Siemens announces major investment in Hull

This week the United Kingdom’s wind industry received a major boost as German manufacturing heavyweight Siemens announced plans to progress with the construction of  large-scale turbine production and installation facilities.

These new developments not only serve to underline and maintain the UK’s cutting edge turbine industry but will also create a significant number of jobs in Hull and the surrounding areas.

Siemens had been working on plans to invest £80 million in the creation of the production facilities for a number of years but the news announced yesterday has revealed that the level of investment has been doubled to £160 million. This doubling in the level of investment demonstrates the conglomerates confidence in the future of the British wind industry.

The £160 million investment will be split between two sites: the previously announced ‘Green Port Hull’ construction, assembly and service facility and a new rotor blade manufacturing plant in nearby Paull,in Yorkshire. In further good news Associated British Ports will also be heavily investing, to the tune of £150 million, in the ‘Green Port Hull’ Scheme.

This combined investment of £310 million represents a significant boost to Hull and the surrounding environs, an area of the UK long troubled by economic decline. The new facility is expected to directly create and support 1,000 jobs. Additional jobs will be created during the construction of the facilities and once construction is completed, indirectly in the supply chain and local economy.

Construction at the two sites is scheduled to commence this autumn. The swiftness with which this work is to be carried out again underlines the confidence which investors have in the UK’s wind industry and it’s potential to generate yet more of the UK’s electricity than it is already doing. The manufacturing plant is to be used in the construction of Siemens latest 6MW offshore turbine model. These new turbines have rotor blades which are over 75 meters long and when spinning cover an area greater than two and a half football pitches. A Siemens spokesman revealed that the facility would be the first of it’s kind in the world. Construction of the new turbine models is expected to commence in 2016 meaning that the turbines can be expected to be deployed in the UK’s Round 3 Offshore Wind Farms later in the decade.

Siemens’ chief executive of the energy sector Michael Suess made the following statement at the announcement of the increased investment:

“Our decision to construct a production facility for offshore wind turbines in England is part of our global strategy. We invest in markets with reliable conditions that can ensure that factories can work to capacity.

“The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognises the potential of offshore wind energy within the overall portfolio of energy production.

“The offshore wind market in Great Britain has high growth rates, with an even greater potential for the future. Wind power capacity has doubled here within two years, to roughly 10 gigawatts. By 2020, a capacity of 14 gigawatts is to be installed at sea alone to combine the country’s environmental objectives with secure power supply. Projects for just over 40 gigawatts are currently in the long-term planning.”

The announcement was welcomed by politicians, industry figures and activists alike. UK Energy Secretary Ed Davey commented:

“This deal is excellent news for the people of Hull and the Humber, the UK, the wind industry, and our energy security. We are attracting investment by backing enterprise with better infrastructure and lower taxes. As well as helping to keep the lights on and putting more than 1,000 people in work, this deal means we will help to keep consumer bills down as we invest in home-grown green energy and reduce our reliance on foreign imports. This deal shows our strategy for offshore wind is working; bringing investment, green jobs and growth, and helping keep Britain the number one country in the world for offshore wind.”

Industry trade body RenewableUK’s Chief Executive Maria McCaffrey said:

“This is a major coup for the British wind industry – it’s the green-collar jobs game-changer that we’ve been waiting for. Attracting a major international company like Siemens to the UK, creating 1,000 jobs manufacturing turbines at two sites in Yorkshire, proves that we can bring the industrial benefits of offshore wind to Britain. This is just the start – where Siemens are leading, a cascade of others will follow – and we’ll see very significant growth in the UK supply chain.

“The British offshore wind industry already employs more than 12,800 people in direct and indirect jobs. Our research shows that within the next ten years, that number could rise to as many as 44,000 jobs. By 2030, the UK offshore wind sector will need dozens of factories making innovative, hi-tech blades, turbine towers, cables and offshore substations. This is a massive economic growth area for UK plc – a clean energy industry for the future.

Major developments like today’s announcement from Siemens will help us to retain the UK’s global lead in offshore wind, as we already have more capacity installed than the rest of the world put together. The rest of the world is eyeing us enviously, wanting a slice of the action. Now we know that a substantial part of that action will be undertaken by British workers in a major industrial renaissance on British shores”.

Lindsay Leask, Senior Policy Manager at Scottish Renewables, said:

“The announcement by Siemens illustrates the scale of opportunity available to Scotland if we utilise our offshore wind potential.

“Scottish Renewables’ recent employment report showed that almost two thousand people are currently employed in the offshore wind sector in Scotland, and that it is before a single project is even under construction.

“With the recent Scottish Government decision to consent offshore wind projects in the Moray Firth, and a number of manufacturers having committed to bringing similar-sized factories to Scotland if they win orders, there is a real opportunity for Scotland to take advantage of the manufacturing and supply chain opportunities in the offshore wind sector, not just in the UK, but globally.

“Increasing the number of consented offshore wind projects means a growing pipeline of orders for manufacturers and allows them to justify investing in facilities in Scotland. The more manufacturers we have involved in the sector increases the level of competition and, ultimately, leads to faster cost reductions.

“We will continue to work with the supply chain to make sure they benefit from the huge opportunities in Scotland.”

The announcement of such major investment following so closely on the heels of heavy investment in grid infrastructure, sub-sea cables and the onshore sector makes the overwhelming case that the UK’s wind industry is flourishing and thriving. We at Intelligent Land Investments (Renewable Energy) are delighted to be playing our part, if perhaps on a slightly smaller scale. We have also invested large sums in the country’s infrastructure to improve wind capacity, help keep energy bills down and help the UK meet it’s renewable energy targets. Every month new turbines are consented or installed, both by ourselves and others in the industry. The upward trajectory of the UK’s wind industry is clear to see in the fact that every month new records are set for the amount of British electricity demand being met by wind energy.

 

Wind energy save EU €2.4 billion worth of water a year

A report published last week by the European Wind Energy Association (EWEA) has highlighted the cost to the union of non-renewable forms of electricity generation.

The report, entitled ‘Saving Water with Wind Energy’, has revealed both the amount of water which is used for energy generation within the European Union each year and the amount of money which this costing taxpayers and consumers across the continent.

It should first be noted that wind energy generation is saving Europe around €2.4 billion every year. This figure represents the cost of the water which would have been incurred had the electricity generated from wind power had been generated in more traditional ways. This figure was for the year for 2012. Given the strides that wind power has made across Europe it can be concluded that this figure has risen since then and shall continue to do so.

Startlingly, 44% of the water used within the European Union is used in power generation. It should be noted that the vast majority of this 44% is used in traditional power plants. For example nuclear and coal plants which require vast amounts of water for cooling. Energy production is by far the biggest use of water within the European Union. In comparison agriculture only represents 34% of water demand, the public water supply only 21% and industry accounts for only 11%. In total 4.5 billion cubic meters of water are used by nuclear, coal and gas firing plants every year.

Given that demand for water is increasing due to population growth and density increase as well as pressures placed upon the environment by climate change water efficiency will become an increasingly important issue in the coming years. Already at least 11% of European Union citizens are affected by water scarcity – for example in the South East of England were droughts and hose-pipe bans are now an annual occurrence. Using huge amounts of water to produce electricity only exacerbates these issues.

Renewable forms of energy generation require far less water to operate than more traditional and large scale technologies. Nuclear power uses the most water to produce power; on average 2.7 cubic meters of water are needed to produce a single megawatt hour. Coal is slightly less intensive requiring 1.9 cubic meters of water for every megawatt hour and gas is further less intensive requiring 0.7 cubic meters per megawatt hour. However in comparison the amount of water required to produce a megawatt hour of wind power is minimal. Wind turbines only require water for infrequent blade cleanage and generator cooling.

Indeed the EWEA report estimated that usage of wind turbines in 2012 reduced the EU’s energy industry’s water usage by 1.2 billion cubic meters – the annual water usage of 4% of the EU’s population. Again these figures will have increased given the increase in wind capacity seen throughout the EU’s member states. 1.2 billion cubic meters saved represents €2.4 billion saved. Furthermore given the consensus existing among many economists that water is heavily undervalued the true savings could be far higher.

The EWEA’s head of policy analysis Ivan Pineda commented at the publication of the report:

“Water equivalent to over three Olympic size swimming pools is consumed every minute of every day of the year to cool Europe’s nuclear, coal and gas plants. Increasing our use of wind energy will help preserve this precious resource far more effectively than any ban on watering the garden– while saving us money”.

The report projected that by 2030 wind energy will save the EU between 4.3 and 6.4 billion cubic meters of water per year. This would represent a financial saving of between €11.8 and €17.4 billion per year. Given the expectation that water usage and efficiency will become an increasingly part of resource management governments across the European Union are being urged to factor such considerations into energy policy. Industry trade body RenewableUK’s Director of External Affairs Jennifer Webber commented:

“Water is a very precious resource – water restrictions were imposed in the UK in the summer of 2012 in areas hit by drought. One of the many benefits of wind energy is that it requires hardly any water to keep generating. This report is a timely reminder of the environmental impact of other technologies which use vast amounts of water for cooling. When Governments set energy policy, they should take this into account – it’s not just the carbon footprint that matters, but also the water swallowed up by these other thirsty generators”

In other news, this week SSE exported power from it’s offshore wind testing facility to the National Grid for the first time. The facility, sited on the North Ayrshire coast is the UK’s first, and currently only, onshore test site for offshore turbines. The site was established with support from both the UK Government’s Department of Energy and Climate Change and Scottish Enterprise.The Ayrshire site has similar wind conditions to those found offshore. The currently operational turbine is a 6MW Siemens 154 direct drive machine, some 177 meters high. Work has already begun to install the site’s second turbine; a 7MW Mitsubishi model. This is expected to be operational by the autumn.

The commencement of power exportation has been enthusiastically greeted. Clark MacFarlane, Managing Director, Siemens Wind Power Offshore UK&I said:

“We are delighted with the news of first power for our 6MW turbine at Hunterston. This is another important milestone for our next generation wind turbine technology. The SSE and Siemens team has worked extremely hard to get to this point and should feel proud of their achievement in delivering this important clean energy project.”

Ian Flannagan, SSE’s Project Construction Manager, said:

“It’s great to see the Siemens wind turbine generating electricity for the first time which is testament to the hard work and commitment shown by everyone involved in the project.

“We are busy preparing the site ahead of the second turbine, a Mitsubishi SeaAngel 7MW offshore wind model, arriving in a few months time.”

UK Energy and Climate Minister, Greg Barker said:

“SSE Renewable’s test site for offshore wind turbines is an exciting and innovative project. It will help the country take another step towards delivering £110 billion investment into our energy sector while helping to support local jobs.”

The success of the offshore turbine testing site is good news for the UK’s wind industry ensuring that it’s world leading position is maintained.

The report published by the EWEA serves to underline the many benefits which wind energy generation has; increasing both energy and water security, reducing CO2 emissions and combating climate change and helping to keep energy bills down by reducing reliance upon fossil fuel imports. We at Intelligent Land Investments (Renewable Energy) are proud to be doing our part to increase the UK’s wind energy generation capacity.

Construction begins on £1bn Grid Link

Construction work has begun this week on the new £1 billion grid link between Hunterston in Ayrshire and Connah’s Quay in Wales. This marks the commencement of what is expected to be the first of several major grid upgrade projects which are to be carried out across the UK.

The 260 mile (418 kilometer) long undersea electricity transmission line is expected to be fully operational by 2016. The project will directly support 450 jobs during the construction period. This is a joint venture between Scottish Power and the National Grid. The new link, the first sub-sea link between Scotland and the rest of the United Kingdom, could increase the capacity of electricity moving between Scotland and England by 2,000 megawatts. This represents enough electricity to power more than 4 million British homes.

The inter-connector, known as the Western Link HVDC (high-voltage direct-current) project is intended to open up the potential for Scottish wind energy to be supplied to areas of high population density, high-energy demand and low renewable generation potential found over the border. Such a move not only creates a bigger market and more demand for Scottish wind power but it also helps both the UK and Scotland meet their renewable energy targets. A similar project is being planned for the East Coast.

Announcing the commencement of construction Scottish Power’s chairman Ignacio Galan commented:

“We are pleased to mark the start of construction on this hugely ambitious sub-sea electricity connection project.

“Our engineers are currently delivering some of the most important upgrades to the electricity network for more than half a century, with billions of pounds being invested and thousands of jobs being supported and created.

“The Western Link project will act as a benchmark for similar developments around the world, as the deployment of this technology at such a large scale has never been undertaken before.

“This will help to increase energy security across the UK, and will benefit the people of Scotland, England and Wales.”

UK Energy Minister Michael Fallon also stated:

“The western link is a perfect symbol of the single energy market, of which Scotland is part. It will enable English and Welsh consumers to access Scottish renewables and enable Scots to benefit from base load power when the wind doesn’t blow. This world leading, billion pound under-sea connector shows the strength of our current integrated system.”

The Western Link project is a part of Scottish Power Energy Network’s wider £2.6 billion investment plans for their transmission network covering the 8-year period from 2013 to 2021. The plans are intended to deliver the following; direct creation of up 1,500 new jobs, facilitation of offshore and onshore wind generation in Scotland of around 11 GW (enough to power over 6 million British homes), reduced carbon emissions of 45 million tonnes of carbon dioxide, replacement of over 800 km of overhead power lines and an increase in export capacity from Scotland to England of nearly 4 gigawatts. Such an ambitious investment program demonstrates both the potential of Scotland’s renewable energy resources and the commitment to realizing them.

In other news this week, data published this week by Eurostat (the European Union’s statistics office) revealed that renewable energy met 14.1% of total energy demand within the European Union in 2012 (these are the most recent figures available). This represents an increase of 5.8% compared to 2004 when renewable energy met 8.3% of the Union’s total energy demand.

During this time every single member state of the Union has increased their renewable energy capacity. Perhaps somewhat startlingly, several member states have already reached and went beyond their binding 2020 renewable energy targets.

Sweden, Austria and Denmark were the three countries which underwent the largest growth in renewable energy capacity between 2004 and 2012. Sweden, which in 2004 derived 38.7% of its power from renewables, lifted that to 51% in 2012. In Denmark, the share of renewables rose from 14.5% to 26%, while in Austria it jumped from 22.7% to 32.1%. Three countries have already met their individual 2020 targets; Bulgaria, Estonia and Sweden. These three countries had 2020 goals of 16%, 25% and 49%, respectively. At the end of 2012 they had achieved respective renewable energy shares of 16.3%, 25.2% and 51%. Of course it should be re-iterated at this point that the figures published by Eurostat do not cover the year 2013 – a period of remarkable growth in UK renewable energy capacity, particularly wind generation capacity. It should also be remembered that several countries, particularly Sweden, started with far, far higher initial renewable energy capacities than the UK due to abundant hydro-generation resources.

We at Intelligent Land Investments (Renewable Energy) are delighted to see ambitious and extensive upgrades being carried out to the electricity transmission network, particularly given our own efforts in this field. Such work not only improves the country’s infrastructure but also allows Scotland’s renewable energy potential (the envy of Europe in this regard) to be fully realized. Long range energy transmission also serves to reduce instances of renewable energy generation technology having to be turned off at times of low demand. Finally it helps to further reduce the United Kingdom’s reliance upon fossil fuel imports at a time when the vulnerability of such markets could not be clearer.

 

 

 

 

New UK Wind Energy Records Set

This week it was announced by industry trade body RenewableUK that the month of February 2014 had seen several wind power records being broken.

The announcement followed the publication of electricity generation statistics for February by the National Grid. Despite the high-winds experienced in the UK over the course of February it should be noted that the setting of new records does not simply represent a particularly blustery month but rather the continuation of an upwards trend.

The first record which was broken was the amount of wind power generated in a single month. February saw 2,750,086 MWh (Megawatt hours) of electricity being generated from wind power. This level of generation is enough to power over 6.5 million British homes at a time of year which traditionally sees high power usage and demand. The previous record was set in December 2013 when 2,481,080 MWh of electricity was generated from the wind. Crucially, however, this increase in generation led to an increase in the use of wind power by the UK. In February 2014 11% of the UK’s total power demand was sourced from wind power. In comparison, December 2013 saw 10% of the UK’s total energy demand being sourced from wind. It should be noted that the previous record set in December broke a record set only a few months before. The pace with which such records are being set and broken demonstrates the progress that the UK’s wind industry and companies such as ourselves at Intelligent Land Investments (Renewable Energy) are making.

The record for the amount of wind energy generated in a single day was also broken in February. On the 23rd of that month wind energy met 17% of the country’s total energy demand. Again in this case the previous record was set in December 2013. Additionally a new all-time record was set for the amount for wind energy produced in a single half hour on the 31st of January – a remarkable 6,215 MW.

Of course it should be remembered that the figures released by the National Grid do not represent the full amount of wind energy being generated in the UK. There are a large amount of wind turbines in the UK, particularly within the small to medium scale (the scale at which we at Intelligent Land Investments (Renewable Energy) specialise in) which do not feed power into the National Grid. Such turbines will be supplying power locally or on-site. The owners of such developments are not required to supply real time output data to the National Grid and as such will not have been included in their figures.

It should be noted that UK wind power breaking such records as this is set to become a regular occurrence in the near future as more turbines are consented, constructed and begin to supply power into the National Grid. We at Intelligent Land Investments (Renewable Energy) are looking forward to playing our part in this process as more of our developments are completed in the very near future.

The need for secure domestic supplies of electricity and thus lowered reliance on gas and oil imports has been highlighted by recent events in the Ukraine. With much of Europe, including the United Kingdom, increasingly dependent upon Russian hydro-carbons and Eastern European pipelines it is becoming increasingly clear that a renewed push for more renewable energy generation would allow the country more room to maneuver on the international stage as well as protecting consumers from potentially hugely volatile fossil fuel prices. It is worth noting that according to figures recently released by DECC 2013 was the first year in which net imports of gas exceeded UK production.

This point was emphasised by industry trade-body RenewableUK’s Deputy Chief Executive Maf Smith:

“The need to develop a secure, home-grown supply of electricity in a cost-effective way is at the forefront of people’s minds right now, so it’s good to see wind energy consistently ticking all the right boxes, month after month.

“To meet the energy needs of homes and businesses throughout the UK, it’s vital that we keep on harnessing one of Britain’s best natural resources. This makes us less reliant on expensive imported energy from volatile international markets”.

Last week the Department of Energy and Climate Change (DECC) published it’s Provisional Energy figures for 2013. The final figures are expected to be published next month.

The provisional figures revealed a surge in the amount of the UK’s energy demand being supplied by low-carbon electricity. Indeed, nearly one third of the country’s entire energy demand in 2013 was met by electricity produced from low-carbon sources such as onshore and offshore wind.  In 2013, 32.7% of the country’s energy needs were met from low-carbon sources. By comparison, in 2012 29.4% of the country’s energy needs came from such sources.

Much of this increase is attributed to the surge in wind capacity and output that the UK underwent in 2013. In 2013 7.7% of total energy demand was met with electricity produced from wind. In 2012 this figure stood at 5.5%. From we can see that the UK’s wind industry increased it’s capacity by 38% year on year. An impressive and encouraging figure.

The UK’s offshore wind industry saw particularly pronounced growth. According to sources at RenewableUK the period from June 2012 to July 2013 saw the completion of four separate major offshore wind developments. During this period offshore capacity increased from 1.86 GW (Gigawatts) to 3.3 GW. An increase of a startling 79%.

Of course the more mature onshore wind industry would find it difficult to replicate such figures but that is not to say that the onshore industry did not experience significant growth of it’s own. 1.29 GW of new capacity was added to the grid over the period June 2012 – July 2013. This was a 25% increase in capacity which now stands at 6.4 GW.

Interestingly, the increases in low-carbon generation were achieved despite a reduction in the amount of electricity produced from hyrdo-stations. Hydro-power generation in 2013 decreased by 1.2% compared to 2012. Many have attributed this drop to low levels of rainfall experienced in areas around some hydro-power plants. This reduction in hydro output only serves to emphasize the great strides made by the UK’s wind industry.

As with the National Grid figures it should be noted that the provisional figures released by DECC will be lower than the actual generation levels. These provisional figures are only produced from data supplied by the major power suppliers and thusly do not include the amounts of electricity produced from the country’s many single turbine and small and medium scale wind farms (such as those developed by Intelligent Land Investments (Renewable Energy)). The final figures published next month are expected to be higher and therefore more accurate.

Maria McCaffery, Chief Executive of RenewableUK commented on the publication of the provisional figures:

“It’s great to see the way wind power has grown in just one year. Each unit of wind power production means that we’re having to import less foreign fuel – especially gas which is eyewateringly expensive. There has been a steady decline of UK production of traditional energy sources, so we need to make sure there is something replacing that – and wind is increasingly playing that role. Developing our wind resource doesn’t just provide security of energy supply, it also tackles climate change and creates jobs in some of the areas which need them most. It’s crucial that we continue to develop our ability to harness our abundant natural resources to generate clean power.”

We at Intelligent Land Investments (Renewable Energy) are delighted to have played a part in setting new wind generation records. We also look forward to helping set new records with our already installed turbines and also those of our developments which will have completed construction in the near future.