Offshore Wind Is Profitable Without Subsidies

- Sep 05, 2017-

In Europe, the emergence of new technologies has raised the allure of previously expensive offshore wind power.More recently, Europe has made significant progress in offshore wind power: three projects will be built without government subsidies.Benton christensen, head of energy cost forecasting at Siemens's wind power division, thinks industry-level cost-cutting has exceeded expectations."We're three to four years ahead of schedule," christensen said.

This summer, European waters project is forming, at the same time will show the delivery needed for the project of continuous innovation, which can make the offshore wind of financial institutions and innovation of the power grid operators more attractive.

Critics have long viewed offshore wind as a niche.Building offshore facilities and installing them in bad Marine environments is expensive, even if they do not consider unusually large waves.

In 2013, the new project of power generation cost is 160 euro/mw, industry collective specifies what christensen said "reality development goals: by 2020, will cost reduced to 100 euros/mw.Christensen is Siemens business company, Siemens Gamesa wind turbines, senior vice President of renewable energy company, he told everyone through its own development layout, the cost of offshore wind had fallen.

Christensen's estimate received a response from the financial advisory firm lazard, which expects the cost of unsubsidized new projects to be 105 euros per megawatt, down 27 percent from 2014.In its December 2016 analysis, lazard found that the cost of offshore wind power was comparable to that of coal-fired power generation, solar power generation and nuclear power.

Recent onshore projects have been competing with onshore wind and solar power.Several projects in Denmark and the Netherlands promise that offshore wind power will cost less than 75 euros per megawatt.In April, Copenhagen's Dong Energy Co. and Germany's baden-wurttemberg Energy equipment company bid for unsubsidized German wind power projects.Ulrik Stridbaek, senior director of regulatory affairs at Dong, estimates that the cost of generating electricity for the project is 62 euros per megawatt.

The competition, innovation and scale have all helped supply the industry's supply chains - from turbine manufacturing to power transmission - to rapid cost reductions, Mr Strickbeck said.But stridbeck also said: "the decisive factor is scale."

Dong company 1200 mw offshore wind power projects in Yorkshire in the UK in 2018 installation, started 120 kilometers off the coast of sea power projects have been put into operation in capacity is almost the record of nearly 2 times.The turbine units of offshore plants are also on the rise.In 2013, the maximum installed capacity of offshore turbines was 3.9 megawatts, while today's maximum installed capacity is 8 megawatts.In December 2016, Dong installed its first large-scale turbine units in another UK wind farm.

At the same time, Germany's zero-subsidy program relies on 13 to 15 megawatt turbines that do not exist.The company is betting that suppliers such as Siemens Gamesa and MHI vestas offshore will be ready to complete the mega facility in 2024 or 2025 for completion of the north sea project, he said.

Transmission systems also need new technologies to bring wind power to land.Now several innovative approaches are being tested in the Baltic sea, and the 30km cross-sea route between the German and Danish wind farms will create an additional interconnection between northern Europe and the European grid.Cables from the ocean floor through the Baltic sandy beaches, known as KriegersFlak, are cleaning up the unexploded ordnance left over from world war ii this month and are expected to complete the link next year.

When the Baltic wind farms are idle (about 50% of the time), Europe's software consolidation power market will use the cable to deliver power between Scandinavia and Scandinavia.Peter jorgensen, President of, a Danish grid operator, predicts that the link will strengthen the region's existing power delivery model, which will allow for a balance between European wind power and northern European hydropower.

To make sure the project works, he said, a low-cost high-voltage dc (HVDC) converter could be installed between two unsynchronized grids for a 400-megawatt power point exchange.The early design was to set up a converter at the sea of Kriegers Flak.The project now sets two back-to-back converters on land in Germany, avoiding a 50 per cent premium to offshore platforms.

Last year, the Dutch state grid operator TenneT proposed the use of this super-sized dual-purpose cable design at a north sea power transmission hub.Energinet recently joined the initiative to call for the creation of one or more artificial islands, which will collect up to 100 gigawatts of offshore wind power and transport it to countries in the north sea.

These "power chain islands", like the KriegersFlak link, reduce transmission costs by setting up HVDC converters on land, and achieve their maximum value by conducting power transactions between the grids.They will also be equipped with technicians, spare parts, maintenance ships and sea ports to reduce the cost of maintenance of wind farms.

Mr Jorgensen said the north sea proposal was under feasibility study and could not be implemented.But industry participants say, cost reduction is the need of such a creative idea, especially to meet ambitious targets in Europe, the need to deploy a large number of renewable energy, that is more in need of the idea.