UK Round 3 announcements - developers commit to offshore wind plans

13 January 2010


The UK government says that the signing of agreements with developers for a massive offshore wind energy construction programme has “substantially” strengthened the UK’s long term energy and climate security.

The Crown Estate – owner of the UK’s coastal seabeds – has granted rights to nine different consortia for the construction of up to 32 GW of wind energy capacity in the waters around the country. The developers will now take their proposals through the planning and consenting phase.

The ‘Round 3’ announcement follows the competitive tender of nine marine zones around the UK and represents the largest expansion of wind energy ever seen in the world. The projects proposed in the nine zones will require a total investment of almost £100 billion, according to law firm Norton Rose, which advised the Crown Estate on the tendering process.

“Our policies in support of offshore wind energy have already put us ahead of every other country in the world,” said Prime Minister Gordon Brown. “The offshore wind industry is at the heart of the UK economy’s shift to low carbon and could be worth £75 billion and support up to 70 000 jobs by 2020 … The government will work with developers and The Crown Estate to support the growing offshore wind industry and help remove barriers to rapid development.”

Developers that have signed zone agreements include Moray Offshore Renewables, a consortium of EDP Renovaveis and SeaEnergy Renewables that will develop up to 1.3 GW of capacity in the Moray Firth Zone, and SeaGreen Wind Energy, which is owned by SSE Renewables and Fluor and which will develop 3.5 GW in the Firth of Forth Zone. Meanwhile SSE Renewables, RWE npower renewables, Statoil and Statkraft will together develop up to 9 GW of capacity in the DOgegr Bank Zone through the Forewind Consortium.

The developers will now set about finding finance for their proposed projects, and several have called for a long-term, stable support mechanism for offshore wind energy.

Earlier offshore wind energy rounds tendered for development by the Crown Estate have resulted in proposals totalling 8 GW of capacity. Offshore wind capacity in the UK is currently less than 700 MW, and only about 2 000 MW worldwide.

The development of the Round 3 projects is therefore expected to stimulate massive levels of investment in the wind energy supply chain, including wind turbines, foundations, steel work, cabling and installation vessels.

“This is about delivering a whole new industry for the UK, one that provides sustainable, secure and indigenous power as well as tens of thousands of new jobs throughout the supply chain,” said Dr. Eddie O’Connor, CEO of Mainstream Renewable Power, which owns half of the consortium developing the 4 GW Hornsea Zone. “This will have a major impact on the long-term economic development of the UK as well as positioning it as the global leader in offshore wind generation.”

Other zones being developed include Norfolk Bank, where Scottish Power Renewables and Vattenfall Vindkraft will develop up to 7.2 GW, and the 0.6 GW Hastings Zone, which will be developed by E.On Climate and Renewables. Eneco New Energy will build 0.9 GW of capacity in the West of Isle of Wigh Zone, while RWE npower renewables will develop 1.5 GW in the Bristol Channel.

Centrica Renewable Energy and RES Group will develop up to 4.2 GW in the Irish Sea Zone.




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