Offshore
stability within its energy market. Yet, several of Europe’s energy problems still need to be overcome. Offshore wind power boasts great potential for tackling some of them.
Boost energy security
“Offshore wind has a huge potential to contribute to the energy transition,” says Per-Erik Holsten, head of ABB Energy Industries Northern Europe. “From increasing energy security and self-sufficiency for both households and industries to creating jobs, the benefits are clear. Not to mention that offshore wind will also play a key role in addressing the decarbonisation goals set in the global fight against climate change.” Since the breakout of the war in Ukraine, Europe has been searching for ways to reduce its dependence on Russian oil and gas. In 2021, Russian natural gas accounted for almost 45% of the EU’s gas imports, while oil made up about a third of the EU’s oil imports, according to the International Energy Agency (IEA). Of all the different types of green energy, offshore wind power is well posed to help quickly divest Europe from Russian fossil fuels.
“Offshore wind is cost-effective, but pricing is highly dependent on capacity. The more green energy sources that enter production, the greater the local supply, the bigger the impact on energy costs,” says Holsten. “For example, during the summer when we had a lot of wind capacity, we saw energy prices coming down as a result.” Naturally, improving energy supply within European countries and reducing the need for imports will also boost energy security across the continent. Russia is already feeling the impact on its energy exports, which the IEA predicts will fall by 7% in the coming decades. Indeed, the nation’s revenue from oil and gas was down a whopping 45% year over year in the first quarter of 2023. Similarly, it’s worth noting that unlike other forms of energy generation, offshore wind doesn’t take up valuable land – something that’s particularly useful for nations like the UK that control vast swathes of ocean. By 2030, the UK intends to increase its offshore wind energy capacity to 50GW, up from the 14GW it’s supplying into the grid in 2023 – an ambitious goal, to say the least, and one that will require a lot of turbines and a lot of workers. If the UK is to hit this target, more than 106,000 people will be employed in the country’s offshore wind industry, according to the Offshore Wind Industry Council, presenting clear economic benefits for the region. And while the UK has a long way to go over the next seven years, we’re already seeing major projects in development, Holsten says. These include the Hornsea Wind Farm, of which the first two subzones are already completed and operational, with Projects 3 and 4 set to be up and running in 2025 and 2027, respectively, with a total capacity of about 6GW.
World Wind Technology /
www.worldwind-technology.com
ABB is heavily involved in the work at Hornsea 3, Holsten notes, and in the upcoming Dogger Bank, which is set to become the world’s largest wind farm upon its completion. The project will be built in three 1.2GW phases – Dogger Bank A, B and C – and will be fully operational by 2026 – a key step in the UK reaching its 2030 targets.
“If the UK reaches its goal of 50GW by 2030, it will jump from 18% offshore wind power being supplied into the UK grid to over 60%,” Holsten notes, “delivering renewable energy to all 30 million UK households with a surplus to still export and power a further 37 million homes in neighbouring countries.”
Permitting and storage challenges That’s not, of course, to suggest that offshore wind doesn’t come with its own challenges – with issues around permitting posing one of the biggest obstacles at play. “Governments have different speeds of implementing and giving permits to developers,” Holsten explains. Indeed, some 21GW of offshore wind power capacity was stuck in permitting procedures across Europe as of April, according to WindEurope – and some European countries can take up to nine years to hand out a permit for a project. “In the US, you have the Inflation Reduction Act (IRA), which actually promotes and speeds up the permitting process – and also to a certain extent provides tax incentives and [other] incentives for developers to move faster,” he notes. “In Europe, we are not that far along with our [IRA-equivalent] policies, yet.”
“Offshore wind is cost-effective, but pricing is highly dependent on capacity. The more green energy sources that enter production, the greater the local supply, the bigger the impact on costs.”
Indeed, Europe has struggled in its wind energy development over the past few years, installing only 16GW of new wind in 2022 when it needs an average of 31GW per year to meet its 2030 targets. Holsten believes that many European nations can learn from the UK in terms of the goals it has set for itself for offshore wind capacity. However, he notes that the UK also has room for improvement, particularly when it comes to its government and other relevant authorities speeding up the various processes and permitting at play. Similarly, it’s also worth noting that wind power – whether offshore or onshore – is not a constant source of energy, and fluctuations in generation depending on wind levels are an inherent aspect of this energy source. This can present problems for the grid – not only when wind levels are too low, but also when they’re too high. Between October 2022 and January
17 $78bn
The amount that the UK government had to provide in support to households and businesses following the spike in energy prices upon the Russian invasion of Ukraine. New Statesman
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