development requiring participation from other sectors such as offshore oil and gas engineering and technology, the logistical skills of offshore service providers, transmis- sion system operators and infrastructure technology of the power industry.
To make offshore wind generation economi- cally viable, a wind speed of more than 6.5 m/sec is needed. Efforts into commercializa- tion of offshore wind have been underway for some years. Most of the initial efforts were in the waters of Northern Europe, where wind speeds in excess of 8 m/sec is available.
Difference between Offshore and
Onshore Wind Technology
• Higher and more consistent wind speeds than on land, leading to higher efficiency
• Offshore turbines generate electricity 70-90% of the time
• Onshore wind farms are often subject to restrictions based on their negative visual impact or noise and obstructions from buildings, mountains, etc. • Onshore wind farms are susceptible to
land-use disputes and limited availabil- ity of land
• Offshore wind systems are costlier than their onshore counterparts, both in terms of capital and operating costs
78 PwC
Difference between Offshore and
Onshore Wind Technology
• Higher and more consistent wind speeds than on land, leading to higher efficiency
• Offshore turbines generate electricity 70-90% of the time
• Onshore wind farms are often subject to restrictions based on their negative visual impact or noise and obstructions from buildings, mountains, etc. • Onshore wind farms are susceptible to
land-use disputes and limited availabil- ity of land
• Offshore wind systems are costlier than their onshore counterparts, both in terms of capital and operating costs.
International Experience
Europe was the first mover in the off-shore wind space and all the operational off-shore wind farms are in Europe.
Quick Facts
Total installed capacity in Europe at 2496 MW as of June 2010, compared to onshore wind capacity of 157 GW UK leads the ex- pansion of offshore wind, with an installed capacity of ~ 1 GW. Other prominent coun- tries in offshore wind are Denmark, Nether- lands and Sweden 40 GW of offshore wind capacity is estimated to be operational in Europe by 2020, according to a report by the European Wind Energy Association (EWEA). At the Copenhagen climate summit in Dec 2009, 9 European nations vowed to create a super-grid for sharing offshore power
Potential
The United Kingdom (114 000 km2 ) and Norway (88 000 km2 ) comprise the largest share of available offshore area for wind energy generation. Europe’s offshore wind potential is enormous with ability to power Europe seven times over. An EEA (European Environment Agency) study states that off- shore wind power’s economically competi- tive potential in 2020 is 2,600 TWh, equal to between 60% and 70% of projected electric- ity demand, rising to 3,400 TWh in 2030, equal to 80% of the projected EU electricity demand. The EEA estimates the technical potential of offshore wind in 2020 at 25,000
On-shore wind Off-shore wind
Wind speed 4-6 m/sec 8 m/sec Investment cost Rs. 4-5 Cr/MW Rs. 10-12 Cr/MW O&M cost Low High
Size May be built in small units Large turbines and farms required
Land availability Limited Availability, Clearances and Approvals, Social and Political
Issues with respect to land acquisition
Site selection, allocation of oceanic zones, environment and legal clearances
Obstructions from building Yes No
Negative visual impact or noise Yes No
Source: PwC Estimates
TWh, between six and seven times greater than projected electricity demand, rising to 30,000 TWh in 2030, seven times greater than projected electricity demand.
Capacity Installed
There are currently 1,136 wind turbines now installed and grid connected, totalling 2,946MW in 45wind farms in nine European countries. UK leads the expansion of off- shore wind, with a current installed capacity of nearly 1 GW. The UK Government has awarded licenses for upto 44 GW of offshore wind. During 2010, 308 wind turbines in- stalled and grid connected totalling 883MW, up 51% from the previous year’s installa- tions. (Source: EWEA). 140 GW of offshore wind projects are already in various stages of planning. Between 1,000 MW and 1,500MW expected to be installed during 2011. This shows the enormous interest among Eu- rope’s industrial entrepreneurs, developers and investors. (Source: EWEA)
Policy Support
In 2009, the EWEA increased its 2020 target for offshore wind to 40 GW and (out of a total 230 GW of wind capacity) and to 150 GW in 2030. The EWEA target comes under the backdrop of the 20-20-20 targets by 27 EU Member States with respect to climate and energy change.
• Reduction in greenhouse emissions by 20 percent by 2020 (compared with 1990).
• Renewable energies to make up 20 percent of gross domestic energy con- sumption
• Increase in energy efficiency by 20 percent.
Given the new climate change targets, the European Commission first highlighted the contribution that offshore wind can make towards achieving the objectives in 2008. In a memo dated 13 November 2008, the Com- mission calls for an expansion of installed offshore wind capacity (basis 1.1 GW by the end of 2007) by 30 to 40 times by 2020 (hence at least 30 GW), and then by another 100 percent by 2030 (at least 110 GW).
Under Construction
Currently there are 10 offshore wind farms under construction; totalling 3,000 MW and a further 19,000MW have been fully consented.
Grid Connectivity
There are 11 offshore grids currently operat- ing and 21 offshore grids currently being considered by the grid operators in the Baltic and North Seas. EWEA has proposed a 20 Year Offshore Network Development Master Plan for the same.
Emerging opportunities and challenges 79