education and increase the quality of limited by its physical potential but education for wind power technicians. will instead largely depend on whether

IEA Wind 259 National Activities

or not barriers are created by the per- will be organized in four project packages: mitting process, opportunities for grid the wind resource and establishment, cost connection, and technical problems. effective wind power plant and design, op- • Sound propagation around offshore timal running and maintenance, and wind wind turbines. This was investigated power in the power system. by one project, and the results pro- The Vindval program is financed by vided a basis for modification of the the Swedish Energy Agency and is admin- Swedish Environmental Protection istrated by the Swedish Environmental Agency’s model “Sound propagation Protection Agency. Vindval is a small part around offshore wind turbines.” of a program called “Market introduction • Wind energy in cold climates. One and technology development program” project focused on development of which has run since 2003. Vindval’s objec- methods to de-ice or prevent icing on tive is to facilitate an increase in the expan- rotor blades, and two projects focused sion of wind power by compiling basic on ice measurement and detection. data for environmental impact assessments • Wind turbine design. Studies were and permit application processes. Research carried out ranging from how wind within Vindval helps compile knowledge farms can be optimized with regard to about how wind power affects animals, the wind turbine wakes, to new splicing environment, people, and the landscape. methods for steel wind turbine towers. Vindval will also contribute to the increase • Electrical systems in wind turbines. of competence in and knowledge about Investigations into the problem of high the environmental effects of wind power at frequency transients in wind farms Swedish universities, colleges, institutes, and have been carried out, amongst others, companies. Three studies have been finished and are resulting in models for electri- during the year: cal systems with more detailed model- • Environmental optimization of foun- ing of circuit breakers in the system. dations for offshore wind power and • Grid connection. Projects have fo- studies of small fish at Lillgrund wind cused on ways during the planning and farm design stages to ensure that wind farms • A study about how sea-based fauna is meet the code requirements of Svenska affected by noise from offshore wind Kraftnät (the Swedish National Grid) power regarding their behavior in the grid. • Experience from wind power • Operation and maintenance. Stud- building – support, acceptance, and ies have shown that wind turbines resistance. have lower availability then previously thought. Review of the statistical data During 2008, the program was ex- has uncovered errors and misleading tended through 2012 with a new budget information in the reporting system. of 35 million SEK. Within this time period the program will include new environmen- A decision for the next stage in Swe- tal studies in important fields such as social den’s national R, D&D efforts, Vindforsk studies; animals in the forests; and effects III, was made in December 2008. Vindforsk on economic areas like reindeer farming, III will run from 2009 to 2012 with a total nature tourism, and outdoor recreation. budget of 20 million SEK/yr. Elforsk, the Other important areas will be to synthesize Swedish Electricity Utilities’ R&D com- and spread information to important actors pany administers the program. The program in the industry about the effects from wind is financed 50% by the Swedish Energy power. Agency and 50% by Elforsk. Vindforsk III Apart from projects in these programs, other R&D projects are also funded.

260 2008 Annual Report Sweden

• A study on how to decrease distur- Sweden have started yet. The Kriegers Flak bances to defense radar systems from area has projects being planned both on offshore wind power have shown that the Swedish and German part of the Flak, the handling of wind power permitting and is currently under consideration for the can be simplified. Danish part. It has been identified as a good • A group at the University of Uppsala start for collaboration. is working on direct driven conversion systems for renewable energy. The 6.0 The Next Term work is on implementations for wind The two research programs Vindval and power, wave power, and power from Vindforsk will start new research projects in streaming water. For wind they are 2009. A lot of the expected growth in wind working on direct driven vertical axis generation capacity will be in forest areas H-rotors. The generators are built with and also in the northern parts of Sweden windings with high voltage cables. in the “low-fjelds.” The interest in those regions is prompted by the rather good wind 5.2 Collaborative research potential as estimated by Swedish wind Research groups in Sweden participate in mapping. Substantial uncertainty, however, all currently operating IEA Wind Research exists in the energy capture and loads of Tasks. During 2008, Sweden re-joined Task turbines in forested areas. The character of 19. Vattenfall AB served as Operating Agent wind shear and turbulence is less explored for Task 11, Base Technology Information in these areas and projects in the coming Exchange in 2008. Participation in the IEA research program will be set up to increase Wind Tasks boosts work in the national the knowledge in this area. programs by allowing the invaluable sharing of expensive data from experiments and References: measurements. During late 2007, Sweden also signed (1) Decommission of Näsudden II, a Joint Declaration on Co-operation in the See youtube: http://www.youtube.com/ Field of Research on Offshore Wind En- watch?v=Ddr8VwFMJ4I ergy Deployment with Denmark and Ger- many. The aim is to co-operate on com- Author: Maria Danestig, Swedish En- mon research areas and share experience. ergy Agency, Sweden. No firm collaboration projects involving

IEA Wind 261 National Activities

262 2008 Annual Report Chapter 29 1.0 Introduction Electricity consumption in Switzerland Switzerland declined by 0.6% in 2007 to 57.4 billion kWh. The last time a decrease in consumption was recorded was in 1997. Domestic through the Energy 2000 and SwissEnergy power plants generated 65.9 billion kWh, programs (1), it is still a long way from or 6.1% more electricity than in 2006. This achieving its goal of securing a sustain- constitutes the third highest electricity out- able energy supply, quoted as a “2000 Watt put ever achieved in the country. After con- Society” (2). In view of the diminishing secutive years of electricity import surpluses fossil fuel reserves, the challenges associated in 2005 and 2006, an export surplus was with climate change, and the high degree achieved once again in 2007. of dependence of Switzerland‘s energy In February 2007, the Federal Council supply on imports, the focus is increasingly decided to focus its energy policy on four shifting toward renewable forms of energy main areas: energy efficiency, renewable (Figure 1). energy, replacement of existing large-scale For the SwissEnergy program, renew- power plants and construction of new able energy is a clear priority. Despite this ones, and foreign energy policy. In order priority, the proportion of wind power to to implement this strategy, the Federal De- Switzerland’s overall energy consumption partment of the Environment, Transport, is still very modest (Table 1). However, the Energy and Communications (DETEC) growth prospects for renewable energy prepared draft action plans for energy ef- are excellent - both in the near future and ficiency and the use of renewable energy, over the long term, thanks to technological which were approved by the Federal Coun- progress, increasing economic competitive- cil on 20 February 2008. ness in the context with “Cost-covering These action plans set out to reduce remuneration for feed-in to the electricity the consumption of fossil fuels by 20% by grid (CRF),” and the positive image of re- 2020 (in line with the declared climate newable energy. objectives), to increase the proportion of SwissEnergy will only be able to renewable energy to overall energy con- achieve its objectives relating to renew- sumption by 50%, and to limit the increase able energy by working closely with strong in electricity consumption to a maximum partners from the country’s economy, of 5% between 2010 and 2020. From 2020 which possess detailed knowledge about onwards, the objective is to stabilize elec- the general environment and the energy tricity consumption. market. These include the Swiss Wind Although Switzerland has pursued Energy Association “Suisse Eole,” as well a consistent energy policy since 1990 as the cantons (states). SwissEnergy also

Table 1 Key Statistics 2008: Switzerland Total installed wind generation 13.8 MW New wind generation installed 2.3 MW Total electrical output from wind .0185 TWh Wind generation as % of national electric demand 0.03% Target: 100 GWh/yr in 2010 600 GWh/yr in 2025

IEA Wind 263 National Activities

Figure 1 Award winning project of “Eolienne Mont d’Ottan” in the inner alpine valley of Wallis (photo courtesy of RhônEole). promotes the transfer of new technologies • Climate: Reducing carbon dioxide from research to practical implementation emissions by 10% by 2010 (compared

(Section 4). to the 1990 level) according to CO2 legislation. 2.0 Progress Toward • Electricity: Limiting the increase in National Objectives electricity consumption to a maximum The targets of the SwissEnergy program of 5% compared to the 2000 level. are based on the Energy Act, the Kyoto • Renewable forms of energy: In- agreement on the climate, and the CO2 Act. creasing the proportion of renewable Such aims are as follows: forms of energy used in electricity

264 2008 Annual Report Switzerland

production by 500 thousand MWh already been attained. The greatest absolute and in heat production by 3 million gain was noted in the wood sector; electric- MWh. ity production from wood increased to 92.4 GWh, more than double the quantity for 2.1 Impacts on energy 2006. By contrast, waste incineration plants consumption in 2007 produced less electricity, however such The additional impacts achieved in 2007 – plants still make the greatest contribution based on voluntary measures encouraged by to achieving energy targets. Above average the SwissEnergy program – lie at about 3.5 growth was recorded in the photovoltaic PJ. These impacts are about 16% lower than sector, although in contrast to 2006 some in the previous year and constitute about larger facilities were installed. 0.4% of Switzerland’s final energy consumption. The clearly weaker rise in impacts is 2.2 Wind energy a result of a reduction in the budget to ap- The Swiss wind energy concept also identi- proximately 39 million CHF – 7% less than fies the calculated wind energy potential for 2006. In the fifth year of the SwissEnergy Switzerland based on the real wind condi- program, a total of 2.7 PJ of combustibles, tions on the sites and on the possible num- 0.3 PJ of vehicle fuels, and about 0.5 PJ of ber of plants to be installed (3): electricity could either be saved or substitut- • Time horizon 2010: 100 GWh ed with renewable forms of energy as a re- • Time horizon 2025: 600 GWh sult of voluntary measures and promotional • Time horizon 2050: 4,000 GWh. measures at the cantonal level. Both electricity production and heat In 2008, wind energy in Switzerland production from renewable forms of en- produced 18.54 GWh representing 18% of ergy further increased in 2007. SwissEnergy the 2010 objective. By 1 January 2009 there is well on the way to reaching its targets. is a “Cost-covering remuneration for feed- The heat sector has already attained 80% in to the electricity grid (CRF)” for renew- of its target for 2010, with a further 551 able energy in Switzerland. This change of GWh of heat (corrected for variations in politics in promoting wind energy did lead the climate) produced in 2007. Wood and to a boost of new projects (Section 4). waste (renewable proportions) still make the greatest overall contribution in this sector. 3.0 Benefits to National Economy The greatest percentage growth was re- 3.1 Market characteristics corded in the heat pump sector with 11.5% The installed capacity of wind energy in compared to 2006. The number of solar Switzerland did increase during 2008 by panels increased strongly over 2006. The 2.3 MW. The total capacity of all 38 in- number of biogas plants remained roughly stalled turbines is 13.8 MW, and the energy the same as in the preceding year. Further yield in 2008 increased to 18.54 GWh progress was made in the building renova- (Figure 2). This brings the average capacity tion sector. Heat pumps and wood-pellet factor up to 16%. burners are gaining a greater share of the In 2008, 94% of the electricity from market because of the steep increase in the wind energy was produced by utility com- price of oil. panies. Driven by the new regulation for The increase in production of electric- the remuneration of green electricity, vari- ity from renewable forms of energy was ous companies (utility owned and private) more modest. In 2007, an additional 52.9 are developing activities to get a share of fi- GWh of electricity were produced from nances at disposition for renewable energies. renewable sources of energy. In this sector 75% of the agreed target for 2010 has

IEA Wind 265 National Activities

3.2 Industrial development and 4.0 National Incentive Programs operational experience 4.1 Cost-covering remuneration The Swiss industry is active in the follow- Producers of renewable electricity from ing fields of wind energy: hydropower (up to 10 MW), photovoltaic • Development and production of energy, wind power, geothermal power and chemical products for rotor blades, like biomass energy as well as biomass waste resins, adhesives, etc. (Gurit Heberlein, have been able to register their plants for Huntsman, Clariant) the cost-covering remuneration for feed-in • Development and production of to the electricity grid (CRF) since 1 May power electronics like inverters, etc. 2008. An annual sum of around 320 million (Integral Drive Systems AG, Vivatec, CHF (215 million €) is to be earmarked for VonRoll Isola) the new promotion measures called for in • Services in the field of site assess- the Federal Energy Act. It has been decided ments and project development that a maximum share of 30% would go (Meteotest, Interwind, NEK, Kohle/ into wind energy. Nussbaumer) The scheme will go into operation • Niche products like ice detectors on 1 January 2009. From this date, plants (Boschung, Markasub AG). that qualify for the new incentive scheme and have submitted their notification of The total turnover in the above men- commissioning to swissgrid AG correctly tioned areas is about 200 million €/yr, and on time will receive the compensa- which represents about 600 employees. The tory feed-in remuneration for the electric- chemical products and power electronics ity they feed into the grid. By the end of industries account for 95% of this turnover October 2008, the national grid company and 85% is covered by the four largest com- swissgrid AG, which is handling the reg- panies. Some companies are mayor players istration and decision process on behalf in the world market despite the nearly non- of SFOE, had received 5,426 applications, existent home market. 3,500 of which were received on 1 and 2 May 2008 alone. 3.3 Economic details A total of 365 wind energy projects, The specific costs of existing larger wind with an overall installed capacity of 675 power plants (including installation) MW, did receive a notification of registra- amounted to about 2,000 to 2,200 CHF/ tion of their application. This means, that kW (1,345 to 1,480 €/kW). Today’s prices developers found sites in Switzerland which for new installation are more like 2,800 could produce up to 1,200 GWh - despite CHF/kW (1,885 €/kW). These prices will the fact, that the foreseen tariffs are not cost result in cost-covering tariffs in the range covering (Figure 3). of 0.25 CHF/kWh (0.17 €/kWh) at windy Yet this figure must be analyzed rather locations. Unfortunately, the regulation critically, since for registration, only a con- for the compensatory feed-in remunera- tract with the land owner and the installed tion scheme provides only 0.17 to 0.20 capacity had to be presented. So it is quite CHF/kWh (0.11 to 0.13 €) for wind en- possible that during the future develop- ergy – based on the same mechanism as ments, various projects will be abandoned the German model. At the moment, there due to insufficient economics, spatial plan- are negotiations between the wind energy ning issues, landscape protection, etc. De- industry and the Swiss Federal Office of velopers now have two years to produce Energy (SFOE) to raise this value. the necessary documents for the building permits, otherwise they must re-apply and

266 2008 Annual Report Switzerland

Figure 2 Installed capacity and energy yield of wind turbines in Switzerland through 2008. are on the waiting list. However, for the 4.2 Swiss Wind Energy Association further growth of the wind energy industry “suisse Eole” in Switzerland it is very important to see Wind energy is an important element that once the financial aspects are regulated within the SwissEnergy program. Suisse (CRF), the number of planned wind proj- Eole, the Swiss Wind Energy Association, ects just sky rocketed! (Figure 4) is the leading authority on the use of wind The high number of registrations in all energy in Switzerland and co-ordinates all technologies meant that the full cap for all activities in collaboration with the cantonal technologies laid down by Parliament in institutes of energy, energy suppliers, and the Energy Act has since been reached. The energy planners. Under the title “Imple- SFOE is therefore declaring a moratorium mentation of the concept Wind Energy from 1 February 2009 for all technologies. Switzerland,” suisse Eole can offer certain In practical terms, this means that swissgrid operational and financial support for site as- AG will put all new applications from any sessments and communication measures. type of plant on a waiting list if they are Based on the important changes in postmarked 1 February 2009 or later. the energy policy framework of Switzer- Further expansion of green electric- land (CRF), the number of players on the ity production in Switzerland on the basis Swiss market has increased dramatically of the current CRF incentive system is (Figure 4). To establish a high quality refer- no longer possible. Only by amending the ence standard for future projects will be a legislative framework can the economic po- major challenge of the Swiss Wind Energy tential of renewable power continue to be Association. exploited. The main focus must be on raising the CRF cost limits (full cap). A further 5.0 R, D&D Activities possibility would be to speed up the intro- 5.1 National R, D&D efforts duction of obligatory production quotas The wind energy research program 2008 to from renewable energies for the individual 2011 focuses on (4): energy supply companies. • Developing innovative turbine components for specific application in

IEA Wind 267 National Activities

Figure 3 Capacity of registered projects under cost- covering remuneration for feed-in to the electricity grid (CRF) scheme.

Switzerland’s harsh climatic conditions: - Implementing public participation - Reducing loads with new materials models. - Increasing the energy yield at low wind speeds Implementing pilot and demonstration - Employing Nano-technology projects leads to stronger market penetra- against icing and fouling. tion by wind energy and closes the gap • Increasing availability and energy between research activities and application yield at extreme sites: in practice. - Developing planning expertise for In 2008, the budget for wind energy applications in complex terrain related R&D projects was 729,000 CHF - Testing and demonstration plants at (490,740 €). This is an increase from 2007 extreme sites by more than 50%. An amount of 677,000 - Evaluating operational experiences, CHF (455,740 €) is spent on promoting and making recommendations. activities. • Increasing the “value” of the wind energy, and optimizing the integration 5.2 Collaborative research of wind energy into the grid: Within this framework, the following proj- - Fore and nowcasting the power ects were realized: production from wind • Development of innovative turbine - Grid regulation with a high amount components such as antifreeze coatings of wind energy for rotor blades - Optimizing the conditions for • Increased availability: intermittent production plants in - Alpine test site Gütsch, handbook the grid and seminar within COST 727 • Increasing the acceptance of wind - Measuring and forecasting icing on energy, and integrating social and en- structures vironmental authority: - Development of wind tur- - Defining success factors and bines for safe operation in alpine strategies environments - Improving local planning processes, • Increased “value” of the wind energy social acceptance using fore and nowcasting of energy

268 2008 Annual Report Switzerland

Figure 4 Possible development of future wind energy market in Switzerland.

yield from wind turbines in complex 6.0 The Next Term terrain Based on operating experience and the • Increased acceptance for wind energy possible optimization potential, the research - Effect of wind power installation in activities should have results on the follow- Switzerland ing key factors: - IEA Topical Expert Meeting “So- • Quantifying the production losses cial Acceptance” and the downtimes due to icing; im- - Social Acceptance of Wind Energy plementing and evaluation of relevant in Switzerland – To Invest or Not measures to Invest • Reducing the production cost by in- - “Code of Conduct” for the devel- creasing the full-load hours and the re- opment of wind energy projects in liability of turbines in harsh conditions Switzerland • Increasing the accuracy of energy • Under the title “Pilot and Demon- yield estimates stration Project,” the following activi- • Reducing planning and installation ties were realized: costs by speeding up planning proce- - Support of spatial planning activi- dures and considering important ac- ties for the implementation of wind ceptance issues. energy projects The following research projects are in - Financial support for site assessment discussion: - Purchase of a Lidar, which can be • Product development in the area of rented out by the Swiss Wind En- antifreeze coatings ergy Association. • Development of a reliable ice detector Switzerland participates in the IEA • Providing a freezing up map of Wind Implementing Agreement Task 11 Switzerland Base Technology Information Exchange, • Evaluating the effects of the icing up and Task 19 Wind Energy in Cold Cli- on the operational behavior and the mates. Since 2008, the new Task 28 on energy yield of wind turbines in the Social Acceptance of Wind Energy Projects: Jura mountains Winning Hearts and Minds is managed by • Developing a product for “Fore and Switzerland. Nowcasting” • Further development of a “Code of the of Conduct,” accepted procedure

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Figure 5 Sub-scale model wind turbine test facility at the ETH Zürich (Photo ETHZ).

for wind energy development in (2) “2000 Watt Society:” http://www. Switzerland cepe.ch/research/projects/2000_watt_soci- • Project “Before/After” for the deter- ety/2000_watt_society.htm mination of the effects of the imple- (3) Konzept Windenergie Schweiz, mentation of wind turbines. Bundesamt für Energie, 2003; http://www.wind-data.ch/konzept/ Thanks to the new CRF legislation index.php?lng=en the results in new project development are (4) Konzept der Energieforschung astonishing. Future research activities have des Bundes 2008 – 2011, http://www. to concentrate on issues that lead to the bfe.admin.ch/themen/00519/index. realization of a substantial amount of these html?lang=en&dossier_id=00798 planned projects. (5) Energie Forschungs-Programm The experiences in cold climates will Windenergie für die Jahre 2008-2011 be continuously shared in international http://www.bfe.admin.ch/forsc- seminars and in the project group of the hungwindenergie/02331/index. IEA Wind Task 19 Wind Energy in Cold html?lang=en&dossier_id=02802 Climates. Having more experiences in difficult site development and sophisticated Author: Robert Horbaty, Swiss Wind planning procedures than in large-scale Energy Program, Switzerland. wind energy development, Switzerland is running the new IEA Wind Task 28 Social Acceptance of Wind Energy Projects.

References: (1) The SwissEnergy program: http:// www.bfe.admin.ch/energie/00458/index. html?lang=en&dossier_id=00720

270 2008 Annual Report Chapter 30 1.0 Introduction The United Kingdom (UK) has one of the United Kingdom best wind resources in Europe and has significant potential for development of both onshore and offshore wind. The UK gov- to investigate the potential impacts of fur- ernment has put in place a range of mea- ther leasing for offshore wind farms and sures to enable the successful development licensing for offshore oil and gas, including of that potential resource, and it is com- natural gas storage. These measures are de- mitted to ensuring the further growth of tailed in Section 4. wind generation. The proposed EU target In the UK, primary energy supply of 15% of the UK’s energy to come from comes from a range of sources: natural gas renewable sources, whilst still subject to (39%), oil and petrol products (36%), coal agreement, is likely to mean a very signifi- (17%), electricity (7%), and renewables and cant increase in the contribution from wind waste (2%) (1). Electricity generation sta- energy—both onshore and offshore—to tions use a mixture of energy sources: coal the UK’s overall energy mix. (39%), gas (36%), nuclear (17%), and renew- From the time the first commercial tur- ables (5%). The remaining 4% comes from bine was installed in the UK, it took four- other fuels, oil, and electricity imports (2). teen years for the UK to reach the 1-GW Renewable energy sources accounted for mark but less than two years to double that 5.17 million tonnes of oil equivalent, with capacity to 2 GW. By the close of 2008, 4.08 million tonnes used to generate elec- more than 3.3 GW of wind energy capac- tricity, 0.73 million tonnes to generate heat, ity was operational in the UK. The UK is and 0.36 million tonnes for transport fuel now the world leader in offshore wind en- (3). Use of renewable energy grew by 8.4% ergy, with 598 MW installed capacity. between 2006 and 2007 (4). Total primary Since the publication of the 2007 IEA energy demand was 2.7% lower in 2007 Wind Annual Report, the UK government than in 2006 at 226 million tonnes of oil has strengthened the regulatory framework equivalent (5). to deliver its renewable energy targets by UK gas production is declining as UK setting in law three key pieces of legislation: continental shelf reserves deplete. The UK • The Climate Change Act continues to be a net importer of gas. In • The Energy Act the fourth quarter of 2008, imports of gas • The Planning Act were 16.6% higher than the same period in 2007. Exports also increased by 21.3% In addition to these legislative mea- (8). Reliance on imports will increase sures, the government has conducted a over the coming years as output from the Strategic Environmental Assessment (SEA) UK declines.

Table 1 Key Statistics 2008: United Kingdom Total installed wind generation (9) 3,331 MW New wind generation installed (10) 912 MW ) Total electrical output from wind (11) 5.274 TWh (2007) Wind generation as % of national electric 1.32% (2007) demand (12) Targets: 10% of electricity from renewables by 2010 and proposed 15% of total energy from renewables by 2020

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Figure 1 The fi nal blade is fi tted to the fi rst turbine on Whitelee wind farm. Image courtesy of Scottish Power Renewables.

The wind energy industry in the UK the Scottish government. This wind farm continues to grow rapidly. A total of 912 will have a generating capacity of 548 MW MW of new wind generation capacity was when fully commissioned. commissioned in 2008 (450 MW in 2007), The overall electricity contribution bringing the UK well over the 3-GW mark from wind energy increased from 1.04% in terms of installed capacity. Total installed (2006) to 1.32% (2007) of the total electric- capacity stood at 3,331 MW in February ity demand for the UK. This contribution 2009, an increase of 38% above the 2007 from wind is set to rise dramatically. Wind level. This includes 598 MW of offshore energy will be the single biggest contribu- wind energy capacity. Further key statistics tor to the government’s target of 10% of are shown in Table 1. electricity from renewables by 2010. Wind One of the main contributors to this is expected to deliver more than half of the increase in capacity was the Whitelee wind 10% electricity target. farm in Scotland, now one of the largest in There were 1,665 MW of projects Europe (Figure 1). When the first phase is under construction at the end of 2008, and complete, it will have a generating capacity a further 7,093 MW were approved but of 322 MW. If plans for extensions are ap- had not yet begun construction. Figure 2 proved, Whitelee will increase its capacity shows the installation of wind turbines on further to 614 MW. Clyde, another wind the Lynn and Inner Dowsing wind farms, farm in Scotland, has been approved by which came online in 2008.

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2.0 Progress Toward Renewable energy is an integral part National Objectives of the government’s longer-term aim of 2.1 Policy background reducing CO2 emissions by 80% by 2050. The UK government has four long-term In 2000, the government set a target of 10% goals for its energy policy: of electricity supply from renewable energy 1. Put the country on the path to re- by 2010. In 2007, 5% of the UK’s electricity ducing carbon dioxide emissions by 80% by supply came from renewable sources, with 2050, with real progress by 2020. 4.9% from Renewables Obligation (RO)– 2. Maintain the reliability of energy eligible sources (14). There are no specific supplies. targets for installed capacity or electricity 3. Promote competitive markets in the generation from wind energy. UK and beyond, helping to raise the rate The UK has agreed with other mem- of sustainable economic growth and to im- ber states to an EU-wide target of 20% of prove our productivity. energy from renewables by 2020, including 4. Ensure that every home is adequately a binding 10% target for the transport sec- and affordably heated. tor. The European Commission (EC) has proposed that the UK share of this target The Department of Energy and Cli- would be to achieve 15% of the UK’s en- mate Change (DECC) was established on ergy from renewables by 2020. The mecha- 3 October 2008. DECC joins much of the nisms to help achieve these targets are de- Climate Change Group that was previously tailed in Section 4. part of the Department for Environment, Food and Rural Affairs (Defra) with the 2.2 Progress toward national targets Energy Group from the Department for British Wind Energy Association (BWEA) Business, Enterprise and Regulatory Re- figures (15) show a total of 34 new projects, form (BERR). The DECC has three prin- including two offshore projects, came on cipal objectives (13): stream in 2008, representing 912 MW of • Ensure that the UK has energy that is new capacity. Figure 3 shows the new ca- affordable, secure, and sustainable. pacity by country. • Bring about the transition to a low- Projects commissioned in 2008 (Table carbon economy. 2) raised the total installed capacity to • Achieve an international agreement 3,331 MW, an increase of 38% over capac- on climate change at Copenhagen in ity installed at the end of 2007 (Figure 4). December 2009. Figure 5 shows the distribution of installed capacity by country in the UK. Figure 6 shows projects under construction at the end of 2008. Offshore wind projects completed through the end of 2008 brought the total installed offshore capacity in the UK to 598 MW (Table 3). In 2008, 56 new projects were approved through the planning system totaling 3,980 MW. These projects brought the total UK capacity approved but not yet under construction to almost 7,100 MW (Figure 7) Figure 2 Lynn and Inner Dowsing wind The total capacity of approved projects farms under construction. Image courtesy is 12,089 MW, which includes operating of Centrica. projects, projects being constructed, and projects that are approved but have not yet

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Figure 3 Wind capacity built in the UK in 2008 (912 MW total).

Figure 4 History of wind capacity growth in the UK through end of 2008.

Figure 5 UK wind capacity built through end of 2008.

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Table 2 Wind Projects Commissioned in the UK in 2008 Wind farm Region Turbines Power* MW Online Bessy Bell extension Northern Ireland 6 1.30 9.0 May 2008 Bicker Fen England 13 2.00 26.0 November 2008 Braich Ddu farm Wales 3 1.30 3.9 January 2008 Conisholme Fen re-submission England 20 0.80 16.0 May 2008 Dalswinton, Pennyland Moor Scotland 15 2.00 30.0 October 2008 Drumderg Scotland 16 2.30 36.8 October 2008 Green Knowes Scotland 18 1.50 27.0 September 2008 Hagshaw Hill extension Scotland 20 1.30 26.0 October 2008 High Hedley Hope 2 England 4 1.30 5.2 October 2008 Inner Dowsing England (off- 30 3.60 97.0 November 2008 shore) Kilbraur (Strathbrora) Scotland 19 2.50 47.5 August 2008 Knabs Ridge, Felliscliffe England 8 2.00 16.0 September 2008 Liniclate wind farm Scotland 1 0.90 0.9 December 2008 Lynn England (off- 30 3.00 97.0 November 2008 shore) Millennium (Glenmoriston) ex- Scotland 4 2.50 10.0 December 2008 tension Millennium (Glenmoriston) Scotland 16 2.50 40.0 October 2008 Minsca farm Scotland 16 2.30 36.8 May 2008 Moel Maelogen extension Wales 8 1.30 11.7 October 2008 North Redbog Scotland 2 0.80 1.6 July 2008 Owenreagh extension Northern Ireland 6 0.85 5.1 August 2008 Ramsey repowering England 1 1.80 1.8 September 2008 Ransonmoor Phase II England 2 2.00 4.0 April 2008 Scout Moor England 26 2.50 65.0 September 2008 Shooters Bottom farm England 1 2.00 2.0 June 2008 Slieve Rushen repowering Northern Ireland 18 3.00 54.0 April 2008 The Hollies wind farm England 2 1.30 2.6 July 2008 Trimdon Grange England 4 1.30 5.2 October 2008 Ulster University Northern Ireland 1 0.80 0.8 August 2008 Table 2 continued on page 276

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Continued from page 275 Walkway, High Swainston England 7 2.00 14.0 May 2008 Watten (Bilbster) Scotland 3 1.30 3.9 September 2008 Westmill England 5 1.30 6.5 March 2008 Whitelee, Eaglesham Moor Scotland 89 2.30 204.7 November 2008 (part) Whittlesey England 1 1.80 1.8 September 2008 WWF Roskrow Barton England 2 0.85 1.7 February 2008 *Average turbine size: 2.18 414 911.5 MW been constructed (Figure 8). The greatest the fastest-growing energy sectors in the proportion of capacity in this figure (3,255 UK. It is estimated that companies working MW) is made up of English offshore proj- in the renewables sector currently sustain ects that have been approved but have not about 16,000 (16) jobs in the UK, and this yet been built. Onshore wind projects in number is projected to increase as the wind Scotland also contribute significantly to this industry grows. If the UK is to meet its total, with over 2 GW of capacity approved proposed 2020 RE target, it is estimated but not yet under construction. that this will require 122,000 to 133,000 The approval rate for new wind energy jobs (16), although not all of these will nec- projects in 2007 was 70.1%. This was signif- essarily be in the UK. icantly greater than the rates of 54.7% and The supply chain that supports the UK 59.6% observed in 2006 and 2005, respec- wind energy industry includes develop- tively. In 2008, the approval rate dropped ers; professional services providers such as to 61%. Although this rate is considerably accountants, solicitors; and insurers; and worse than the 2007 rate, more capacity technical consultants in the areas of wind was approved in 2008 (almost 4 GW) than resource assessment, planning, civil engi- in 2007 (2,300 MW). neering, environmental impact assessment, In both 2007 and 2008, refusals had and electrical engineering. Also included the biggest impact in Scotland. In 2007, are supply chain manufacturers that provide 17 projects and 575 MW of capacity were all major components of a wind turbine, refused planning permission or were with- including blades, foundations, seabed survey, drawn. In 2008, only six Scottish projects logistics and port storage, installation, cable were refused permission or were with- laying, connections, standards/certification, drawn; however, this amounted to over 1 and O&M services. With the exception of GW of capacity. Clipper Windpower, major turbine manufacturers are located outside of the UK, 3.0 Benefits to National Economy which poses challenges for the UK supply 3.1 Market characteristics chain. The consistently high level of project development undertaken over the past three 3.2 Economic details years, together with the large number of Financing for wind farms is obtained projects that have gained planning consent largely from the balance sheets of corpo- and are on the drawing board, underlines rate investors and banks, although there is a the fact that wind energy remains one of small amount of private investment. There

276 2008 Annual Report United Kingdom

Figure 6 UK wind capacity under construction at end of 2008.

Table 3 Completed Offshore Wind Projects in the UK (through 2008) Wind farm Turbine/manufac- Turbine no. Capacity (MW) Online turer Inner Dowsing 3.6 MW/Siemens 30 97 November 2008 Lynn 3.6 MW/Siemens 30 97 November 2008 Burbo Bank 3.6 MW/Siemens 25 90 October 2007 Beatrice 5 MW/RE Power 2 10 July 2007 Barrow 3 MW/Vestas V90 30 90 July 2006 Kentish Flats 3 MW/Vestas 30 90 October 2005 Scroby Sands 2 MW/Vestas 30 60 March 2004 North Hoyle 2 MW/Vestas 30 60 December 2003 Blyth Offshore 2 MW/Vestas 2 3.8 December 2000 are also some community wind farms in will yield good returns through an expan- the UK. One of these was completed in sion of the core business while reducing ex- 2008—the five-turbine Westmill wind farm posure to penalty payments. Onshore wind (Figure 9). Westmill is the first onshore energy has found particular favor because of wind farm to be built in the southeast of its economics, maturity, and ability to deliv- England and is 100% community owned. er relatively quickly. In the future, offshore The Renewables Obligation has greatly wind, biomass generation, and technologies increased the development of wind projects, further from commercial deployment (for with utilities, generators of conventional example, wave and tidal) will be advantaged power, and new developers active in the by the introduction of banding. market. Because of the high value the RO During the current financial recession, places on renewables, corporate investment project financing has generally been very

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Figure 7 UK capacity approved but not yet under construction at end of 2008.

Figure 8 All UK-approved projects to end 2008. difficult. In some cases, particularly in the offshore. The higher capital expenditure offshore market, this has led to companies costs of offshore are due to the increase in withdrawing from projects. This has often size of structures and the logistics of install- resulted from changes in ownership rather ing the turbines at sea. The costs of founda- than the project not being taken forward. tions, construction, installations, and grid The present-day costs of installing wind connection are significantly higher offshore energy in the UK are between 1000 £/ than onshore. Typically, for example, off- kW and 1,500 £/kW onshore, rising to shore turbines are 20% more expensive, and between 2,000 £/kW and 3,000 £/kW towers and foundations offshore can cost

278 2008 Annual Report United Kingdom more than 2.5 times the price for a project 4.0 National Incentive Programs of similar size onshore. The government is eager to encourage the Indications of power purchase prices development of wind generation in the UK come from published auction prices and and has created several incentives, either trading prices from renewable energy certif- through legislation or other means. The icates. Currently, the Non–Fossil Fuel Pur- measures introduced and some of the key chasing Agency Ltd. (NFPA) conducts bian- issues faced are detailed in this section. nual green power auctions. These auctions are for electrical output that will be pro- 4.1 Energy Act duced by NFFO (Non–Fossil Fuel Obliga- The Energy Act 2008 received Royal As- tion) generators during a six-month period sent on 26 November 2008. It implements (starting 1 April or 1 October) following the legislative aspects of the Energy White the end of the auction. These auction prices Paper published in May 2007; its principal are for electrical output, together with objective is to make the legislative frame- (depending on the generation technology) work more appropriate for today’s energy Climate Change Levy Exemption Certifi- markets. Aspects of the Energy Act that are cates (LECs) and Renewables Obligation expected to affect UK wind energy projects Certificates (ROCs). In the NFFO power include the following: auction in February 2009, the price for • A reform of the Renewables Obliga- wind was 92 £/MWh. This is a significant tion, the principal fiscal incentive for decrease from the peak of 136.9 £/MWh renewable electricity generation in in August 2008. In February 2008, the price the UK. The act aims to increase the was 106 £/MWh. In January 2009, ROCs effectiveness of the RO by allowing cost 51.81 £/MWh. This is a decrease from different levels of support to different the peak of 53.27 £/MWh in July 2008. In renewable technologies under the RO January 2008, the price was 49.95 £/MWh.

Figure 9 Construction of the Westmill wind farm, Oxfordshire, England. Photo by Martin Phelps of Westmill Wind Farm Co-operative.

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scheme through banding (see Section targets and carbon budgets for all areas 4.4 for more detail on this). of the UK economy, including elec- • The provision for a system of feed-in tricity generation. The act requires the tariffs to be introduced for small-scale UK government to reduce the net UK renewable generators (e.g., small-scale carbon account for the year 2050 to at wind turbines) up to a maximum to- least 80% below the level of net UK tal capacity of 5 MW, to incentivize emissions of targeted greenhouse gases households, businesses, and commu- in 1990. Since currently two-thirds of nity groups to generate low-carbon UK emissions originate from the use electricity. The government intends to of energy, this will act as a driver for consult in summer 2009 on the detail large-scale adoption of low-carbon en- of a feed-in tariff mechanism and is ergy sources, such as wind generation, aiming to introduce the new mecha- over the next forty years. nism in 2010. • Additional powers to enable the Of- 4.3 Planning Act (England and Wales) fice of Gas and Electricity Markets The Planning Act 2008 received Royal (Ofgem) to run effective competitive Assent on 26 November 2008. The act in- offshore transmission tenders and re- troduces several reforms to the town and cover their costs. This is designed to country planning system in England along ensure that the most economic and with a new integrated planning system for efficient transmission solution is en- major infrastructure—including large-scale couraged to facilitate the expansion of renewable energy generation projects in offshore renewables. England and Wales. The new system is de- • Strengthening of the statutory designed to improve and streamline the plan- commissioning scheme for offshore ning process to reduce uncertainty, time, energy installations, including offshore and cost while retaining public involve- wind turbines, as part of the offshore ment and accountability. licensing regime. The act establishes the Infrastructure Planning Commission (IPC), an indepen- 4.2 Climate Change Act dent body responsible for applications for The Climate Change Act 2008 received development consent for nationally signifi- Royal Assent on 26 November 2008, mak- cant infrastructure projects. (For electricity ing the UK government the first in the generation, this means schemes with an in- world to introduce legally binding long- stalled capacity of greater than 50 MW on- term objectives to tackle climate change. shore and greater than 100 MW offshore.) The act includes the following elements: The IPC will be guided by National Policy • The creation of the Climate Change Statements (NPSs). These will be prepared Committee (CCC), an independent for each category of infrastructure that the advisory body on climate change Planning Act defines as nationally signifi- consisting of experts in the field. The cant. It is expected that there will be an CCC will advise the UK govern- overarching NPS for energy infrastructure ment on reducing emissions across the and a specific NPS for renewable energy. economy, adaptation strategies, and By rationalizing the planning regime for setting targets for emissions reductions major infrastructure projects in this way, the over time. CCC members will also UK government aims to reduce the time report independently on progress made between application and decision to less toward targets. than a year in most cases. • A formal system for setting medium- The UK government launched a con- and long-term emissions reduction sultation on the list of statutory consultees

280 2008 Annual Report United Kingdom for NPSs in January 2009 which closes in proportion of their electricity from renew- April 2009. The government has also pub- able sources or pay a buyout price. lished its “Route Map to IPC Implemen- To make the RO more efficient and tation” which establishes a timetable that effective, the government is introducing requires the IPC to begin making decisions several reforms. The RO Order is expected in 2010. to get EU approval for state aids such that it can be implemented on 1 April 2009. 4.4 Planning in Scotland The new RO Order will accomplish the The planning system in Scotland differs following: from that of England and Wales. In Scot- • Band the RO to provide more sup- land, the planning system for large renew- port to technologies that are currently able energy projects is also being reformed further from commercial deployment. (17, 18). The Scottish government recogniz- • Introduce mechanisms to protect es that steps are urgently needed to stream- investments made in renewables line the consenting process. The Scottish generation. government now has the objective of • Change the RO to make it easier for determining new applications within nine microgenerators to access it. months where there is no public inquiry. In December 2008, a draft of Scotland’s These proposals are now set out in the second National Planning Framework draft Renewables Obligation Order, which (NPF) was laid before Scottish Parliament went before parliament in March 2009. for consideration. The NPF is concerned The UK government and the Devolved with Scotland’s development over the next Administrations understand the benefits 25 years and the actions needed to bring of a consistent approach across the UK about that development. The draft NPF sets and the importance of this matter to many out the following issues: within industry. Separate Renewables Obli- • The Scottish government’s commit- gation Orders were made for Scotland and ment to develop Scotland’s renewable Northern Ireland so that the changes came energy potential. into effect on 1 April on a UK-wide basis. • A different planning process for Under a banded RO, onshore wind projects deemed to be of national will continue to receive 1 ROC/MWh, significance. and offshore wind will receive 1.5 ROC/ • The potential for development of a MWh. This change acknowledges the extra subsea transmission grid. difficulties, risks, and costs involved in offshore wind development as compared with The Scottish Parliament is currently re- onshore wind development. Since its in- viewing the draft, with the aim of publish- troduction in 2002, the RO has succeeded ing the final document in spring 2009. in almost tripling the level of renewable electricity (from 1.8% of total UK supply 4.5 The Renewables Obligation to 4.9% in 2007). The changes being intro- The Renewables Obligation (19) is the duced are designed to make the RO more government’s chief incentive mechanism for successful still. A banded RO is expected to renewable electricity generation in the UK. deliver approximately 13.4% of electricity Also, working in support of other policy from renewable sources by 2015/2016. measures such as the EU Emissions Trading The Chancellor’s Pre-Budget Report System, it is an important part of the gov- announced on 24 November 2008 that the ernment’s program for securing reductions Renewables Obligation was to be extended in carbon dioxide emissions. It requires from its current end date of 2027 to at least electricity suppliers to source an increasing 2037. The announcement has been widely

IEA Wind 281 National Activities welcomed and will allow investors to plan incentives to develop emerging renew- for the short to medium term. Indeed, this ables technologies. extension means that almost all renewables projects going through planning will It is expected that the key growth area benefit from the RO support mechanism will be wind power, both onshore and off- throughout the entirety of their proposed shore. One scenario in the consultation was life spans. that by 2020, offshore wind capacity could be ~14 GW, compared with less than 1 GW 4.6 The Renewable Energy today. This would require the installation of Strategy consultation a further 3,000 offshore turbines, rated at In the Renewable Energy Strategy con- 5 MW. Initial government models indicate sultation, the government consulted on a that ~13 GW of onshore wind generation range of possible measures to deliver the capacity will be required by 2020, as com- proposed UK share of the EU’s renewable pared with 2.7 GW in February 2009. This energy target (of 20% of energy by 2020). equates to approximately 4,300 onshore The consultation (20) ran from 26 June to turbines rated at 3 MW. It is expected that 26 September 2008 and sought views on a large proportion of this onshore wind de- how to increase the use of renewable en- velopment will take place in Scotland. ergy in the UK as part of the overall strategy for tackling climate change. Responses 4.7 Addressing aviation issues to this consultation helped to shape the Current-generation wind turbines have UK Renewable Energy Strategy, which was very large radar signatures, and can have published in late spring 2009 after the final significant impacts on civilian and military shares of the EU target had been agreed by aviation radar systems. Therefore, wind en- member states. Renewable Energy Strategy ergy developments must take into account consultation proposals relevant to wind national air defense and air safety. To inves- power generation included the following: tigate the issue and improve understand- • Creating additional financial incen- ing between the aviation and wind energy tives for electricity by extending and industries, BERR (now DECC) set up the raising the level of the RO for large- Wind Energy, Defence and Civil Aviation scale electricity and using either feed- Interests Working Group. The Working in tariffs or enhanced RO for micro Group, includes representatives from UK generation. military and civilian aviation authorities, the • Removing grid barriers to renewables BWEA, and the UK government. by providing new incentives for Na- In 2008, the Working Group produced tional Grid to build grid infrastructure the Aviation Plan, which coordinates activi- and by reforming access arrangements. ties to identify, develop, and deliver mitiga- • Reducing planning consent bar- tion solutions. The plan allows stakehold- riers by providing strong guidance ers to monitor progress of the delivery of and training to local decision makers solutions by presenting details of the key through a National Policy Statement, programs, including studies on air defense creating an expert body to advise plan- radar, air traffic control, radar interference ners and setting regional renewables reduction, and stakeholder consultations. To targets that shape local economic ensure the success of the plan, several stake- strategies. holder groups signed a Memorandum of • Stimulating innovation and the sup- Understanding, published in June 2008, to ply chain by setting a clear, long-term commit to fully implementing the Aviation framework and considering how ef- Plan and its approach. forts to meet the 2020 target will affect To ensure the delivery of the Avia- tion Plan, an Aviation Management Board

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(AMB) has been established with overall constitutes the contractual framework for responsibility for the success of the plan. connection to and use of National Grid’s This is supported by a panel of experts, the high-voltage transmission system. Na- Aviation Advisory Panel (AAP). The role tional Grid leads a series of CUSC Work- of the AAP is to provide the AMB with ing Groups, which are developing CUSC information and advice on the progress of Amendment Proposals (CAPs). These the Aviation Plan and its associated work amendments are intended to improve access streams. Both of these groups had their in- arrangements that facilitate the anticipated augural meetings in July 2008. connection of large volumes of generation In addition, a financial management whilst maintaining an efficient and reliable board has also been established to ensure network. CAPs relating to short-term ac- that the work streams will have appropriate cess modifications aim to facilitate more financial support. Their inaugural meeting short-term connection to the transmis- was planned for March 2009. Full details sion system through changes to how access of the Working Group’s activities, meeting rights are granted. CAPs that address long- minutes, and documentation can be found term transmission access involve changing at http://www.berr.gov.uk/whatwedo/ the framework for agreeing and terminating energy/sources/renewables/planning/on- long-term connection agreements. shore-wind/aeronautical/page18755.html. The CAPs require approval by Of- gem before they take effect; several were 4.8 Grid connection issues approved and implemented in 2008, and The Transmission Access Review (TAR), others will be considered in 2009. Ofgem led jointly by DECC and Ofgem, has ex- delivered a progress report to the Secretary amined the technical, commercial, and reg- of State at the end of December 2008 stat- ulatory frameworks for the National Grid ing that it was satisfied with progress and to ensure that they remain fit for purpose would continue to work with National as the proportion of renewable generation Grid to agree on further amendments. The on the system grows. The final report of the UK government views the development of TAR was published on 26 June 2008 (21). offshore wind generation as a major con- Taken together, the measures set out in the tributor to meeting the 2020 renewable TAR final report will remove or signifi- generation target. At present, there is little cantly reduce grid-related access barriers to electricity network infrastructure installed renewable generation. The report recom- offshore; DECC and Ofgem are working mends actions that will allow faster con- together to develop a new regulatory re- nection of some renewable generation to gime for offshore electricity transmission so the grid in the short term; introduce new, that significant amounts of renewable off- enduring grid access arrangements that will shore generation can be connected to the allow faster connection and expansion of onshore grid in a cost-effective way. grid capacity; and identify the new trans- DECC and Ofgem have been consult- mission infrastructure necessary to meet ing on the design and implementation of the UK share of the 2020 EU renewable the new regime. Several consultations and energy targets and new financial incentives stakeholder communication events took on transmission companies to deliver that place in 2008 (22). The final consultation infrastructure. on the full package of proposals for the off- To facilitate faster connection to the shore transmission regulatory regime will grid, National Grid is proposing changes be published in 2009. to the contractual system for transmission The UK government has decided that access. The Connection and Use of System offshore transmission owner (OFTO) li- Code (CUSC) is the legal document that censes will be granted via competitive tenders run by Ofgem. Companies will bid a

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20-year revenue stream to design and build None of the Round 2 projects are yet op- (where appropriate), finance, and maintain erational, although work on the 64-MW the transmission assets connecting each Gunfleet Sands II wind farm has started and offshore generation project to the onshore should be fully operational in 2010. grid. The government believes this com- Proposals for Round 3 of offshore petitive approach will deliver significant wind farm leasing were announced on efficiencies and attract new players and in- 4 June 2008 by The Crown Estate (23). novation to the market. The first tenders are In Round 3, The Crown Estate is taking expected in the summer of 2009 so that ex- a more prominent role and will coinvest isting projects will have an OFTO in place with developers, combining the technical when the new regime comes into force in experience of the offshore wind industry June 2010. with efficiencies generated by The Crown Estate’s access to resources and stakeholders. 4.9 Offshore wind The key principle underlying the first two Of the marine renewable energy genera- rounds of offshore wind farm development tion technologies, only offshore wind is was a robust process for selecting parties to presently commercially viable, although develop, construct, finance, and operate des- other marine renewables technologies will ignated offshore wind projects. This is being eventually also contribute to the attain- carried forward into Round 3. ment renewable energy goals. Under The The Crown Estate’s role in Round 3 Crown Estate Act 1961, The Crown Estate will revolve around program delivery and is landowner of the UK seabed out to the zonal contract management; the partners limit of the territorial sea and areas of fore- will work with The Crown Estate to iden- shore (www.thecrownestate.co.uk). The tify suitable wind farm sites in each zone Crown Estate’s permission in the form of a and thereafter address delivery of specific site option agreement and lease or license sites. The Crown Estate will not be in- is required for the placement of structures volved in building or operating wind farm or cables on the seabed. This includes off- sites. During 2008, significant progress was shore wind farms and their ancillary cables made toward agreeing Round 3 leases. The and other marine facilities. The Energy Act Crown Estate has mapped potential zones 2004 gave The Crown Estate rights to issue suitable for wind farm development against licenses within Renewable Energy Zones other activities that are undertaken on its from 12 nautical miles (nm) out to 200 nm Marine Estate. In August 2008, organiza- for development. tions were invited to submit expressions of Round 1 of offshore wind farm leas- interest. Ninety-six UK and international ing was supported by the government us- companies registered their interest during ing the Capital Grants Programme, which Round 3, greatly exceeding expectations. In covered approximately 10% of project September 2008, The Crown Estate issued capital costs. The first phase of the develop- an invitation to negotiate to parties selected ment of offshore wind projects in the UK following their submission of an expression was launched in December 2000 and has of interest. Potential developers that regis- resulted in 14 projects, of which 7 are now tered interest were invited to bid for one or operational. more of nine development zones identified During Round 2, 15 projects, with by The Crown Estate. The timetable for a combined capacity of up to 7.2 GW, Round 3 is as follows: received leases to operate offshore wind • 2009 (Q1)—Submission of bids farms. These projects are all at varying stages • 2009 (Q4)—Completion of awards of development, either progressing through to zone partners the planning system or under construction. • 2010 to 2013—Phase 3 (consents and contracts)

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• 2014—Phase 4 (construction) for licensing for offshore oil and gas, • 2018—Phase 5 (operation) including gas storage, and leasing for offshore wind. This includes consider- In 2007, The Crown Estate under- ation of the implications of alternatives took a feasibility assessment of transmitting to the plan/program and the potential electricity through offshore transmission spatial interactions with other users of systems. The study concluded that the ac- the sea. tivity was technically feasible and offered • Inform the UK government’s deci- commercial possibilities. As a result, a more sions on the draft plan/program. detailed investigative study has been un- • Provide routes for public and stake- dertaken to examine the potential require- holder participation in the process. ments for offshore transmission connections for Round 3 wind farms. In April 2008, The SEA considered the alternatives to The Crown Estate commissioned a study the draft plan/program and the potential (24) into the potential requirement for off- environmental implications of the resultant shore transmission connections for Round activities in the following contexts: 3 wind farms and connecting up to 25 GW • Objectives of the draft plan/program of additional wind generation. The report’s • SEA objectives observations and recommendations includ- • Existing regulatory and other control ed the following: mechanisms • The extent of constraints on the sup- • Wider policy and environmental pro- ply chain may affect delivery of the tection objectives Round 3 connections. • Current state of the environment and • The power transfer capacity of its likely evolution over time HVAC and high-voltage direct-cur- • Existing environmental problems. rent (HVDC) technologies should be raised to improve economies of scale. To attain the 25-GW objective of the • “No regret” onshore reinforcement draft plan/program, several thousand wind options should and can be progressed turbines would be needed which, depend- immediately to provide the neces- ing on turbine spacing and wind farm sary transmission capacity in a timely separation, may occupy up to 10,000 km2. manner. Development on this scale may result in significant environmental effects on areas or The Crown Estate believes there is a landscapes of recognized national, European case for commencing onshore reinforce- Community, or international protection ments ahead of connection applications. status, as well as on other uses of the sea. It understands that a coordinated plan and The conclusion of the SEA Environmental commitment are needed to give the sup- Report is that restricting the areas offered ply chain the confidence it needs to invest spatially through the exclusion of certain in infrastructure to support transmission areas is the preferred option. The report development. concludes that no overriding environmental On 5 January 2009, BERR (now considerations will prevent achievement DECC) published its Offshore Energy Stra- of the offshore oil and gas, gas storage, and tegic Environmental Assessment (SEA) En- wind elements of the plan/program—as- vironmental Report for public consultation, suming implementation of several mitiga- closing on 22 April 2009 (25). This SEA tion measures to prevent, reduce, and offset was intended to accomplish the following: significant adverse impacts on the environ- • Consider the environmental im- ment and other users of the sea. plications of a draft plan/program On 16 February 2009, The Crown Estate announced it would be offering

IEA Wind 285 National Activities exclusivity agreements to companies and wind R&D. In 2008, TSB spent approxi- consortia for 10 sites for development of mately 650,000 £ on the wind program to offshore wind farms in Scottish territorial support R, D&D projects (Table 4). These waters (26). projects are at various stages of the project cycle from inception to completion. 5.0 R, D&D Activities During 2008, one new project joined To accelerate development of both onshore the TSB wind program. The in-situ wire- and offshore wind energy, the UK govern- less monitoring of offshore wind towers ment provides funding for research and and blades project aims to develop a system development projects in partnership with to monitor blades and support structures industry. It does this through two bodies: for offshore wind generators. The data will • The Technology Strategy Board be transmitted and the system controlled (TSB) by wireless communication with the shore • The Energy Technologies Institute base. This system could drastically reduce (ETI). the cost of offshore wind turbine inspection whilst increasing reliability. 5.1 Technology Strategy Board (TSB) The TSB (27), sponsored by the Depart- 5.2 Energy Technologies Institute ment for Innovation, Universities and Skills, The ETI (28) is a 50:50 partnership be- was established as an executive body at tween government and industry, with some arm’s length from government in 2007. It of the world’s largest energy and engineer- supports businesses conducting research and ing firms involved. The institute will spear- development in certain technology areas in head the collaborative development of new the form of match-funded grants. As well as commercially viable, sustainable low-carbon investing in programs and projects, much of energy technologies to provide a secure, its work is in spreading knowledge, under- sustainable, and affordable energy supply for standing policy, spotting opportunities, and this and future generations. BERR (now bringing people together to solve problems DECC) has announced that it is prepared or make new advances. The TSB’s vision is to authorize matched public funding of up for the UK to be seen as a global leader in to 550 million £, creating the potential for innovation and a magnet for technology- a 1.1-billion-£ institute over 10 years. intensive companies, where new technology The ETI sees offshore wind in particu- is applied rapidly and effectively to create lar as a strategic priority. To support increas- wealth. The TSB’s priorities for R, D&D in ing levels of deployment in line with the wind energy include the following: government’s ambition, the initiative has • Projects that seek to reduce cost of the following goals for 2020: the turbines themselves or of offshore • Reduced costs: cost of energy to be foundations, installation, or operations reduced to the prevailing least-cost and maintenance. wholesale price of electricity, or lower. • Projects that seek to mitigate the in- • Increased yields: annual farm avail- teraction between wind turbines and ability to be increased to 97% to 98% radar, which is at present a key barrier or better, equivalent to onshore wind to wind development both onshore today. and offshore. • Reduced risks: reduction in technical uncertainties to allow farms to be The TSB had no new calls for wind- financed in a manner, and at costs, related projects in 2008, as this area of equivalent to onshore wind today. R&D is now supported under the Energy Technologies Institute. However, the TSB The ETI issued a call for projects to continues to support existing projects in form part of its Offshore Wind and Marine

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Table 4 Wind Research Projects with TSB Support Project name Start date Initial end date* Stealth technology for wind November 2005 December 2007 turbines Deepwater offshore wind September 2004 March 2009 farm demonstrator project A low-cost safety-critical November 2006 March 2009 radar-absorbing material for wind turbine nacelles and towers Stealthy wind turbines—ad- November 2005 August 2009 dressing the radar issue Development of an innovative March 2008 January 2010 radar absorbing composite structure for wind turbine blades Cost-effective manufacture of June 2008 May 2010 offshore wind turbine foundations Affordable innovative rapid February 2007 September 2010 production of offshore wind energy rotor blades Innovative high-power direct- December 2005 October 2010 drive superconducting generator for offshore wind In-situ wireless monitoring June 2008 May 2011 of offshore wind towers and blades * Due to the nature of these projects, it is likely that the project end dates will change.

Energy Programmes in December 2007. Project Nova is a UK-based consor- More than 130 expressions of interest were tium led by Guildford energy specialists received for the Offshore Wind Programme OTM Consulting that includes representa- for a range of projects involving research, tives from three universities—Cranfield, development, and demonstration activities. Strathclyde, and Sheffield; the Centre for On 13 January 2009, the ETI announced Environment, Fisheries and Aquaculture funding for its first four projects. Three are (CEFAS); and SME Wind Power. Key sub- related to offshore wind turbine technology, contractors include James Ingram Associ- and one is related to tidal stream turbine ates and QinetiQ. The project will assess technology. The three projects in the Wind the feasibility of a unique wind turbine Energy Programme will receive ETI fund- with a pair of giant vertical wings, which ing totaling approximately 10 million £. has the benefit of ruggedness, stability, and The project consortiums have begun to simpler maintenance access when com- mobilize with the aim of completion by pared with the horizontal-axis concept of April 2010. conventional turbines.

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Project Helm Wind is a UK-based References: consortium led by E.ON Engineering that UK renewable energy statistics can includes representatives from Rolls-Royce, be found at the web site for Department BP Alternative Energy, and the University for Business, Enterprise and Regulatory of Strathclyde. The project aims to deliver Reform (BERR), which is now part of a concept design and feasibility study for DECC, the Department for Energy and a new offshore-specific wind farm and Climate Change: seeks to overcome the issues facing today’s http://www.berr.gov.uk/whatwedo/ systems including turbine reliability and ac- energy/statistics/source/renewables/ cessing equipment for maintenance. page18513.html. Project Deepwater Turbine is led by Blue H Technologies with representatives (1) Digest of UK Energy Statistics from UK groups including BAE Systems, (DUKES) 2008, Table 1.1, Aggregate Ener- CEFAS, EDF Energy, Romax, and SLP gy Balance 2007. http://www.berr.gov.uk/ Energy. The project aims to design and de- whatwedo/energy/statistics/publications/ termine the feasibility and potential of an dukes/page45537.html. integrated solution for a 5-MW floating (2) DUKES 2008, Table 5.4. offshore wind turbine for deep-water de- (3) DUKES 2008, Table 7.6. ployments between 30 and 300 meters. (4) DUKES 2008, Table 7.1.1, Renew- Further support for wind is expected able Sources Used to Generate Electricity. via several new mechanisms in 2009. The (5) Department for Business, Enterprise Environmental Transformation Fund for and Regulatory Reform (BERR), Energy Low Carbon Technologies (29) formally Consumption in the UK 2008, Table 1.1. began operation on 1 April 2008. On 26 (6) Department of Energy and Climate June 2008, John Hutton announced his in- Change (DECC). Energy Trends, December tention to launch an Offshore Wind Tech- 2008. Tables 4.1 and 3.1, http://www.berr. nology capital grants competition, support- gov.uk/files/file49202.pdf. ing the demonstration of next-generation (7) BERR. UK Energy in Brief, technology for offshore wind. The UK July 2008. http://www.berr.gov.uk/files/ Energy Research Council is expected to file46983.pdf announce that it will develop a technol- (8) DECC. Energy Trends, December ogy road map for offshore wind in 2009. 2008, Table 4.1. The Carbon Trust has announced that it (9) Estimated from DUKES and British will launch an Offshore Wind Accelerator Wind Energy Association (BWEA). program, with the aim of reducing offshore (10) According to BWEA. wind costs, in 2009. (11) DUKES 2008, Table 7.1.1, Renewable Sources Used to Generate 6.0 The Next Term Electricity. The UK Renewable Energy Strategy is (12) DUKES 2008, Table 7.1.1 Renew- scheduled to be published in late spring able Sources Used to Generate Electricity; 2009 following agreement in March 2009 Energy Consumption in the UK2008, Table about the UK’s share of the EU renewable 1.5, Final Energy Consumption by Fuel energy target. The UK RE national action 1970 to 2007. plan, which will set out how the UK will (13) Ed Milliband statement to House meet its target, will be published later in of Commons, 16 October 2008. 2009. (14) http://www.berr.gov.uk/energy/ sources/renewables.

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(15) UK Wind Energy Database.http:// (23) http://www.crownestate.co.uk/ www.bwea.com/ukwed/index.asp, last vis- round3. ited 16 February 2009. (24) http://www.thecrownestate.co.uk/ (16) Supply chain constraints on the round3_connection_study.pdf. deployment of renewable electricity tech- (25) Strategic Environmental Assess- nologies.URN08/1015 http://berr.ec- ment. http://www.offshore-sea.org.uk/ group.net/Search.aspx. consultations/Offshore_Energy_SEA/in- (17) Making Scotland a Leader in dex.php. Green Energy. http://www.scotland.gov. (26) http://www.thecrownestate.co.uk/ uk/Publications/2008/11/05115324/11. newscontent/92-scottish-offshore-wind- (18) http://www.scotland.gov.uk/ farm-awards.htm. Topics/Built-Environment/planning/ (27) Technology Strategy Board. http:// National-Planning-Policy/themes/npf#a2. www.innovateuk.org/. (19) BERR. http://www.berr.gov.uk/ (28) Energy Technologies Institute. energy/sources/renewables/policy/renew- http://www.energytechnologies.co.uk. ables-obligation/page15630.html. (29) http://www.berr.gov.uk/energy/ (20) http://renewableconsultation.berr. environment/etf/page41652.html. gov.uk. (21) Ofgem. Transmission Access Authors: Iain Campbell, Matthew Mor- Review. http://www.ofgem.gov.uk/Net- ris, and Fiona Brocklehurst, AEA, United works/Trans/ElecTransPolicy/tar/Pages/ Kingdom. Traccrw.aspx. (22) http://www.berr.gov.uk/whatwedo/energy/sources/renewables/policy/ offshore-transmission/page28604.html.

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290 2008 Annual Report Chapter 31 1.0 Introduction During 2008, the United States added United States more than 8,500 MW of wind energy capacity, becoming the world’s largest wind energy generator (Table 1). The total U.S. stimulus bill signed in early 2009 could help wind generation capacity increased by 50% the industry. to 25,369 MW (1), which will produce The industry for small wind turbines enough electricity to power approximately (defined as having a capacity rating of 100 seven million U.S. households. Wind energy kW or less) also experienced record-break- projects completed in 2008 accounted for ing growth in 2008. According to AWEA, approximately 42% of the nation’s new the small wind turbine industry grew by generating capacity for the year and an 78% in 2008, adding 17.3 MW of new ca- investment of 16.4 billion USD, according pacity, which brought the total small wind to the American Wind Energy Association capacity up to more than 80 MW. More (AWEA). Generation from these projects than 10,000 units were sold. The United over their lifetime will avoid nearly 44 mil- States claimed about 50% of the global mar- lion tons of carbon emissions—the equiva- ket share and is home to about one-third of lent of taking more than seven million cars the 219 identified manufacturers worldwide. off the road. More than 100 new wind projects 2.0 Progress Toward larger than 2 MW were installed in 25 states National Objectives and resulted in nearly 5,000 turbines being Renewable energy in general and wind en- commissioned in 2008. The average size of ergy in particular have been an integral part the turbines installed in 2008 was 1.67 MW, of economic legislation and policy in late a slight increase from the 1.65 MW in 2007. 2008 and early 2009. In October 2008, the More than half of the turbines were 1.5 Emergency Economic Stabilization Act of MW and the largest turbines were 3 MW. 2008 (P.L. 110-343) renewed the production The average project size was about 70 MW. tax credit (PTC) for wind energy (2). In The world’s largest operating wind plant is February 2009, the American Recovery and the 735-MW Horse Hollow facility that Reinvestment Act of 2009 further extended covers 47,000 acres (190 km²) in Texas. the PTC for wind energy to 31 December More than 5,000 MW of new capacity 2012 (3 and 4). Specific provisions are dis- could be commissioned in 2009, according cussed in Section 4.0.The New Energy for to industry predictions. However, due to the America plan put forth by President Obama economic climate and especially difficulties (5) contains policies that support investment with financing, the level of activity in 2009 in alternative and renewable energy tech- is uncertain. Provisions of the American nologies that are intended to end U.S. de- Recovery and Reinvestment Act economic pendence on foreign oil, address the global

Table 1 Key Statistics 2008: United States Total installed wind generation 25,369 MW New wind generation installed 8,558 MW Total electrical output from wind 71 TWh Wind generation as % of national electric demand 1.9% Target: 10% of U.S. electricity from renewables by 2012, and 25% by 2025

IEA Wind 291 National Activities climate crisis, and create millions of new jobs Many states have renewable energy tar- in the green energy sector. One goal of the gets and made efforts in 2008 to promote plan is to ensure that 10% of U.S. electricity wind energy development. For example, the comes from renewable sources by 2012 and California governor issued executive orders 25% by 2025. streamlining the state’s approval process for A report published by the U.S. Depart- renewable energy projects and increased ment of Energy (DOE) in 2008, examined the proportion of renewable generation re- the potential for wind energy to provide quired of utilities to 33% by 2020. The gov- 20% of U.S. electricity by 2030. Wind en- ernor of New Jersey called for 30% of the ergy currently provides 1.9% of U.S. elec- state’s electricity to come from renewables tricity (6). Wind capacity contributing 20% by 2020, with 3,000 MW to come from would support 500,000 jobs, reduce green offshore wind power. He projected that this house gas emissions equivalent to taking 140 energy development would create 20,000 million vehicles off the road, and save 4 tril- new jobs in the state. lion gallons of water. The report concluded Other supporters of wind energy are that reaching such capacity will require entering the public arena with proposals an increase from the current 25.5 GW to to increase installations. Oil developer T. more than 300 GW. To achieve this increase Boone Pickens launched the Pickens Plan by 2030, annual increases in wind capacity (7) that proposes increases in wind-generat- will need to exceed 16 GW after an initial ed electricity to save natural gas, which can 10-year ramp-up period. The 8.5-GW in- then be used as a transportation fuel. This, crease in 2008 is a significant step toward he argues, would allow the United States meeting this goal. to cut imported oil by one-third. Another However, as the 20% Report outlined, voice, Nobel Peace Prize recipient and there are many challenges to taking full former Vice President Al Gore, argues that advantage of this opportunity. The research it is necessary and possible to obtain 100% activities of the DOE Wind Program (Sec- of U.S. electricity from renewable energy tion 5) are designed to meet these challenges within 10 years. with efforts aimed at technology, resource assessment, and social acceptance issues. 3.0 Benefits to the National Economy In the near term, a goal of the DOE The new wind generating capacity installed Wind Program is for 30 of the 50 states to in 2008 represents an investment of about have more than 100 MW of generating ca- 17 billion USD, according to the AWEA. pacity by 2010. Industry records show that About 85,000 people were employed in by the close of 2008, 22 states had 100 MW the wind industry, up from 50,000 in 2007. or more of wind generation operating, and The share of components for wind systems 35 states had some wind plants operating made domestically has increased from less within their borders (Figure 1). The Mid- than one-third in 2005 to about half in western state of Iowa now has more installed 2008. In 2007 and 2008, manufacturers of capacity than California, and seven states turbines and components announced addi- have more than 1,000 MW of generating tions to or expansions of 70 facilities, which capacity: created an estimated 8,400 new jobs in 2008 alone. • Texas: 7,118 MW • Iowa: 2,791 MW 3.1 Market characteristics • California: 2,517 MW Independent power producers still owned • Minnesota: 1,754 MW the bulk of U.S. wind energy generation at • Washington: 1,447 MW the end of 2008, and six companies owned • Colorado: 1,068 MW more than 1,000 MW of wind energy assets • Oregon: 1,067 MW each: NexEra Energy Resources (formerly

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Figure 1 Wind power capacity installations by state (Source: AWEA Annual Wind Industry Report, 2008).

FPL Energy) owns 6,290 MW (approxi- By July 2008, the total capacity for com- mately 25% of the total U.S. capacity); munity owned projects was 736 MW. These Iberdrola Renewables owns 2,063 MW; projects use turbines over 50 kW in capac- MidAmerican Energy owns 1,939 MW; ity and are completely or partly owned by Horizon-EDP Renewables owns 1,872 towns, schools, commercial customers, or MW; Invenergy owns 1,276 MW; and Bab- farmers. cock & Brown Wind owns 1,118 MW (8). Utilities owned approximately 15% of the 3.2 Industrial development wind energy projects in 2008. General Electric Energy supplied the ma- Ownership patterns include the ten- jority of the turbines, 3,657 MW, purchased dency for dominant developers to buy proj- in the U.S. in 2008, followed by Vestas with ects developed by others and bring them 1,120 MW, Siemens with 791 MW, and Su- under central operation, maintenance, and zlon with 738 MW (Figure 2). New com- marketing structures. For example, Duke panies entering the U.S. market included Energy purchased the holdings of wind Acciona, AWE, Fuhrlander, and REPower. developer Catamount Energy Corp. with The manufacture of wind turbines in projects in both the United States and the the United States is increasing with the United Kingdom. With this acquisition, establishment of factories by major inter- Duke Energy Generation Services had national suppliers. Seven of the ten largest more than 500 MW of operating assets and suppliers of wind equipment— Acciona, 5,000 MW of wind energy under develop- Clipper, Gamesa, GE, Siemens, Suzlon, and ment in 12 states. Vestas—have manufacturing facilities in the The number of community-owned United States. Acciona, based in Madrid, projects is on the rise, according to Windus- completed a wind turbine manufacturing try, a nonprofit organization that supports facility in Iowa that employs more than 100 community ownership of wind projects. people. When the plant reaches full capacity,

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third-party information to help them compare products or estimate performance. To address this issue, the DOE Wind Program is funding and providing technical support for the formation of a Small Wind Certifi- cation Council (SWCC), an independent certification body for North America. The SWCC will certify small wind turbines that meet or exceed performance, durability, and safety requirements. The SWCC elected a board of directors in 2008 and will begin to certify turbines in late 2009. Some turbines submitted by manufacturers for certification will be tested in the United States at DOE’s National Renewable Energy Laboratory (NREL) National Wind Technology Center (NWTC) in Golden, Colorado; others may Figure 2 Top manufacturers contributing be tested in Canada at the Wind Energy In- to the U.S. market for large-scale wind stitute of Canada’s North Cape facility. The turbines. SWCC is currently developing protocols for certifying small wind turbine systems, including those not tested at accredited fa- it will supply approximately 2,610 MW of cilities. Certified turbines will be labeled for capacity per year. While wind power devel- rated power, rated annual energy produc- opment brought some foreign manufactur- tion, and rated sound level. ing to the United States, some licensing of Gaining local acceptance for wind en- U.S. technology also took place. American ergy projects is key to increasing generation Superconductor Corporation licensed its capacity. A decision in Washington State af- 1.65-MW and 2-MW wind turbine designs firmed a contested permit for a large wind to South Korea-based Hyundai Heavy In- energy project. The successful developers dustries Co., Ltd. for sale in the U.S. market conducted wildlife and habitat surveys, beginning in 2009. committed to post-construction moni- More than 100 companies now pro- toring, established a conservation reserve duce components for wind turbines, in- program to mitigate unavoidable impacts cluding towers, composite blades, bearings, to habitat, and altered project layout in and gears. Reflecting industry growth, response to local concerns. Such activities AWEA membership grew to more than earned the support of local citizens and 1,800 companies in 2008 from 600 in 2005. state and regional environmental organiza- Most of the new members are companies tions. Nationally, wind energy companies in the wind power supply chain. Figure and environmental groups created the 3 shows the distribution of wind energy American Wind Wildlife Institute to facili- manufacturing facilities across the country. tate timely and responsible development of Production of small wind turbines is wind energy while protecting wildlife and also a significant economic activity ac- wildlife habitats. cording to AWEA’s 2008 Small Wind Turbine Global Market Report (8). With 3.3 Economic details the increasing number of small turbines Although wind energy project costs are in- entering the market, consumers are ques- fluenced by many factors, turbine costs are tioning product safety and quality. Consum- the largest contributor. According to DOE’s ers buying small wind turbines have no Annual Report on U.S. Wind Energy

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Figure 3 Manufacturing for wind energy development is distributed across the United States. Source: National Renewable Energy Laboratory.

Markets (9), between 2006 and 2008, Despite rising turbine costs, the cost capacity-weighted average turbine prices of electricity from wind energy is still increased by roughly 210 USD/kW—from competitive with that generated by con- 1,150 USD/kW to 1,360 USD/kW—and ventional sources in many areas. A database project costs have increased on average by of wind power sales prices maintained by roughly 350 USD/kW during the past DOE contains price data for 158 wind several years (Figure 4). This cost increase projects installed since 1998 (9). The capac- is driven by increasing commodities prices, ity-weighted average (projects are weighted unfavorable exchange rates, and fully com- by nameplate capacity to represent actual mitted production capacities. market prices) sales price for projects built

Figure 4 Wind project capital costs, 1982–2008.

IEA Wind 295 National Activities in 2008 was roughly 51.5 USD/MWh, up solar projects have been treated in the U.S. from a low of 30.9 USD/MWh for projects tax code. Businesses and home owners are built in 2002 to 2003. This price is what the also allowed to claim the full 30% ITC utility pays to the wind plant operator and for qualified small wind energy property includes the benefit of the federal produc- with no dollar cap on the credit. To further tion tax credit and state incentives. stimulate industrial development, the law also includes a new 30% credit for invest- 4.0 National Incentive Programs ment in new or re-equipped manufacturing Federal tax incentives and state renewable for wind energy equipment. Several grant portfolio standards (RPS) played impor- programs were also included that will be tant roles in the record growth of 2007 funded depending on the evolving eco- and 2008. In most of 2008, uncertainty nomic priorities of the government. The about the extension of federal tax credits legislation also authorized extension of the prompted completion of planned projects Loan Guarantee Program for eligible “com- but may also have caused delays in starting mercial” technologies such as wind. new projects. In October 2008, Congress The inflation-adjusted value of the approved a one-year extension of federal PTC in 2008, was 0.021 USD/kWh for tax credits and added other provisions ben- wind energy. To be eligible for a PTC, eficial to wind energy development. Then projects had to be in service by the close of in February 2009, the federal incentives 2008. The PTC goes to the owner(s) of the were expanded and extended to 2012, pro- eligible renewable generating project, and viding a predictable and transparent support is reduced if projects also receive certain framework to attract investment. types of government grants, tax-exempt bonds, subsidized energy financing, or other 4.1 Federal incentive programs federal tax credits. Only projects located in The U.S. government provides research the United States that sell their output to and development funding (see Section an “unrelated person” may qualify for the 5.0) and tax incentives for energy sector PTC. The record-breaking increases in ca- development because of its importance to pacity in 2006, 2007, and 2008 are evidence society. The Emergency Economic Stabili- of the PTC’s effectiveness. zation Act of 2008 (P.L. 110-343) and the American Recovery and Reinvestment 4.2 State incentive programs Act of 2009 included important incentives The voluntary purchase of wind-generated for wind energy. The production tax credit electricity through green power or green (PTC) encourages investment in new wind pricing programs has significantly influ- plant construction by providing an income enced wind industry growth. According to tax credit based on electricity production an analysis conducted by the U.S. Depart- from wind projects. The investment tax ment of Energy, more than 850 utilities credit (ITC) allows 30% of the investment across the United States now offer green to be refunded in the form of reduced in- power programs. Green power sales in 2008 come taxes. ITC may also be taken in the increased by about 20% over 2007, and form of an upfront grant equivalent to 30% they represent more than 5% of total elec- of total project value. These tax incentives tricity sales for some of the most popular were extended to 31 December 2012. programs. By the end of 2008, more than With the 2009 legislation, wind facil- 600,000 utility customers participated in ity owners can claim the 30% ITC instead green power programs, which supported of the PTC if they choose. This provision approximately 5,000 MW of new renew- will allow facilities to be leased or subject able power capacity. Wind is the primary to a sale and leaseback without a loss of source of electricity generated for green the credit, treating wind projects the way energy programs nationwide.

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State-mandated RPS programs that efficiency) transmission lines are proposed, require utilities to purchase a percentage costing 60 billion USD. of their overall generating capacity from To improve grid access, planning and renewable resources also have a significant construction of multi-state, extra-high- effect on the wind industry. By the end voltage transmission lines is underway. One of 2008, 28 states had adopted RPS ap- of these is the Wyoming-Colorado Inter- proaches (10). In Missouri, voters approved tie Project, which will connect the Front a renewable electricity standard that re- Range of Colorado with the windy areas of quires 15% of the state’s electricity to come eastern Wyoming starting in 2013. Project from renewables by 2021. Hawaii increased sponsors auctioned 850 MW of capacity, its renewable electricity standard from 20% and wind developers subscribed for nearly to 40% by 2030. Wind energy is expected 70% of the transmission. In another effort, to contribute significantly to achieving two utilities announced plans to construct these goals. In 2008, state RPS policies col- a 150-mile, 345-kV transmission line to lectively called for utilities to procure about connect central Maine with future wind 23 billion kWh of new renewable energy projects estimated to be worth 1.6 billion generation. By 2010, RPS policies call for USD. Another project approved by the Tex- utilities to obtain around 58 billion kWh of as Public Utility Commission will use 4.9 new renewables, rising to 99 billion kWh in billion USD to build 2,300 miles of new 2012 (11). 345-kV lines to link potential wind devel- Green pricing above the standard elec- opment areas with load centers. This line tricity rate is one way utilities support their will make it possible to add 11,550 MW of purchases of electricity from wind and solar. wind to the more than 5,500 MW already The end-user price of green power for operating in Texas. residential customers in utility programs in 2008 ranged from 0.0101 USD/kWh to 4.4 Incentives for small wind 0.055 USD/kWh above standard electric- Many states also have policies and incen- ity rates, with an average premium of 0.014 tives for small wind electric systems. These USD/kWh and a median of 0.015 USD/ incentives include rebates and buy-downs, kWh. Generally, consumers spend about production incentives, tax incentives, and 5.10 USD per month above standard elec- net metering. Several states have adopted tricity rates for green power through utility buy-down programs that levy a small programs (12). charge on every kilowatt-hour of electricity Other state programs that provide sold. The money raised is used to buy down stimulus for market growth include: grant or subsidize the purchase of small renewable programs, loan programs, production incen- energy systems. The subsidy or rebate may tives, and utility resource planning. be as much as 50% of the cost of a small wind turbine. The rebates become even 4.3 Transmission policies more effective when combined with low- The need for increased grid access has interest loans and net metering programs. been proposed in a study by the investor- Under net metering policies, electric- owned utility American Electric Power and ity customers who install their own grid- AWEA. The study, which was referenced connected wind turbines are allowed to in- in the DOE report 20% Wind Energy by terconnect their turbines on a reverse-the- 2030: Increasing Wind Energy’s Contribu- meter basis with a periodic load offset. The tion to U.S. Electricity Supply, concluded customer is billed only for the net electric- that a transmission superhighway will be ity consumed over the entire billing period. needed for the United States to obtain In most states, generation beyond what the 20% of its electricity from wind. More customer uses during the billing period is than 19,000 miles of new 765-kV (high sold to the utility at avoided cost or granted

IEA Wind 297 National Activities back to the utility without payment to the gearboxes, generators, blades, and towers. customer. In 2008, 40 states and the District For blades, the partnership with the Iowa of Columbia offered some form of net me- Power Fund will work to speed up wind tering policy (10). turbine blade manufacturing by exploring technology innovation, such as automation. 5.0 R, D&D Activities Although some states support research ac- 5.1.2 Gearboxes tivities, most public research and develop- The industry has identified improving gear- ment on wind energy in the United States box reliability as an important way to re- is sponsored by the U.S. Department of duce costs of large wind turbines. Gearbox Energy, Office of Energy Efficiency and replacement and lubrication account for Renewable Energy, Wind and Hydropower 30% of the parts cost for the entire turbine Technologies Program (Wind Program). system. The DOE Wind Program initiated The mission of the Wind Program is to the wind turbine Gearbox Reliability Col- increase the development and deployment laborative (GRC) in 2006 to validate the of reliable, affordable, and environmentally design process, including everything from responsible wind and water power tech- calculating system loads, to rating bearings, nologies in order to realize the benefits of to testing full-size gearboxes. Instrumented domestic renewable energy production. The gearboxes will undergo dynamometer tests total budget for the DOE Wind Program and full-scale field tests with support from was close to 50 million USD for fiscal year facilities and expertise at NREL, Sandia, (FY) 2008 (1 October 2007 through 1 Oc- universities, and industry. In 2007, experts tober 2008). The budget approved for FY shared information on gearbox design and 2009 was 55 million USD. And the admin- performance at an international workshop istration has requessted 75 million USD for sponsored by DOE. In 2008, an inter- FY 2010. national team of analysts compared their predictions of gear tooth loads and bearing 5.1 Large wind turbine technology loads. Next they will compare these predic- The DOE Wind Program works to reduce tions with test data, improve design codes, the cost of electricity from large wind sys- and improve gearbox designs. The GRC tems through in-house research at national drivetrain and gearbox will be tested by laboratories and research contracts to uni- Wind Program researchers in NREL’s 2.5- versities and industry. Technology develop- MW dynamometer test facility. ment partnerships make program staff and In 2008, a new positioning system for testing facilities available to help improve the dynamometer table was installed to al- the reliability and performance of utility- low quick alignment of the drive shaft with scale wind energy technology. the drivetrain being tested, and researchers successfully tested several drivetrains. 5.1.1 Manufacturing Tests conducted on the DeWind 2.2-MW A new advanced manufacturing initiative drivetrain for Composite Technology Cor- by DOE’s Sandia National Laboratories poration’s D8.2 wind turbine demonstrated (Sandia), TPI Composites, Iowa State Uni- stable and satisfactory operation at power versity, and the Iowa Power Fund will work levels ranging from 250 kW to 2 MW. The to expand U.S.-based manufacturing and company worked with the Wind Program domestic suppliers to the wind industry. to test the machine before it was installed The work will target components that are on the company’s prototype turbine in difficult or expensive to inventory, result in Sweetwater, Texas. Another prototype downtime when waiting for replacements, drivetrain was tested for Global Energy or have high transportation costs, such as Concepts. The 1.5-MW single-stage permanent-magnet drivetrain was developed

298 2008 Annual Report United States under the DOE Wind PACT project and is obtained from CENER will be used to ac- available for new utility-scale wind turbine celerate the development of the program’s system designs. new blade test facilities in the United States.

5.1.3 Blades 5.1.4 Design codes and control systems Research on wind turbine blades aims to The AeroDyn code was developed by en- improve their efficiency and durability gineers at NREL and its subcontractors to while reducing manufacturing costs. Work analyze wind turbine performance, loads, supported by the Wind Program is demon- and stability. In 2008, 50 participants in an strating the advantages of advanced materi- AeroDyn workshop agreed that improve- als (carbon and carbon/glass hybrids) and ments to design codes could speed the is exploring resin transfer molding (RTM) advancement of wind power. The group and vacuum-assisted RTM manufactur- discussed ways to pool resources to expedite ing processes for utility-scale wind turbine the future development of AeroDyn. blades. This work also includes designing International collaboration is especially and fabricating advanced blades that incor- useful to address issues with design codes porate innovations such as carbon/e-glass and systems analysis. The DOE Wind Pro- hybrid materials and aeroelastic tailoring gram hosted an international workshop on methodologies. To validate process develop- the widely used TurbSim Code in 2008. ments and design modeling tools, the Wind TurbSim is a stochastic, full-field, turbu- Program is working with the U.S. Depart- lent wind simulator that is used with the ment of Agriculture to test substructures and small blades in Bushland, Texas. To verify the performance of new blade designs and materials, the Wind Program worked with several industry and academic partners in 2008 to conduct structural tests on a variety of blades. Knight & Carver’s 27-m STAR blade developed with Sandia and a 46.2-m blade developed by TPI composites were among those tested (Figure 5). The NREL structural testing group also worked with Sandia researchers to test the 9-m TX-100 wind turbine blade developed by Sandia. In response to increased industrial activity across North America and larger blades being deployed on wind turbines, the Wind Program is working with consortiums in Massachusetts and Texas to develop two new blade test facilities. The new facilities will give industry an unbiased, technical environment in which to ensure that the new larger blades, up to 80-m long, meet design and certification standards. The DOE Wind Program is also working with Spain’s Centro Nacional de Energías Renovables (CENER) to test Figure 5 Knight and Carver’s STAR blade blades manufactured in Spain. Information during fatigue testing at NREL.

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AeroDyn-based design codes. The work- containing data on plant operations, plant shop’s 49 participants represented Denmark, development, turbines, components, and Germany, Japan, Spain, the U.S. wind indus- materials. The effort will provide field data try, Sandia, Los Alamos National Laboratory, on the effectiveness and reliability of tur- NREL, and the University of Colorado. bines to the manufacturers and suppliers Other design experts from Argentina, of components who can take actions to Canada, China, Germany, India, Turkey, and improve reliability. Feedback is also given the United States, participated via Internet directly to wind plant operators providing connection. benchmark information needed to optimize New control approaches could mitigate operations and reduce overall operation and loads and deflections and enhance energy maintenance costs. Reliability workshops capture of wind turbines. NREL is work- discussing these issues were held in 2006 ing with the University of Colorado and and 2007, and another is scheduled for June the Colorado School of Mines to develop 2009. and evaluate combined feedforward and feedback controls to mitigate turbulence- 5.1.5 Wind forecasting and induced fatigue loads. Feedforward control- resource assessment lers will use Doppler LIDAR measurements The ability to accurately predict wind of turbulence statistics to demonstrate that farm performance and revenues is of great new controls reduce turbine loading. The interest to the industry. Current methods effort will field-test advanced controls on based on models developed for upper at- the three-bladed Controls Advanced Re- mospheric weather forecasting need to be search Turbine (CART3) at the NWTC. tuned for lower boundary layer physics The Wind Program is also collaborating where wind turbines operate. The Wind with the University of Auckland (New Program is teaming up with the National Zealand), the University of Wyoming, and Center for Atmospheric Research (NCAR) the European Union UPWIND Project and the National Oceanic and Atmospheric on issues of adaptive controls for very large Administration (NOAA) to refine analytical wind turbines. tools to improve wind resources estimation, The United States experiences ex- siting, forecasting, and grid management. treme wind conditions in many prime Improving the accuracy and reducing wind development areas. To help industry the cost of resource assessment is the goal of better match turbine capabilities to site a project begun in 2008. Advanced resource requirements and assess the risks to wind assessment measurement methods are being plants from local atmospheric conditions, tested by NREL, Clipper Windpower Proj- the Wind Program is working with the ect Development, and equipment providers University of Texas and Texas Tech Uni- Sintec and Second Wind. they are com- versity to develop a hazard framework. paring inflow measured via new SODAR The framework uses extrapolations from systems with reference 80-m meteorologi- 50-year extremes of wind (see Figure 6) to cal tower data. Program researches are also compare design criteria (based on objec- working with wind project developers to tive standards) with the loadings at specific calibrate and test their resource assessment sites where plant layout or atmospheric equipment at NREL. conditions may cause significantly different loading. 5.1.6 Turbine testing To help improve wind system reli- Testing large wind turbines will help re- ability, the Wind Program is working in searchers improve the performance and partnership with utilities, reliability track- reliability of existing turbines and future ing experts, operating companies, and tur- designs. The Wind Program will install two bine manufacturers to assemble a database multi-megawatt turbines at the NWTC in

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Figure 6 Hazard framework that will help match turbine capabilities to site requirements.

2009, a GE 1.5-MW and a Siemens 2.3- Program at NREL launched an indepen- MW wind turbine. The turbines will be dent small wind turbine test project in instrumented to collect data on aerodynam- 2007 and the first four turbines to undergo ics, power characteristics, vibrations, system testing were installed at the NWTC in fatigue, acoustics, and other key measure- 2008.The turbines include: Mariah Power’s ments. The 1.5-MW turbine will mainly Windspire Giromill machine, a 1.2-kW be used as a tool for long-term testing and vertical-axis wind turbine; Abundant Re- R&D. It will help researchers address wind newable Energy’s 442 10-kW turbine; farm performance and component reli- Gaia-Wind’s 11-kW two-bladed turbine; ability issues. The turbine will also be used and Integrity Wind System’s EW50 50- for educational and outreach purposes. The kW turbine. These commercially available Siemens 2.3-MW turbine is a late-stage turbines are being tested to standards ad- prototype. It features a novel blade design opted by the IEC and in compliance with that captures more of the wind’s energy the draft AWEA standards for small wind with little or no load penalties. turbine systems. The tests include power performance, power quality, acoustics, safety 5.2 Distributed wind technology and function, and duration. A market study for mid-sized turbines con- The Wind Program is also considering ducted by the DOE Wind Program in 2008 a project to develop regional test centers (13) identified a market for 100 GW of and defining how these test centers would currently available commercial turbines and operate. As part of this effort, the program an additional 100 GW of market potential hosted a small wind testing workshop in for a new generation of more efficient tur- 2008. More than 50 people attended the bines. The report concluded that improve- workshop, including representatives of ments in the technology, reductions in cost, existing and proposed test centers. The and greater policy support are needed to workshop provided an opportunity for increase the use of smaller wind turbines. researchers to coordinate with small wind To help industry offer consumers more testing organizations and identify wind small wind turbine systems that are certi- turbine test experts across North Amer- fied for safety and performance, the Wind ica that are involved with qualifying or

IEA Wind 301 National Activities certifying the performance of commercial at NASA facilities, National Forest Service small wind turbines. areas, and National Park Service sites. Interest in combining wind energy and The United States is home to more diesel generators to lower energy costs is than 700 Native American tribes located expanding in Alaska, Hawaii, and other iso- on 96 million acres. Much of this land lated communities worldwide. More than has excellent wind resource that could 170 participants from more than 10 coun- provide electricity and revenue to the tries shared the technical details of combin- communities. The Wind Program pro- ing wind power with diesel generators at vides a wide range of technical assistance the 17th Wind-Diesel Workshop, held in and outreach activities to more than 20 Girdwood, Alaska, in April 2008. tribes from 13 states. This work includes an anemometer loan program and train- 5.3 Increasing deployment ing sessions in site selection, land agree- The Wind Program’s activities to increase ments, environmental reviews, permitting, deployment involve providing informa- interconnection and transmission, and tion and technical support to wind en- grid integration. In June 2008, the Lakota ergy projects. One important goal is to Nation celebrated the installation of a 65- increase deployment of renewable energy kW Nordtank turbine that supplies 120 at government facilities. For example, the MWh of electricity per year to the Pine DOE Transformational Energy Action Ridge Reservation radio station. Management (TEAM) initiative goal is to “maximize installation of secure, on-site 5.3.1 Systems integration and transmission renewable energy projects at all DOE sites.” With the rapid growth of wind energy de- As part of this initiative, Wind Program velopment, system operators are concerned researchers at Sandia are evaluating a wind that the higher penetration levels of wind project at Kirtland Air Force Base in New energy may affect frequency regulation, Mexico. If feasible, a 30-MW wind farm load following, scheduling, line voltage, could be designed, built, and operated by a reliability, and reserves. DOE’s Renew- private company and could provide up to able Systems Interconnection (RSI) team 40% of the energy for the site. The DOE/ has researchers from seven of the DOE National Nuclear Security Administration, national laboratories working with many Sandia, and Kirtland would purchase the independent system operators (ISOs), re- electricity. The wind potential is also being gional transmission operators (RTOs), the evaluated at Army, Navy, Coast Guard, and Federal Energy Regulatory Commission, Border Patrol facilities, at universities, and at industry partners, and DOE’s Office of Argonne, Fermi, Idaho, and Sandia National Electricity Delivery and Energy Reliabil- Laboratories using wind measurement ity. The goal is to ensure that grid reform equipment on towers and mini-SODAR measures include provisions for variable devices. generation resources such as wind energy. Plans are also being made to assess elec- Studies have been performed with wind- trical demand by military housing at bases. integration penetrations of up to 25% en- Pacific Northwest National Laboratory ergy from wind in Minnesota, 33% renew- (PNNL) hosted an Army Energy Summit ables in California, and 20% wind energy in Richland, Washington, for energy man- capacity in Colorado. At these moderately agers from 20 Army bases. PNNL, NREL, high penetration levels, these studies pro- and Idaho National Laboratory presented jected that wind power’s variability and papers on wind energy and worked directly uncertainty would impose ancillary costs with energy managers to formulate wind below 0.005 USD/kWh. development plans for their bases. Training The RSI team is also examining the and support have been provided for projects major areas of the U.S. grid known as the

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Western Interconnection and the Eastern 5.3.2 Technology acceptance Interconnection. The Western Interconnec- To increase public understanding of wind tion stretches from western Canada south technology, the Wind Program provides to Baja California in Mexico, reaching objective information to regional orga- east over the Rockies to the Great Plains. nizations, federal agencies, state and local The Eastern Interconnection reaches from energy offices, Native American agencies, central Canada east to the Atlantic Coast rural agencies, electrical co-operatives, and (excluding Québec), south to Florida, and utilities. An important activity in 2008 was back west to the foot of the Rockies (ex- the publication of a series of reports on the cluding most of Texas, which has its own economic benefits, reduction of carbon interconnection grid). The RSI team is dioxide, and water conservation benefits working with GE Energy and 3TIER to of developing 1,000 MW of wind energy investigate the impacts of large penetra- in each of 10 states. For example, the eco- tions of wind and solar on the grid in the nomic benefits from 1,000 MW of wind Western Interconnection. This effort exam- energy development in Indiana (Figure 7) ines issues such as geographical diversity of were calculated to be 1.3 billion USD, an- wind, mega-projects (1,000 MW or larger), nual CO2 reductions were estimated at 3.1 and balancing area co-operation. The study million tons, and annual water savings were includes mesoscale modeling to create the estimated to be 1,684 million gallons (14). wind power time series and power sys- The Wind Program also provided sup- tem modeling and analysis. The mesoscale port for six new wind application centers wind speed and wind power dataset will that opened in 2008. The centers, located at cover a three-year period. Up to 30,000 universities, provide training for engineers synthetic time-series data sets of wind en- in wind applications and also support the ergy output will be generated, representing Wind for Schools Project. The objectives of unique 30-MW plants, totaling 600 GW the Wind for Schools Project are to engage of potential energy capacity. Study results rural school teachers and students in wind will be publicly available online at www. energy education, equip college students nrel.gov/wind/systemsintegration/. The with the skills and knowledge they need Eastern Wind Integration and Transmission to become wind energy professionals, and Study (the largest integration study to date) introduce distributed wind energy systems encompasses the ISOs and RTOs in the to rural communities. To accomplish these eastern United States. Mesoscale modeling, objectives, project members assist schools power system modeling, and analysis will with the installation of a small wind turbine support the feasibility study for a 765-kV through a coordinated community effort. transmission system that could enhance the Five small wind turbines have been installed interconnections between the Midwest ISO so far. The university students analyze the and Pennsylvania-Jersey-Maryland RTO wind resources, energy usage, siting, per- and may expand to include the Southwest mitting, land use, and financials, and they Power Pool. oversee installation of the power and data The North American Electric Reli- acquisition systems. ability Corporation is reviewing the role of The Wind Program is working to dewind energy in system reliability through its velop Regional Wind Energy Institutes Integrating Variable Generation Task Force. (RWEIs) because many of the most chal- The RSI team began working with the task lenging wind energy issues are regional in force in 2008 to ensure its members have nature. The goal of the RWEIs is to provide accurate information about the impacts of accurate and current information to mem- wind energy on the operation of the na- bers of state wind outreach teams that are tion’s energy infrastructure to ensure fair actively engaged in furthering wind power consideration during rule making. development by educating key constituents

IEA Wind 303 National Activities

Figure 7 Graphic illustrating the beneﬁ ts of wind energy development in Indiana from a series of reports completed for 10 states in 2008. in their respective states. In 2008, the pro- Program, Bat Conservation International, gram managed three RWEIs in the MidAt- AWEA, and the U.S. Fish and Wildlife Ser- lantic/Southeast, the Southwest, and the vice. In January 2008, 50 experts attended Great Lakes regions. a workshop in Texas to find solutions that To help understand and resolve wind- support the continued growth of wind en- wildlife interactions, the Wind Program ergy production while preserving bats and is working with several groups, including their habitats. As a result, BWEC began a the U.S. Fish and Wildlife Service’s (FWS) project to validate and refine methods to Wind Turbine Guidelines Advisory Com- predict wind plant impacts on bats based mittee, the Bats and Wind Energy Coop- on preconstruction assessments. An acoustic erative, the Grassland Shrub Steppe Species system to discourage bats from entering Collaborative, and the American Wind wind facilities will also be field-tested. In Wildlife Institute (AWWI). The FWS’s another development, changes to operations Wind Turbines Guidelines Advisory Com- during low wind conditions at a plant in mittee has 22 members representing the rural Pennsylvania, owned and operated by varied interests associated with wind energy Iberdrola Renewables, demonstrated nightly development and wildlife management, reductions in bat fatality ranging from 53– including federal and states agencies, con- 87% with marginal annual power loss (15). servation groups, Native Americans, wind Members of the Grassland Shrub energy developers, and utilities. The objec- Steppe Species Collaborative include the tive of this committee is to provide the DOE, the National Wind Coordinating Secretary of the Interior with recommen- Collaborative, and representatives from dations for developing effective measures to state and federal agencies, academic institu- avoid or minimize impacts to wildlife and tions, nongovernment organizations, and their habitats related to land-based wind the wind industry. The goal of this 4-year energy facilities. project is to identify the impact, if any, of Members of the Bats and Wind Energy wind installations on grassland and shrub Cooperative (BWEC) include the Wind

304 2008 Annual Report United States steppe avian species such as the lesser prai- evaluation tools and metrics are needed to rie chicken (16). determine when a wind farm poses a suf- The American Wind Energy Associa- ficient threat to a radar installation. tion provided support for the formation of the American Wind Wildlife Institute 5.4 International collaborative research (AWWI). AWWI focuses its efforts on International co-operation multiplies the facilitating timely and responsible devel- effect of government and industry re- opment of wind energy while protecting search dollars. In 2008, the Wind Program wildlife and wildlife habitat. The institute at NREL joined the UpWind Project will do this through research, mapping, funded by the European Union to conduct mitigation, and public education on best R&D activities on the design of very large practices in wind plant siting and wildlife turbines (8 MW–10 MW) for both land- habitat protection. based and offshore wind plants. Project In another study, Wind Program re- participants include representatives from searchers are investigating whether artifi- universities, laboratories, and industries in a cial intelligence can be used to detect the dozen countries. presence of birds using Next-Generation The Wind Program also benefits from Radar (NEXRAD) data. NEXRAD is a participation in the IEA Wind international network of 158 high-resolution Doppler agreement. Program representatives gain weather radars operated by the National information by attending executive com- Weather Service. The program is work- mittee meetings and U.S. researchers serve ing with the U.S. Geological Survey and as operating agents (managers) for four IEA Montana State University to develop al- Wind research tasks: gorithms to differentiate biological (bird) • Task 20 Horizontal-Axis Wind Tur- echoes in the NEXRAD data to help bine Aerodynamics and Models from identify migratory flyways. Wind Tunnel Measurements works to Wind power-radar interaction is- increase the understanding of the aero- sues gained national attention when wind dynamics of horizontal-axis wind tur- projects were delayed over fears that radar bines through the analysis of the data operations would be affected by wind tur- collected from a full-scale wind tunnel bines. The National Wind Coordinating experiment Collaborative convened a forum of more • Task 23 Offshore Wind Energy than 100 experts, including representatives Technology and Deployment. The from AWEA, DOE, the Department of United States supports this task in joint Defense, and the Federal Aviation Admin- leadership with Denmark and partici- istration to discuss the influence of wind pates in offshore technology R&D by energy on aviation radar and possible miti- sharing much of its offshore modeling gation strategies. In 2008, a study funded work by the Office of Homeland Security con- • Task 24 Integration of Wind and cluded that wind farms can interfere with Hydropower Systems. In addition to radar tracking of aircraft and weather but being the operating agent for this task that no fundamental physical constraint and gaining results from the six par- prohibits the accurate detection of aircraft ticipating countries, the United States and weather patterns around wind farms is sharing three wind and hydropower (17). Interference occurs when radar sig- case studies. This task will complete its nals are reflected back by wind turbines, work in 2009 with the publication of a causing clutter on the radar screens. The final report report also concluded that it is difficult to • Task 26 Cost of Wind Energy. distinguish wind farm signatures from air- This task will develop a common, planes and weather, and that quantitative

IEA Wind 305 National Activities

transparent methodology for estimating • Task 28 Social Acceptance of Wind the cost of wind energy and identifying Energy Projects is collecting experi- the primary differences among coun- ences of successful wind energy devel- tries. The work should help efforts to opment projects to determine the best compare the cost of energy for various strategies to deliver information and technologies. gain public acceptance • Task 29 MexNex(t): Analysis of In addition to managing four tasks, par- Wind Tunnel Measurements and Im- ticipation on other IEA Wind Tasks makes provement of Aerodynamic Models it possible for U.S. researchers to contribute continues the work of Task 20 using to and benefit from cutting-edge analyses of NASA and EU wind tunnel data to the most pressing issues facing wind energy improve aerodynamic models used in development worldwide. wind turbine design. • Task 11 Base Technology Informa- tion Exchange promotes information In addition, DOE’s Office of Electricity exchange among experts on R&D top- Delivery and Energy Reliability is working ics of common interest at four meet- with the IEA Implementing Agreement on ings per year. Experts from the United Distributed Generation on integration of States benefit from attending these demand-side management, distributed gen- meetings and contribute to the world eration, and renewable energy sources and dialogue on important issues energy storage. • Task 19 Wind Energy in Cold Cli- The Wind Program also supports ex- mates develops guidelines for applying perts who contribute to standards work wind energy by gathering and sharing such as that of the IEC. Program experts information on cold climate opera- participate in 11 active IEC/TC88 Wind tional experience and modeling. Par- Standards Working Groups. ticipants established a preliminary site classification formula for wind turbine 6.0 The Next Term designers, manufacturers, project de- Thanks to the extension and expansion velopers, and wind energy producers. of federal and state incentives, utilities and The U.S. representatives share their developers are expected to move forward experiences with rural wind projects in with many wind energy projects in 2009. Alaska However, the contraction of the global • Task 25 Power System Operation economy has cast uncertainty on the effect with Large Amounts of Wind Power of the ITC and other incentives in a time provides information to facilitate the of tight lending and limited tax equity. The highest economically feasible wind President’s New Energy for America plan energy penetration into electricity aims to ensure that 10% of U.S. electric- power systems worldwide. The U.S. ity comes from renewable sources by 2012, representatives will contribute to seven and 25% by 2025. Although achieving 20% national projects and share the results wind energy by 2030 is technically feasible, of all thirteen projects planned by the it will require comprehensive R&D to ad- Task dress a broad spectrum of challenges facing • Task 27 Labeling of Small Wind Sys- industry today. The nation’s transmission tems is organizing to establish appro- infrastructure needs to be expanded and priate international testing and labeling upgraded, and manufacturing facilities need standards for small wind systems. The to increase and improve their production United States is working with the Op- processes to keep pace with demand. erating Agent to define this work

306 2008 Annual Report United States

References: State University, North Carolina Solar U.S. Department of Energy Wind En- Center, http://www.dsireusa.org/. ergy Program, EERE: www.eere.energy. (11) Bird, L.; Hurlbut, D.; Donohoo, gov/windandhydro/ P.; Cory, K.; Kreycik, C. (2009). Examina- National Wind Technology Center, tion of the Regional Supply and Demand NREL: www.nrel.gov/wind/ Balance for Renewable Electricity in the Sandia Wind Energy Technology: www. United States through 2015. 51 pp.; NREL sandia.gov/wind/ Report No. TP-6A2-45041. (1) American Wind Energy Associa- (12) Green Power Marketing in the tion, Annual Wind Industry Report, 2008, United States: A Status Report (Eleventh http://www.awea.org/. Edition), Bird, L., Kreycik, C., and Fried- (2) Emergency Economic Stabiliza- man, B. (2008). NREL: Golden, Colo., tion Act of 2008, P.L. 110-343 (2009). NREL Report TP-6A2-44094. 49 pp. http://frwebgate.access.gpo.gov/cgi- (13) An Analysis of the Technical and bin/getdoc.cgi?dbname=110_cong_ Economic Potential for Mid-Scale Dis- bills&docid=f:h1424enr.txt.pdf. tributed Wind, (December 2008). NREL: (3) The American Recovery and Re- Golden, Colo., http://www.nrel.gov/docs/ investment Act (ARRA) of 2009. http:// fy09osti/44280.pdf. www.whitehouse.gov/the_press_office/ (14) Economic Benefits, Carbon Di-

ARRA_public_review/. oxide (CO2) Emissions Reductions, and (4) A summary of provisions of The Water Conservation Benefits from 1000 American Recovery and Reinvestment Act Megawatts (MW) of New Wind Power in (ARRA) of 2009 can be found at http:// Indiana, http://www.nrel.gov/docs/fy08o- www.awea.org/legislative/pdf/ARRA_ sti/42786.pdf. Provisions_of_Interest_to_Wind_Energy_ (15) Recent publications on bat issues: Industry.pdf. http://www.batsandwind.org/pdf/ (5) New Energy for America Plan. Curtailment_2008_Final_Report.pdf http://www.whitehouse.gov/agenda/ Arnett, E. B., et al. (2008), “Patterns of energy_and_environment/. fatality of bats at wind energy facilities in (6) 20% Wind Energy by 2030: Increas- North America,” Journal of Wildlife Man- ing Wind Energy’s Contribution to U.S. agement 72: 61–78; Electricity Supply (December 2008), U.S. Horn, J., et al. (2008), “Interactions of DOE Energy Efficiency and Renewable bats with wind turbines based on thermal Energy: Washington, D.C., 248 pp. http:// infrared imaging,” Journal of Wildlife Man- www1.eere.energy.gov/windandhydro/ agement 71(8):2449–2486. pdfs/41869.pdf. (16) For more information about the (7) The Pickens Plan. http://www.pick- Grassland Shrub Steppe Species Collabora- ensplan.com/theplan/ tive, visit the National Wind Coordinating (8) American Wind Energy Association, Collaborative Web site at http://www.na- Annual Wind Industry Report, year ending tionalwind.org/workgroups/wildlife/. 2008. http://www.awea.org/. (17) Brenner, M., et al. (2008) Wind (9) Annual Report on U.S. Wind Ener- Farms and Radar, Report Number JSR- gy Markets: 2008. U.S. Department of En- 08-126, U.S. Department of Homeland Se- ergy, Office of Energy Efficiency and Re- curity Science and Technology Directorate. newable Energy: Washington, D.C. http:// Washington, D.C., http://www.scribd.com/ www.eere.energy.gov/windandhydro/. doc/7511288/Wind-Farms-and-Radar. (10) Database of State Incentives for Renewables and Efficiency, North Carolina Author: NREL, United States.

IEA Wind 307 National Activities

308 2008 Annual Report Appendix A Attendees of the 62nd Executive Committee Meeting in Boston, Massachusetts, United States.

IEA Wind 309 Appendix B Simone LALANDE IEA WIND EXECUTIVE Email: [email protected] COMMITTEE 2008 For current membership and contact infor- DENMARK mation, visit www.ieawind.org “contact list” Member Hanne THOMASSEN Email: [email protected] CHAIR Ana ESTANQUEIRO Alternate Member Email: [email protected] Jørgen K. LEMMING Email: [email protected] CHAIR-Elect Brian SMITH EUROPEAN COMMISSION Email: [email protected] Member Thierry LANGLOIS D’ESTAINTOT VICE CHAIRS Email: thierry.d’[email protected] Morel OPRISAN Email: [email protected] EUROPEAN WIND ENERGY ASSOCIATION Hannele HOLTTINEN Member Nicolas FICHAUX Email: [email protected] Email: [email protected]

SECRETARY Alternate Patricia WEIS-TAYLOR Justin WILKES Email: PWT_Communications@comcast. Email: [email protected] net FINLAND MEMBERS and ALTERNATE Member Mauri M. MARJANIEMI MEMBERS Email: [email protected]

AUSTRALIA Alternates Member Eva OBERENDER Esa PELTOLA Email: e [email protected] Email: [email protected]

Alternate Member Hannele HOLTTINEN Irena BUKHSHTABER Email: [email protected] Email: [email protected] GERMANY AUSTRIA Member Ralf CHRISTMANN Member Sabine LIST Email: [email protected] Email: sabine.list@ bmvt.gv.at GERMANY CANADA Alternate Member Morel OPRISAN Joachim KUTSCHER Email: [email protected] Email: [email protected]

Alternate Member GREECE Antoine LACROIX Member Kyriakos ROSSIS Email: [email protected] Email: [email protected]

310 2008 Annual Report Appendix B

IRELAND Alternate Member John MCCANN Jaap ’t HOOFT Email: [email protected] Email: [email protected]

Alternate NORWAY Morgan BAZILIAN Members Email: [email protected] Knut HOFSTAD Email: [email protected] ITALY Member Claudio Andrea CASALE Kjell Olav SKJØLSVIK Email: [email protected] Email: [email protected]

Member Alternate Luciano PIRAZZI John Olav TANDE Email: [email protected] Email: [email protected]

Alternate PORTUGAL Alberto ARENA Member Aan ESTANQUEIRO Email: [email protected] Email: [email protected]

JAPAN Alternate Member Yasuo HASEGAWA Alvaro RODRIGUES Email: [email protected] Email: [email protected]

Alternates SPAIN Hikaru MATSUMIYA Member Enrique SORIA Email: [email protected] Email: [email protected]

Tetsuya KOGAKI Alternate Member Email: [email protected] Ignacio CRUZ Email: [email protected] Hiro YOSHIDA Email: [email protected] SWEDEN Member Maria DANESTIG KOREA Email: [email protected] Member Mr. Changhyun JEONG Email: [email protected] Alternate Kenneth AVERSTAD Alternate Email: [email protected] ChinWha CHUNG Email: [email protected] SWITZERLAND Member MEXICO Katja MAUS Member Marco A. BORJA Email: [email protected] Email: [email protected] Alternates NETHERLANDS Markus GEISSMANN Member Imar O. DOORNBOS Email: [email protected] Email: [email protected]

IEA Wind 311 Appendix B

SWITZERLAND Task 24 Integration of Wind and Robert HORBATY Hydropower Systems Email: [email protected] Thomas L. ACKER Email: [email protected] UNITED KINGDOM Member Allan TAYLOR Task 25 Power Systems with Large Email: [email protected] Amounts of Wind Power Hannele HOLTTINEN UNITED STATES Email: [email protected] Member Megan MCCLUER Email: [email protected] Task 26 Cost of Wind Energy Joergen LEMMING Alternates Email: [email protected] Jim AHLGRIMM Email: [email protected] Task 27 Safety Labeling of Small Wind Turbines Brian SMITH Ignacio CRUZ Email: [email protected] Email: [email protected]

Robert W. THRESHER Task 28 Social Acceptance of Email: [email protected] Wind Energy Projects Robert HORBATY OPERATING AGENT Email: [email protected] REPRESENTATIVES Task 29 MexNex(T): Analysis of Wind Tun- Task 11 Base Technology nel Measurements and Improvement of Information Exchange Aerodynamic Models Sven-Erik THOR Gerard SCHEPERS Email: [email protected] Email: [email protected]

Task 19 Wind Energy in Cold Climates INTERNATIONAL ENERGY Esa PELTOLA AGENCY Email: [email protected] Takatsune ITO Email: [email protected] Task 23 Offshore Wind Energy Technology Deployment Jørgen LEMMING Email: [email protected]

Walt MUSIAL Email: [email protected]

312 2008 Annual Report AppendixAppendix CC

Currency conversion rates IEA wind annual report 2008 Country Currency 1 € 1 USD Australia AUD 0.502 0.698 Austria Euro 1.000 1.392 Canada CAD 0.587 0.817 Denmark DKK 0.134 0.187 Finland Euro 1.000 1.392 Germany Euro 1.000 1.392 Greece Euro 1.000 1.392 Ireland Euro 1.000 1.392 Italy Euro 1.000 1.392 Japan JPY 0.008 0.011 Republic of KRW 0.00057 0.00079 Korea Mexico MXP 0.052 0.072 Netherlands Euro 1.000 1.392 Norway NOK 0.103 0.143 Portugal Euro 1.000 1.392 Spain Euro 1.000 1.392 Sweden SEK 0.091 0.127 Switzerland CHF 0.673 0.937 United Kingdom GBP 1.050 1.462 United States USD 0.718 1.000 “Source: Federal Reserve Bank of New York (www.x-rates.com) 31 December 2008”

IEA Wind 313 Appendix D Glossary of terms and abbreviations.

CCGT Combined cycle gas ExCo Executive Committee turbine of IEA Wind

CEN/ FY fiscal year CENELEC European Commit- tee for Standardization/ GB giga bytes European Committee for Electrotechnical Stan- GEF Global Environment dardization (the original Facility language is French); similar to ISO/IEC GHG greenhouse gas

CHP combined heating and GL Germanischer Lloyd power or cogeneration of Certification body heat and power GW gigawatts 1,000,000,000 CIGRE International Council on Watts Large Electric Systems GWh gigawatt hour CO2e carbon dioxide equivalent HAWT horizontal axis wind COE cost of energy turbine

DFIG doubly fed induction hydro hydroelectric power generator IEA International Energy DG distributed generation Agency

DNV certifying organization IEC International Electro- (Danish) Technical Commission

DSM Demand-side IEEE Institute of Electrical and management Electronics Engineers

EC European Commission IPP independent power producer EEZ Exclusive Economic Zone ISO international standards organization EIA Environmental impact assessment IT information technology; Italy ENARD Electricity Networks Analysis Research and kW kilowatt 1,000 Watts Development kWh kilowatt hour EU European Union £ United Kingdom pound

314 2008 Annual Report Appendix D

m meter repowering taking down old turbines at a site and installing m a.g. meters above ground newer ones with more generating capacity m.a.s.l. meters above sea level RETD Renewable Energy Mtoe million tonnes of oil Technology Deployment equivalent RPS renewables portfolio MW megawatt 1,000,000 standard Watts S.A. Sociedad Anonyma MWh megawatt hour

tCO2-e per m/s meters per second capita tonnes of carbon dioxide emissions per person NA not applicable TNO transmission network NDA no data available operator

NGO non-governmental TSO transmission system organizations operators

O&M operations and TW terawatt maintenance 1,000,000,000,000 Watts pdf portable document TWh terawatt hour format UK United Kingdom PJ peta joule UN United Nations PSO Public Service Obligation UNDP United Nations Development PV photovoltaics or solar Programme cells U.S. United States R&D research and development VAWT vertical axis wind turbine R, D&D research, development, and deployment wind index describes the energy in the wind for the year, RE renewable energy compared with a normal year RES renewable energy systems WT wind turbine

yr year

IEA Wind 315 PRODUCTION CREDITS

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