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UK approves over 7GW of offshore wind
Wind NEWS UK approves over 7GW of offshore wind The UK government has approved up to 7.2 GW of generating capacity from wind turbines at 15 offshore sites. The Crown Estate, which leases the seabed around Britain, announced details of the sites in three strategic areas of shallow sea: four projects in the Thames Estuary; eight in the Greater Wash; and three in the North West. Of the 15 windfarms, three are outside territorial waters and include the world's largest proposed offshore facility in the Greater Wash, 40 km off the coast of Lincolnshire, which could feature 250 turbines. The windfarms are expected to be generating electricity within seven years and will aggregate between 5.4 and 7.2 GW of capacity, sufficient to meet demand in one of every six homes in Britain. Late last year,
the government announced proposals to increase financial support for green power by extending and raising the level of the Renewables Obligation and giving more financial stability to investors. In July, it asked The Crown Estate to seek developers for the offshore windfarms. The new Energy Bill, currently being debated in Parliament, will allow developers to build windfarms more than 12 nautical miles out to sea, beyond territorial waters. Before offshore windfarms can be built, developers must obtain approvals under the Electricity Act, Food & Environment Protection Act, Coast Protection Act, Transport & Works Act and FEPA. Applications are subject to public consultation. This will be the second round of leases for offshore windfarms, the first in December 2000 approving 18 proposals. The first windfarm to be constructed from the first Round is a 60 MW North Hoyle facility near Rhyl, which opened in November.
US, Spain and UK to lead wind growth? Photo shows Nine Canyon wind farm, Washington State, USA (RES Ltd, UK)
Slower growth and consolidation of wind The wind energy market grew 10% globally in 2003, but is expected to post a decline in 2004 according to a new study by Emerging Energy Research (EER) called Global Wind Energy Markets and Strategies, 20022010. Long term prospects are still bright, however, with growth expected to resume in 2005 as new markets gain steam. Wind energy capacity worldwide grew nearly 7,500 MW in 2003, according to EER estimates, up from 6,807 MW of added capacity in 2002, for a total market of nearly $8.0 billion. Germany, Spain and the United States lead the way. But the market for wind energy is expected to decline slightly in 2004 as a result of contraction in the U.S. market, due to the expiration of the Production Tax Credit, and a slowdown in Germany. The German market is still the world's largest, but new installations fell an estimated 23% in 2003 and are expected to fall off dramatically from a peak of 3,247 MW added in 2002 to just over 2,000 MW in 2004, according to the study. EER predicts that, on a global basis, growth will resume by 2005 as the offshore wind
12 reFOCUS
January/February 2004
sector begins to take off in Europe, and as the U.S. market rebounds. The company estimates the market will continue to expand, reaching $10 billion by 2005 and $15 billion annually by the year 2010. The AsiaPacific region will see the most significant growth over the decade as key markets begin to build scale. The wind energy market's centre of gravity is shifting away from Germany and Denmark, with Spain, the U.S. and the UK expected to lead a broad shift in growth in other parts of Europe, North America, Asia and the Pacific. Pockets of growth are also expected to emerge in Latin America, Africa and the Middle East. A significant number of countries, including Canada, the UK, Australia and Japan, are entering a key stage of wind development that will see accelerated growth and increased economies of scale for the wind industry as a whole. Only a few countries, such as Germany and Denmark, face market maturity pressures. These two countries represent the largest installed base and highest penetration of wind power, respectively. Both are aggressively pursuing the offshore sector to maintain growth levels. (E-mail: [email protected]) www.emerging-energy.com
www.re-focus.net
the government announced proposals to increase financial support for green power by extending and raising the level of the Renewables Obligation and giving more financial stability to investors. In July, it asked The Crown Estate to seek developers for the offshore windfarms. The new Energy Bill, currently being debated in Parliament, will allow developers to build windfarms more than 12 nautical miles out to sea, beyond territorial waters. Before offshore windfarms can be built, developers must obtain approvals under the Electricity Act, Food & Environment Protection Act, Coast Protection Act, Transport & Works Act and FEPA. Applications are subject to public consultation. This will be the second round of leases for offshore windfarms, the first in December 2000 approving 18 proposals. The first windfarm to be constructed from the first Round is a 60 MW North Hoyle facility near Rhyl, which opened in November.
US, Spain and UK to lead wind growth? Photo shows Nine Canyon wind farm, Washington State, USA (RES Ltd, UK)
Slower growth and consolidation of wind The wind energy market grew 10% globally in 2003, but is expected to post a decline in 2004 according to a new study by Emerging Energy Research (EER) called Global Wind Energy Markets and Strategies, 20022010. Long term prospects are still bright, however, with growth expected to resume in 2005 as new markets gain steam. Wind energy capacity worldwide grew nearly 7,500 MW in 2003, according to EER estimates, up from 6,807 MW of added capacity in 2002, for a total market of nearly $8.0 billion. Germany, Spain and the United States lead the way. But the market for wind energy is expected to decline slightly in 2004 as a result of contraction in the U.S. market, due to the expiration of the Production Tax Credit, and a slowdown in Germany. The German market is still the world's largest, but new installations fell an estimated 23% in 2003 and are expected to fall off dramatically from a peak of 3,247 MW added in 2002 to just over 2,000 MW in 2004, according to the study. EER predicts that, on a global basis, growth will resume by 2005 as the offshore wind
12 reFOCUS
January/February 2004
sector begins to take off in Europe, and as the U.S. market rebounds. The company estimates the market will continue to expand, reaching $10 billion by 2005 and $15 billion annually by the year 2010. The AsiaPacific region will see the most significant growth over the decade as key markets begin to build scale. The wind energy market's centre of gravity is shifting away from Germany and Denmark, with Spain, the U.S. and the UK expected to lead a broad shift in growth in other parts of Europe, North America, Asia and the Pacific. Pockets of growth are also expected to emerge in Latin America, Africa and the Middle East. A significant number of countries, including Canada, the UK, Australia and Japan, are entering a key stage of wind development that will see accelerated growth and increased economies of scale for the wind industry as a whole. Only a few countries, such as Germany and Denmark, face market maturity pressures. These two countries represent the largest installed base and highest penetration of wind power, respectively. Both are aggressively pursuing the offshore sector to maintain growth levels. (E-mail: [email protected]) www.emerging-energy.com
www.re-focus.net