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UK Government embraces feed-in tariffs
News/Roundup
UK Government embraces feed-in tariffs raising of the UK’s target to cut carbon emissions by 2050 from 60% to 80%. He also said that Renewable Energy Obligations (ROCs) are no longer meeting the urgent need to promote renewable energy. FiTs have already proved their potential in countries such as Germany and Spain, but the decision to include FiTs in the current Energy Bill is momentous news for the UK, a country whose Government has, over the past few years, constantly reiterated its commitment to the green agenda while resisting tougher targets and opposing FiTs. The sudden turning of the tide has been received with both surprise and joy by campaigning organisations. Philip Wolfe, director general of the Renewable Energy Association (REA), says, “the new tariff will give a big boost to communities, householders and businesses who want to contribute to our sustainable energy targets. This will complement the support already provided to bulk energy suppliers.”
Is it time for a FiT in the UK? New energy and climate change minister Ed Miliband says he thinks it could be.
In a dramatic U-turn, the UK Government, which has strenuously resisted renewable energy feed-in tariffs (FiTs) until now, finally endorsed the concept, thus acknowledging a role for small-scale electricity generation. And at the same time, Ed Miliband, secretary of state for the recently-created Energy and Climate Change department, announced the
In regard to FiTs for small scale electricity generation, Friends of the Earth’s climate campaigner, Dave Timms welcomed the move, but said more detail was needed. This summer the UK’s Carbon Trust said small wind turbines could provide up to 1.5 TWh of electricity annually – 0.4% of the total British electricity consumption – if 10% of household installs turbines at costs competitive with grid electricity (12p/kWh). A week after the new targets and FiT were announced, Prime Minister Gordon Brown said at the British Wind Energy Association
(BWEA) that the UK has overtaken Denmark in operational wind capacity, and that the UK has just notched up its third GW of installed wind capacity – a tripling from 2005. However, the grid is still an issue, and there was talk at the conference of super-grids which, by integrating capacity across Europe and Scandinavia, would help address intermittency. Although Gordon Brown stated in his opener that grid access would be addressed by his Government, it was not altogether clear where this money would come from. Then there was the question of the next renewables technology. While wind has come of age, wave and tidal power – part of BWEA’s remit – is still struggling, despite an already prolonged gestation. Commenting on the lack of funding and support for wave and tidal, Martin Wright, managing director of Marine Current Turbines (MCT) said, “there was the will during World War 2 to build hundreds of Spitfires very quickly. Why do we faff around now?” It will be a huge challenge to meet the 15% renewables by 2020 commitment for the UK, according to the regional development agency Regen South West (Regen SW). Based on current legislation (excluding the latest announcements), the agency predicts that the South West of England will see less than 5% of energy from renewables by 2020. Meeting a 15% or 20% target is possible within the South West, however, if big and rapid changes to national policy are made, and greater local support for renewable energy is created.
AMSC enters Turkish wind market American Superconductor Corporation (AMSC) is licensing its WT1650 wind turbine design to Turkish wind turbine manufacturer Model Enerji Ltd. Model Enerji will have exclusive rights to manufacture, sell, install, operate and maintain the WT1650 in Turkey, and has non-exclusive rights for surrounding Mediterranean and Eastern European countries. Model Enerji plans to use the 1.65 MW turbine design, which utilises a doubly-fed induction generator drive train. The first prototype is planned to be installed and commissioned mid-2009, and production will begin by the end of the same year. Subject to achieving certain volume production levels with the WT1650, Model Enerji also has a right of first refusal to license a proprietary 2 or 2.5 MW wind turbine design from AMSC 12
renewable energy focus
Windtec, which will utilise a full-conversion permanent magnet generator drive train. AMSC will receive royalty payments for the first 425 WT1650 turbines manufactures by Model Enerji, in addition to an undisclosed upfront licence fee. The company also has the right of first refusal to provide the electrical systems needed for all the wind turbines manufactured by Model Enerji. In a separate announcement, AMSC says it will also provide China’s XJ Group Corporation with designs for its 2 MW WT2000df doubly fed induction wind turbine under a “multi-milliondollar” contract. In addition to the upfront fee, AMSC also expects to provide core electrical components for the wind turbines manufactured by XJ Group. The Group initially expects to produce wind turbines for the Chinese market, but it also has the right to sell the WT2000df
November/December 2008
worldwide. The group plans to have its first prototype installed and commissioned by the end of 2009, and to begin shipping to customers in 2010. This autumn has also seen AMSC licensing its proprietary 1.65 MW and 2 MW doubly fed induction wind turbine designs to South Koreabased Hyundai Heavy Industries (HHI) Co., Ltd. HHI plans to commence production of the 1.65 MW wind turbines by the end of 2009, and will initially target the US market. However HHI also has marketing and sales rights to “dozens of countries around the world”, according to company sources. In addition to upfront license fees for each design, AMSC will receive royalty payments for the first several hundred 1.65 MW and 2 MW wind turbines produced by HHI. AMSC will also provide HHI with core electronic components for the 1.65 MW and 2 MW wind turbines manufactured by HHI.
UK Government embraces feed-in tariffs raising of the UK’s target to cut carbon emissions by 2050 from 60% to 80%. He also said that Renewable Energy Obligations (ROCs) are no longer meeting the urgent need to promote renewable energy. FiTs have already proved their potential in countries such as Germany and Spain, but the decision to include FiTs in the current Energy Bill is momentous news for the UK, a country whose Government has, over the past few years, constantly reiterated its commitment to the green agenda while resisting tougher targets and opposing FiTs. The sudden turning of the tide has been received with both surprise and joy by campaigning organisations. Philip Wolfe, director general of the Renewable Energy Association (REA), says, “the new tariff will give a big boost to communities, householders and businesses who want to contribute to our sustainable energy targets. This will complement the support already provided to bulk energy suppliers.”
Is it time for a FiT in the UK? New energy and climate change minister Ed Miliband says he thinks it could be.
In a dramatic U-turn, the UK Government, which has strenuously resisted renewable energy feed-in tariffs (FiTs) until now, finally endorsed the concept, thus acknowledging a role for small-scale electricity generation. And at the same time, Ed Miliband, secretary of state for the recently-created Energy and Climate Change department, announced the
In regard to FiTs for small scale electricity generation, Friends of the Earth’s climate campaigner, Dave Timms welcomed the move, but said more detail was needed. This summer the UK’s Carbon Trust said small wind turbines could provide up to 1.5 TWh of electricity annually – 0.4% of the total British electricity consumption – if 10% of household installs turbines at costs competitive with grid electricity (12p/kWh). A week after the new targets and FiT were announced, Prime Minister Gordon Brown said at the British Wind Energy Association
(BWEA) that the UK has overtaken Denmark in operational wind capacity, and that the UK has just notched up its third GW of installed wind capacity – a tripling from 2005. However, the grid is still an issue, and there was talk at the conference of super-grids which, by integrating capacity across Europe and Scandinavia, would help address intermittency. Although Gordon Brown stated in his opener that grid access would be addressed by his Government, it was not altogether clear where this money would come from. Then there was the question of the next renewables technology. While wind has come of age, wave and tidal power – part of BWEA’s remit – is still struggling, despite an already prolonged gestation. Commenting on the lack of funding and support for wave and tidal, Martin Wright, managing director of Marine Current Turbines (MCT) said, “there was the will during World War 2 to build hundreds of Spitfires very quickly. Why do we faff around now?” It will be a huge challenge to meet the 15% renewables by 2020 commitment for the UK, according to the regional development agency Regen South West (Regen SW). Based on current legislation (excluding the latest announcements), the agency predicts that the South West of England will see less than 5% of energy from renewables by 2020. Meeting a 15% or 20% target is possible within the South West, however, if big and rapid changes to national policy are made, and greater local support for renewable energy is created.
AMSC enters Turkish wind market American Superconductor Corporation (AMSC) is licensing its WT1650 wind turbine design to Turkish wind turbine manufacturer Model Enerji Ltd. Model Enerji will have exclusive rights to manufacture, sell, install, operate and maintain the WT1650 in Turkey, and has non-exclusive rights for surrounding Mediterranean and Eastern European countries. Model Enerji plans to use the 1.65 MW turbine design, which utilises a doubly-fed induction generator drive train. The first prototype is planned to be installed and commissioned mid-2009, and production will begin by the end of the same year. Subject to achieving certain volume production levels with the WT1650, Model Enerji also has a right of first refusal to license a proprietary 2 or 2.5 MW wind turbine design from AMSC 12
renewable energy focus
Windtec, which will utilise a full-conversion permanent magnet generator drive train. AMSC will receive royalty payments for the first 425 WT1650 turbines manufactures by Model Enerji, in addition to an undisclosed upfront licence fee. The company also has the right of first refusal to provide the electrical systems needed for all the wind turbines manufactured by Model Enerji. In a separate announcement, AMSC says it will also provide China’s XJ Group Corporation with designs for its 2 MW WT2000df doubly fed induction wind turbine under a “multi-milliondollar” contract. In addition to the upfront fee, AMSC also expects to provide core electrical components for the wind turbines manufactured by XJ Group. The Group initially expects to produce wind turbines for the Chinese market, but it also has the right to sell the WT2000df
November/December 2008
worldwide. The group plans to have its first prototype installed and commissioned by the end of 2009, and to begin shipping to customers in 2010. This autumn has also seen AMSC licensing its proprietary 1.65 MW and 2 MW doubly fed induction wind turbine designs to South Koreabased Hyundai Heavy Industries (HHI) Co., Ltd. HHI plans to commence production of the 1.65 MW wind turbines by the end of 2009, and will initially target the US market. However HHI also has marketing and sales rights to “dozens of countries around the world”, according to company sources. In addition to upfront license fees for each design, AMSC will receive royalty payments for the first several hundred 1.65 MW and 2 MW wind turbines produced by HHI. AMSC will also provide HHI with core electronic components for the 1.65 MW and 2 MW wind turbines manufactured by HHI.