Britain continues to hold the distinction of being home to the largest offshore wind farm in the world. And with as much offshore wind capacity already installed across the U.K. as the rest of the world combined, it will likely maintain its global industry leadership for years to come.
Prime Minister David Cameron was on hand for the inauguration of the massive new record holder, London Array offshore wind farm project – which blew passed the 500 megawatt (MW) Greater Gabbard wind farm off the coast of East Anglia – to promote the country’s commitment to green energy and growth.
The London Array consists of 175 Siemens 3.6 MW turbines producing 630 MW, enough to supply electricity to nearly half a million British households. There is a phase 2 that is outlined to raise the capacity all the way to 1,000 MW, but more specific details need to be hashed out. Phase 1 is sited 12 miles (20 kilometers) off the coasts of Kent and Essex in the outer Thames Estuary – despite the location, the project gained its London name since it delivers electricity to the capital city and its high electric energy demand.
Mr. Cameron hailed the project at the opening ceremony by saying, “This is a great day for Britain and a big win for renewable energy…when it comes to clean energy, the U.K. has one of the clearest investment climates globally.”
The project, which actually gained the title of the world’s largest operational wind farm when 141 turbines were operational on March 7, will further lead to helping England meet its carbon emissions reduction targets. The 2008 Climate Change Act established the U.K.’s target reduction of greenhouse gas emissions by at least 80 percent (from the 1990 baseline) by 2050. The London Array project managers predict that the wind farm will save 1,020,000 tons (925,000 tonnes) of CO2 a year, which equal the emissions of 300,000 passenger cars.
The U.K.’s preeminent offshore wind sector – distinguished by being home to the five largest offshore projects globally – demonstrates the benefit that long-term certainty from policy provides for project developers. In other parts of the world where there is uncertainty due to weak or no policy, there is little to provide a predictable and reliable market and regulatory framework to continue to grow an industry. Ernst & Young, the publisher of the Renewable Energy Country Attractiveness Index, a globally recognized industry leading publication, found the U.K. is the most attractive country in the world for offshore wind development.
As of the beginning of July, the U.K. now has 1,091 offshore wind turbines installed of which 1,037 are operational with capacity reaching 3.6 gigawatts (GW) and 54 are being commissioned, with a further 250 in construction. Once complete, the combined capacity will amount to nearly 5 GW across 24 sites, according to the the Crown Estate. High industry estimates reach to tally around 18 GW installed by the end of the decade. Today, the total offshore generating capacity in U.K. waters provides around eight terawatt-hours (TWh) of electricity annually, equivalent to the electricity consumption of around two million British homes.
The project has been in the pipeline for more than a decade. In 2003, the Crown Estate gave London Array Ltd a 50 year lease for the site. Onshore construction began in July 2009 and the offshore construction finally began in March 2011. The 175 turbines were installed over the full 2012 calendar year. They were configured to maximize performance by being arranged in rows and columns aligned according to the prevailing south-westerly wind. They are placed 710 yards (650 meters) to 1,300 yards (1,200m) apart and are connected to each other and to the offshore substations by a network of cables rooted in the seabed.
The Crown Estate is charged with seabed management and thus is a proactive institution in the development of the leading offshore wind energy industry. Under the United Nations Convention on the Law of the Sea (UNCLOS), it was agreed by all signatories to manage up to 12 nautical miles off each nation’s coast.
Aside from the Crown Estate signing off on the now record setting project, three international companies share ownership: Danish DONG Energy holds a 50 percent stake, German E.ON UK Renewables holds 30 percent and UAE Masdar holds 20 percent. DONG and E.ON are industry stalwarts, but Masdar is a relatively new player on the international renewable energy scene. The successful troika is another example of the importance of cross border partnerships to enable setting new industry records.
Masdar, Abu Dhabi’s clean energy company, agreed to its stake in the project in 2008, after Shell withdrew from the original framework. Backed by the UAE government, Masdar has $1.7 billion invested in clean energy worldwide and Britain’s investment climate has intriguing the company to invest further.
Dr. Sultan Ahmed Jaber, CEO & Managing Director of Masdar, said “Projects like London Array demonstrate the economic opportunity of large-scale renewable energy projects – from the direct investment they attract to the industries they strengthen.” So much so, the company is considering investing in Phase 2 of the London Array.
Masdar demonstrated serious consideration when it signed an initial agreement in May with the U.K. Green Investment Bank to jointly develop clean energy in the country. An obvious question would be: why would an oil rich nation like the UAE be players in renewable energy? Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs explained, “We believe that by addressing energy security balancing the sources of power we rely on we can also create economic and social opportunity. Through Masdar, the UAE is seriously addressing this goal.” Masdar has also displayed that vision domestically as it recently opened the world’s largest concentrated solar power plant, the 100 MW Shams1.
Leveraging investment from companies, such as Masdar, looking to invest more readily in offshore wind to those companies that are established players, the U.K. has positioned itself in a dominant position in the offshore wind sector. Through the government’s policy and commitment, and as more projects are announced and others are scaled up, more cross border partnerships are sure to be sought. That is especially important for financing, project expertise and knowledge, and project development and skilled labor, as offshore wind continuously matures as an industry and other nations take the plunge to delve into the largely untapped, readily available resource.
