The deal signed between Siemens and Dong Energy to supply 300 offshore wind turbines, estimated to be worth Eur2.5 billion, reaffirms the ‘fantastic’ potential for the UK to become a leader in offshore renewables, according to WWF-UK. The group warns, however, that Government indecision over support for renewable energy was creating uncertainty in a sector which needed to plan investment decisions for the long term.

Jenny Banks, energy policy officer at WWF-UK, says: “This deal is fantastic news for the UK but it’s coming despite, not because of, what the Government’s doing. Political rows over support for renewables between DECC and the Treasury risk serious damage to this sector, even though the economics of wind are, according to the CBI, ‘blindingly obvious’. The Government also needs to be aware that the industry’s also looking for certainty beyond 2020 too – otherwise there’s a danger that serious investment like this in the UK economy will simply drop off a cliff-edge.”

Bord Gais Energy has formed a partnership with Siemens Ireland that will allow Irish businesses to avail of a full, end to end energy efficiency service for the first time. The two brands will combine their extensive expertise to the benefit of Irish companies looking to increase energy efficiency and reduce energy consumption.

The initial deal between the two companies is for three years, but it is being viewed as a long term strategic partnership that will benefit Bord Gais Energy customers now and in the future. By combining their respective expertise and experience, Bord Gais Energy and Siemens expect to deliver significant benefits for client companies help them implement energy savings of up to 20%.

The first partnership of its kind, Bord Gais Energy and Siemens are offering Irish businesses an opportunity to improve energy efficiency, through assessment, design, implementation and management, without incurring additional costs.

Siemens and BGE will develop a tailored solution to a company’s specific needs and investment capability which can be paid for by the savings made in energy spend within the first few years.  The significant advantage of this service is that Bord Gais Energy and Siemens can tell a customer how much they can save before they ever spend a cent.  

Dave Kirwan, managing director of Bord Gais Energy, explains: “This is a significant development for Bord Gais Energy in that we are yet again extending our core business. By partnering with Siemens to become the first total energy solutions provider in Ireland, Bord Gais Energy is once again leading the way in the energy market by offering comprehensive services to help our customers use less energy.”

Paul Lynam, chief executive of Siemens, Dublin, comments: “Globally Siemens has completed more than 1,000 energy efficiency projects which have reduced energy costs by some €2 billion, while CO2 emissions were also reduced by around 1.2 million tons. We are delighted to be participating in this partnership and look forward to working together with Bord Gáis Energy in delivering sustainable savings for Irish business. While every case will be assessed individually, based on our experience of international projects, average energy cost savings of 15-20% can be realistically achieved.”

The new service will initially target high energy users in the industrial and commercial sector and will be rolled out to SMEs over the following 12 months.

2011 was a stable year for the offshore wind industry with 235 new offshore wind turbines grid connected, worth approximately Eur2.4 billion. The European Wind Energy Association’s offshore wind statistics for 2011 show that 235 new turbines with a total power capacity of 866 Megawatts (MW) were fully grid connected across nine offshore wind farms. This was slightly down on the 883 MW of new offshore wind capacity connected in 2010.

Nine offshore wind farms currently under construction will bring online an additional 2375 MW – increasing the EU’s total installed offshore wind power capacity by 62%. Across the EU, a total of 1,371 offshore turbines have now been grid connected, with a total power capacity of 3813 Megawatts in 53 wind farms in ten European countries.

EWEA’s target for installed EU offshore wind power capacity by 2020 is 40,000 MW, producing approximately 4% of the EU’s total electricity consumption.

“The offshore wind sector witnessed a stable market in 2011,” says Justin Wilkes, policy director of EWEA. “Despite the economy-wide financial squeeze, 2011 saw a 40 per cent increase on the previous year in offshore non-recourse debt financing, up from Eur1.46 billion in 2010 to Eur2.05 billion in 2011.”

He continues: “The strong project pipeline and financial developments highlight the importance of countries continuing to provide and develop stable long-term frameworks for offshore wind power in order to allow the industry to continue its development.”

The majority (87%) of all newly installed and grid connected offshore wind power in 2011 was in British waters. Siemens supplied 80% of the MW installed offshore last year while SSE and RWE Innogy were the most active developers and DONG Energy continued to be the most active equity player in offshore wind power.

Renewable Energy World Europe, Europe’s leading renewable energy conference and exhibition has announced ‘Integrating the power sector’ as the central theme for the 2012 exhibition and conference taking place 12-14 June at the KolnMesse, Cologne. In addition, Dr Michael Suess, chief executive of Siemens Energy Sector and member of the managing board of Siemens, has been confirmed as the keynote speaker for the opening session. The event will once again be co-located with POWER-GEN Europe.

With Europe’s future electricity supply facing a major integration challenge – namely the convergence of conventional power and fast-growing renewable generation – flexible solutions are increasingly being brought to market. This raises the question of how to meet the demands of this evolving energy sector. Renewable Energy World Europe will bring together leading figures in the industry to address this compelling issue.

“We are delighted to be holding the 2012 conference in Germany,” says David Appleyard, conference director at Renewable Energy World Europe. “Nowhere is our key theme of ‘integrating the power sector’ more compelling, given Germany’s decision to phase out all nuclear power by 2022. We can’t wait to build on the success of our 2011 exhibition, which together with POWER-GEN attracted 15,000 attendees and a conference featuring 70 sessions and 250 speakers presenting over the course of the three days.”

At Renewable Energy World Europe, industry professionals can appreciate the big picture and truly engage with the direction that the industry is heading. The event provides a comprehensive programme of strategic, technical, keynote and plenary sessions, along with over 600 exhibitors showcasing their products and services. A full conference programme includes sessions on flexible generation, energy storage, smart grids and infrastructure management among the other key issues explored. For more information about the show, visit www.renewableenergyworld-europe.com.

UK businesses can now apply for green equipment finance from Carbon Trust and Siemens. Worth up to £550 million over the next three years, the dedicated low carbon finance scheme is the first of its kind and will enable UK businesses to invest in cost effective energy efficiency equipment and other low carbon technologies, such as new efficient lighting and biomass heating.

Siemens Financial Services UK will provide the financial backing and manage the provision of funding, whilst Carbon Trust Implementation Services (a subsidiary of the Carbon Trust) will use its expertise in carbon saving from energy efficient technologies to independently assess the carbon, energy and cost savings of any project. This should enable the financing to pay for itself through energy savings and result in no net cost to the customer.

Twenty European companies and associations are calling on EU heads of State to show the courage and vision to create a single market for electricity by 2015.

European legislation has guaranteed some choice of electricity provider, but only 5% of Europe’s electricity is traded across borders. As a consequence, competition is inefficient and allows electricity suppliers to pass any increase in the price of the coal, gas – or in the future carbon – straight onto the consumer without risk of significant loss of business. This is not acceptable.

A properly functioning European market in electricity would have many benefits:

* increased competition leading, in the long-term, to reduced electricity prices

* improved security of supply (and reduced risk of blackouts)

* reaping the full advantages of fuel-free, pollution-free renewable energy sources produced in ever greater quantities in many parts of Europe

* opportunities for increased trade in electricity regardless of the source.

Companies supporting the declaration are: Acciona, Enercon, Enel Green Power, EON Climate & Renewables, GE Energy, Mainstream Renewable Power, PPC Renewables, RES, Siemens, SSE Renewables, Vattenfall and Vestas.

Associations supporting the declaration are: European Biomass Association (AEBIOM), European Geothermal Energy Council (EGEC), the European Photovoltaic Industry Association (EPIA), the European Renewable Energy Council (EREC), the European Solar Thermal Electricity Association (ESTELA), European Biomass Industry Association (EUBIA), European Wind Energy Association (EWEA) and the Friends of the Supergrid.

In order to achieve a single market in electricity, Europe needs both the infrastructure to transport electricity from one part of Europe to another, and a common set of market rules. An interconnected system of roads, railways, shipping and air routes throughout Europe is a precondition for maintaining Europe’s four freedoms, created by the Single European Act 25 years ago: the free movement of goods, services, capital and labour. Europe needs a fifth freedom – the free movement of electricity across borders – and effective competition and an interconnected electricity grid are key to establishing it.

118 new offshore wind turbines were fully connected to the grid in the first half of 2010 according to new statistics released by European Wind Energy Association (EWEA). Those 118 turbines have a capacity of 333 MW – well over half the 577MW installed offshore last year – showing continuing strong growth in offshore wind power despite the financial crisis. In addition, 151 turbines (440 MW) were installed but not yet connected to grid.

Overall 16 offshore wind farms totaling 3,972 MW were under construction. Of these, four became fully operational: Poseidon in Denmark, Alpha Ventus in Germany, Gunfleet Sands and Robin Rigg in the UK.

To date in Europe there are 948 offshore wind turbines in 43 fully operational offshore wind farms, with a total capacity of 2396MW.

Among the developers E.ON Climate and Renewables developed 64% of the offshore capacity grid connected during the first half of 2010, followed by Dong (21%) and Vattenfal (11%). Among the manufacturers Siemens accounted for 55% of the offshore capacity grid connected during the first half of 2010, Vestas 36% and REpower 9%.

“Despite the financial crisis offshore wind continues to be a major growth industry,” says Justin Wilkes, director of policy at EWEA. “The number of offshore wind turbines connected to the grid is in the first half of this year is well over half the total amount installed all last year and I am confident we are heading for a record year.”

He continues: “There is no doubt this burgeoning industry is being held back by a lack of finance. Projects led by utilities are less affected thanks to their ability to fund investments from their balance sheets but independent developers are severely constrained. Loans from public institutions such as the European Investment Bank are crucial and have already helped a number of projects, and this support must be extended further.”

EWEA is the voice of the wind industry, actively promoting the utilisation of wind power in Europe and worldwide. It now has over 650 members from almost 60 countries including manufacturers with a 90% share of the world wind power market, plus component suppliers, research institutes, national wind and renewables associations, developers, electricity providers, finance and insurance companies and consultants.

Ireland’s GDP could fall by as much as 7.5% if the world was to experience a sudden oil or gas price rise, according to a report launched by Siemens. The report, which examines the economic impacts for Ireland of different high oil and gas price scenarios, highlights the particular vulnerability of the Irish economy to such price shocks.

The findings of the report entitled ‘The Economic Impacts for Ireland of High Oil & Gas Prices; Pathways to risk mitigation and a low carbon future’, indicate that the impacts of an oil and gas price rise would be more severe on Ireland than other economies such as the UK, Europe and USA. “Ireland is particularly sensitive to this type of shock particularly the knock-on effects in global markets and trade. Results from the study show Ireland suffering more pronounced economic impacts and a slower recovery as compared with other countries,” according to Dr Werner Kruckow, chief executive of Siemens.

Significant Impact

As a small open economy heavily dependent on world demand for Irish exports, any major shock to the global economy would significantly impact on Ireland. Additionally, Ireland’s high dependency on imported fossil fuels would also further exacerbate the effects of any shock – with ramifications for business and society through higher electricity, transport and heating costs, increased levels of ‘fuel poverty’ and a loss of competitiveness.

The high oil and gas price scenarios presented in the report were constructed within plausible boundaries of future prices from 2010 to 2025. They illustrate alternative futures that may be triggered through one or a combination of events. The price scenarios were then evaluated in co-operation with the ESRI against a baseline scenario to offer a detailed analysis of the impact of each on GDP, inflation, interest rates and wage rates internationally and for Ireland, resulting in GDP drops of between 3.5%-7.5%.

One of the authors of the report Dr Andrew Kelly, AP EnvEcon, says: “These are scenarios not predictions, but you only need look back to the summer of 2008 to see how quickly the price of oil can rise and fall. Nobody can say with certainty what the future market price of oil and gas will be, however, in building these scenarios we set the boundaries within the broader international market outlooks on price. What could make these happen? In the years ahead there are a number of factors which may increasingly contribute to both higher and more volatile prices, including rising demand in emerging economies, natural disasters, political tension and conflict in regions of supply, and of course a diminishing supply pool from which to extract these resources at lower cost. It is another risk we face that should be factored into political decision making.”

Good News

The good news, according to the report, is that Ireland has options to reduce our risk exposure to some of the identified risks. “Ireland’s 80% dependency on imported oil and gas puts the economy at considerable risk. And yet Ireland is surrounded by an abundance of renewable resources that could reduce our risk of exposure, create employment opportunities and reduce emissions. Irish waters have the biggest wave heights, greatest tidal flows and strongest winds in Europe, giving us the potential advantage over other European countries to generate and export energy across the Continent,” comments Dr Werner Kruckow.

The report recommends a number of policy actions that Ireland could undertake on a national level. Ireland needs to develop a plan for a sustainable integrated energy system based on four strategic pillars and do so without delay. They are:

* Maximising Electricity Generation from Renewable Sources,

* Grid Upgrade and Integration into the European Grid,

* Promoting Energy Efficiency & Conservation,

* Maximising Electricity Usage in Transportation.

Siemens will make the following recommendations of policies and measures to Government in the coming weeks to build a sustainable energy system in Ireland;

* Develop a high level 2050 strategy plan with a measurable roadmap for the energy system in Ireland – covering the four pillars outlined above.

* Develop a ‘Carrot & Stick’ approach for business and public sector on energy savings and green house gas emissions. Support investment with tax incentives and favourable financing models.

* Electrifying the Transport Sector – Deliver rail related projects in Transport 21, run hybrid buses in Dublin, speed up implementation of electric cars and related infrastructure. Electrify the national rail network.

* Position Ireland as an attractive test-bed for sustainable pilot projects and encourage industry to participate and lead.

* Modify the Public Procurement Process to take into account life cycle costs and support quick roll-out of projects in the sustainability area.