The market for offshore wind power may advance Danish innovation
The Danish wind power industry to a large extent has regained its dominating position in the global market thanks to an innovative cooperation between strong wind turbine manufacturers and a supporting multitude of specialized sub-contractors. A new study of the conditions for Danish wind power in a market of global growth and increasing competition states, that the development of the market could easily jeopardize this unique innovation. A European market for large, offshore wind farms could, however, maintain the important elements of such cooperation between the pro-ducers and the specialized sub-contractors.
The study, financed by the Danish Energy Authority’s EFP-programme, is presented by the Commercial Academy in Aarhus and Aalborg University having professor Poul Houman Andersen as its project manager. The wind turbine industry has published a mid-way report – “Denmark as a Wind Power Hub” - stating the first results and outlining the dynamics of the innovation in the wind power industry.
Changing global demand
A central observation in the report is the fact that the international trend towards a liberal market for electricity has changed the conditions for competition and thereby the prerequisites for maintaining the dynamics of innovation in the Danish wind power industry. For many years the market was driven by technological innovation resulting in more efficient wind turbines. In a way the wind power could be said to make its living from mass production of prototypes. The majority of its customers were private consumers or groups of consumers focusing on the steady increase in production from the individual turbine. The customers did not risk their investment as they were guaranteed sales of produced electri-city to the public network at fixed prices, and they could insure their turbines against technical risks.
The shipping company, A2SEA has developed
a construction vessel acting as a flexible work
platform as it can be jacked up like a drilling
rig when erecting turrets and mounting blades
and nacelles.
In the liberal market where production of electricity to a much larger degree must compete in a free market, demand is directed towards wind farms with very large wind turbines operated by wealthy developers and energy companies primarily focusing on reliability. At the same time the market for wind turbines is getting more and more global, and there is a general trend towards placing production of very large components closer to the end user in order to limit the cost of transport.
This development is threatening the previous basis for the dynamics of the innovation: the continuously up-scaling through technical innovation and sharing of know-how between the turbine producers and the specialized supplier. But the budding growth of a European market for offshore wind turbines could renew the dynamics especially if it is possible to create synergy between the traditional suppliers of the offshore industry and the wind power industry.
Renewal of the dynamics of innovation
The hub of the market for the European offshore wind turbines is the North Sea, where Denmark, the UK, Germany and Holland have ambitious plans for development, and for Danish producers Sweden might be a promising market, too.
The market for offshore wind turbines present a number of challenges with respect to technology and protection of the environment due to the extensive corrosion caused by the salty air at sea and the increasing cost for maintenance and service offshore.
Even if this market is still under development the technology for meeting the challenges has not yet matured sufficiently, but it presents Danish wind power industry with promising aspects in the future.
Danish wind turbine producers are totally dominating the offshore market thanks to having a global market share of some 90%. As this is a market, where its customers focus on reliability, a large number of reference plants is vital to competitiveness.
In developing unique competences and solutions to offshore wind farms the Danish wind power industry may possess an attractive potential for renewal of the dynamics of innovation – not least because new challenges call for know-how from other sectors of the industry.
In his study professor Andersen points out the Aalborg-company, Densit, providing an extremely durable type of concrete which is ideal for construction of foundations for wind turbines in a hostile and corrosive environment like the North Sea. The Hempel-company, too, providing paint for all types of ships could utilise its know-how within saltwater resistant paint, and the company C.C.Jensen is developing systems ensuring a sufficient level of oil for gears in turbines situated in an environment of dense, salty mist from the sea. The shipping company, A2SEA has developed a construction vessel acting as a flexible work platform as it can be jacked up like a drilling rig when erecting turrets and mounting blades and nacelles.
Offshore Center Danmark in Esbjerg recently awarded funds to continue acting as a centre of technology is prepared to supply the framework for such a dynamic cooperation for innovation initiated by the wind power and the offshore oil and gas industry.
