132 new offshore wind turbines, totalling 523.2 megawatts (MW) were fully grid connected in Europe in the first six months of 2012. This is a 50% increase compared to the same period in 2011 when 348.1 MW were installed.

“Offshore wind power creates jobs in Europe, reduces our fuel import costs, and avoids the global and local health and environmental costs of extracting, transporting and burning fossil fuels. Offshore wind power is increasingly attracting investors, including pension funds and other institutional and corporate investors, but it would be good to see more activity in southern Europe where jobs, investments and growth are desperately needed,” says Christian Kjaer, chief executive of the European Wind Energy Association (EWEA).

2012 could turn out to be the best year ever for offshore wind energy in Europe, as a further 160 turbines, totalling 647.4 MW, are built but awaiting grid connection. This is subject to weather conditions at sea and grid connection delays.

A total of 4,336 MW offshore wind capacity was operating as of 30 June 2012 – up from 3,294 MW in June 2011 – producing electricity for the equivalent of 4 million households.

During the first half of 2012 overall, 13 wind farms were under construction. Once completed these wind farms will account for an additional capacity of 3,762 MW

The total global potential for renewable energy “is substantially higher than both current and future projected global energy demand” is the message of the Special Report on Renewable Energy Sources and Climate Change Mitigation just released by the UN Intergovernmental Panel on Climate Change (IPCC). The report states that renewable energy production will increase “anywhere from roughly three-fold to more than ten-fold by 2050.”

IPCC chairman Rajendra Pachauri cites wind energy’s 32% growth rate in 2009 as an example of “the impressive growth rate of renewables.” The IPCC’s experts on energy and climate science reported that almost half of the new electricity production capacity installed in the world in the two year period 2008-2009 was renewable sources (140 Gigawatts of 300 Gigawatts).

The panel experts state that 19% of the total global electricity supply came from renewable energy in 2008. The share of renewable energy rose to 12.9% of the global primary energy production and provided more than six times more than the global nuclear energy production at 2%.

“During the last two years, our industry installed new wind farms producing electricity equivalent to more than 25 nuclear power stations,” says Christian Kjaer, chief executive of EWEA. “More importantly, the world’s leading scientists have now confirmed that this is merely the beginning of a development that could see wind power providing in excess of 20% of global electricity supply.”

The EU must put extra legislation in place in the lifetime of the current European Commission if it is to meet its commitment to cut domestic carbon emissions by 80-95% by 2050, the European Wind Energy Association (EWEA) has warned.

The European Commission recently released its ‘Roadmap to a low carbon society’ which outlined the need for a “fully decarbonised power sector” by 2050. But the need for action is much more immediate than EU leaders realise.

Since the transport and agriculture sectors will still emit carbon in 2050, the power sector must be at zero carbon by then, and this requires immediate action, says Christian Kjaer, chief executive of EWEA. “Because fossil fuel power plants run for 30 to 45 years, investment decisions taken today will determine our energy mix and carbon emissions in 2050″, he explains. “This means that to achieve a carbon-free power sector by 2050, in theory no new carbon-emitting power plants ought to be built after 2015.”

EWEA proposes in its new report, ‘EU Energy Policy to 2050’:

* A binding “Emissions Performance Standard” (EPS) to limit carbon emissions on new power plants from 2015, starting at 350g/KWh – the emissions of a gas plant – and going down over time to encourage technological progress.

* Reducing Europe’s  domestic emissions by 30% by 2020 instead of the current 20% target, which includes reductions outside the EU.

* Setting domestic emissions reduction targets for 2030, 2040 and 2050, taking the power sector to zero carbon by 2050, as well as a 2030 renewable energy target. Higher emission reduction targets would also help tighten up the Emissions Trading System and make it more efficient.

“Europe needs to agree new policies and targets now for the period after 2020 to achieve the 80-95% emissions reduction it has committed itself to,” he adds. “EWEA believes a more ambitious emissions reduction target for 2020, alongside additional goals for 2030 and 2040, an Emissions Performance Standard and a new renewable energy target for 2030, can drive the ‘revolution in energy systems’ which EU Heads of State recently acknowledged is necessary.”

EWEA believes that wind energy alone could provide 50% of the EU’s power demand by 2050, with the other 50% coming from the many other renewable energy technologies

9.3 gigawatt (GW) of new wind power capacity was installed in the EU during 2010, reaching a total of 84 GW by the end of 2010, according European Wind Energy Association (EWEA). While offshore wind power installations grew 51% from 582 MW in 2009 to 883 MW last year, new onshore wind power installations (8.4 GW) were down 13.9% compared to 2009 (9.7 GW).

“These figures are a warning that we cannot take for granted the continued financing of renewable energy,” points out Christian Kjaer, chief executive of EWEA. “Better access to financing is urgently needed, and the European Union must act without delay to prevent Europe losing its leadership in wind power and other renewable technologies.”

Total investments in new wind power plant was unchanged at Eur13 billion, compared to 2009, due to the larger share of offshore wind capacity. Newly installed capacity in 2010 (9.3 GW) was 10% down on 2009 (10.3 GW).

“Remarkable growth in the onshore wind markets of Romania, Poland and Bulgaria could not make up for the decline in new onshore installations in Spain, Germany and the UK. Strong development of the offshore wind market was lead by the UK, Denmark and Belgium,” says Christian Kjaer.

The overall market for renewable power capacity, including wind, solar, hydro and biomass, reached record levels in 2010, increasing 31% from 17.5 GW in 2009 to 22.6 GW in 2010. Renewable energy accounted for 41% of all new installations.

Wind power installations accounted for 17% of new electricity generating capacity in 2010, the first year since 2007 that the EU did not install more wind power than any other generating technology.

The EU continues to move away from fuel oil and nuclear power for electricity production, decommissioning more old capacity than installing new capacity. However, for only the second time since 1998, the EU installed more coal power capacity than it decommissioned in 2010. 28 GW of new gas capacity was installed last year, compared to 6.6 GW in 2009. Gas represented 51% of all new power capacity in 2010.

The wind power capacity installed by the end of 2010 will, in a normal wind year, produce 181 TWh of electricity (up from 163 TWh), meeting 5.3% of overall EU electricity consumption (4.8% in 2009)

With 308 new offshore wind turbines installed in 2010 – an increase of 51% in installed wind power capacity on the previous year – offshore wind power experienced a new record growth in Europe. In total, 883 Megawatt (MW) of new capacity, worth some €2.6 billion, were installed in 2010 in nine wind farms in five countries, making a total of 2,964 MW.

The installed offshore wind power capacity now supplies the equivalent of 2.9 million average EU households with electricity – comparable with the amounts of power consumed by the cities of Berlin and Brussels together – from a total of 1,136 offshore wind turbines. In a normal wind year they would produce 11.5 Terawatt hours (TWh) of electricity.

These figures are published by the European Wind Energy Association (EWEA) in its European offshore wind industry – key trends and statistics 2010.

Leading Countries

They show the UK to be European (and world) leader, with a total installed offshore wind capacity of 1,341 Megawatt (MW). The UK is followed by Denmark (854 MW), the Netherlands (249 MW), Belgium (195 MW), Sweden (164 MW), Germany (92 MW), Ireland (25 MW), Finland (26 MW) and Norway with 2.3 MW.

EWEA’s chief executive, Christian Kjaer comments: “With over 50% market growth, 2010 sets a new record for European offshore wind energy. Meanwhile, the 29 new offshore turbine models announced during 2010 show a growing commitment to the offshore wind energy sector by large, global industrial players, offering a real boost for Europe’s economy, its efforts to tackle climate change, create green jobs and exports while reducing our dependence on imported fuel”.

During 2010, 29 new offshore turbine models were announced by 21 manufacturers: 44 new turbine models have been announced by 33 manufacturers over the last two years.

Financing Environment

2010 saw an improving financing environment with private banks, financial institutions like the European Investment Bank (EIB), utilities and pension funds backing the sector. Two major deals completed in 2010 highlighted the brighter financial outlook: Thornton Bank C-Power and Trianel Wind Farm Borkum West both came to financial close.

“Finance remains a big challenge but we are seeing improvements with more banks and other financing institutions ready to invest in large offshore wind projects,” says Christian Kjaer.

Outlook

EWEA forecasts continued strong growth next year. Between 1,000 and 1,500 MW of new offshore wind power capacity is expected to be fully grid connected in Europe during 2011, compared with 883 MW of new capacity in 2010.

Ten European wind farms are currently under construction with a total of 3,000 MW – these will more than double the installed capacity in the 45 already grid connected offshore wind farms.

EWEA research shows that a total of 19,000 MW of offshore wind capacity is already fully consented. If constructed, it would generate 66.6 Terawatt hours of electricity in a normal wind year – enough to supply 14 of the largest capitals in Europe with electricity, including Paris, London and Berlin. Not included in this figure is large additional offshore wind energy capacity planned but not yet fully consented in the UK.