Is This Better News For Offshore Wind Farm Developers?
Two months ago this article on offshoreWIND.biz was published, which was entitled Offshore Wind Developers Take A Pass On UK’s Fifth CfD Round As Maximum Bid Price Was Too Low.
This was the sub-heading.
The UK government has awarded 3.7 GW of renewable energy projects with Contracts for Difference (CfDs) in its fifth allocation round. Among the 95 new projects that secured CfDs are onshore wind, solar and tidal energy developments – and not a single megawatt of offshore wind.
These are the first three paragraphs of the article.
According to the government, the global rise in inflation and the impact on supply chains presented challenges for projects participating in this round. The government also noted that similar results have been seen in countries such as Germany and Spain.
The industry does not disagree, however, multiple players have voiced their disappointment that the government had not taken these pressures into account for this round and emphasised that the UK’s goal of having 50 GW of offshore wind and 5 GW of floating wind could now be jeopardised.
Last year, the UK awarded CfDs to 7 GW of offshore wind projects alone.
Today, articles with these titles and sub-headings were published on offshoreWIND.biz.
- 50 Developers Express Interest To Build Wind Farms Offshore Portugal
Fifty entities, including individual companies and consortia, from more than ten countries have submitted their expressions of interest to develop offshore wind projects in Portugal as the country prepares for its first auction.
2. Fugro To Survey Site For Lithuania’s First Offshore Wind Farm
Ignitis Renewables has awarded Fugro a contract to conduct a geophysical survey at Lithuania’s first offshore wind farm site.
3. Norway’s Offshore Wind Tender Attracts Seven Applications
Norway’s Ministry of Petroleum and Energy has received seven applications to participate in the tender for the Southern North Sea II offshore wind project area.
4. Project To Retrofit CTV With Hydrogen Fuel Cells Kicks Off
A project to retrofit a crew transfer vessel (CTV) with hydrogen fuel cells, to cut CO2 and NOx emissions while servicing offshore wind farms, has kicked off.
5.Terna Energy Secures Survey Permit for Wind Farm Sites Offshore Greece
Terna Energy has been granted one out of the two first exploration and survey licences issued for pilot offshore wind projects in Greece.
6. UK Increases Offshore Wind Strike Price Ahead Of Next Auction
The government of the United Kingdom has increased the maximum strike price for offshore wind projects in the next Contracts for Difference (CfD) auction by 66 per cent for fixed-bottom and by 52 per cent for floating wind projects.
All would appear to be positive stories.
- Story 1 is about success in Portugal. What are the Portuguese doing right?
- Stories 2 and 5 are about offshore wind development in new countries; Lithuania and Greece.
- Story 3 may not appear significant, but Terje Aasland, who is Norway’s Minister of Petroleum and Energy seemed pleased in the article.
- Story 4 is about development of new technology, which wouldn’t be done if the market was non-existent.
- Story 6 is surely good news for wind farm developers in the UK.
I did leave out three stories, one of which was negative and two were rather boring. But six out of nine isn’t bad.
Is it Getting Better All The Time, as The Beatles once sang?
Octopus Energy Forays Into German Offshore Wind Market With Butendiek Acquisition
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Octopus Energy’s generation arm has made its first offshore wind investment in Germany with the acquisition of a 5 per cent stake in the 288 MW Butendiek offshore wind farm from Ewz, the Zurich Municipal Electric Utility.
This paragraph introduces the wind farm.
Located 32 kilometres west of Sylt Island in the North Sea, the Butendiek offshore wind farm features 80 3.6 MW Siemens Gamesa wind turbines. The project has been operational since 2015, generating enough clean power for 370,000 homes.
It appears to be a mature smaller wind farm. As it has been operating for eight years, the electricity generates and any costs associated with the farm, will be well defined.
If someone made an investment, the return could probably be fairly accurately predicted.
These paragraphs outline Octopus’s strategy for investing in wind farms.
According to Octopus Energy, the deal marks the next step in the company’s global offshore wind strategy and follows its decision to channel more than EUR 1 billion of investment into green energy infrastructure in Germany by 2030.
Since entering the market last year, the company invested in four onshore wind farms with a combined capacity of 100 MW.
Octopus Energy plans to unleash USD 20 billion in offshore wind investment globally.
Besides Germany, the company invested in offshore wind farms in the UK and the Netherlands, as well as in developers of new offshore wind projects including Norway, Sweden, and South Korea.
In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I explain how Aviva invest in wind farms to get a return to back up their pension and insurance businesses.
As Octopus probably understand wind farms as well as, if not better than Aviva, what better place is there for the company to invest their spare cash and customers’ balances?
Octopus and Aviva are almost showing how wind farms can be used as deposit accounts, that generate a predicable return.
I suspect that other assets like energy storage, interconnectors and solar farms, where there is a history of electricity flows and maintenance costs, can also be run as deposit accounts for investors.
I can also see individuals being able to put their money into a bank account backed by renewable assets.
Note.
Crown Estate Mulls Adding 4 GW Of Capacity From Existing Offshore Wind Projects
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The Crown Estate has revealed that it is taking steps to enable the generation of up to an additional 4 GW of electricity from several offshore wind projects in development, within the timeframe of the 50 GW 2030 target.
These are the first two paragraphs.
This follows requests from the developers of seven offshore wind farm projects who believe additional capacity can be generated from the areas of the seabed they hold existing rights for.
According to the Crown Estate, the technology has advanced and more capacity could be developed at projects that are already underway.
The seven wind farms are.
- Awel y Môr – Estimates 500 MW – Fixed – RWE
- Dogger Bank D – 1320 MW – Fixed – SSE Renewables, Equinor
- Dudgeon and Sheringham Shoal Extension – 719 MW – Fixed – Equinor
- Five Estuaries – TBD – Fixed – RWE
- North Falls – 504 MW – Fixed – SSE Renewables, RWE
- Rampion 2 – 1200 MW – Fixed – E-ON
Note.
- The Dudgeon and Sheringham Shoal Extensions seem to have been combined.
- One website connected to the wind farm, gives Five Estuaries as 353 MW.
- All are fixed wind farms.
- All are by large, established developers.
The total size is 4596 MW, using 500 MW for Awel y Môr and 353 MW for Five Estuaries.
Uprating by 8596/4596 could give these capacities.
- Awel y Môr – 935 MW
- Dogger Bank D – 2469 MW
- Dudgeon and Sheringham Shoal Extension – 1345 MW
- Five Estuaries – 660 MW
- North Falls – 943 MW
- Rampion 2 – 2244 MW
The total size is 8596 MW
Conclusion
This seems to be a sensible way to increase offshore wind capacity.
Aker Solutions Gets Vattenfall Nod To Start Norfolk Vanguard West Offshore Platform
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Aker Solutions has been awarded a limited notice to proceed contract from Vattenfall for the Norfolk Vanguard West offshore wind farm in the UK. The contract has a balanced risk-reward profile based on principles for long-term collaboration.
Vattenfall seems to be a bit stop and go on their two Norfolk wind farms; Norfolk Vanguard and Norfolk Boreas.
- In Vattenfall Selects Norfolk Offshore Wind Zone O&M Base, I talk about how Yarmouth has been selected as Vattenfall’s O&M Base.
- In Vattenfall Stops Developing Major Wind Farm Offshore UK, Will Review Entire 4.2 GW Zone, I talk about how Vattenfall have put Boreas on hold and they will be reviewing the whole Norfolk Zone.
These four paragraphs outline the work.
The scope of work for Aker Solutions includes the engineering, procurement, construction, and installation (EPCI) of the high voltage direct current (HVDC) offshore substation.
The fabrication of the topside will be executed in a joint venture with Drydocks World Dubai, and the substructure will be fabricated at Aker Solutions’ yard in Verdal, Norway.
Located more than 47 kilometres from the Norfolk coast and with an installed capacity of 1.4 GW, Norfolk Vanguard West will be the first phase of Vattenfall’s Norfolk Offshore Wind Zone, which also includes the Norfolk Vanguard East and Norfolk Boreas developments.
The Norfolk Vanguard West offshore wind farm is subject to regulatory approvals and Vattenfall’s final investment decision.
Note that Vattenfall are now talking about three wind farms; Norfolk Vanguard West, Norfolk Vanguard East and Norfolk Boreas.
These three paragraphs talk about finance and costs from Aker Solutions point-of-view.
According to Aker Solutions, the company will at this stage book a contract value of about NOK 4 billion (about EUR 334 million) in the fourth quarter of 2023 in the Renewables and Field Development segment, reflecting the compensated work that is to be performed until the expected final investment decision.
Following the award, the total contract value for Aker Solutions is estimated to be about NOK 6 billion.
“The development of the entire Norfolk Offshore Wind Zone could ultimately require up to three HVDC platforms in succession, which would improve the long-term predictability and give positive repeat effects and standardization within the supplier industry,” said Sturla Magnus, Executive Vice President of New Build at Aker Solutions.
Could it be that a 3 x NOK 6 billion or £1.3 billion order has convinced Aker Solutions to invest alongside Vattenfall in the three Norfolk wind farms?
This map shows the two farms in relation to the coast.
Note.
- The purple line appears to be the UK’s ten mile limit.
- Norfolk Boreas is outlined in blue.
- Norfolk Vanguard is outlined in orange and has two parts; West and East.
- Cables will be run in the grey areas.
This second map shows the onshore cable.
Note.
- The cables are planned to come ashore between Happisburgh and Eccles-on-Sea.
- Bacton is only a short distance up the coast.
- The onshore cable is planned to go from here across Norfolk to the Necton substation.
This layout would appear to need only one offshore cable for all three wind farms.
Conclusion
Has Aker stepped in to rescue Vattenfall’s 4.2 GW project?
UK Companies Forge O&M Services Alliance
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
RES, GEV Wind Power, Outreach Offshore, and Rix Renewables have launched the Offshore Wind O&M Partnership (OWOP) to supply a complete package of long-term operations and maintenance (O&M) services to offshore wind asset owners.
These two paragraphs outline the deal.
The Partnership aims to reduce the complexity and resource intensity associated with the traditional way of subcontracting for multiple O&M services, allowing asset owners to benefit from a much more strategic approach while also ensuring execution to the highest safety standards, according to the press release.
Through just one contract, asset owners will have access to all typical turbine, blade, substation, and balance of plant O&M services as well as workboats and advanced digital tools.
It all sounds like a good deal to me.
TenneT Installs Artificial Reefs At Hollandse Kust West Alpha Offshore Netherlands
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The Dutch-German transmission system operator (TSO), TenneT, has placed several artificial reefs at the Hollandse Kust West Alpha offshore transformer platform in the Dutch North Sea.
These three paragraphs explain the project and the purpose of the reefs.
The platform will connect the Ecowende consortium (Shell/Eneco) wind farm to the high-voltage grid.
In collaboration with Equans/Smulders, TenneT placed two types of artificial reefs near the offshore substation jacket to find out which form works best.
The artificial reefs are part of a series of ecological measures by TenneT to monitor and encourage nature around offshore wind farms.
There is also an excellent picture in the article. All it needs now is fishes swimming through the holes.
‘Phantom’ Power Projects Are Holding Back The UK’s Energy Security – Centrica Report
The title of this post, is the same as that of this press release from Centrica.
These are the three bullet points.
- New report shows queue for new energy projects is blocked by developers that may not even have land rights and haven’t applied for planning consents
- Estimated size of these power projects in the queue is 62GW, roughly one fifth of all power in the queue
- Centrica CEO argues such ‘phantom’ projects should have Construction Agreements terminated if developers miss key milestones – and urges Ofgem to give National Grid ESO the power to remove projects from the existing grid queue
This is the first two paragraphs.
A new independent report, commissioned by Centrica, has revealed the extent of the power projects holding back the UK’s energy security and creating risk around hitting net zero.
The report examined the UK’s existing queue for Transmission Entry Capacity (TEC) – the queue for connecting new projects to the transmission grid – and discovered that it is up to four times oversubscribed. Not only that, but this oversubscription has become significantly worse in the last few years.
The report found these three totals.
- There are currently 371GW of projects in the queue, enough to significantly improve the UK’s energy security.
- Around 114GW worth of projects have listed their connection date as before 2029.
- But around 62GW of these projects are only in the scoping phase and developers may not even have secured land rights or applied for planning consent.
This is both good and bad news!
Here Is The Good News!
Currently, the UK is using 37 GW of electricity, of which 32 GW are generated in the UK, 5 GW is being imported through interconnectors and around 6 GW are coming from renewables.
So this means that when we build all the 371 GW in the queue, we’ll have around eleven times the electricity we are using today.
Of the 114 GW of projects listed for connection before 2029, it looks like 62 GW won’t be delivered, as they haven’t secured land rights or applied for planning consent.
But that still means that as much as 52 GW could be delivered by 2029.
Even this reduced level of new projects still increases the amount of electricity that can be generated by nearly 150 %.
If I’m being ultra pessimistic, I would say that the average capacity factor of the extra capacity was 50 %, so we’d only be adding 26 GW, so the electricity, that can be generated would only rise by around 70 %.
I suspect all in the UK can live with these paltry increases.
Here Is The Bad News!
This is a paragraph from the report.
The report suggests that the oversubscribed queue, and longer wait for connections. has a damaging effect on the investments that could drive the UK’s energy transition and energy security.
Developers and investors will decamp to countries, where they be sure of getting a return on their time and money.
Think of having two supermarkets close to you live, where one is professional and one is chaotic. Where would you shop?
The congestion caused by phantom projects must be solved.
Ofgem’s Solution
This is the solution in the press release.
Ofgem is exploring rule changes (CMP376) to address queue issues and is expected to decide these before 10 November. These rule changes would grant the ESO the ability to remove projects from the queue if they miss key milestones. Ofgem is currently considering whether to apply this rule change to just new projects entering the queue, or whether the rule change should also be applied to projects already in the queue.
They can probably come up with a solution.
An Alternative Method From My Past
In 1969, I worked for ICI, where one of my jobs was building specialist instruments for chemical plants.
Most instruments, that were designed by the group I belonged to, included a chassis on which the components and electronics were mounted. So we had a workshop and about seven or eight staff at our disposal to build the chassis and the parts outside of our skills. As they were used by several groups in the building, where we were all based, the workshop was very busy and everything was delivered late.
Eventually, a manager decided to get a grip on the situation.
He insisted, that the workshop would not do what you wanted if your delivery date was as soon as possible, rather than a date agreed by both parties.
The results were amazing and everything was delivered on the agreed date.
With the renewable energy connection queue, I am sure, that if a procedure was developed, that only allowed fully-planned projects with an agreed completion date to enter the queue, then the problems of phantom projects would be solved.
It might also reduce the cost of developing these renewable projects.
Singapore Nods To 1.2 GW Of Low-Carbon Electricity Imports From Vietnam
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Singapore’s Energy Market Authority (EMA) has granted conditional approval to Sembcorp Utilities (SCU), a wholly-owned subsidiary of Sembcorp Industries, to import 1.2 GW of low-carbon electricity, including offshore wind power, from Vietnam
This is the first paragraph.
The conditional approval means the project by SCU has been preliminarily assessed to be technically and commercially viable. The approval facilitates the process of obtaining necessary regulatory nods and licences for the project.
So now the real planning can begin.
This map shows Singapore and Vietnam.
The article says this about the electricity connection.
The low-carbon electricity is planned to be transmitted from Vietnam to Singapore via new subsea cables that will span a distance of around 1,000 kilometres.
My only worry about this project, is will China object to wind farms in the South China Sea, which they seem to increasingly regard as solely belonging to them.
I have a few thoughts.
Singapore’s Energy Import Policy
These last two paragraphs of the article describe Singapore’s energy import policy.
In 2021, Singapore unveiled its plans to import up to 4 GW of low-carbon electricity by 2035.
To date, EMA has granted conditional approvals to projects from various sources, comprising 2 GW from Indonesia, 1 GW from Cambodia, and 1.2 GW from Vietnam.
Note.
- 4.2 GW of interconnectors will be available from Indonesia, Cambodia and Vietnam.
- In 2022, Singapore’s total electricity consumption was 54.9 TWh, according to the Singapore government.
- 54.9 TWh averaged out over the year is 6.3 GW.
- According to Wikipedia, 95 % of their electricity is generated by gas.
It looks like Singapore will will be needing to import more energy.
Will Developing Countries Benefit From Energy Exports?
Singapore is purchasing electricity from its neighbours in this example.
I believe that there are many countries around the world, who will be able to develop energy exports based on renewable energy.
Conclusion
We will see lots more projects like this.
Balmoral Launches New Scour Protection System For Jacket Foundations
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Following the launch of its HexDefence scour protection solution for monopile foundations earlier this year, Balmoral has now launched a HexDefence system specifically designed for offshore wind jacket foundations.
This is the first paragraph.
At the beginning of this year, the Scottish engineering company introduced HexDefence for monopile structures, which integrates seabed protection and flow reduction to minimise operational costs and prevent cable failure. Balmoral said the solution could potentially cut costs by up to 70 per cent when compared to the conventional method of rock dumping.
Balmoral have now developed the system, so it can be used for jacket foundations.
Check out Balmoral’s web site and the HexDefence web site.
1 GW Wind Farm Proposed Offshore Jersey
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Jersey’s Council of Ministers has proposed to build a 1 GW offshore wind farm in the southwest of the island’s territorial waters that would produce enough electricity to meet its needs, with the remainder to be exported.
This first paragraph gives more details.
It is proposed that the offshore wind farm should be privately funded and designed, and delivered by a consortium with substantial experience of similar development elsewhere, according to the government.
I would have thought that Jersey would have been one of those places, that would have been too conservative for offshore wind.
But then, this is the last paragraph of the article.
In a 2019 Island Plan consultation, 85 per cent of respondents agreed or strongly agreed the plan should continue to encourage the development of offshore wind and tidal energy, according to the government.
But as the wind farm will export the surplus surplus, it could be a nice little earner.
This Google Map shows the Channel Islands.
This article on the BBC is entitled Islands Could Work Together On Wind Farm Plans.
These three bullet points sum up the article.
-
Guernsey and Jersey may work together to create a wind farm
-
Both States are hoping to create the wind farm off Jersey’s south-west coast
-
It could generate enough energy for both islands.
This looks like a sound way to reap the wind!
The Anonymous Widower 