‘Mobilising EUR 1 Trillion in Investments’ | North Sea Countries, Industry, TSOs to Ink Offshore Wind Pact
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Government officials from Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and the UK are set to sign a declaration confirming the ambition to build 300 GW of offshore wind in the North Seas by 2050, and an investment pact with the offshore wind industry and transmission system operators (TSOs) that is said to mobilise EUR 1 trillion in economic activity.
These three paragraphs add a lot of powerful detail.
Under the Offshore Wind Investment Pact for the North Seas, to be signed today (26 January) at the North Sea Summit in Hamburg, governments of the nine North Sea countries will commit to building 15 GW of offshore wind per year from 2031 to 2040.
The heads of state and energy ministers will also vow to de-risk offshore wind investments through a commitment to provide two-sided Contracts for Difference (CfDs) as the standard for offshore wind auction design. The pact also commits governments to remove any regulatory obstacles to power purchase agreements (PPAs), according to WindEurope, which will sign the pact on behalf of the industry.
On the industry’s side, the commitment is to drive down the costs of offshore wind by 30 per cent towards 2040, mobilise EUR 1 trillion of economic activity for Europe, create 91,000 additional jobs and invest EUR 9.5 billion in manufacturing, port infrastructure and vessels.
These two paragraphs say something about cost reductions.
The cost reduction of offshore wind is planned to be achieved through scale effects, lower costs of capital and further industrialisation supported by clarity and visibility on the project pipeline.
The transmission system operators (TSOs) will identify cost-effective cooperation projects in the North Sea, including 20 GW of promising cross-border projects by 2027 for deployment in the 2030s.
I hope there is a project management system, that can step into this frenzy, just as Artemis did in the 1970s with North Sea Oil and Gas.
The BBC has reported the story under a title of UK To Join Major Wind Farm Project With Nine European Countries.
this is the sub-title.
The UK is set to back a vast new fleet of offshore wind projects in the North Sea alongside nine other European countries including Norway, Germany and the Netherlands.
These six paragraphs add more detail.
The government says the deal will strengthen energy security by offering an escape from what it calls the “fossil fuel rollercoaster”.
For the first time, some of the new wind farms will be linked to multiple countries through undersea cables known as interconnectors, which supporters say should lower prices across the region.
But it could prove controversial as wind farm operators would be able to shop around between countries to sell power to the highest bidder – potentially driving up electricity prices when supply is tight.
Energy Secretary Ed Miliband will sign a declaration on Monday at a meeting on the future of the North Sea in the German city of Hamburg, committing to complete the scheme by 2050.
Jane Cooper, deputy CEO of industry body RenewableUK, said the deal would “drive down costs for billpayers” as well as increasing “the energy security of the UK and the whole of the North Sea region significantly”.
But Claire Countinho, shadow energy secretary, warned “we cannot escape the fact that the rush to build wind farms at breakneck speed is pushing up everybody’s energy bills.”
Claire Coutinho, as an outsider at present and a member of a party out of Government had to say something negative, but her negotiations when she was UK Energy Minister with her German opposite number, which I wrote about in UK And Germany Boost Offshore Renewables Ties, seem very much a precursor to today’s agreement.
The Anonymous Widower 