ScottishPower Renewables gives green light to 'best value offshore wind farm in the world'

Energy giant announces final investment decision for giant £2.5bn East Anglia ONE offshore wind farm, which will deliver power at £119/MWh

ScottishPower Renewables has today confirmed it is to start work on the 714MW East Anglia ONE offshore wind farm, hailing it as the “best value offshore windfarm in the world”.

The company said it had reached a final investment decision for the £2.5bn project, which is now expected to create up to 3,000 jobs during construction before coming fully online in 2020.

The project is expected to deliver enough clean power for 500,000 homes and has secured a price support contract of £119/MWh through the UK’s first renewable energy auction process.

ScottishPower Renewables said the contract meant the project would deliver clean power at a price that is 15 per cent lower than any other offshore wind farm project currently under construction in UK waters.

The projects is also regarded as the latest step towards the industry’s goal of delivering offshore wind power at a price of below £100/MWh from 2020, a benchmark that ministers have said developers will have to meet if the industry is to continue to expand post-2020.

However, critics of offshore wind development, including supporters of some rival clean technologies, argue costs remain at more than double current wholesale power prices and have called for greater competition between all clean energy sources for price support contracts.

“East Anglia ONE will deliver substantial environmental benefits for the UK, it will stimulate considerable UK investment, and it will support thousands of jobs,” said Charlie Jordan, ScottishPower Renewables East Anglia ONE project director, in a statement. “Offshore wind has proven itself as a technology that works, and the more offshore wind capacity we have in the UK, the more secure our energy supplies will be.”

He added that the project would provide a boost to the wider East Anglia region, with the company inking a £25m deal with the Port of Lowestoft and vowing to spend at least half of the total £2.5bn investment in the UK.

“East Anglia has some of the best conditions anywhere in the world for the development of offshore wind, and we are fully committed to the region, with future developments already in the pipeline,” Jordan said. “ScottishPower Renewables is leading the way with its approach of actively working towards a target of at least 50 per cent UK supply chain content over the lifetime of the East Anglia ONE project. We have already worked with a wide range of companies across East Anglia and we look forward to working with many more.”

The announcement is the latest boost to an offshore wind sector that has been tipped by Ministers to play a major role in the UK’s future clean energy mix, as long as it continues to deliver cost reductions.

The news follows confirmation from rival developer DONG Energy that it is to build the giant 1.2GW Hornsea Project One wind farm, touted as the world’s largest wind farm, off the Yorkshire coast, delivering clean power to over one million homes from 2020.

Further reading

ScottishPower Renewables gives green light to "best value offshore wind farm in the world"

Alan Northcutt, guest columnist: Clearing up myths about clean energy, today's renewables

In his Feb. 10 column in the Tribune-Herald, Bill Hammond of the Texas Association of Business disparaged President Obama’s Clean Power Plan and opposed current actions to combat anthropogenic climate change. Since accurate information is mandatory during this planetary emergency of climate change, it is important to point out the myths which riddle Mr. Hammond’s column.

Myth 1: “The science of climate change is anything but settled.” This dangerous, ubiquitous meme promotes delay in addressing the problem. The truth: 97 percent of peer-reviewed climatology research, every legitimate scientific association on Earth, the pope and the 195 nations that signed the Paris Agreement in December accept the concept of manmade climate change. Even the U.S. Department of Defense observes that “climate change poses immediate risks to the U.S. national security and has potential to exacerbate terrorism.”

Myth 2: The U.S. Clean Power Plan results are so small they “cannot be measured.” In reality, the plan is designed to reduce greenhouse gases from electricity generation by 32 percent. This reduction is one-fourth of the requirement of the Paris Agreement and thus a strong beginning toward that goal. And the announcement of the plan convinced other nations that the United States is serious about combatting climate change.

Myth 3: “We truthfully don’t know whether all nations acting together can have a measurable impact on the climate.” When the 195 nation signatories of the Paris Agreement reach their commitments for emission reductions, global temperature will increase from 2.7 to 4.0 degree C. This is an enormous improvement over uncontrolled emissions, which would result in greater than 6.0 degree temp increase, a level incompatible with human civilization. Each five years the nations will ratchet up emission limits with an ultimate goal of 1.5 degree temperature increase — a level which will prevent the worst ravages of climate change.

Myth 4: The United States will suffer economically, while developing nations like China and India continue to pollute. Using China and India as an excuse for the United States’ inaction is now utterly fraudulent. The 195 countries of the Paris Agreement signed a legally binding commitment to reach their Intended Nationally Determined Contribution (INDC). Essentially every country on Earth has published a verifiable carbon emission limit and operates under similar timetables. China has begun a very ambitious plan to reach its emission limits by 2030, not beginning in 2030 as Mr. Hammond states. And China is a leader in renewable energy technology, with more installed wind and solar power than any country on Earth.

Myth 5: “Americans will face lost jobs, lost income and huge utility bills.” The Paris Agreement committed the world to a low-carbon economy, with jobs needed in energy efficiency retrofit, mass-transit services, smart-grid construction and wind, solar and biomass industries. A study by Robert Pollin of the University of Massachusetts reported that a $1 million investment in the green economy yields 17 jobs, while a $1 million investment in fossil fuels yields only five jobs.

Workers losing jobs in fossil-fuel industries will find new jobs in the green economy as we transition to renewables. The purchase cost of renewable energy is a complex issue, but in some markets renewable generation is now cheaper than coal or natural gas. For example, Austin Energy recently contracted with a solar farm at less than five cents per kilowatt-hour.

Myth 6: Solar and wind power will only become relevant when new battery technology is developed. The truth: Renewable energy is enormous and growing faster than fossil fuels. The following jurisdictions are powered by 100 percent renewable energy: Iceland; Bonaire; Lesotho; Aspen, Colorado; Burlington, Vermont; Greensburg, Kansas; Beaverton, Oregon; and Kodiak Island, Alaska. And solar thermal facilities exist which store electricity as heat for 24-hour power. There are more than 60 units around the world, including the 392-megawatt Ivanpah System in the Mojave Desert. And battery storage is actually available now, including the Powerwall system from Tesla for residential use.

Myth 7: “We must be patient and let science and technology work at a careful reasonable pace to find energy solutions instead of crippling our economy…” In other words, Mr. Hammond wishes to delay implementation of our conversion to renewables so that oil companies can maximize profits. Unfortunately, we cannot delay since the planet’s carbon budget will be exceeded in about 16 years and we will experience crop failure, worsening starvation, migration, inter-nation conflict, submerging cities; and devastating storms.

Fortunately, we do have the technology now to convert fully to clean energy, documented by the Stanford Engineering Department at TheSolutionsProject.org. We must use this technology, along with conservation, to protect our children’s future. As for Mr. Hammond’s concerns, there is no economy on a dead planet.

Alan Northcutt is a local physician and director of the Waco Friends of Peace/Climate.

Alan Northcutt, guest columnist: Clearing up myths about clean energy, today"s renewables

Future looks green as cost of renewables falls

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Costs of renewable energy have fallen by as much as 75 per cent in the last five years, especially for solar and wind energy. “Onshore wind power …

Future looks green as cost of renewables falls

New umbrella body for renewables sector formally launched

The SA Renewable Energy Council (Sarec) has been formally launched as the umbrella body and ‘single voice’ for all renewable-energy associations in the country.

According to an Engineering News report, the organisation comprises the SA Photovoltaic Industry Association, the SA Wind Energy Association (Sawea), the Sustainable Energy Society of Southern Africa and the Southern African Solar Thermal and Electricity Association, and has set up offices in Johannesburg. Chair Johan van den Berg, who is also CEO of Sawea, said Sarec had its genesis in 2011 when the various associations participated individually in the drafting of the Green Economic Accord. Through that process, government made a request for the creation of a single entity with which it could consult. Van den Berg does not envisage Sarec displacing the lobbying and advocacy efforts of the various member associations. Instead, it will seek to encourage the development and deployment of renewable energy in SA’s energy mix. One of Sarec’s first projects will be the production of a documentary exploring the impact that the first wind and solar projects have had on surrounding communities, the report states.
Full Engineering News report

Staying with renewables: With increasing pressure of load shedding this winter, one of the biggest wind farms in SA has started operating commercially and will be officially inaugurated in July, says a report in The Herald. The Jeffreys Bay Wind Farm achieved its commercial operations date on schedule and on budget to supply 460 000 megawatt (MWh) of green electricity a year to the Eskom grid, according to the report which notes this is enough energy to power more than 100 000 homes. All 60 turbines at the wind farm were commissioned and connected to the Eskom grid last month, and last week the energy provider gave the operators the go-ahead after fulfilling all the requirements to provide electricity to the grid. ‘It is astounding to think this project was constructed in just 18 months. It is testament to how swiftly renewable energy can be deployed to help meet the energy needs of SA,’ project manager Leo Quinn is quoted in the report as saying.
Full report in The Herald (subscription needed)

New umbrella body for renewables sector formally launched

Renewables the solution to UK's critical fossil fuel shortage – report

Renewables the solution to UK’s critical fossil fuel shortage – report

Friday, May 16th, 2014 By Tom Revell

The UK faces a desperate shortage of natural resources such as oil and coal, according to a troubling new report that underlines the need for significant investment in renewable energy.

In new analysis, researchers from Anglia Ruskin University’s Global Sustainability Institute (GSI) have comprehensively mapped known international reserves of resources, also looking at supplies of food and water.

They found that the UK’s own reserves contain only enough oil to last 5.2 years at the current rate of consumption, with just 4.5 years of coal and three years of gas.

This means the UK is slightly better off than some of its neighbours – France, for example, has less than a year’s worth of oil, gas and coal.

However, some other European states are far better off. Russia has enough oil to sustain itself for over 50 years, with over 100 years of gas and more 500 years of coal, based on current internal consumption.

Norway has enough natural gas to last itself 420 years, while further afield, Qatar could continue consuming its gas reserves at the current rate for over a millennium.

“These maps show vulnerability in many parts of the EU and they paint a picture of heavily-indebted European economies coming under increasing threat from rising global energy prices”, said Dr Aled Jones, director of the GSI.

Prof Victor Anderson, also of the GSI, added that the report highlighted the need for alternative energy sources.

“The UK urgently needs to be part of a Europe-wide drive to expand renewable energy sources such as wave, wind, tidal and solar power”, he said.

Above: European resource maps for coal, gas and oil (click to enlarge).

Increased energy security is one of the biggest advantages that domestically produced renewable energy brings.

In April, a committee of MPs criticised the British government for failing to deliver plans that offer a secure, long-term energy supply.

This came after the Conservative party pledged to cut support for onshore wind projects and the Coalition government altered subsidies for solar power, making investors uneasy about the prospects of renewable projects.

The analysis is the first phase of the GSI’s ambitious Global Resource Observatory project, a survey that will provide an international database of national demand, supply and flow figures relevant to global resource security.

The first published findings also include a map of food reserves, finding that while Europe, America and Russia are well stocked, Africa the Arabian Peninsula and the Caribbean are highly dependent on imports.

Photo: johnny choura via Flickr

Further reading:

Guy Hands: Ukraine crisis shows importance of renewable energy

MPs criticise government’s short-termist national energy security plan

Energy security, fuel poverty and social change: the lowdown on renewables

Investments in renewables must increase, warns UN

Global Sustainability Institute to map effects of global resource shortages

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Renewables the solution to UK"s critical fossil fuel shortage – report

How far can you cut energy costs by investing in renewables?

Roof-mounted solar thermal systems to heat water are the easiest measure to install, and RHI payments should cover about half the cost over seven years. Photograph: Andrew Butterton/Alamy

The domestic renewable heat incentive (RHI), which was first proposed in 2010, was finally launched this week. Ministers say it is the first scheme of its kind in the world offering financial incentives to householders to install low-carbon heating systems. So do the figures add up for householders?

Who is it for?

It’s open to everyone, but the upfront and running costs of the technologies mean it will be most attractive to those living in the country who are off the main gas system and rely on oil, liquid gas or electricity for heating. The RHI differs from the feed-in tariffs for solar panels – which pay for electricity generated as well as exported to the national grid – by paying just for the energy predicted to be saved by their introduction.

What will replace my heating system?

Qualifying technologies include biomass boilers that burn wood, wood chips or pellets; roof-mounted solar thermal systems that only provide hot water; and ground or air-source heat pumps which draw heat from warmth underground or from the air.

How do I qualify?

Homeowners will have to pay for an assessment, which typically costs £100-£150, and must use accredited systems and installers to get the cash. You will need basic insulation in place to qualify for the payments.

How much will it cost?

The simplest measure is a solar water system that typically costs £4,000-£5,000 to install and should provide most of a home’s hot water for large parts of the year. Under the terms of the RHI, homes installing these will receive 19.2p per kilowatt hour, calculated according to a formula rather than based on actual consumption.

The Solar Trade Association says a typical four-occupant house will receive around £315 a year – or £2,200 in RHI payments over the seven years of the scheme – equal to around half the cost of the system. It estimates it could save a household £11,000 over its 25-year life, assuming they are no longer using an oil-fired boiler to heat their water.

Biomass boilers typically cost £15,000-£20,000 to install and allow users to do away with their conventional oil-fired boiler. The downside is that they require significant space, not just to house the kit itself, but also the wood or pellets waiting to be burned.

Installing households will receive a typical annual income of £2,200 per year or £15,400 over the life of the tariff in RHI payments, as well as saving the £2,000-£3,000 they currently pay for oil, gas or electricity to heat their home. That assumes a usage of around 18,000 kW/h per year heating the home and hot water. If you have your own supply of wood, the savings will be substantial. Otherwise, the cost of buying in wood or pellets, although much greener, is comparable with the cost of mains gas.

Air-source heat pump systems typically cost £10,000-£14,000 to install and will generate an annual income of just over £1,000 a year in RHI payments for seven years. Savings aren’t so great – typically £700-£800 a year, as the pumps require considerable electricity to run, but again, it will depend on what users currently spend on heating.

How will I be paid?

The energy regulator Ofgem is managing the RHI system and will send households the money. The RHI is paid tax-free each quarter for seven years, rising in line with inflation each year.

Around 18,000 households who have installed systems since July 2009 are already eligible to start receiving the payments.

Cathy Debenham, who runs the renewables advice website YouGen, says: “Its aim is to enable renewable heating systems to compete on a level playing field with fossil fuel ones. The payments compensate the owner for the price difference between the two, including the cost of borrowing money to pay for installation.”

She cautions that people should make sure technologies are right for their property before switching. “Not all renewable heating is appropriate for every property. Heat pumps run at much lower temperatures than a standard boiler, and so they are most suited to well-insulated buildings, ideally those with underfloor heating.”

“Biomass boilers are significantly bigger than an oil boiler and will need more space, plus space to store the fuel, which must be kept dry. Solar thermal panels are not much use if you have electric showers, as most of the hot water they generate won’t be used.”

Oftec, the oil heating industry’s trade body, said the high upfront costs of many of the technologies made the RHI “only fit for the wealthy few”.

The scheme has been welcomed by one Berkshire man, Bernhard Garside, who recently paid Ecovision to install a £14,000 air-source heat pump system. “Under the new domestic RHI I will receive an annual payment of at least £1,000. When I add this to the £2,500 savings I was previously paying for oil to run my expensive and very inefficient oil-fired boiler, I am saving at least £3,500 a year,” he says, although he will see increased electricity costs of £980.

“When I weighed up the cost of anything between £2,500 and £3,500 to replace my old oil-fired boiler, which was well past its sell-by date, plus the annual cost of the oil to run it, this would have been completely dead money,” he says.

How far can you cut energy costs by investing in renewables?