Offshore Wind Energy

By: EconomyWatch   Date: 30 April 2010

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Global Offshore Wind Energy Farms Gaining Traction

Most experts consider developing offshore wind energy a highly challenging prospect, despite the immense potential. Countries such as Denmark, Germany and Sweden have made significant progress in this arena.

In 2002, Danish energy company Elsam (renamed as DONG Energy) built the first offshore wind farm at Horns Rev in the North Sea. Located a few miles off the westernmost point of Denmark, 80 wind turbines were installed in this wind farm within the year. In 2005, Swedish power group Vattenfall took over ownership of the wind farm.

A year after the wind farm became operational in the North Sea, a Danish-Swedish joint venture installed 72 wind turbines near Lolland. Nysted Wind Farm, the world’s largest offshore wind farm, has a total capacity of 166 MW. Production at this wind farm can cater to the electricity consumption of 145,000 Danish homes. Denmark is targeting to generate approximately 35% of its energy from renewable sources by 2030.

Earlier this year, Germany announced its plans to develop its first offshore wind farm. The country has taken on a massive project to build nearly 30 offshore wind farms in the North Sea and Baltic Sea. Unlike the offshore wind farms in Britain, Denmark and the Netherlands that are just a few kilometers off the shore, Germany’s proposed offshore wind farm will be positioned in deep water. That will make this offshore wind farm the first of its kind across the globe.

It is expected that 25,000 MW will be generated by offshore wind farms to buffet the country’s dependence on overseas energy suppliers. Three energy goliaths, Vattenfall, Ewe and Eon will install six turbines that are positioned nearly 45 kms from the shores.

Germany could face several challenges in accomplishing this ambitious plan. Despite being the world leader in onshore wind technology, Germany does not have even a single wind turbine on its coastline as yet. Only recently did the country permit investors to build wind farms off the German coast. But this will be permissible after the completion of rigorous environmental monitoring in order to ensure that marine ecosystems and animal life are well protected.

Germany has also raised its feed-in tariff for the wind energy sector. Feed-in tariff refers to incentives offered to the owners of renewable energy systems by the government. Experts expect the increased tariffs to encourage global investors to enter and find opportunities in the German offshore wind sector.

In July 2008, US firm Blackstone announced its plans to invest over a billion euros to develop an offshore windfarm off the North Sea. With an estimate of 80 wind turbines, this offshore wind farm will have a capacity of 400MW and will supply electricity to more than half a million homes.


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