T H E E U R O P E A N WIND INDUSTRY MAGAZINE

November 2013 Volume 32/No 4

INTERVIEW INTERVIEW COMMENT 2030 targets

XABIER ETXEBERRIA HENRIK POULSEN MICHAEL HANNIBAL Business CEO, CEO, CEO Offshore, Bringing certainty Gamesa DONG Energy Siemens The Siemens D6 platform Turbina Sapiens in its natural habitat.

Siemens’ offshore direct drive with 6.0-MW less than 360 tons. The 6.0-MW drives project profitability rated power is a new breed of wind turbine. It is the latest through optimized infrastructure, installation and service. evolution in the Siemens D6 platform and features the Such a creature of lean and simple beauty could only be world’s first 154-meter rotor. borne of Siemens. The ‘brains’ are housed in the advanced diagnostics system Drawing on over 30 years of experience in wind power and that provides comprehensive real-time performance data a global network of highly skilled employees, Siemens has and service requirements. It also keeps track of its lifetime proven itself to be a trustworthy and reliable business partner. and overall asset condition. It has 50% fewer moving parts As the world looks for energy solutions, if anyone has the than a comparable geared machine and a towerhead mass of answers, then Siemens does.

siemens.com / wind

SiemensPlatformAds 210x297_D6_RZ_korr.indd 1 11.10.13 12:45 | contents |

T H E E U R O P E A N WIND INDUSTRY MAGAZINE

November 2013 Volume 32/No4

letter from the editor 5 Looking ahead wind news 7 keeping up with EWEA’s blog 10 feature 12 Financing offshore wind - the real risks interview 13 Henrik Poulsen, CEO, DONG Energy brussels briefing 14 feature 16 Better health and more income, thanks to a wind-powered fridge interview 21 Xabier Etxeberria, Business CEO, Gamesa focus 24 2030 targets - bringing certainty

country focus 30 A closer look at… Spain opinion - Junior Isles 34 In deep water, not hot water opinion - Adam Barber 37 Time to refocus and shift gears technology corner 40 Better wind resource mapping with one click wind worker 38 Tobias Kunze, Cabling Manager, EnBW Lisa Malmquist Ekstrand, Policy Specialist, feature 45 The Siemens D6 platform Thirty-ve years of Wind Directions EWEA news 46 Turbina Sapiens in its natural habitat. new members 48 the last word 50 Wind Directions is published four times a year. Michael Hannibal, CEO Offshore, Siemens Wind Power The contents do not necessarily re ect the views and policy of EWEA.

Publisher: Thomas Becker Siemens’ offshore direct drive wind turbine with 6.0-MW less than 360 tons. The 6.0-MW drives project profitability Editor: Sarah Azau rated power is a new breed of wind turbine. It is the latest through optimized infrastructure, installation and service. Writers: Sarah Azau, Chris Rose, Philippa Jones, Junior Isles, Adam Barber evolution in the Siemens D6 platform and features the Such a creature of lean and simple beauty could only be Design & production: www.inextremis.be world’s first 154-meter rotor. borne of Siemens. Cover photo: Richard Ransier/Corbis The ‘brains’ are housed in the advanced diagnostics system Drawing on over 30 years of experience in wind power and Additional design and photographic input: Clara Ros, Jesús Quesada that provides comprehensive real-time performance data a global network of highly skilled employees, Siemens has and service requirements. It also keeps track of its lifetime proven itself to be a trustworthy and reliable business partner. and overall asset condition. It has 50% fewer moving parts As the world looks for energy solutions, if anyone has the than a comparable geared machine and a towerhead mass of answers, then Siemens does.

siemens.com / wind WIND DIRECTIONS | November 2013 3

SiemensPlatformAds 210x297_D6_RZ_korr.indd 1 11.10.13 12:45 THERE’S A BETTER WAY TO PROTECT YOUR WIND TURBINE.

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© 2013 Moog Inc. All rights reserved. | letter from the editor |

By Sarah Azau Editor

Looking ahead Photo: EWEA/Bickley

n this nal issue of the magazine Wind more about it on p. 12, followed by a Q&A with IDirections we are looking forward. Forward to DONG CEO and EWEA OFFSHORE 2013 confer- 1 January 2021, when post-2020 EU energy leg- ence chair Henrik Poulsen on p.13. islation will come into force. At the moment the Looking even further aeld, EWEA’s chosen details of this legislation have yet to be proposed, charity is Renewable World, which provides green but EWEA is convinced that an ambitious 2030 electricity to remote communities in some of binding renewable energy target is essential to the poorest parts of the world. On p. 16, Rory give investor condence and continue driving the O’Keeffe explains how Renewable World has sector. This needs to be agreed rapidly in order supported Kenyan sherman, bringing them wind- to allow investors the visibility they need to make solar powered fridges which have allowed them to long-term investments in the energy sector. We keep their sh fresh in hot weather so they can will continue advocating for this legislation as the still make a living. European Commission prepares a proposal to be Coming back closer to home, on p. 40 Pippa published by the end of this year and discussed Jones in the ‘Technology Corner’ explores an by Heads of State in March 2014. I look at the EU-funded project which aims to design software details of what’s needed on p. 24. models that will improve the tuning and modelling We are also looking forward to EWEA’s upcom- of wind farms. ing annual event next March in Barcelona. Chris Finally, they say all good things come to an Rose in the country focus (p. 30) focuses on the end – but some are replaced by something even Spanish market and the bumpy ride it’s undergo- better! This is the last ever paper issue of Wind THERE’S A BETTER WAY TO PROTECT YOUR WIND TURBINE. ing. We interview Spanish manufacturer and de- Directions, and we take a brief trawl through the veloper Gamesa’s business CEO Xabier Etxeberria archives on p. 45. But while the magazine as to nd out more on p. 21. we know it will no longer exist as a hard copy, Offshore installations demand reliability. And Moog delivers. Our world-class pitch We are also looking around. Wind Directions’ plans are afoot to make an interactive elec- control solutions withstand the rigors of the world’s harshest environments. Maybe that’s nal issue is being distributed at EWEA’s tronic newsletter which will go out even more PITCH CONTROL SOLUTIONS why more than 35,000 Moog pitch systems and products are installed on turbines around OFFSHORE 2013 event from 19 to 21 November frequently, containing the latest news, interviews the world. in Frankfurt. This promises to be buzzing with and analyses, and exclusive EWEA members-only technical experts, industry representatives and content. If you have any thoughts do let me know Download our whitepaper on how wind farm requirements political leaders. On the second day of the event at [email protected]. are changing at moogwind.com/416. EWEA will launch its offshore nancing report In the meantime, for those at EWEA OFFSHORE which contains survey results revealing that nan- 2013, have a great event! And for those un- ciers consider regulatory change to be the biggest able to attend, do follow what’s happening on YOUR PARTNER IN PITCH CONTROL obstacle for the offshore wind industry. Read www.ewea.org/offshore2013 n

PITCH SYSTEMS | PITCH PRODUCTS | SLIP RING SOLUTIONS | BLADE SENSING SYSTEMS | GLOBAL SERVICES WIND DIRECTIONS | November 2013 5

© 2013 Moog Inc. All rights reserved. 1,000 turbines of experience on board

Meet us at stand no. 30D20

SEA INSTALLER reflects more than a decade of SEA INSTALLER takes the installation process to experience in oshore wind installation. Designed a more eƒcient and cost-eective level, giving to operate in deeper waters further oshore, developers greater confidence that their projects this purpose-built vessel transports and installs will be delivered on time and with maximum up to eight 3.6MW turbines. profitability.

14088_wind_directions_210x297_5mmbleed.indd 1 24/10/13 12.37 | wind news | 1,000 turbines of experience on board

BRAZIL Energia AS and AS, the own- GERMANY Acciona set to manufacture wind ers of the wind farm, as well as President Iberdrola and Port of Sassnitz turbines in South American nation of Toomas Hendrik Ilves. sign offshore terminal lease Towards the end of 2014, Acciona is More information: www.genewscenter.com Berlin-based subsidiary Iberdrola planning on putting a 3 MW wind turbine Renovables Offshore Deutschland and assembly plant into service in Siemens has installed rst Fährhafen Sassnitz GmbH announced the state of Bahia. offshore platform in the North Sea in July a lease agreement for the Port’s Meet us at stand no. 30D20 ACCIONA said in September that The HelWin1 offshore platform in the Offshore Terminal South, which will it would meet the local content rules North Sea has been installed, marking be used for storage and pre-assembly established by Brazil to nance the ac- the successful completion of a signicant activities of the Wikinger wind farm quisition of wind turbines by wind energy stage in German grid connection projects, project installation. Offshore Terminal developers. Siemens announced in late August. When South at the Port of Sassnitz was More information: www.acciona.com the HelWin1 converter platform goes selected as the optimum place for online, it will link the Nordsee Ost and warehousing, assembly, storing, and CHILE Meerwind wind power plants to the main- transportation of components and Enel breaks ground at its biggest land, the company said. wind turbines to the site. wind farm in South American More information: www.siemens.com More information: www.iberdrola.es country Construction work has started at Enel Green Power’s wind farm in Taltal, the company announced in August. The plant is named after the district where

the project is located, in the region Photo: Siemens of Antofagasta, 1,550 km north of Santiago. The plant will comprise 33 wind tur- bines of 3 MW each. More information: www.enelgreenpower.com

DENMARK Largest offshore wind farm in Denmark is of cially inaugurated With its 400 MW in total, the Anholt Offshore Wind Farm generates electric- ity corresponding to the annual con- Siemens' new platform will sumption of approximately 400,000 help offshore wind turbine households. installation in Germany At the inauguration ceremony in September, Her Majesty the Queen of Denmark ofcially put the wind turbines of Anholt Offshore Wind Farm into GERMANY GERMANY operation. E.ON starts work on Helgoland ‘Anchors away’ for EnBW Baltic 2 More information: www.dongenergy.com base for its Amrumbank West offshore wind farm wind farm The construction of the second offshore ESTONIA Construction of E.ON’s operations and wind farm of EnBW Energie Baden- Paldiski onshore wind farm maintenance building on the North Sea Württemberg AG entered its late stage of cially opened on the Pakri island of Helgoland was announced in in August with the ‘Goliath’ installation peninsula August. platform leaving Rostock port for the GE said in August that the Paldiski wind E.ON will use Helgoland as an EnBW’s Baltic 2 construction area, which farm in the northwestern part of the na- offshore operations base for its is located 32 kilometres north of the tion consists of 18 2.5-100 wind turbines Amrumbank West offshore wind farm and Baltic Sea island of Rügen. SEA INSTALLER reflects more than a decade of SEA INSTALLER takes the installation process to and marks the commercial debut of the the new 1,800 square metre building The company said installation has experience in oshore wind installation. Designed a more eƒcient and cost-eective level, giving company’s wind turbine technology in will provide space for ofces, changing started on the foundations for a total of Estonia. GE representatives were joined rooms and storage. 80 wind power plants. to operate in deeper waters further oshore, developers greater confidence that their projects at the ceremony by ofcials from Eesti More information: www.eon.com More information: www.enbw.com this purpose-built vessel transports and installs will be delivered on time and with maximum up to eight 3.6MW turbines. profitability. WIND DIRECTIONS | November 2013 7

14088_wind_directions_210x297_5mmbleed.indd 1 24/10/13 12.37 | wind news |

IRELAND notice to commence had been issued. former Bransford Bridge site near IKEA to purchase Irish wind farm Fauji Foundation and the infrastructure Rugby. from Mainstream fund Cap Asia (Malaysia) are the major More information: www.res-group.com Mainstream Renewable Power said in shareholders again. The company August it had closed a deal to sell its said 20 N100/2500 turbines are to Minister welcomes Keadby 7.65 MW Carrickeeny wind farm to IKEA, be installed in the province of Sindh community fund boost the world’s largest furniture retailer. in 2014. SSE, the developer of Keadby wind farm Mainstream has commenced construction More information: www.-online.com/en in North Lincolnshire, has more than of the project which is located in Leitrim tripled the funds available for community in the north-west of Ireland and it is ex- SPAIN projects in the local area, a move that has pected to be operational in early 2014. First offshore wind been welcomed by UK Energy Minister, The acquisition will increase the total turbine installed in Spain Michael Fallon. number of wind turbines that the IKEA commissioned by Gamesa The overall fund will now be worth £8.6 Group has committed to owning and Gamesa announced that its G128-5.0 million (€10.1 mn) to local communities over operating to 137. MW offshore prototype had been in- the next 25 years, rising from £2.5 million More information: www.mainstreamrp.com stalled in Arinaga in the Canary Islands (€2.9 mn). The 34 turbine wind farm is due and will generate enough energy to for completion in the rst half of next year. ITALY power 7,500 households every year. More information: www.sse.com ERG integrates business with wind The turbine has a rotor diameter of farm operation and maintenance 128 metres and a total height of 154 USA activities metres, a company press release said. EDPR secures PPA for new 100 Through its subsidiary ERG Renew, ERG More information: www.gamesacorp.com MW wind farm in the US to be has reached an agreement with Maluni installed in 2015 to acquire a 100% stake in a company UK EDP Renováveis, SA (EDPR), through its specically created to perform activities RES acquires two wind farm fully owned subsidiary EDP Renewables pertaining to the operation and mainte- sites from SSE North America LLC, signed a 20-year Power nance of ERG Wind’s Italian wind farms. According to a press release, RES said Purchase Agreement (PPA) with Lincoln As a result, the company said in late the transfer of options on Brown’s Electric System to sell the renewable July, another 136 people will join the ERG Holt wind farm near Gainsborough, energy produced from its 100 MW Arbuckle Group, in addition to 42 staff members Lincolnshire, and Woolfox wind farm in Mountain wind farm project located in recently acquired via the investment in Rutland follows on from the company’s Oklahoma, expected to be installed in 2015. ERG Wind (formerly IP Maestrale). acquisition earlier this year of SSE’s More information: www.edpr.com n More information: www.erg.it

NETHERLANDS Vattenfall opens largest onshore wind farm The Zuidlob wind farm in the central part

of the Netherlands was ofcially opened Photo: Nordex 11 September, Vattenfall said in a press release. With its 36 turbines and a total of 122 MW of installed capacity, it will be Vattenfall's largest onshore wind farm. With its ofcial opening, the wind farm will change its name to Princess Alexia Wind Farm. More information: www.vattenfall.com

PAKISTAN Nordex’s business in Pakistan is continuing to gain momentum In late August, Nordex announced that FWEL I, the second 50 MW contract of ve from its conditional order back- log, had obtained nancial close and

8 WIND DIRECTIONS | November 2013 Save resources?

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Enfant_EN_210x297.indd 1 19/09/13 12:38 | best of blog | Lifting Offshore Wind Keeping up with the blog

Do you follow the EWEA blog on www.ewea.org/blog? Updated regularly, the blog covers news and opinion on a variety of topics linked to wind energy. Below, Sarah Azau selects her top stories from Length 132m the past few months. Breadth 39m Water depth up to 55m Jobs in UK wind energy climb by 70% in three Crane capacity 800t

years By Sarah Azau Payload capacity 6000t+ Transit speed 12knots Photo: EWEA/Bickley he number of people working in the UK wind often those with high unemployment rates. Tindustry has risen to 9,900 up from 6,600 by Wind energy in Europe provides 250,000 jobs, Positioning by DP2 2010 – a climb of 70% – new research shows. contributes over €32 billion to the EU’s economy Accommodation 80POB “When indirect employment is included, the a year, and avoids nearly €6 billion in fossil fuel report shows a total of 34,300 people rely on in- imports. dustries that barely existed a decade ago, a gure The study was commissioned by RenewableUK that researchers say could jump to 70,000 over and the Energy & Utility Skills body. the next decade”, said the Financial Times, report- Published 19 September Sarah Azau picks her ing on the independent study, ‘Working for a Green Sarah says: The green economy in Europe is favourite recent blog posts Britain and Northern Ireland’. already huge and still has massive potential. But It also reveals the areas of the country where stable policy is needed – both nationally and at EU the most wind energy jobs are to be found are level – to ensure this potential is met.

IPCC: fossil fuels must remain in ground to avoid

climate catastrophe By Chris Rose

ignicant, concerted action is now required to The report also says that, without signicant ef- Sstop the continued growth of toxic greenhouse forts to reduce greenhouse gas emissions, global gases caused by burning fossil fuels, says the latest temperatures are likely to rise more than 2°C by Intergovernmental Panel on Climate Change (IPCC) the end of the 21st century, which the interna- report on global warming. tional community has pledged should not happen

Atmospheric concentrations of carbon dioxide because of potentially horric consequences. photo: EWE AG / Ibeler In reacting to the report, European Climate (CO2) and other greenhouse gases have increased to levels unprecedented in at least the last 800,000 Action Commissioner Connie Hedegaard noted years, the IPCC found. the health of planet Earth is at stake because of global warming. “CO2 concentrations have increased by 40% since pre-industrial times, primarily from fos- “Europe will continue to lead the ght sil fuel emissions,” the report, released in against climate change. We have ambitious leg- Breaking Records. Setting Standards. Stockholm, said, adding it is extremely likely, with islation in place. We are reducing our emissions Fossil fuels produce the at least 95% certainty, that human in uence has considerably, expanding renewables and saving greenhouse gases that are been the dominant cause of the observed warm- energy,” Hedegaard said. Our class-leading Bold Tern was the first jack-up vessel poisoning our planet ing since the mid-20th century. “And we are getting ready for the next step: in the world to deliver and install eight complete “Continued emissions of greenhouse gases will climate and energy targets for 2030 that the cause further warming and changes in all components Commission will present before the end of the turbines in a single deployment. of the climate system,” the report stated. “Limiting year. The reality is that others are now follow- climate change will require substantial and sustained ing suit. Europe will continue to demand more reductions of greenhouse gas emissions.” action from all the emitters.” And her sister ship, Brave Tern, In addition to warmer atmospheric and ocean con- Published 1 October is just as impressive. ditions, the report warned of sea level rise, melting Sarah says: It is always shocking to see yet glaciers, changes in the global water cycle, reduced more proof of how close we are to climate ca- volumes of snow, increased droughts, and more tastrophe – we must hope this report will impact www.windcarrier.com See us on stand 31D20 Photo: iStock extreme weather events. negotiations at COP in Poland. n

10 WIND DIRECTIONS | November 2013 Lifting Offshore Wind

Length 132m Breadth 39m Water depth up to 55m Crane capacity 800t Payload capacity 6000t+ Transit speed 12knots Positioning by DP2 Accommodation 80POB

photo: EWE AG / Ibeler

Breaking Records. Setting Standards.

Our class-leading Bold Tern was the first jack-up vessel in the world to deliver and install eight complete turbines in a single deployment.

And her sister ship, Brave Tern, is just as impressive. www.windcarrier.com See us on stand 31D20 | feature |

Regulatory changes our biggest risk for offshore investment, say money men

By Sarah Azau

offshore wind industry used for the project. A supplier’s nan- and the money men. For cial strength determines not only its nanciers, for example, one ability to full the contract, but also the Photo: GWEC of the biggest risks during guarantees and warranties if it fails to do the construction phase so. As new technology is used, supplier of the project (the report guarantees provide an assurance and looks at both the higher remedy if the equipment or service does risk construction phase and not perform – prior to 2011, no offshore the lower risk operations wind project was fully completed without phase) is the grid. Service a contractor going bankrupt, points out providers, however, are less the report. concerned with grid risks During the operation phase of a wind than with installation and farm, regulatory changes are perceived logistical risk, as they are as the key risk in offshore wind, espe- less likely to be nancially cially by debt providers. Other technol- impacted by delays to grid ogy risks, such as bearing reliability, inanciers say regulatory instability connection, according to the survey. come in second. Warranty and damage Fis the main thing putting them off The perception of risk also depends liquidation risks are also ranked highly investing in the offshore wind industry, on the country, again no more than in the by debt providers, but less so by service according to a new report EWEA releases case of grid availability. When the con- providers. on 20 November. nection and infrastructure are handled “The industry and the debt and If the industry is to meet its target by separate bodies – for example in equity providers do not always see eye of 40 GW by 2020, it will need between Belgium and Germany - the risk is seen to eye on the risks. If both parties were €90 and €123 billion in funding between as higher. This is because it makes the more involved from the beginning of pro- now and then, the report reveals. Yet whole process generally take longer, and ject development it would help align the the large sums themselves are not the therefore grid investment decisions are risk perception and its mitigation strate- issue: it is the instability in national made well in advance of construction, gies.”, says Moccia. “However, by far the regulatory and market frameworks which which can lead to a mismatch between most striking conclusion of the survey are endangering the target. grid infrastructure supply and actual is the impact the regulatory instability in The ndings in the report are based on demand at the time of delivery. The some countries is having. If the industry a survey of over 40 industry players includ- consequences of this are major delays in is to achieve its 40 GW by 2020 target ing lenders, institutional investors, power completion, which affects project returns and create jobs, green growth and boost producers, sponsors, service providers and and even potentially revenue. energy security in Europe, governments wind turbine manufacturers across Europe. For the service providers, installation must ensure regulatory stability at “There is money and willingness and logistics are the main construction national level. At EU level we need a [to nance offshore wind projects] but risks, as they have to withstand increas- binding renewables target for 2030 to in order for investors to be convinced ingly deeper waters as well as constantly send a clear signal to investors and the the regulators need to establish frame- changing wave and weather condi- industry that this is an industry that will works that will last”, explains EWEA’s tions. In addition to reliable weather continue to grow.” Jacopo Moccia. “Financiers want not and ground assessments, the principal Copies of the report are available for EWEA members only the money itself but to know there way of understanding and mitigating attending EWEA OFFSHORE 2013 at EWEA’s stand is certainty that the country is willing to the risks incurred in this process is 31C100. develop the offshore wind sector.” through experience. The report is also available for download on www.ewea.org The report also nds discrepancies Another risk for nanciers is the More on EWEA OFFSHORE 2013: between the risks as perceived by the nancial solidity of the suppliers being www.ewea.org/offshore2013 n

12 WIND DIRECTIONS | November 2013 | interview | “We must build a European energy system based on our strengths”

CEO of DONG Energy Henrik Poulsen green energy through projects that now have the is chairing the EWEA OFFSHORE 2013 size of large-scale power stations - at sea, where our offshore power plants do not take up valuable conference. He told Sarah Azau about land or get in the way of neighbours. We deliver high security of supply using a technology for which shale gas and reducing the costs of Photo: DONG Energy production and the cost of energy can be relatively offshore wind. accurately predicted for the next 20-25 years. At the same time offshore wind is rooted in How would you describe the current offshore wind a European supply chain and core competency power market in Europe? which has created a signicant amount of jobs and The European market is a high economic growth over the past decade. Europe growth market. There is a signicant potential for needs to nd its own answers to the future energy offshore wind power, which is also re ected in the challenge. We cannot just benchmark against the national action plans decided by the different EU US and say we want something that replicates their countries. In the next 30 years, up to 90% of cur- game changing discovery of unconventional fossil rent European energy capacity will have to be rebuilt fuels. It is not going to happen in Europe at nearly due to plant retirements and economic growth. the same scale. We must build a European energy Although we have seen some downward revisions system building on our own strengths and core “We have of the growth forecast, I remain condent that there competencies. If so, I am condent there will also one major are very signicant opportunities ahead for the be global demand for the technologies we develop offshore wind industry. including offshore wind. challenge: to There is signicant potential. However, we have reduce the cost Will offshore nancing be a topic of discussion at one major challenge: to reduce the cost of offshore EWEA OFFSHORE 2013? wind. Cost of energy is an area where we as a sec- of offshore Financing has been a key topic during the past tor must deliver. The costs must come down. This is wind.” years due to the nancial and economic crisis, and a prerequisite for us as a sector. I am convinced that it will continue to be so. The We need to further reinforce this work so that European offshore market is expected to grow by a not only a few companies or suppliers enhance factor of six towards 2020, and this type of growth their competitiveness but the whole sector develops will, of course require signicant amounts of capital. further and nds the innovative solutions required However, the capital is available as investors look to bring us to a lower cost level. To facilitate this for alternative asset classes providing a meaningful we need policy-makers to provide us with stable, alternative to traditional investments in equity and long-term regulatory frameworks supporting offshore xed income. wind's nal stages of maturation. For the past few years, at DONG Energy we have divested ownership shares in our offshore wind What do you expect to gain from EWEA OFFSHORE farms to private investors, pension funds and indus- 2013 and what are you most looking forward to? trial partners at a value of approximately €2 billion. First of all I hope to meet an industry equipped for To us this has been a way of injecting new capital the challenges of the future. An industry that is into the energy sector, enabling us to recycle capital bursting with good ideas and initiatives to solve our and invest in new projects. For our partners, it has common challenges including to reduce the cost of been an opportunity to invest and get a stable energy from offshore wind. An industry humbled by return, while at the same time contributing to the the magnitude of the opportunity and the challenge conversion to more clean energy. we face but hopefully also a group of people taking pride in working on a technology that provides a What else do you think people will be talking strong and tangible response to one of the biggest about in Frankfurt? challenges facing our planet. I hope we will have a good discussion about the All things considered I look forward to an interest- potential for offshore wind. Offshore wind is now ing conference with exciting and honest debates the fastest-growing energy technology in Europe, which hopefully will chart the course for our industry and for a number of reasons. We supply clean, in the years to come. n

WIND DIRECTIONS | November 2013 13 | brussels brie ng | Wind can replace conventional EU electricity network project list technology in published, but no supergrids providing grid he rst EU-wide list of electricity support Tinfrastructure ‘projects of common interest’ for possible funding under the € 5.85 billion Connecting Europe Facility was published in October. EWEA’s Senior

Regulatory Affairs Advisor Paul Wilczek Photo: EWEA/Bianchin commented: “The fact that there are very few potential meshed offshore grid projects and zero supergrid projects in the list is a sign that political momentum needs to Photo: EWEA pick up in order to benet from the huge needed now is more political willingness ind farms could take over from cost reductions such grids would bring. and the right regulatory frameworks at conventional power plants in prov- The EU’s infrastructure package is a national level to stimulate investors’ W ing grid support services, an EU-funded sound legislative vehicle to bring these appetite for this type of innovative project is proving. badly needed projects forward. What is infrastructure." While the continued use of fossil fuels and nuclear is sometimes justied by their role keeping grid voltage and frequency stable, the REserviceS project EU Parliament rejects Council's 2014 proves that wind and solar PV can do it just as well. If they were remunerated EU budget due to research cut for it on the market, they could replace conventional generating technology in such as EU research programme Horizon this role. 2020 – which includes wind energy This autumn, REserviceS organised research money. three regional workshops in Dublin, The Parliament restored the €43.7 Kassel and Madrid. These workshops million cut by the European Council, and allowed stakeholders to exchange views increased it further. It also underlined on the project’s case studies. that the EU institutions in charge of the “The very wide range of participants European budget must commit to the - industry representatives, system opera- EU’s priorities, in particular strengthening tors, regulators, and market parties the budget lines “relating to the pro- - highlighted the pertinence of including grid support services from variable re-

Photo: iStock grammes of direct benet for European citizens and contributing to the delivery newables into the market, as it can ben- t the end of October, the European of the Europe 2020 priorities which are et many sectors”, commented Sharon AParliament rejected the Council's crucial for the growth and competitive- Wokke, project manager at EWEA. draft EU budget for 2014. This was ness of the EU”. REserviceS is the rst project to due to cuts introduced by the European The budget proposal will now be investigate wind and solar based grid Council to the EU programmes dedicated negotiated between the European support services at EU level. It will pro- to achieving the EU 2020 strategic goals, Commission, Council and Parliament. vide technical and economic guidelines and recommendations for the design of a European market for grid support services, as well as for future network codes within the Third Liberalisation What does the future of wind Package. The consortium, led by EWEA, consists of leading knowledge organisa- energy support look like? tions, renewable industry and network operators. The project receives fund- he European Commission is publish- mechanisms for renewable energy that ing from the Intelligent Energy Europe Ting new guidelines on energy and en- are considered legal under EU state aid Programme. vironmental state aid from 2014-2020. law. For detailed results: www.reservices-project.eu n These guidelines cover the support For more information see www.ewea.org.

14 WIND DIRECTIONS | November 2013

| feature | Fish provide the vast majority of food and income for the six communities Photo: Renewable World Photo: Renewable Photo: Renewable World Photo: Renewable Better health and more income, thanks to a wind-powered fridge

By Rory O’Keeffe, Renewable World

ave you heard the one about sh in a fridge? communities (17,605 people) in Nyanza Province: HProbably not. But when Renewable World in year one, the villages of Luanda Rumbo and started work on the North Eastern banks of Lake Got Kachola, and in the proceeding two years, Victoria, in Kenya, it soon became clear that ‘sh Mohuru, Sori, Oodi and Nyandiwa. in a fridge’ was a sensible rst step towards im- The solar panels and wind turbines we and proving everything from education to health… local partners Access Energy, FASCOBI and The shing communities settled on the banks OSIENALA are installing will be maintained and of the Kenyan section of Lake Victoria strug- operated by the community members – and those gle daily to eke a living from the water and the community members will also decide what the nutrient-poor, often dry soil at its edges. power will be used for. In fact, these communities are some of Which is how we come to ‘sh in a fridge’. Kenya’s poorest – with almost 71% of their resi- When we visited the six communities, we discov- dents living below the poverty line. ered that each one relies heavily on sh for both And in common with 1.3 billion people in the food and income: the farmland on the Lake’s developing world – all of them among the world’s banks is of poor quality and without power, there very poorest people – the root of their problem is are virtually no opportunities to learn the skills lack of power. necessary to change jobs or increase income. Not just lack of access to the control struc- But although sh are in plentiful supply in the tures which might change wealth distribution, or Lake, lack of power held down the income gener- welfare provision within Kenya and across the ated even by this rich natural resource and the world, but lack of the power we take for granted hard work which goes into harvesting it. in the UK, America and Europe: electricity and As an example, in Got Kachola, the shing energy. eet, which leaves every night and returns the But this summer, Renewable World launched following morning, catches 500kg of Nile Perch a scheme in which the INGO, local partners, and each trip. community members themselves are working to On the rst day, this sh is sold at its fair improve education, health, water standards and market price. But as soon as that ‘peak trading access, crop production, training, enable climate point’ is passed, the value plummets. Put simply, change mitigation and increase incomes. in hot weather, people won’t pay full price for a Named Renewable Energy Systems of Lake day-old sh. Victoria Ecosystems (RESOLVE), the programme As a result, the whole community suffers from will also deliver these advances in a completely a simple, avoidable, problem: low returns for hard sustainable manner, and without negatively im- work. pacting on the local – or global – environment. The solution is simple, and was one of the The project – part-funded by Comic Relief - will rst suggestions made to us by the villagers: use last until 2015, in which time it will deliver solar/ the power we bring to refrigerate the sh. If your wind hybrid power production systems to six perishable goods’ shelf-life is too short, plug in

16 WIND DIRECTIONS | November 2013 | feature | a fridge, and keep them fresh. With power, it’s as even though the benets of burning easy as ABC. Without it, it’s a pipedream at best. carbon fuels – wealth, education, health- As a result of powering refrigerators, sh sales care and opportunity – have not reached incomes will jump by up to 30% - US$325 per the communities worst affected by its sher, per year. results. And of course, the refrigerators will not only Rain patterns have altered in the last contain sh. Many medicines, including insulin two decades, meaning it’s no longer for diabetics and anti-venom for victims of snake clear when it’s best to plant crops, or bites, lose effectiveness if not properly chilled. So which crops are best suited to the new World Photo: Renewable not only does a fridge equal extra income, it also conditions. Even more worrying, the new means better healthcare. conditions, characterised by months A second benet of the solar panels and wind of drought followed by short periods of turbines, which will produce 4-5 kWh of electricity remarkably heavy rainfall, wash away per day, is lighting. the thin layer of fertile soil close to the When we arrived, community members’ only Lake. means of lighting were kerosene-burning lanterns. This is one reason why we use renew- But kerosene fume inhalation causes two million able energy technology: we know people deaths per year around the world. For shermen need power to improve their lives, but working through the night, the health effects of their lives are already being made harder kerosene use could be disastrous. And the same by energy generation in developed Solar lanterns and electric lighting creeping, insidious threats to health attacked states. So renewable technologies offer are improving health, education and women and children at home. them an opportunity to realise their disposable income levels Added to that, kerosene is expensive. In the potential, without contributing further to vast majority of homes, youngsters are simply the thing that threatens them most. unable to complete schoolwork at home, because And coming back to ‘sh in a fridge’, the it’s too dark to read and write, and their families programme has another environmentally-friendly can’t afford to buy enough kerosene to light their impact – this time on a local scale. Because of homes. the severe drop-off in price for sh not sold on And it’s a serious issue. Not only do children the day they’re caught, shermen were shing deserve a decent education, to get the best pos- every day: the impact on sh stocks was seri- sible start in life, it is also a well-educated popula- ous, depleting numbers severely. tion which will be able to innovate and implement Today, those shermen can sh less regularly, "The the means to improve their communities’ – and catching fewer sh but making more money. In nation’s – situation and standing. this way, sh species are protected, and a bal- communities But powering lighting systems, combined with ance is set between the needs of the communi- are next to the provision of solar lanterns for shing vessels ties, and the continued existence of the sh – is another priority the communities have set for which deliver food and income. fresh water, but the renewable technologies, simultaneously im- Finally, the technology itself. Our model uses their health is proving health, education and increasing dispos- machinery which must be maintained and oper- able incomes. ated. Occasionally, it needs repair. at risk when Health is also at the centre of the third main This is not a negative. It enables a ‘rst-step’ they drink it." use of the power generated by the renewable for community members towards income diver- technologies: water ltration. sication. Because we and our local partners It’s an unfortunate irony that the six communi- provide training on how the technology works, ties we are working with are sat next to a vast how to use it and how to repair it, the people source of fresh water, but their health is at dire of Nyanza District are not only taking ownership risk every time they drink any of it. of the tools which can continue to help them Polluted water from the Lake is the single improve their lives, they are also learning new worst cause of disease in the region, but without skills which they can use to start businesses, or power, there was no opportunity to end it. gain new employment. But using the new power they have, the com- So, the one about sh in a fridge may not munities are setting up ltration systems which be the most hilarious joke ever told. In fact, it will make the water everyone relies upon to stay hasn’t much of a punch-line at all. But for six alive, safe to drink. Kenyan communities on the North Eastern banks Water pumping is also set to increase in- of Lake Victoria, it may well be a story with a comes, improving crop yields by enabling regular happy ending. irrigation. To nd out more about Renewable World, and its work in And it’s a sad fact that the effects of climate East Africa, Central America and South Asia, visit us at: change are hitting the developing world hardest, www.renewable-world.org. n

WIND DIRECTIONS | November 2013 17 Check out how your Get the early bird discount business can fl ourish

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Register at early bird rates www.ewea.org/annual2014

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“Wind energy can compete head-to-head with nuclear power”

Xabier Etxeberria, Gamesa’s Business CEO, on Spain’s NEW changing renewable energy laws, the future outlook and 2030 EU energy policy. G114-2.5 MW Photo: Gamesa THE EVOLUTION What impact is the current regulatory uncertainty turbines beyond original design specications (re- “EU policy has having on the Spanish wind industry? gardless of whether there were made by Gamesa > It reaches the highest eciency and profitability a direct impact in medium wind sites The energy reforms being implemented by the or by another manufacturer), thereby guaranteeing Spanish government are necessary as the goal the equipment’s safety and availability, enabling on reducing > It has the reliance on well-proven technology is to eliminate the ultimately unsustainable tariff control over O&M costs and streamlining the cost powering 15,000 MW: the Gamesa 2.0 MW platform decit. Moreover, these reforms imply the govern- of energy. energy imports ance of a sector which has been crying out for a > We develop technology focused on the reduction and fostering of the Cost of Energy (CoE) new regulatory framework for some time now. What do you think of offshore wind energy, will That being said, the new regulations have not its costs ever come down enough to be truly innovation and been fair with wind power: an energy source that competitive? job creation.” WE GET MORE ENERGY WITH THE has proven a competitive source of electricity and The cost of producing energy offshore is closely LOWEST COE one that has contributed meaningfully to curbing tied to the facility’s distance from the coastline electricity prices. and the depth of the sea bed, as these param- eters ultimately dictate installation and main- What needs to be done, and what is the longer tenance ease or complexity. Here at Gamesa term outlook (are you optimistic?)? we are working to design and Our outlook for the wind power “The new develop reliable and productive industry in Spain is that hardly regulations have turbines that are able to produce any new wind farms will be built in more energy at a lower cost in the wake of the entry into effect not been fair with order to reduce the overall cost of the new regulations, at least wind power.” of energy. To give you an exam- in the near term, which will oblige ple, Gamesa is focusing part of customers to maximise income from the facili- its design and development work on reducing ties they already have in operation: the idea is to the weight of its turbines as this cuts end costs make sure that the wind farms already in exist- signicantly and facilitates logistics tasks. ence continue to operate and produce energy /gamesao cial @Gamesa_O cial protably for as long a period of time as possible. What do the offshore wind turbines of the future This development creates a business oppor- look like? tunity for Gamesa, which offers operations and Gamesa is working to develop more powerful yet maintenance services that are capable of pro- lighter weight turbines that are capable of produc- longing the useful lives of wind farms and wind ing more energy at a lower cost.

WIND DIRECTIONS | November 2013 21

1307_GamPress_WindDirections_G114_2.5MW_297x210_ENG.indd 1 30/07/2013 11:43:18 | interview | Photo: Gamesa

However, the weakness we are seeing across advanced economies is being partially offset by growth in emerging markets, driven not only by very real energy shortfalls but also by wind condi- tions that boost wind energy’s competitiveness relative to that of traditional sources of energy.

How important is EU legislation in driving the wind energy sector? What are your views on the cur- rent 2020 and possible 2030 renewable energy targets? The policies rolled out by the European Union in support of renewable energies have been crucial to the success of the EU's energy agenda and have spawned European companies that have become global leaders. The new rules mean hardly any new This support is additionally key to ghting wind farms will be built in Spain climate change and reducing our dependence on fossil fuels. European policy, meanwhile, also has a direct impact on reducing energy imports and What are the wind energy industry’s long term fostering innovation and job creation. prospects in Europe and beyond? Where are the The regulations of the future (2030) should be next promising markets? designed to encourage Member States to imple- The wind energy industry’s long-term prospects ment stable and exible support measures that are excellent, underpinned by current forecasts can be adjusted in line with declining renewable for the technology’s cost effectiveness: today, energy costs and market trends. They should wind energy, on a normalised cost basis, can com- further spur the industry to make the long-term pete head-to-head with nuclear power, investments needed to develop is in the ballpark with coal-red elec- “The weakness renewable energy sources to their tricity and very soon will reach parity across full potential. with hydro-electric power and the CCGTs. Fuelled by this anticipated advanced What needs to happen to ensure con- cost-effectiveness, the IEA estimates economies tinued growth in the sector? that wind power capacity will increase Wind energy has a key role to play by 11.5% per annum between 2012 is being in resolving the structural decits and 2018 to total 531,000 MW by partially offset implicit in conventional power gen- the end of the projection period. The eration: scarcity, dependence and emerging economies are spearhead- by emerging safety/security. This, coupled with ing this growth. markets.” the growing competitiveness of wind Taking a shorter-term perspective, energy, depicts a solid future for the however, demand growth remains sluggish as a wind industry. The key lies with continuing to work result of the economic weakness af icting the de- to reduce the cost of energy. veloped economies and its impact on renewable energy support programs. This change is particu- How do you see EWEA’s role, and why does larly notable in southern Europe (Italy, Greece and Gamesa see it as important? Spain), with demand shifting north (Germany and EWEA plays a crucial role in defending and the UK) and east (Poland), with new markets such representing the European wind energy industry, as the Ukraine and Turkey emerging in parallel. In championing the presence of wind energy within the US, the late extension of the tax credits for the European energy mix and publicising the energy production from renewable sources (the industry’s virtues, specically its power to reacti- PTCs) has had a very adverse impact on forecast vate sluggish economies. n demand for 2013.

22 WIND DIRECTIONS | November 2013 HARNESS THE

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WIND DIRECTIONS | November 2013 GENUINE.STRONG.GREEN. 23 THE NEXT STEPS FOR EU CLIMATE AND ENERGY 2030 POLICY EUROPE NEEDS...

...an ambitious and binding ...an ambitious and binding Target renewable energy target greenhouse gas target 2030 Binding renewable To put the EU on the path to the 80-95% greenhouse energy, greenhouse gas reduction and energy ef- gas reduction by 2050 agreed by EU leaders (which requires a zero carbon power sector) fi ciency targets for 2030 are urgently needed in € the EU to ensure the To help ensure a sound Emissions Trading System (ETS) which drives emissions down long term (see diagram below) renewable energy sector continues to grow and provide clean electricity, To lower the To drive down To promote energy To put a price on carbon and price emitting technologies long-term costs of costs and security, green at their real cost to society energy security, green decarbonisation ultimately remove growth, jobs jobs and export opportu- by driving deployment the need for and leadership nities. But can a target of and cost reduction support for wind in technologies in really be the silver bullet in a wide range of energy and other which Europe excels Climate change the industry claims? renewable energy renewables and needs to keep (fl oods, droughts, Sarah Azau investigates. health risk) technologies a competitive edge, particularly wind such as wind power energy Emissions READ MORE from fossil Cost paid by fuels How the consumers ETS should and work taxpayers 0 02 2 ETS puts a price on carbon emissions. Fossil fuel electricity is priced at its real cost.

To facilitate the To avoid a fossil To promote achievement of fuel lock-in whereby environmental the 2020 targets new fossil fuel plants protection by ...an energy effi ciency target by signalling to are built that will boosting renewable investors that continue running and energy technologies renewable energy is a polluting for many like wind, which long-term EU priority years produces no emissions and uses minimal water To unlock the cost-effective energy effi ciency potential

24 WIND DIRECTIONS | November 2013

WD-420X297-DP-2030.indd 1 18/10/13 17:40 THE NEXT STEPS FOR EU CLIMATE AND ENERGY 2030 POLICY EUROPE NEEDS...

...an ambitious and binding ...an ambitious and binding Target renewable energy target greenhouse gas target 2030 Binding renewable To put the EU on the path to the 80-95% greenhouse energy, greenhouse gas reduction and energy ef- gas reduction by 2050 agreed by EU leaders (which requires a zero carbon power sector) fi ciency targets for 2030 are urgently needed in € the EU to ensure the To help ensure a sound Emissions Trading System (ETS) which drives emissions down long term (see diagram below) renewable energy sector continues to grow and provide clean electricity, To lower the To drive down To promote energy To put a price on carbon and price emitting technologies long-term costs of costs and security, green at their real cost to society energy security, green decarbonisation ultimately remove growth, jobs jobs and export opportu- by driving deployment the need for and leadership nities. But can a target of and cost reduction support for wind in technologies in really be the silver bullet in a wide range of energy and other which Europe excels Climate change the industry claims? renewable energy renewables and needs to keep (fl oods, droughts, Sarah Azau investigates. health risk) technologies a competitive edge, particularly wind such as wind power energy Emissions READ MORE from fossil Cost paid by fuels How the consumers ETS should and work taxpayers 0 02 2 ETS puts a price on carbon emissions. Fossil fuel electricity is priced at its real cost.

To facilitate the To avoid a fossil To promote achievement of fuel lock-in whereby environmental the 2020 targets new fossil fuel plants protection by ...an energy effi ciency target by signalling to are built that will boosting renewable investors that continue running and energy technologies renewable energy is a polluting for many like wind, which long-term EU priority years produces no emissions and uses minimal water To unlock the cost-effective energy effi ciency potential

WD-420X297-DP-2030.indd 1 18/10/13 17:40 | focus | “EU politicians are betraying EU citizens”

or the last few years, Europe’s energy sector sector, also to investors, and enable cost reduc- Fhas been guided by the EU framework put in tions and make the 2020 targets to reach,” says place in 2009, built around 2020 targets for re- Bourgeois. newable energy (20%), greenhouse gas emission Josche Muth from European renewable energy reduction (20%) and energy efciency (also 20%). council EREC says: “People need to understand Wind energy in Europe has grown by an average there is a difference between the regulatory 17.6% a year since 2000. framework and policy certainty which is provided But as the framework creeps nearer to its expiry by a binding target at EU and Member State level date, a new one to replace it is needed. Currently and that provided by support mechanisms at the European Commission is preparing proposals national level. If there is certainty about market which it will publish in January, and the heads of shares and a binding commitment by Member state will discuss in March 2014. States, the cost of capital will reduce and this For the wind and renewable energy industry, reduces the cost of those support mechanisms” the current binding targets – which have worked [for full interview see p. 27]. extremely successfully in moving the sector forward, and therefore increasing the jobs, export Lowering emissions opportunities and avoided greenhouse gas emis- The renewable energy industry along with others sions it brings – should be repeated for 2030. – such as the manufacturing industry, environmen- “It makes sense to drive renewable energy, tal groups and energy efciency groups – wants which combines economic growth with climate a renewable energy target. Yet Eurelectric, which change mitigation. The European Commission it- represents the electricity industry, along with self has called it a “no-regrets option”, along with others believe that only strengthened Emissions energy efciency and infrastructure”, points out Trading System (ETS) [the EU’s market system for Stephane Bourgeois from EWEA. “Binding targets trading carbon emission allowances] is needed. provide the sector with the necessary stability to “Our main concern with the 2030 renewables thrive.” target is not to have lots and lots of targets, we’d Why is “stability” such a key live in chaos,” says Scott. “The word? In terms of legal frame- "A post-2020 key issue is the instruments. A works, the stability provided by target will strong ETS can support a renewa- a mandatory target means that bles growth target which would be investors are sure the sector will confirm the at most indicative. If we can get a still be there, and be even bigger, direction of much stronger ETS we are condent in the years to come, so they can this will drive jobs, renewable energy commit money to it. EU policy." growth and so on. There are some Jesse Scott from Europe’s areas where an ETS price signal electricity body Eurelectric says: “Most of the wouldn’t be enough, like innovation, or energy ef- big guys in the electricity sector are global. They ciency on the demand side, where public support don’t have to invest in Europe; they can invest would be needed.” in Turkey or Brazil! If that’s the logical business Josche Muth from EREC points out that decision, that’s what they’ll do,” she emphasises. renewable energy policy is about more than just Currently, governments like the one in Spain decarbonisation, but also security of supply and are creating dangerous instability by changing competitiveness. support mechanisms and putting the sector at “Decarbonisation will of course mean we risk – in Spain, 40% of wind industry jobs have reduce carbon emissions but it won’t help security been destroyed this way [see p. 12 for more]. of supply, for example”, he says. “What’s more, The UK is currently changing from one support the ETS doesn’t cover the entire energy sector, scheme (renewables certicates) to another (the only electricity, so it won’t allow us to decarbonise Contract for Difference) and taking its time about the whole sector. And it does not allow for any it. But would a 2030 target at EU level be enough kind of innovation: you need to have both push to counter-balance this? and pull policies – pushing from R&D and pulling “A post-2020 target will conrm the direction coming from having a target and certainty about of EU policy, which will send a message to the the market”.

26 WIND DIRECTIONS | November 2013 | focus |

We also have 2050 decarbonisation targets to in the right direction; it all depends on Germany.” meet (80-95%), points out Bourgeois. The irony of the matter is that EU citizens “To meet our 2050 pledge, we need to develop themselves are strongly pro-renewable energy. A a wide range of technologies and it costs less to 2013 poll by Eurobarometer found that 70% of do this now, earlier on.” EU citizens think that renewables "Governments think should be an energy priority for It’s urgent a target will cost the next 30 years.1 One thing most parties agree on “Although nearly three-quarters is that the decision on post-2020 billions, but it will of Europeans support renewa- EU energy policy needs to be drive costs down!" bles, they were not part of the made soon. European Commission’s recent “2030 is really really urgent, there are 35 consultation on post-2020 EU energy policy!” years between now and 2050, most of the things says Bourgeois. “Politicians who don’t support we build are big and last 40 years, that time for a renewables target for 2030 are betraying the an electrical engineer is too short!” says Scott citizens who voted for them.” n from EURELECTRIC. “We are deeply worried about the problem of the change of mandate, if these decisions are not taken in this mandate [i.e. before the European Commission and Parliament change hands in 2014, ed.], we could arrive on the eve of 2020 with nothing.” Q&A with Josche Muth, Secretary General of the European Will it happen? We already have a set of 2020 targets, so how Renewable Energy Council (EREC) hard can it be to persuade politicians to replicate them for 2030? In fact, it is already a conten- tious issue, with 14 Member States (at the time Can you tell me a bit about the letter you of writing, October 2014) having submitted their wrote on 2030 targets? responses to the European Commission’s con- EREC together with 67 European com- sultation – nine of them in favour of a renewable Photo: EREC panies and associations signed a letter energy target [see image on p. 29]. A number of to the EU energy ministers and Climate other European countries including Germany, Italy, Action and Energy Commissioners. In the Sweden, the Netherlands and the Baltic States, letter we stated: were still to nd a government position, with their “We strongly believe that a new environment or climate ministries supporting climate and energy framework for 2030 renewables targets. needs to be based on mutually reinforc- If a renewable energy target can do so much, why ing tools and targets, including a legally would Member States not want one? binding target for renewable energy, “The reasons why not depend on the country”, and urge all policy makers to support a says Bourgeois. “In the UK it’s due to anti-Europe- strong and ambitious regulatory framework for the years to come.” anism and Tory backbenchers who are anti-renew- Signatories included utilities, manufacturers and associations. ables and want to push nuclear forward. In other countries it’s because of the myths of expensive Some are saying that we don’t need a renewable target because the renewables, the perceived cost of grid integration, Emissions Trading System can do it all. What is your response? or of storage. The anti-renewables guys have done The goal of EU energy policy is security of supply, competitiveness and some heavy lobbying, so governments think it’s go- environmental protection. We are therefore focussed on achieving these ing to cost billions, when in fact the target will drive multiple goals and to do this in the most innovative and cost effec- down the cost of the technology and therefore of tive way you need more than just decarbonisation. Decarbonisation on the necessary decarbonisation to 2050.” its own would, for instance, reduce our carbon emissions but without An important decision-making power lies with increasing security of supply. We need different policies which would Europe’s biggest Member State, Germany, which mutually reinforce each other. has not yet given an ofcial position. Germany The other issue is the instruments you use to decarbonise – was preoccupied with its own elections and (at the ETS doesn’t cover all energy sectors but mainly electricity. the time of writing) was still in negotiations to Furthermore, it does not allow for any kind of innovation. In my opinion, form a coalition government. you need to have both 'push and pull policies' – the 'pushing' com- “It all depends on Germany, and Germany is ing from the R&D side and the ‘pulling’ coming from having a target, taking its decision late. The UK has already been Continues on p. 28 lobbying against a target; the French are not moving

1 http://ec.europa.eu/public_opinion/ ash/ _360_en.pdf

WIND DIRECTIONS | November 2013 27 | focus |

Q&A with Josche Muth, Secretary General of the European Renewable Energy Council (EREC) continued.

having certainty about the market. Such a strategy enables you to get the biggest cost decrease as Any thoughts on the direction Germany will go in? the technologies are deployed in reality and not Will it depend on its coalition partners? just at the R&D stage. To decarbonise the whole We need to see a coalition agreement but energy sector, not just the power sector, we need Germany’s own Energiewende [energy transition, to push technologies such as offshore wind and ed.] roadmap shows there are committed to an ocean energy for instance, which may be more increasing share of renewables and to have a expensive today but which have a massive cost higher national greenhouse has reduction target. reduction potential for the future. I believe Germany will come forward before the end of the year in favour of a new renewables How far could a 2030 target compensate for regula- target for 2030. Then they will have to join forces tory instability at national level? with Denmark and lead other Member States who A 2030 target gives the direction and the priority are both willing and able to make such a com- and will therefore provide a required level of cer- mitment, as well as work to get other Member tainty. The question for investors is ‘what is hap- States on board. pening in 2021?’, in eight years’ time. Decisions are taken on the energy landscape today for 2030 Who are the other ‘key players’ in this debate? and 2040, so investors need to know now what France, the UK, Poland and Denmark are those their return on investment will be. A 2030 target up to now who are most outspoken in terms of will provide them certainty in this regard, but it positions. The key to the process will be what kind needs to be put in place soon. of agreement could be found between Germany What we have seen in the last years, in part (which should be in favour), the UK and Poland due to the lack of a long term ambition out to (which are against) and whether it is possible to 2030, is an increase in the cost of capital. It bring in other larger Member States like Spain as has therefore become more expensive to invest being favourable towards renewables. Denmark in an energy project than would otherwise be the has been the most outspoken so far and the most case. We can reduce the cost of capital if we clearly committed to a binding 2030 renewable have a binding target for 2030, clarity on market energy target but it has also been hesitant to take shares and political direction. We should also the lead and put together a coalition. not underestimate the impact of the EU target on national policies, since Member States need to So on a scale of one to ten with ten as the highest comply with it. Just yesterday [30 September, ed.] probability, how likely is a renewable energy target the European Commission launched infringement for 2030? procedures against Spain and Italy for not trans- The European Commission will denitely propose a posing the directive properly. target as the majority of stakeholders want one, as Also, a 2030 target will allow for decreasing I mentioned previously with the open letter. Then cost for support. People need to understand there it’s about the trade-offs between Member States. is a difference between the regulatory framework I believe it is highly likely that we will see a 2030 and policy certainty which is provided by a binding target for renewables, certainly 9 out of 10. target at EU and Member State level and that which is provided by support mechanisms purely And will it be binding? And how high will it be? at a national level. If there is certainty about mar- Yes it will be binding. And it will be more than ket shares and a binding commitment by Member a business-as-usual continuation, which would States, the cost of capital will reduce and this already bring us to 30% by 2030. At EREC we are reduces the cost of those support mechanisms. calling, together with our members, for a 45% If you want the same installed capacity without a renewable energy target, up from 20% in 2020. target only via support mechanisms, those mecha- nisms have to be even more adequate in terms of nancing.

28 WIND DIRECTIONS | November 2013 | focus |

What do the Member States think? The outcome of the discussion between EU heads of state in March 2014 will determine the direction of the future 2030 energy legislation. What do we know so far?

Finland Sweden

Estonia

Latvia Denmark Lithuania

Ireland UK Netherlands Poland Germany Belgium Luxembourg Czech Republic Slovakia

Austria France Hungary Slovenia Romania Croatia

Bulgaria Italy

Spain Portugal Greece Picture: Fotolia.com

Malta Cyprus n Austria, Belgium, Denmark, Ireland: in favour of binding renewable energy and greenhouse gas reduction targets for 2030 n Portugal: is open to a renewable energy target and is keen on an energy infrastructure target nFrance: is in favour, but wants the renewable target to be set only after a greenhouse gas emissions reduction target n Germany, Luxembourg, Sweden: have no of cial position yet, but are likely to support a renewable energy target n Estonia, Lithuania, Latvia: are in favour of a renewable energy target after further assessment n Finland: supportive of an indicative renewable energy target nGreece: previously supportive of a renewable energy target, but as the upcoming EU presidency country, likely to remain neutral nSpain: keen on greenhouse gas and energy infrastructure targets but have not mentioned renewables nMalta: would prefer to focus on greenhouse gas reductions nNetherlands, Italy: government split on position nCroatia, Cyprus, Slovenia: no of cial position nBulgaria, Hungary, Poland, Romania, Slovakia: no enthusiasm for a renewable energy target and prefer to have international agreement before an EU greenhouse gas reduction target nUK: explicitly opposing a renewable energy target but wants high greenhouse gas reduction target (50%) nCzech Republic: explicitly opposing a renewable energy target

WIND DIRECTIONS | November 2013 29 | country focus |

In 2013, Wind Directions will A closer look at… take a look at a selection of wind energy markets across Europe Spain and beyond.

A European wind power success story, Spain now faces

setbacks By Chris Rose

Association (AEE), said the govern- ment’s recent regulatory changes to wind power and other renewables are creating severe problems for the sector.

Photo: iStockphoto “Since 2009 the sector has had to endure continuous changes in the regu- latory framework,” Willstedt told EWEA. “The rst blow came when annual ‘quotas’ of installed capacity were es- tablished in 2009; then the premium for wind was curtailed by 35% from 2010 to 2013; at the beginning of 2012 a mora- torium on incentives for new projects was established; at the end of 2012 a 7% tax on the revenue of installations was adopted; nally, in 2013 the ‘Reform’ of the power sector is in the process of being adopted: not only the FIT system has been scrapped and changed to a capacity premium, also an important retroactive cut in the retribution for old installations will be adopted.” Willstedt said the Spanish wind sec- tor is trying to convince the government pain’s wind power sector, long a terms of total wind energy capacity with that the measures are exceedingly nega- Ssource of pride to the nation’s a total of 22.8 GW (22,800 MW) of wind tive and against common EU objectives estimated 47 million people, currently energy capacity installed. and law, and that other alternatives are nds itself constrained as the country However, the Spanish wind energy available to solve the “tariff decit” continues dealing with EU-wide economic industry, which installed 1,122 MW of problem. problems. wind power last year (almost the last “Under these circumstances, it will Originally a wind energy pioneer, in megawatts authorised by the govern- take time and a huge effort before we recent months the Spanish govern- ment to be installed under the old see the light at the end of the tunnel,” ment has demolished renewable energy Feed-in Tariff system), nds itself at he added. support mechanisms and brought the a cross-roads. In the rst six months About 27,000 people are employed wind industry to a near standstill, laying of 2013, only 122 MW were installed, in the wind energy sector, he said, not- blame for its nancial difculties at the again under the old regime. From 2014 ing that in 2012 wind power avoided feet of the renewable energy sector, onwards, no wind energy is expected to the imports of natural gas valued at despite the national green growth and be installed if the regulatory framework €2.3 billion while receiving €2.05 bn in jobs - 40,000 in wind alone – the sector under discussion is approved as laid incentives. “Thus, for each €1 received had created. out by the government. in incentives, wind power was saving EWEA’s 2012 statistics showed that Heikki Willstedt, director of Energy €1.13 in fossil fuel imports and €0.05

Spain was in second place in Europe in Policy for the Spanish Wind Energy additional in avoided CO2 emissions.”

30 WIND DIRECTIONS | November 2013 | country focus |

In 2010 the sector’s goal was to rst, when wind technology investments Some observers have suggested that have 40,000 MW installed by 2020 were far more risky than today. Willstedt this gap may widen in the future because (35,000 MW onshore and 5,000 MW says that the changes could entail the of the lacked of certainty through a sup- offshore), Willstedt said, adding in permanent dismantling of the wind port mechanism. 2011 the government in its National industry in Spain. It is unfortunate if that happens Renewable Energy Action Plan estab- Along with AEE and national renewa- considering that the total contribution to lished 35,000 MW onshore and 750 MW ble energy association APPA, EWEA has the GDP of the Spanish wind sector was offshore. also been closely monitoring the chang- €2.6 billion in 2011 and that Spanish “Currently it is not clear what will be es in Spain. In a letter to the European wind energy companies remain leaders the goals for 2020, given the uncertain- Commission in July 2012, EWEA said around the world despite the issues ty about the future of the sector caused the wind industry understands that in a currently being faced in the domestic by recent regulatory changes,” he said. time of austerity Member States need market. “We expect that in a couple of years, to raise revenue to improve their scal Observers also note that Spain’s when the current reforms in the power position. tariff decit of approximately €28 billion sector start to settle, there will be more “It should be underscored, however, was caused by politicians deciding not clarity about the future objectives for that sti ing an industry which is key for to fully re ect electricity generation the wind power sector.” green growth, generating revenue, creat- costs in electricity prices which has now Wind power so far in 2013 is the ing green jobs and reducing greenhouse prompted the cash-strapped government second technology in terms of power gas emissions is not a positive develop- to take radical measures, including mak- generation, he said, just behind nuclear ment,” the letter said. “This would in ing renewables pay a highly dispropor- and in front of hydro, coal and gas. Wind our view be a short-sighted decision. It tionate price for the tariff decit. power is currently supplying 20.5% of would hurt the chances of the industry For his part, Willstedt said obstacles Spain’s electricity, he added. to contribute to the recovery of the to even higher levels of installed wind The Spanish government’s electric- Spanish economy which should be the power capacity being developed in Spain ity reform act, which includes the halt ultimate objective of the Spanish and are not technical, economic, or because of renewables’ incentives, was laid out European authorities.” of the lack of the resource. “The main over the month of July. Before that, in This year in February, EWEA sent the obstacle is the lack of political will from February, there were previous changes European Commission another letter, the central Government, plus scal to the incentive scheme that already raising concerns about the severe regu- hurdles at the level of autonomous meant a huge blow for the wind sec- latory measures recently adopted by the regions.” tor. Willstedt told EWEA then that the Spanish government impacting renew- Noting that the Spanish government February changes meant an average able energy, particularly wind power. wants to have adopted all elements wind installation was going to receive “Measures weakening investor and details associated with its complex about €6 per Megawatt hour less than condence in the renewables sector and reforms before the beginning of 2014, expected when investment decisions thereby sti ing an industry which is key for Willstedt says he believes the European were made. As a result, he added, the economic growth, security of supply, job Commission and the European Union sector will see its income reduced by creation and greenhouse gas emissions are still evaluating the implications of approximately €600 million in 2013, reduction is a major blow to key European the changes. representing around 15% of its turnover. policy objectives,” the letter said. “But urgency to act is fundamental Under the current regulation under Although Spain has been a great before the whole ‘reform’ is adopted as discussion, any installation that has promoter of wind energy in the past, it is,” he said. “We are working here in already reached a return on investment and although 1,122 MW were installed Spain and in Brussels together with EWEA of 7.5% before taxes will not receive in 2012, it is worth noting that the to try to change the current proposals as further incentives, thus the retroactiv- country’s National Renewable Energy they would put in danger Spain’s and the ity of the measures. This will penalise Action Plan had called for 1,700 MW to EU’s achievement of the 2020 objectives those wind farms that were installed be installed. for renewable energy.” n

Spain – the wind energy facts

CURRENT CAPACITY ...... 22.8 GW CURRENT OFFSHORE CAPACITY: ...... Zero 2020 RENEWABLE ENERGY TARGET: ...... 35,000 MW of onshore and 750 MW of offshore wind power capacity

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WD-ewea membership-210x297-FP-oct.indd 1 03/10/13 11:42 | opinion |

In deep water, not hot water

ffshore wind farms do not come up against threats to this target and represents a real risk Othe same ‘not in my back yard’ issues as to investors. There are also fears that the ongo- onshore wind but unfortunately, it is an expensive ing recession in the eurozone will reduce liquid- business. ity in the debt and equity capital markets. With The cost of developing multi-megawatt turbine the large amount of capital needed to build an is high and building large structures out at sea is offshore wind farm, whose costs is at least four both complex and fraught with risk. Then there is times higher than an equivalent CCGT plant and the challenge of transmitting power back to the around twice as much as a coal plant, nancing mainland. is a big stumbling block. Earlier this year Siemens’ Power Transmission In June this year Freshelds Bruckhaus By Junior Isles division experienced difculties linked to grid Deringer LLP working with Clean Energy connections to offshore wind farms. More recently Pipeline, a division of VB/Research, published Vestas of oaded its offshore business a report entitled ‘European offshore wind Junior Isles is the Editor-in- into a joint venture with Mitsubishi 2013 – realising the opportunity’. It said that in Chief of The Energy Industry Heavy Industries. 2012, project debt nancing decreased 28% to Times newspaper and an GE is also holding off its re-entry $2.1 billion (€1.6 bn) and noted that this is an Energy Media Consultant with to the offshore market. GE’s new issue, particularly as it estimates that about $9 Man in Black Media. European renewable energy general billion (€6.6 bn) of project debt nance will be manager Cliff Harris recently said that needed each year from 2013 to achieve the 43 despite having developed a 4.1 MW GW target. turbine, it must “nd a away to make it cost-effec- According to a Data Insight Report from tive”. Harris was reported as saying: “The current Clean Energy Pipeline, commercial lenders strategy is to watch and see how the market have been the most active investors in offshore develops. We must nd projects that make money wind farms in the last three years. Around 20 for the customer.” commercial banks invested in offshore wind Certainly the economics surrounding offshore projects in 2012, a similar number to 2011. wind are daunting. In the UK, the world’s largest However, there is evidence that institutional offshore wind market, the Department of Energy investors are also becoming more comfort- and Climate Change (DECC) estimates levelised able with the risks, with the emergence of costs of electricity (LCOE) from its deeper water new sources of debt nancing. In June 2012, Round 3 offshore wind projects at about £120 alongside a number of commercial banks, the (€141)/MWh compared to about £100 (€118)/ pension fund PensionDanmark provided $44 MWh onshore and about £80 (€94)/MWh for million debt nancing to the 216 MW Northwind combined cycle gas turbines. offshore wind farm. Pension funds have previ- To its credit the wind industry has acknowl- ously invested equity in offshore wind farms, edged that the cost of offshore wind is too high but this was the rst time one had invested and has set about the task of identifying how it debt. In June this year PensionDanmark also can be lowered. provided a mezzanine loan in America’s rst Last year the UK formed an Offshore Wind Cost offshore wind farm, Cape Wind. Reduction Task Force, which concluded that off- Although offshore wind farms are expensive shore wind can reach £100/MWh by 2020. If this to build and maintain, the steady cash ow can be achieved, it would still be more expensive they provide over 20-30 years is well suited than onshore wind and gas but would be cheaper to pension funds. If governments can provide than coal with carbon capture and storage. more regulatory certainty, the long-term future In the meantime, however, serious challenges of offshore wind will be a lot less stormy than it “Offshore wind remain. According to the National Renewable is currently. Energy Action Plans (NREAPs), some 43 GW Turbines may be moving out into deeper water farms provide a of offshore wind capacity will be installed in but the industry is not in hot water. In the current steady cash flow European waters by 2020. economic climate and uncertain policy environ- An uncertain subsidy environment, in the form ment, offshore wind may be facing strong head- over 20-30 years.” of new mechanisms or cuts is one of the biggest winds but the fundamentals remain sound. n

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adv REH 178 x 124 03-2013.indd 1 6/08/13 16:25 | opinion |

Adam Barber examines the thorny issue of nancing and the wind industry. Time to refocus and shift gears head of the summer break, DONG Energy sig- Admittedly project nance is not yet Analed its intent by of oading its entire Danish as well established as it is within the onshore wind portfolio. The move conrmed its onshore markets. However, with over domestic market exit, as it refocuses attention twenty banks and public institutions internationally and offshore. already playing their part, and with no cur- At just €102m, the 272-turbine sale, which rent proven alternatives, project nance included the transfer of 18 support staff and a small has quickly become the renewable power pipeline of development sites, simply wasn’t a core poster pin-up. focus for the utility anymore. It’s a well-timed market escalation, too. Photo: Tamarindo Communications Photo: Tamarindo And, whilst that spelt good news for the buyers – Since, while the levelised cost of offshore Danish energy company SE and domestic pension wind is expected to decline thanks to fund, PFA – it spelt good news for the markets, too. technological acceleration, supply chain ef- Why? In short, because in recent years European ciencies and market progression, there’s utilities have come under increasing pressure to free still an ambitious set of targets to hit and up vital capital and boost their balance sheets. by proxy, a hunger for fresh capital. Adam Barber is the managing That’s a far cry from the situation less than a Best industry estimates currently sug- director of The Tamarindo Group. decade back, when abundant and cheap corporate gest that more than €150 bn is needed His team provides ongoing funding made nancing and investing in new energy between now and 2020, with over €100 counsel and advice to ambitious assets easy. A turn of events that led to many of the bn required for the UK alone. businesses operating in the utilities investing in non-core revenue generating as- This, combined with an average capital nancial services and energy sets and taking on higher levels of project risk. expenditure that industry insiders calcu- space. Now, with growing pressure to boost revenue, in late to be currently sitting at €3.7 million The Tamarindo Group includes part because of the changing European political en- per megawatt, suggests that while in the specialist PR and communi- ergy agenda and a shift in energy-generating demand, long term costs will fall, there’s no quick cations advisory, Tamarindo the utilities must be more eet of foot. nancial x. Communications and the What’s more, there’s a catch. Since it’s impos- Indeed, while early offshore wind as- networking and intelligence sible for utilities to move quickly and to react to the sessments suggested that the cost of membership community, A Word wider political landscape and consumer demand capital would fall in line with project prolif- About Wind. while they are experiencing shrinking balance sheets eration, this has not yet come to pass. and are operating within what’s become an increas- In part, that may well be because of ingly uncertain energy generating revenue base. the inelastic relationship between capital expenditure And that uncertainty hasn’t just been driven by and variables such as water depth, distance from the wind. Traditional coal, oil and gas-red power plants shore and so forth. Although this price insensitivity aren’t guaranteeing the same level of returns that has also inevitably been in uenced by higher instal- “It’s often during they once were. And it’s actually not as benecial to lation, foundation and cable costs that have not yet the renewable energy markets – and in particular, to been sufciently negated by ongoing technological these moments offshore wind – as one might think. turbine improvements. of industry flux Since, with traditional revenues dropping, utilities So what does this all really mean for the future of are hampered when it comes to future opportunities offshore wind? And with such vast pools of capital that real market to invest. needed, is there a danger that the markets will stall? innovation Time then to refocus and shift gears. And for the There’s no easy answer. However, what is certain likes of DONG Energy, that means selling off non-core is that it’s often during these important moments of begins.” assets in order to continue to build out offshore. industry ux that real market innovation really begins. Of course, when it comes to investing in offshore In the past, that entrepreneurial thinking has wind, this recent dash for cash isn’t new. And with been focused almost exclusively within the devel- the utilities estimated to have already nanced over oper and construction communities – with a hand- 75% of the €16 bn that’s been required to estab- ful of high-prole dealmakers seeming to single- lish the current 5GW offshore wind operating base, handedly initiate a change of industry pace. Now there’s no doubting that they’ve played their part. though, and with a number of early-stage offshore However, it’s because of this newly emerging developments already having started to change economic and energy picture that future direct invest- hands, perhaps it’s time for that approach to be a ments from the utilities are expected to be few and little more enthusiastically adopted by the money Find out more at far between. And it’s why project nance continues to men, looking on? n www.tamarindocomms.com gain ground. and www.awordaboutwind.com.

WIND DIRECTIONS | November 2013 37 | wind worker |

Wind worker

From underwater survey work to managing the operation of a wind farm, we meet some of the over 200,000 people who make the European wind industry tick. Tobias Kunze, wind farm cabling manager, EnBW

What does your job involve? An interesting part of my work is the complexity As Offshore Implementation Manager for the rising from a project having many stakeholders Internal Array Grid (IAG) of the offshore wind farm involved, both internal and external, with widely vary- ‘EnBW Baltic 2’ I am responsible for the successful ing interests. Additionally, the little experience in the installation and commissioning of the IAG. This task industry with few standards giving technical guid- involves both technical and contractual manage- ance new issues constantly arise but also require ment. Technical management mostly consists of in- creativity and give me the opportunity to learn and ternal and external interface coordination with other shape. contractors as well as coordination of the certica- tion and approval process. Contractual management What is your least favourite part of your job? mostly comprises monitoring of the contractor’s As the offshore wind energy sector is still requiring compliance with the contractual obligations and signicant reductions in cost until it reaches grid the implementation of modications to the contract parity, it is still very dependent on political backing which naturally evolve during a project. and currently under discussion. There are different ideas about how the roadmap for energy transition Photo: EnBW What is a typical day like for you? could look like in Germany. Therefore a whole indus- A typical day for me starts with a ride on the most try is very much dependent on the decisions of a beautiful subway route in Hamburg along the few politicians. This is a risk which I hope is soon Landungsbrücken offering a view along the harbour mitigated by increased competitiveness of offshore and a number of landmarks of the city. In the of- wind energy. ce, I am having many meetings with other parties the IAG has interfaces with, such as the offshore Do you work in a team or individually? substation or the wind turbines. Thus, coordination With the manifold interfaces, every party in the pro- is needed in order to avoid costly reworks during the ject has to be a strong team player. I am integrated offshore construction phase. Furthermore, reviewing in a team of IAG colleagues, each responsible for of technical documents is part of the daily routine a specic lot such as the cable production or the for avoidance of con icts and ensuring contractual cable protection system. Each of these lots is compliance. closely linked to each other and requires constant exchange and close collaboration. How did you come to work in a job related to the wind energy industry? What are your predictions for wind energy in the During my studies I already familiarised myself with future? wind energy by taking a lecture dedicated to this What I see is that offshore wind compared to topic. Being interested in gaining a deeper under- onshore still struggles with forming a mature standing and to apply my knowledge in practice, sector as standardisation and harmonisation is I joined a German manufacturer of wind turbines still lagging behind expectations. Unfortunately for an internship. With the offshore wind industry the nancial struggle as seen with some rms offering many interesting technical challenges and further indicates the lack of maturity in the indus- being a fundamental part of the energy transition in try. Nevertheless, I expect that after the years of “A whole industry Germany, I wanted to be part of this turnover of the enthusiasm in which many players tried to enter is very much energy sector and applied for my current job. the market and some now nd their expectations misaligned with reality, a time of consolidation and dependent on What is your favourite part of your job? the forming of strong market leaders will follow. My the decisions of One of my key personal drivers is the daily learn- expectation is that this will lead to standardisation, ing about the challenges and innovative solutions reduced cost and increased protability of offshore a few politicians.” related to the construction of offshore wind farms. wind projects.

38 WIND DIRECTIONS | November 2013 | wind worker |

Lisa Malmquist Ekstrand, Policy Specialist, Head of Public Affairs Northern Europe, Global MarCom & Corporate Relations, Vestas

What does your job involve? see great growth potential. And I am the Vestas Public Affairs Manager in Sweden, what could then be better than Norway and Finland, and more recently also partly Vestas!

responsible for EU matters relevant for our busi- Photo: Vestas ness. So in practice this means being on top of What is your favourite part of political and legislative developments that might your job? have positive or negative impact on our business That I am truly proud of our activities in these markets. Another fundamental product and all the interesting part of the job is to ensure that Vestas remains people that I meet every day. an in uential voice in the discussions forming Both outside and inside Vestas. new legislation or initiatives related to wind power. And the feeling that the job we I also work very closely with my communications are doing actually matters in the and market intelligence colleagues, as much of bigger picture. As you never really our work is closely inter-related. know how your day will turn out it Particularly exciting is my fairly new responsibil- also means that you need to be quite adaptable ity of following EU initiatives, especially in these to sudden changes – that can sometimes be chal- “The job we times when the very important future framework lenging but it also never makes your job boring. for EU’s energy and climate policies is up for are doing discussion. The EU 2020 renewable energy What is your least favourite part of your job? actually target provided the necessary clarity and long- The endless amount of e-mails. sightedness for an industry dealing with large-scale matters in the infrastructure projects with long investment cycles. Do you work in a team or individually? bigger picture.” Now 2030 is already at our doorstep and we need I work in many great cross-functional teams — to ensure that the success of long-term cost reduc- locally, regionally and globally. On a daily basis I tions enabled by industrialisation and economies work very closely with the local sales teams and of scale are allowed to continue. market intelligence and communications col- leagues as well as with my colleagues in other What is a typical day like for you? markets on cross-market initiatives, such as the Well, they never really look the same, and you nev- EU 2030 work. er really know what comes up. But a typical week at least consists of analysing and alerting on new What are your predictions for wind energy in the political or legislative proposals, writing position future? papers or answering consultations, planning for What we have seen today is only the beginning. new initiatives such as the Vestas-inspired public The growth may not be as aggressive as we have acceptance campaign called Act on Facts that we seen in the past, but it looks like we’re in for a launched in Sweden on 24 October (and in the UK steady and stable build-out as the maturing indus- on 6 November) and coordinating Vestas’ work try we have become. in Brussels related to 2030. As my job requires Next key steps are electricity markets that are close contacts with the Nordic wind power as- designed in a much more effective and efcient sociations and political stakeholders, pretty often manner than what see today. With the continued a week would also include travelling to one of the build-out, wind power and other renewables internal Nordic capitals or Brussels. electricity markets must be able to efciently match variable supply with demand; adequate How did you come to work in a job related to the transmission capacity within and between coun- wind energy industry? tries, increased demand side responsiveness, and After some years abroad as a climate and environ- solutions. I am sure we will see a ment adviser in the public sector I decided that lot more in this area as well as a wider discussion it was time to try out the private sector. I wanted on electricity markets adequately rewarding differ- to work for a company with a product that I truly ent generation technologies for their respective believed in, that was modern and where I could merits and system wide benets. n

WIND DIRECTIONS | November 2013 39 | technology corner | Photo: EERA-DTOC

Better wind resource mapping with one click

How far apart should you place your turbines? What effect will this have on the power output? An EU- funded project is designing software that will process offshore wind farm production scenarios. Pippa Jones takes a closer look.

he European offshore wind industry is growing. The European Energy Research Alliance (EERA) TIndeed, new offshore capacity installations has decided to act to try to ll this lacuna by doubled during the rst half of 2013 compared to joining forces with partners from industry and the same period the previous year. However, there academia. The result is the EERA-DTOC (Design are still uncertainties surrounding the sector, not Tool for Offshore Wind Farm Cluster), which began least a clear understanding of how best to plan operating in January 2012 and will run until June offshore wind farms so that they produce as much 2015. Its goal is to design software models that power as possible. A recently set up EU-funded will improve the tuning and modelling of wind project is creating state-of-the-art software to farms. generate data that will inject some solidity into “There was a call for the EU to come forward this debate. with some solutions about how to plan large During the rst six months of this year, 277 offshore wind farms more efciently,” explains new offshore wind turbines, totalling 1,045 mega- Charlotte Bay Hasager, senior scientist at the watts (MW), were fully grid connected in Europe. Technical University of Denmark (DTU) and EERA- In addition, 268 foundations were installed and DTOC project coordinator. One particular issue 254 turbines were erected from January to June, was that of “missing links” between science and according to EWEA. The sector has therefore been industry and so the fact that eight major com- performing well. But unanswered questions re- panies involved in operating wind turbines have main. One area in particular where accurate data joined the project is great news, says Dr Hasager. has been thin on the ground is that of wind farm The companies that are involved are: wake predictions. This means the effect that the Norway’s Statoil and Statkraft; Iberdrola in Spain; physical presence of wind turbines would have on Renewable Energy Systems (RES) and the Carbon the ow of the wind and therefore on the output of Trust in the UK, E.On and Hexicon in Sweden, and a wind farm, its energy yield and other elements. Germany-based Bard Engineering. In total, 22

40 WIND DIRECTIONS | November 2013 | technology corner | Photo: EERA-DTOC Photo: GWEC

The software will calculate the impact of new offshore wind farms on existing ones

partners are involved in EERA-DTOC – the majority The rst area for the software to tackle is that of are European universities and research institutes, optimum spacing between wind turbines in the although one exception to this is the University same farm. “If the turbines are placed further of Indiana in the US, whose trustees are also apart you get more wind, but then you need more partners in the consortium. The project is costing cable and so developers have to be able to work €4 million with €2.9 million coming from the EU’s out the most cost effective solutions,” says Dr Seventh Framework Programme (FP7) and the Hasager. This question will become even more sig- remainder in match funding from industry. nicant as large arrays of oating wind farms start The ultimate goal is to “deliver a robust model- to appear, which will then have to be connected to ling tool that we can trust,” says Dr Hasager. “For the grid structure and the power generated from many software, users have to go through a high them integrated into the electricity supply systems. speed learning curve before they understand a Secondly, the software will be able to simulate system and it is often easy to make mistakes.” how existing wind farms could impact the efcien- She says that the project team wants to “produce cy of newly built farms even if there seems to be software which even if the user puts in pretty a fair amount of water between them. “We will try weird data, the programme will be able to gure to model this for the rst time,” says Dr Hasager. out that a mistake has been made and that the “In the past, a developer would have been the data is out of balance”. only person to put up an offshore wind farm in Moreover, the team is not aiming to be a a particular spot, but now the map is becoming panacea to all problems. “Some people would like completely crowded in some areas,” she explains. to create a piece of software that can model any- The European Commission anticipated in a thing and everything, but we will be pleased if the 2008 communication on offshore wind energy that nal programme will model the most likely sce- "offshore wind can and must make a substantial narios,” says Dr Hasager. “We are therefore happy contribution to meeting the EU's energy policy ob- to admit that we plan to omit lots of things,” she jectives through a very signicant increase - in the adds. “Too much software has too many function- order of 30-40 times by 2020 and 100 times by alities and then they are not used.” In short, “we 2030 - in installed capacity compared to today". want a software that gets reliable results,” insists If this is to be achieved, large amounts of offshore Dr Hasager. wind farms will have to be built in the coming

WIND DIRECTIONS | November 2013 41 | technology corner |

years with clusters of wind farms appearing at sent directly from one database to the software favourable locations, like in the German Bight and needed,” she says. Because of this slightly more Dogger Bank off the UK coast. long-winded approach, it will take around two

Photo: Charlotte Hasager Moreover, part of the EERA-DTOC project’s brief years to fully develop the tool. is that it will contribute to the development of off- The team also wants to add real power shore wind power as required by the EU’s Strategic production data to the software. “It is always Energy Technology (SET) Plan, which aims to ac- difcult for software to compare power produc- celerate the development and deployment of cost- tion data as this information is often classied,” effective low carbon technologies. Agreed in 2010, says Dr Hasager. But she insists that “it is really one of the aims of the plan is the “development of important to get this data shared”. The project more accurate mapping of wind resources and of will therefore use measurements taken by the capacity potentials in Europe including hostile and Fraunhofer Institute for Wind Energy and Energy Dr Hasager: the new tool complex environments,” notably offshore. System Technology (IWES), one of the partner’s in will run 20 scenarios with These challenges are being dealt with by six the project. The institute has a ship equipped with one click working groups and their ndings will be pre- light detection and ranging (Lidar) technology sail- sented during a series of seminars and workshops ing around near windfarms to measure the wake organised by EWEA throughout the length of and it will feed this data back to the EERA-DTOC the project. The rst EERA-DTOC workshop took team. place in London on 6 June 2013 and the next After all this information has been collected, update will be given during a seminar given by the the plan is that the software will then “take ten to project team on 19 November 2013 in Frankfurt, 20 likely scenarios, run them and compare them,” Germany. says Dr Hasager. A developer will then be able Dr Hasager and her team are now focussed on to take this data and estimate how much power “integrating the different pieces of software” that could be generated from different scenarios and they want to put together as a single piece of kit. at what cost, and which scenario would be best “We want to avoid a ‘copy and paste’ process from for its business. She adds that the project already software to software and instead get information has ten wake models that have been compared to datasets for two large offshore wind farms and that “we can now explain how they are behaving”. The nal question that will have to be an- swered before the project is completed is who will be allowed to use the tool and how they will be able to view it. “We still have to decide exactly

Photo: E.ON how access to the tool will be work, but it won’t be open access,” states Dr Hasager. This is because “there will be some costs involved in running the software as somebody will have to be paid to update information and to help companies run the programme correctly,” she explains. Even if the nal tool will be available at a cer- tain cost, this is unlikely to deter developers and others in the wind industry from using it given the advantages it seems set to bring, and the fact it will be offering a unique service. “Nobody can run 20 pieces of software, they get tired just thinking As offshore wind grows, it is about it, and we hope that with our new product, essential to know how best they will be able with just one click decide exactly to position the turbines which software they want to run,” concludes Dr Hasager condently. n

42 WIND DIRECTIONS | November 2013 EWEA Technology Workshops

Wind Power Forecasting 3-4 December 2013, Rotterdam, The Netherlands

Session topics:

• The end users’ requirements

• Numerical weather prediction models

models and operational systems

• Integrating forecasts in business processes

• How important will forecasting be at 200 GW?

www.ewea.org/workshops

This two-day workshop will focus on technical challenges related to onshore and offshore wind power forecasting and examine how to integrate forecasting into business processes.

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EREC2013 Europe’s Renewable Energy Policy Conference 28 November 2013, Brussels, Belgium

Join Europe’s leading biennial Renewable Energy Policy Conference, EREC2013, that has grown since its first edition in 2004 to become Europe’s major occasion for exchange and interaction between industry, research and policy.

EREC2013 will feature: • boosting jobs, growth and innovation by investing in renewable energies • the question of whether Europe is on track to meet its 2020 targets • the ambitious 2030 framework to provide stability for investors

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Register now and make the right connections: www.erec2013.org | feature | Thirty- ve years of Wind Directions

Then and now - a quick flashback of covers past and present

2001 2002 2003 2004

Launched in 1978, as from 2014 Wind Directions will no longer exist as a paper 2005 magazine (but will be replaced by an exciting newsletter!). What have some of the highlights of those 35 years been?

1978: Wind Directions starts life as the newsletter of the (then) British Wind Energy Association, edited 2006 by William Grylls, designer of vertical axis turbines 1986 to 1996: Wind Directions is produced by David Lindley, then EWEA president and BWEA chairman 1994: Wind Directions is printed in colour 1996: The late Crispin Aubrey, journalist and cam- 2007 paigner, takes over as editor 1997: It becomes solely an EWEA publication 2004: Wind Directions reports on new research from the European Renewable Energy Council predicting 20% renewables by 2020 – now a target at EU level 2008 2005: The magazine says that EU installed wind energy capacity tops 34 GW 2009 2008: Wind Directions interviews include Connie Hedegaard, then Danish minister, now EU Commissioner 2009: Chris Rose from EWEA’s communications team becomes editor, followed by Sarah Azau 2012: Wind Directions celebrates 30 years of the 2010 wind energy industry and of EWEA n

2011 2012

T H E E U R O P E A N WIND INDUSTRY MAGAZINE

November 2013 Volume 32/No 4 Read older issues of Wind Directions 2013 on www.ewea.org/wd

With especial thanks to the late Crispin Aubrey, Chris Rose, Zoë Casey and INTERVIEW 2030 targets Corinne Guichart at Page In Extremis XABIER ETXEBERRIA Bringing certainty to CEO offshore, Gamesa the wind industry

WIND DIRECTIONS | November 2013 45 | EWEA news |

Say goodbye to winter and hello to Barcelona at the EWEA 2014 Annual Event

PowerPoint slides. A Poster presentation March, 18:00-20:00, at Fira de Barcelona uses a large-format poster that will be dis- Gran Via, Exhibition halls. It promises a played prominently throughout the event. A great opportunity to continue doing busi- dedicated poster viewing session will take ness with top wind industry professionals place during the conference and present- after the busy event hours come to an ing authors are required to be present for end. The exhibition area will play host to this. a more informal style of networking, with The review and selection procedure participants encouraged to meet one ends in December with authors notied of another against a relaxed backdrop of abstract results in late December. music, drinks and conversation. Attending the EWEA Annual Event is The Conference Dinner takes place Photo: iStock also the opportunity to meet Europe’s 12 March, 20:00-23:00, at the Maritime industry leaders and policy-makers that Museum. Here you can enjoy a night in As winter winds down across Europe, the take the decisions and dene the strate- the largest, most complete conserved EWEA 2014 Annual Event in Barcelona is gic direction for wind energy activities in shipyard in the world. The Maritime mu- certain to usher in spring with an interna- Europe. seum is located in the former shipyards of tional platform for the wind energy industry The comprehensive conference pro- Drasannes, where ships were constructed to showcase and demonstrate its latest gramme will not only deliver cutting-edge to support Barcelona’s naval supremacy products and services. technological knowledge, but also lively throughout the Mediterranean expansion. Held 10 to 13 March, the annual debates on European policy, markets and Enjoy dinner in an impressive Gothic build- European congress of the wind industry nancial issues. ing where you will be able to admire faithful will, as usual, host an international exhibi- Building on the success of the 2013 large-scale reproductions of vessels such tion as well as featuring a broad confer- Vienna edition, which attracted more than as the royal galley Admirals of the Juan de ence programme and unrivalled networking 400 exhibitors and over 8,500 participants Austria. opportunities. from the entire wind energy supply chain The accompanying exhibition is also a The 2014 edition of the EWEA annual and from over 40 different countries, EWEA great venue for companies to display some event will have a special focus on the ex- 2014 will take place at Fira de Barcelona of the work that they are most proud of. change of experience between Europe and Gran Via. The event venue is situated only Outside exhibition space to demonstrate other continents and on all the business a short distance from both Barcelona’s El large equipment is also available. opportunities generated for participants, Prat international airport (7 km) and the 80% of whom will come from outside the city centre itself, making it an ideal location Visit www.ewea.org/annual2014 for further information. In hosting country. for international and domestic business. order to book a stand, please contact the EWEA sales team EWEA is currently working with the The Opening Reception will occur 10 at [email protected] Annual Event track chairs, Henrik Stiesdal, Chief Technical Ofcer at Siemens Wind Power, Mike Anderson, Group Technical Director at RES Group, and Michael Muskulus, Vice President of European Academy for Wind Energy (EAWE), to de- velop the technical conference sessions. Abstracts are being accepted for top- ics under the two tracks. The Science & Research track deals with long-term, de- tailed and in-depth research and analysis, as well as the development and improve- ment of design tools. The Technology track deals with the latest technological develop- ments and the direct real-world application of results and tools. An abstract may lead to one of two types of presentations. An oral presentation consists of a 5- to 15-minute speaking Photo: EWEA/Bickley slot in a conference session supported by Business can boom at EWEA Annual Events

46 WIND DIRECTIONS | November 2013 | EWEA news |

More wind-power workers needed to help fuel sector’s fast-paced growth rates

EWEA contributed to and helped publish in August a new report that found a shortage of 7,000 qualied personnel required by the European wind energy sector each year. The 30-page report — 'Workers wanted: The EU wind energy sector skills gap' — also warned that gure could in- crease to 15,000 by 2030 if the number of graduates taking courses relevant to the industry does not rise. Nearly 50,000 additional trained staff will be needed by the industry by 2030, the TPWind report said, predicting opera- tions and maintenance will become the greatest source of new jobs and demand for trained staff. To counter this skills gap, the report recommended that current and potential wind-power employees’ skills in science, technology, engineering and mathemat- Photo: REpower ics courses be improved through tar- geted courses run by external providers. It also found that wind industry expe- level, and increasing the emphasis on said. “It will also help to boost economic rience should be introduced into training O&M training. growth and create hundreds of thou- and education through short-term se- “By taking these steps and ensuring sands of jobs.” condments or visiting lecturers. that the European wind energy industry The main author of the report was In addition, the report recommended has access to a well trained workforce, Oscar Fitch-Roy of GL Garrad Hassan. expanding the cohort of graduate level wind energy will be able to continue to wind energy generalists, harmonising play a pivotal role in the transition to a Download the electronic version: vocational education and training at EU renewable energy system,” the report www.ewea.org/report/workers-wanted

EWEA Technology Workshop on wind power forecasting Photo: EWEA/Kevin McFeely Photo: EWEA/Kevin From R&D to commercial offering, will be held 3 and 4 December in EWEA’s second technology workshop of Rotterdam, The Netherlands. 2013 focuses on technical challenges re- The workshop will cover topics includ- lated to wind power forecasting onshore ing the end users’ requirements; nu- business processes; and how important and offshore. merical weather prediction models; wind will forecasting be at 200 GW? Organised in response to requests power forecasting models and opera- from EWEA's members, the workshop tional systems; integrating forecasts in More information: www.ewea.org/techworkshops n

WIND DIRECTIONS | November 2013 47 | new members |

EWEA welcomes new members

Access Revenues North America (United States) IHC Hydrohammer B.V. (The Netherlands) KIC Innoenergy Iberia (Spain) Access Revenues helps you to access new revenues IHC Hydrohammer, IHC Handling Systems and IHC Sea Set up by the European Institute of Innovation and in North America. They guarantee delivery of a prede- Steel form part of the IHC Merwede group of companies Technology (EIT), KIC InnoEnergy is involved in a range termined number of quali ed, veri ed, educated and and provide a full range of standard or customised off- of activities in the sustainable energy eld. They help to interested prospects. If they don’t deliver on time, they’ll shore foundation installation equipment. deliver products and services, develop new businesses keep working until they do, at their own expense. Access www.ihcmerwede.com and foster innovation and entrepreneurship through the Revenues also trains your team on market-leading strate- integration of higher education, research and business. gies to effectively sell to American businesses – the same Industrieel Klimmen (The Netherlands) CC Iberia focuses on renewable energy activities in Spain training as used by Fortune 100 companies. Industrieel Klimmen B.V. provides services for work at and Portugal. www.accessrevenues.com height, including equipment, inspection and training. www.kic-innoenergy.com Working at height, rescue and custom safety trainings are Blue Green Wind Partners (Denmark) given by experts at specially equipped training facilities in Meteo-Logic (Israel) Blue Green Wind Partners is an associated company of Amsterdam and in-house trainings are also possible. An Meteo-Logic is a leading Machine Learning Forecasting Offshore Wind Capital (OWC) - a leading advisor and online tool guarantees round-the-clock access to inspec- (MLF) solution for the renewable energy industry. Meteo- transaction manager for potential offshore wind investors. tion and training certi cates. Logic’s outstanding prediction algorithm enables constant, They manage the entire renewables value chain, includ- www.industrieelklimmen.nl accurate power and weather forecasts for a speci c ing green elding, contracting, construction, operations, location – no site installation or real-time site connection acquisitions and nancial engineering. Their expertise ISEG (Spain) are required. Meteo-Logic’s Software as a Service (SaaS) covers the evaluation of investment assumptions and ISEG specialises in wind farm operation and maintenance, solution supplies round-the-clock forecast updates that consequences. integrated logistics, sale and repair of components and are available from any computer, phone or tablet. www.bgwind.com parts, as well as offering consultancy services. With head- www.meteo-logic.com quarters in Zaragoza (Spain), it has a growing international EIVA (Denmark) presence in France, Portugal, the United Kingdom, Ger- NENUPHAR (France) EIVA provides software, hardware and integrated solutions many, Italy, Latin America and the United States. NENUPHAR’s oating vertical axis wind turbines - “Verti- for most seabed-to-surface tasks in the offshore survey, www.iseg.com.es wind” - reduce oat cost and enhance performance. construction and services industry. NENUPHAR went into partnership with TECHNIP and EDF www.eiva.com JECS Access Ltd (United Kingdom) EN in 2009 to develop this innovative technology and is JECS Offshore Access provides scaffolding access and currently manufacturing a oating offshore wind turbine to Eolotec (Germany) encapsulated access and enclosures to the offshore wind be tested in 2015 (off Fos-sur-Mer in France). A oating Eolotec is an independent developer of mechanical solu- industry, delivering practical solutions for all stages of offshore wind farm planned for 2016 has been supported tions for the wind energy sector, specialising in wind tur- offshore wind projects. within the NER300 framework. bine bearing systems. With a unique design approach for www.jecsaccess.com www.nenuphar-wind.com large bearings, Eolotec provides reliable, customised and cost-ef cient solutions for various applications. KazEnergy Perspective (Kazakhstan) Njord Offshore (United Kingdom) www.eolotec.com KazEnergy Perspective was founded as a project analytical Njord Offshore manages DNV classed crew transfer company with the purpose of providing all the necessary vessels for the offshore wind farm sector. The aim is to European Weather Consult (Germany) technical and analytical data for the successful imple- provide the offshore wind farm market with high quality EWC, private weather service provider founded in 1999, mentation of projects in the eld of renewable energy, offshore wind farm support and crew transfer vessels. processes highly accurate meteorological data into cus- which is one of the growing segments of power in Kazakh- The vessels are operated and maintained to the highest tomer-tailored prediction and statistical products for the stan. The company can perform high-quality work on the standards to ensure comfort and safety. energy sector. EWC meets the market’s needs with proba- FS, pre-FS, measure the impact on environment, make www.njordoffshore.com bilistic multi-model wind power prediction systems, wind project of investment in renewable energy and in fact be a time series including long-term correction of measured guide for investors in Kazakhstan’s energy market wind data (MCP), historical re-analysis data, accurate weather forecasts and Wind Energy Indices. www.weather-consult.com

48 WIND DIRECTIONS | November 2013 Events

OFS - Your Optical Fiber Solutions Partner (United Sanyo Tranding (Japan) States) Founded in 1947, Sanyo Trading is a Japanese OFS is a designer, manufacturer and provider of opti- import-export company that is now promoting Eco- cal ber, optical ber cable, connectivity, FTTX and Technology® - a vertical wind turbine for urban power EWEA OFFSHORE 2013 specialty photonics solutions. OFS’s marketing; sales, generation. 19 – 21 November 2013 manufacturing and research teams provide forward- www.sanyo-trading.co.jp Frankfurt, Germany looking, innovative products and solutions in areas www.ewea.org/events including Telecommunications, Medicine, Industrial VizionZ Engineering (The Netherlands) E-mail:[email protected] Automation, Sensing, Government, Aerospace and VizionZ is a Dutch engineering company delivering Tel: +32 2 213 1860 Defense applications. OFS provide reliable, cost effec- innovative solutions for the offshore wind foundations tive optical solutions to enable their customers to meet market. Thier technology improves the dynamic and the needs of today’s and tomorrow’s digital and energy static characteristics of existing designs, leading to a consumers and businesses. decrease in fatigue and an increase in load capacity. EWEA Technology www.ofsoptics.com They are currently focusing on solutions for new instal- Workshop: lations to reduce costs Wind Power Forecasting Orenda Energy Solutions (Canada) www.vizionz.nl 3 - 4 December 2013 Orenda Energy Solutions designs and manufactures Rotterdam, The Netherlands fully integrated wind turbine solutions for the rural seg- Volker Stevin Offshore (The Netherlands) www.ewea.org/events/workshops/ ment of the small to medium distributed wind industry. Volker Stevin Offshore is a full service construction wind-power-forecasting The company holds a patent for their fully integrated company, focusing on offshore wind foundation solu- Email: [email protected] hinged hydraulic tower system that signi cantly re- tions. Their in-house design and engineering experts Tel: +32 2 213 1844 duces the cost of ownership and mitigates risk. operate alongside operational teams to ensure total www.orendaenergy.com integration of the underwater foundation scope. www.vsoffshore.com ROVOP Ltd (United Kingdom) ROVOP is an independent and specialist provider of Zeeland Seaports (The Netherlands) underwater Remotely Operated Vehicle (ROV) services With easy access to northern Europe and the open to the offshore wind industry. ROVOP provides market sea, Zeeland Seaports (Vlissingen and Terneuzen) is EWEA 2014 Annual Event leading equipment, manned by highly experienced ROV the European hub for cargo handling. Flexible and ef- 10 – 13 March 2014 professionals. With a successful track record in provid- cient services and a focus on customer care are also Barcelona, Spain ing ROV services, from support of the initial survey to reasons for choosing Zeeland Seaports. With many www.ewea.org/annual2014 the installation of export and inter-array cables, they specialised companies based in the area, it is one of Email: [email protected] also provide construction support for projects such as the major ports in the region to handle offshore wind Tel: +32 2 213 1860 Anholt, Global Tech 1, Humber Gateway, London Array, cargo. Meerwind, Nordsee Ost, Thorntonbank, Walney and www.zeelandseaports.com n West of Duddon Sands. www.rovop.com

Photo: zentilia - Fotolia.com

WIND DIRECTIONS | November 2013 49 | the last word | We can’t afford to delay the development of offshore wind

013 has been another exciting year to be decade. And the levelised costs of offshore wind 2involved in the offshore wind sector as the energy could drop by another 40% to approxi- industry continued to take major strides for- mately ten eurocents per kilowatt-hour over the ward. The inauguration of the 630 MW London medium term. Since the technology is still rela- Array project in July 2013 was one of the major tively young, considerable cost-saving potential milestones for the year. It is currently the world’s can still be realised. largest operational offshore wind power plant. The But this will require predictable conditions that total installed offshore eet continues to grow ensure a stable project pipeline for companies and has now reached roughly 6 gigawatts (GW), in the industry. The offshore sector is on its way up from 4.3 GW just one year earlier. Another 21 to becoming a mature industry that operates offshore wind power plants, which will boost ca- cost-effectively with serial production. Yet stable pacity an additional 6 GW, are under construction orders that fuel the necessary growth are needed By Michael or in preparation. Many major nancial players to continue this development. This is the only way Hannibal, like the European Investment Bank and public to exploit all potential for optimisation – for wind CEO Offshore, pension funds are investing in offshore wind as it turbines themselves and for project management, Siemens Wind Power grows in strategic economic importance. transportation, installation processes, founda- According to the latest Offshore Wind Industrial tions and special vessels. Strategy report, published by the UK govern- ment and industry, the offshore industry has the A main pillar of tomorrow’s energy supply potential to create 30,000 jobs and contribute Offshore wind is a young and pioneering industry more than €8 billion to the economy in the UK that creates jobs, reduces fossil fuel imports alone by 2020. In Germany, the sector already and offers Europe huge export opportunities as employs 18,000 people. Industry associations es- a world leader. It also offers European countries timate that this num-ber could increase to 33,000 a great chance to meet their renewable energy by 2021. Furthermore, it is estimated that the targets. For the time being, offshore wind requires revenues of Germany’s offshore industry could higher initial investments, yet also provides nearly

quadruple to €22 billion by 2021. These numbers CO2-free power generation, a high level of reliabil- are so impressive that one could almost believe ity and a remarkably high yield per wind turbine. offshore wind is right on track. These merits make it a main pillar of tomorrow's energy supply. Challenges in going forward If we are serious about climate protection, we But the truth is that the offshore wind sector can’t afford to delay the development of offshore is being challenged by declining political sup- wind. European governments need to provide port and regulatory uncertainty in key markets a stable regulatory framework that fosters the “The offshore like Germany, where rising electricity prices ongoing development of offshore wind projects. wind sector have fueled many of this year’s federal election In other words, Europe should move offshore as debates. Some political parties associate these quickly as possible to enable the industry to bring is being increases primarily with renewable energies and down costs and reap the macro-economic and challenged in particular offshore wind. However, the indus- environmental benets of this technology. It’s cru- try has understood that it must bring costs for cially important that all stakeholders take up the by declining offshore wind power down and needs to become challenge and join forces to push development. political independent from subsidies. Cost reductions are Succeeding here would be a major milestone to- already under way. ward reaching the goal of climate protection. This support and Although still in its early days, offshore wind is worth every effort and can’t be delayed. regulatory is already one of the most advanced emerg- ing technologies. So far, the wind industry has Michael Hannibal is speaking at EWEA OFFSHORE 2013: uncertainty.” a track record of reducing costs 40% every www.ewea.org/offshore2013 n

50 WIND DIRECTIONS | November 2013 What needs only 50% as much space?

The Winergy HybridDrive is an integrated unit – gearbox and gen- erator – with an extremely high power density, making it not only smaller, but also signi cantly lighter than a conventional drivetrain. While you ask yourself how to put the space gained to good use, or even how to implement it in an optimised nacelle weight, simply pro t from further advantages such as the high energy yield due to an e ciency ratio of over 96%, the simpli ed logistics and the huge cost-saving potential. Further information is available under www.winergy-group.com