Increased reliability decisive for development of the offshore market

Further development of wind farms especially in the North Sea reveals strong political ambitions. The world’s number one operator, DONG Energy, takes an optimistic view on the trend of the market. DONG Senior Vice President, Per Holmgård, responsible for the business area, Renewables, wants a debate concerning how the politicians and the industry can handle development in a practical way. Important themes should be the interrelation between projecting, the capacity of the wind power industry, the infrastructure of the electrical supply, technological development and the reliability of the offshore wind farms.   

 
DONG Energy owns half of Barrow Offshore Wind in The Irish Sea,
where high waves from the Atlantic offer very tough working conditions.
Photo: Jasper Carlberg/DONG Energy.

Major projects underway
The merger in 2006 in the Danish energy sector created the world’s number one operator of offshore wind farms. The agreement between DONG and Vattenfall resulted in the Swedish company acquiring British Kentish Flat and 60% of Horn’s Reef, but before the merger of DONG, Elsam and Energi E2 these companies owned so many offshore wind turbines, that DONG Energy became the largest operator in the world. Renewables is operating wind and hydro power plants supplying some 1,000 MW of which 2/3 derive from wind turbines. With its 300 MW offshore wind farms DONG Energy at present produces some 40% of the global energy provided in this way. And more major offshore projects are in the pipeline, according to Per Holmgård.

In the Irish Sea DONG Energy owns half of Barrow supplying 90 MW and operational since 2006. This year same-sized Burbo Banks will follow. At the Thames estuary DONG has got the rights for the 100 MW Gunfleet Sands expected to be operational in 2009, while the approved 1,000 MW project, London Array, in the same area is to be gradually developed. Here DONG is working together with E.ON UK and Shell.

In Denmark DONG has been awarded both of the two 200 MW offshore wind farms, Horn’s Reef 2 and Rødsand 2, operational in 2009 and 2011, respectively. Hereby DONG Energy is approaching providing some 1,000 MW from offshore wind farms under optimal wind condition.

Development of wind farms in the North Sea may be speeded up in the years to come if the ambitious plans are realized. The two first British concession rounds have comprised of projects for 8,300 MW, Germany is planning developments providing 25,000 MW and Denmark and Holland are expected to go on extending their farms – however, at a smaller scale. At present Great Britain appears to turn into the most important market for wind power as the British projects offshore in 2008 are expected to overtake the Danish ones.

Danger signals
Per Holmgård for good reasons is optimistic as DONG Energy’s first British projects have created much good-will, but the development can easily be de-railed if the companies and authorities do not pay sufficient attention to the danger signals flashing.


Per Holmgård: “In a market where the
profitability of the projects is depending
on economical support from the national
governments it is important to spread
the activities on several nations.”

“Experience from Horn’s Reef and Barrow tells, that the environment offshore is tough to the offshore wind farms, and several projects have been burdened by large and unforeseen extra costs replacing components and requiring additional service. Consequently, offshore wind farms must be more reliable and easier to service.

Furthermore, there is a need for a better balance between the number of projects and the capacity of the wind power industry. At present the market is accelerated by the increasing demand for energy and the high oil prices. Lately the price of components for offshore wind farms has increased by 30%. Such extra costs are damaging to present projects. Bottlenecks are a risk, too. We need special construction vessels, and we may soon run out of vessels for servicing. Consequently, it is important that we develop at a pace adjusted to the resources available.”

Special offshore concept.
The potential market for offshore wind farms has initiated ambitious international research and development projects. EU is supporting a DOWNWIND-project for turbines placed at greater water depths, and UpWind should develop a concept for the 10-20 MW wind turbines of the future as such a type of turbine could be decisive for the development of future offshore wind farms.

“Till now the wind power industry has supplied only up-scaled wind turbines for offshore use. The relatively expensive foundations have resulted in a natural interest in going for the largest turbines possible. But for us as a developer, investor and operator it is important that the turbine can produce as much energy as possible at the lowest possible costs. That is why we should discuss if we shall go on aiming at one-eyed up-scaling, or if we should pay more attention to more reliable components and make the turbines more accessible for service.”

The authorities can support a well