Price Hike for Offshore Wind? Floating Deep Water Wind Turbines Could Come to the Rescue

June 28, 2007 – Vol.12 No.14

PRICE HIKE FOR OFFSHORE WIND? FLOATING DEEP WATER WIND TURBINES COULD COME TO THE RESCUE.

According to international energy analysts Douglas-Westwood, the cost of offshore windpower projects could increase 42 percent during the upcoming five-year 2007-2011 period. The higher costs could put pending and scheduled-to-be-built projects in jeopardy. Projects may not get built if construction costs are too high.

Fortunately in that period - or soon thereafter - floating wind turbines could be ready for commercialization and give a new boost to offshore wind.

Why the cost increase of offshore wind?

--- There’s a lack of economies of scale as well as insufficient competition in many parts of the supply chain. Offshore projects are still spotty, there’s no continuous stream of installations, thus there hasn’t been the necessary capital investment to force costs down. For instance there’s only one major installation vessel operator currently in the offshore wind market. More operators, more specialized vessels are necessary.

--- The reliability of turbines in use hasn’t been exemplary, leading to high maintenance costs. The harsh ocean environment has been tough on equipment that was originally designed for onshore use. Access to turbines (by boat) is difficult and poor weather can put a halt to maintenance and repair operations.

Yet after 2011 things could look up for offshore wind, according to Douglas-Westwood. The UK may raise its renewable obligation, leading to more offshore wind projects around the windy island. (With current projects slated for construction, the country is already set to become the world leader in offshore wind.) And, in Germany there’s a new agreement that will have grid operators pay for connection to offshore projects. Germany has the potential to be the next major offshore wind market.

Further - beyond and not included in Douglas-Westwood’s analysis - floating wind turbines for deep-water, over-the-horizon wind farms might be available in the second decade of the century.

Siemens Power Generation has entered into an agreement with Hydro of Norway to develop floating wind turbine technology based on Hydro’s Hywind concept. Hydro has a license to place a demonstration turbine in deep waters near the island of Karmoy off the southwest coast of Norway. Another possibility for the partnership will be to float a turbine near an oil platform to supply the rig with renewable power.

Floating, deep water offshore wind could be a breakthrough for offshore wind particularly for the United States. (And be a breakthrough in renewable energy as well.)

Despite its long coastline the US has few sites near shore with the desirable combination of good wind resources, relatively shallow water, a power grid connection and shore side property owners willing to tolerate (without a fight) wind turbines planted in their ocean view. Floating deep water wind turbines - well over the horizon - would nearly guarantee ample reliable wind resources and couldn’t be seen from shore. Who can complain about something they can’t see?

Despite longer distances from shore, floating turbines could yield some cost savings compared with shallow water turbines. No foundation would be necessary. Turbines would be towed and anchored on site then connected to an undersea cable. When major repair or overhaul was needed they could be brought to shore.

Floating oil rigs survive and prosper on the high seas. Why not floating wind turbines?

Visit Douglas-Westwood at http://www.dw-1.com/ Hydro at http://www.hydro.com/