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IEA

Wind Energy
Annual Report
2006

Executive Committee for the

Implementing Agreement for Co-operation


in the Research, Development, and Deployment
of Wind Energy Systems of the

International Energy Agency

July 2006

ISBN 0-9786383-1-x

IEA Wind Energy 1


Front cover: Starfish Hill 34.5 megawatt (MW) wind farm near Cape Jervis on the Fleurieu Peninsula is
South Australia’s first wind farm. Starfish Hill Wind Farm provides enough energy to meet the needs of
about 18,000 households, representing 2% of South Australia’s residential customers. Photo Courtesy:
Roaring 40s.

Back cover: Multi-megawatt wind turbine gearboxes (ranging in size from 1.5 MW to 3 MW) undergo run-
in and qualification tests at this test station at the Hansen Transmissions Lommel factory. The IEA Wind
Executive Committee members posed during a technical tour. Photo credit: Rick Hinrichs.

2 2006 Annual Report


Foreword

The twenty-ninth IEA Wind Energy Annual Report reviews the progress during 2006 of the activi-
ties in the Implementing Agreement for Co-operation in the Research, Development, and Deployment of
Wind Energy Systems under the auspices of the International Energy Agency (IEA)*. The IEA was founded
in 1974 within the framework of the Organization for Economic Co-operation and Development (OECD)
to collaborate on international energy programs and carry out a comprehensive program about energy among
Member Countries. In 2006, 26 countries participated in more than 40 implementing agreements of the IEA.
OECD Member countries, non-Member countries, and international organisations may participate.

The IEA Wind implementing agreement and its program of work is a collaborative venture among
24 contracting parties from 20 Member Countries, the European Commission, and the European Wind
Energy Association. This IEA Wind Energy Annual Report for 2006 is published by PWT Communica-
tions in Boulder, Colorado, United States, on behalf of the IEA Wind Executive Committee. It was edited
by P. Weis-Taylor, with contributions from experts in IEA and in participating organizations from Australia,
Austria, Canada, Denmark, the European Commission, the European Wind Energy Association, Finland,
Germany, Greece, Ireland, Italy (two contracting parties), Japan, the Republic of Korea, Mexico, the Neth-
erlands, Norway (two contracting parties), Portugal, Spain, Sweden, Switzerland, the United Kingdom, and
the United States.

Ana ESTANQUEIRO
Chair of the Executive Committee
2006-2007

Patricia WEIS-TAYLOR
Secretary to the Executive Committee
1998-present

* The IEA Wind implementing agreement functions within a framework created by the International
Energy Agency (IEA). Views and findings within this Annual Report do not necessarily represent the views
or policies of the IEA Secretariat or of its individual member countries.

Web site for additional information on IEA Wind


www.ieawind.org

IEA Wind Energy 3


Foreword

4 2006 Annual Report


Contents
FOREWORD .................................................................................................................................................................3
CONTENTS ....................................................................................................................................................................5
Message from the Chair ...............................................................................................................................................7

EXECUTIVE SUMMARY .....................................................................................................................................9

SECTION I The Implementing Agreement and Active Annexes

Chapter 1 The Implementing Agreement .......................................................................................................31


Chapter 2 Base Technology Information Exchange - Task 11 ............................................................... 37
Chapter 3 Wind Energy in Cold Climates – Task 19 ................................................................................ 43
Chapter 4 HAWT Aerodynamics and Models from
Wind Tunnel Measurements – Task 20 ..................................................................................... 47
Chapter 5 Dynamic Models of Wind Farms for Power System Studies – Task 21 ...................... 53
Chapter 6 Offshore Wind Energy Technology Development – Task 23 ......................................... 57
Chapter 7 Integration of Wind and Hydropower Systems – Task 24................................................. 65
Chapter 8 Design and Operation of Power Systems with Large Amounts
of Wind Power – Task 25 ................................................................................................................. 71
Chapter 9 Highlights From Across the IEA ................................................................................................... 75

SECTION II Member Activities

Chapter 10 Australia .................................................................................................................................................. 77


Chapter 11 Canada ..................................................................................................................................................... 85
Chapter 12 Denmark ................................................................................................................................................ 95
Chapter 13 the European Commission .........................................................................................................107
Chapter 14 Finland................................................................................................................................................... 115
Chapter 15 Germany ...............................................................................................................................................125
Chapter 16 Greece ....................................................................................................................................................133
Chapter 17 Ireland .................................................................................................................................................... 141
Chapter 18 Italy .........................................................................................................................................................145
Chapter 19 Japan ......................................................................................................................................................157
Chapter 20 Republic of Korea.............................................................................................................................165
Chapter 21 Mexico ...................................................................................................................................................169
Chapter 22 the Netherlands .................................................................................................................................177
Chapter 23 Norway .................................................................................................................................................193
Chapter 24 Portugal.................................................................................................................................................197
Chapter 25 Spain .......................................................................................................................................................205
Chapter 26 Sweden .................................................................................................................................................. 217
Chapter 27 Switzerland ..........................................................................................................................................227
Chapter 28 the United Kingdom.......................................................................................................................233
Chapter 29 the United States...............................................................................................................................253

APPENDICES

Appendix A The Executive Committee .........................................................................................................265

Appendix B List of Executive Committee Members,


Alternate Members, and Operating Agents........................................................................266
Appendix C Currency Exchange Rates ..........................................................................................................269

Appendix D Abbreviations and Terminology..............................................................................................270

IEA Wind Energy 5


Contents

IEA Wind Energy 6


Message From the Chair
I am very pleased to report that during 2006
installed wind power capacity again grew at a fast
pace—26% worldwide and 20% in the member
countries of the IEA Wind Implementing Agree-
ment. The IEA Wind member countries represent
83% of worldwide wind capacity. They operate
close to 62,000 MW of wind power that contrib-
utes about 118 TWh or 1.42% of the total electrical
demand of their nations. In 2007, I hope to extend
the IEA Wind cooperation to additional countries
so we may share experience and research results for
the benefit of the planet.
In 2006, our members continued to address
challenges to the increased exploitation of clean, re- Ana Estanqueiro,
newable wind generation through our cooperative Chair of the Executive
research tasks. Responding to the need to clearly Committee, 2006 to 2007.
report and track the cost and value of electricity
from wind energy systems, the member countries operators and the Utility Wind Integration Group
approved a new task to survey the state of the art and from the United States. Task 24 is documenting is-
develop new methodologies to estimate cost of wind sues around the correlation between wind and hy-
energy. To share experience on operation and main- dropower systems to address the need for storage
tenance of wind power systems, Task 11 convened a and regulation of time variable production. Under
workshop of experts, and continuing communica- Task 21, research in dynamic models of wind farms
tion is expected relevant to today’s power plants. For for power system studies has addressed some of the
expanding wind energy into colder climate areas, challenges of electrical system operation. Partici-
Task 19 is documenting research and operational pants have developed models that provide solutions
experience on icing and working on recommenda- to those challenges and will issue a final report in
tions for standards. 2007.
Supporting the push to install more wind tur- For continuing improvement of the technol-
bines offshore, Task 23 addresses issues related to ogy, Task 11 held a workshop on the application of
offshore deployment. Supporting the development smart structures for large wind turbine rotor blades
of highly innovative technology, the group is ex- and Task 20 continued work on aerodynamics. Re-
ploring deep water applications, adopted a baseline newed interest in improving the technology and
turbine model, and developed a procedure and data- consumer information about small wind turbines
base for code comparison and benchmarking. This led to a Task 11 workshop on this issue.
research is supporting the overall Task 23 work and Continuing our efforts in 2007, we will ad-
contributing to the integrated project UPWIND dress issues raised by our member countries and co-
supported by the EU DG Research. The special is- ordinate our research tasks with activities sponsored
sues of integrating offshore wind farms to onshore by the EU and organizations in other areas of the
grids were also addressed in Task 23 work that shares world. We will continue to seek out and welcome
information from the national research programs of observers to IEA Wind from countries that have a
the participating countries. demonstrated commitment to develop wind energy.
Regarding the impacts of large amounts of I strongly believe that the synergies created by many
wind power on electrical systems, key players are countries working together in IEA Wind contribute
working together under several research tasks. Task to a more sustainable development of our world.
25 will produce guidelines and analytic case stud-
ies and has participants from countries that have or
foresee high wind penetration. Contributors also in-
clude the most active European transmission system

IEA Wind Energy 7


Message From the Chair

8 2006 Annual Report


Executive Summary
1.0 Introduction the past 11 years as reported in documents of IEA
Wind (3, 4, and 7) are also included. In this 2006
In 2006, cumulative installed wind power Annual Report, the IEA Wind member countries
capacity increased 26% worldwide and 20% in the report how they have progressed in the deployment
member countries of the IEA Wind Implementing of wind energy, how they are benefiting from wind
Agreement. In the IEA Wind member countries, energy development, and how they are devising
nearly 10,500 MW was added in 2006 for a total of strategies and conducting research to increase its
close to 62 GW of generating capacity. Even more contribution to the world energy supply.
encouraging, electrical production from wind also
increased 20% in IEA Wind countries to about 118 2.0 Progress toward National Objectives
TWh (Table 1). This electrical production from
wind met 1.42% of the total electrical demand in 2.1 Wind Generation Capacity
the reporting IEA Wind member countries—up The dramatic increase in electrical generation
from 1.2% in 2005. The percentage contribution capacity and output from wind in the IEA Wind
from wind grew slowly because electrical demand is member countries can be seen in Figure 1. Capacity
also steadily growing in many of the countries. Even has increased from less than 5 GW in 1995 to nearly
so, the electrical output from wind in the IEA Wind 62 GW in 2006. In 2006, the member countries
member countries was sufficient to cover the total added more than 10 GW of new wind generating
electricity consumption of the Netherlands. capacity (Table 3), and much more is being planned
At the close of 2006, 83% of the more than for 2007 and beyond (Table 4 and Table 5). Thirteen
74 GW (Table 2) of worldwide wind generating member countries added more than 100 MW of new
capacity was operating in the IEA Wind member capacity, and three countries again added more than
countries. Located in Europe, North America, Asia, a gigawatt each of new capacity: the United States
and the Pacific Region (1), the member countries are (2,454), Germany (2,207), and Spain (1,587).
sharing information and research efforts to increase Canada, Portugal, the United Kingdom, and
the contribution of wind energy to their electrical Japan added 490 MW or more. Total generating ca-
generation mix. They are also reaching out to other pacities of each country varied greatly, from Germa-
countries to join in this co-operation. ny with 20,622 MW to Switzerland with about 12
This Executive Summary of the 2006 IEA MW. The United States wind energy capacity grew
Wind Annual Report synthesizes the information 27% in 2006 and was the second largest source of
presented for 2006 by the IEA Wind member coun- new power capacity in the country behind natural
tries, the European Commission, and the European gas plants, contributing 19% of the total new capac-
Wind Energy Association (Chapters 10 through 29) ity built. The United Kingdom had its most produc-
and in the reports of the Research Tasks (Chapters tive year, adding more than 630 MW and generating
2 through 8). As background for 2006, data from nearly 4.6 TWh of electricity. Mexico experienced

Table 1 Key statistics of IEA Wind Member Countries 2006*


2005 2006
Total installed capacity 51,364 MW 61,855 MW
Total offshore wind generation 686 MW 927 MW
Total new wind generation installed 8,927 MW 10,461 MW
Total annual output from wind 99 TWh 118 TWh
Wind generation as % of 1.2% 1.42%
national electric demand
* includes estimates ; see Table 3 for country specifics.

IEA Wind Energy 9


Executive Summary

Table 2 Worldwide installed wind Table 2 Continued


capacity at the close of 2006 Rest of World**
IEA Wind Members* Country MW
Country MW India 6,270
Germany 20,622 China 2,594
Spain 11,615 France 1,469
United States 11,575 Brazil 256
Denmark 3,137 Egypt 230
Italy 2,123 Poland 204
United Kingdom 1,963 Belgium 188
Portugal 1,698 Taiwan 188
Japan 1,574 New Zealand 171
Netherlands 1,559 Morocco 124
Canada 1,460 Ukraine 86
Austria 965 Turkey 84
Australia 817 Costa Rica 74
Greece 749 Caribbean 57
Ireland 744 Czech Republic 56
Sweden 571 Lithuania 56
Norway 325 Iran 48
Korea 175 Hungary 37
Finland 86 Estonia 35
Mexico 86 Luxembourg 35
Switzerland 12 Bulgaria 30
Total IEA Wind 61,855 Argentina 27
Latvia 27
astounding growth in capacity with its new wind Philippines 25
farm La Venta II that added 83 MW to the existing
Pacific Islands 24
3 MW of generation.
Growth in some other countries was also well Tunisia 20
above the 20% average for the IEA Wind group: Colombia 20
Canada 114%, Republic of Korea 79%, Portugal
Croatia 17
60%, Ireland 50%, Japan 46%, and the United King-
dom 47%. Greece, Italy, the Netherlands, Norway, Reunion (France) 10
and the United States also exceeded 20% growth Others (<10 MW) 43
(Table 4). Many countries report significant amounts
Total rest of world 12,505
of capacity in the “planning stages,” including plan-
ning applications submitted, successful acquisition of World Total 74,360
land leases, projects under construction, and projects * Data provided by IEA Wind member countries.
waiting for final connection to the grid (Table 5). ** Data from Windpower Monthly,
Offshore generating capacity increased 30% April 2007 (2).
in the seven countries reporting such installations.
And much more offshore capacity is in the planning
stages. In the United Kingdom, for example, Lon-
don Array Limited received consent in December

10 2006 Annual Report


Table 3 National statistics of the IEA Wind member countries for 2006
Country Total installed Offshore installed Annual net Total Number of Average new Wind-generated National electricity % of national
wind capacity wind capacity increase in Turbines turbine capacity electricity demand electricity demand
capacity from wind*

IEA Wind Energy


(MW) (MW) (MW) (kW) (GWh/yr) (TWh/yr)
Australia 817 0 109 544 1,750 2,504 208.0 1.20%
Austria** 965 146
Canada 1,460 0 776 1,186 1,230 3,800 550.0 0.69%
Denmark 3,137 423 8 5,274 1,287 6,108 36.4 16.78%
Finland 86 0 4 96 2,000 154 90.0 0.17%
Germany 20,622 7 2,207 18,685 1,848 30,500 540.0 5.65%
Greece 749 0 142 1,051 1,146 1,580 51.0 3.10%
Ireland 744 25 251 1,617 28.9 5.59%
Italy 2,123 0 405 2,575 1,148 3,215 338.0 0.95%
Japan 1,574 1 494 1,358 1,159 1,910 882.6 0.22%
Korea 175 0 77 118 247 381.2 0.06%
Mexico 86 0 83 105
Netherlands 1,559 108 335 1,792 2,248 2,747 116.0 2.37%
Norway 325 0 57 163 2,280 671 122.0 0.55%
Portugal 1,698 0 634 964 2,400 2,926 49.0 5.97%
Spain 11,615 0 1,587 13,842 1,375 23,372 268.0 8.72%
Sweden 571 23 62 812 1,879 986 150.0 0.66%
Switzerland 12 0 0 34 0 15 58.0 0.03%
United Kingdom 1,963 340 631 2,103 4,591 408.8 1.12%
United States 11,575 0 2,454 1,600 31,000 4,027.0 0.77%
Totals 61,855 927 10,461 48,599 1,697 117,886 8,280.2 1.42%
*% of national electricity demand from wind= (wind-generated electricity/national electricity demand)*100 ** Numbers from Wind Power Monthly
Bold italic= estimated value Bold underlined = value from 2005/2004

11
Executive Summary
Executive Summary

Table 4 Increase in wind energy capacity from end of


2005 to end of 2006
Country Capacity added in 2006 % Wind capacity increase
United States 2,454 27%
Germany 2,207 12%
Spain 1,587 16%
Canada 776 114%
Portugal 634 60%
United Kingdom 631 47%
Japan 494 46%
Italy 405 24%
Netherlands 335 27%
Ireland 251 50%
Austria 146 18%
Greece 142 24%
Australia 109 15%
Mexico* 83 *
Republic of Korea 77 79%
Sweden 62 12%
Norway 57 21%
Denmark 8 <1%
Finland 4 5%
Switzerland 0 0%
* Mexico added 83 MW in 2006 to its existing 3 MW for a greater than 1,000
percentage increase.

2006 for the world’s largest offshore wind farm to Twenty-one of these with total capacity of 4.3 MW
be built in the London Estuary. At 1,000 MW of were replaced with 13 turbines with a capacity of
capacity, it will be capable of powering one-quarter 26.5 MW, for a net “repowering effect” of 22 MW.
of the homes in London.
Another trend that affects electricity produc- 2.2 Contribution to Electrical Demand
tion is repowering—the replacement of older, smaller Total electrical generation from wind in the
turbines with fewer, larger turbines representing the IEA Wind member countries has increased from
state of the art in power production. Repowering is less than 10 TWh in 1995 to nearly 118 TWh in
expected to increase in years ahead. In 2006, Den- 2006 (Figure 1). The contribution from wind energy
mark reduced the total number of turbines, but ca- to the combined electricity demand of the member
pacity was increased by 8 MW. Germany removed countries has increased from under 0.2% overall in
79 turbines and added 135 MW of new machines in 1995 to 1.42% in 2006. Within the member coun-
these areas. In Italy, 46 turbines ranging from 200 tries, contribution to national electrical demand var-
kW to 450 kW were replaced by 15 larger machines ied from under 1% to 16.8% in Denmark. In five
in the range of 800 kW to 1,500 kW. This increased countries wind energy exceeded 5% contribution
total in-field capacity by 4 MW but had a larger to national electrical demand, and ten countries ex-
benefit reported in terms of energy production. The ceeded the 1% mark (Table 3).
Netherlands decommissioned 40 turbines in 2006.

12 2006 Annual Report


Executive Summary

Wind energy can be a significant source of season in 2006 (Finland, Denmark, Germany, Italy,
electrical generation. For example, Spain supplies a and Spain).
full 9% of its electricity demand with wind, which
is the fifth largest generation technology after coal, 2.3 National Targets
nuclear energy, natural gas, and hydropower. In All countries recognize the need to reduce
Spain, the maximum hourly production by wind en- carbon emissions. They maintain that renewable
ergy of 8,140 MW took place on 8 December 2006, energy in general and wind and solar energy in par-
and 31% of total electricity production at that mo- ticular offer great potential to reduce overall carbon
ment was supplied by wind energy. The maximum emission of the power industry. In addition, reduc-
peak demand during the year in Spain took place ing the cost of electricity and the reliance on im-
on 30 January 2006, when the total power produced ported fuels is an element of several national targets.
was 42,100 MW. At this time, wind energy supplied Establishing various types of national objectives or
about 8% of the total. In Denmark, the highest aver- targets is used to define goals, develop policies, mea-
age coverage of wind power yearly was nearly 17%; sure progress, and revise policies and goals as needed
between 27% and 29% of the total electricity con- along the way.
sumption was covered by wind power in November An important contributor to the growth of
and December alone. the European market for wind energy technology
Some countries are tracking production has been EU framework legislation combined with
in relation to the wind index, a local indicator of legislation at the national level, aimed at reducing
the energy in the wind for a year compared to the barriers to the development of wind energy and oth-
average year. Several countries linked lower than er renewables. The EU target is to have renewable
expected wind energy production to a poor wind sources provide 21% of EU electricity consumption
by 2010. This target was established by the Renew-

Table 5 Estimates of potential increases to wind energy capacity in 2007 and


beyond*
Country Planning application Planning approval Under construction Estimated total
planned and/or
under construction
(MW) (MW) (MW) (MW)
Australia 1,500
Canada 2,533 1,888 854 5,275
Denmark Offshore 200 Offshore 200 750
Repowering 350
Finland 100 35 135
Ireland 3,314 449 3,763
Italy Offshore 300 700 2,000
Onshore 1,000
Republic of Korea Offshore 4
demonstration 4
Mexico 300 300
Norway 4,400 1,200 120 5,720
Switzerland 70 6 76
United Kingdom 1,265 Offshore 1,300 Offshore 180 2,745
* Includes onshore, repowering, and offshore

IEA Wind Energy 13


Executive Summary

Figure 1 Annual installed capacity, cumulative installed capacity, and annual generation as
reported by the IEA Wind member countries, 1995–2006.

able Electricity Directive (77/2001/EC), which sets in Global Markets used the GlobalTimes model to
out differentiated national indicative targets for each analyze cost-optimal scenarios for future energy
member state. The Renewable Electricity Directive systems that are trying to achieve the CO 2 reduc-
constitutes the main driving force behind new poli- tions needed to limit global temperature increase
cies being implemented. to 2°C. In these scenarios, the role of wind power
Whether a country is seeking to reduce emis- in electricity generation grows rapidly, and produc-
sions by displacing demand or by meeting rising tion could reach an annual rate of 3,000 TWh/yr
demand, wind energy was figured into national by 2030.
planning. For example, Mexico expects electrical In Spain, wind power helped decrease fossil
demand to grow at 5.2% per year through 2014. Its fuel imports, achieving a reported savings of more
targets are designed to meet a significant amount of than 730 million € in 2006, mainly due to the re-
that growth with wind energy. On the other hand, duction in purchases of natural gas and coal. In ad-
the Kyoto Protocol seeks to roll back CO 2 emissions dition, the Spanish economy saved around 18 mil-
by combinations of reducing demand and displac- lion tonnes of CO 2 and did not have to purchase
ing conventional generation with renewables. Many emission permits that would otherwise have been
IEA Wind member countries have targets for car- required in 2006. This represents nearly 360 mil-
bon emissions that serve as the motivation for policy lion € of savings, assuming a price of 20 € /tonne of
initiatives regarding wind energy. CO 2 emissions.
Wind energy is making a significant contri- In the United States, the current wind capac-
bution to reaching national goals. In Australia, prog- ity will generate 31 TWh/yr—enough to provide
ress is measured toward the Kyoto target of 108% of power for 2.9 million U.S. homes and displace ap-
1990 emissions over the period 2008–2012. Figures proximately 23 million tons of CO 2 that would have
in January 2007 show that the Australian wind en- been emitted by traditional resources.
ergy industry offset 3.26 million tonnes of CO 2 per Several types of targets are set in the IEA
year, the equivalent of taking 752,000 cars off the Wind member countries. Renewable energy tar-
road or planting 4.86 million trees. gets have been set by Australia, Finland, Germany,
In Finland, a project titled Demand for Finn- Ireland, Italy, the Netherlands, and the United
ish Energy Technology and Business Opportunities Kingdom. Wind generating capacity (MW) or
production (MWh) targets for a certain year have

14 2006 Annual Report


Executive Summary

been established by Greece, Japan, Republic of in the IEA Wind Task 21—Dynamic Models of
Korea, Norway, Portugal, Spain, Sweden, and Swit- Wind Farms for Power Systems Studies. Denmark,
zerland. Although targets are popular, Canada, Finland, Ireland, Netherlands, Norway (operating
Denmark, and the United States have rapidly grow- agent), Portugal, Sweden, the United Kingdom, and
ing wind capacity without the benefit of official the United States have worked to develop and vali-
targets. (See Table 1 of Chapters 10–29 for specific date wind farm models that are suitable for evaluat-
national targets.) ing power system dynamics and transient stability.
The final report, to be released in 2007, will pro-
2.4 Issues Affecting Growth vide an overview of the available wind farm models
IEA Wind member countries report several and present a systematic approach for model bench-
key issues affecting increased deployment of wind mark testing.
energy. Work within the countries and coopera- Integrating wind energy into weak grids is a
tive research tasks (Annexes) within the IEA Wind concern for transmission system operators (TSOs)
Implementing Agreement are under way to address in many countries. For example, compared with
some of these issues. (See also Section 5.0 R, D&D EU countries, Japan’s electric system is isolated and
Activities.) the influence of wind generation on grid stability is
considered very large, regardless of how small the
2.4.1 Grid capacity, integration, and transmission penetration level. Therefore, some electric power
Access to the grid is essential for wind farm companies limit new wind farm projects and choose
development, the main vehicle for increasing wind them by drawing lots.
energy capacity. The grids that we have today are the System operation impacts from wind power
result of previous planning, adapted to the needs of are a concern of TSOs. Responding to the need to
an electricity system made up of centralized, large- explore this issue, IEA Wind Task 25—Design and
scale power plants. The move toward smaller and Operation of Power Systems with Large Amounts
more decentralized generation units thus requires of Wind Power began work in 2005 with Finland
the adaptation of the grid; high growth rates of elec- (operating agent), Denmark, Germany, the Nether-
tricity demand in several IEA Wind member coun- lands, Norway, Portugal, Spain, Sweden, the United
tries are challenging grid capacity. Kingdom, and the United States participating. In
Several countries mentioned grid capacity as a 2006, Task 25 established an international forum to
limiting factor being addressed in 2006. In Mexico, exchange knowledge and experiences on integration
an agreement was reached between the Federal Elec- issues and produced a draft report on the state of the
tricity Commission and several private wind project art of wind integration issues. Three Task 25 meet-
developers for construction of a transmission line to ings included system operators from Denmark, Ger-
several wind power plants planned for the Isthmus many, Ireland, and Portugal, and TSO organisations
of Tehuantepec. These will remove the main tech- CIGRE and ETSO received information about the
nical barrier for the expected installation of around work of the task. Trans-national grid issues to be ad-
2,000 MW of wind power in that region. dressed in order to efficiently integrate wind energy
The rate of wind energy installation report- in Europe (for example the need for improved inter-
edly will be limited in Ireland by the rate at which connection) are addressed in two European studies
offers for grid connection are issued and the lead also included in the reporting of Task 25 (EWIS,
times for the associated grid infrastructure. A slight- TradeWind). Presentations of Task 25 work and
ly slower than predicted growth in capacity in Spain case studies from Denmark, Finland, Norway, Por-
was attributed to problems with the connection of tugal, Sweden, and the United States were presented
wind farms to the electrical grid due to delays in in special sessions of international conferences in
the construction of electrical infrastructures such as North America, Europe, and Australia.
transport lines and high-voltage substations. Finland Transmitting electricity from offshore wind
mentioned distribution network charges as an ob- farms has a special set of issues that are being ex-
stacle to development, and Canada cited a surplus plored in Task 23—Offshore Wind Technology De-
of generation capacity in many areas as a slowing velopment. Offshore cable connections, financing,
influence. and technical challenges of high seas and deep water
Uncertainty about the impact of wind energy conditions are being addressed (as well as other is-
on the power system is being addressed by work to sues with offshore deployment of wind turbines).
raise the level of wind farm modeling under way Denmark (operating agent), Germany, Korea, the

IEA Wind Energy 15


Executive Summary

Netherlands, Norway, Sweden, the United King- public resistance and mountainous terrain and so
dom, and the United States (operating agent) par- is supporting R&D into offshore installations. (See
ticipate in this task. Section 3.2.3.)
Integrating wind energy and hydropower re- Yet another response to public resistance is
newable resources for the benefit of consumers and to expand engagement of all interested stakeholders
the electrical generation system is appealing, and its in the planning and approval process so as to influ-
technical and economic issues are being explored in ence public opinion. Public information efforts and
the IEA Wind Task 24—Integration of Wind and legislation to streamline the planning and approval
Hydropower Systems. Australia, Canada, Finland, process have been reported in several countries.
Norway, Sweden, Switzerland, and the United States For example, opinion polling carried out in Octo-
(operating agent) participate in this task. Expected ber 2006 on behalf of AusWind by A. C. Nielsen
outcomes of this work include the identification of showed overwhelming acceptance of wind energy
practical wind/hydro system configurations and an by the broader Australian community. The three-
understanding of the costs, benefits, barriers, and stage Wind Farms and Landscape Values project
opportunities when integrating wind and hydro- addressed the complexities associated with wind
power systems. farm siting issues by giving all stakeholders the op-
portunity to assist in formulating an agreed-upon
2.4.2 Limited available land and public resistance set of national landscape issues for the Australian
Several surveys have shown that wind power wind energy industry. More than fifty organiza-
is extremely popular across Europe and beyond, tions and many more individuals were consulted in
typically hitting positive scores of 60–80% (5). In the first stage of the project. In Switzerland, where
addition, those polls have shown that the strongest public acceptance is an issue, researchers will host
support for wind energy technology comes from an IEA Wind Task 11 experts meeting on the topic
people living near a wind park. in 2007.
In terms of land availability, excellent sites The planning and approval process is lengthy
remain unexploited in many IEA Wind member in most countries and is one barrier to the full ex-
countries, although the situation is changing due ploitation of wind power. In the UK, a recent re-
to rapid installation rates as explained in Section 1. search study commissioned by the British Wind
Yet, countries where wind energy has already been Energy Association (6) reports that the length of
actively exploited and with ambitious wind devel- time taken through planning for onshore wind farm
opment plans report finding two situations: 1) good applications is three times greater than the recom-
sites are already taken by older, smaller turbines mended time for all developments, with decisions
and/or 2) the public is becoming resistant to the ad- taking nearly one year and longer from submis-
dition of more turbines to the landscape. sion. The study states that the provision of robust
One approach to these situations is repower- and objective planning policies in local development
ing–removing smaller turbines and replacing them documents should ensure that there is an effective
with fewer larger machines on taller towers. This framework in place, from which well-informed
has the effect of increasing production on land with- and consistent decisions can be made. Efforts in
out developing new projects. Denmark, Germany, several countries are reported to ease this burden
Italy, the Netherlands, and the United States have on developers.
formal or informal activities or incentives that re-
sult in repowering. The decommissioned machines 2.4.3 Complex terrain and local environment
are providing a market in used machines in other Complex terrain and special local conditions
countries for smaller projects. For example, Finland such as icing or severe lightning pose challenges for
reports that used turbines from the first demonstra- wind turbine design and installation of wind projects
tion projects in Finland and from the Netherlands in some countries. For example, participants in Task
have encouraged some farmers to acquire a second- 19—Wind Energy in Cold Climates work to advance
hand turbine. turbine designs that can withstand icing and loading
A second response to limited land availability due to increased air density. In Japan, standards are
and public opposition for countries with a shoreline being developed for a J-class turbine that can with-
is to move to offshore. For example, Korea faces stand typhoon force winds and high-energy light-
ning strikes that have damaged turbines there.

16 2006 Annual Report


Executive Summary

2.4.4 Other issues 3.1 Market Characteristics


The low cost of competing conventional en-
ergy, the lapsing of incentive schemes, and the short- 3.1.1 Economic contribution of the wind sector
age of wind turbine supply have been cited as ob- The economic impact of wind energy de-
stacles to more rapid wind development. velopment is reported in various ways by the IEA
Wind member countries (Table 6). One measure,
3.0 Benefits to National Economy sometimes referred to as economic turnover or
contribution to gross domestic product, is the value
In addition to reducing CO 2 emissions and of all economic activity related to such develop-
saving costs of imported fuel, IEA Wind member ment. It includes payments to labor, cost of materials
countries recognize the benefits to their national for manufacture and installation, transportation,
economies from wind energy such as regional devel- sales for export, and value of electricity generated.
opment activities, employment, exports, etc. Other values reported include industrial activity,

Table 6 Capacity in relation to estimated jobs and


economic impact in 2006
Country Capacity Estimated Economic impact
(MW) number of jobs (Million EURO)
Germany 20,622 70,000 turnover 5,650
Spain 11,615 35,000 nda
United States 11,575 10,000+ new capacity 3,030
investment
Denmark 3,137 26,000* turnover** 5,100
Italy 2,123 4,500 turnover 500
United Kingdom 1,963 4,000+ turnover 965
Portugal 1,698 nda nda
Japan 1,574 nda nda
Netherlands 1,559 nda investment 480
Canada 1,460 1,200 turnover 479
Austria 965 nda nda
Australia 817 794 nda
Greece 749 nda nda
Ireland 746 nda construction 374
Sweden 571 nda nda
Norway 325 200+ turnover 50+
Korea 175 nda nda
Finland 86 3,000*** turnover*** 320
Mexico 86 nda turnover 1
Switzerland 12 350 turnover 100
*Wind turbine manufacturing industry, electricity production industries, institutes, and
consultants.
**Turnover in the wind turbine manufacturing industry including exports (4,402 million €) and
turnover in the rest of the wind turbine sector.
*** Jobs and turnover in the supply chain.

IEA Wind Energy 17


Executive Summary

construction, and value of exports. More countries level, the Global Wind Energy Council (GWEC),
than ever are estimating the number of jobs created established in 2005, is providing a platform for pro-
by wind energy manufacturing, development, and moting the interests of the wind sector in the inter-
operation. national policy arena and intergovernmental forums.
In the EU, the European Wind Energy Association
3.2 Industrial Development and (EWEA) played a key role in the debate that took
Operational Experience place in Europe regarding its future energy mix in
the medium to long term with an agreed binding
3.2.1 Turbines target of 20% by 2020 of renewable energy sources.
The average rated capacity of new turbines
installed in 2006 continued the trend toward larger 3.2.2 Ownership patterns
machines. The average rating in 2006 rose to nearly Wind farms are usually owned by private
1.7 MW (Figure 2). The IEA Wind member coun- corporations, independent power producers (IPPs),
tries contain turbine manufacturers that serve global utilities, or income funds. In 2006, the consolidation
as well as national markets. Countries reporting a and acquisition of large development companies and
national manufacturer of 1-MW or larger turbines wind farm operators was reported (Canada, Finland,
include Denmark, Finland, Germany, the Nether- Italy, Netherlands, Spain, and the United States). In
lands, Norway, Spain, and the United States. the United States, although private IPPs continued to
Several countries that do not have local tur- dominate the industry, electrical utilities expressed
bine manufacturing capabilities report the manu- a greater interest in wind asset ownership. Of the
facture of supporting components (Australia, Can- total 2006 wind additions, approximately 25% (615
ada, Greece, Ireland, Portugal, Switzerland, and the MW) was owned by local electrical utilities, the vast
United Kingdom). These include blades, control sys- majority of which are investor-owned utilities.
tems, power inverters, generators, nacelle assembly, A different pattern of deployment is reported
or towers. in some countries. In Finland, some farmers have ac-
In addition to MW-scale wind turbines, in- quired smaller second-hand turbines. In the UK and
termediate-sized turbines, 660 to 850 kW, are being the United States, patterns are changing to include
manufactured in several countries for single-turbine community ownership. Another trend observed in
installations or small wind power plants (Germany, the U.S. market in 2006 is the acquisition of Ameri-
Italy, Korea, and the Netherlands). can wind assets by European-based companies.
Small wind turbine domestic manufacturing
and encouragement of micro-generation is expand- 3.2.3 Offshore installations
ing the market for small wind turbines (Canada, By the close of 2006, more than 925 MW of
Denmark, Italy, Japan, Portugal, Spain, and the capacity was located offshore in seven IEA Wind
United States). Italy established net metering and member countries (up from five countries in 2005):
reduced the minimum amount of energy required Denmark, Germany, Ireland, Japan, Netherlands,
for green certificates. In Japan, Zephyr Corporation Sweden, and the United Kingdom.
has developed the Z-1000 Airdolphin, a small 1- Countries that report either planning their
kW wind turbine. The prototype machine is being first offshore installations or having them under
demonstrated at many sites around the world. In the construction include Finland, Korea, Spain, and the
UK and in Portugal a micro-generation strategy is United States. In Korea, recent government research
being implemented. has focused on developing 2-MW onshore and 3-
Trade associations and organizations pro- MW offshore turbine models, as well as running
moting wind energy are having important effects on a 4-MW offshore demonstration project that will
development of wind energy. For example, the Mex- be realized in 2009. In Spain, new draft incentive
ican Association of Wind Power (Amdee), founded rules in 2006 mentioned offshore wind farms for the
in 2005, became an important stakeholder in the first time. They defined a bonus of 84.7 € /MWh
negotiation and lobbying of legislative and regula- over the market price for electricity and specified
tory bodies. All the members of this association are a maximum price of 164 € /MWh. No minimum
promoting their own wind power projects. In addi- level was defined. Although the wind energy sector
tion, the National Solar Energy Association (ANES) had a positive reaction to this regulation, it said that
continued more than 15 years of work promoting the payments are not enough to start the offshore
renewable energy in Mexico. At the international market in Spain.

18 2006 Annual Report


Executive Summary

Figure 2 Average size of new turbines installed in the IEA Wind member countries for
1995–2006

3.2.4 Operational experience higher costs were attributed to shortage of materi-


Wind farm operation is well established in als, insufficient production of turbines, rising cost of
many of the IEA Wind member countries, drawing raw materials, costly technology innovations such
on decades of experience in turbine manufacture, as LVRTF (low-voltage ride-through fault) technol-
project development, and generation operations. ogy, and use of larger (more expensive) blades at less
Turbine availability is high in all countries, ranging windy sites. Spain reports increased turbine size and
between 95 and 99% with most reporting 98% or cost. However, it reports that it has not experienced
higher. Productivity is also relatively high—the re- the lack of major components (gearboxes, electric
sult of good siting of farms based on national wind generators, blades, and so on) that other countries
resource assessment or atlas data. Large onshore experience because many companies in Spain are
farms have higher availability than offshore farms. both wind turbine manufacturers and wind farm
For example, the UK reports offshore availability developers.
between 81 and 91.2%. Capacity factor estimates Total installed costs for 2006 in the reporting
were reported by the following countries: Austra- countries ranged from a low of 980 € /kW (Den-
lia 35–50%; Mexico 30–40%; Switzerland 15–25%; mark) to a high of 1,366 € /kW onshore (Canada) or
and UK onshore: average 26.6%, offshore 24–36%. 2,375 € /kW offshore (UK). Most countries report
The causes of nearly 350 turbine fail- the installed cost of wind projects rising in 2006
ures from 2004 to 2006 have been analyzed (Figure 3 and Table 7). In 2005, the range was 970
by Japan and are being used as input to design efforts € /kW onshore to 2,075 € /kW offshore. Some mem-
for a new J-class turbine. Lightning strikes were ber countries have reported how costs of wind proj-
the biggest known cause of wind turbine failure ects are distributed. For example, Canada estimates
in Japan. breakdown of costs for a typical 30-MW onshore
wind farm to be 68% wind turbine, 11% foundation
3.3 Economic Details and civil works, 8% electrical connection, and less
than 5% for each of transportation, legal, installa-
3.3.1 Turbine and total installed project costs tion, project preparation, and contingency.
Turbine costs reported by the IEA Wind Italy estimates that project costs have in-
member countries averaged from a low of 637 € /kW creased 20–30% in 2006 over 2004 and 2005. The
( Japan) to a high of 982 € /kW (Germany) for 2006 cost increase is attributed to insufficient wind tur-
(Figure 3 and Table 7). Higher turbine costs over bine production. In addition to turbine cost, the cost
2005 are reported by several countries in 2006. The of electrical and civil works is estimated to be around

IEA Wind Energy 19


Executive Summary

30% of total investment cost for plants with smaller example, typically, offshore turbines are 20% more
turbines (capacity <1 MW) and 20% of total invest- expensive, and towers and foundations cost more
ment cost for plants with larger turbines (capacity >1 than 2.5 times the price for a project of similar size
MW). The United States reports project costs have onshore.
risen to about 1,480 USD/kW (1,121 €), up from A study in the UK by ODE Ltd commissioned
1,260 USD/kW (954 €) in 2005. Although project by DTI estimated the future costs of offshore wind
costs are influenced by numerous factors, increasing generation and the potential for cost reductions. It
turbine costs are the largest contributor to the cost of identified raw materials—especially steel, which ac-
onshore projects. Turbine prices have increased, on counts for about 90% of the turbine—as a primary
average, by over 400 USD/kW (303 €) since 2001. cost driver. The report emphasized that major sav-
The Netherlands, where 108 MW of offshore ings can be realized if turbines are made of lighter,
wind was installed in 2006, reports an international more reliable materials and if major components
spread for offshore project costs of 1,650–2,250 € / are developed to be more fatigue resistant. A cost
kW. Offshore costs are largely dependent on weath- model based on 2006 costs predicted that costs will
er and wave conditions, water depth, and distance rise from approximately 1.6 million £/MW to ap-
to the coast. proximately 1.75 million £/MW (2.37 to 2.6 mil-
The most detailed cost information on recent lion € /MW) in 2011 before falling by around 20%
offshore installations comes from the UK, where 90 of the cost by 2020.
MW were added in 2006. The present-day costs of
installing wind energy in the UK are between 585 3.3.3 Operations & Maintenance Costs
and 800 £/kW (868 and 1,187 € /kW) onshore, ris- Costs for service, consumables, repair, insur-
ing to 1,200 to 1,600 £/kW (1,781 to 2,375 € /kW) ance, administration, lease of site, etc. for new large
offshore. The higher capital costs of offshore projects turbines ranged from 2–3.5% of capital cost per year
are due to the larger structures and complex logistics or from 10 € /MWh to about 19 € /MWh. When
of installing the towers. The costs of offshore foun- O&M costs are mentioned by the member coun-
dations, construction, installations, and grid connec- tries, they are reported as fairly constant over the
tion are significantly higher than for onshore. For years. O&M costs are higher for offshore turbines.

Figure 3 Average total installed costs of wind turbine projects 2003–2006 as reported by
IEA Wind member countries. These include costs for turbine, roads, electrical, installation, de-
velopment, and grid connection.

20 2006 Annual Report


Executive Summary

Table 7 Estimated average turbine cost and total project


cost 2006 where data is available
Country Turbine cost Total installed cost
(€/kW)
Canada 1,366
Denmark 845 980
Germany 982 1,289
Greece 1,050
Italy 950 1,200
Japan 637 1,210
Mexico 1,088
Netherlands 1,100
Norway 912 1,217
Portugal 800 1,170
Spain 1,220
Switzerland 1,243
United Kingdom 1,262
United States 871 1,121

3.3.4 Cost of energy 4.0 National Incentive Programs


Using various analysis methods, several IEA
Wind members report the cost of energy from wind As can be seen in Table 8, the four most often
in their countries. Canada: 75–120 CAD/MWh used incentives are: offering direct capital invest-
(49–78 € /MWh); Finland: 45–65 € /MWh without ment as subsidies or grants for projects; providing
investment subsidy; Greece: 26–47 € /MWh; Japan: a premium price for electricity generated by wind
9.00–11.00 JPY/kWh (57–70 € /MWh) for 500-kw (tariffs or production subsidies); obliging utilities
to 1,000-kW machines) and 7.00–9.00 JPY/kWh to purchase renewable energy; and providing a free
(40–57 € /MWh) for 1,000-kW and larger machines; market for green electricity.
Norway: 46 € /MWh; Switzerland: 135 € /MWh. In each country, the mix of incentive types
and the level of government where they are applied
3.3.5 Tariffs and buyback rates is unique and changing. For example, in Australia,
Key to the economic viability of a wind proj- the major incentive scheme was the federal govern-
ect is the balance of costs and revenue. Wind en- ment’s MRET scheme, which required large energy
ergy tariffs, feed-in tariffs, or buy-back rates are users and energy wholesalers to purchase 2% of their
the payments to the wind farm owner for electric- energy from renewable sources by 2010. MRET
ity generated. In some countries, this is the market reached its effective conclusion in 2006 when the
price of electricity. In others, the wind energy tar- target of 9,500 GWh of new renewable generation
iff includes environmental bonuses or other added (much of it from wind energy) was achieved four
incentives to encourage wind energy development. years ahead of schedule. This left developers with
In many countries, the revenue of each wind farm no active incentive scheme until six states came to
is governed by the contract (power purchase agree- the rescue in the second half of 2006 with various
ment) negotiated with the power purchaser, so these incentive programs.
numbers reported are estimated averages or ranges.
For the reporting countries, the price paid to wind 4.1 Capital Investment
project operators in 2006 ranged from 49–183 € / Incentive programs that help offset the capital
MWh (Figure 4). cost of wind farm development to varying degrees

IEA Wind Energy 21


Executive Summary

Figure 4 Price paid to wind farm project owner for reporting countries in 2003–2006. Some
of these prices include incentives such as green certificates.

have been successful in several countries. In Finland, In the UK, the Offshore Wind Capital Grant
projects that applied for a subsidy between 2001 and Programme launched by DTI and the Big Lottery
2006 received an investment subsidy of 35% on av- Fund in early 2002 has stimulated the early devel-
erage. In Greece, public aid accounts for 30% of the opment of offshore wind projects. The result has
eligible cost of the projects; it goes up to 50% in the been more than 1,666 MW of offshore development
case of transmission lines that will be constructed to completed or under way.
connect renewable energy plants to the grids. Dur-
ing 2006, 38 projects were approved, of these, 36 4.2 Price Incentives
were financed with 50% and 2 were financed with Price incentives (feed-in tariffs) are paid to
45% due to their location. In Japan, initial cost for operators according to the amount of electrical gen-
business development of generation plant and local eration of the wind project, thus rewarding produc-
new energy development plant can be subsidized by tivity. Tariffs can also be used to promote specific
government programs up to 30%. Non-profit orga- national goals and have stimulated wind farm devel-
nizations can receive subsidies up to 50%. In the Re- opment in several countries.
public of Korea, government subsidies to developers In Canada, the most influential market
covered up to 70% of installation costs for demon- stimulation instrument so far has been the federal
stration projects between 2000 and 2005. However, government’s Wind Power Production Incentive
beginning in 2006, these subsidies were only avail- (WPPI) program, which provides qualifying facili-
able to small wind projects (<10 kW). The Korean ties an incentive payment of 10 CAD/MWh (6.5 € /
government also compensates commercial banks MWh) of production for the first ten years of opera-
for the difference between commercial rates and tion. This has helped provide a stable, long-term rev-
lower-than-commercial rates up to a certain portion enue source. The program had funded a total of 924
as long-term project financing to renewable energy MW by the end of 2006. The recently announced
construction projects. ecoENERGY for Renewable Power program will
In Mexico, the federal income tax law allows provide the same incentive under similar terms and
accelerated depreciation of investments in renew- conditions for an additional 3,000 MW to be built
able technologies (wind energy is specifically includ- by 2011.
ed). Investors may deduct 100% of the investment in In Norway, to increase the production and
a year (one year of depreciation). The equipment use of renewable energy and to improve energy ef-
must operate for at least five years following the tax ficiency, the government proposed in October 2006
deduction declaration. allocating 20 billion NOK (about 2.3 billion €) to

22 2006 Annual Report


Table 8 Incentive programs offered in IEA Wind Member countries for 2005.

IEA Wind Energy


Australia
Canada
Denmark
Finland
Germany
Greece
Ireland
Italy
Japan
Korea
Mexico
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United
Kingdom
United States
TOTALS 2005
TOTALS 2006

Investment Direct capital


support investment
subsides/ grants X X X NDA X X X X X X X X 10 11
Capital
investment
write-offs X NDA X X 3 3
Soft loans NDA X X X 3 3
Others NDA X 1 1
Production Premium price
support for generation X X X X NDA X X X X X X X 9 11
Exemption from
energy taxes X NDA X X 3 3
Production tax
credits NDA X 2 1
Others X NDA X X X X 3 5
Demand Obligation for
creation production from
renewables on
suppliers X X NDA X X X X X X 7 8
Free market for
green electricity X NDA X X X X X X 8 7
Others X X NDA X 2 3
Note: see country chapters for more detail TOTAL 51 56
NDA indicates no data available

23
Executive Summary
Executive Summary

a new fund. For renewable power production, the hold. This stop-and-go effect has been observed pre-
government plans to establish a feed-in system in viously in several other countries such as the United
which accepted projects will receive a fixed support States and Sweden.
per kilowatt-hour for 15 years. In Portugal, feed-in tariffs have been the main
In some countries, tariffs pegged to retail elec- incentive, however, because the tariffs are currently
tricity rates or to inflation reached very high levels not adjusted for inflation, they were effectively re-
in 2006, and policies were changed to limit the cost duced in 2006.
of incentive programs. For example in Spain, the Several countries are moving toward feed-in
law allows remuneration to wind farms based on the tariffs as a means of supporting renewable energy
market price plus a bonus established as a percentage development. In Ireland, a change of the price sup-
of the named “average reference tariff” (an indica- port mechanism for renewable electricity was an-
tor related to the total cost of the overall electrical nounced in April 2006. The previous competitive
system). In 2005 and 2006, the increasing price of tendering system is to be replaced with a feed-in
electricity in Spain caused the payments determined tariff providing prices of 54 € /MWh for wind proj-
by this procedure to reach values up to 91 € /MWh. ects greater than 5 MW and 57 € /MWh for projects
The benefits to investors in wind energy have been less than 5 MW capacity. Draft details of the scheme
remarkably high. In mid-2006, Spanish authorities have been published, but it had not been launched by
wrote new draft rules concerning renewable energy the close of 2006.
sources (wind energy in particular) to limit the price Denmark’s interim policy provides a premium
received by wind farm operators. The new law’s in- of 100 DKK/MWh (13.42 € /MWh). During 2006,
tent is to guarantee sufficient profit for wind energy the market price plus premium varied between 330
investment without a significant increase in the total DKK/MWh and 430 DKK/MWh (44.27–57.69
cost of the electrical system. € /MWh) (except during January, when adjustments
In other countries, the premium price for re- were included). The premium becomes zero when
newable electricity is reduced in future years, and the market price exceeds 360 DKK/MWh (48.30
policy audits are included in the laws. For example, € /MWh), and in 2006 this happened during one
in Germany the Renewable Energy Sources Act month in western Denmark and during five months
(EEG) provides that grid operators must pay a start- in eastern Denmark. For these periods, the wind
ing tariff for at least five years of 83.6 € /MWh to power production actually reduced the market price
owners for turbines installed in 2006. The EEG re- of electricity.
quires the starting tariff to be reduced by 2% yearly. In Mexico, the GEF approved sponsorship for
A turbine installed in 2007 will therefore receive a a first phase of a more extensive project: the Large
starting tariff of 81.9 € /MWh. Special tariffs exist Scale Renewable Energy Development Project. The
for onshore repowering and for offshore wind farms. World Bank will be the implementing agency. This
The EEG will be audited in 2007 to adapt prices for project focuses on launching an independent power
renewables to new market conditions and techno- producer renewable energy market by creating a
logical developments. transitory green fund targeted to complement regu-
Changing the rules governing subsidies can lated buyback prices for renewable energy.
have dramatic effects on the wind energy market.
In the Netherlands, the effect of the MEP produc- 4.3 Utility Purchase Obligations
tion subsidy (tariff of 65–77 € /MWh vs. grey energy At least eight IEA Wind member countries
price of 37 € /MWh) in 2006 was that 350 MW of have national and state governments that require
new wind capacity was installed. The effect of the utilities to purchase a percentage of their over-
announcement of change in the MEP-tariffs in the all generating capacity from renewable resources.
beginning of 2006 was that many developers hur- Wind energy is the option preferred by most utili-
ried to file applications before July 1, and this result- ties to satisfy this obligation. In the United States,
ed in wind projects with a total capacity of 600 MW it is estimated that 60% of the wind capacity addi-
to be installed up to 2008. The effect of reducing tions in 2006 (1,472 MW) were motivated in part
the subsidy to zero in August 2006 was that the mar- by state requirements for utilities to purchase re-
kets put the investment decisions for new projects on newable energy.

24 2006 Annual Report


Executive Summary

4.4 Green Electricity Market a detailed picture of wind patterns for any location
Wind energy qualifies as green electricity in Canada. Finland identified the uncertainty in the
used to meet utility purchase obligations, to trade as 1992 wind atlas as a bottleneck to planning for taller
certificates, or to meet consumer preferences. multi-megawatt machines along the coastal areas.
Italy reports higher market prices of green Italy has updated its wind energy atlas to be posted
certificates issued for 2006 renewable energy elec- in 2007. In Germany, Federal authorities have iden-
tricity production—around 125 € /MWh. Income tified suitable areas for offshore wind farms in the
from selling green certificates adds to the wholesale North Sea and Baltic Sea, making planning easier
market price of wind-generated electricity, which for investors.
averages around 60 € /MWh. In 2006, the avail- Clear, consistent programs give the indus-
ability term of green certificates was extended from try a firm foundation. In Italy, some investors have
eight to twelve years from the beginning of plant even stated they would be content with lower trad-
operation. able green certificates prices in exchange for better-
The Republic of Korea, as a non-annex I defined boundary conditions for their businesses in
Party of the United Nations Framework Conven- the long term.
tion on Climate Change (UNFCCC), and having
ratified the Kyoto Protocol, can host clean develop- 5.0 R, D&D Activities
ment mechanism (CDM) projects. Large-scale wind
projects in Gangwon and Yongdeok—representing 5.1 Setting Priorities
98 MW and 39.6 MW, respectively, out of Korea’s In 2007, the IEA Wind agreement will de-
total installation capacity of 173 MW—have been velop a new strategic plan in preparation for extend-
supported by revenue from the sale of CDM cred- ing the agreement for another five years from 2008
its, known as Certified Emission Reduction units, or through 2013. Key to that activity is setting R, D&D
CERs. The Gangwon Wind Farm is the first renew- priorities. Several analyses in 2006 will contribute to
able CDM-supported project in Korea, and its suc- such R, R&D planning.
cess indicates that installation of a project that uses The European Commission launched a con-
a renewable source can be supported by the sale of sultation process in March 2006 to discuss the me-
emission reduction certificates associated with the dium- and long-term strategy for EU energy policy.
project. The Green Paper “A European Strategy for Sustain-
In the United States, both residential and non- able, Competitive, and Secure Energy” proposed the
residential customers may support the development preparation of a “renewable energy roadmap” that
of renewable energy resources by purchasing renew- would include specific measures to ensure that exist-
able energy certificates (RECs), which represent the ing targets are met; consideration of which targets or
unique or green attributes of electricity generated objectives beyond 2010 are necessary; and research,
from renewable energy based products. Wind ener- demonstration, and market replication initiatives.
gy is the most commonly used resource for RECs. In The Green Paper also foresaw the preparation of
2005, total market sales increased by 37%. Much of a European Strategic Energy Technology Plan to
this growth was supported by REC sales to nonresi- move Europe toward a low-carbon energy system,
dential customers, which more than doubled during e.g., “by permitting a sharp increase in the share of
2005. As a result, commercial and institutional REC lower cost renewables, including the roll-out of off-
markets now represent nearly half of total green shore wind.”
power market sales in the United States, surpassing A part of this EU effort, the European
sales in competitive electricity markets and utility Wind Energy Technology Platform (TPWind)
green pricing programs. was launched on 19 October 2006. It is an indus-
try-led initiative supported by the 6th Framework
4.5 Other Support Mechanisms Programme of the European Union, channeled
Other kinds of support have accelerated the through the European Wind Energy Association.
development of wind energy in the IEA Wind TPWind will identify areas for increased innova-
member countries. For example, Canada has cre- tion and prioritize them on the basis of “must haves”
ated a comprehensive Wind Energy Atlas that al- versus “nice to haves.” The primary aim is overall
lows planners of wind energy projects to generate cost reduction through research and economies of

IEA Wind Energy 25


Executive Summary

scale (market deployment). The platform will detail coast of Jutland with high wind speeds (9–10 m/s at
specific tasks, approaches, actors, and necessary in- heights of 80–100 m). The test site consists of five
frastructure, in the context of private R&D and EU test stands allowing turbines with heights up to 165
and Member States programs such as the 7th Frame- m tip heights (approximately 5 MW). The largest
work Programme. Finally it will assess the overall turbine being tested in 2006 is the Vestas 4.2 MW
funding available from public and private sources to originally developed by NEG Micon.
carry out this work. In Germany, the demonstration offshore
In 2006, the ExCo approved a new research wind farm Borkum West (which is near the research
Task 26 titled Cost of Wind Energy. This task will platform FINO 1 in the North Sea) will be a test
assess methodologies for estimating COE and estab- site consisting of 12 turbines of the 5-MW class.
lish a method to assess the impact of R&D on COE. The demonstration project will be operated by the
The results of this task could help countries set re- German Offshore Test Site and Infrastructure Ltd.
search priorities, justify proposed research activities, (DOTI), which was launched by the power com-
and evaluate ongoing and completed research. panies Vattenfall Europe, E.On, and Energiewerke
Weser Ems (EWE). In addition, a test facility for
5.2 Research Funding rotor blade manufacturers to conduct static and dy-
Wind energy research is funded in many ways namic tests of multi-megawatt turbine rotor blades
including national, state, and regional programs; was launched at the Fraunhofer Center for Wind
cost-shared funding with institutes and corporations; Energy and Marine Technologies in Bremerhaven;
European Union Framework programs; and trade it will start its work in 2008.
association activities. In national program funding, In Mexico, a Regional Wind Technology
Denmark, Sweden, and the UK reported R&D bud- Centre will be built in early 2007 with the econom-
gets that increased significantly in 2006. In Finland ic support of GEF/UNDP. The center will allow in-
and Norway, budgets increased slightly. Budgets in terested wind turbine manufacturers to characterize
Canada and Germany stayed about the same, and in their products under the local conditions at La Ven-
Italy, Switzerland, and the United States slight de- tosa, Mexico. The modern and flexible installation
creases for 2006 were reported. Several countries will enable researchers to obtain hard operational
expect budgets to grow in 2007. data on the interaction of specific types of wind
In addition to national programs, funds for turbines with the electrical system. And the na-
wind energy research in Europe come from the Eu- tional technology display will facilitate interaction
ropean Union. During 2006, more than 20 R&D between wind turbine manufacturers and Mexican
projects related to wind energy were running with industries, thus promoting the identification of pos-
the support of the 5th and 6th Framework Pro- sible shared business ventures.
grammes of the European Union (the Framework To assist the development of wind energy in
Programmes are the main EU-wide tool to support Norway, SINTEF Energy Research, the Institute
strategic research areas). Many IEA Wind member for Energy Technology (IFE), and the University
countries participate, often in leadership roles, in in Trondheim (NTNU) developed a test station for
these joint research projects. wind turbines on the midwestern coast of Norway.
Activities at the test station include testing of new
5.3 Test Site News components for wind turbines.
Test sites for large and small wind turbines The Alpine Test Site Gütsch in Switzerland is
and for components are an important part of the na- based on participation in IEA Wind Task 19—Wind
tional research programs, and several changes were Energy in Cold Climates. Its results and recommen-
reported this year. Canada’s Atlantic Wind Test Site dations are currently being verified within the con-
has evolved into the National Wind Energy Institute text of the EU COST 727 project. Relevant results
of Canada (WEICan) and will be active in testing will be published in a handbook. The Gütsch site,
and certification, research and innovation, training 2,350 m above sea level, is now well equipped
and public education, and technical consultation and with meteorological measurement instruments
assistance. In Denmark, Risø National Laboratory and with data acquisition systems for power mea-
(now part of the Technical University of Denmark surements. This location could be a good test site
owns and manages the test site for multi-megawatt for smaller (<500-kW) wind turbines in alpine
wind turbines at Høvsøre, a site on the northwest conditions.

26 2006 Annual Report


Executive Summary

5.4 Selected R&D News km), the biggest (5 MW), and in the deepest water
The country chapters of the 2006 IEA Wind (42 m). DOWNVInD aims to install two demon-
Annual Report contain much information and refer- stration wind turbines adjacent to the Beatrice oil
ences to research planned, under way, and recently field (east coast of Scotland). The turbines stand
completed. A few highlights of R, D&D accomplish- about 150 m above sea level.
ments for 2006 are presented here.
5.4.2 Large turbine development
5.4.1 Offshore wind In Germany, multi-megawatt turbine de-
March 2006 saw the beginning of the largest velopment is very active. Prototype turbines were
ever EU-funded R&D project in the field of wind tested by DeWind Ltd. (2-MW) and Fuhrländer
technology. The UPWIND project is an integrating (2.5-MW). Work continued on other large tur-
initiative to look at the design of very large turbines bines: Enercon 6-MW and 4.5-MW, REpower 5-
expected for offshore use. MW, and Multibrid Entwicklungsgesellschaft Ltd
Within IEA Wind Task 23—Offshore Wind 5-MW. A new company, BARD Engineering Ltd., is
Technology Developments, participants formed a pushing development of 5-MW turbines with a new
working group named Offshore Code Comparison “multipile” foundation concept for water depths
Collaboration (OC3) to focus on coupled turbine/ from 20–50 m.
substructure dynamic modeling. The OC3 partici- In the United States, a multi-year develop-
pants developed dynamics models for an offshore ment partnership with Clipper Windpower Inc.
wind turbine with monopile support structure. has resulted in a prototype ready for commercial
They made basic model-to-model comparisons of manufacture. In 2006, the program completed per-
the wind-inflow, wave kinematics, and wind tur- formance and acoustic tests on Clipper’s 2.5-MW
bine response. They are currently focusing on com- prototype installed in Wyoming. Other govern-
parisons of the monopile geotechnical response and ment/industry partnerships in the United States
are defining a tripod support structure to be used in have produced and tested components for large
the next phase of the project. The code comparison wind turbines including a modular, highly efficient
work has established a procedure and database that power electronics package; a 1.5-MW single-stage
can be used for future code verification activities drivetrain with a planetary gearbox and permanent-
and analyst training exercises. In addition, the EU- magnet generator; a new tooth form for gearboxes
integrated UPWIND research program has adopted to improve power density and reduce costs; and a
the offshore 5-MW baseline wind turbine model, sweep-twist adaptive rotor wind turbine blade that
which is used in the OC3 project, as its reference passively reduces loads.
wind turbine. The model will be used as a reference
by all UPWIND Work Package teams to quantify 5.4.3 Materials
the benefits of advanced wind energy technology. In Finland, as part of its strategic research
In the Netherlands, some results of the Moni- program on Smart Machines (2002–2006), VTT
toring and Evaluation program of the Offshore has developed technologies, components, and solu-
Wind Farm Egmond aan Zee (OWEZ, formerly tions for large wind turbines such as technologies to
know as NSW) became available in 2006. In addi- control the shape of composite structures at labora-
tion to climate data, reports were released detailing tory scale.
analysis methods and results about biological fouling The EU OPTIMAT BLADES research proj-
and the projected likelihood and effects of ship colli- ect was completed and provides design recommen-
sions, oil spills, and interference with shipping radar dations for the optimized use of materials for rotor
of the OWEZ. blades. A wealth of experimental data gathered with-
On 20 August 2006, the EU DOWNVInD in this project, including results of CRES research in
project, which seeks to pioneer cost-effective wind Greece, is available to the public at http://www.kc-
farms in water depths of up to 50 m and approx- wmc.nl/optimat_blades.
imately 25 km away from the shore, saw the first
wind turbine of the project loaded out from Nigg 5.4.4 Small wind
Bay, transported to the location, and lifted onto its A new 1.8-kW turbine by Southwest Wind-
substructure. The machine is the first wind turbine power completed performance tests in 2006. Devel-
in international waters, the farthest from shore (25 oped in partnership with U.S. Department of En-

IEA Wind Energy 27


Executive Summary

ergy, it has fully integrated electrical components, system operation. If wind power has to be balanced
costs less than comparable sized machines, is easier by the TSO, some wind power fluctuations may be
to install, and operates more quietly. cancelled out between different wind farms due to
In Portugal, INETI is developing a small, geographical spread, but large imbalances are inevi-
high-performance, low-cost turbine for urban table. In a market-based environment however, the
use–TURBan. This national project, designed and market parties should be responsible for balancing
constructed using Portuguese technology, will be their portfolio in order to keep the imbalance on the
completed and operational by mid-2008. system level as low as possible.
A study in the United States gathered the data
5.4.5 Forecasting and costs needed to predict the physical impacts and costs of
In Finland, the first short-term forecasting wind generation on grid operations and to identify
project by Foreca, VTT Technical Research Centre, transmission constraints. The results showed that
and Cybersoft showed the benefits of grouping wind the additional operating costs of wind energy would
farms along the coastline; dispersing the sites reduc- be moderate at the large penetration levels expected
es forecasting errors. Forecast errors from day-ahead in the next five to ten years and that large diverse
forecasts result in deviations in the bid amounts of balancing areas with robust transmission tend to re-
production to the electricity markets. For these de- duce wind’s impact and ancillary service cost.
viations, imbalance costs have to be paid. A study
of imbalance costs was paid for by a Finnish wind 5.4.7 Cold climate
producer with four sites. The case study showed a A preliminary study in Switzerland of the
price of 1.5 € /MWh (2004 prices) when predicting use of nano-coatings (antifreeze coatings based on
production without meteorological forecasts and 0.8 the effect of antifreeze proteins) was carried out.
€ /MWh when predicting production on the basis of Antifreeze proteins inhibit crystal growth, forcing
meteorological forecasts. ice formation to start at much lower temperatures.
Unlike traditional antifreeze compounds, the effect
5.4.6 Grid integration of antifreeze proteins is not proportional to their
The Republic of Ireland and Northern Ire- concentration. Synthetically prepared polymers can
land began an all-island study in June 2006 to in- mimic the effect of antifreeze proteins. So far, the
vestigate grid issues for renewable energy to 2020. tested coatings have shown a reduction in ice adhe-
Wind energy will contribute the greatest percentage sion and formation on surfaces, but this reduction is
of renewable energy in Ireland. The study will ex- not yet sufficient to prevent icing. Coatings with an-
amine penetrations of renewable energy sources of tifreeze properties analogous to antifreeze proteins
15%, 20%, and 30%; determine the cost of various open up new possibilities for reducing ice formation
renewable energy mix options; determine technical on surfaces.
issues for high renewable energy penetration espe-
cially in electrically isolated areas; and inform the 5.4.8 Storage
government in detail of the implications of renew- In Germany, a new research network is deal-
able energy policy choices. ing with the storage of wind energy in underground
A study of unit commitment and dispatch in air-pressure storage areas in combination with the
the Netherlands in the presence of future large-scale energetic deployment of low concentrated North
wind energy production was released in 2006. The Sea gas resources. Existing underground holes re-
results show no ramp rate problems in the Dutch sulting from former salt mines and ore mines are
system by 2012. However, base-load problems may being evaluated concerning their availability as air-
arise at high wind penetration levels, and these pressure storage areas for the intermediate storage
problems can only be prevented by wasting available of wind energy.
wind resources. In a related study, a system model In Ireland, a study of a new electricity storage
was developed to simulate system balancing includ- system is under way: the Vanadium Redox Battery
ing wind power integration under various regimes. Storage System (VRBESS™) at Sorne Hill Windfarm
The preliminary results demonstrate that the mar- in Donegal. If successful, the technology would al-
ket design for integrating wind power has a major low wind energy generated at off-peak times to be
impact on the overall system balance. Most notably, stored and supplied to the grid at a scheduled time.
the Area Control Error, being a key parameter for Another study examined the costs and benefits of in-

28 2006 Annual Report


Executive Summary

tegrating a battery-based power storage system with ects. To gain knowledge about the real disturbances
a 6-MW wind farm. The report concluded that the caused by wind turbines offshore and to develop a
optimum battery is a 2-MW capacity battery deliv- new model, the Swedish Energy Agency is funding
ering six hours of electricity storage. a project with flight tests over one of the existing
In Japan, a study of a grid stabilization system offshore wind farms. Plans are for the project to be
with battery backup is under way by demonstrating carried out during 2007.
the system on a wind farm.
In Norway, a wind/hydrogen demonstration 5.4.10 Long-term measurements
project at Utsira has been operating for two years In Germany, final results from the Scientific
to demonstrate how renewable energy can provide Measuring and Evaluation Programme (WMEP)
a safe and efficient energy supply to isolated areas. were presented in 2006. WMEP has developed
The system uses wind energy as the only energy 63,000 reports detailing energy output data; opera-
source, and excess power is used to produce hydro- tion experiences; and data about damage caused by
gen, which is used later in a fuel cell. lightning, storms, ice, and grid failures. The data
In Portugal, the most recent public call for were collected from 1,500 wind turbines together
grid connection provided incentives to encourage with wind data at 60 locations. This unique database
wind farm owners and operators of pumped hydro will be extended to future offshore wind farms.
power stations to store wind energy for use by the The German research platform FINO 1
power system when needed. (www.fino-offshore.de) in the North Sea has been in
operation for more than three years. Wind, wave, and
5.4.9 Environmental impact assessment load data are now available online (http://fino.bsh.
In a bilateral cooperation between Germany de). FINO 2 (www.fino2.de) is located in the Baltic
and Denmark, researchers investigated harbor por- Sea at the borders of the German, Swedish, and Dan-
poises and birds at the two Danish offshore wind ish EEZ. The monopile foundation was rammed in
farms, Horns Rev and Nysted. A new project of the October 2006. Offshore installation of the deck and
German Marine Museum Stralsund and the Dan- the measuring mast will occur in June 2007. FINO
ish National Environmental Institute will develop 3 (www.fino3.de) will be commissioned in summer
standardized methods for the calibration and signal 2008 in the northern part of the German EEZ of
analysis of porpoise hydrophones (PODs). In related the North Sea about 70 km west of Sylt Island. A
work, temperature measurements at the sea bottom special focus of FINO 3 will be geophysical inves-
above the 110-kV cables of the Nysted wind farm tigations concerning interactions between sediment
showed no significant effect on the temperature of and monopile and lightning on the open sea and its
the sediment layer above. possible impact on turbine components.
In the Netherlands, ECN developed and test-
ed a new method to detect and record bird collisions 5.4.11 Innovative applications
that is suitable for continuous remote operation in In Greece, CRES participates in the Floating,
both onshore and offshore wind farms. A prototype Autonomous, Ecological, and Effective Desalination
was tested on a land-based multi-megawatt turbine Unit project to design and develop a wind-powered
at their wind turbine test site. ECN intends to of- reverse-osmosis (RO) unit for seawater desalination.
fer a service to wind farm owners and operators in The system includes a 30-kW wind generator, an
which it is responsible for the installation and opera- RO unit of 80 m3/day potable water capacity, a bat-
tion of the system and reports bird collisions to the tery bank, and control system.
customer.
In Sweden, work is under way to accurately 6.0 Next Term
model wind turbine interference with military ra-
dar. Onshore, models of the interaction between The continued expansion of wind energy
radar and wind turbines have in past years been capacity and production is projected by all mem-
improved to consider terrain effects. Using these ber countries. Due to limited onshore locations in
models, onshore wind energy projects have had countries with high wind development, activities
fewer problems getting approved. For offshore lo- to begin or expand offshore operations are under
cations, however, the current model in use results way. These include mapping offshore resources,
in the Defense Administration stopping most proj- developing hardware and logistics strategies, study-

IEA Wind Energy 29


Executive Summary

ing barriers (environmental and radar), and prepar- 3) IEA Wind Annual Reports 1995–2005, www.
ing institutional procedures. Increased emphasis on ieawind.org.
demonstration of large multi-megawatt turbines 4) IEA R&D Wind Annex XV reports 1995,
is coupled with renewed interest in improving the 1997.
technology of small wind turbines. Reducing costs 5) Wind Directions http://www.ewea.org/file-
is a high priority in all of the IEA Wind member admin/ewea_documents/documents/publications/
countries. On 6–7 December 2007, an IEA Wind WD/WD22vi_public.pdf
Topical Expert Meeting will be held on Long-Term 6) BWEA report http://www.bwea.com/pdf/
Research Needs. This activity under Task 11 should planning/planningdelays.pdf
provide input to the new IEA Wind Strategic Plan 7) IEA Wind, 2003, Strategic Plan, 1 November
for the next 5-year term (7). 2003 to 31 October 2008, www.ieawind.org.

References: Author: Patricia Weis-Taylor, Secretary, IEA


1) EWEA, www.ewea.org. Wind, Boulder, Colorado, USA.
2) The Windicator, Windpower Monthly,
April 2007, Denmark: Wind Power Monthly News
Magazine.

30 2006 Annual Report


Implementing Agreement

1
1.0 Introduction 2.0 National Programs

IEA’s commitment to wind energy dates back The national wind energy programs of the
to 1977, when the Implementing Agreement began participating countries are the basis for the IEA
that is now called the Implementing Agreement for Wind collaboration. These national programs are
Co-operation in the Research, Development, and directed toward the evaluation, development, and
Deployment of Wind Energy Systems (IEA Wind). promotion of wind energy technology. An overview
The past 29 years have seen the development and and analysis of national program activities in 2006 is
maturing of wind energy technology. This process presented in the Executive Summary of this Annual
has been facilitated through vigorous national pro- report. Individual county activities are presented in
grams of research, development, demonstration, and Chapters 10 through 29.
financial incentives. In this process, IEA Wind has
played a role by providing a flexible framework for 3.0 Collaborative Research
cost-effective joint research projects and informa-
tion exchange. Participants in the IEA Wind Agreement are
The mission of the IEA Wind Agreement currently working on seven cooperative research
continues to be to encourage and support the tech- tasks, which have been approved by the ExCo as
nological development and global deployment of Annexes to the original Implementing Agreement
wind energy technology. To do this, the contracting text. Progress in cooperative research is described in
parties exchange information on their continuing chapters 2 through 8. Tasks are referred to by their
and planned activities and participate in IEA Wind annex number. Some annexes have been completed
tasks regarding cooperative research, development, and so do not appear as active projects in this report.
and demonstration of wind systems. The tasks are This is why the numbers of active annexes may not
listed as numbered Annexes to the Implementing be sequential.
Agreement. Each member country must participate in
At present, 24 contracting parties from 20 at least one cooperative research task. Countries
countries, the European Commission, and the Eu- choose to participate in tasks that are most relevant
ropean Wind Energy Association (EWEA) partici- to their current national research and development
pate in IEA Wind. Australia, Austria, Canada, Den- programs. Additional tasks are planned when new
mark, the European Commission, EWEA, Finland, areas for cooperative research are identified by
Germany, Greece, Ireland, Italy (two contracting Members. (Table 2)
parties), Japan, the Republic of Korea, Mexico, the The level of effort on a task is typically the
Netherlands, Norway (two contracting parties), equivalent of several people working for a period of
Portugal, Spain, Sweden, Switzerland, the United three years. Some tasks have been extended to con-
Kingdom, and the United States are now members. tinue the work. The projects are either cost-shared
(Table 1) The EWEA became a Sponsor member and carried out in a lead country, or task-shared,
in 2006. when the participants contribute in-kind effort, usu-
Recently there has been increasing interest in ally in their home organizations, to a joint research
IEA participation from both the Organization for program coordinated by an Operating Agent. By the
Economic Cooperation and Development (OECD) close of 2006, 14 tasks had been successfully com-
and non-OECD countries. This interest is being pleted and two tasks had been deferred indefinitely.
encouraged, and prospective members attend IEA (Table 3)
Wind Executive Committee (ExCo) meetings to To obtain more information about the co-
observe first-hand the benefits of participation. In operative research activities, contact the Operating
2006 the ExCo invited representatives from Brazil, Agent Representative for each task listed in Appen-
China, India, Russia, and South Africa and others to dix B or visit our Web site at www.ieawind.org un-
attend meetings as observers. der the tab for cooperative research or follow the
links to individual Task Web pages.

IEA Wind Energy 31


Implementing Agreement

Table 1 Contracting parties in 2006 to the International Energy Agency


Implementing Agreement for Co-operation in the Research, Development, and
Deployment of Wind Energy Systems (IEA Wind)
Country/Organization Contracting Party to Agreement
Australia Australian Wind Energy Association
Austria The Republic of Austria
Canada Natural Resources Canada
Denmark Danish Energy Authority
European Commission The Commission of the European Communities
European Wind Energy Association European Wind Energy Association
Finland The National Technology Agency of Finland (TEKES)
Germany The Federal Ministry for the Environment, Nature Conservation and
Nuclear Safety
Greece Center of Renewable Energy Resources (CRES)
Ireland Sustainable Energy Ireland
Italy CESI S.p.A. and ENEA Cassaccia
Japan National Institute of Advanced Industrial Science and Technology (AIST)
Korea The Government of Korea
Mexico Instituto de Investigaciones Electricas (IIE)
Netherlands The Netherlands Agency for Energy and the Environment
(SenterNovem)
Norway The Norwegian Water Resources and Energy Directorate (NVE) and
Enova SF
Portugal National Institute for Engineering and Industrial Technology (INETI)
Spain Instituto de Energias Renovables (IER) of the Centro de Investigación;
Energetica Medioambiental y Tecnologica (CIEMAT)
Sweden The Swedish Energy Agency
Switzerland The Swiss Federal Office of Energy
United Kingdom Department of Trade and Industry
United States The U.S. Department of Energy

4.0 Executive Committee The ExCo meets twice each year to exchange
information on the R&D programs of the members,
Overall control of information exchange and to discuss work progress on the various tasks, and to
of the R&D tasks is vested in the Executive Com- plan future activities. Decisions are reached by ma-
mittee (ExCo). The ExCo consists of a Member and jority vote or by unanimity when financial matters
one or more Alternate Members designated by each are decided. Members share the cost of administra-
contracting party that has signed the Implementing tion for the ExCo through annual contributions to
Agreement. Most countries are represented by one the Common Fund. The Common Fund supports
contracting party that is usually a government de- the efforts of the Secretariat and other expenditures
partment or agency. Some countries have more than approved by the ExCo in the annual budget.
one contracting party within the country. Inter-
national organizations may join the Implementing Officers
Agreement as sponsor members. In 2006, Ana Estanqueiro (Portugal) served
as Chair and Sara Hallert (Sweden) served as Vice

32 2006 Annual Report


Implementing Agreement

Table 2 Active cooperative research tasks defined in Annexes to the IEA Wind
implementing agreement (OA indicates operating agent that manages the task)
Task 11 Base technology information exchange
OA: Vattenfall, Sweden (1987 to present)
Task 19 Wind energy in cold climates
OA: Technical Research Centre of Finland - VTT. (2001 to 2008)
Task 20 HAWT Aerodynamics and models from wind tunnel tests and measurements
OA: NREL, the United States (2003 to 2007)
Task 21 Dynamic models of wind farms for power system studies
OA: Sintef Energy Research, Norway (2003 to 2007)
Task 23 Offshore wind energy technology development OA: Risø National Laboratory, Denmark and the
National Renewable Energy Laboratory (NREL), United States (2004 to 2008)
Task 24 Integration of wind and hydropower systems, OA: NREL, United States (2004 to 2008)
Task 25 Design and operation of power systems with large amounts of wind power. OA: Technical Research
Centre of Finland – VTT, (2005-2008)

Chair. At the 58th ExCo meeting the ExCo elected from 13 of the contracting parties, three operat-
Morel Oprisan (Canada) and Brian Smith (United ing agent representatives of the tasks, the IEA Paris
States) as vice chairs for the calendar year 2007. Sara representative, and observers. The ExCo reviewed
Hallert withdrew from her position as vice chair. and approved technical progress reports of ongoing
tasks 11, 19, 20, 21, 23, 24, and 25; and approved
Participants extension of task 20 through July 2007. The audit
In 2006, the EWEA joined to become the report of 2005 accounts of the Common Fund was
first sponsor member of the Implementing Agree- approved. On 30 March 2006, the ExCo visited the
ment. (See Appendix B for an updated list of Mem- Hansen Transmissions factory at Lommel, Belgium
bers, Alternate Members, and Operating Agent and toured the Renewable Energy House of the Eu-
representatives.) During the year, the ExCo invited ropean Wind Energy Association in Brussels.
representatives from several countries to attend as The 29th issue of the IEA Wind Energy An-
observers. nual Report was published in June 2006.
The 58th ExCo meeting was hosted by the
Meetings Australian Wind Energy Association (AusWind) in
The ExCo normally meets twice a year for Adelaide, Australia on 21 and 22 September 2006.
Members to review ongoing tasks; plan and man- There were 27 participants from 16 of the contract-
age cooperative actions under the Agreement; ing parties, five operating agent representatives of
and report on national wind energy research, devel- tasks, and observers from New Zealand and the
opment, and deployment activities (RD&D). The Global Wind Energy Council. The completed email
first meeting of the year is devoted to reports on ballot to accept the EWEA as sponsor member was
R&D activities in the member countries, and the announced. The ExCo approved the budgets for the
second meeting is devoted to reports about deploy- ongoing tasks and for the Common Fund for 2007.
ment activities. Several ExCo members gave presentations at the
The 57th ExCo meeting was hosted by the AusWind International Wind Energy Conference
European Commission in Brussels, Belgium on 28, during the week.
29, and 30 March 2006. There were 24 participants

IEA Wind Energy 33


Implementing Agreement

Table 3 Completed or inactive cooperative research tasks defined in Annexes to the IEA
Wind implementing agreement (OA indicates operating agent that manages the task)
Task 1 Environmental and meteorological aspects of wind energy conversion systems
OA: The National Swedish Board for Energy Source Development. (1978 to 1981)
Task 2 Evaluation of wind models for wind energy siting OA: U.S. Department of Energy - Battelle Pacific
Northwest Laboratories. (1978 to 1983)
Task 3 Integration of wind power into national electricity supply systems
OA: Kernforschungsanlage Jülich GmbH, Germany. (1978 to 1983)
Task 4 Investigation of rotor stressing and smoothness of operation of large-scale wind energy conversion
systems
OA: Kernforschungsanlage Jülich GmbH, Germany. (1978 to 1980)
Task 5 Study of wake effects behind single turbines and in wind turbine parks
OA: Netherlands Energy Research Foundation. (1980 to 1984)
Task 6 Study of local flow at potential WECS hill sites
OA: National Research Council of Canada. (1982 to 1985)
Task 7 Study of offshore WECS
OA: UK Central Electricity Generating Board. (1982 to 1988)
Task 8 Study of decentralized applications for wind energy
OA: UK National Engineering Laboratory. (1984 to 1994)
Task 9 Intensified study of wind turbine wake effects
OA: UK National Power plc. (1984 to 1992)
Task 10 Systems interaction. Deferred indefinitely.
Task 12 Universal wind turbine for experiments (UNIWEX) OA: Institute for Computer Applications,
University of Stuttgart, Germany. (1988 to 1995)
Task 13 Cooperation in the development of large-scale wind systems
OA: National Renewable Energy Laboratory (NREL), USA. (1990 to 1995)
Task 14 Field rotor aerodynamics
OA: Stichting Energieonderzoek Centrum Nederland (ECN), the Netherlands. (1992 to 1997)
Task 15 Annual review of progress in the implementation of wind energy by the member countries of the
IEA
OA: ETSU, the United Kingdom. (1994 to 2001)
Task 16 Wind turbine round robin test program
OA: the National Renewable Energy Laboratory (NREL), the United States. (1995 to 2003)
Task 17 Database on wind characteristics
OA: RISØ National Laboratory, Denmark. (1999 to 2003)
Task 18 Enhanced field rotor aerodynamics database
OA: Netherlands Energy Research Foundation - ECN, the Netherlands Extend the database
developed in Task XIV and disseminate the results. (1998 to 2001)
Task 22 Market development for wind turbines. On hold.

34 2006 Annual Report


Table 4 Participation of member countries in Annexes during 2006. (OA indicates operating agent that manages the task)
11 19 20 21 23 24 25
Base Technology Wind Energy in Cold HAWT Aero- Dymanic Models for Offshore Wind Integration of Wind Power Systems with
Information Climates dynamics and Wind Farm Power Energy Technology Hydropower Systems Large Amounts of

IEA Wind Energy


Country Exchange Models from Wind Systems and Deplyment Wind Power
Tunnel Tests
Australia x
Austria
Canada x x x x
Denmark x x x OA x
European Commission x
European Wind Energy x
Association
Finland x OA x x OA
Germany x x x x
Greece x
Ireland x x x
Italy x x
Japan x
Korea x
Mexico x
Netherlands x x x x x
Norway x x x OA x x x
Portugal x x
Spain x x x
Sweden OA x x x x x
Switzerland x x
United Kingdom x x x x
United States x x OA x OA OA x
Start Date 1987 2001 2003 2003 2004 2004 2005
End Date Ongoing 2008 2007 2007 2008 2008 2008

35
Implementing Agreement
Implementing Agreement

36 2006 Annual Report


Task 11
2

Base Technology Information Exchange

1.0 Introduction a Joint Action so participants can continue to share


information on a regular basis.
The objective of this research task is to pro- Topical Expert Meetings can also begin the
mote wind turbine technology by co-operative ac- process of organizing new research tasks as addi-
tivities and information exchange on RD&D topics tional Annexes to the Implementing Agreement.
of common interest. These particular activities have For example, in 2005 Task 25 Power System Opera-
been part of the IEA Wind Implementing Agree- tion with Large Amounts of Wind Power was ap-
ment since 1978. Most of the IEA Wind member proved by the ExCo after Topical Expert Meeting
countries pay fees to participate in this task so that 44 in 2004 on System Integration of Wind Turbines
researchers in their countries can benefit from this brought together the interested experts who wrote
information exchange. the Task proposal.
In 2006, a new Task 26 Cost of Energy from
2.0 Objectives and Strategy Wind Systems, was approved after Topical Expert
Meeting 47 in 2005 on Methodologies for Esti-
The task includes activities in two sub-tasks. mating the Cost of Energy from Wind Energy and
The first is to develop recommended practices for Methodologies to Estimate the Impact of Research
wind turbine testing and evaluation by assembling on Cost. Participants in that meeting wrote the task
an Experts Group for each topic needing recom- proposal and will participate in the cooperative
mended practices. In the series of Recommended work to advance understanding in this field.
Practices, 11 documents have been published. Five Over the 26 years since these activities were
of these have appeared in revised editions (Table 1). initiated to promote wind turbine technology
Many of the documents have served as the basis for through information exchange, 50 volumes of pro-
both international and national standards. ceedings from Expert Meetings (Table 2) and 26
The second sub-task is to conduct two types volumes of proceedings from Joint Action Symposia
of meetings of experts on topics designated by the (Table 3) have been published.
IEA Wind Executive Committee (ExCo). The first
type of meeting is Joint Action Symposia in specific 3.0 Progress in 2006
research areas. Once a Joint Action is established,
experts meet on a regular basis to share progress on According to the work plan approved by the
the issue. So far, Joint Actions have been initiated ExCo, the following activities were planned for
in aerodynamics of wind turbines, wind turbine fa- 2006:
tigue, wind characteristics, offshore wind systems, 48 th Topical Expert Meeting on Operation
and wind forecasting techniques. The second type and Maintenance of Wind Power Stations
of meeting, Topical Expert Meetings, is arranged on 49th Topical Expert Meeting on Challenges
topics decided by the IEA Wind ExCo. Proceedings of Introducing Reliable Small Wind Turbines
are distributed to attendees and to the countries that 50th Topical Expert Meeting on the
pay fees to participate in Task 11. Sometimes Topi- Application of Smart Structures for Large
cal Expert Meetings result in a recommendation for Wind Turbine Rotor Blades

IEA Wind Energy 37


Implementing Agreement

The fourth meeting of the year “State of the The attendees of TEM 48 discussed the mag-
art of Remote Wind Speed Sensing Techniques Us- nitude of O&M costs. These costs seem to be in the
ing Sodar, Lidar and Satellites” will be arranged following ranges:
early in 2007. • Offshore 1-2 € /MWh
The Joint Action Symposium on Aerody- • Onshore 1 € /MWh
namics was this year arranged as a part of the Task
20 work. (See Chapter 4 HAWT Aerodynamics Models to estimate O&M cost are offered by
and Models from Wind Tunnel Measurements, at least two companies: ECN and Garad & Hassan.
Task 20.) These tools were considered interesting by the TEM
participants, but crucial statistical inputs are difficult
3.1 Operation and Maintenance of to obtain.
Wind Power Stations (TEM 48)
There is great potential to lower the amount 3.2 Challenges of Introducing Reli-
of corrective maintenance and find strategies and able Small Wind Turbines (TEM 49)
methods for preventive maintenance of wind tur- Small wind turbines have great potential to
bines. Doing so will reduce O&M costs. Presently provide electric power, especially in remote loca-
it is quite difficult to develop such general strategies tions. Market studies indicate a quickly growing
due to the limited number of wind turbines of a spe- demand for small wind turbines and hybrid power
cific model and also because fault statistics are only systems, which combine wind and some other gen-
in the hands of the owners/operators. eration technology. However, according to meeting

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ihp^ki^k_hkfZg\^f^Zlnk^f^gm
lmZg]Zk]

38 2006 Annual Report


Task 11

MZ[e^+Mhib\Ze>qi^kmF^^mbg`la^e]lbg\^*22)#
.) Ma^:iieb\Zmbhgh_LfZkmLmkn\mnk^l_hkEZk`^Pbg]Mnk[bg^Khmhk Khldbe]^%=^gfZkd +))/
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-0 F^mah]heh`b^l_hk>lmbfZmbhgh_<hlmh_Pbg]>g^k`rZg]ma^ IZkbl%?kZg\^ +)).
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-/ H[lmZ\e^FZkdbg`h_Pbg]Mnk[bg^l Lmh\dahef%Lp^]^g +)).
-. KZ]Zk%KZ]bh%KZ]bhEbgdlZg]Pbg]Mnk[bg^l Ehg]hg%ND +)).
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+- Pbg]\hg]bmbhgl_hkpbg]mnk[bg^]^lb`g Kbl¶%=^gfZkd *22,
+, ?Zmb`n^h_pbg]mnk[bg^l%_nee&l\Ze^[eZ]^m^lmbg` @he]^g%<hehkZ]h *22+
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# ?hkf^^mbg`likbhkmh*22)%l^^ppp'b^Zpbg]'hk`

IEA Wind Energy 39


Implementing Agreement

Table 3 Joint Action Symposia since 1994


No. Year Host Place Country
Aerodynamics of wind turbines
16 2003 NREL Boulder, CO USA
15 2001 NTUA Athens Greece
14 2000 NREL Boulder USA
13 1999 FFA Stockholm Sweden
12 1998 DTU Lyngby Denmark
11 1997 ECN Petten Holland
10 1996 Edinburgh United Kingdom
9* 1995 FFA Stockholm Sweden
Fatigue of wind turbine blades
5 1999 Uni. Delft Delft Holland
4 1996 DLR Stuttgart Germany
3* 1994 ECN Petten Holland
Wind
3 2003 Risø Roskilde Denmark
2 1999 Risø Roskilde Denmark
1 1994 GL Hamburg Germany
Wind forecasting techniques
2 2004 DTU Lyngby Denmark
1 2002 SMHI Norrköping Sweden
* For symposia prior to 1994 see www.ieawind.org under Task 11

participants, small wind turbines have the following wind turbines is also the fact that they are often
issues. purchased by private individuals without the pro-
• short operational lifetimes because of tech- fessional competence or procurement practices nor-
nical failures and/or excessive maintenance mally used when buying medium and large wind
requirements turbines.
• misleading or non-existent power curves, The objective of TEM 49 was to find ways to
production, and noise data ensure that small wind turbines are reliable in the
• lack designs conforming to existing safety following areas.
standards and have caused accidents • reliable long life: reduce technical failures
• fail to fulfi l legal product requirements in and excessive maintenance
some countries. • reliable performance: reliable published
power curve, production and noise data
While government programs in the early days • reliable safety: appropriate safety standards
of wind energy development fostered the manufac- followed and accidents avoided
turers of medium-sized wind turbines to produce • reliable from a legal point of view: the buy-
good products, this was not the case for small wind er should not face the risk of buying a product
turbines. Contributing to the problems with small that is illegal to operate.

40 2006 Annual Report


Task 11

The participants favored promoting further As wind turbines become even larger more
work in the area. The most important thing would detailed and faster control of the loads will be nec-
be to develop a label stating that a product is legal essary. Control should be possible for each blade at
and safe. This would allow consumers to avoid un- any azimuthal position and any spanwise station.
safe products. One initiative discussed was to devel- This will be accomplished by aerodynamic control
op a recommended practice for labelling small wind devices with embedded intelligence distributed
turbines. Other initiatives related to such a proposal along the span. The similarity to control devices
include the EU-funded study on small wind pre- used for airplane wings (flaps at leading and trail-
pared by a group from France and the Netherlands. ing edge, ailerons) is apparent, but the requirements
The Global Wind Energy Council might also par- for wind turbine blade control devices are probably
ticipate in such an initiative. The American Wind much more severe. Modern blades are very reliable
Energy Association is presently working in this area, and require only limited maintenance at the blade
especially on standardization. pitch bearing. Future blades with distributed control
The participants agreed to write a proposal devices should be as reliable, without adding main-
for the development of an IEA Wind Recommend- tenance requirements. The development of this kind
ed Practice on methods for labelling of small wind of technology, often named in popular terms ‘smart
turbines. An Ad Hoc group was set up with the re- structures’ or ‘smart technology’, is an interdisciplin-
sponsibility to prepare such a proposal in 2007. ary development par excellence.

3.3 The Application of Smart Structures for 3.3.2 Discussion


Large Wind Turbine Rotor Blades (TEM 50) The objective of TEM 50 was to report and
discuss progress of R&D on these topics. During the
3.3.1 Background final discussion, the general attitude was that this
Wind turbines and their blades are becoming new area in the wind turbine research may result
larger. Modern wind turbines designed for offshore in more effective ways of controlling power produc-
applications are now the largest rotating machines tion and thus lower the cost of electricity produced.
on earth, with the length of one blade almost equal However, the following challenges related to
to the entire span of a Boeing 747. This up scaling “smart structures” were identified.
has so far been accomplished with few changes in • Costs are difficult to determine for these
the blade structure: all blades are constructed as a new technologies. Designers should aim for
single component, with the blade skin as the load 30% (substantial) load reduction to compen-
carrying element. Until the 1990s, the ’Danish con- sate for the risks. Reliability is most important.
cept’ combined constant rotor speed with stall of the • Shape Memory Alloy (SMA) materials have
flow around the rotor blades; increasing wind speeds an on/off characteristic, but the need in wind
automatically induce increasing drag forces that turbines is to have variable amplitude.
limit the absorbed power. Today, most large wind • Control issues related to SMA are cooling,
turbines run at variable rotational speed, combined temperature range, and loads.
with the adjustment of the collective pitch angle of • Damage from lightning strikes in SMA
the blades to optimize energy yield and to control materials and conductors must be handled.
the loads. Controlling blade pitch angle has led to Helicopter blades, for example, are certi-
improved power regulation, significantly lighter fied and have solved the problem of lightning
blade construction due to the lower load spectrum, strike.
and a lighter gearbox due to shaved torque peaks. • It is important to try to damp edge-wise
The next step in blade load control is almost oscillations in blades and this must be han-
ready for commercial application: pitch angle adjust- dled by the new “smart” structures. Necessary
ment on individual blades instead of on the collec- damping figures of 0.5–1.5 % were mentioned.
tive. This will further reduce rotor loads, especially • Bending/torsion coupling in the blades
the periodic loading due to yaw and wind shear. Not may be introduced to control power. This has
only blades will benefit from this, but also the drive been used in the small scale but has not been
train and nacelle structure.

IEA Wind Energy 41


Implementing Agreement

used commercially because the tools are not • State of the Art of Remote Wind Speed
sufficient to claim efficiency increase. The
structure will cost more so trade off cannot be • Sensing Techniques Using Sodar, Lidar
made accurately. and Satellites
• Missing in the discussion was the need for
sensors and energy supply to the actuators. For • Wind and Wave Measurements at
information, there is a national Danish pro- Offshore Locations
gram on using sensors.
• Efficiency of actuator depends on airfoil. • Radar, Radio, and Wind Turbines
An airfoil designed specifically for these actua-
tors may be needed. Both Risø and University • Social Acceptance of Wind Energy Projects
of Stuttgart are developing such airfoils.
• Aerodynamicists are beginning to un- • Noise and Noise Propagation Models
derstand effects caused by non-stationary
phenomena, which were thought to be sta- All documents produced under Task 11 are
tionary. Non-stationary, high-frequency available to organizations within the countries that
phenomena should be investigated. participate in the Task: Canada, Denmark, Finland,
Germany, Ireland, Italy, Japan, Mexico, the Neth-
The participants were very enthusiastic about erlands, Norway, Spain, Sweden, the United King-
having another Topical Expert Meeting on this sub- dom, and the United States. Organizations within
ject. The suggestion was to have annual meetings on these countries can receive the newest documents
smart structures with some added topics like new from the Operating Agent representative, listed in
structural and 3-D aerodynamic concepts. Appendix B.
All documents more than one year old can
4.0 Plans for 2007 and beyond be accessed on the public Web pages for Task 11 at
www.ieawind.org.
Task 11 has been extended through 2007
and a new workplan was approved to continue co- Author: Sven-Erik Thor, Vattenfall, Sweden
ordinating Topical Experts Meetings and Joint Ac-
tion Symposia. Four meetings of this type will be
arranged every year. Examples of meetings include,
but will not be limited to the following.

42 2006 Annual Report


Task 19
3

Wind Energy In Cold Climates

1.0 Introduction The expression “cold climate” was defined


to mean sites where turbines are exposed to low
Wind energy is increasingly being used in temperatures outside the standard operational limit
cold climates, and technology has been adapted to and to sites where turbines face icing. These condi-
meet these challenges. As the turbines that incor- tions retard energy production during the winter.
porate new technology are being demonstrated, the Typically such sites are often elevated from the sur-
need grows for gathering experiences in a form that rounding landscape or locate on high northern lati-
can be used by developers, manufacturers, consul- tudes (1) (Figure 1).
tants, and financiers.
In order to supply needed information on the 2.0 Objectives and strategy
operation of wind turbines in cold climates, Annex
19 to the IEA Wind Implementing Agreement was The objectives of Task 19 are to:
officially approved in 2001. The resulting research • Determine the current state of cold climate
task began in May 2001 and continued for three solutions for wind turbines, especially anti-
years. At the end of the first three-year period, the and de-icing solutions that are available or are
participants decided to extend the cooperation. The entering the market
main driver was the need to better understand wind • Review current standards and recom-
turbine operation in the cold climates and also to mendations from the cold climate point of
gain benefit from the results of the national projects view and identify possible needs for updates.
that were launched during the first three years. A Possibly recommend updates to standards
continuation of Task 19 was approved by the ExCo that include comments from planners and
in autumn 2005. The work of the second term be- operators
gan in 2006 and will continue through 2008. Table
1 lists the participating countries in 2006.

Table 1 Countries participating in Task 19 during 2006


Country Institution
Canada Natural Resources Canada
Finland VTT Technical Research Centre of Finland (Operating Agent)
Germany ISET
Italy University of Trento
Norway Kjeller Vindteknikk
Switzerland ENCO (for Swiss Federal Office of Energy)
USA NREL

IEA Wind Energy 43


Implementing Agreement

Figure 1 Location of selected cold climate sites that experience cold climate conditions
annually

• Find and recommend a method to esti- dition to financial support for the Operating Agent,
mate the effects of ice on production. A better participants supply information and attend task
method would reduce incorrect estimates and meetings.
therefore the economic risks that are involved Participants of the Task 19 are active in sev-
in cold climate wind energy projects current- eral international projects and co-operations. Some
ly. Verify the method on the basis of data from take part to the European Union funded COST727
national projects as possible action, which aims at improving the European-wide
• Clarify the significance of extra loading ice measurement network and forecasting atmo-
that ice and cold climate induce on wind tur- spheric icing. This information benefits directly the
bine components and disseminate the results work of the Task 19.
• Perform a market survey for cold climate The co-operation will continue to dissemi-
wind technology, including wind farms, re- nate actively the results through the Internet page of
mote grid systems, and stand-alone systems the Task 19 (http://arcticwind .vtt.fi) and in confer-
• Defi ne recommended limits for the use of ences and seminars (2–6). At the end of the current
standard technology (site classification) task period (2008), a final report will be published
• Update the Task 19 state-of-the-art report that contains updated state-of-the-art of technology
and update the expert group study on applying and updated recommendations regarding the use of
wind energy in cold climates to guidelines. wind turbines at sites where winter conditions pre-
vail significant amount of a year.
The national activities of task participants One important dimension of this work will
are designed to provide new information on issues be the initiation of conversation about whether cold
that are preventing cold climate development today. climate issues should be recognized in future stan-
The results of these activities will enable improve- dards that set the limits for turbine design.
ments of the overall economy of wind energy proj-
ects and lower the risks involved in areas where low 3.0 Progress in 2006
temperatures and atmospheric icing are frequent.
The reduced risk would thereby reduce the cost of In the two meetings organized by Task 19,
wind electricity produced in cold climates (Figures the second term of the task was planned in detail.
2 and 3). National activities in the participating countries
The participants have agreed to a cost-shared were presented. The ongoing and planned national
and task-shared arrangement to carry out specific activities, which contribute to the objectives of Task
activities necessary to achieve the objectives. In ad- 19 include:

44 2006 Annual Report


Task 19

• Characterization of icing, wind speed, air The cold climate related requirements in the
temperature, duration, correlation includ- present IEC61400-standards will be reviewed in
ing sensor comparison and testing in test sites order prepare a set of recommendations to be pre-
in eastern Canada, Finland, Norway, and sented to IEC TC88.
Switzerland Towards the end of the task it was agreed that
• Development of meso-scale modeling the results will be disseminated to interested utilities
for icing risk (Norway with test data from and operators in specific seminars.
Finland)
• Collection of operational experience from 4.0 Plans for 2007 and beyond
turbines operating in cold climates (Finland,
Germany, Switzerland, and the United States) The Task 19 activities for the year 2007 pe-
• Modeling of wind turbine performance and riod include:
loading in icing conditions (Finland and Italy) • Review of cold climate issues in present
• Research on the physics of icing and de- IEC-61400 standards and proposals for
icing technologies in an icing wind tunnel continuation
(Canada) • Market study
The project website at http://arcticwind. • Update of the Task 19 State-of-the-Art
vtt.fi has been updated and serves as an extranet Report
among the participants of Task 19. During 2006, the
common efforts towards the end of the task were The activities will solve the most common is-
planned. These include: sues that are causing uncertainty regarding cold cli-
• Cold climate issues in standards mate wind development. These activities are intend-
• Dissemination of the results to utility and ed to match well with the national activities that the
operator interest groups participants have planned for the next two years.
• Market study

Figure 2 Wind turbine within walking distance from a ski lift in Gütsch. Turbine is equipped
with a de-icing system. Photo: ENCO AG, Switzerland.

IEA Wind Energy 45


Implementing Agreement

(2) Cold climate wind energy co-operation under


the IEA, Jonas Wolff, Per Lundsager, Lars Tallhaug,
Göran Ronsten, Ian Baring-Gould, Proceedings of
Boreas V, Levi, Finland, 2000.
(3) The state-of-the-art of wind energy in cold
climates, H. Holttinen, G. Ronsten, L. Tallhaug, P.
Lundsager, R. Horbaty, I. Baring-Gould, A. Lacroix,
E. Peltola, T. Laakso, Proceedings of GWPC, Paris,
France 2002.
(4) IEA co-operation on wind turbines in icing
and cold climates, E. Peltola, T. Laakso, G. Ronsten,
L. Tallhaug, R. Horbaty, I. Baring-Gould, A. Lac-
roix, Proceedings of Boreas VI, Pyhätunturi, Fin-
land, 2003.
(5) Specific recommendations for the develope-
ment of wind energy projects in cold climate, T.
Laakso, E. Peltola, G. Ronsten, L. Tallhaug, R. Hor-
baty, I. Baring-Gould, A. Lacroix, Proceedings of
EWEC, London, UK, 2004.
(6) Specific Recommendations for the Develop-
ment of Wind Energy Projects in Cold Climates, E.
Peltola, T. Laakso, G. Ronsten, L. Tallhaug, R. Hor-
baty, I. Baring-Gould, A. Lacroix, Proceedings of
Boreas VII, Saariselkä, Finland, 2005.
Figure 3 Wind measurements with video moni-
toring of icing in Norway. Photo: Kjeller Vin-
dteknikk, Norway. Authors: Esa Peltola, VTT Processes, Finland and
Timo Laakso, Pöyry Energy, Finland

References:
(1) State-of-the-art of wind energy in cold cli-
mate, T. Laakso, H. Holttinen, G. Ronsten,
L.Tallhaug, R.Horbaty, I. Baring-Gould, A. La-
croix, E. Peltola, B. Tammelin, IEA Wind Annex
XIX, 53 p., 2003, http:\arcticwind.vtt.fi, date of ac-
cess 31.1.2006.

46 2006 Annual Report


Task 20
4

HAWT Aerodynamics And Models From


Wind Tunnel Measurements
1.0 Introduction having high spatial and temporal resolution, for real-
istic rotating blade geometry, under closely matched
Wind energy continues to expand worldwide, Reynolds number conditions, and in the presence of
and wind turbines continue to grow larger. In this strictly controlled inflows. Completed in 2000, the
environment, sustained technological innovation test included 22 turbine configurations, and pro-
will require aerodynamics models of greater accu- duced over 2,100 data files containing nearly 100
racy and reliability. To achieve these goals, theoreti- GB (gigabytes) of high-quality data.
cal and computational models must evolve alongside Shortly after test completion, select data were
high-quality experimental measurements. Over the employed as a reference standard in a blind com-
past decade, turbine aerodynamics instrumentation parison designed to evaluate wind turbine aerody-
and data quality have improved substantially as a re- namics code fidelity and robustness. In this exercise,
sult of efforts like IEA Wind Task XIV, “Field Rotor participants were given the UAE geometry and
Aerodynamics,” and Task XVIII, “Enhanced Field structural properties, and then attempted to predict
Rotor Aerodynamics Database.” aerodynamic response for a modest number of test
In these efforts, turbine sizes and configura- cases representing diverse aerodynamic regimes.
tions were comparable to state-of-the-art turbines, Code comparison participants did not have access to
and recorded aerodynamic phenomena that were the experimental aerodynamics data until well after
representative of operational machines. Although their model predictions were completed and sub-
of high quality, these measurements contained at- mitted to NREL. Represented in the field of models
mospheric inflow fluctuations and anomalies, which were blade element momentum models, prescribed
precluded clear discernment of complex turbine wake models, free wake models, and Navier-Stokes
aerodynamics. Alternatively, wind tunnel experi- codes. Results generally showed unexpectedly large
ments offered steady, uniform inflows capable of re- margins of disagreement between the predicted and
vealing turbine aerodynamic structures and interac- measured data. Notably, no consistent trends were
tions. However, wind tunnel dimensions generally apparent regarding the magnitudes or the directions
restricted turbine size, and left doubt as to whether of these deviations.
data thus acquired were typical of full-scale turbine The need for improved wind turbine aerody-
aerodynamics. namics models is clear, and the potential benefits are
To acquire aerodynamics data representative readily apparent. This research task was established
of full-scale turbines, under conditions of steady to capitalize on high quality experimental aerody-
uniform inflow, the NREL (National Renewable namics data from the NREL UAE wind tunnel test,
Energy Laboratory) UAE (Unsteady Aerodynamics as well as comparable data from other sources. Ap-
Experiment) wind turbine was tested in the NASA propriately analyzed, these data will yield unique
Ames 80 foot by 120 foot (24.4 m by 36.6 m) wind and unprecedented findings regarding turbine aero-
tunnel (Figure 1). This test was designed to provide dynamics. This information can be exploited to for-
accurate and reliable experimental measurements, mulate and validate improved wind turbine aerody-

IEA Wind Energy 47


Implementing Agreement

Figure 1 NREL UAE wake flow visualization in NASA Ames 80 foot by 120
foot wind tunnel

namics models. More accurate, reliable models will 2.2 Participants


improve wind energy machine design, and continue In 2006, eleven organizations representing
the trend toward lower cost wind energy. eight Task 20 member countries are participating in
Task 20. In addition, three organizations from three
2.0 Objectives And Strategy other IEA member countries participate in conjunc-
tion with Task 11 during Joint Action on Aerody-
2.1 Objectives namics meetings.
Task 20 research objectives and work areas • Center for Renewable Energy Systems
are mutually consistent, and structured to transition (CRES), Greece
aerodynamics data to accurate, robust wind tur- • Centro Nacional de Energias Renovables
bine aerodynamics models for machine design and (CENER), Spain
analysis. • Denmark Technical University, Denmark
• Acquire accurate, reliable, high-resolu- • École de Technologie Supérieure, Canada
tion experimental aerodynamic and structural • Energieonderzoek Centrum Nederland
loads data for horizontal axis wind turbines (ECN), The Netherlands
representative of full-scale machines • Gotland University, Sweden
• Analyze these data using methodologies de- • Institutt for Energiteknikk, Norway
signed to reveal the flow physics responsible • Kyushu University, Japan
for phenomena observed on horizontal ax- • National Renewable Energy Laboratory
is turbines (NREL), United States
• Formalize this understanding in hier- • Risø National Laboratory, Denmark
archically structured, physics based model • Royal Institute of Technology, Sweden
subcomponents, with appropriate consider- • Seoul National University, Republic of
ation for computational efficiency Korea
• Integrate model subcomponents into com- • Technical University of Delft, The
prehensive models in incremental fashion, as Netherlands
a basis for accurate, robust prediction of hor- • Kiel University of Applied Sciences,
izontal axis wind turbine aerodynamics and Germany
structural loads.

48 2006 Annual Report


Task 20

2.3 Resources “Renaissance of Vortex Generators,” K. Kai-


In the initial stages of Task 20, data acquired ser, Aero & Structural Dynamics, Germany — In
during the UAE wind tunnel test were hosted on the the past, vortex generators were used to optimize
Unsteady Aerodynamics Experiment (UAE) Data- the power curve of stall regulated turbines running
base website (http://www.nrel.gov/uaewtdata/), at fixed speed. At present, state of the art turbines
which was established and continues to be main- use blade pitch control and variable rotor speed.
tained by NREL. Website access can be obtained However, some current control algorithms allow
by requesting a user account through the Operat- blade angle of attack to vary through a broad range
ing Agent Representative. Currently, nearly 30 user in which aerodynamic performance varies substan-
accounts have been set up, and over 50 users have tially. Vortex generators could be used to optimize
acquired data for diverse applications. If unique data aerodynamic performance of blades, in combination
not available on the website are needed, special ar- with pitch control and variable speed.
rangements can be made with the Operating Agent “Navier-Stokes Computation of Rotor-Tower
Representative. At present, all Task 20 participants Interactions,” F. Zahle, Risø National Laboratory,
have acquired aerodynamic or structural loads data Denmark — A newly implemented overset grid meth-
from the Unsteady Aerodynamics Experiment Da- od was shown to successfully model the interaction
tabase website. They also have carried out any data between the tower wake and rotor on a downwind
verifications or uncertainty analyses considered nec- turbine. At certain flow conditions where the tower
essary in view of the manner in which they intend shedding frequency and the rotor blade passage fre-
to use the data. quency were sufficiently close to being multiples
of each other, vortex lock-in was observed. It was
3.0 Progress In 2006 hypothesized that this phenomenon was responsible
for unexplained high levels of low frequency noise
During 2006, most participants continued observed on downwind turbines (Figure 2).
research activities previously proposed and initiated “Aerodynamic Investigation of Winglets on
under Task 20. In addition, some new activities were Wind Turbine Rotors,” J. Johansen, Risø National
initiated as new researchers joined the task. Research Laboratory, Denmark — The aerodynamic benefits
results were presented and discussed at the Task 20 of adding a winglet to a wind turbine blade were
Annual Progress Meeting, which was hosted at the investigated using computational fluid dynamics.
Kiel University of Applied Sciences, 25–27 April Results showed that adding a winglet increased the
2006. As with the previous three Task 20 meetings force distribution over the outer 0.14R, increasing
held in 2003 through 2005, the 2006 Task 20 meet- power production by 0.6% to 1.4% for wind speeds
ing was conducted in collaboration with the Task higher than 6 m/s, but increasing thrust by 1.0% to
11 Joint Action on Aerodynamics of Wind Turbines 1.6%. A family of geometry configurations was ex-
meeting. amined, and suggested that winglets could deliver
At the April 2006 Task 20 annual meeting, even greater benefits if properly optimized.
researchers representing their respective countries “Experimental and Computational Fluid Me-
reported on work carried out during the preceding chanics at Vattenfall Utveckling,” J. Westin, Vatten-
year. Summarized below are the 13 presentations fall Utveckling AB, and S. Ivanell, Gotland Univer-
given at the 2006 meeting, including titles, authors, sity, Sweden — The Vattenfall Group is now the fifth
and affiliations. largest electricity generator in Europe. It maintains
“Aerodynamics of Darrieus Rotors,” A. P. a corporate research and development center, where
Schaffarczyk, Kiel University of Applied Sciences, computation and testing are used to address tech-
Germany — Previous vertical axis turbine designs nical issues in several disciplines, including fluid
were prone to under-performance and early struc- dynamics. Current fluid dynamics activities do not
ture failure. As interest in vertical axis machines is include wind energy, but a desire exists to expand
renewed, a full spectrum of physics-based, validated in this direction. Participation in IEA Task 11/20
design tools, ranging from theoretical approaches to activities represents a key step in attaining this goal.
CFD models, will be needed. These design tools will “Wake Measurements in ECN’s Wind Tur-
be enabled by fundamental aerodynamic research, bine Test Site,” G. Schepers, Energy Research Cen-
and will play a key role in avoiding errors made in tre of The Netherlands, The Netherlands — ECN’s
early vertical axis turbine designs. Wind Turbine Test Field Wieringermeer (EWTW),
test assets, and data are summarized. The north row

IEA Wind Energy 49


Implementing Agreement

Figure 2 Computed iso-vorticity surfaces for a downwind turbine, showing


rotor and tower wake structures. (F. Zahle, et al., Risø National Laboratory,
Denmark)

consists of five Nordex N80 2.5 MW machines. All “The Near Wake of a Model Rotor: Measure-
are equipped with nacelle sonic anemometers and ments and Modeling,” W. Haans, Delft Technical
other instrumentation, and one is instrumented to University, The Netherlands — An experimental
measure blade root and tower base bending mo- campaign produced a comprehensive and consistent
ments. A 108 m meteorological mast instrumented set of measured data for a model rotor wake. The
at three heights captures wake data from the five near wake was characterized for a range of yawed
N80’s, which are 2.5D to 12.8D upstream of the flow conditions, including the baseline axisymmet-
mast, depending on wind direction. Diverse data for ric condition. Data included rotor thrust, tip vortex
turbine operation have been acquired and analyzed. trajectory, phase locked mean velocities, and dy-
“Wind Turbine Wake Subject to Thermally namic stall locations, but did not include blade loads.
Stratified Atmospheric Boundary Layer,” C. Mas- These data have been modeled with an actuator line
son, École de Technologie Supérieure, Canada code. Initial comparisons are promising, and will
— This work is concerned with the behavior of wind improve understanding of near wake aerodynamics
turbine wakes under the influence of various ther- under yawed conditions (Figure 3).
mal stratifications of the atmospheric boundary lay- “Actuator Line Computations on Wakes of
er. Specifically, a numerical model is formulated to Wind Turbines in Wind Farms,” N. Troldborg,
simulate turbine aerodynamics, including the wake, Denmark Technical University, Denmark — Wake
in an atmospheric boundary layer under varying dynamics of a single wind turbine and three tur-
thermal stratifications. This model represents the bines aligned in a row are compared, using a 3-D
rotor as an actuator disk and exerts blade influences Navier-Stokes method combined with an actuator
on the flow via blade element theory. Incompress- line technique. Computations for the single turbine
ible 3-D RANS is employed to compute the wake exhibit low frequency wake fluctuations, and show
flow field, using a modified k- ε model. that blade tip vortices may be preserved several ro-

50 2006 Annual Report


Task 20

tor diameters downstream. Results for the three duced under 2-D conditions. Detailed analyses of
turbine row demonstrate that tip and root vortices segment lift showed a possible offset in inflow angle
from downstream turbines dissipate near the rotor. at the 47% and 63% span locations, probably caused
Results also show that placing turbines too densely by flow probe measurements.
can significantly reduce power. “Identification of Flow Structures on a Rotat-
“Towards the Optimal Loaded Actuator ing Blade Using the NREL UAE Phase VI Data and
Disc,” R. Mikkelsen, Denmark Technical Univer- Frequency Analysis,” A. Gonzales and X. Mundu-
sity, Denmark — The optimally loaded actuator disc ate, Centro Nacional de Energías Renovables, Spain
was considered, including tangential velocities load- — Data acquired by the UAE Phase VI wind tur-
ed to give constant axial induction. Instead of BEM bine under parked and zero yaw rotating conditions
theory, analyses were done with a vortex model and were compared to ascertain the effects of rotation on
a Navier-Stokes method. The computed axial load- blade aerodynamics. Data employed in the compari-
ings were found to increase toward the root section. son consisted of local inflow angles, surface pressure
The analytic solution reveals that the increase is due distributions, and force coefficient data, all of which
to the low wake pressure caused by centrifugal accel- were studied at multiple radial locations. For both
eration of increasing tangential velocities at inboard parked and rotating conditions, trailing and leading
radii. Some local Cp levels exceeded the Betz limit, edge separation movement were tracked with respect
but integration over the disc yielded Cp consistent to incidence angle, and pronounced flow field modi-
with Betz. fications were observed in response to rotation.
“The Steady State Parked Configurations,” R. “Unsteadiness in Rotationally Augmented
van Rooij, Delft Technical University, The Nether- Blade Flow Fields,” S. Schreck, National Renew-
lands — NREL UAE lift and drag data at high angles able Energy Laboratory, United States — Means,
of attack for parked blade conditions were analyzed, standard deviations, and spectral decompositions
with these 3-D data being compared to data that were computed from time records of UAE Phase
would be obtained under 2-D conditions. Lift and VI surface pressure coefficient and sectional nor-
drag characteristics at five span locations (30%, mal force. These data were correlated with separa-
47%, 63%, 80% and 95%) showed that 3-D loads in tion/impingement movement data from previous
parked condition were different than would be pro- work. While separated flow fields were steady or
pseudo-steady, rotationally augmented flow fields
were found to be substantially unsteady. Magnitude
and spectral content of time variation in rotationally
augmented flow fields changed significantly with
wind speed and radial location.

4.0 Plans For 2007

The 2007 Annual Progress Meeting will be


the fifth and final meeting for Task 20, and will be
held at Denmark’s Risø National Laboratory on
June 14-15. As in previous years, the Task 20 meet-
ing will be held in collaboration with the Task 11
Joint Action on Aerodynamics of Wind Turbines
meeting.
Following this final technical progress meet-
ing, the participants will spend six months docu-
menting their Task 20 research. It is anticipated that
the Task 20 final report will be delivered to the IEA
Wind Secretary near the end of 2007.

Author: Scott Schreck, NREL’s National Wind


Figure 3 Standard deviation contours of measured
Technology Center, United States
near wake velocity. (W. Haans, et al., Delft Uni-
versity of Technology, The Netherlands)

IEA Wind Energy 51


Implementing Agreement

52 2006 Annual Report


Task 21
5

Dynamic Models of Wind Farms for


Power Systems Studies
1.0 Introduction for use in combination with software packages for
simulation and analysis of power system stability.
Large wind power installations may have a sig- The effort comprises the following immediate ob-
nificant impact on power system stability that must jectives and activities:
be assessed prior to installation. Such assessment is
commonly conducted using commercially available • Establish an international forum for ex-
software packages for simulation and analysis of changing knowledge and experience within
power systems. These packages normally facilitate a the field of wind farm modelling for power
set of well-developed models of conventional com- system studies
ponents such as fossil-fuel-fired power stations and • Develop, describe, and validate wind farm
transmission network components. However, mod- models (The wind farm models are devel-
els of wind turbines or wind farms represent new oped by the individual participants of the task,
features with, in many cases, unknown accuracy. whereas the description and validation are co-
This at best leads to uncertainty in the market, and ordinated by the task, which helps provide
at worst it leads to an erroneous design jeopardising state-of-the-art models and pinpoint key issues
the power system stability. for further development.)
The challenge is twofold. First, the technol- • Set-up and operate a common database for
ogy in modern wind farms is fairly complex, and benchmark testing of wind turbine and wind
the dynamic behavior of these wind farms may farm models as an aid for securing good-qual-
differ significantly depending on the wind turbine ity models.
type and manufacturer-specific technical solutions.
Second, model validation must be transparent and 3.0 Status
adequate for providing confidence. Thus, for a co-
ordinated effort aiming to enhance progress, Task Task 21 has participants from nine countries
21 under the IEA Wind Agreement was proposed (Denmark, Finland, Ireland, the Netherlands, Nor-
and approved in April 2002 with SINTEF Energy way, Portugal, Sweden, the United Kingdom, and
Research of Norway as the Operating Agent. the United States). In these countries, research insti-
tutes and universities carrying out work to develop
2.0 Means And Objectives and test wind farm models. They also perform grid
studies in cooperation with wind turbine manufac-
Task 21 is carried out on a cost- and task- turers and electric utilities. In total, participants of
shared basis. The participants contribute with finan- the task are expected to contribute more than 20
cial support to the Operating Agent and they carry person-years of work effort.
out activities, supply information, and join meetings Cooperation within the task comes from shar-
as required to meet the task objectives. ing measurement data, model descriptions, and dis-
The overall objective is to assist the planning cussions at meetings. A total of eight task meetings
and design of wind farms by facilitating a coordi- have been arranged. In 2006, a meeting was held in
nated effort to develop wind farm models suitable Athens, Greece at the venue of the European Wind

IEA Wind Energy 53


Implementing Agreement

Energy Conference. A workshop dedicated to Task developed by the task participants have been tested.
21 was organized as part of this conference with pre- The tests include both validation against measure-
sentations by all participants of the task. This proved ments and model-to-model comparisons. They con-
to be an excellent opportunity for disseminating re- sider dynamic operation during normal, fault-free
sults and getting feedback for final reporting. Con- conditions and response to voltage dips. See Figures
tinuous communication for preparing the Task 21 1 and 2 for examples of measurements and simula-
final report is by e-mail and phone. tions of response to voltage dips. In total, more than
Model developments are ongoing among 10 models have been tested, including models of
participants. They include both fixed- and variable- both fixed-speed and variable-speed wind turbines.
speed technologies and use various software tools A topic of high interest is the ability of wind
(Matlab/Simulink, PSS/E, SIMPOW, DIgSILENT turbines to ride through temporary grid faults. If
and EMTDC). they can ride through faults they will contribute to
An Internet “e-room” has been established for grid stability. Detailed numerical models may be
sharing documents and measurement data among used to assess such abilities, but these models must
the participants of the task. The database part of the be validated against measurements to provide confi-
e-room contains measurements mainly from fixed- dence. A proposal emerging as a spin-off from Task
speed wind turbines, but also a small collection of 21 is to update IEC 61400-21 (Measurements and
measurements from variable speed wind turbines is assessment of power quality characteristics of grid
included. connected wind turbines, ed. 1, 2001) to specify re-
A method for benchmark testing of models quirements for such testing. This work will continue
has been established by the task, and selected models in 2007, and a Committee Draft for Voting of IEC

Figure 1 Time-series plot of measured and simulated active power output


from a fixed-speed, stall-controlled wind turbine with squirrel-cage induc-
tion generator during a voltage dip on the grid. M is measurement, A and B
are simulations.

Figure 2 Time-series plot of measured and simulated active power


output from a variable speed wind turbine with doubly-fed induction
generator during a voltage dip on the grid. M is measurement,
I and J are simulations.

54 2006 Annual Report


Task 21

61400-21, ed. 2 was prepared at the end of 2006. atic comparison of wind generation models against
Hence, in the future, wind turbine manufacturers measurements. The test results give a clear indica-
may refer to standard test certificates for demonstrat- tion of accuracy and usability of the models tested,
ing performance under grid transients. These same and pin-point the need for both model development
test certificates may be used for validating dynamic and testing.
models of wind farms for power system studies. Additional information about Task 21 can be
The work of Task 21 including description of found on the Internet at http://www.energy.sintef.
the benchmark test procedure and presentation of no/wind/IEA.asp.
test results provide for a significant technical con-
tribution. The task is the first to present a system- Author: John Olav Tande, SINTEF Energy Re-

IEA Wind Energy 55


Implementing Agreement

56 2006 Annual Report


Task 23
6

Offshore Wind Energy Technology Development


1.0 Introduction shore wind farms can be closer to coastal cities with
relative shorter transmission lines, yet far enough
Installing wind turbines offshore has a num- away to reduce visual and noise impacts.
ber of advantages compared to onshore development. Good wind resource, proximity to load cen-
Onshore, difficulties in transporting large compo- ters, and expansion of development areas are some
nents and opposition due to various siting issues, of the reasons why development of offshore wind
such as visual and noise impacts, can limit the num- energy is moving forward. By the close of 2006,
ber of acceptable locations for wind parks. Offshore there were 927 MW of offshore wind power op-
locations can take advantage of the high capacity of erating in Denmark, Germany, Ireland, Japan, the
marine shipping and handling equipment, which far Netherlands, Sweden, and United Kingdom. Fig-
exceeds the lifting requirements for multi-mega- ure 1 shows how the current capacity is distributed
watt wind turbines. In addition, the winds tend to among the European countries. China, Finland,
blow faster and smoother at sea than on land yield- Germany, Italy, Norway, Republic of Korea, Spain,
ing more electricity generation per square meter of and the United States all have plans to install their
swept rotor area. On shore, larger wind farms tend first offshore wind farms within this decade.
to be in somewhat remote areas, so electricity must Challenges for offshore development include
be transmitted over long power lines to cities. Off- higher initial investment costs for large machines,
sub-sea cables to shore, and more difficult access
to the turbines resulting in higher maintenance
costs. Also, the environmental conditions due to salt
water and additional loads from waves and ice are
more severe at sea and nature protection issues are
different.
Despite the difficulties of development, off-
shore turbines hold great promise for expanding
wind generation capacity. In Europe, the space avail-
able for offshore wind turbines in many countries is
larger than onshore. For example, in the Netherlands
roughly 3 GW of wind power could be installed in
areas available outside the 12-mile zone (about 22
km) with a water depth of less than 20 m. The Neth-
erlands shares this advantage of shallow water with
countries such as Belgium, Denmark, Germany, and
the United Kingdom.
Recognizing the interest and challenges of
Figure 1 Offshore wind projects installed through offshore development of wind energy, IEA Wind
2006, based on a total of 927 MW Task 11 sponsored a Topical Experts Meeting (TEM

IEA Wind Energy 57


Implementing Agreement

43) on Critical Issues Regarding Offshore Technol- from these workshops that opening vast windy areas
ogy and Deployment in March 2004 in Denmark. of deep-water ocean for electric power generation
The meeting gathered 18 participants, representing will require development of new technologies and
Denmark, Finland, the Netherlands, Sweden, the strategies. Work is underway in many countries to
United Kingdom, and the United States. Presenta- address the many issues surrounding wind develop-
tions covered both detailed research topics and more ment offshore. Both of these meetings on aspects of
general descriptions of current situations in Den- offshore development recommended the IEA Wind
mark, Finland, the Netherlands, UK, and the US. Implementing Agreement as a framework for shar-
In addition to challenges relevant to all off- ing information on these activities.
shore development, it became clear that some na- In May 2004, the IEA Wind ExCo approved
tions with long coastlines but without shallow seas Annex 23 to the Implementing Agreement, as a
within their continental shelf were interested in ex- framework for holding focused workshops and de-
ploring technology relating to installing wind tur- veloping research tasks directed at understanding
bines in deeper water. EU countries such as Ireland, issues and developing technologies to advance the
Italy, Portugal, and Spain have a relatively small development of wind energy systems offshore.
sea area with water depths less than 30 m. Coun- The task activities are now underway and
tries outside the EU like Brazil, China, Japan, and eight countries have joined as shown in Table 1.
the United States also have high potential for wind Several additional countries are still considering
power development in deeper waters. joining. Each country may have several participat-
In October 2003, and again in October ing organizations for a single membership fee; more
2004, workshops on deep-water technologies were participating organizations will lead to more robust
held in Washington, D.C. with participants from results. It is the responsibility of each country to de-
the US, Europe, and Asia (See: http://www.nrel. termine how the cost of membership is distributed
gov/wind_meetings/offshore_wind/). It was clear among the individual organizations.

Table 1 Participating countries and organizations in Task 23


Country Membership Status/ Organization
Contracting Party
Denmark (OA) Committed/RISØ National Laboratory • RISØ National Laboratory
• Vestas
• Siemens
• Elsam
•Carl Bro
• DNV
Germany Committed/Ministry for Environment, Nature Concervation • University of Stuttgart
and Nuclear Safety. • GE Energy
• GL Windenergie
Netherlands Commitment/Wea@sea • Wea@sea
• ECN
Norway Committed/Enova SF • NTNU-BAT
Republic of Korea Commitment/ • KEMCO
Sweden Commitment/Chalmers • Chalmers
United Kingdom Committed/ • Garrad Hassan
Department of Trade and Industry • Ceasa
United States (OA) Committed/ • NREL
US Department of Energy • MIT
• University of Massachusetts
• GE Energy

58 2006 Annual Report


Task 23

2.0 Objectives and Strategy and the Research Area 3: External Conditions, Lay-
outs and Design of Offshore Wind Farms.
The overall objectives of Task 23 include:
• Conduct R&D activities of common 3.1.1 Research Area 1: Ecological
interest to participants to reduce costs and un- Issues and Regulations
certainties The first workshop for Research Area 1 Eco-
• Identify joint research tasks among inter- logical Issues and Regulations was planned to be
ested countries based on the issues identified hosted by the Netherlands sometime in 2006. How-
at the TEM 43 on Critical Issues Regarding ever, a delay has set back plans to organize workshop
Offshore Technology and Deployment and identify activities.
• Organize workshops on critical research ar-
eas for offshore wind deployment. The goal The following basic areas for potential col-
of the workshops is to identify R&D needs of laboration will be discussed at the first workshop:
interest to participating countries, publish pro- • Baseline data and research methods
ceedings, and conduct joint research activities • Develop methods to share baseline data and
for the Annex participants. research methods for pre- and post-construc-
tion studies
This task has been organized as two subtasks • Impacts on the environment (assessment
with Risø National Laboratory (Risø) in Denmark criteria)
and the National Renewable Energy Laboratory • Summarize preliminary conclusions from
(NREL) in the United States serving as joint operat- environmental impact assessments among na-
ing agents, each leading one subtask. tions that have offshore facilities. This area is
Subtask One “Experience with Critical De- similar to one of the objectives of Concerted
ployment Issues” is lead by Risø and Subtask Two action for Offshore wind energy Deployment
“Research for Deeper Water” is led by NREL. The (COD)
Task 23 structure showing the Research Areas with • Evaluate potential cumulative effects to the
respect to the subtask is shown below in Figure 2. marine ecology
• Compare methodologies and preliminary
3.0 Progress In 2006 conclusions from avian and mammal surveys
• Permitting process
3.1 Subtask One: Experience with • Evaluate streamlining of planning and ap-
Critical Deployment Issues proval procedures
The work in subtask one has been divided • Educate the regulators and facilitate inter-
into three research areas. Workshops have been held agency cooperation
for the Research Area 2: Electric System Integration

Figure 2 Annex XXIII organizational flow chart

IEA Wind Energy 59


Implementing Agreement

• Pre- and post-construction monitoring of survey and data collection is shown below. The proj-
operating wind facilities ects for collaboration between member countries
• Public (stakeholder) involvement and ac- will continue to be coordinated at the workshops
ceptance mentioned above.
• Decommissioning processes and proce-
dures. 3.1.3 Research Area 3: External Conditions, Layouts
and Design of Offshore Wind Farms
3.1.2 Research Area 2: Electric System Integration The first workshop for Research Area 3 Ex-
At the first workshop at Manchester Univer- ternal Conditions, Layouts and Design of Off shore
sity, UK on 12–13 September 2005 it was decided to Wind Farms was held on 12–13 December
focus the work program on five issues covering sub- 2005 at RISØ National Laboratory. The workshop
jects related to connection of Offshore Wind Farms covered the topics #1 and #5 previously defined in
to Onshore Grids. These are: the annex text. At the workshop, three important
• Off shore wind meteorology and impact on issues were identified to be included in the future
power fluctuations and wind forecasting work program for External Conditions, Layouts,
• Behavior and modelling of high-voltage ca- and Design of Off shore Wind Farms: wake model-
ble systems ling and benchmarking of models; marine boundary
• Grid Code and security standards for off- layer characteristics; and met-ocean data and loads.
shore versus onshore Regarding wake modelling and benchmark-
• Control and communication systems of ing of models several activities took place in 2006
large offshore wind farms and are planned for 2007. A workshop held at the
• Technical architecture of off shore grid sys- Danish Test Station for large wind turbines, Høvsøre
tems and enabling technologies. and Billund in Jutland, Denmark indicated a great
need for further collaboration and exchange of data
In 2006, a planning meeting was held at Risø to develop and verify computational models and to
on 16 August and a consensus was reached to orga- understand the physics of wakes and meteorologi-
nize three meetings: two in 2007 and one in 2008. cal backgrounds. The EU R&D project UPWIND
The five original issues would be work items for the includes similar activities and coordination activi-
three meetings. However, following the meetings, ties will take place between the members of IEA
the need may appear to organize additional work- Wind Task 23 and partners of UPWIND. A format
shops and meetings on modified subjects as com- has been agreed to for collecting and benchmark-
pared with those in the workshop plan (Table 2). ing data related to offshore wind farms and onshore
At the working group meeting, participants farms in cases when it is considered relevant. The
specified the national projects that would supply in- format will be suggested to the participants in the
formation as part of the IEA Wind Task 23 collabo- workshop and member countries of Task 23. The
ration (Table3). Initial project data collected show collaboration will be focussed on data which are
many interesting member country projects that will important for power calculations as well as design
be included in the collaboration. A format for the loads. During 2007, the benchmarking experience

Table 2 Workshop plan - Electrical System Integration


Category (issue) Work item Who takes the Action
initiative
IA Technical UK Workshop early
architecture 2007
IB Grid codes
II A Offshore Denmark Workshop late
meteorology and 2007
electrical power
II B Connection and
control system
III Transient Netherlands Workshop in 2008
behaviour

60 2006 Annual Report


Task 23

Table 3 Collaboration projects: Offshore Wind Farms to Onshore Grids


Project title Description Category (issue Period, value
per Table 1) (USD), effort,
country
Handling of sudden disconnection of a Designing a model of a DFIG wind III 2007–2008
DFIG wind turbine cluster feeder and turbine with ride through system; IA 210,000
its reconnection comparing with measurements 2Ω person-year
Sweden
Analysis of wind park high-frequency Modelling of transients in offshore III 2007–2008
electrical transients turbine and transmission system IA 210,000
2Ω person-year
Sweden
DC/DC-converters in wind farms Identifying the most cost effective II B 2005–2007
converter design, construction and test III 210,000
of ea prototype 2Ω person-year
Sweden
Study on the development of the Assessing costs of offshore connection IA 2004–2005
offshore grid for connection of Round of farms Thames Estuary, Greater Wash, 65,000
II farms and off coast North West of England 5 person-month
UK
Methodology for the Development Economically efficient offshore networks IB 2006
of Network Design Standards for are designed and proves to be very 260,000
Offshore Transmission Networks different to onshore cabling 20 person-month
UK
Grid integration options for offshore Analysis of design of offshore grid IA 2006
wind farms networks based on a cost-benefit 25,000
methodology. Radial designs are 3 person-month
suggested UK
Grid codes for offshore grids Investigation of appropriate grid code IB 2007–2008
requirements offshore, assessment of 130,000
influences and needs for consistency 1Ω person-year
with onshore networks UK
Switching transients and harmonics in Investigation of faults, switching III 2008
offshore networks transients and harmonics from long 130,000
lengths of EHV cable offshore 1Ω person-year
UK
Power fluctuations of large offshore Development of simulation models for II A 2005–2007
wind farms offshore wind farms as a planning tool 525,000
for calculating the regulating power and 3 person-year
ramp capability necessary in the grid Denmark
system
Meso-scale meteorology Providing improved predictability of II A 2007-2010
short term power variations due to local 395,000
wind speed variability (time and spatial 2Ω person-year
scales 10–30 minutes and 2–20 km, Denmark
respectively

and the results obtained from the continued collabo- Regarding marine boundary layer character-
ration, also with UPWIND, will be analysed and istics and met-ocean data and loads, Task 23 collabo-
discussed at a second workshop planned for the fall rated with Task 11 to plan a topical expert meeting
of 2007. (TEM) for January 2007. The meeting will concern

IEA Wind Energy 61


Implementing Agreement

the State of the art of Remote Wind Speed Sensing collaboration, periodic Internet meetings have been
Techniques using Sodar, Lidar and Satellites. These established as the main form of collaboration with
are very important techniques to explore bound- several fac-to-face meetings scheduled at key points
ary layer characteristics and offshore loads to wind in the project. To help with exchanging informa-
turbines. Another Task 23 meeting will be held in tion, an IEA web site has been set up for the subtask
Berlin in February 2007 together with a German (http://www.ieawind.org/Annex%20XXIII/Sub-
Offshore Conference and the EU policy seminar on task2.html). A complete project plan can be found
offshore wind. on this web site. Parts of this website are only avail-
For Research Area 3, work programs will in- able to members.
clude the following activities. For wake modelling Currently conservative offshore design prac-
and benchmarking of models, a second workshop tices adopted from marine industries are enabling
will be organized late in 2007 focusing on power offshore development to proceed, but if offshore
calculations and design tools. Also, a format will be wind energy is to be economical, reserve margins
developed for collecting and benchmarking offshore must be quantified and uncertainties in the design
data and a format will be developed for onshore data process must be reduced so that appropriate margins
when judged necessary. For marine boundary layer can be applied. Uncertainties associated with load
characteristics and met-ocean data and loads, new prediction are usually the largest source and hence
collaboration initiatives will be taken. A significant the largest risk. Model comparisons are the first step
research area dealing with operation and mainte- in quantifying and reducing load prediction uncer-
nance issues offshore was also considered as a high tainties. Thus the OC 3 group has identified the fol-
priority topic but a workshop for this area has not yet lowing objectives.
been planned. • Identify and verify model capabilities and
limitations
3.2 Subtask Two: Research for Deeper Water • Establish confidence in predictive capabil-
Subtask 2 was oritinally intended to focus on ities
technical issues associated with deeper water impli- • Establish analysis methodologies
mentation of offshore wind energy. To maximize • Identify areas needing further research and
the benefit to the research community and to take testing
advantage of experience with current turbine mod-
eling efforts in shallow water, it was decided to in- This project should address near-term needs
clude both shallow and deepwater modeling in the of the industry as well as future needs. Currently
subtask. Uncertainties associated with load predic- the industry is focused on bottom-fixed shallow-
tion increase the risk for offshore machines, and the water applications, especially in Europe where shal-
development of accurate dynamic models for load low water sites are plentiful. Deeper water sites are
prediction is the best way to reduce these uncer- more common in Greece, Japan, Norway, the Re-
tainties. Participants have compared assumptions, public of Korea, Spain, the United States and many
model fidelity, and the results of model outputs for other countries. This project should include support
controlled cases determined by the group. Through structures that are likely to become solutions for
this type of rigorous sharing and subsequent valida- these markets also. The scope of this collaboration
tion efforts, offshore researchers will accelerate the includes technologies ranging from the current shal-
development of codes for modeling a wide range of low-bottom monopiles to deep-water floating plat-
offshore wind turbine systems. forms. The scope includes:
This task has included modeling of shallow • Water Depth: 5 m to greater than 200 m
water and deep water since many of the modeling is- • Support structures: monopiles to floating
sues are similar and it is important to benchmark the • Wave loading models: linear and non-lin-
codes for shallow water where there is some experi- ear (breaking)
ence. The official name of this working group is the • Uncoupled and coupled dynamic mod-
Offshore Code Comparison Collaboration (OC 3). els: FAST, ADAMS, BLADED, HAWC,
The group is led by researchers at NREL’s National HAWC2, BHAWC and FLEX5 (as modified
Wind Technology Center in the United States. by Vestas, Elsam & Stuttgart)
This group is focused on benchmarking struc- • Not included: aerodynamic models, tur-
tural dynamics models used for estimating offshore bulence models, various turbine types, and
dynamic loads. Because this effort requires intense controls.

62 2006 Annual Report


Task 23

Figure 3 Strategies for offshore wind installation on land and in various


water depths

A multiphase project has been outlined in a • The United States has completed prelim-
project work plan. The first phase would be strictly inary modeling of a floating platform under
analytical with the goal of verifying the analytical dynamic wave and turbulence loading.
capabilities and differences of the codes of the par- • Floating platform modeling is scheduled for
ticipants. The second and third phases would com- completion by fall of 2007.
pare codes with various support structures and foun-
dation models respectively. 3.2.2 Early Benefits
The OC 3 baseline turbine model has been
3.2.1 Project Status adopted by two major UPWIND Work Package
• There have been five face-to-face meetings: teams as their aerodynamics and foundation model-
Denmark 1/05, Trondheim 6/05, Denmark ing research work. Also the code comparison work
10/05, Pittsburg 6/06, and Stuttgart 1/07. to date has established a procedure and database that
• There have been multiple Internet meet- could be used for future code verification exercises
ings. These net meetings continue to be such as the one outlined in UPWIND Work Pack-
productive and significantly reduce the need age WP 1A1, Integrated Design Approach and Stan-
for travel. dards. This Work Package calls for the development
• All participants have completed and tested of a reference turbine as well as procedures for veri-
their baseline turbine models. fying models and codes. OC 3 has provided a basis
• Wave and turbulence inputs have been run. for both of these goals.
• Foundation models have been defi ned and
modeled. 4.0 Plans For 2007 And Beyond
• Dynamic response comparisons for full
wave loading on a monopile support structure Task 23 will continue for four years begin-
is complete. ning October 2005. The plans for 2007 within each
• Foundation models have been compared area are described above. The task may be extended
under wave/turbulence dynamic loading. for such additional periods as determined by two or
• Tripod support structure modeling and more participants, with approval from the ExCo.
comparisons have begun and should be com-
plete by June 2007. Authors: Jørgen Lemming, Risø National Labora-
tory, Denmark and Walter Musial and Sandy But-
terfield, NREL, United States.

IEA Wind Energy 63


Implementing Agreement

64 2006 Annual Report


Task 24
7

Integration of Wind and Hydropower Systems


1.0 Introduction The specific objectives of the Task are:
• To establish an international forum for ex-
Within IEA Wind member countries, there change of knowledge, ideas, and experiences
is about 450 GW of hydropower capacity and ap- related to the integration of wind and hydro-
proximately 62 GW of wind power capacity. Sev- power technologies within electricity supply
eral of the member countries are pursuing integrat- systems
ing these two renewable resources for the benefit • To share information among participating
of consumers and the electrical generation system. members concerning grid integration; trans-
Attendees at an IEA Wind Topical Experts Meet- mission issues; hydrological and hydropower
ing in 2003 expressed the desire for conducting co- impacts; markets and economics; and simpli-
operative research on the integration of wind and fied modeling techniques
hydropower technologies under the auspices of the • To identify technically and economically
IEA Wind agreement. In response, a proposal for feasible system configurations for integrating
Task 24 Integration of Wind and Hydropower Sys- wind and hydropower, including the effects of
tems was approved by the ExCo in May 2004. This market structure on wind-hydro system eco-
cooperative research effort, which will operate for nomics with the intention of identifying the
four years, ending in May 2008, offers participating most effective market structures
organizations a way to multiply the experience and • To document case studies pertaining to
knowledge gained from individual efforts. This is wind and hydropower integration, and create
particularly important since there are many differ- an Internet report library.
ent hydro system configurations, in many different
electricity markets. In addition, the IEA Wind Task The outcomes of the work conducted under
24 works in cooperation with the IEA Hydropower Task 24 include:
Implementing Agreement, which is investigating in-
tegration of hydropower and wind through a com- • The identification of practical wind/hydro
plementary set of investigations. system configurations
• A consistent method of studying the tech-
Task 24 has two primary purposes: nical and economic feasibility of integrating
1) To conduct cooperative research con- wind and hydropower systems
cerning the generation, transmission, and • The ancillary services required by wind en-
economics of integrating wind and hydropow- ergy and the electric system reliability impacts
er systems, and of incorporating various levels of wind energy
into utility grids that include hydro generation
2) To provide a forum for information ex- • An understanding of the costs and benefits
change. of and the barriers and opportunities to inte-
grating wind and hydropower systems

IEA Wind Energy 65


Implementing Agreement

Table 1 Task 24 Member Countries, Contracting Parties, and Participants


Country Contracting Party Participant
Australia Australia Wind Energy Assoc. Hydro Tasmania
Canada Natural Resources Canada Natural Resources Canada
Manitoba Hydro
Finland TEKES National Technology Agency VTT Processes
in Finland
Norway Norwegian Water Resources and Sintef Energy Research
Energy Directorate Statkraft Energy
Sweden Swedish Energy Agency KTH Swedish Institute of Technology
Switzerland Swiss Federal Office of Energy EW Ursern
United States U.S. Department of Energy National Renewable Energy Laboratory
Arizona Power Authority
Bonneville Power Administration
Grant County Public Utility District
GE Global Research
Sacramento Municipal Utility District

• A database of reports describing case stud- ing. Therefore, hydro generators could be ideal for
ies and wind-hydro system analyses conducted balancing wind energy fluctuations or for energy
through cooperative research of the Annex. storage and redelivery. Studying grid integration of
wind energy, particularly on grids with hydropower
2.0 Research Activities resources, will help system operators understand
the potential for integrating wind and hydropower
Participants in Task 24 are listed in Table 1. resources. Each of the seven countries participating
The objectives and outcomes of the Task will be in the annex is planning to contribute at least one
achieved through four types of case studies conduct- case study. Participants of the task are contributing
ed by the participants: grid integration, hydrologic a wide variety of case studies, with some represent-
impact, market and economics, and simplified mod- ing small systems (<1,000 MW peak load), such as
eling of wind-hydro integration potential. While Grant County Public Utility in Washington State,
many case studies may involve all four of these top- USA, to large systems (>35,000 MW peak load)
ics, some studies may only address and share infor- such as Hydro Quebec. There is also a wide variety
mation related to one. Each case study will address of hydropower facilities, with some being essentially
problem formulation and assumptions, analysis tech- run-of-the-river with little storage capacity (a day or
niques, and results. The general nature of each type two), to very large hydro plants with multi-year stor-
of case study, including the countries that intend to age capability. This diversity should allow for a com-
participate is described below. prehensive look at the grid integration scenarios.

2.1 Grid Integration Case Studies 2.2 Hydrologic Impact Case Studies
The wide variety of hydropower installations, Depending on the relative capacities of the
reservoirs, operating constraints, and hydrologic wind and hydropower facilities, integration may
conditions combined with the diverse characteris- necessitate changes in the way hydropower facilities
tics of the numerous electrical grids (balancing ar- operate in order to provide balancing or energy stor-
eas) provide many possible combinations of wind, age. These changes may affect operation, mainte-
hydropower, and balancing areas, and thus, many nance, revenue, water storage, and the ability of the
possible solutions to issues that arise. Hydro genera- hydro facility to meet its primary purposes. Beyond
tors typically have very quick start-up and response these potential changes, integration with wind may
times and may have flexibility in water-release tim- provide benefits to the hydro system related to water

66 2006 Annual Report


Task 24

storage or compliance with environmental regula- Further, an important factor in interpreting the eco-
tions (e.g., fish passage) and create new economic nomic consequences of integrating wind with hydro
opportunities. Without a proper understanding of is the perspective taken by the study: for the overall
the impacts and benefits, it is unlikely that many hy- benefit of the electric customer vs. a single actor in
dro facility operators will be interested in integrat- the market (e.g. a utility, a wind developer, etc.).
ing with wind power. Thus, study of the impacts of
wind integration on hydropower facilities and hy- 2.4 Simplified Modeling of
drological operations to determine the benefits and Wind-Hydro Integration Potential
costs could help pave the way for implementation Simplified methods for approximating the
of wind-hydro projects. Four of the seven countries amount of wind power that can be physically or
participating expect to contribute to these studies economically integrated with existing hydropower
(Australia, Canada, Norway, and the United States). generation should be devised based on the charac-
Examples of hydrological impacts include the effects teristics of the local transmission control area loads,
on meeting fish flow requirements, reservoir levels hydropower facilities, and the wind power resource.
for recreation, irrigation deliveries of water, or other The analysis methods should include only the most
priorities in running a hydro facility that may super- influential operational constraints for hydro and
sede power production. It is worth noting that some electric reliability concerns. The goal is to develop
of the hydropower facilities being considered have a technique to approximate the potential for inte-
these constraints while others do not. grating wind and hydropower without the need to
conduct an in-depth study. However, any simplified
2.3 Market and Economic Case Studies method must still take a “system-wide” perspective,
While grid integration and hydrologic impact with the understanding that wind and hydropower
studies may demonstrate the technical feasibility of interact within a larger grid that includes other gen-
integrating wind and hydropower systems, imple- eration resources. Because of this, it may be more
mentation will depend on the economic feasibility fruitful for some investigators to consider simplified
of a given project. Such economic feasibility will methods that study how much wind can be inte-
depend on the type of electricity market for which grated in a large interconnected grid that includes
the wind-hydro integration project is considered. significant hydropower resources but not to consider
Addressing economic feasibility in the electricity specific hydropower resources. Four of the partici-
market will provide insight into which market types pating countries expect to contribute to the simpli-
are practical for wind-hydro integration, as well as fied modeling (Australia, Finland, Norway, and the
identify the key factors driving the economics. This United States).
understanding may provide opportunities to devise As the breadth of these case studies indicate,
new methods of scheduling and pricing that are ad- integrating wind and hydropower can be quite com-
vantageous to wind-hydro integration and permit plex. Figure 1 provides a conceptual view of the
better utilization of system resources. These market relationships between wind, hydropower, and the
and economic case studies will address the effects transmission control area along with “surrounding”
of today’s market structures on wind-hydro system issues.
economics with the intention of identifying the
most-effective market structures. Economic studies 3.0 Status And Plans
that consider the value of wind energy generation
to the electricity customer during low-hydro years By the end of 2006, three meetings of the
and extended droughts may also be investigated. Be- Task participants had been held. The first was a
cause economic feasibility is germane to integrating kickoff meeting, held in February 2005, at Hoover
wind and hydropower, each participating country Dam near Boulder City, Nevada, United States. At
will contribute to these studies. Initial results of the this meeting, the general work plan for participat-
case studies are consistent with other wind integra- ing countries was defined. The first R&D Meeting
tion studies in that the efficiency and liquidity of was held in conjunction with the IEA Wind ExCo
the electricity market has a large influence on the 56 meeting in Lucerne, Switzerland, in September
economics, frequently dominating all other factors.

IEA Wind Energy 67


Implementing Agreement

2005. Several participants reported on their case and displayed via the World Wide Web. The pur-
studies. The work of the task over these first two pose of this meeting was to discuss the matrix and
years was focused on initiating participant case stud- details of the upcoming R&D meeting #2.
ies and finding how best to collaborate. R&D meeting #2 was held 25–26 September
In defining how to best collaborate, it was 2006, in Launceston, Tasmania (Figure 2). Excellent
seen early that due to the differences in terminol- progress was reported on all case studies. In learn-
ogy and techniques inherent in an international ing of the progress on these projects, it has become
collaboration, that it would be necessary to create a clear that in addressing the expected results defined
consistent framework for formulating problems and in the task work plan that care will need to be taken
presenting results (a “matrix”). Participants also de- in distilling information from the case studies, and
cided that the work of the task should be completed in describing the results in the final report. Another
in close association with a similar task forming as key outcome of the meeting was the enhancement
part of the IEA Hydropower Implementing Agree- of the expected results of Task 24. Additional out-
ment. Thus a joint task or “annex” was created, with comes were added as a result of collaborating with
formal ExCo approval coming during 2006. participants from the IEA Hydropower Implement-
In 2006, two meetings of the task partici- ing Agreement. Beyond case study reports, a path
pants were held. The first was held on-line using a toward completing the final report of the annex was
web meeting tool (Webex), made available through defined. Focused working groups will create content
the U.S. Department of Energy. Through this tool, for each section of the report, roughly correspond-
meeting participants called into a central voice con- ing with the case study categories listed above.
ference, while at the same time being able to view A final “working” version of the matrix was
and manipulate a common presentation accessed adopted at the end of 2006. Each task participant

Figure 1 A conceptual view of the relationships between wind power, hydropower, and the
transmission control area, and the issues surrounding their integration

68 2006 Annual Report


Task 24

Figure 2 Photograph of meeting attendees at the Task 24 R&D Meeting #2 in Lanceston,


Tasmania

will complete a version of the matrix to describe report of the task will be completed in the summer
their case study projects, with submission due in of 2008.
early 2007. This will then facilitate comparing and
reporting the results. It is anticipated that the final Author: Thomas L. Acker, NREL, United States

IEA Wind Energy 69


Implementing Agreement

70 2006 Annual Report


Task 25
8

Design and Operation of Power Systems


with Large Amounts of Wind Power
1.0 Introduction the limits arising from how much can be integrated
at socially and economically acceptable costs. So far
Wind power will introduce more uncertain- the integration of wind power into regional power
ty into operating a power system; it is variable and systems has mainly been studied on a theoretical ba-
partly unpredictable. To meet this challenge, there sis, as wind power penetration is still rather limited
will be need for more flexibility in the power sys- in most countries and power systems. However, al-
tem. How much extra flexibility is needed depends ready some regions (e.g. West Denmark, North of
on the one hand on how much wind power there is Germany, and Galicia in Spain) show a high pen-
and on the other hand how much flexibility exists in etration and have significant practical experience
the power system. with wind integration.
The existing targets for wind power antici- In recent years, several reports have been pub-
pate a quite high penetration of wind power in many lished in many countries investigating the power sys-
countries. It is technically possible to integrate very tem impacts of wind power. However, the results on
large amounts of wind capacity in power systems, the costs of integration differ substantially and com-

Figure 1 Impacts of wind power on power systems, divided in different time


scales and width of area relevant for the studies. Primary reserve is here
denoted for reserves activated in seconds (frequency activated reserve;
regulation) and Secondary reserve for reserves activated in 5–15 minutes
(minute reserve; load following reserve).

IEA Wind Energy 71


Implementing Agreement

parisons are difficult to make due to using different ity and requirements for new network investments,
methodology, data and tools, as well as terminology bottlenecks, cross-border trade and system stability
and metrics in representing the results. Estimating issues. The main emphasis is on the technical op-
the cost of impacts can be too conservative for exam- eration. Costs will be assessed when necessary as a
ple due to lack of sufficient data. An in-depth review basis for comparison. Also technology that supports
of the studies is needed to draw any conclusions on enhanced penetration will be addressed: wind farm
the range of integration costs for wind power. This controls and operating procedures; dynamic line rat-
requires international collaboration. Because system ings; storage; demand side management DSM etc.
impact studies are often the first steps taken towards The task work has started with a state-of-the-
defining wind penetration targets within each coun- art report collecting the knowledge and results so
try, it is important that commonly accepted standard far. The task will end with developing guidelines on
methodologies are applied related to these issues. the recommended methodologies when estimating
the system impacts and the costs of wind power inte-
2.0 Objectives and Strategy gration. Also best practice recommendations will be
formulated on system operation practices and plan-
The ultimate objective is to provide informa- ning methodologies for high wind penetration.
tion to facilitate the highest economically feasible The Annex 25 to the IEA Wind Implement-
wind energy penetration within electricity power ing Agreement was approved at ExCo 56 in Septem-
systems worldwide. This task supports this goal by ber 2005 and will run for three years 2006–2008.
analysing and further developing the methodology Table 1 shows the countries that have officially com-
to assess the impact of wind power on power sys- mitted in 2006. Spain, France, and Australia are still
tems. The Task will establish an international forum considering participating in the task.
for exchange of knowledge and experiences related
to power system operation with large amounts of 3.0 Progress in 2006
wind power. The challenge is to create coherence
between parallel activities with Transmission Sys- The meetings organised by Task 25 have es-
tem Operators other R&D Task work. tablished an international forum for exchange of
The participants will collect and share infor- knowledge and experiences. In the three meetings
mation on the experience gained and the studies organised in 2006, all countries have presented the
made up to and during the task. The case studies national results so far and the work on-going and
will address different aspects of power system op- also the first report gathering the results has been
eration and design: reserve requirements, balancing discussed. Two meetings have been organised in
and generation efficiency, capacity credit of wind conjunction with wind integration workshops: Nor-
power, efficient use of existing transmission capac- dic Wind Power Conference in May in Finland and

Table 1 Countries that have joined Task 25 of IEA Wind


Country Institution
Denmark Risø National Laboratories; Energinet.dk
EWEA European Wind Energy Associations
Finland VTT Technical Research Centre of Finland
Germany ISET; RWE; E.ON Netz
Ireland To be confirmed
Netherlands ECN
Norway SINTEF; Statkraft
Portugal INETI; REN
Sweden KTH
UK Centre for Distributed Generation & Sustainable Electrical Energy
United States NREL; UWIG

72 2006 Annual Report


Task 25

Figure 2 Results from estimates for the increase in balancing and operating costs due to
wind power. The currency conversion used here is 1 € = 0.7 £ and 1 € = 1.3 USD.

Utility Wind Integration Group UWIG fall work- October and EWEA Grid Conference 7–8 Novem-
shop in Oklahoma City, United States. The system ber 2006.
operators of Denmark, Germany, Ireland, and Por- Drawing from the first results of Task 23, Fig-
tugal have joined the meetings. Also the TSO or- ure 2 illustrates the difficulties in comparing the re-
ganisations CIGRE and ETSO have been contacted sults from existing studies. The range for integration
and informed of Task 25 work. In addition to Task costs due to increased balancing needs is large. This
25 overall presentations, case studies from Denmark, is due to different power systems in question, differ-
Finland, Norway, Portugal, Sweden, and the United ent time scales for reserve allocation, and different
States were presented in special sessions for Task 25 methodologies applied in the studies.
in NWPC and in UWIG conferences.
The Task 25 web site has been opened 4.0 Plans for 2007 and beyond
at www.ieawind.org gathering the Task 25 pub-
lications as well as literature related to system The second year, 2007, will see the publica-
integration. tion of the state-of-the-art report in the spring. It
A poster outlining the task objectives and has been agreed with EWEA that a special session
strategy was presented in EWEC’06 conference, for Task 25 will be made for EWEC’2007 in Mi-
March 2006 and Nordic Wind Power Conference lan. National case studies will be worked on; more
NWPC in May, 2006. results will be collected, and work with analysing
A paper collecting experience on wind inte- the results will be continued. The library in the web
gration issues was presented in NWPC, with expe- pages of Task 25 will be complemented and updat-
rience from Denmark, Germany, and Sweden. It was ed. Journal articles from some of the issues in the
further expanded to a journal article with added ex- state-of-the-art report will be written.
perience reported from Ireland and New Mexico in The spring meeting will take place in May
the United States and was submitted to IEEE Trans- in Milan in conjunction with EWEC’2007. A joint
actions on Energy Conversion. meeting with Task 24 Integration of Wind and Hy-
Work on the state-of-the art report started in dropower Systems has been suggested for Norway
spring 2006, analysing the existing results. This re- in fall 2007.
port was the main subject of the two R&D meetings The results will be drawn together during the
in Helsinki and Oklahoma City. A draft version of last year, 2008. Simple rules of thumb stating the
the state-of-the art report was distributed to partici- probable impacts and cost ranges with different lev-
pants in December 2006. els of wind penetration will be sought. Guidelines
The first results were presented at the Global and best practices will be formulated.
Wind Power Conference GWPC2006 18–22 Sep-
tember 2006 and at the fall seminars on wind in- Author: Hannele Holttinen, Operating Agent
tegration: UWIG seminar 24–25 October, Delft Representative, VTT Technical Research Centre of
workshop for offshore and large scale integration 25 Finland, Finland.

IEA Wind Energy 73


Implementing Agreement

74 2006 Annual Report


IEA
9

1.0 Global Renewable country, policy instrument, renewable energy tech-


Energy Markets and Policies nology, renewable energy target, and other criteria.
(Figure 1)
Because of their heavy non-commercial bio- The objective of the database is to provide a
mass use, non-OECD regions emerge as the main platform for enhancing awareness and knowledge of
renewables users, accounting for 78.2% of world renewable energy policies and measures; to provide
total primary energy supply (TPES). On the other basic statistical information on countries’ progress
hand, OECD countries supply only 21.8% of world to date; and to strengthen the capacity of policy
renewables while consuming 49.8% of world TPES. makers and other renewable energy stakeholders to
However, when looking at “new” renewables, develop new policies, according to their strategic en-
OECD countries account for most of the produc- ergy objectives.
tion, producing 86.3% of wind, solar, and tidal en- The database distinguishes among 24 specific
ergy in 2004. policy types. It has now developed to the extent
The principal constraint in advancing re- that some low-level analysis of findings can be car-
newable energy over the last few decades has been ried out. Before a technology is deployed in a given
cost-effectiveness. With the exception of large hy- country’s energy portfolio, extensive research and
dropower, combustible biomass (for heat) and larger development is usually carried out to prove the tech-
geothermal projects (>30 MWe), the average costs nology and if necessary to adapt it to the country’s
of renewable energy are generally not competitive needs and the resources it has available. The corol-
with wholesale electricity and fossil fuel prices. On lary of this is that research and development policies
the other hand, several renewable energy options for are among the first to appear in a policy portfolio.
specific, small-scale applications can now compete Not every country implements such policies how-
in the marketplace, including hot water from solar ever as, after an initial period, the technology need
collectors and electricity from small hydro and other not be developed ‘from scratch’ but can simply be
technologies. imported.
Renewables accounted for almost 18% of Investment incentives appear subsequently as
global electricity production in 2004, after coal technologies leave the fundamental research phase,
(40%) and natural gas (close to 20%), but ahead and prototypes are deployed, followed by the first
of nuclear (16%), and oil (7%) and non-renewable operational plant. Tax measures and incentive tar-
wastes. Almost 90% of electricity generated from iffs represent additional methods of encouraging
renewables comes from hydropower plants while development. In more recent years quota systems
close to 6% comes from combustible renewables have become common, and most recently, tradable
and waste. Geothermal, solar and wind have now certificates.
reached 4.5% of renewable generation.
The IEA has continued to work on the iden- 2.0 Grid integration of renewables
tification and inventory of existing national policies
and measures related to renewable energy. In 2006, As part of the Gleneagles Plan of Action
the IEA expanded its Global Renewable Energy Pol- (GPOA) the IEA has embarked on a comprehensive
icies and Measures Database to include policy and program of work to identify best practice and policy
statistical information on 78 countries. The database options for working towards a “clean, clever, com-
is freely accessible online at http://renewables.iea. petitive, energy future.
org. Visitors can search for information according to

IEA Wind Energy 75


Implementing Agreement

Figure 1 A screen view of the Global Renewable Energy Policies and Measures Database.

The GPOA has the following major program- barriers. The outcomes may be incorporated into a
matic elements: publication on grid integration of renewables. This
• Launched a Dialogue on Climate Change, work may draw together all the findings of research
Clean Energy, and Sustainable Development and workshops into a report on the challenges of in-
with advice on strategies from the IEA and tegrating renewable energy sources into networks
World Bank and optimizing the efficiency of grids.
• Transforming the way we use energy: ap-
pliances, buildings, indicators, industry, and References:
surface transport
• Cleaner fossil fuels: activities in support of Renewables in Global Energy Supply – An IEA
cleaner coal and carbon capture and storage Fact Sheet, IEA/OECD, Paris, January 2007
• Renewable Energy: activities to improve in- Renewables Information 2006, IEA/OECD,
tegration of renewables into electricity grids Paris 2006
• Electricity Grids: role of technology in elec- IEA Global Renewable Energy Policies and Mea-
tricity grids sures Database: http://renewables.iea.org
• Promoting networks for research and devel- Gleneagles Communique:http://www.g8.gov.
opment: activities to support enhanced R&D uk/Files/kFile/PostG8_Gleneagles_Communique.
cooperation. pdf

The IEA Secretariat will organize two topical Author: Nobuyuki Hara, Analyst, Desk Officer for
workshops in 2007 to discuss the role of renewables Renewable Energy Implementing Agreements, Re-
in liberalized electricity markets. The workshops newable Energy Unit, International Energy Agency,
will be aimed at evaluating and promoting means France.
to overcome technical, regulatory, and commercial

76 2006 Annual Report


Australia
10

1.0 Introduction Opinion polling carried out in October 2006


on behalf of Auswind by A. C. Nielsen showed over-
With a huge landmass and some of the stron- whelming acceptance of wind energy by the broader
gest and most consistent winds in the world, Aus- Australian community. Key findings included the
tralia shows enormous wind energy potential. The following:
growth of the industry in the period 2003–2005 • Nine out of 10 Australians are aware of
demonstrated this potential and how quickly it can climate change and concerned about environ-
be tapped when investment conditions are right. mental issues.
A stable and growing economy, established • Seventy-eight percent say Australia should
finance sector, strong manufacturing sector, and in- be a world leader in greenhouse gas reduction.
creasing demand for energy add to the attractiveness • Nearly three out of four Australians rec-
of Australia as a base for businesses related to wind ognize coal-fi red power stations as a major
energy. About one thousand Australians are cur- contributor to climate change.
rently employed by the industry. • Three out of four believe the federal gov-
At the end of 2006, the total installed capacity ernment should do more to support wind
was 817 MW, after a somewhat disappointing year energy to reduce carbon emissions.
during which just 109.2 MW was installed (Figure • Sixty-eight percent are willing to pay more
1). However, developments in the second half of for environmentally friendly energy sources.
2006 created renewed enthusiasm and confidence, • Just 6% say any form of electricity is accept-
to the extent that projects totaling more than 1,500 able as long as the waste can be buried.
MW either received final planning approval or were
confirmed for construction. 2.0 Progress toward national objectives
For operators already established in Australia,
capacity factors above 35% are commonly achieved. 2.1 Industry growth in 2006
At least one wind farm recorded an average capacity For the Australian wind energy industry,
factor of about 50%. Wind farming is becoming an 2006 was a year of consolidation following advances
increasingly attractive option for many landholders made during the previous three to four years thanks
as Australia endures one of the worst droughts in to the boost provided by the federal government’s
recorded history and farm incomes become less de- Mandatory Renewable Energy Target (MRET)
pendable each year. scheme. With MRET all but reaching its target of

Table 1 Key Statistics 2006: Australia


Total installed wind generation 817 MW
New wind generation installed 109.2 MW
Total electrical output from wind 2.505 TWh
Wind generation as % of national electric demand 1.2%
Target: The Mandatory Renewable Energy
Target, 9,500 GWh from renewables
by 2010, has been met. New targets
introduced by state governments:Victoria
– 10% by 2016 New South Wales – 10%
by 2010, 15% by 2020

IEA Wind Energy 77


National Activities

9,500 GWh of renewable energy four years before over the period 2008–2012. The latest projections
its target date of 2010, the industry experienced a were released late in 2006 in a report titled “Track-
considerable slowdown. Attention was largely fo- ing to the Kyoto Target” (www.greenhouse.gov.au/
cused on preparing new projects for implementation projections). The report forecasts Australia’s emis-
once the investment outlook improved. This is pre- sions to be 109% of 1990 levels by 2008–2012.
cisely what happened in the second half of the year When the report was released, Senator Ian
thanks to the announcement of several state-based Campbell, who was environment minister said:
schemes (see Section 4 below), which sparked an “Australia is experiencing strong economic and
almost unprecedented rush of project approvals and employment growth and has a booming resources
commencements. sector. This in turn means emissions levels go up.”
After the addition of 328 MW of capacity in Unfortunately, this has also been coupled with an
2005, just 109.2 MW was added in 2006. However, overall reduction in the proportion of Australia’s
power supplies coming from renewable sources over
capacity is expected to increase sharply in the com-
the past two decades. This latest projection of emis-
ing years, with at least 163 MW predicted to come
sions is lower than the projection of 110% released in
online in 2007 and considerably higher numbers in
2003. However, the decreases measured so far have
the years heading toward 2010.
largely been achieved by reductions in land clearing
Figures in January 2007 show the Australian
rather than by reductions in emissions in other areas
wind energy industry offsetting 3.26 million tonnes
of the economy.
of CO 2 per year (Figure 2), the equivalent of taking The Australian government has committed
752,000 cars off the road or planting 4.86 million itself to:
trees. • Playing a role in the Asia-Pacific
Partnership for Clean Development and
2.2 Progress toward national global targets Climate (AP6)
Australia is a party to the United Nations • A fund of 500 million AUD to support
Framework Convention on Climate Change. How- low-emissions technology largely focused on
ever, the federal government’s consistent position is carbon capture and storage
that it would not ratify the Kyoto Protocol as long • Plans to build the word’s biggest solar pow-
as the major emerging economies were not included er station in northwestern Victoria
and adherence to its dictates would act against Aus-
tralia’s economic interests. Despite this stance, the 2.3 Task Group on Emissions Trading
government has maintained a position that it would On 10 December 2006, the prime minister
meet the Kyoto target of 108% of 1990 emissions announced the establishment of a joint government-

Figure 1 Australian wind energy capacity: Cumulative growth 2001–2006.

78 2006 Annual Report


Australia

Figure 2 Cumulative tons of CO2 offset by Australian wind energy pro-


duction: 2001–2006.

business Task Group on Emissions Trading, to re- 3.0 Benefits to national economy
port by 31 May 2007. The task group is primarily
made up of representatives of large energy-consum- 3.1 Market characteristics
ing corporations, wholesale energy producers, and With the lapsing of the major national incen-
senior public servants. The terms of reference are as tive scheme for the establishment of new renewable
follows: energy projects (MRET), output by the Australian
Australia enjoys major competitive advantag- wind energy industry has been reduced, but major
es through the possession of large reserves of players are actively readying themselves for im-
fossil fuels and uranium. In assessing Australia’s proved conditions ahead. This period has tested the
further contribution to reducing greenhouse patience of some, but it illustrates the robustness of
gas emissions, these advantages must be pre- the Australian wind energy industry and its member
served. companies, which are willing to ride out the tough
Against this background the Task Group will times.
be asked to advise on the nature and design of The industry is already making a significant
a workable global emissions trading system in contribution to the Australian economy, particularly
which Australia would be able to participate. in rural and regional locations (Table 2). Drought
The Task Group will advise and report on ad- has forced farmers across the nation to seek out new
ditional steps that might be taken, in Australia, sources of income, and hosting wind turbines is be-
consistent with the goal of establishing such a coming increasingly attractive to them as a means
system. of (at least partially) drought-proofing their busi-
nesses. By the same token, much of the industry that
The task group will be seeking contributions has built up as a result of the recent growth in wind
from stakeholders and will provide a response to the energy has been established in regional areas, and
prime minister by 31 May 2007. some areas are looking to renewable energy gener-
The wind energy industry views this review ally as a source of future prosperity. A good example
as important but also warns against total reliance is the Ararat Rural City in western Victoria. Already
on an emissions-trading-only response to achieve home to the Challicum Hills Wind Farm, it is now
emission reduction. To transform Australia’s station- looking to establish a renewable energy business
ary energy sector to make clean energy technology precinct, capitalizing on its potential as a manufac-
available to the economy, implementing additional turing and transport hub for southeast Australia.
measures that immediately commence the greater Australia’s manufacturing industry experi-
deployment of zero emission energy technology is enced significant growth in 2004 and 2005. Despite
critical. So too is the need to ensure that policy de- the closure of the Vestas nacelle assembly plant in
liberations are also focused on mature clean energy Burnie, Tasmania, 2006 was a positive year overall
technologies that are available today.

IEA Wind Energy 79


National Activities

for the manufacturing sector, with strong demand Victoria requires its quota of renewable electricity
from domestic and external operators. to be generated within the state, while New South
Manufacturing operations exist in three Wales allows generation outside its borders as long
states: Tasmania, Victoria, and South Australia. Tas- as the electricity is consumed within NSW.
mania is home to the turbine tower manufacturer Further incentive came from South Australia,
Haywards Engineering. Victoria has a manufactur- already home to almost half of the nation’s installed
ing plant building wind towers and components wind energy capacity, with a pledge to source 20%
(Keppel Prince) and a new blade manufacturing of its power from renewables by 2014. However,
plant, both based in the southwestern coastal town at this writing no mechanism has been revealed to
of Portland. South Australia boasts the major steel achieve this. Starfish Hill wind farm is an example
fabrication company Air-Ride Technologies. of the installations taking place in South Australia
(Figure 4).
4.0 National incentive programs Meanwhile, the WARET legislation in West-
ern Australia proposes 8.3% of the state’s power to
The major incentive scheme for the wind come from renewables by 2010, growing to 20% by
energy industry reached its effective conclusion in 2020. This legislation, introduced by the Greens,
2006. The federal government’s MRET scheme has passed the upper house but has not yet achieved
achieved its target of 9,500 GWh of new renewable a majority in the lower house of parliament.
generation four years ahead of its original schedule,
leaving developers with no active incentive scheme 4.2 National Greenhouse Strategy
until the states came to the rescue in the second half The development and growth of the renew-
of 2006. able energy industry in Australia is primarily sup-
ported by the strategic initiatives that have flowed
4.1 State-based incentive programs from the federal government’s 1998 National
The combination of national and state-based Greenhouse Strategy (NGS), the strategic frame-
incentive schemes have resulted in six states (Figure work for advancing Australia’s domestic response
3). First Victoria with its VRET scheme (10% of all to greenhouse gases. The Australian government,
retail electricity sales to be sourced from renewables through the Australian Greenhouse Office, delivers
by 2016), then New South Wales with its NRET the majority of these initiatives under the 1.8 bil-
scheme (10% by 2010 and 15% by 2020) gave the lion AUD climate change strategy. The initiatives
industry the kick start it had been waiting for. The include a wide range of measures focusing on the
major difference between VRET and NRET is that energy, transport, and agricultural sectors. The most

Table 2 Australian wind energy industry 2006: Economic, environmental,


and social benefits*
Installed megawatts 817
Average number of Australian households powered by wind energy 347,906
Number of wind energy projects (two or more turbines) 30
Annual greenhouse gas emissions displaced 3,256,399 tonnes CO2/yr
Equivalent number of cars taken off the road 752,055/yr
Landholder lease payments 2.54 million AUD/yr
Operations and management costs 20.54 million AUD/yr
Total capital investment 1.4 billion AUD
Manufacturing jobs 300
Construction jobs 374
Operations and management jobs 120
Other jobs (project development, engineering, and finance) 175
*All figures are estimates only based on available information obtained by Auswind.

80 2006 Annual Report


Australia

Figure 3 Australian states: installed wind energy capacity 2006.

significant NGS initiative for the renewable energy although the processes associated with its adminis-
sector has been the MRET scheme discussed earlier. tration and operation were refined.
Other NGS initiatives are outlined in the following The white paper included funding for the follow-
sections. ing support incentives:
• A renewable energy development initia-
4.3 NGS initiatives tive—100 million AUD over seven years.
The NGS provides direct support to the re- • Low emissions technology and abatement—
newable energy industry through programs includ- 27 million AUD over four years.
ing these: • Advanced electricity storage technologies—
• The 26.5 million AUD Renewable Energy 20 million AUD over four years.
Equity Fund, which provides venture capi- • Wind forecasting capability—14 million
tal to high-growth and emerging companies AUD.
commercializing direct or enabling renewable • Improved electricity grid accessibility
energy technology services. through federal and state government
• The 54 million AUD Renewable Energy relations.
Commercialisation Program (RECP), which
provides the potential for a strong commercial The white paper also included a 500 million
contribution to the renewable energy indus- AUD Low Emissions Technology Demonstration
try, with a focus on reducing greenhouse gas Fund to support industry-led projects that can reduce
emissions. the cost of large-scale, low-emission technologies
• The Renewable Energy Showcase, which with significant potential for long-term abatement.
provides funding and/or promotion of lead- However, it is anticipated that this fund will be pre-
ing-edge technologies that are approaching dominantly focused on the fossil-fuel industry.
commercialization.
4.5 Green Power national
4.4 White Paper on Energy and accreditation program
the Environment Renewable energy development is also en-
The federal government’s most recent com- couraged by the nationally accredited program
prehensive response to energy and environmental Green Power, which sets stringent environmental
issues was released in June 2004 and framed within and reporting standards for renewable energy prod-
the White Paper on Energy and the Environment, ucts offered by electricity suppliers to households
“Securing Australia’s Energy Future.” The existing and businesses across Australia. Since Green Power’s
MRET (9,500 GWh by 2010–2020) was retained, inception in 1997, more than 138,000 domestic and

IEA Wind Energy 81


National Activities

Figure 4 Starfish Hill Wind Farm, South Australia. Photo courtesy of Tarong Energy

commercial customers have contributed to reducing 5.2 Auswind accreditation scheme


greenhouse gas emissions by buying green power In June 2006, Auswind received funding from
across Australia, resulting in savings of more than AGO’s Department of Environment and Heritage to
2.5 million tonnes of greenhouse gas emissions. develop an accreditation scheme for the wind energy
industry in Australia. This project is now under way.
4.6 Australian Greenhouse Office initiatives Documentation for the planning phase of a wind
The Australian Greenhouse Office (AGO), farm development has been drafted, and scheme
established in 1998, remains the principal federal guidelines and specifications are being established.
government agency on greenhouse matters. The
AGO is providing up to 6 million AUD over four 5.3 Wind Farms and Landscape Values project
years to foster the industry and guide the develop- The Wind Farms and Landscape Values–Na-
ment of industry standards. The key AGO programs tional Assessment Methodology project is a joint
of benefit to wind energy projects are the Renew- project of the Australian Council of National Trusts
able Energy Commercialisation Program, Renew- (ACNT) and Auswind. It is funded by the Depart-
able Energy Industry Development Program, and ment of the Environment and Heritage under the Low
Renewable Remote Power Generation Program. Emission Technology and Abatement Program. The
objective of the project is to provide a sound, transpar-
5.0 R, D&D activities ent, nationally applicable framework for identifying
and assessing landscape values, assessing the poten-
5.1 Auswind best practice guidelines tial impacts of wind farms on landscape values, and
In 2002, Auswind, with funding from the assessing site impact and mitigation and community
Commonwealth Department of Environment and consultation procedures. This project was born from
Heritage, developed best practice guidelines for the recognition that the long-term sustainability
wind farm developments in Australia. These guide- of the wind energy industry depends on appropri-
lines document best practice processes from site se- ately sited and sensitively developed wind energy
lection and preparation for development application projects.
through construction, operation, and decommis- Stage one of the three-stage Wind Farms and
sioning at the end of the development’s life. A review Landscape Values project, the issues paper, was re-
of the guidelines was undertaken in the second half leased in June 2005. The paper effectively addresses
of 2006 to ensure that they continued to reflect best the complexities associated with wind farm siting is-
practice (by benchmarking them against interna- sues, largely because it is the result of an extensive
tional and national standards) and could support the consultation process that gives all stakeholders the
Auswind Accreditation Scheme (see next section). opportunity to assist in formulating an agreed upon

82 2006 Annual Report


Australia

set of national landscape issues for the Australian Global Windpower 2006 conference and exhibi-
wind energy industry. More than fifty organiza- tion. With nearly five hundred delegates, almost half
tions and many more individuals were consulted in of them from outside Australia, Global Windpower
the first stage of the project. This set the scene for 2006 was an overwhelming success. Australia’s na-
stage two, which will involve a series of public meet- tional wind-power conference, Auswind 2007, is ex-
ings and forums throughout Australia during 2007. pected to follow on from this success when it is held
These meetings will seek the views of the public and in September 2007 in Melbourne, Victoria.
relevant organizations as to how a landscape assess- Auswind also maintains strong ties with in-
ment methodology should work. dustry associations across the world, particularly in
Funding from the AGO Department of En- the Asia-Pacific region. The industry’s co-operative
vironment and Heritage will support this process in international relationships strengthen Australia’s
every Australian state. The goal is an agreed upon information and research base. They also provide
set of national landscape methodologies to be ad- the Australian industry with best practice examples
opted by the Australian wind energy industry and from more established wind energy industries.
promoted by the ACNT.
6.0 The next term
5.4 Other government R, D&D funding
The federal government’s White Paper on 6.1. Priorities for industry growth
Energy and the Environment has devoted significant Auswind has identified several key priorities
R&D funding to clean energy technologies through for supporting progress in the wind energy industry
its Low Emissions Technology Development Fund. in Australia. The most urgent priority is the binding
However, it is anticipated that most of this funding establishment of a new or extended federal industry
will go toward advancing geosequestration technol- development mechanism (or multiple state mecha-
ogy for Australia’s coal industry. The white paper nisms) to increase the market capacity for the de-
also included 14 million AUD to improve Australia’s ployment of wind energy projects in Australia. Aus-
wind forecasting capability through research being wind is advancing several other initiatives to address
undertaken within the AGO. grid integration issues and market categorization in
The federal Department of Industry, Science the Australian National Electricity Market (NEM).
and Resources and the Australian Taxation Office Projects are also underway to address community
foster renewable energy innovation with a 1.25 concerns with wind energy, ensure compliance with
AUD tax deduction for every dollar spent on eligible industry best practice, and increase national support
R&D activities. for future wind energy projects.
The Commonwealth Scientific and Industrial
Research Organisation (CSIRO), Australia’s premier 6.1.1. Industry development mechanisms
scientific organization, makes its major contribution The most urgent requirement for further ex-
to wind energy research through its Wind Energy pansion of the wind energy industry in Australia is
Research Unit (WERU). The WERU has primarily an increased market for renewable energy projects.
focused on developing capabilities for regional wind Auswind has been working extensively with related
assessment tools and modeling wind flow over com- organizations, such as the Business Council for Sus-
plex topography. tainable Energy (BCSE), to develop clean energy
There are several additional R&D funding policy proposals for consideration by the federal
programs in the AGO, the CSIRO, and Australian government. At the same time, liaison continues at
universities. the state level to ensure that schemes both in place
and proposed reflect the realities of the electricity
5.5 Collaborative links market and create conditions in which the wind en-
Auswind continues to be the Australian par- ergy industry can thrive.
ticipant for the International Energy Agency (IEA) Auswind representatives have also played an
Implementing Agreement for Co-operation in the active role as official observers of the AP6, provid-
Research, Development, and Deployment of Wind ing access to the highest level of decision-making on
Energy Systems. Auswind also has strong ties with energy policy in Australia and in the broader Asia-
the Global Wind Energy Council (GWEC); it pre- Pacific region. Participating in such forums as an in-
sented GWEC’s largest international event of 2006 dependent and autonomous industry is a significant
in Adelaide, South Australia, in the form of the step forward for the Australian wind energy sector.

IEA Wind Energy 83


National Activities

6.1.2 Grid integration and market categorization is poised, ready to fill a substantial portion of the
The Australian energy market is one of the nation’s future energy requirements. Auswind es-
most flexible in the world and could easily adapt to timates that, given appropriate policies, Australia’s
incorporate larger amounts of wind energy. How- installed wind energy capacity could realistically
ever, some Australian regulatory authorities are reach triple its 2006 figure (817 MW) by the end
requiring wind energy projects to be subject to the of 2010. The pivotal decisions will be made not at
same market rules that govern fossil-fueled power the corporate level, but by government. Auswind
stations. To enforce these rules without altering the is well placed to contribute to and influence these
mechanics of the NEM will unnecessarily reduce decisions.
the amount of energy that can be delivered from A report commissioned by the Australian
clean energy projects. Greenhouse Office in 2003 found that the NEM is
already able to support an installed wind capacity of
6.1.3. Addressing community concerns with wind more than 8,000 MW, provided that the progressive
energy projects development of wind energy projects is enabled in a
As has been the case in many other countries dispersed fashion, commercial wind output forecast-
around the world, wind energy projects in Australia ing is in place, and interstate connectivity continues
have attracted considerable media attention and vo- to be enhanced. This amount of wind energy would
cal community debate. Auswind completed several equate to approximately 10% of Australia’s electric-
initiatives in 2005 that address some of the most ity needs and is attainable without significant wind-
common concerns associated with wind energy specific modifications to existing electrical infra-
projects in Australia (Section 5). In Australia, wind structure. Given a stronger political commitment to
energy projects come under the jurisdiction of state the deployment of clean energy technologies, the fu-
or local authorities. Most states are now moving to- ture role for wind power in Australia could be even
ward state government approval for the larger wind more substantial.
energy projects while involving local governments After six years of strong growth, the Austra-
in the consultation process. Victoria, South Austra- lian wind energy industry demonstrated its resil-
lia, and New South Wales have developed extensive ience in 2006, surviving a protracted slowdown. It is
planning guidelines for wind energy projects. now once again preparing to show its full potential
thanks to the introduction of policies that encourage
6.2. Australia’s development potential the deployment of clean energy technologies. The
The year 2007 shapes up as a crucial year for full extent of this potential should become apparent
Australia’s energy sector, with big decisions soon to in the years ahead.
be made about the structure of the sector in com-
ing decades (Figure 5). The wind energy industry Author: Rob Clancy, Auswind, Australia.

* Includes projects with planning approval but excludes projects undergoing


construction
Figure 5 Proposed Australian wind energy projects by state: 2006*

84 2006 Annual Report


Canada
11

1.0 Introduction 2.0 Progress toward national objectives

Canada’s large landmass, long coastline, and Although there are no national wind energy
relatively cool air mass combine to provide a wind deployment targets, the federal government’s wind
resource of large potential. Canada has significant and renewable energy programs ensure the provi-
potential for wind energy development, and Cana- sion of economic incentives for accelerated intro-
dian wind energy has grown exponentially over the duction of new capacity. In January 2007, the fed-
past ten years. Canadian wind power had a record eral government announced a new ecoENERGY
year in 2006, with installed wind energy generat- for Renewable Power program to pursue the efforts
ing capacity growing to 1,460 MW. Several federal that began with the Wind Power Production Incen-
and provincial programs, including the recent com- tive program. The new program will permit fund-
mitment to a new incentive program for low-impact ing of an additional 3,000 MW of wind capacity by
renewable energy projects, the ecoENERGY for 2011. This program is currently the main driver for
Renewable Power program, are setting the stage for future wind energy deployment in Canada. Other
continued growth. levels of government provide support for the devel-
Wind energy in Canada still requires policy, opment and expansion of the wind energy industry
financial, and technical support to make it consis- to varying degrees, and installed capacity is set to
tently appealing and competitive with conventional grow quickly.
energy sources. Support measures are also needed By December 2006, a total of 1,460 MW of
to stimulate domestic manufacturing and assembly wind power had been installed in Canada, making
operations. it the thirteenth country to reach the 1,000-MW
While current wind capacity represents less milestone and the twelfth nation in terms of amount
than 1% of total capacity at present, future growth of installed wind energy capacity. In 2006, Cana-
will depend on how well new capacity can be inte- dian wind installed capacity was increased by 113%
grated into the grid. It is expected that major invest- with the addition of 776 MW of installed capacity.
ments in transmission and distribution infrastruc- (Figure 1)
ture will be needed in the short to medium term for At 414 MW, Ontario has the highest installed
wind to reach significant levels of penetration. capacity, followed by Alberta at 385 MW and Qué-
bec at 322 MW (Figure 2). Although British Co-

Table 1 Key Statistics 2006: Canada


Total installed wind generation 1,460 MW
New wind generation installed 776 MW
Total electrical output from wind 3.8 TWh*
Wind generation as % of national electric demand 0.7%*
Target: N/A
* Estimated and based on installed capacity with a 30% capacity factor
Source: StatsCan: 57-601-XWE

IEA Wind Energy 85


National Activities

Figure 1 Installed capacity per year in Canada. Source: Natural Resources Canada 2007.

lumbia still does not have any wind capacity, this have steadily increased, reaching 113% in 2006 from
will change during the next few years, as in 2006 it a low level of 8% growth in 2002. Although 2007 is
approved power purchase agreements (PPAs) for 325 expected to be a very good year, the uncertainty of
MW to be built by 2010. the federal incentive for wind during 2006, coupled
New installations in 2006 include the Prince with the renewal of the production tax credit in the
Wind Energy Project located near Sault Ste. Marie United States and overall competition for equip-
in northern Ontario. At 189 MW, this is the larg- ment, will most probably slow this growth rate. Still,
est wind farm in Canada. Also in Ontario, the Erie industry experts estimate that more than 500 MW
Shores Wind Farm (99 MW), the Kingsbridge Phase of new capacity will be installed in 2007.
1 Wind Farm (39.6 MW), and the Melanchton Phase According to the Canadian Wind Energy
1 Wind Farm (67.5 MW) were commissioned in Association (CanWEA), projects currently under
2006. In Québec, the Baie-des-Sables Wind Farm construction or with signed PPAs amount to ap-
(109.5 MW) is the first commissioned installation proximately 3,000 MW of additional wind energy
that was part of the 1,000-MW bid awarded in 2004 capacity by 2012. All provinces either have wind
by Hydro-Québec. In Saskatchewan, the Centennial energy targets or Requests for Proposals (RFPs)
Wind Farm was the largest wind farm for part of the in place or being planned totaling a minimum of
year at 150 MW (Figure 3). In Manitoba, the second 10,000 MW of installed capacity by 2015.
phase of the St. Leon Wind Farm (84 MW) (Figure
4) was completed in early 2006. In Alberta, the So- 2.2 Contribution to national energy demand
derglen Wind Farm (70.5 MW) and the ChinChute In 2005, Canadian national electrical energy
Wind Farm (30 MW) were also commissioned at generation totalled 551 TWh (Energy Statistics
the end of 2006. Finally, several projects represent- Handbook 2006 File: 57-601-XWE) and was esti-
ing a total of 15 MW were commissioned in Nova mated to reach about the same level in 2006. Total
Scotia in late 2006. installed generation capacity, which includes hydro-
power, coal, nuclear, natural gas, oil-fired, wood-
2.1 Rates and trends in deployment fired, tidal, and wind plants, was projected at 125
Installed wind-power capacity in Canada GW at the end of 2006. The installed wind capacity
has experienced an average annual growth rate of was 1,460 MW at the end of 2006, producing an es-
51% over the past five years. Annual growth rates timated 3,800 GWh of wind energy per year (about
0.7% of total electricity production).

86 2006 Annual Report


Canada

Figure 2 Canada’s installed wind capacity. Source: Canadian Wind Energy Association Web
site, January 2007.

3.0 Benefits to national economy to increased air density. Components such as the
gearbox and generators are affected by the resulting
3.1 Market characteristics increased power output.
In Canada, wind farms are usually owned by To reach its full potential, the Canadian wind
private corporations (independent power producers energy industry will also have to overcome the fol-
or IPPs), by utilities, or by income funds. The elec- lowing barriers:
tricity is sold to utilities by means of a PPA or, as in • While no fuel cost is associated with wind
the case of deregulated markets such as in Alberta; energy, the cost of wind power is still higher
it is sold on the spot market. In some jurisdictions, than the current cost of electricity from con-
including in Québec and British Columbia, a call for ventional sources of energy in Canada.
tenders is issued so provincial utilities can obtain the • Wind energy is a variable source of elec-
electricity at the best rate. tricity. As a result, local wind installations
The main constraints for wind energy devel- cannot be relied on for baseload requirements,
opment in Canada are the lower cost of conventional posing challenges to electricity generation and
energy, a surplus of generation capacity in many ar- transmission system operators.
eas, and a lack of transmission capabilities in areas • Although wind energy is a clean technolo-
with promising wind potential. Another constraint gy, it is not completely free of environmental
is Canada’s weather. Wind turbines installed at high effects, in particular visual impacts, noise pol-
elevations are affected by rime ice. Icing can occur lution, and potential effects on wildlife such
anytime between October and May and reduce wind as birds and bats. Community acceptance of
energy production substantially. In addition, icing wind projects depend on these challenges be-
can be a safety concern and also negatively impacts ing addressed.
the fatigue properties of turbine materials. Cold air • Codes and standards need to be developed
temperatures also increase loading on turbines due for local interconnection and safety issues.
These are usually harmonized with inter-

IEA Wind Energy 87


National Activities

Figure 3 Centennial Wind Farm (150 MW) in Rushlake Creek, Saskatchewan. (Photo Credit:
Jimmy Royer 2006)

national standards and should be adapted to


ensure Canadian conditions are addressed.

The issue of variability does not appear to be


a major problem for most regions of Canada, namely
because of the wide availability of hydropower fa-
cilities, which can act as storage of energy. For levels
of penetration higher than 20%, more sophisticated
network management strategies will be needed.
These issues are now being addressed in Europe,
and Canada could benefit from Europe’s experience.
However, the lack of grid transmission availability
can be a problem in regions where wind resource is
promising but grid capacity is inadequate because it
is in a remote area or because production capacity
has grown faster than anticipated.

3.2 Industrial development and


operational experience

3.2.1 Industry development and structure


The Canadian industry is composed mainly
of companies that manufacture wind-related com-
ponents such as rotor blades, control systems, invert-
ers, nacelles, towers, and met towers. The industry
also includes wind resource assessment firms and
wind farm developers. As an indication of the level Figure 4 Vestas NM 82 turbines at the St. Leon
of industrial expertise, CanWEA comprises more Wind Farm, Manitoba. Source: Jimmy Royer
than 290 companies involved in wind turbine and 2006.
component manufacturing, wind energy project de-
velopment, and other related services.

88 2006 Annual Report


Canada

Currently, the majority of equipment used in and Composites VCI is manufacturing nacelles.
Canadian projects is procured outside of the country. Elsewhere, DMI Industries (U.S.) acquired a manu-
The Canadian content of most current and planned facturing plant in Fort Erie, Ontario, to expand its
projects involves mainly project management, engi- heavy steel wind tower fabrication operations. As
neering services, and site-related costs. With increas- well, AAER has started a blade and tower manufac-
ing markets and investments, there is an opportunity turing unit in Bromont, Québec. The nascent mar-
to increase Canadian content, particularly for equip- ket also includes a few notable foreign entrants such
ment supply. Figure 5 shows the typical distribution as Spanish wind Acciona/EHN that has joined with
of costs for installing a wind farm. developers Suncor and Enbridge in Alberta. Also,
AAER Systems has licensed Fürhlander technology
3.2.2 Manufacturing and plans to manufacture in Bromont, Québec.
The Canadian industry mainly comprises of Canada also has small wind turbine manufac-
developers backed by large energy firms and indus- turers, among which are the following:
trial corporations that bring with them financial • Wenvor Technologies, Plastiques Gagnon,
resources and commercial credibility. SaskPower and Vergnet Canada are developing small
and other leaders such as VisionQuest (TransAlta), wind turbines in the size range of 10 kW to
Suncor, and Canadian Hydro Developers have sig- 30 kW.
nificant operations behind them. In addition, heavy • Entegrity Wind Systems Inc., Vergnet
hitters have invested in emerging wind independent Canada, and Atlantic Orient Canada Inc. are
power producers (IPPs). For example, TransCanada offering turbines in the size range of 50 kW
with Cartier Wind Energy Group, Epcor, Nexen, and to 60 kW.
Brookfield Power purchased Superior Wind Power
in 2005. This phenomenon points to the continuing 3.3 Economic details
role of major energy companies in the growth of the No fuel costs are associated with wind energy;
industry and the challenge and increased competi- therefore, capital costs and operating and mainte-
tion ahead for existing market leaders. nance costs largely determine generation costs (Fig-
Canada is still in the early stages of develop- ure 5). Recent calls for tenders and RFPs have shown
ing a local manufacturing industry. As a result of the that the capital costs to install wind farms in Canada
Québec RFP process, GE Wind Energy has estab- range from 1,800 CAD/kW to 2,200 CAD/kW,
lished facilities in the province to enable up to 60% while the generation costs are estimated to be be-
of wind turbine components to be manufactured tween 0.075 CAD/kWh and 0.12 CAD/kWh. For
and assembled locally. LM Glasfiber has installed example, provincial calls for power in British Co-
a blade-manufacturing unit in the Gaspé region, lumbia, Ontario, and Québec and the Renewable
and in Matane, Marmen is manufacturing towers Portfolio Standard (RPS) in Prince Edward Island

Figure 5 Capital cost breakdown for a typical 30-MW onshore wind farm. Source:
NRCan 2007.

IEA Wind Energy 89


National Activities

resulted in electricity prices from wind energy in the In all other Canadian jurisdictions, the buy-
range 0.0775 CAD/kWh to 0.096 CAD/kWh. The back price is generally set by the local utility and is
primary variables associated with this cost range are based on avoided costs.
the cost of the wind turbines themselves, the qual-
ity of wind resources, transmission connection fees, 4.0 National incentive programs
scale of operation, and size of turbines.
Although the cost of wind power has declined 4.1 Main support initiatives and market
steadily in the past 20 years, recent cyclical factors stimulation incentives
(the ongoing boom in prices for commodities such The most influential market stimulation in-
as steel and oil, variations in currency exchange, strument so far has been the federal government’s
and shortages in wind turbine supply due to a sud- Wind Power Production Incentive (WPPI) program
den increase in world and U.S. demand) have led to for wind energy developers. Qualifying wind en-
an increase in capital costs of approximately 20%. ergy facilities receive an incentive payment of 0.01
Thus, in Canada, wind power is still more expensive CAD/kWh of production. The incentive is avail-
than electricity generated by conventional sources, able for the first ten years of production and helps to
and federal and provincial support is still needed to provide a long-term stable revenue source. The pro-
close the price gap. gram was intended to help address climate change
Canada has also experienced an increase in and improve air quality. Originally slated to build
size of wind farms, especially in provinces with 1,000 MW by 2007, the program has funded a total
existing wind installations. This is mainly because of 924 MW by the end of 2006. The recently an-
smaller projects (less than 50 MW) can cost from nounced ecoENERGY for Renewable Power pro-
10% to 30% more because of economies of scale. gram will provide the same incentive under similar
This trend may be reversed in regions where a fo- terms and conditions for an additional 3,000 MW to
cus on decentralized generation is made, such as in be built by 2011.
Ontario, which intends to attract new capacity on its Currently, Class 43.1 of the federal Income
distribution lines by providing a fixed-price tariff for Tax Act provides an accelerated rate of write-off
clean energy projects less than 10 MW in capacity. for certain capital expenditures on equipment that
According to CanWEA estimates, Canada’s is designed to produce energy in a more efficient
wind energy industry contributed 736 million CAD way or to produce energy from alternative renew-
to the country’s gross domestic product in 2005. able sources. Recently, the tax write-off has been
That same year, there were 1,200 full-time-equiva- increased from 30% to 50% per year on a declining-
lent jobs in the wind energy industry, an increase of balance basis.
65% over 2004. As well, the government has legislated the ex-
Financing does not constitute a significant tension of the use of flow-through share financing
barrier as long as wind developers are backed up for intangible expenses in certain renewable proj-
by long-term PPAs with utilities and benefit from a ects, through the Canadian Renewable and Con-
steady stream of revenue. However, policy stability servation Expense (CRCE) category in the income
and long-term incentives are essential for reducing tax system. With CRCE, the Income Tax Act allows
the perceived risk of developing new wind farms. the first exploratory wind turbine of each section of
In Alberta, full retail competition between a wind farm to be fully deducted in the year of its
power generators began on 1 January 2000. This installation, in a manner similar to the one in which
process has allowed wind generators freer access to the first exploratory well of a new oil field can be
the electrical grid. In Ontario, a similarly deregu- written off. Table 2, compiled by CanWEA, shows
lated system commenced on 1 May 2002. However, the level of commitment per province.
a few short months later, the provincial government, In parallel, various agencies are working to
under political pressure because of rising electricity provide tools needed by industry to address the mar-
prices, capped the generation component of the cost ket created by these incentives. The following are a
to small consumers, effectively freezing the rates for few examples of these activities:
four years. This is viewed as a setback to private gen- The Canadian Wind Energy Atlas is a mas-
erators, some of which have been considering wind sive database of high-resolution wind statistics for
power projects. Nevertheless, incentives for renew- the entire country, making Canada one of the large-
ables, now being finalized, are expected to offset the area countries in the world to have a comprehensive
impacts of the rate cap. wind energy atlas across its entire territory. The atlas

90 2006 Annual Report


Canada

Table 2 Federal and provincial objectives for wind energy


Jurisdiction Initiative Status
Federal Announced the ecoEnergy for Program scheduled to be launched in
Renewable Power program in January April 2007
2007 to support the deployment of
3,000 MW of wind energy between
2007 and 2011
British Columbia Fifty percent of new generation to 2006 Call for Power awards 325
come from clean energy sources MW of power purchase agreements
(PPAs) for wind projects
Alberta An initial “threshold” of 900 MW of Alberta will pass 500 MW of installed
wind energy development established; wind energy capacity in 2007.
work under way on policies (e.g.,
wind energy forecasting) to allow an
increase in the threshold
Saskatchewan Current initiatives will result in wind Small-projects RFP has led to recent
energy meeting 5% of electricity awarding of 25-MW PPA.
demand in Saskatchewan (about 200
MW).
Manitoba Manitoba government seeking 1,000 More than 100 MW in place; 300-
MW of wind energy within a decade MW RFP to be issued in early 2007
Ontario Renewable Portfolio Standard (5% by More than 1,200 MW in place and/or
2007; 10% by 2010)—potentially four- contracted; Standard Offer Contract
fifths of this will be wind energy—2,100 program launched seeking 1,000 MW
MW by 2010 of renewable energy from projects of
10 MW or less in size
Québec Québec government seeking 4,000 More than 1,400 MW in place and/
MW of wind energy by 2015 or contracted; 2,000-MW RFP to be
awarded in 2007.
New Brunswick NB Power seeking 400 MW of wind Ninety-five MW of wind energy
energy by 2016 contracted—seeking to have 200 MW
in place by 2008
Nova Scotia Regulations mandate that almost Fifty MW of wind energy in place;
20% of electricity must come from 130-MW RFP for renewable energy to
renewable sources by 2013. be released in 2007
Prince Edward Island Government target of 15% of Sixty-plus MW of wind energy now
electricity coming from wind power installed or contracted
in 2010 (60 MW); notional goal of
100% by 2015
Newfoundland Draft energy paper calls for 150 MW Fifty-one MW now contracted
of wind energy

was created with WEST (the Wind Energy Simu- means wind farms can be situated with greater pre-
lation Toolkit), a sophisticated computer modeling cision and, by reducing the need for extensive field
program developed by scientists at the Meteorologi- studies to verify wind conditions in a given area,
cal Service of Canada (MSC) of Environment Can- development of new projects can move much more
ada in partnership with their colleagues at Natural quickly. The atlas can be found on the Internet at
Resources Canada (NRCan). WEST allows plan- http://www.windatlas.ca.
ners of wind energy projects to look both backward MSC developed the AnemoScope Wind
and forward in time to generate a detailed picture Energy Simulation Toolkit as a complement to its
of wind patterns for any location in Canada. This Wind Energy Atlas. AnemoScope provides a fully

IEA Wind Energy 91


National Activities

integrated solution, combining state-of-the-art me- accommodate both provincial differences and site-
soscale and microscale wind models with advanced specific differences. The report will be studied by
visualization, pre- and postprocessing, and analysis the various provincial bodies responsible for grid
directly on a Microsoft Windows environment. It interconnection.
allows users to locate the ideal place to install wind
turbines by providing the science and technology to 5.0 R, D&D activities
perform pinpointed wind energy studies. It includes
dynamic modelling of all scales down to the wind- 5.1 National R, D&D efforts
farm level and integrates more than 50 years of The fiscal year 2006/2007 budget for the
global historical meteorological data. AnemoScope’s Wind Energy R&D (WERD) group of Natural Re-
ability to assess an area of 1 square kilometer down sources Canada (NRCan) is about 2.5 million CAD,
to an area as small as 100 square meters allows wind with contributions of about 1.5 million CAD from
location studies to be made much more rapidly, with contractors, research institutions, and provinces.
greater confidence and certainty, and at a lower cost The Canadian government’s Technol-
than had been previously possible (Figure 6). Instead ogy Early Action Measures (TEAM) program pro-
of using older-generation tools, AnemoScope uses vides funds for activities falling under the Climate
two advanced meteorological models, Environment Change Initiative, which include renewable energy
Canada’s MC2 and MS-Micro, to calculate and pre- deployments. The funds from this program can be
dict wind flow patterns over a given landscape. accessed for wind energy projects that involve nearly
NRCan recently funded CanWEA to ex- developed technologies ready for field trial in the
amine the interconnection requirements for wind short term.
technologies in Canada. The resulting report by The focus of the Canadian national wind en-
Garrad Hassan proposes a base code that incorpo- ergy group continues to be the development of safe,
rates the existing codes developed in Alberta, On- reliable, and economic wind turbine technology to
tario, and Québec and includes the collaboration of exploit Canada’s large wind potential, as well as sup-
the American Wind Energy Association. It proposes porting field trials. NRCan also supports a newly-
a structure allowing variability in requirements to formed national wind institute. Since 1981, the

Figure 6 AnemoScope’s micro-scale wind energy level for Montreal region, Québec.
Source: MSC Environment Canada, 2007.

92 2006 Annual Report


Canada

Atlantic Wind Test Site (AWTS), located in North Technology Development: Canada will con-
Cape, PEI, has been Canada’s primary facility for tinue to focus on the design, development, testing
wind turbine testing, technical innovation and tech- and demonstration of small and large wind turbine
nology transfer. The national Wind Energy Institute technologies. This includes offshore technologies
of Canada (WEICan) evolved from the regionally- with a special focus on the great lakes. Technology
based AWTS and will focus on four strategic areas: and standards development will emphasize adapta-
testing and certification, research and innovation, tion to the Canadian context and remote commu-
training and public education, and technical con- nities. For example, NRCan is currently support-
sultation and assistance. WEICan will support the ing the demonstration of a wind-hydrogen-diesel
development and implementation of wind power system for a remote community in the province of
generation and wind energy products and services Newfoundland.
for Canada and export markets. Renewable Energy Technology Networks:
NRCan’s WERD group supports new tech- Canada will continue to maximize information ex-
nology development activities related to: change with national and international collaborators
• Small wind turbines (< 300 kW), including through the IEA’s Wind Implementing Agreement,
the testing of turbines connected in single- the Wind Energy Institute of Canada, and through
phase for net-metering applications, verifying a newly-formed network of Canadian university
electricity production, reliability of system researchers, should this network receive funding in
components, and ability to withstand the the upcoming year.
Canadian climate; Resource Assessment: Canada will pursue
• Large wind turbines (>300 kW), including its valuable work quantifying and qualifying wind
the support of market infrastructure for large resources through continued work on on- and off-
wind technologies through the development shore resource assessment and forecasting tools.
of industry standards and planning aids such as Environmental Impact & Mitigation: A new
the Canadian Wind Energy Atlas, a tool that focus area for NRCan, techno-environmental im-
identifies areas best suited for wind power; pact and mitigation studies will shed some light
• Remote applications, including the devel- on turbine / wildlife interaction as well as noise
opment of a 60 kW direct drive permanent and radiofrequency interference assessment and
magnet turbine that can be connected in single mitigation.
or three phase mode, and the development of Although a sustained effort is required to ad-
a wind/diesel control system for remote com- dress both technical and non-technical issues, cost of
munities. generation in Canada remains the most important
barrier to increased wind deployment in this coun-
5.2 Collaborative research try. Since wind is not yet cost competitive with more
Canada participates in the following tasks of traditional sources of electricity in Canada, incen-
the IEA Wind R&D Implementing Agreement: tives will still be required in the next few years to
• Task 11—Base Technology Information sustain the actual growth rate of commercial turbine
Exchange; installations. The federal wind incentive by itself is
• Task 19—Wind Energy in Cold Climates; insufficient to bridge the cost gap, but it has pro-
• Task 20—HAWT Aerodynamics and vided partial funding along with a stable planning
Models from Wind Tunnel Measurements; framework for both industry and the provinces. This
• Task 24—Integration of Wind and has made a difference, and the Canadian wind mar-
Hydropower Systems. ket is now growing rapidly. Provincial initiatives re-
quiring minimum regional manufacturing content
Canada participates in the International Elec- have contributed to the inception of a wind indus-
trotechnical Commission’s technical committee on trial base in Canada. Some provinces have required
Wind Turbines with status as a full participant. a portfolio share for wind electricity or have found
other means to encourage wind development.
6.0 The next term In the past, cost reductions have come about
mainly by a combined effort on improved design and
Canada’s wind research and development pri- manufacturing. This has led to the development of a
orities over the next five years are as follows: growing sustainable market serviced by large, glob-

IEA Wind Energy 93


National Activities

ally competitive, mostly European, companies that velopment of the Canadian Wind Energy Atlas and
have the means to fund R&D and improve products the development of detailed provincial wind atlases
and manufacturing methods. is helping bridge the gap.
Another key to cost reduction has been bet-
ter siting of wind turbines and wind farms; this is Authors: Antoine Lacroix and Jimmy Royer,
directly dependent on better knowledge of the geo- NRCan, Canada.
graphical distribution of the wind resource. The de-

94 2006 Annual Report


Denmark
12

1.0 Introduction sources, including stronger support for energy re-


search, development, and demonstration.
Today, more than 15% of Denmark’s energy
supplies come from renewable sources. Seventeen 2.0 Progress toward national objectives
percent of the electricity demand was produced by
wind turbines in 2006. Twenty-three percent of en- At the end of 2006, the Danish government
ergy supplies come from natural gas and 20% from undertook new political initiatives to promote
coal. Dependence on oil has been reduced to about further use of renewable energy sources to reduce
40%. In total, the degree of self-sufficiency is more CO 2 emissions. For wind energy, these initiatives
than 150%, and Denmark is a net exporter of oil and aim at supporting the national objectives based on
natural gas from its resources in the North Sea. the political agreement from 2004—construction
The installation of new wind power capac- of new offshore wind farms and a second repow-
ity in Denmark has been low during the past three ering scheme for the replacement of unfavorably
years, and in 2006 only 8 MW net new capacity located wind turbines with new wind turbines in
was installed. The key statistics for 2006 are shown other places. The agreement also introduced a mar-
in Table 1. However the Danish wind turbine ket-oriented pricing system for wind power and in-
manufacturers have been able to maintain a very creased research, development and demonstration
substantial export in 2006 of more than 5,000 of advanced energy technologies. Information about
MW/yr, which corresponded to a global mar- the agreement was reported in the 2004 IEA Wind
ket share of the Danish wind turbine industry of Energy Annual Report and can also be download-
more than 35%. ed from the Danish Energy Authority’s Web site
The international sustainability targets such (www.ens.dk). The 2004 energy policy agreement
as reduction of CO 2 emissions and economic con- was followed by the long-term strategy on energy
siderations have played significant roles in recent policy called Energy Strategy 2025. This was pub-
years. The tools of the Danish energy policy have lished in June 2005 and was reported on in the 2005
included subsidies for energy savings, green energy IEA Wind Energy Annual Report.
taxes, liberalization of the electricity and gas mar- The current initiatives are more ambitious
kets, and introduction of CO 2 quotas. and more specific about the use of renewable ener-
Toward the end of 2006, the Danish gov- gies in the Danish energy system. By 2025, the goal
ernment undertook new initiatives that emphasize is set to double from 15% to 30% the share of re-
globalization and improved use of renewable energy newable energy in the Danish energy supply, at the

Table 1 Key Statistics 2006: Denmark


Total installed wind generation 3,137 MW
New wind generation installed* 8 MW
Total electrical output from wind 6.108 TWh
Wind generation as % of national electric demand** 16.8 %
Target: N/A
* 12 MW installed; 4 MW removed
** Actual for 2006. (In Denmark the mean energy content in the wind was very low in 2006. In some years,
the same production capacity would have resulted in more than 20% of the same electricity demand.)

IEA Wind Energy 95


National Activities

Figure 1 High and low scenarios showing possible wind-power development in Denmark.

same time reducing the use of fossil fuels by 15%. 2.1 Siting of the new wind
To stabilize the overall Danish use of energy as it is turbines in Denmark
today, the level of energy savings will be increased The government intends that new wind ener-
to 1.25% annually. New technologies and saving gy capacity, both onshore and offshore, should con-
opportunities will be made available as a result of tinue to be established on an economically healthy
a decision to double the total Danish investments in basis. In this context, the physical location of new
energy R, D&D before 2010. One of the important offshore wind farms; the various considerations
contributions to the increased use of renewable en- relative to nature, environment, and landscape;
ergy in the Danish energy system will be an esti- and related challenges will all be assessed and up-
mated wind energy share of 50% for electricity pro- dated periodically.
duction in 2025. In December 2005, the Danish Energy Au-
To reach these goals and fulfill Energy Strat- thority undertook a new plan for siting the next
egy 2005, several priorities have been set. These in- generation of offshore wind farms between 2010
clude additional support for R, D&D in fuel cells; and 2025. A working group was formed to pro-
development of second-generation bioethanol pro- pose future Danish offshore wind turbine develop-
duction; and promotion of new research in wind ment. Two other working groups were set up, one
energy and other renewables. The R&D initiatives to identify sites for future turbines on land and one
are integrated into a new public program focusing to position new industrially developed turbines (0-
specifically on demonstration of new technolo- series) for testing by manufacturers and developers.
gies. The program was established at the beginning All three groups will limit their considerations to
of 2007 and has a total budget of about 1 billion wind turbines above 150 m in height. The working
DKK annually. group for siting on land has finished its task. The
The Danish Energy Authority has prepared Danish municipalities have been reorganized into
projections to 2025 on the production of electric- larger units, and the former regional authorities will
ity and district heating; these projections were also be handing over their responsibility for wind tur-
reported in the 2005 IEA Wind report. With the bine planning to the new, larger municipalities. The
new initiatives—and if the price of oil remains high following are important recommendations from the
(above 50 USD/barrel)—both wind energy and bio- working group:
mass will become so advantageous that they could • A large concentration of turbines at selected
amount to as much as 80% of Danish electricity con- locations is favored rather than a broad scatter-
sumption, with wind power expected to cover more ing of turbines in every type of landscape.
than 50% and biomass 30% (Figure 1).

96 2006 Annual Report


Denmark

• The new, larger municipalities should consequences of the transmission system to trans-
maintain a leading role in the planning port the power produced by the turbines.
process.
• Consideration must be given to neighbors 2.2 Installed capacity and production in 2006
and to various technical and planning matters The total capacity of wind power in Denmark
such as supply of power, energy, and climate increased by only 8 MW in 2006, which brought the
policy. end-of-year total to 3,137 MW. The total number of
• National authorities must provide back- turbines was reduced to 5,274. During 2006, only 9
ground information, planning tools, and new wind turbines were installed, and 28 turbines
knowledge about wind resources and natural were dismantled. The average capacity of those in-
constraints. stalled in 2006 was slightly higher than in 2005—
1.28 MW compared with 1.23 MW. See Figures 2,
The two working groups for offshore siting 3 and 4 for detailed history of installed capacity and
and positioning of test turbines did not finish their production in Denmark.
work in 2006, but it is expected that their final re- As was shown in Table 1, in 2006 electricity
ports will be published early in 2007. These groups from wind energy covered 16.8% of the electricity
identified the following important issues: consumption in Denmark, which was less than the
• Manufacturers have a strong need for test 18.5% in 2005. Both figures are relatively low be-
sites with realistic wind conditions so they can cause mean wind speed in Denmark in 2005 and
conduct measurements and test technology 2006 was lower than the average. The wind energy
landmarks before they introduce new turbine development has been shown graphically as a wind
developments to a truly commercial market. index that varies over the years. Recently, after dis-
• Testing of turbines on land is very impor- cussions about the accuracy of the index, a new sta-
tant and is cost-effective for many phases of tistical basis for such an index was proposed, and a
offshore turbine development. new index is under development. The total electric-
• In Denmark, turbine testing is of great ity production from wind energy in 2006 was 6,108
importance, because Denmark exports a con- GWh, a drop of about 8% from 2005.
siderable number of wind turbines to many In 2004 and 2005, observed CO 2 emissions
different markets that have varying require- decreased by 9.4% and 6.4%, respectively, relative
ments. to the year before. The drop was primarily due
• The number of test sites on land for very to decreasing electricity production and warmer
large turbines is limited, and therefore the sites weather. During these years, a large electricity ex-
must be used continuously with different tur- port changed into a net import. CO 2 emissions ad-
bines. The testing period may vary from a few justed for export/import and temperature variations
months to several years. showed a decrease of 1.5% in 2004 relative to 2003,
and there was no change from 2004 to 2005. Rela-
The working group that is identifying off- tive to 1990, the adjusted CO 2 emissions in 2005
shore sites is considered to be an update of a group showed a fall of 16.2%.
formed by Denmark’s 1997 Action Plan for Offshore The shift from coal to natural gas, renewable
Wind Power. However, since 1997, many conditions energy, and other measures has meant that, year by
have changed. The working group must identify year, less CO 2 is linked to each unit of fuel con-
several sites that have the potential for more than sumed. Thus, in 2005 each gigajoule (GJ) of adjust-
4,000 MW of offshore wind power to be installed ed gross energy consumption was linked to 60.3 kg
from 2015 to 2025. It is estimated that this amount CO 2 , against 74.2 kg in 1990. This corresponds to
of wind power can supply about half of Denmark’s an 18.7% reduction. Electricity production in 2005
future electricity consumption. in Denmark caused 522 grams of CO 2 emissions per
The working group must take into account kWh. In 1990, CO 2 emissions were 937 g/kWh of
all offshore constraints in Danish waters: sailing electricity produced. This corresponds to a reduc-
routes, military use, interests of the fishing industry, tion of 44.2%. This large reduction is attributable
and preservation of nature, including many visual to fuel conversions in electricity production and to
characteristics. Also, it must evaluate grid connec- the growing significance of CHP production and
tion possibilities, including considerations for and wind power.

IEA Wind Energy 97


National Activities

Figure 2 Net number and capacity of turbines in Denmark.

Denmark’s largest turbines installed on land 2.3 Horns Rev II


remain the five 3-MW turbines and five 2.75-MW The offshore wind farm Horns Rev II is to be
turbines, which were installed in 2002 at special located about 10 km west of the existing wind farm
sites. At the Risø test site at Høvsøre, one 3.6-MW at Horns Rev (Figure 5). The wind farm will cover
turbine and one 4.2-MW turbine are still being a total area of about 35 km 2 , and the wind farm will
tested. The two largest offshore wind farms are the be commissioned during 2009. Energinet.dk is re-
160-MW offshore wind farm at Horns Rev (80 Ves- sponsible for extending the electricity grid to the
tas 2-MW wind turbines placed in the North Sea 14 wind farm. The energy company Energi E2 (DONG
km to 20 km offshore Blaavands Huk) and the wind Energy) submitted the lowest tender for the Horns
farm at Nysted south of Lolland in inland waters (72 Rev II farm in 2005. The price to be paid is 0.518
Bonus 2.3-MW wind turbines). DKK /kWh for the first 50,000 full-load hours, cor-
Following the political agreement from 2004, responding to about twelve years of electricity pro-
two more offshore wind farms of 200 MW will duction. The DONG Energy company, DONG Re-
be established. Contract notices were published in newables, conducted feasibility studies and prepared
2004 for two sites, one for an area at Horns Rev and an environmental impact assessment (EIA) report
one for an area at Rødsand. that clarifies environmental and natural conditions.

Figure 3 Annual number of installed new turbines and their total capacity.

98 2006 Annual Report


Denmark

Figure 4 Annual number of decommissioned turbines and their total


capacity.

During the fall of 2006, the EIA report was distrib- More information about the deployment of
uted for a public hearing. offshore wind is available in the Danish Energy Au-
thority’s publication “Offshore Wind Power—Dan-
2.4 Rødsand II ish Experiences and Solutions,” which was published
At the end of 2005, the Danish Energy Au- for the Copenhagen Offshore Wind Conference,
thority received three tender bids for a 200-MW October 2005 (www.ens.dk/graphics/).
offshore wind farm concession at Rødsand. The
tenders are (1) a group consisting of two Dutch 3.0 Benefits to national economy
companies: Ballast Nedam Infra BV and Evelop BV,
(2) Rødsand II A/S (with Vattenfall as the main 3.1 Market characteristics
shareholder), and (3) a group consisting of DONG Sales by Danish wind turbine manufactur-
Vind A/S, Sydkraft AB (now E.ON Sweden), and ers Vestas Wind Systems and Siemens Wind Power
Energi E2 A/S. were 3,800 MW in 2005, which was higher than
The Danish Energy Authority evaluated the the figure for 2004 (3,290 MW). The figure for
tendering information and in April 2006 selected 2006 was 5,300 MW. The Danish home market
the group comprising Energi E2 A/S, E.ON Sweden, in 2006 amounted only to 12 MW, about the same
and DONG Vind A/S to establish the new offshore as in previous years. Therefore, nearly all turbines
wind farm neighboring Rødsand I (Nysted Offshore manufactured are exported, contributing more than
Wind Farm). The group submitted the lowest ten- 30 billion DKK per year to the national economy.
der—0.499 DKK /kWh for the first 50,000 full-load In 2006, the two large manufacturers Vestas and
hours, corresponding to about fourteen years of Siemens together had a world market share of more
electricity production. than 35%. More than 25,000 people are employed in
The offshore wind farm is to be located about the Danish wind sector.
3 km west of the existing wind farm at Rødsand. The market for onshore wind power in Den-
The wind farm will cover a total area of about 35 mark has not changed since the last annual report. It
km 2 . It has been agreed that the wind farm will be is still characterized by a low purchase price based
commissioned during 2010. Together with SEAS on the market-based price plus a CO 2 premium of
Transmission, Energinet.dk is responsible for ex- 0.10 DKK/kWh, with a cap of 0.36 DKK/kWh,
tending the electricity grid to the wind farm. The which was introduced in 2002. Future inland mar-
next steps are to conduct feasibility studies and pre- ket development will therefore mainly be tied to the
pare an EIA report. second repowering scheme that will replace smaller

IEA Wind Energy 99


National Activities

Figure 5 Two of the eighty turbines at the Horns Rev 160-MW offshore
wind farm (published with permission of DONG Energy and Vattenfall).

wind turbines with new, larger machines, which will Bonus Energy A/S) and Vestas Wind Systems A/S.
be paid an extra premium of 0.12 DKK/kWh. Only one company, Gaia Wind Energy A/S (owned
Offshore, the future market will be driven by Mita teknik A/S), today produces wind turbines
by political decisions based on the update of the for households. A couple of small companies are
Action Plan for Offshore Wind Power from 1997 planning to produce microturbines.
(described earlier). The most important suppliers of major com-
ponents for wind turbines are still LM Glasfiber
3.2 Industrial development and op- A/S, a leading producer of composite blades for
erational experience wind turbines; Mita Teknik A/S, which produces
controller and communication systems; and Svend-
3.2.1 Manufacturing borg Brakes A/S, a leading vendor of mechanical
Today the major Denmark-based manufactur- braking systems.
ers of large commercial wind turbines up to a size of In 2006, the new generation of 3-MW tur-
some megawatts are Siemens Wind Power (formerly bines has been produced to supply the emerging off-

100 2006 Annual Report


Denmark

shore wind farms. Vestas, especially, on the basis of tariat and information center. All documents related
experiences at Horns Rev, made a strong effort in to the certification scheme can be found on the Web
2005 and 2006 to improve the quality of its offshore site: www.wt-certification.dk.
wind turbines.
The two major organizations in Denmark 4.0 National incentive programs
that represent the owners and manufacturers, re-
spectively, are the Danish Wind Turbine Owners’ Denmark continues to follow incentive pro-
Association (www.dkvind.dk) and the Danish Wind grams adopted by the parliament in June 2004 that
Industry Association (www.windpower.org). specify the cost for access and connection of wind
turbines to the grid and the premium paid on top
3.2.2 Operational experience of the market price. According to the original bill
The technical availability of new wind tur- from December 2003, renewable energy certificates
bines on land in Denmark is usually in the range should be issued for electricity produced from re-
of 98% to 100%. Offshore, the availability of tur- newable energy, but the introduction of these cer-
bines on the small nearshore farms is also high. In tificates has been postponed and the certificates
2004, though, the availability on Horns Rev was temporarily replaced by a premium of 0.10 DKK/
low because the gears and transformers on all the kWh. All wind turbines except those installed by
Vestas turbines were undergoing comprehensive re- the utility sector before 2000 can obtain certificates
pair. During 2005 and 2006, all turbines operated at or the premium for twenty years. Details about the
nearly 100% with an availability of about 95% and purchase prices were listed in the 2004 IEA Wind
97% respectively, whereas the Siemens (Bonus) tur- Energy Annual Report.
bines at Nysted reached about 97% and 95%. During 2006, the market price plus premium
varied between 0.33 DKK/kWh and 0.43 DKK/
3.3 Economic details kWh (except during January, when adjustments
Operation and maintenance costs (service, were included). The premium becomes zero when
consumables, repair, insurance, administration, the market price exceeds 0.36 DKK/kWh, and in
lease of site, and so on) for new large turbines have 2006 this happened during one month in western
seldom been reported. Growing commercialization Denmark and during five months in eastern Den-
in the wind energy market makes it more difficult to mark. For these periods, the wind-power production
have data on hardware and O&M costs. Information actually reduced the market price of electricity.
from a study by the Danish Wind Turbine Owners’
Association about O&M for turbines between 600 5.0 R, D&D activities
kW and 1,300 kW was reported in the 2004 IEA
Wind Energy Annual Report. 5.1 National R, D&D efforts
A positive change in the funding of renewable
3.4 Certification of wind-power installations energy R&D began in 2005. A major increase in
Wind turbines installed in Denmark must ful- funding of wind R, D&D was introduced in 2006,
fill the Danish Wind Turbine Certification Scheme. and another increase is planned for 2007. Prior
The new scheme is based on the IEC WT01 System to the political agreements of 9 May 2003 and 29
for Conformity Testing and Certification of Wind March 2004, public funds (including funds financed
Turbines. Implementation of the IEC system means by consumers) reserved for energy R, D&D in 2005
a higher degree of mutual recognition of certificates amounted to approximately 273 million DKK. In
among countries and therefore easier access for all 2006, energy R, D&D funds totaled 337 million
manufacturers to sell their products internationally. DKK, and the budgets for 2007 show an increase
Certification bodies providing services according to 448 million DKK. Additionally, the national
to the new scheme now can operate after they have research councils and the newly established High
been accredited by any recognized accreditation Technology Foundation may also provide funds for
body worldwide. During 2006, a supplementary set energy research. The programs and available funds
of rules was developed for microturbines up to 2.5 are shown in Table 2.
m 2 in rotor diameter. This is expected to come into The Danish Energy Authority is responsible
force in the beginning of 2007. The Danish Energy for the administration of the Energy Research Pro-
Authority is responsible for the administration of gramme (EFP), which covers research in both con-
the scheme. Risø National Laboratory acts as secre-

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Table 2 Programs and available funds for renewable energy R&D projects including wind
energy (million DKK)
Program 2003 2004 2005 2006 2007
Energy Research 41.0 72.0 73.0 74.0 76.0
Energy Development and Demonstration Program — — — — 110.0
PSO*—electricity production 100.0 130.0 130.0 130.0 130.0
PSO*—electricity utilization 25.0 25.0 25.0 25.0 25.0
Renewable energy R&D—Danish Agency for Science 35.0 45.0 45.0 108.3 107.1
Technology and Innovation
Total 201.0 272.0 273.0 337.3 448.1
*PSO = public service obligation

ventional energy and renewable energy. The EFP Table 3 together with projects funded by other Dan-
is intended to establish technological foundations ish programs.
necessary for the practical implementation of Dan- Two million DKK is allocated to the secre-
ish energy policy. It is also meant to help strengthen tariat of the Danish Wind Turbine Certification
exports of Danish energy technology and know- Scheme to manage quality assurance of turbines.
how. Additionally, EFP supported international The actual certification of turbines and installations
R&D cooperation through IEA. Of the EFP budget, is carried out by private certification companies
7 million DKK is reserved for quality assurance for like DNV and GL. Denmark has also been active
renewable energy devices, including wind turbines. in international standardization through IEC and
A description of the EFP and the projects it supports CEN/CENELEC for several years. Standardization
is available (in Danish) on the Danish Energy Au- work has high priority and is supported through
thority’s Web site (refer to www.ens.dk). The 2006 R&D funds.
EFP budget was maintained at the level reached
in 2004 and 2005 due to the political agreement 5.2 The PSO program of
of 9 May 2003. transmission system operators
The total grants to wind energy projects sup- Transmission system operators have PSO-
ported by EFP in 2006 was 11.3 million DKK (9.5 subsidized R&D programs for noncommercial proj-
million DKK in 2005). The projects are listed in ects concerning new and environmentally friendly

Table 3 Important wind energy projects funded by Danish R&D programs


in 2006*
Project title (Funding source) Applicant Support (million
DKK)
Program for Research in Applied Aeroelasticity (EFP)** Risø 2.9
Simulation for Generalization of Wind Loads (EFP) Risø 2.0
Improved Performance Measurements; Characterization of Risø 2.6
the Wind Field (EFP)
Mesoscale Atmospheric Variability and the Variation of Risø 2.5
Wind and Production for Offshore Wind Farms (PSO***)
Noise and Optimization of Wind Farms (PSO) Delta 2.0
Low-Frequency Noise from Large Wind Turbines (EFP) Delta 2.9
* In addition to these projects, two other EFP projects were funded with a total amount of 0.9 million
DKK.
** EFP = Energy Research Programme
*** PSO = public service obligation

102 2006 Annual Report


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energy technologies. PSO stands for public service wind turbine design; (3) electrical systems, control,
obligation. The programs focus on development and integration; and (4) society, markets, and energy
of renewable energy technologies including wind systems. Many of the R&D projects listed in Table 3
power. Priority areas and the total budget are to are carried out by partners in the consortium.
be approved by the responsible minister and the Dan- Risø still owns and manages the test site for
ish Energy Authority. The PSO program emphasiz- multi-megawatt wind turbines at Høvsøre, a site
es the interaction between turbines and the power on the northwest coast of Jutland with high wind
system, including the wind-power plants’ abilities speeds. The annual average wind speed at the site
to contribute to regulation and stability. Grants at a height of 78 m is 9.1 m/s. The test site consists
from the PSO program in 2006 totaled 4.5 million of five test stands allowing turbines with heights up
DKK. The corresponding figure in 2005 was 15.9 to 165 m and a capacity of up to 5 MW each. The
million DKK. largest turbine being tested is the Vestas 4.2 MW
originally developed by NEG Micon. The test site is
5.3 Danish Council for Strategic Research shown in Figure 6.
For 2006, the budget for energy and envi- On 1 January 2007, Risø National Laborato-
ronmental research of the Danish Council for Stra- ry, the Danish Institute for Food and Veterinary Re-
tegic Research was increased to 108 million DKK, search, the Danish Institute for Fisheries Research,
and this level will be continued in 2007. However, the Danish National Space Center, and the Danish
in 2006 no wind energy projects were funded, Transport Research Institute merged with DTU as
whereas in 2005, 13.8 million DKK was granted to the continuing unit.
wind projects.
5.5 Collaborative research
5.4 Risø National Laboratory A possible constraint on the future deploy-
Risø National Laboratory is the largest re- ment of wind energy in the Danish energy system is
search institution for wind energy in Denmark. the issue of maintaining the power balance or deal-
Risø has formed a consortium with the Technical ing with surplus electricity. Due to the high share
University of Denmark (DTU), Aalborg University of electricity from CHP (about 50%) and the high
(AAU), and the Danish Hydraulic Institute (DHI). share from renewable electricity, mainly wind power
This builds on Risø’s existing close cooperation (about 25%), a substantial part of Danish electricity
with DTU on aeroelastic design and with AAU on production is influenced by weather conditions (out-
electrical design. The cross-disciplinary consortium door temperature and wind speed). This limits the
is intended to improve the network and coordina- system’s ability to adapt to quickly changing elec-
tion among research, education, and industry. The tricity prices on the market. On cold, windy nights,
research is planned and implemented around the an electricity surplus may arise. On one hand, this
following four themes: (1) climatic conditions; (2) is a successful demonstration of how far CHP and

Figure 6 Test site at Høvsøre.

IEA Wind Energy 103


National Activities

electricity from renewable energy can be developed. coordinator, thirty-eight partners participate in the
On the other hand, it poses a new challenge, to project, which was started early in 2006.
the electricity system in general and the system Denmark participates in IEA Wind Tasks 11,
operators in particular, to handle fluctuating elec- 20, 21, and 25. In Task 23, Risø National Laboratory
tricity production. serves as one of the subtask operators.
Electricity surplus is generally exported. If it • Task 11 – Base Technology Information
is not physically possible to export the entire sur- Exchange. The participation is important be-
plus, a critical situation arises in which wind capac- cause Denmark exports a great deal of wind
ity must be reduced. This is happening with in- turbine technology and know-how.
creasing frequency in the western part of Denmark. • Task 20 – HAWT Aerodynamics and
The economical benefit of using, rather than ex- Models from Wind Tunnel Measurements.
porting, the surplus depends on the power-market Participation is important for research, because
price of electricity and on the environmental value Denmark does not have access to large nation-
of electricity exported from Denmark. In general, al wind tunnel installations.
more flexibility in power production and demand • Task 21 – Dynamic Models of Wind Farms
means a more appropriate response to market condi- for Power System Studies. Modeling Danish
tions. Wind-generated surplus electricity is advan- power systems that are occasionally dominat-
tageous, lowering consumer prices. Tax reductions ed by wind power is necessary to develop the
on future production of heat from surplus electric- concept of a wind turbine as a wind-power sta-
ity will open up new market possibilities for wind tion, not just a decentralized production unit.
energy electricity. • Task 23 – Offshore Wind Energy
At the level of the European Union, a contract Technology Deployment. It is important to
has been signed that establishes a large project called consider cost reductions and environmental
UpWind. This project aims to design a wind turbine considerations when establishing deployment
of 8 MW to 10 MW that will be able to operate on- strategies. Participation in this task will benefit
shore and offshore on wind farms of several hundred partners of the EU UpWind project men-
megawatts. With Risø National Laboratory as the tioned previously.

Figure 7 Expected size of future wind turbines From the presentation “Why not just make
a 5 or 10 MW wind turbine?” Henrik Stiesdal, Siemens Wind Power. Danish Society of Wind
Energy, Wind Energy Conference, Ebeltoft, Denmark, October 2004.

104 2006 Annual Report


Denmark

• Task 25 – Power System Operation with The production cost for wind-generated
Large Amounts of Wind Power. Danish par- electricity per kilowatt hour is still decreasing, and
ticipation is important because critical issues the trend is that production from large-size tur-
for the Danish power system are balancing, in- bines is approaching competitiveness on equal terms
creased flexibility through DSM/storage, and with electricity production from conventional
grid stability. power stations.
The new initiatives taken recently that aim
6.0 The next term to fulfill the Energy Strategy 2025 will strengthen
wind energy R, D&D in Denmark. It is expected
With the Danish turbine market in 2006 at that focus will be shifted to increased demonstra-
nearly zero and the new, large offshore projects only tion of new technologies, and development of future
in the planning process, new information on invest- offshore wind will depend strongly on political de-
ment costs is unavailable. For the recent megawatt- cisions made on the basis of working group recom-
scale machines, the ex-works cost might be slightly mendations on siting turbines.
higher per kilowatt of generation capacity. But
as the wind resource at rotor height is greater Authors: Jørgen Lemming and Flemming Øster,
and the amount of wind energy harvested is there- Wind Energy Department, Risø National Labora-
fore better, the total economy of megawatt-scale tory; Lene Nielsen, Danish Energy Authority, Dan-
projects will be better. ish Ministry of Transport and Energy, Denmark.

IEA Wind Energy 105


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106 2006 Annual Report


European Commission
13

1.0 Introduction – wind energy capacity than has previously been commissioned in
deployment in the EU during 2006 the entire history of that country.
The performance of Portugal has also been
*LEGAL NOTICE: Neither the European outstanding, with 694 MW of new capacity. The
Commission nor any person acting on behalf of the United Kingdom, with 634 MW installed in 2006,
Commission is responsible for the use which might has witnessed a record year (47% increase). Other
be made of the following information. The views remarkable markets are those of Italy (417 MW) and
expressed in this document are the sole responsibil- Ireland (250 MW, an increase of 50% compared to
ity of the author and do not necessarily reflect the 2005).
views of the European Commission. New wind power installations in the new EU
Member States tripled from 60 MW in 2005 to 183
The market for European wind power broke MW in 2006, mainly driven by Poland, Lithuania,
new records in 2006. According to the figures re- and Hungary. Bulgaria installed 22 MW, while Ro-
leased by the European Wind Energy Association mania connected 1.3 MW. Eight EU countries now
7,588 MW of wind power capacity, worth some 9 have more than 1,000 MW of wind power capacity
billion €, was installed last year in the EU, an in- installed.
crease of 23% compared to 2005 (1). Figure 1 shows
the distribution of wind capacity across the coun- 2.0 The EU legislative
tries of Europe. framework for wind energy
The cumulative wind power capacity operat-
ing in the EU rose by 19% and now exceeds 48,000 2.1 The RES-E Directive
MW. In an average wind year, this will produce ap- An important contributor to the growth of
proximately 100 TWh of electricity, equal to 3.3% the European market for wind energy technology
of total EU electricity consumption. For the sev- has been effective EU framework legislation com-
enth consecutive year, wind power is second only to bined with legislation at the national level, aimed
gas-fired capacity (approximately 8,500 MW at reducing barriers to the development of wind
in 2006) (2) in terms of new electricity generating energy and other renewables. For electricity, the
installations. EU aims at having renewable sources provide 21%
Germany and Spain continue to attract the of EU electricity consumption by 2010. This target
majority of investments. In 2006, these two coun- was established by the EU Renewables Directive
tries represented 50% of the EU market. With 2,233 (77/2001/EC), which sets out differentiated na-
MW installed during 2006, a 23% increase com- tional indicative targets for each Member State. The
pared to 2005, Germany passed the 20,000 MW Renewables Directive has been a historical step in
mark. Spain was the second largest market in 2006, the delivery of renewable electricity and constitutes
with 1,587 MW. the main driving force behind new policies being
However, the figures confirm a trend in the implemented.
European market towards less reliance on the Ger- According to its last progress report (3), in the
man and Spanish markets and that a second wave of past two years 50% additional renewable electricity
Member States is heavily investing in wind energy. (non-hydro) has been generated, which implies that
Thus France moved up to the third place, with a re- Europe will, in all likelihood, come close to its target
cord installed capacity of 810 MW in 2006 – more by 2010. This positive overall trend should not dis-

IEA Wind Energy 107


National Activities

Figure 1 Cumulative wind power installed in Europe at the close of 2006. SOURCE: European
Wind Energy Association, 2007. Available at http://www.ewea.org.

guise the insufficient performance of many Member 2.2 Political support


States. In relation to wind, the progress report high- mechanisms for wind energy
lights that still one third of EU countries do not lend In the pursuit of the overall target of 21%
enough support to wind energy. The main cause of from renewable electricity by 2010, the Renew-
the slow development in some Member States is not ables Directive gives EU Member States freedom
deliberate policy but delays in authorization, unfair of choice regarding support mechanisms. Thus,
grid access conditions, and slow reinforcement of various schemes are operating in Europe, mainly
the electric power grid (4). feed-in tariffs, fixed premiums, green certificate sys-

108 2006 Annual Report


European Commission

tems, and tendering procedures. These schemes are 3.0 R&D wind energy projects fund-
generally complemented by tax incentives, environ- ed by the European Commission
mental taxes, contribution programs, or voluntary
agreements. The graph below gives an overview of During 2006, more than 20 R&D projects
renewable electricity support systems in the EU-25. were running with the support of the Fifth and Sixth
Framework Programmes of the European Union
2.3 Long-term planning (the Framework Programmes are the main EU-wide
In a broader context, the European Commis- tool to support strategic research areas).
sion launched in March 2006 a consultation process The management and monitoring of projects
to discuss the medium- and long-term strategy for is divided among two Directorate-Generals of the
an EU energy policy, including renewable energies. European Commission: the Directorate-General for
The Green Paper “A European Strategy for Sustain- Research (DG Research) for projects with medium-
able, Competitive and Secure Energy” (5) proposed to long-term impact, and the Directorate-General
the preparation of a “renewable energy roadmap” for Transport and Energy (DG TREN) for demon-
that would include an active program with specific stration projects with short- to medium-term impact
measures to ensure that existing targets are met; on the market.
consideration of which targets or objectives beyond The following paragraphs summarize both
2010 are necessary; and research, demonstration, the nature and the main data of EU R&D initiatives
and market replication initiatives. The Green Paper funded projects during 2006.
also foresaw the preparation of a European Strategic
Energy Technology Plan that aims at moving Eu- 3.1 DG Research Activities
rope towards a low carbon energy system, e.g. “by The projects running in 2006 can be divided
permitting a sharp increase in the share of lower cost into the following thematic categories:
renewables, including the roll-out of offshore wind.” 1. Wind turbines
The Energy Package released 10 January 2007 is the 2. Blades and rotors
Commission’s follow up from the consultation. 3. Wind resources forecasting and mapping

Figure 2 Overview of renewable electricity support systems in EU-25, and


Bulgaria (BU) and Romania (RO) (2005). SOURCE: “Monitoring and evalu-
ation of policy instruments to support renewable electricity in EU member
states;” Final report; Fraunhofer, ISI, EEG, 2006.

IEA Wind Energy 109


National Activities

4. Wind farm development and management Another key area where progress is being
5. Integration of wind power made is in the understanding of the material be-
havior of blades. In particular, the static and fatigue
In the descriptions below, the projects are properties of fiber-reinforced blades is being inves-
named through their acronym. tigated. As a part of this research, the OPTIMAT
BLADES project is progressing with a detailed para-
3.1.1 Wind turbines metric study, which will result in a comprehensive
The Integrated Project UPWIND started on and consistent database for fiber reinforced materi-
1 March 2006 and aims at developing design tools als to be used by the industry. Besides this database,
for future very large wind turbines (8-10 MW) design guidelines ready to be implemented into the
standing in wind farms of several hundreds of MW, design standards will be formulated.
both onshore and offshore. Coordinated by the Risø
National Laboratory (Denmark), this large long- 3.1.3 Wind resources forecasting and mapping
term research effort involves 42 partners and will The ANEMOS project seeks to substantially
run for five years. improve methods for short-term wind power fore-
casting. It responds to the needs of different end-us-
3.1.2 Blades and rotors ers through the development of approaches for single
The KNOW-BLADE project aims at reduc- wind farms, for regional or national forecasting, and
ing uncertainties in the aerodynamic and aero-elas- for different time scales ranging from a few hours
tic analyses by applying Navier-Stokes solvers in to a few days ahead. Emphasis is given to challeng-
place of today’s more common BEM (Blade Element ing situations such as complex terrain and extreme
Momentum theory) solvers. The areas looked into weather conditions, as well as to offshore predic-
in detail include 2-D and 3-D modeling, blade tip tion for which no specific tools currently exist. New
problems, and aerodynamic accessories such as vor- methods are being developed to estimate on-line the
tex generators and stall strips. level of uncertainty of the predictions and the ex-
Another important issue in this field is the pected risk based on ensemble weather forecasts.
verification and qualification of aerodynamic design Currently, a good number of research projects
tools. In order to enable the wind community to are underway on the European and national level in
improve, qualify, and verify their aerodynamic de- the fields of short-term forecasting of wind power,
sign tools, an experimental database obtained under offshore wind and wave resource prediction, and
controlled and well-established conditions is need- offshore wakes in large wind farms. The purpose of
ed. The MEXICO project seeks to provide such a the POW’WOW project is to coordinate the activi-
well-documented database through a set of detailed ties in these related fields, to spread the knowledge
wind-tunnel measurements in the German-Dutch gained from these projects among the partners and
DNW wind tunnel. colleagues, and to start work on some roadmaps
An area closely related to this is the produc- for the future. Therefore, the leaders of research
tion of aerodynamic noise from wind turbines, projects are assuming the function of a multiplier
which is still one of the major hindrances for the on- towards the larger research and user community.
shore exploitation of wind energy. In the SIROCCO Additionally, in the fields of short-term forecasting
project, an aerodynamic/acoustic design method is and offshore energy resource, Expert Groups will be
being developed with which silent airfoils can be formed to act as the central focus point for external
planned. The airfoils will be applied to existing tur- stakeholders. The liaison with other groups will also
bines and will be subjected to extensive measure- include groups outside of Europe.
ment campaigns.
The STABCON project is intended to im- 3.1.4 Wind farm development and management
prove knowledge in the field of aero-elastic stabil- To investigate whether a cost-effective, inte-
ity and control of large wind turbines. Through the grated condition monitoring system could be real-
formation of a European Network on aero-elastic ized in practice, the project CONMOW (Condition
stability, this project aims to develop reliable design Monitoring for Off-shore Wind Farms) has exten-
tools for aero-elastic stability analyses and the opti- sively instrumented a single turbine, a GE 1.5S lo-
mization of large wind turbines. cated at Zoetermeer (Netherlands), not only with

110 2006 Annual Report


European Commission

condition monitoring techniques but also with the potential to reduce the weight and thus the cost of
more “traditional” measurement systems. The main the generator installation by 70%. This is mainly
objective of this project is to improve monitoring achieved by applying a novel mechanical solution,
systems and to develop data processing techniques which drastically reduces the stiffness requirements
to create an early warning system for component and therefore permits a larger diameter generator.
failure. In this way both the amount of electrically active
material and the amount of construction material
3.2 DG TREN (Energy and Transport) activities are reduced. Thus the total wind turbine cost should
The five projects discussed below represent decrease by roughly 20%. The project aims to de-
a selection of demonstration actions funded within velop and test a commercial size (3 MW) NewGen
the Sixth Framework Programme of the European generator, and to demonstrate this generator in a
Union and managed by the DG TREN. large wind turbine, based on an existing wind tur-
HISP aims at installing three pilot modified bine design. The work will use the just finished de-
2-MW wind energy converters on Bockberget- velopment and laboratory testing of a pilot scale (140
Högsara Island (Finland) in a semi-offshore arctic kW) generator. A preliminary study reveals that a 20
environment. The objective of this project is to gain MW generator is feasible and compatible.
experience and to build up a track record of small In the project SIWT, the participants plan to
wind farms with multi-megawatt wind turbines develop a novel offshore wind turbine concept us-
built on island, to demonstrate high availability and ing a suction pile foundation. The subject concept
to verify the low cost foundation design with as little allows installation of the complete wind turbine,
alteration on the nature and inhabitants of the is- substructure, and suction pile foundation offshore in
lands as possible. one piece. The concept is virtually independent of
The aim of the STANDICE project is to the water depth because it uses floating equipment.
contribute to the development of an international This allows offshore wind farms to be installed in
standard for the design of marine structures such deeper waters out of sight from the coastline. The
as OWECS (Offshore Wind Energy Converters) unit will be fastened to the barge and is then ready
against ice loads with special emphasis on European to sail away to the offshore location. The complete
sub-arctic ice conditions, such as in the Baltic Sea. duration including tow and offshore installation is
The project should help to develop the ISO TC67 anticipated to take only 2-3 days subject to the dis-
SC7 WG8 “Arctic Offshore Structures Standard” tance to port. In the field, the barge will be moored
and especially the Sub-Arctic Supplement. The proj- and the unit will be lowered to the seafloor. The suc-
ect should also provide the industry and government tion piles will be installed using suction pumps. This
authorities in Europe with internationally standard- operation occurs in only 3-6 hours without noise,
ized ice load design criteria. i.e. there is limited disturbance to marine life. For
The DOWNVInD project seeks to pioneer the installation of a large wind farm involving say
cost-effective wind farms in water depths of up to 50-100 turbines, two complete spreads could be mo-
50 m and approximately 25 km away from the shore. bilized to make installation feasible in one season.
On 20 August 2006, history was made when the The complete wind turbine including foundation
first wind turbine of the DOWNVInD project was can be removed by reversing the installation proce-
loaded out from Nigg Bay, transported to the loca- dure. No structural elements will be left in or on
tion, and lifted onto its substructure. The machine to the seabed. If required, the complete unit can be
is the first wind turbine in international waters, the re-installed at another location.
furthest from shore (25 km), the biggest (5 MW),
and in the deepest water (42 m). DOWNVInD is 3.3 Future R&D projects
the flagship project for offshore wind energy devel- Several new wind projects are expected to
opment in Europe. It aims to install two demonstra- start in 2007 under the 6th Framework Programme.
tion wind turbines adjacent to the Beatrice oil field The new demonstration projects will address site
(east coast of Scotland). The turbines stand about development and operation of large wind turbines
one hundred and fifty meters above sea level. in complex terrain, development of a toolbox for the
The NEWGEN project aims at the develop- design of wind farms (focus on off-shore application)
ment of a new direct drive generator, which has the in order to reduce wind power generation costs, and

IEA Wind Energy 111


National Activities

secretariat activities of the new Wind Energy Tech- Commission and the European Parliament. Energy
nology Platform (see the next section). Commissioner Andris Piebalgs and Member of Par-
In addition, the project “EWIS” (European liament Mechtild Rothe gave the opening address.
Wind Integration Study), which gathers 15 Trans- The TPWind is an industry-led initiative,
mission System Operators representing 13 coun- channeled through the European Wind Energy
tries, aims at bringing common pan-European rec- Association. Its objective is to identify areas for in-
ommendations relating to wind energy penetration creased innovation, new and existing research, and
at large scale. development tasks, and to prioritize them on the ba-
A new framework programme – FP7 - for the sis of “must haves” versus “nice to haves.” Their pri-
period 2007 to 2013, was negotiated and approved mary aim is overall cost reductions through research
in December 2006, and a first call for proposals and economies of scale (market deployment). The
(6) is underway. The 7th Framework Programme platform will develop coherent recommendations
will have a total budget of 50.2 billion euros over detailing specific tasks, approaches, actors, and nec-
its seven years of functioning. In relation to energy essary infrastructure, in the context of private R&D
research, renewables and energy end-use efficiency and EU and Member States programs such as FP7.
will receive more than half of the budget for non- Finally it will assess the overall funding available to
nuclear research, meaning at least 1,175 million carry out this work from public and private sources.
euros over the seven years. The theme “Energy” in- The TPWind thus seeks to become the in-
cludes six topics related to wind under the “Renew- dispensable forum for the crystallization of policy
able Electricity” activity. First contracts should start and technology research and deployment pathways
at the end of 2007. for the wind energy sector, as well as a new oppor-
tunity for informal collaboration and coordination
3.4 European Commission contacts between Member States, including those less devel-
oped in wind energy terms.
DG RESEARCH Historically, the principal drivers for wind
Thierry LANGLOIS d’ESTAINTOT energy cost reductions have been R&D, for approxi-
European Commission mately 40%; and economies of scale, for around
Office CDMA 5/138 60%. The scope of TPWind mirrors this duality.
B-1049 Brussels Belgium TPWind will focus not only on short- to long-term
Tel. direct: +32-2-295.07.65 technological R&D but also on the potential market
Fax: +32-2-299.49.91 development “showstoppers” through a number of
Email: thierry.d’[email protected] policy working groups.
The following diagram reflects the structure
DG TREN of the European Wind Energy Technology Platform,
Roberto GAMBI which will be fully operational during the course of
European Commission 2007. The secretariat of the platform will be funded
Office DM24 3/104 by FP6.
B-1049 Brussels Belgium
Tel. direct: +32-2-299.81.75 TPWind Secretariat contact:
Fax: +32-2-296.62.61
Email: [email protected] TPWind Secretariat
Renewable Energy House
4.0 The European Wind Rue D’Arlon 63 - 65
Energy Technology Platform B-1040 Brussels Belgium
Tel.: +32-2-546.19.40
The European Wind Energy Technology Fax: +32-2-546.19.44
Platform TPWind was officially launched on 19 Oc- Email: [email protected]
tober 2006, with the full support of the European www.windplatform.eu

112 2006 Annual Report


European Commission

Figure 3 Proposed structure of TPWind. SOURCE: European Wind Energy Association. Avail-
able at http://www.windplatform.eu.

References and notes: gy/doc/2006_03_08_gp_document_en.pdf


6) PROVISIONAL* COOPERATION WORK
(1) Note that due to differences in statistical PROGRAMME 20071, EUROPEAN COMMIS-
methodology, there may be slight differences be- SION: C(2006) 6839, http://rp7.ffg.at/upload/
tween the figures quoted in this section and those in medialibrar y/cooperat ion _intro_w p _ 20 0701_
other sections of the IEA Wind Annual Report. en44564.pdf
2) According to Platts PowerVision, March 2007
3) COMMUNICATION FROM THE COM-
MISSION TO THE COUNCIL AND THE EU- Authors: Thierry Langlois d’Estaintot, European
ROPEAN PARLIAMENT, Green Paper follow-up Commission, DG Research; Roberto Gambi, Euro-
action report on progress in renewable electricity, pean Commission, DG TREN; Isabel Blanco, Euro-
COM (2006) 849, http://www.cdep.ro/docs_comi- pean Wind Energy Association.
sii/IE/CE/COM_2006_849_EN_ACTE_f.pdf
4) Page 10 of the Communication.
5) COMMUNICATION FROM THE COM-
MISSION TO THE COUNCIL AND THE EU-
ROPEAN PARLIAMENT, A European Strategy
for Sustainable, Competitive and Secure Energy,
COM (2006) 105
http://ec.europa.eu/energy/green-paper-ener-

IEA Wind Energy 113


National Activities

114 2006 Annual Report


Finland
14

1.0 Introduction at 500 MW in 2010. In the new energy and climate


strategy approved in 2006, only the target for RES
Energy in Finland is generated using a high was set: 31.5% of the total electricity consumption
share of renewables, mainly hydropower and bio- in 2010. The parliament required that RES-spe-
mass. Finland’s generating capacity is diverse: In cific programs be made, so targets for wind power
2006, 26% of gross demand was produced by nu- may be expected in the future. No major changes
clear, 13% by hydropower, and 31% from combined in measures to achieve the targets were suggested
heat and power (coal, gas, biomass, and peat). Gross by the new national energy and climate strategy.
electricity demand is about 90 TWh and is domi- A feed-in law for peat production was passed in
nated by energy-intensive industry. About half of 2006, so a feed-in tariff system for wind-, solar-, and
the electricity is consumed by the paper and metal wood-based electricity production will probably be
industries. discussed more after the parliamentary election in
Most of Finland’s hydropower resource has spring 2007.
already been used; there is potential for about 1 Progress in wind-power capacity has been
TWh/yr more. Biomass is used intensively by the slow compared with the goals. The funds available
pulp and paper industry, raising the share of biomass- for investment subsidies are inadequate to achieve
produced electricity to 11% in Finland. There is still any large increases in wind-power capacity. With
biomass potential available, and this is reflected by the existing support mechanisms, only 200 MW
the national energy strategy, which foresees biomass to 300 MW of wind-power capacity is foreseen for
as providing most of the increase in renewables. 2010.
Wind energy potential is located mostly on The development in wind-power capacity
coastal areas. There is a huge technical potential and production is presented in Figure 1. Two new
offshore, with ample shallow sites available. In the turbines totaling 4 MW were installed, bringing the
existing distribution network, the short-term po- total capacity to 86 MW at the end of 2006. To-
tential on the coastal areas of Finland is more than tal wind energy production in 2006 did not show
300 MW. Offshore, nearly 10,000 MW of wind- growth due to poor wind resource compared with
power potential has been identified in the process of 2005. The production of 154 GWh corresponds
renewing regional plans in Finland. to 0.2% of the annual gross electricity consumption
of Finland.
2.0 Progress toward national objectives There were 96 wind turbines in operation in
Finland at the end of 2006 (Figure 2). Average wind
In the 2001 National Climate Strategy, tar- turbine size is 900 kW. About 60% of the capacity
gets for wind-power deployment in Finland were set originates from Denmark, 23% from Finland, and

Table 1 Key Statistics 2006: Finland


Total installed wind generation 86 MW
New wind generation installed 4 MW
Total electrical output from wind 0.154 TWh
Wind generation as % of national electric demand 0.2%
Target: 31% share of RES electricity in 2010
(earlier target 500 MW for wind power
has been removed)

IEA Wind Energy 115


National Activities

Figure 1 Development of installed wind power capacity (MW) at end of year, yearly wind
power production (GWh), and wind production index (calculated from Finnish Meteorological
Institute wind-speed measurements converted to wind power production, 100% is average
production for 1987–2001).

17% from Germany. The size of the installed capac- and local energy works. Green electricity is offered
ity ranged from 75 kW to 3 MW. by most electric utilities; however, the marketing is
Several projects are in the building phase, so not very active. The supply of used turbines from
40 MW are expected in 2007. In addition, more than the first demonstration projects in Finland and from
100 MW of projects are planned. The largest proj- the Netherlands has encouraged some farmers to ac-
ects are in Pori (offshore demonstration; 45 MW in quire second-hand turbines—they are located inland
planning phase), Kemi (partly offshore; 30 MW in where the wind resource is limited.
2007 and 2008), and Tornio (28 MW in 2008). Good sites for larger wind farms on the coast-
The Åland islands between Finland and Swe- al areas are scarce. This is one reason that offshore
den constitute an autonomous region with its own projects are starting to interest the power compa-
legislation, budget, and energy policy. Wind ener- nies. The two first semi-offshore projects are to be
gy deployment there is steady and, considering the built in 2007 (six 2-MW turbines in Åland Båtskär
population, the targets are ambitious. Wind energy (Figure 3) and five 3-MW turbines in Kemi (Figure
is expected to cover 10% of electricity consumption 4), and the first demonstration project in Pori is in
in the region by 2006. This figure stood at 7% in the planning phase (45 MW).
2006, but when the 12-MW semi-offshore project
in Båtskär currently under construction comes on- 3.2 Industrial development and
line, the share will be about 20%. operational experience
The environmental benefit of wind power
production in Finland exceeded 100 million tons of 3.2.1 Industrial development
CO 2 savings per year in 2005. The Finnish manufacturer WinWinD pre-
sented its first 1-MW pilot plant in spring 2001 and
3.0 Benefits to national economy erected the 3-MW pilot plant in 2004 in Oulu. The
turbines operate at variable speed and have a slow-
3.1 Market characteristics speed planetary gearbox and a permanent-magnet
Most of the turbines in Finland are located generator. WinWinD has manufactured 23% of all
along the coast and are owned by power companies turbines in Finland (20 MW) (Figure 5). WinWinD

116 2006 Annual Report


Finland

Figure 2 Locations of wind turbines in Finland at the end of 2006.

started its export activities in 2004, selling turbines 40%. In early 2007, the Indian company took over
to Portugal and Sweden. In 2005, a joint venture in the majority of the company.
China was founded, and the first demonstration tur- Several industrial enterprises have developed
bine was erected. In 2006, their production capac- important businesses as suppliers of major compo-
ity was raised to 40 MW/yr, a 24-MW project in nents for wind turbines. For example, Moventas Oy
Estonia was in the building phase, and projects in (earlier Metso Drives Oy) is the biggest independent
the Czech Republic and France were announced. In manufacturer of gears and mechanical drives for
2006, a capital investment firm from India, Sterling wind turbines. ABB Oy is a world-leading producer
Infotech Group, became the largest single share- of generators and electrical drives for wind turbines.
holder of WinWinD with an ownership share of A new assembly plant for wind turbines and compo-

IEA Wind Energy 117


National Activities

Figure 3 Building the foundations on the cliffs and small islands in Åland archipelago,
Båtskär (Photo: Henrik Lindqvist).

Figure 4 Photo montage of the semi-offshore wind farm in Kemi, where ten 3-MW turbines
are to be built in 2007 and 2008. The existing 3-MW power plant can be seen as the left-
most turbine (Photo: H. Wallas).

nents was launched in 2005 by Hollming in Loviisa. The manufacturing industry has formed a
The 3-MW turbines of WinWinD, as well as direct- branch group under the Association of Metal Indus-
drive generators for Rotatek, are assembled there. tries, now called Technology Industries in Finland,
In addition, materials such as cast-iron products, to promote technology development and to export
tower materials, and glass-fiber products are pro- wind technology.
duced in Finland for the main wind turbine manu- The benefit to the national economy was es-
facturers. The total turnover was about 270 million timated by the wind technology manufacturing in-
€ in 2005; for 2006, the estimate exceeds 300 mil- dustry under Technology Industries in Finland in its
lion € (Figure 6). road map for wind-power technology in November

118 2006 Annual Report


Finland

2005. According to the calculations, investing a total The average capacity factor was higher between
of 220 million € for wind energy from 2006 to 2020 2000 and 2006 than it had been in the 1990s, even
could result in raising the yearly wind technology though the FMI wind energy index has been lower
exports from 200 million € to 1,400 million € per in recent years. This improved production is mainly
year in 2020 and creating 18,000 new jobs. Accord- because more megawatt-scale machines are reach-
ing to this scenario, total investment for wind power ing a higher wind resource.
in Finland would be 100 million € per year on aver- Average availability of the wind turbines
age from 2006 to 2020 (1,500 MW), and this would operating in Finland was 94% in 2006 (95% in
result in a CO 2 reduction of 7 million tons during 2005). Two turbines were available for very limited
those years (10 TWh total). amounts of time (37% and 60%) due to blade prob-
lems. Other causes for longer failures were repairs
3.2.2 Operational experience of gearbox, network connection, and control unit.
According to the statistics, performance of In 2006, there were more gearbox failures than
wind-power production has improved (Figure 7). usual—a total of 9 out of the 96 turbines in Finland.

Figure 5 Market shares of turbine manufacturers in Finland as a percent-


age of the total capacity at the end of 2006 (86 MW).

Figure 6 Finnish wind-sector turnover: wind power technology exports, investments, and
production turnover. Turnover from electricity production sales has been estimated from the
average spot price.

IEA Wind Energy 119


National Activities

Figure 7 Average capacity factor of wind turbines in Finland for all turbines and for
higher- and lower-hub-height turbines. The production index calculated from FMI
wind-speed measurements is also shown (100% corresponds to average production in
1987–2001).

Figure 8 The average size of installed capacity (rated power in kilowatts) is indicated by the
bar (for new and second-hand turbines). The number of installed turbines is marked in the
bars. The vertical line represents minimum and maximum capacity of turbines installed.

This exceeded the average failure rate during the have resulted in an increase of spot market prices;
five previous years. however, wind power can still only compete with
the best available sites. In January 2007, the aver-
3.3 Economic details age spot price dropped to below 30 €/MWh for
the first time since September 2005. This was due
At a good site on coastal Finland, the cost of to improved hydro resources as well as to a drop in
wind energy production could be about 45 €/MWh emission permit prices.
to 65 €/MWh without investment subsidy (15 years, All wind energy installations are commercial
7% internal rate of return) (Figure 9). The average power plants and have to find their customers via a
spot price in the electricity market Nordpool was free power market. In most cases, an agreement with
27 €/MWh to 31 €/MWh in 2004–2005 and rose a local utility is made that gives market access and
to 49 €/MWh in 2006 (Figure 10). Emission trade financial stability. Several companies offer green or
effects on the operating costs of thermal power specifically wind electricity certified by the Associa-

120 2006 Annual Report


Finland

tion for Nature Conservation. The average price for make it realistic to develop sites with a less-favor-
green or wind electricity is about 5 €/MWh higher able wind resource. Also, a possible feed-in tariff for
than the average price of standard electricity for wind energy would increase the wind-power market
households, but it is possible to switch from a stan- in Finland.
dard electricity supplier to a cheaper wind electricity
supplier. The market success for these initiatives has, 4.0 National incentive programs
however, been modest. Only a few percent of house-
hold consumers have changed electricity suppliers at Depending on the level of novelty of a wind
all since the electricity market liberalization. energy installation, an investment subsidy of up to
If the impacts of emission trading continue 40% can be awarded (Figure 11). Projects that ap-
to raise electricity market prices, this will improve plied for a subsidy between 2001 and 2006 received
the cost competitiveness of wind power and will also an investment subsidy of 35% on average. In addi-

Figure 9 Comparison of costs from wind and other sources in Finland. Assumptions for wind
generation: production 2,200 MWh/MW/yr; O&M costs 0.01 €/kWh; annuity 25 years and 5%.
Source: Risto Tarjanne, Lappeenranta Technical University, 2006.

Figure 10 Electricity prices for private customers. Norppa denotes green electricity from a
variety of renewable sources such as biomass, small hydro, and wind. Customer classes are
T1 and T2, single-family house; T3, single-family house with electrical space heating.

IEA Wind Energy 121


National Activities

Figure 11 Investment subsidies granted for wind power and the total amount of tax refunds
for wind electricity in Finland. The average investment subsidy as a percent of total invest-
ment costs is also shown. Most of the capacity granted with investment subsidies in 2006
(total 25 MW) will be built in 2007.

tion to the investment subsidy, a tax refund of 6.9 planning process is ongoing for the Gulf of Bothnia,
€/MWh is awarded. This corresponds to the tax on south, and the Gulf of Finland, east.
electricity paid by household consumers. An addition to the electricity market act pro-
The national energy and climate strategy was poses a ceiling to the distribution network charges
updated in 2006. The target for electricity produc- for distributed generation, including wind. Also the
tion from RES in Finland is 31.5% of gross demand; act proposes that grid reinforcement payments be
this is the same as in the European Union RES-E- borne by the consumers, not by the producer. The
Directive on national objectives concerning electric- charges vary across the country and in some areas
ity produced from renewable energy sources. This hinder local generation. Parliament approved the
target requires electricity production with renew- new act in February 2007.
able energies to increase by 8.3 TWh from the 1995
level. The major part, 75%, would be generated 5.0 R, D&D Activities
from biofuels. No major changes in measures were
suggested. The wind-specific target was dropped; 5.1 National R, D&D efforts
however, the parliament resolution requested that Since 1999, Finland has not had a national re-
this has to be done in 2007. search program for wind energy. Individual projects
Wind energy deployment is slow, but there can receive funding from the National Technology
is still continuing discussion of the environmental Development Agency (Tekes) according to the gen-
impact of wind turbines. Land-use restrictions and eral priorities and requirements for technical R&D
visual pollution, especially in relation to summer (Figure 12). Benefit to industry is stressed, as is the
residents and vacation activities, might yet prove a industry’s direct financial contribution to individual
significant obstacle to development. To overcome research projects. Priority is given to product devel-
these problems, the Ministry of Environment pub- opment and the introduction of new products. The
lished guidelines for planning and building permis- technology program DENSY (Distributed Energy
sion procedures for wind-power plants. Sites for wind Systems) (2003–2007) contains wind-related re-
power have been added to regional plans by the au- search projects on the grid connection of distributed
thorities. This will help future wind-power projects. energy systems (protection, voltage regulation) and
Large areas mostly offshore have already been added on storage of energy from distributed energy sys-
for the Gulf of Bothnia, north (about 4,000 MW), tems. National projects for collaboration with IEA
and the Gulf of Finland, west (about 200 MW). The Wind Tasks 19, 21, 24, and 25 are under the DEN-

122 2006 Annual Report


Finland

SY program. The technology program CLIMBUS in these scenarios, and production could reach an
(Business Opportunities in Mitigating Climate annual rate of 3,000 TWh/yr by 2030 (Figure 13).
Change) (2004–2008) aims to develop technology There are also several enterprise projects for
and business concepts related to reduction of green- technology development. WinWinD has developed
house gas emissions. 1-MW and 3-MW turbines for different weather
The first short-term forecasting project by conditions. ABB has developed a direct-drive multi-
Foreca, VTT Technical Research Centre and Cy- pole permanent-magnet wind turbine generator.
bersoft showed the benefits of grouping wind farms Rotatek Finland and Verteco (The Switch) are de-
along the coastline; dispersing the sites reduces veloping multi-megawatt generators and modular
forecasting errors. Forecast errors from day-ahead series-connected frequency converter. Pem-Energy
forecasts result in deviations in the bid amounts of Oy is producing small wind turbines for rural and
production to the electricity markets. For the devia- off-grid areas as well as for single-family houses,
tions, imbalance costs have to be paid. A case study farms, and summer cottages. Pem-Energy’s wind
of imbalance cost that was paid for by a Finnish turbine has a rotor diameter of 3.2 m and produc-
wind producer with four sites showed a price of 1.5 es 1.6 kW in 7 m/s wind. Production starts at low
€/MWh (2004 prices) when predicting production winds less than 2 m/s. A new turbine with a 1.5-m
without meteorological forecasts and 0.8 €/MWh rotor is under development. Oivallin has developed
when predicting production on the basis of meteo- an embedded condition-monitoring system to be
rological forecasts. The imbalance price is quite low used in wind turbines. The product is designed to be
compared with international experience and is due installed as an operations and maintenance product
to the well working Nordic imbalance market re- by a wind turbine or gear manufacturer. The system
sulting in low prices. Also the low amount of wind includes intelligent sensors, a master unit with Inter-
power in Finland means that wind-power produc- net connection, and server technology.
tion does not affect the overall power system imbal- As part of its strategic research program on
ance and the amount up or down regulation used in Smart machines (2002–2006), VTT has developed
the balancing market. technologies, components, and solutions for large
A project titled Demand for Finnish Energy wind turbines. As an example, technologies to con-
Technology and Business Opportunities in Global trol the shape of composite structures have been de-
Markets used the GlobalTimes model to analyze veloped at laboratory scale.
cost-optimal scenarios for future energy systems that
are trying to achieve the CO 2 reductions needed to 5.2 Collaborative research
limit global temperature increase to 2°C. The role of The VTT Technical Research Centre of Fin-
wind power in electricity generation grows rapidly land has been active in several international collab-

Figure 12 Development of R&D funding for wind power in Finland: Tekes funding and total
funding.

IEA Wind Energy 123


National Activities

Figure 13 Results from simulating a cost-effective optimized global electricity production


when restricting CO2 emissions

orative projects in the EU, Nordic, and IEA frame- SY in Finland. Task 19 work is connected to cold
works. In a demonstration project called HISP, three climate technology development in some national
2-MW direct-drive turbines (Harakosan Europe) enterprise projects.
are connected to a weak network. VTT is also in-
volved in projects UPWIND and TRADEWIND, 6.0 The Next Term
which started in 2006.
The Finnish Meteorological Institute (FMI) A slight growth of the wind-power market
has been active in EU collaboration for wind and ice in Finland is anticipated. There are about 20 MW
measurement technology. FMI is coordinating the currently in the building phase, and in 2007 up to
COST collaboration “Measuring and Forecasting 40 MW of new capacity will be added. In addition,
Atmospheric Icing of Structures,” in which VTT is projects totaling more than 100 MW are in various
also participating. planning phases in Finland. About 200 MW of the
Nordic Energy Research has two projects re- huge offshore potential could be realized before
lated to wind energy: VTT is participating in a grid 2010. The expected impact of emission trading on
integration project, and VTT and FMI are partici- electricity market prices will enhance the cost com-
pating in a project investigating how climate change petitiveness of wind power. If a feed-in tariff is in-
affects renewable energies. troduced, the future for wind power in Finland will
VTT is taking part in the following IEA be good.
Wind research tasks: A bottleneck in wind promotion is the update
• Task 11 Base technology information ex- of wind resource mapping in Finland. The current
change wind atlas is from 1992, and a lot of uncertainty re-
• Task 19 Wind energy in cold climates (op- mains when estimating the production for the taller
erating agent) multi-megawatt machines being planned for the for-
• Task 21 Dynamic models of wind farms for ested coastal areas of Finland.
power system studies The wind potential at arctic fell areas in Fin-
• Task 24 Integration of wind and hydropow- land still needs a next-generation blade heating sys-
er systems tem to materialize. Increasing global demand for
• Task 25 Design and operation of power sys- ice-free turbines is foreseen.
tems with large amounts of wind power
(operating agent) Authors: Hannele Holttinen and Esa Peltola,
The work of Tasks 21, 24, and 25 is closely VTT Technical Research Centre of Finland,
related to the national technology program DEN- Finland.

124 2006 Annual Report


Germany
15

1.0 Introduction meeting these targets. Federal authorities have iden-


tified suitable areas for offshore wind farms in the
Against the predicted trend in market devel- North Sea and Baltic Sea, making planning easier
opment, new installed onshore wind power in Ger- for investors. The Infrastructure Acceleration Act
many grew again in 2006 to a level higher than it came into force at the end of 2006. The law im-
had been two years earlier. Installed power increased proves conditions for investors in offshore wind
by 23.5% in comparison to 2005. At this stage, wind because it obligates transmission system operators
energy is potentially able to produce 7.0% of Ger- to pay for and install the grid connection from the
man annual net electrical energy consumption. onshore grid access point to the offshore wind farm.
Irrespective of a relatively weak wind supply over In addition, relevant research projects flank the leg-
the year, energy production in 2006 amounted to islative improvements. The main activity is to es-
30.5 TWh. This is an increase of 12.5% over 2005. tablish an offshore test site in the North Sea. Also
Installed capacity exceeded the 20,000-MW mark of importance is the erection of two more offshore
(Figure 1). research platforms and further developments to
Wind energy is the leading renewable energy adapt multi-megawatt turbine technology to off-
in Germany with a share of 5% of national final elec- shore conditions.
trical energy consumption. It is followed by hydro- The leading federal state in Germany in wind
power (3.5%) and electrical energy conversion from energy deployment is Lower Saxony, with 5,282
biomass (3%). The wind industry is further develop- MW installed and potentially 10.0 TWh produced
ing into a powerful industrial market segment with in 2006. In three German states—Saxony-Anhalt,
high potential for employment and high demands Schleswig-Holstein, and Mecklenburg–Western
on R&D activities in a broad spectrum of technical Pomerania in the northern lowlands—more than
sciences. At least 70,000 employees are working in 33% of the energy consumed is provided by wind.
the wind energy industry to date. In the two southernmost states, located nearly in the
Although offshore development in Germany center of Europe, wind provides about 0.5% of the
is currently behind the strategic goal set by the gov- energy consumed (1).
ernment in 2002, medium- and long-term targets Repowering is still behind its technical pos-
for offshore expansion in the German seas (1,500 sibilities but became for the first time a visible factor
MW by 2011; up to 25,000 MW by 2030) are still with 135 MW in 2006.
relevant. Important steps were taken in 2006 toward

Table 1 Key Statistics 2006: Germany (1,2,3)


Total installed wind generation 20,622 MW
New wind generation installed 2,233 MW
Total electrical output from wind 30.5 TWh
Wind generation as % of national electric demand 5%
Target: 12.5% from renewable energy (RE) in
2010 (status in 2006: 12% from RE)

IEA Wind Energy 125


National Activities

Figure 1 Development of the yearly and total installed capacity, DEWI.

2.0 Progress toward national objectives to EU targets, 12.5% of consumption is to be met by


renewable energy sources in Germany by 2010 (4). It
The German government acknowledges the is realistic to expect that this target will be surpassed
importance of renewable energies, and in this regard in 2007 (Tables 1 and 2).
national policy was generally continued. The legisla-
tive framework was improved in 2006 with respect 3.0 Benefits to national economy
to offshore wind energy (see Section 1.0). The use of
renewable energies continued to rise in 2006. Their German turbine manufacturers participated
share in primary energy consumption increased in the growing world wind market. Some manufac-
from 4.7% in 2005 to approximately 5.8% in 2006. turers doubled their production capacity in 2006.
The contribution by wind to total final energy sup- Further new production capacity for 5-MW-class
ply (electricity, heating, fuels) increased to 7.4%. turbines is under construction. Generally, turbines
Renewable energies accounted for 12% of the with a capacity of less than 2 MW are increasingly
electrical energy consumption in 2006, compared difficult to place in the market. The number of em-
with 10.4% in 2005—an increase of 15%. According ployees in the wind industry has grown continu-

Table 2 Additional data about wind energy deployment in Germany at the end
of 2006 (1, 2)
Number of turbines 18,685
Number of new turbines in 2006 1,208
Potential energy production 38.8 TWh
Potential part of German net electrical energy 7.0% *
consumption
Total German net electrical 540 TWh**
energy consumption
CO2 reduction in 2006 26.1 Million t.
* Estimation
** According VDEW

126 2006 Annual Report


Germany

ously during past years (Figure 2) and was at 70,000 5.0 New R, D&D activities
in 2006.
The total contribution of the wind sector to Applied research in the field of renewable en-
the German economy (wind sector turnover) in ergies (except for biomass) is overseen by the Federal
2005 amounted to about 7.3 billion €. The value Ministry for the Environment, Nature Conservation
of domestic manufacturing, taking into account and Nuclear Safety (BMU). Project Management
turbine and component suppliers, was 4.8 billion €. Jülich (PtJ) is in charge of managing and control-
Detailed economic data for 2006 will be published ling the wind energy research program on behalf of
in July 2007. BMU. In 2006, BMU started 24 wind energy–relat-
The four leading manufacturers on the Ger- ed projects with a total of 16 million € for the years
man market for turbines installed in 2006 were 2006 through 2009. The funds for ongoing projects
Enercon, Vestas, REpower Systems, and GE Energy for 2006 amounted to 9.6 million € (Figure 4).
(Table 3) (1). A new announcement for proposed research
in the field of wind energy published in September
4.0 National incentive programs 2006 focused on cost reduction; improved reliabil-
ity; optimization of maintenance; grid integration;
The Renewable Energy Sources Act (EEG; and specific technologies for offshore such as foun-
see the report for Germany in IEA Wind Annual dations, logistics, and reduction of environmental
Report 2005) provides the main stimulation and in- impacts (5). Of special interest in the field of offshore
centives for the German wind market. Grid opera- wind energy are demonstration and test activities.
tors must pay 0.0836 €/kWh to the turbine owner Among other research topics, the subject of
for turbines installed in 2006 at least for five years grid integration of wind energy became increasingly
(0.0853 €/kWh for turbines installed in 2005). De- important. A new research network is dealing with
pending on how local wind conditions compare to a the storage of wind energy in underground air-pres-
reference value, the tariff will be reduced after five sure storage areas in combination with the energetic
years. So the median feed-in tariff over 20 years for deployment of low concentrated North Sea gas re-
turbines installed in 2006 ranges from 0.0836 €/ sources. Existing underground holes resulting from
kWh to 0.0605 €/kWh. The EEG requires the start- former salt mines and ore mines are being evaluated
ing tariff to be reduced by 2% yearly. A turbine in- concerning their availability as air-pressure storage
stalled in 2007 will therefore receive a starting tariff areas for the intermediate storage of wind energy.
of 0.0819 €/kWh. Special tariffs exist for onshore A relevant cost factor especially for offshore
repowering and for offshore wind farms. The EEG wind energy utilization in deep waters is the founda-
will be audited in 2007 to adapt prices for renew- tion. A new research network of steel and pipe com-
ables to new market conditions and technological panies, the offshore construction industry, a turbine
developments.

Figure 2 Employees in Germany’s wind industry.

IEA Wind Energy 127


National Activities

Figure 3 Market share of turbine manufacturers in Germany, DEWI

Table 3 Leading manufacturers for turbines installed in 2006


Company Market share 2006 (%) Market share 2005 (%)
Enercon 38.4 41.7
Vestas 34.6 26.8
REpower Systems 7.6 5.5
GE Energy 5.7 8.1

manufacturer, and research institutes was launched So far, no German test facility has existed for
in 2006 to work toward the optimization of tripod rotor blade manufacturers to conduct static and dy-
and jacket foundations. The aim is to optimize the namic tests of multi-megawatt turbine rotor blades.
use of materails, the onshore and offshore construc- In 2006, such a test center was launched at the
tion process, and to improve the technical reliability Fraunhofer Center for Wind Energy and Marine
of foundations. Technologies in Bremerhaven, and it will start its
Offshore installation and transport are becom- work in 2008.
ing a bottleneck for Europe’s offshore construction Germany continued bilateral cooperation
activities. Specifications for new offshore transport with Denmark on ecological research in 2006.
and construction equipment have been evaluated in Common projects investigated harbor porpoises and
a project of the offshore construction industry. The birds at the two Danish offshore wind farms Horns
assumptions are for the markets of the Irish Sea, the Rev and Nysted. A new project of the German Ma-
North Sea, and the Baltic Sea by the middle of the rine Museum Stralsund and the Danish National
next decade to be 2,500 MW/yr and 550 founda- Environmental Institute is to develop standard-
tions/yr. Effective equipment should be available at ized methods for the calibration and signal analysis
least 75% of each month regardless of weather. Spec- of porpoise hydrophones (PODs). In related work,
ifications for new equipment have been formulated temperature measurements at the sea bottom above
on the basis of these assumptions. the 110-kV cables of the Nysted wind farm showed
no dominant influence by the cable on the tempera-

128 2006 Annual Report


Germany

Figure 4 Government funds for wind energy research.

ture of the sediment surface layer above the cable. 1 (www.fino-offshore.de) in the North Sea), a test
Compared with a reference site far from the cable, site will consist of 12 turbines of the 5-MW class.
the temperature did not exceed the 2-K threshold at The demonstration project will be operated by the
a sediment depth of 20 cm. German Offshore Test Site and Infrastructure Ltd.
(DOTI), which was launched by the power compa-
5.1 Offshore test site nies Vattenfall Europe, E.on, and Energiewerke We-
According to the approval documents of ser Ems (EWE).
the demonstration offshore wind farm Borkum Much effort has been made to establish a
West (which is near the research platform FINO comprehensive research program at the German

Figure 5 REpower 5M installed on a jacket foundation in the Scottish North Sea in August
2006. Source: REpower Systems Inc.

IEA Wind Energy 129


National Activities

offshore test site. Project proposals concerning off- pects to demonstration of new technologies as well
shore-specific aspects of generators, gears, and rotor as accompanying ecological research.
blades as well as investigations of external condi-
tions, grid aspects, and condition monitoring have 5.2 Multi-megawatt turbine prototypes
been evaluated and are in the planning phase. The Two new multi-megawatt prototype turbines
main research topics have been agreed to by the fu- were tested in Germany in 2006. The DeWind Ltd.
ture operator, and progress has been made in prepar- 2-MW type D8.2 was erected in the near-shore
ing for potential research activities. Test site research test site of DEWI-OCC in Cuxhaven. The low ro-
will be conducted as a collaborative program of re- tor speed is converted to a constant rotation speed,
search institutes and industry ranging from basic as- and the resultant current of the synchronous gen-

Figure 6 M5000 construction on shore in Bremerhaven at an offshore tripod


foundation. Source: Multibrid Entwicklungsgesellschaft Ltd.

130 2006 Annual Report


Germany

erator can be directly fed into the electrical grid (6). FINO 2 (www.fino2.de) is located in the Bal-
Another new 2.5-MW prototype is the Fuhrländer tic Sea at the borders of the German, Swedish, and
FL 2500-100. The first turbine was erected on a Danish EEZ. The monopile foundation was rammed
160-m tower manufactured by Seeba. Another eight in October 2006. Offshore installation of the deck
turbines will be installed in 2007 on 100-m steel and the measuring mast will occur in June 2007.
towers (6). FINO 3 (www.fino3.de) will be commis-
Work continued with other large turbines. sioned in summer 2008 in the northern part of the
The Enercon company installed two E 112/6-MW German EEZ of the North Sea about 70 km west
turbines, an enhancement of the E 112/4.5-MW tur- of Sylt Island. A special focus of FINO 3 will be
bine. Special features are the gearless generator and geophysical investigations concerning interactions
a wide range of usable wind velocities. A REpower between sediment and monopile and lightning on
5M was erected in 2006 in the Scottish Sea (Talis- the open sea and its possible impact on turbine com-
man Beatrice Gas Field project) (Figure 5). And two ponents.
REpower 5MW were erected in November 2006 FINO 2 and FINO 3 will be constructed as
at the DEWI-OCC near the coast test site in Cux- monopiles. The wind measuring systems of all three
haven. A third type of wind turbine in the 5-MW platforms are based on the same principles to make
class is the Multibrid Entwicklungsgesellschaft Ltd the data comparable. All data will be available on-
M5000 (Figure 6). The second M5000 was erected line at http://fino.bsh.de.
in 2006 near the coast in Bremerhaven on a tripod
foundation. This will allow researchers to study 6.0 Next-term activities
how loads affect the overall construction of turbine,
tower, and foundation. Results of such onshore ex- The Second Scientific BMU Conference on
periments will contribute to the optimization of the Offshore Wind Energy Deployment took place in
future serial production of tripod foundations (7). A February 2007 in Berlin prior to the European Poli-
special feature of this turbine type is the relatively cy Seminar on Offshore Wind Energy Deployment.
low weight (440 tonnes) of the gearbox and rotor. It focused on ecological aspects. In conjunction with
Finally, a newcomer on the multi-megawatt market the BMU-Conference, an IEA topical expert meet-
is BARD Engineering Ltd. The BARD company is ing on offshore wind and waves measurements was
pushing the development of a new 5-MW turbine organized by the IEA Wind Energy Agreement and
to be erected in mid-2007 at the company’s own the FINO 1 team (Germanischer Lloyd Industrial
near-coast test site. BARD has also developed a new Services Ltd., commissioned with operation and
foundation type called “multipile” designed for wa- maintenance by BMU).
ter depths from 25 m to 50 m. A kickoff presentation of the offshore test site
research network is planned for spring 2008.
5.3 Scientific measuring programs The European Policy Seminar on Offshore
Final results from the Scientific Measuring Wind Energy Deployment proposed the extension
and Evaluation Programme (WMEP) were pre- of the Danish-German Agreement to a other inter-
sented in 2006. WMEP developed 63,000 reports ested states. Germany, Denmark, and Sweden are in
detailing energy output data; operation experiences; discussion to formulate such an agreement.
and data about damage caused by lightning, storms,
ice, and grid failures. The data were collected from 7.0 References
1,500 wind turbines together with wind data at 60
locations. This unique database will be extended to (1) Windenergie Aktuell, Björn Johnsen, Er-
future offshore wind farms starting with the above- neuerbare Energien 2, February 2007, pp. 14–16.
mentioned test site. (2) Klimaschutz: Windenergie stellt Emission-
The research platform FINO 1 (www.fino- shandel in den Schatten. Downloaded from www.
offshore.de) in the North Sea has been in operation wind-energie.de.
for more than three years. Wind, wave, and load data (3) Federal Ministry for the Environment, De-
are now available online (http://fino.bsh.de). FINO velopment of Renewable Energies in Germany in
1 will become still more important for offshore 2006; Data Basis from the Working Group on Re-
wind energy research after the offshore turbine test newable Energies/Statistics (AGEE-Stat); down-
site is established there. loaded from www.erneuerbare-energien.de/in-
halt/38803/36356/.

IEA Wind Energy 131


National Activities

(4) Zwölf Prozent Ökostrom in Deutschland. Authors: Joachim Kutscher, Forschungszentrum


Downloaded from www.vdew.de. Jülich GmbH; and Ralf Christmann, Federal Minis-
(5) Downloaded from www.erneuerbare-ener- try for the Environment, Nature Conservation and
gien.de/inhalt/37840. Nuclear Safety, Germany.
(6) Neue Multimegawatt-Typen, Erneuerbare
Energien 3, 2007, p. 18.
(7) Messen, testen, konstruieren, Erneuerbare
Energien 1, 2007, p. 28.

132 2006 Annual Report


Greece
16

1.0 Introduction tricity consumption in 2010, production of electric


power from renewable energy sources on the order
Greece is making profound institutional, reg- of 13.7 TWh (including large-scale hydroelectric
ulatory, engineering, and funding efforts in order to plants) is set as the goal for 2010. To meet these goals,
meet the indicative target set by Directive 2001/77/ the installed capacity of wind farms should reach the
EC. Among the aims of the Greek government are level of 3,370 MW, and the corresponding energy
to exploit the country’s abundant wind potential to generated should be on the order of 7 TWh. Accord-
minimize CO 2 emissions and to replace expensive ing to the most recent estimates (Third National Re-
imported fuel currently used to produce electricity port Regarding the Penetration Level of Renewable
in much of the Greek territory. Energy Sources Up to Year 2010, October 2005),
In June 2006, the Greek government’s Min- the gross consumption of electric power in Greece
istry for Development introduced new legislation, in 2010 will reach the level of 68 TWh.
Law 3468 for the Generation of Electricity Using In 2006, the installed capacity of the wind
Renewable Energy Sources and High-Efficiency turbines reached 749 MW, showing an increase over
Cogeneration of Electricity and Heat (Official the previous year of 24%. In eight separate proj-
Gazette A’ 129/27.06.2006). The most important ects, 124 wind energy conversion systems with an
provisions of the law are the increase of the feed-in installed capacity of approximately 142 MW were
tariffs, the extension of the duration of the power connected to the electricity supply network. Ac-
purchase agreement to 20 years, and the reduction cording to the Third National Report cited in the
of bureaucratic obstacles. previous paragraph, the current estimate of wind
energy capacity in 2010 ranges between 2,100 MW
2.0 Progress toward national objectives (conservative scenario) and 3,270 MW (optimistic
scenario). Development of wind energy during the
Directive 2001/77/EC, On the Promotion past 10 years is shown in Figure 1, which depicts the
of Electricity Produced from Renewable Energy total installed capacity per year.
Sources in the Internal Electricity Market, in its an- The energy produced from wind turbines
nex sets an indicative target for Greece to cover a during 2006 was approximately 1,580 GWh. The
part of its gross national electricity consumption by energy produced in 2005, 2004, 2003, 2002, 2001,
2010 from renewable energy equal to 20.1%, with and 2000 was 1,270 GWh, 1,120 GWh, 850 GWh,
the contribution of large-scale hydroelectric plants 650 GWh, 756 GWh, and 460 GWh, respectively.
included. This target is also compatible with the in- Figure 2 shows the electricity produced from wind
ternational commitments of the country resulting turbines during the past ten years.
from the Kyoto Protocol. Based on expected elec-

Table 1 Key Statistics 2006: Greece


Total installed wind generation 749 MW
New wind generation installed 142 MW
Total electrical output from wind 1.58 TWh
Wind generation as % of national electric demand 3%
Target: 3,370 MW

IEA Wind Energy 133


National Activities

Figure 1 Cumulative installed wind capacity in Greece

3.0 Benefits to national economy in projects related to wind energy. Wind energy
deployment has become a challenging area for de-
3.1 Market characteristics velopment all over the country, especially in areas
There is increasing interest, mainly among having poor infrastructure, where some of the most
construction companies and individual investors, promising sites for wind energy development can be

Figure 2 Electricity produced from wind turbines in Greece


134 2006 Annual Report
Greece

found. Although manufacturing of wind turbines The average capacity of the wind turbines
has not been established in Greece, there would be installed in 2006 was 1,146 kW, while the average
considerable domestic added value, especially with capacity of all the wind turbines operating in the
regard to the infrastructure works—for example, grid country was 712 kW (Figure 4). Market share per
strengthening, tower manufacturing, road and foun- manufacturer is depicted in Figures 5 and 6.
dation construction, civil engineering works, and so Due to the relatively short operation periods
on. In addition, new jobs would be created related of most wind energy projects, limited malfunctions
to the maintenance and operation of the wind farms have been reported since their commissioning; these
in mainly underdeveloped areas. At present, an ex- have been mainly related to gearbox failure and
panding network of highly experienced engineering lightning strikes. No major events leading to exten-
firms has been created, and these firms are currently sive wind farm outages have been reported.
working on all phases of the development of new
wind energy projects. Thus, wind energy is gradu- 3.3 Economic details
ally becoming a considerable player contributing to The total cost of wind-power projects depends
the development of the country. The distribution of on the wind turbine type, size, and accessibility. This
installed wind farms throughout Greece is depicted cost varies between 900 €/kW and 1,100 €/kW and
in Figure 3. is mainly influenced by international market prices
and interconnection costs. The cost of generated
3.2 Industrial development and wind power could be assumed to be between 0.026
operational experience €/kWh and 0.047 €/kWh, depending on the site and
No significant manufacturing developments project cost. The typical interest rate for financing
occurred in 2006 apart from the continuing involve- wind energy projects ranges between 6% and 8%.
ment of the Greek steel industry in wind turbine The power generation system in Greece is
tower manufacturing. divided into two categories: the so-called intercon-

Figure 3 Distribution of installed wind farms in Greece

IEA Wind Energy 135


National Activities

Figure 4 Average capacity of the wind turbines installed in 2006 and operating in the
country

Figure 5 Market share of wind turbine manufacturers (as a percentage of


total installed wind turbines)

Table 2 Energy tariff


Type of electric Mainland interconnected Non-interconnected autonomous power
energy production system (€/MWh) plants, islands (€/MWh)
Wind onshore 73.0 84.6
Wind offshore 90.0 90.0

136 2006 Annual Report


Greece

Figure 6 Market share of wind turbine manufacturers (as a percentage


of total installed capacity of wind turbines)

nected system of the mainland and the autonomous and 2 were financed with 45% due to their location.
power plants of the islands. The energy tariffs for the Additionally, within the second call of Measure 6.5
various kinds of installation are shown in Table 2. (August 2005), 7 projects were approved in October
2006. In this call, the financing includes both the
4.0 National incentive programs eligible construction costs and the transmission costs
of the wind parks. An installation permit is neces-
Financial support for wind energy projects is sary to finance a project.
provided by the state in the framework of the Op- Eventually, financial support for wind energy
erational Program for Competitiveness (OPC) and investments is foreseen through the Law for Devel-
the Law for Development 3299/04. The OPC raises opment 3299/2004, which provides grants for up to
resources from the Third Community Support 50% of the total investment.
Framework to provide public aid to renewable ener-
gy sources and energy saving, substitution, and other 5.0 R, D&D activities
energy-related actions. The public aid accounts for
30% of the eligible cost of the projects; it goes up The Ministry for Development, through its
to 50% in the case of transmission lines that will be General Secretariat for Research and Development
constructed to connect renewable energy plants to (GSRT), promotes all R&D activities in the country,
the grids. During 2006, Measure 2.1, Action 2.1.3, including applied and basic R&D as well as dem-
and Measure 6.5 of the OPC were open for proposal onstration projects. Key areas of R&D in the field
submission. of wind energy in Greece are wind assessment and
In this framework, the Center for Renew- characterization, standards and certification, wind
able Energy Sources (CRES) acts as an intermedi- turbine development, aerodynamics, structural
ate agent in charge of administering and managing loads, blade development, noise, power quality, wind
projects included in Measure 2.1, Action 2.1.4, and desalination, and autonomous power system integra-
Measure 6.5 of the OPC. More specifically, CRES is tion. There is limited activity in Greece concerning
the thematic intermediate agent responsible for ad- offshore deployment.
ministering and managing all wind energy projects
on the mainland and those with nominal capacity 5.1 Activities of CRES
greater than 5 MW in the Greek islands. Measure CRES is the national organization for the pro-
6.5 finances the transmission cost for wind parks motion of renewable energy in Greece. It is mainly
whose development has already been financed involved in applied R&D in the fields of aerodynam-
within Measure 2.1, Action 2.1.3. During 2006 ics, structural loads, noise, power quality, variable
and within Measure 6.5, Action 6.5.1.A, 38 projects speed, wind desalination, standards and certification,
were approved, of these, 36 were financed with 50% wind assessment, and integration. CRES has devel-

IEA Wind Energy 137


National Activities

oped and operates its Laboratory for Wind Turbine • 1.A.1: Integral design approach and stan-
Testing, which has been accredited under the terms dards—performing aeroelastic studies.
of ISO/IEC 17025:2005. • 1.A.2: Metrology—aiming to identify mea-
Several research projects were running at surement problems related to wind energy
CRES during 2006, co-funded by the European applications and to develop methodologies for
Commission (EC) and the Greek Secretariat for Re- eliminating them.
search and Technology. These research projects had • 1.B.1: Innovative rotor blade—performing
the following goals: aeroelastic studies and contributing to the joint
• Characterizing the main features of com- development for the rotor blade.
plex or mountainous sites and identifying the • 1.B.4: Major barriers imposed by upscaling
crucial parameters affecting both the pow- to 20 MW—deriving similarity rules for appli-
er performance and the loading of different cation to wind turbine upscaling.
types of wind turbines operating in such envi- • WP 2: Aerodynamics and aeroelastics—
ronments. identifying important nonlinear effects in
• Developing wind turbines for installation large wind turbines and improving the avail-
in hostile environments. able aeroelastic tools.
• Improving the damping characteristics of • WP 3: Rotor structure and materials—de-
wind turbine blades. veloping tools for performing probabilistic
• Developing new techniques for power qual- strength analysis and executing experiments
ity measurement and assessment. for improving knowledge of materials.
• Increasing understanding of wind turbine • WP 6: Remote sensing—developing experi-
standardization procedures. mental techniques for measuring wind at very
• Developing blade material testing tech- high heights using both LIDAR and SODAR.
niques within the in-house experimental • WP 8: Flow—developing tools for wake
facility. modeling in complex-terrain environment.
• Understanding generic aerodynamic per-
formance of wind turbine blades through Furthermore, OPTIMAT BLADES, a re-
computational fluid dynamics (CFD) tech- search project, was completed in 2006. This project
niques. focused on providing design recommendations for
• Developing cost-effective micrositing tech- the optimized use of materials for rotor blades; it
niques for complex terrain topographies. was co-funded by the EC under the Sixth Frame-
work program. A wealth of experimental data gath-
More specifically, CRES participates in UP- ered within this project, including results of CRES
WIND, one of the largest research projects in the research, is available to the public at http://www.kc-
area of wind energy. UPWIND is co-funded by the wmc.nl/optimat_blades.
EC under the Sixth Framework Program, which During 2006, CRES was granted a contract by
was launched during 2006. UPWIND looks toward the Regulatory Authority for Energy for the update
the wind power of tomorrow: very large turbines (8 of the Wind Atlas of Greece. The project aims at the
MW to 10 MW) in wind farms of several hundred refinement of the existing Wind Atlas and involves
MW, both onshore and offshore. The project aims the installation of 40 new 30-m and 50-m masts in
at the development and verification of substantially selected areas around the country. The project will
improved models of the principal wind turbine com- be completed by the end of 2008.
ponents, which the industry needs for the design and The Laboratory for Wind Turbine Testing
manufacture of these very large wind turbines in of CRES was granted funding for a project entitled
very large wind farms. Development of Infrastructures and Laboratory
Within the UPWIND framework, CRES is Support of CRES. This project is in the framework
the leader for work package 1.A.3, Training and Ed- of Measure 4.2, Action 4.2.2 of the Competitiveness
ucation. This package is aimed at disseminating the operational program, which aims at upgrading the
newest R&D knowledge through the development laboratory’s equipment, infrastructure, and services.
of modules for international courses in the field of In this framework, the laboratory was equipped with
wind power and the necessary supporting educa- a state-of-the-art LIDAR system for wind-speed
tional and training materials. CRES also participates measurements up to 150 m high.
in the following work packages:

138 2006 Annual Report


Greece

CRES also participates in the project entitled • Development of laboratory infrastructure


Floating, Autonomous, Ecological and Effective De- for renewable and distributed energy systems;
salination Unit, co-financed by Measure 4.5, Action participation in relevant laboratory and pres-
4.5.1 of the Competitiveness operational program. tandardization activity networks.
The project involves the design and development
of an autonomous floating wind-powered reverse- Since 1990, the Applied Mechanics Section
osmosis (RO) unit for seawater desalination. The of the Department of Mechanical Engineering and
system mainly consists of a 30-kW wind generator, Aeronautics, University of Patras (UP), has focused
an RO unit of 80 m3/day potable water capacity, a on educational and R&D activities involving com-
battery bank, and the control system. posite materials and structures. Emphasis is given
to anisotropic material property characterization,
5.2 University research structural design, and dynamics of composite rotor
Basic R&D on wind energy is mainly per- blades of wind turbines.
formed at the country’s technical universities. Since
1980, the National Technical University of Athens 5.3 Participation in IEA Wind tasks
(NTUA) has been actively involved in both rotor Greece participates in Tasks 11 and 20. Task
aerodynamics and integration of wind energy into 11, Base Technology Information Exchange, pro-
the electrical grid. motes the understanding of wind turbine technol-
In 2006, the Electric Power Division of ogy through cooperative activities and information
NTUA continued its research activities on renew- exchange with other countries on R&D topics of
able and distributed energy resources, focusing on common interest. Extra emphasis has been given
several aspects of their technologies and on grid-in- through the years, especially at NTUA and CRES,
tegration issues. Specific research areas include the to the development of aerodynamic models of wind
following: turbines. This activity is supported by the involve-
• Microgrids with high penetration from ment in the activities of Task 20, HAWT Aerody-
distributed energy resources, concentrating namics and Models from Wind Tunnel Measure-
on simulation algorithms and on control and ments.
communication technologies.
• Advanced short-term wind-power forecast- 6.0 The next term
ing functions for operational planning using
numerical weather predictions and advanced The new Law 3468 is expected to promote
artificial intelligence techniques. renewable energy sources, especially wind energy.
• Integration of wind power into the electri- This law and the national land planning study now
cal grids, including isolated grids of small and being prepared are expected to further facilitate in-
medium-sized islands. Application studies for vestments in renewable energy systems. However,
power systems in Greece and Cyprus. reaching the targets set for 2010 is still uncertain,
• Technical issues and feasibility studies for unless additional measures and policies—both insti-
the interconnection of isolated island grids to tutional and technological—are undertaken. A criti-
the mainland power system. cal point for the achievement of the targets is the
• Investigation of the PV penetration poten- completion of the extensive projects destined to
tial in isolated island grids with significant boost transmission capacity of the grids in the areas
wind turbine installed capacities. of great interest for wind energy deployment (east-
• Power quality analysis of wind turbines and ern Macedonia/Thrace, southeastern Peloponnese,
wind farms, with a particular emphasis on har- and Euboea). Significant institutional measures have
monic emissions. been implemented in the new legal framework,
• Design of electrical generators and convert- whereas technological actions such as the intercon-
ers for small wind turbine applications, with nection of the northeastern Cyclades Islands com-
a particular focus on permanent magnet syn- plex with the interconnected system are still to be
chronous generators. decided and implemented.
• Research on small standalone systems fed
by renewables; design of the electrical system Authors: P. Vionis, E. Tzen, K. Rossis, CRES,
and control for completely autonomous, wind- Greece.
driven desalination systems.

IEA Wind Energy 139


National Activities

140 2006 Annual Report


Ireland
17

1.0 Introduction displace more than 3 million tonnes of CO 2 emis-


sions. Further analysis by government-convened
Wind energy makes a very real and signifi- groups has concluded that to meet this 2010 target,
cant contribution to electricity supply in Ireland. In wind power must output 3.42 TWh annually. This
2005 wind power has overtook hydroelectricity as would provide 9.4% of total electricity demand or
being the primary source of renewable electricity in the annual electricity demand of almost 620,000
Ireland. At the end of 2006, 62 wind farms were households. It would displace 2.34 million tonnes
operating in Ireland with a total generating capacity of CO 2 emissions. An installed wind power capacity
744 MW. In 2006, an estimated 1.62 TWh were of approximately 1,100 MW would be required to
produced from wind power which equated to 5.59% provide this energy output.
of current national electricity supply. Wind farms On 19 June 2006 a new 2010 renewable elec-
displaced 1,000,000 tonnes of CO 2 emissions from tricity target of 15% of electricity demand requir-
conventional power plant. ing 5.43 TWh/yr from renewable sources was an-
Ireland needs to increase the share of renew- nounced by Minister Noel Dempsey, the Minister
able energy in its electricity generating mix in order for Communication, Marine and Natural Resourc-
to: 1) contribute to reducing national CO 2 emissions es, whose ministerial portfolio includes renewable
to meet Kyoto commitments; 2) reduce dependency energy. If this increase is to be met by wind pow-
on imported fossil fuels thus improving energy se- er, it would then contribute 11.4% or 4.13 TWh.
curity; 3) mitigate the impact upon the economy of This would be equivalent to the annual electric-
rising fossil fuel prices. ity requirements of 980,000 households and would
require an installed wind generating capacity of
2.0 Progress toward National Objectives 1,350 MW.
In March 2007, a 2020 renewable electricity
Ireland has made a commitment to a target target of 33% of electricity demand was announced
of meeting 13.2% of its electricity demand, or 4.78 in the government white paper “Delivering a Sus-
TWh/yr from renewable energy sources by 2010. tainable Energy Future for Ireland.” Wind power
This is equivalent to the annual electricity demand will make the greatest contribution to achieving this
of approximately 860,000 households and would target because no other renewable energy resource

Table 1 Key Statistics 2006: Ireland


Total installed wind generation 744 MW
New wind generation installed 251 MW
Total electrical output from wind 1.62 TWh
Wind generation as % of national electric demand 5.59%
Target: 500 MW additional renewable energy
2001-2005.
15% of electricity demand from
renewables by 2010
33% of electricity demand from
renewables by 2020

IEA Wind Energy 141


National Activities

available to Ireland can make such a contribution to by the rate at which offers for grid connection are is-
national electricity demand on the required times- sued and the lead times for the associated grid infra-
cale at a reasonable cost. structure. The installation rate must decline before
By May 2007, 65 wind farms with a total 2020 if the connection capacity created is limited to
generating capacity of 782 MW were connected the capacity required to meet the government target
to the electricity network in Ireland. A further 34 for 2020.
wind farms and wind farm extensions are planned
totalling 449 MW in generating capacity with con- 3.0 Benefits to National Economy
nection agreements to connect to the electricity
network in coming years. This brings the total con- 3.1 Market characteristics
nected and committed capacity to over 1,230 MW At the end of 2006, the total value of wind
which is close to meeting the revised national target farm construction activity in Ireland could be esti-
for 2010 committed to by Minister Dempsey. mated at 375 million € . As 80% of this cost is taken
Additional applications for connection for up by the wind turbine and electrical equipment
planned wind farms total 3,314 MW in capacity. costs, which are imported, the benefit to the local
Were all of these wind farms connected to the elec- economy from wind farm construction is 20% of
tricity system, the total installed capacity would be this or 75 million € .
in excess of 4,500 MW which could potentially pro- The value of the annual maintenance activ-
vide 12 TWh/yr, equivalent to one third of Ireland’s ity in existing wind farms is reported to be approxi-
2020 projected electricity demand. mately 3.5% of the capital value of the wind farms.
Also in 2006, projects to be included in “Gate This comes to approximately 26 million € . A large
2” of the group processing scheme for renewable portion of maintenance costs would be for imported
generators grid connection applications were an- replacement parts, so the value to the local economy
nounced. This scheme was introduced in 2004 sub- is much lower. The value of operating and mainte-
sequent to a large backlog of wind farm connection nance activity will, however, occupy a proportion-
applications having amassed after a temporary mor- ately higher fraction of the total economic value of
atorium was imposed by the TSO on issuing grid wind energy as the installed capacity of wind farms
connection offers. Tranches or rounds of renewable increases.
generator applications to be processed concurrently
are announced at regular intervals and termed Gates. 3.2 Industrial development and
Gate 1 included a modest 350 MW of renewable operational experience
generation capacity. After consultation with wind There is no significant wind turbine manu-
energy sector participants, a more ambitious Gate facturing industry in Ireland. There have been
2 was launched, which encompassed 1,350 MW of several initiatives to set up manufacture of specific
renewable generation. The offers issued under the wind turbine components and to manufacture mi-
group processing scheme are primarily on the basis cro-scale turbines. Sustainable Energy Ireland has
of combined connections for clustered projects, with funded several R&D projects in these areas and
single isolated projects being treated individually. these are detailed below. Several companies in Ire-
For three years running, approximately 250 land have been successful in supplying components
MW of new wind capacity has been commissioned in the wind turbine supply chain, in particular elec-
annually in the Republic of Ireland. This confirms trical and electronic components.
that the step-change that occurred in 2004, when
the installation rate increased almost four-fold, can 3.3 Economic details
be sustained by the wind industry in Ireland into the Wind generating plant in Ireland currently
future. Indeed this and the numbers of planning per- produces electricity at lower cost than the most ef-
missions and grid connection applications indicate ficient combined cycle gas turbines (CCGT’s), the
that the wind sector can deliver the installed capac- current conventional generating technology of
ity required to meet the 2020 government renew- choice in Ireland. The Government Renewable En-
able energy targets a number of years in advance of ergy Feed-in Tariff (REFIT) price support scheme
2020. The actual rate of installation will be limited underwrites a maximum price of 57 € /MWh for
wind farms larger than 5 MW whereas the official

142 2006 Annual Report


Ireland

2007 benchmark market Best New Entrant BNE details of the scheme have been published but it has
price for electricity from new combined cycle gas not yet been launched.
turbines, is 86 € / MWh.
The public service obligation mechanism is a 5.0 RD&D Activities
manner of recovering the costs of certain electricity
generation activities, which are judged to be for the 5.1 Wind energy R&D policy
public good, from a levy on all electricity consum- The Department of Communications Marine
ers. Activities supported under this mechanism in- and Natural Resources (DCMNR) has the overall
clude electricity generation from renewable energy wind energy policy brief in the Irish government.
and from peat and emergency peaking power plant. There is no specific R&D budget or program dedi-
Many of the historic AER contracts have current cated solely to wind energy research. Two programs
prices for electricity below the proxy benchmark exist under which wind energy R&D may be funded:
market price for electricity “the Best New Entrant” 1) the Parsons Energy R&D Awards and 2) the Sus-
or BNE. In such a case, rather than ESBCS being tainable Energy Ireland Renewable Energy R,D&D
paid for the excess in renewable electricity price the Programme.
government receives a credit which is offset against Sustainable Energy Ireland (SEI) has been
other PSO costs. charged with operating the sole current govern-
In 2007, renewable electricity generation ment-funded wind energy R&D program. The
supported under the PSO mechanism, and primar- SEI RERDD Programme has an indicative budget
ily wind energy, rather than requiring compensation of 16 million € for the period from 2001 to 2006.
payment to the relevant supplier, will bring about a Of this, over 4 million € has been allocated to wind
surplus of 29.8 million € returned to the PSO fund. R&D projects to date. Significant wind R&D Proj-
This will largely offset net costs of 9.5 million € for ects funded under this program were detailed in the
peat-fired generation and 24.2 million € for emer- 2005 IEA Wind Annual Report. There is ongoing
gency generation (33.7 million € total). It has result- progress on many of these projects, including IEA
ed in a decision by the Commission for Energy Reg- Task 21 Dynamic Models of Wind Farms for Power
ulation not to levy a PSO on consumers in 2007. System Studies. No significant new wind energy
The steadily improving competitive position R&D projects were approved for funding in 2005.
of wind power as compared with fossil fuelled gen- In 2006, the DCMNR announced an energy re-
eration has resulted in benefits for the electricity search program and a governing council was formed
consumer. The average bi-monthly electricity bill to oversee that program.
for urban householders in Ireland is 106 or 638 € an-
nually excluding the PSO. The improvement in the 5.2 Wind R D&D achievements
relative cost of wind energy has resulted in the annu-
al PSO levy for domestic consumers excluding value 5.2.1 All Island (Ireland) Grid Study on Renewable
added tax (VAT) reducing from 23.84 € in 2005 to Energy
9.68 € in 2006 to zero in 2007. (Including VAT = 27 This is the most significant current R&D ini-
€ in 2005 to 11 € in 2006 to zero in 2007). This is tiative. It was begun in June 2006 by the Republic
equivalent to a reduction in the bi-monthly domes- of Ireland and Northern Ireland Ministers to in-
tic bill of 1.83 € (including VAT) or 1.7% in 2007 vestigate grid issues for renewable energy to 2020.
compared to 2006 and of 4.51 € (including VAT) or Wind energy will contribute the greatest percent-
4.25% in 2007 compared to 2005. age of renewable energy among the renewables in
Ireland. The Steering Group includes: DCMNR/
4.0 National Incentive Programs DETI/ESBNG/SONI/SEI/Action Renewables. Its
objectives are to examine penetrations of renewable
A change of the price support mechanism for energy sources of 15%, 20%, and 30%; determine
renewable electricity in Ireland was announced in the cost of various renewable energy mix options;
April 2006. The previous competitive tendering sys- determine technical issues for high renewable en-
tem is to be replaced with a feed-in tariff providing ergy penetration; and inform the government in
prices of 54 to 57 € /MWh for wind projects greater detail of the implications of renewable energy policy
than and less than 5 MW capacity respectively. Draft choices.

IEA Wind Energy 143


National Activities

Four workstreams are operating: The system will also determine the optimum sched-
• Workstream 1: All-Island Renewable ule of release of the energy from storage to ensure
Energy Resource Study for 2020 that value and revenues can be maximized. The
• Workstream 2: Examines the Issues for study is expected to be completed by the end of this
System Operation with 2002 RE Penetration year and will be used to determine the economic po-
• Workstream 3: Study on the Network tential for battery storage operating in the forthcom-
Issues for Incorporating 2020 RE Penetration ing Single Electricity Market in Ireland. Electricity
• Workstream 4: An Economic Study storage technology will enable the development of
Drawing the Results of Previous Worksteams all intermittent renewable energy sources including
Together to Inform Governments of Costs of future wave energy systems.
Policy Options The results of the feasibility study for the
implementation of this wind energy storage facility
5.2.2 SEI-Funded Electricity Storage Demonstration will be published by SEI in April 2007. The analy-
SEI has provided 50% funding to Tapbury sis into the feasibility of using an innovative energy
Management for a study into a new electricity stor- storage system showed how such a system could
age system which could guarantee an uninterrupted support an uninterrupted supply of wind-gener-
supply of wind generation to the national grid. Tap- ated electricity to the national grid and significantly
bury Management is to begin testing a Vanadium improve the efficiency of the energy produced. The
Redox Battery Storage System (VRBESS™) at Sorne study was jointly funded by SEI and Tapbury Man-
Hill Windfarm in Donegal. The system is from the agement Limited, which oversees the management
Canadian Company VRB Power Systems Inc. If of Sorne Hill Windfarm. It examined the costs and
successful, the technology would allow wind energy benefits of integrating a battery-based power storage
generated at off-peak times to be stored and supplied system with a 6-MW wind farm. The purpose of
to the grid at a scheduled time. The energy storage the report was to determine the optimum size for
system has the potential to increase the reliability such a system in order to deliver an optimum return
of wind energy supply and thereby reduce the cost on investment, and to review the main benefits that
of providing the power reserve requirements from this system would offer. The report concluded that
electricity generation plants as more wind power the optimum battery is a 2-MW capacity battery de-
connects to the system. livering six hours of electricity storage.
An integrated wind power forecasting system
will be developed which will determine the storage Author: John McCann, Sustainable Energy Ire-
requirements to ensure a smooth reliable delivery of land, Ireland.
power from the wind farm over a 24 hour period.

144 2006 Annual Report


Italy
18

1.0 Introduction In addition to the average lengthy time re-


quired to connect wind turbines to the grid, the
The program of the new Italian govern- shortage of turbine components is a serious con-
ment, which has been in charge since May 2006 straint. Now and in the near future, this shortage is
and includes the Green Party, provides for several likely to noticeably affect the growth of the sector.
measures aimed at improving and encouraging the However, the main problem still remains the nega-
deployment of renewable energy sources (RES). For tive approach of many regions toward wind energy.
the time being, however, the wind sector is await- At the moment, only the Apulia and Campania
ing new concrete actions, particularly those devot- regions (where the commercial phase of the wind
ed to overcoming non-technical barriers ensuing sector started in 1996) and Sicily have shown confi-
from bureaucracy, authorization procedures, and so dence that wind power could be an actual opportu-
on—not to mention the opposition to generating nity for their territory.
plants (particularly new wind farms) often shown Nevertheless, at the end of December 2006 a
by regions. more restrictive regulation about new-plant permit-
The promising trend that started in 2004 was ting, partly involving wind projects already approved
partially confirmed in 2006, thanks to the comple- but for which construction had not yet started, also
tion of many wind farms at the end of the year. In came up in Sicily. This worried many investors on
fact, until mid-November 2006, less than 170 MW the island. It is worth noting that in Sardinia, the
of new wind-power capacity had been installed, and energy and environment plan issued in late 2005 set
the largest contribution, more than 240 MW, was a ceiling of 550 MW of wind capacity.
added only in the last forty days of 2006. This result The news is better from the Apulia region,
cannot be considered a full success, in that the 2006 where a new energy and environmental plan has
growth was slightly lower than the previous year. been approved. This regional plan now considers
Nevertheless, considering that many additional tur- wind energy as a strategic option and thus ends a
bines have already been erected and are only waiting moratorium on authorizing wind plants. Conse-
to be connected to the grid—and taking into account quently, many wind projects have been presented,
the other work in progress and the new major orders and more than 800 MW of new capacity has already
placed for turbine supply—one could say that the been authorized. It is estimated that about 60% of
very optimistic forecasts for 2007 and 2008 have a that capacity will be completed by the end of 2007.
good chance of becoming a reality (Table 1).

Table 1 Key Statistics 2006: Italy


Total installed wind generation 2,123 MW
New wind generation installed 417 MW*
Total electrical output from wind 3.215 TWh
Wind generation as % of national electric demand 1%
Formal wind target: 2,500 MW by 2008–2012

Decree 387/2003: 22% of electricity from RES by 2010


Government’s Current Target: 25% of electricity from RES by 2011
* 417-12MW = Net increase 405

IEA Wind Energy 145


National Activities

Even in the mountain areas, the three-year fixed for wind energy for the period 2008–2012 has
trend toward the use of larger machines was also remained the same as in the 1999 White Paper—that
confirmed during 2006, notwithstanding the greater is, 5 TWh/year, corresponding to about 2,500 MW
complexity of such installations . In fact, just a little capacity. Such a capacity target is now likely to be
less than 50% of new wind-power capacity was set achieved in mid-2007. According to ENEA, on the
up with turbines in the range of 1.5 MW to 2 MW. basis of work currently in progress, newly placed
The remainder consisted of 850-kW machines. orders for wind turbines, and the current energy
According to Italy’s 2006 provisional electric- and environment plan (PEAR) of the Apulia region,
ity statistics set out by the grid operator TERNA, another 2,500 MW could be added by 2010. This
domestic net electricity production in 2006 was 302 would bring the overall capacity up to about 5,000
TWh, an increase of 3.8% over the previous year’s MW, with an energy contribution from wind of
production. At 46 TWh, the share of imported elec- around 10 TWh/yr.
tricity was 7.8% lower than in the previous year.
Electrical demand on the domestic grid (including 2.1 Commercial development
customer loads and grid losses) was 338 TWh, 2.2% As 2006 ended, wind-power capacity in Ita-
more than in 2005. On the whole, Italy’s 2006 gross ly had reached 2,123 MW, with 417 MW of new
electricity consumption (gross domestic production capacity added in the year. This amount was just a
plus the balance between import and export) can be little less than in 2005. Despite delays that occurred
put at about 360 TWh. in connecting several wind farms to the grid, which
Thermal production of electricity, with 263 reduced the 2006 annual growth rate to less than
TWh net production, increased by 4% in 2006, 25% from rates of 39% and 35% the previous two
keeping its place as the most important energy years, the installation trend is expected to rise again
source. Fuel for thermal generation was almost com- in 2007 and 2008. This rising trend is thanks to the
pletely imported. Gas from Russia, the Netherlands, renewed attention likely to be paid to the wind sector
and Algeria replaced several oil plants and continu- at the political, industrial, financial, and commercial
ously increased the contribution of gas to electricity levels. In particular, it is estimated that 2007 will
generation. become a record year, and cumulative wind capac-
As usual, hydropower, with 43 TWh pro- ity very close to 3,000 MW is likely to be achieved
duced in 2006 ( just 0.2% more than in 2005), was by year’s end. Uncertainty remains about what will
the most important RES (although this figure also happen in the medium and long term. It will depend
includes the production of pumped-storage plants), on the willingness of the national and regional gov-
followed by geothermal plants with 5.5 TWh, 3.8% ernments to take additional measures.
more than the previous year. Electricity generated In 2006—following a trend that started in
from wind rose by 37% in 2006, with a total produc- 2002 with the construction of Italy’s first wind farm
tion of 3.22 TWh. Wind is the renewable resource composed of large wind turbines in Sardinia—some
that most increased its electricity production over 200 MW, corresponding to nearly 50% of the year’s
2005 levels, but its share of total electricity genera- new wind capacity, was installed with turbines in
tion is still limited to a low 1%. the range 1.5 MW to 2 MW. The remaining capac-
ity was mostly achieved through 850-kW machines,
2.0 Progress toward national objectives which are also very common in Italy.
In all, new wind capacity added in 2006 was
Legislative Decree 387 of 29 December 2003 417 MW, with the installation of 363 units. This
was aimed at implementing EU Directive 2001/77/ brought the cumulative wind capacity to 2,123
EC, and it actually confirmed the previous target MW, up from 1,718 MW in 2005. It must be taken
of 76 TWh/yr to be achieved in 2008–2012 from into account that 46 machines totaling 12 MW were
RES. This target was first established in 1999 in the dismantled in 2006 (Figure 1 and Figure 2).
National White Paper for Exploitation of Renew- The southern regions—Sicily with 137 MW
able Energy to comply with the Kyoto Protocol. The and Apulia with 125 MW, followed by Basilicata
target was subsequently included in the EU directive with 67 MW—had an active role in the growth of the
as well, which stated that Italy would increase the sector. Other regions such as Tuscany and Calabria,
contribution of RES to gross electricity consump- which had only one small wind farm each until the
tion from 16% in 1997 to 22% in 2010. beginning of 2006, finally gained more significant
Against this background and despite the installations. This trend will largely continue in
growing demand for electricity, the absolute target

146 2006 Annual Report


Italy

Figure 1 Trend of annual and cumulative wind turbine capacity and electric-
ity production from wind in Italy.

Figure 2 Trend of cumulative and yearly added numbers of wind turbines in


Italy and average on-line unit capacity.

2007–2008, especially in Calabria, where some 100 from 9.1 MW to 6 MW for the time being, and it
MW are anticipated. will later be raised to 7.5 MW. However, this does
Some repowering of old wind farms also took not lessen energy output, and uses less of the land
place. Thirty-six old single-bladed turbines at Enel’s for the turbines and equipment. On the whole, in
demonstration wind farm Collarmele were replaced 2006 a total of forty-six wind turbines ranging from
by four GE 1.5-MW units, with another to be added 200 kW to 450 kW were replaced by fifteen larg-
shortly. In this case, total plant capacity was reduced er machines in the range of 800 kW to 1.5 MW.

IEA Wind Energy 147


National Activities

This increased total in-field capacity by 4 MW but city of Avellino and consists of nineteen V90 units
had a larger benefit in terms of energy production. (2 MW), two V90 units (1.8 MW), and thirteen V52
Apart from these few cases, widespread repowering units (850 kW) at the sites of Bisaccia, Lacedonia,
of smaller and older machines has not yet started in and Greci.
Italy. Soon, however, Italy’s largest developer, IVPC New, relatively large companies such as Ale-
(to which the country’s oldest commercial turbines rion Industries and Sorgenia are entering the Ital-
belong) is planning to replace several old turbines in ian market. Alerion has acquired several projects in
Apulia and Campania. southern Italy totaling 192 MW already authorized
Gamesa, which installed more than 200 MW and an additional 200 MW in the pipeline. Sorgenia
in 2006, has taken the second largest share of the is developing and building wind farms of its own.
Italian market, with 20% of total capacity. Only Sorgenia (the former Energia S.p.A. and one of the
Vestas Italia has a higher share, having maintained first Italian energy operators) is acquiring growing
the highest portion of the Italian market since 1996 importance in the Italian wind sector. The company’s
(Vestas’s 2006 cumulative capacity share was 57%). industrial plan is based on investments in combined
Both manufacturers will be widely involved in wind cycle gas turbine (CCGT) power plants and on elec-
energy development in Italy in the coming years, as tricity generation from RES—namely hydroelectric,
shown by important commitments already obtained photovoltaic, and wind plants. Sorgenia acquired the
from Enel and IVPC totaling some 330 MW. wind company Anemon and a wind farm placed
Among Italian wind plant developers, in 2006 in Fossato di Vico, in the Umbria region, for 1,500
FRI-EL and Moncada installed just a little less than kW installed capacity. The company then obtained
100 MW each, increasing their respective shares of authorizations to build three new wind farms—in
total on-line capacity to 9% and 5%. Larger develop- Castelnuovo di Conza, San Gregorio Magno (Cam-
ers include IVPC with 31% of total on-line capacity pania), and Minervino Murge (Puglia)—for 70 MW
and the two main utilities Enel and Edens that have installed capacity overall. The 2007–2010 business
on-line capacities of 14% and 13%, respectively. plan of the Sorgenia Group sets the target of 450
IVPC is completing its first wind farm with MW of wind capacity.
large turbines (a 30-MW plant in the Apulia region) Figure 3 and Figure 4 depict the overall situ-
and has planned to build another 138 MW in 2007– ation at the end of 2006 regarding market shares of
2008. Vestas will supply turbines for these two proj- wind turbine manufacturers and wind energy pro-
ects. In particular, two wind power plants, Fortore ducers expressed as percentages of overall on-line
and Irpinia, are to be set up in the Campania region capacity. Figure 5 shows the annual growth rate and
of southern Italy. The Fortore project is located near Italy’s cumulative wind capacity since 1997.
the city of Benevento and consists of eighteen V90 The electrical energy produced from wind
units (3 MW each), fifteen V90 units (1.8 MW), in 2006 equaled 3,215 GWh, an increase of less
and two V90 units (2 MW) to be installed at the than 40% over wind electrical energy produced in
sites of Baselice, Foiano, Molinara, and San Marco 2005. This yield was lower than expected for two
dei Cavoti. The Irpinia project is located near the main reasons: First, as we have already said, most of

Figure 3 Market shares of wind turbine manufacturers at the end of 2006


(percentages of total on-line capacity).

148 2006 Annual Report


Italy

Figure 4 Market shares of wind plant developers at the end of 2006 (per-
centages of total on-line capacity).

Figure 5 Trend of annual growth rate (absolute and as a percentage) of Italy’s cumulative
wind capacity.

the 2006 added capacity came on line only in the undue hindrances to wind plant deployment. Some
last few months of the year; secondly, the generally help, however, came from the Italian state in 2006.
windiest months, November and December, were For instance, the Constitutional Court repealed the
affected by a heavy drop in available wind energy wind energy moratorium established by the Apulia
owing to persistent high pressure over the country. region. This prevented other regions (for example,
Until November 2006, the forecast had been for a Basilicata and Molise) from establishing their own
60% energy increase. moratoriums, which would have stopped wind de-
ployment, at least temporarily.
2.2 Constraints Difficulty connecting wind plants to the
The lack of nationwide plant permitting electrical grid quickly enough, has been a frequent
guidelines, which were called for by Article 12 of complaint in years past. It seems to have bothered
Decree 387/2003 on RES, continues. As a result, the some developers in 2006 as well, despite new rules
various regions are proceeding autonomously, issu- issued by the Regulatory Authority for Electricity
ing guidelines or establishing rules to manage wind and Gas at the end of 2005 (Provision 281, 19 De-
plant authorization procedures that differ remark- cember 2005). Actually, the completion of several
ably among regions. This situation clearly poses wind farms originally planned by the end of 2006

IEA Wind Energy 149


National Activities

has not yet happened due to major unexpected de- over of the year attributable to wind energy activi-
lays in the grid-connection process. Of course, the ties was about 500 million € , more or less the same
implementation of new grid-connection procedures as in 2005. ENEA and ANEV anticipate that this
takes some time, and some aspects of the authority’s figure should increase substantially in 2007.
new provision still require clarification and fine- The wind capacity distribution pattern over
tuning. With this in mind, one could expect that in the country shows (Figure 6) that the wind business
coming years, outstanding grid-connection issues mostly benefits Italy’s southern regions, thus help-
may be settled and time lags become more accept- ing to solve the problem of local unemployment.
able to investors. Manufacturing of wind turbines and components is
Another obstacle is the prejudice that some concentrated mainly in the Apulia, Campania, and
regional and local decision makers seem to bear Sicily regions, where wind capacity is highest.
against wind technology. This prejudice generally The share of wind-power capacity held by the
ensues from a lack of knowledge and could easily main developers IVPC, Enel, and Edens at the end
be overcome through better information current- of 2006 totaled less than 60%, about 11% less than
ly available from various sources and by visits to their share a year earlier. This means that new inves-
existing wind farms, particularly in the southern tors such as Moncada have appeared, and older ones
regions. such as FRI-EL (Figure 7) have grown in size. An-
other utility, Endesa Italia (Figure 8), considerably
3.0 Benefits to national economy increased its share in 2006 through the acquisition
of three wind farms, bringing its total capacity up to
3.1 Market characteristics some 100 MW.
In 2006, according to the national wind en- The strong presence of utilities on the market
ergy association ANEV the number of employees (one-third of total wind capacity) is mainly due to
involved in wind energy in some way, was about their obligation to comply with the RES quota es-
4,500. Of this number, some 1,000 were engaged in tablished by the law (3.05% for 2007) and to their
project development, consultant work, and plant op- wish to demonstrate willingness to diversify energy
eration and maintenance. The total economic turn- production using a clean source. In Italy, unlike in

Figure 6 Wind capacity at regional level in Italy at the end of 2006 in MW. Wind capacity
added in 2006 is indicated in bracket.

150 2006 Annual Report


Italy

some other countries, private citizens, farmers, and in Italy comprises two production units, Vestas Na-
co-operatives have not entered the wind market so celles Italia S.r.l. and Vestas Blades Italia S.r.l., and
far. This more diverse ownership pattern has been a sales unit, Vestas Italia S.r.l., which is responsible
detained by medium-sized wind energy companies for the Italy and Eastern Mediterranean markets. All
and a few utilities. However, there are prospects that three units are located in Taranto. Vestas produces
larger energy and insurance groups, too, may join some 550 wind turbines per year.
in shortly. It is worth mentioning that Vestas Italia had
The most important utility, Enel, has further strong growth between 2003 and 2006, increasing
confirmed its interest in RES, energy efficiency, both wind capacity and employment by 200%. In
distributed generation, hydrogen, and zero emis- the spring of 2007, Vestas will complete the first
sions through new investments. Its investments for two wind farms comprising 3-MW turbines ever in-
2007 to 2011 total 4 billion € , both in research and stalled in Italy; their total capacity will be 108 MW.
commercial deployment (double its previous invest- Manufacturers of smaller wind turbines re-
ment). Some 3.3 billion € will be devoted to renew- ceived a boost to the sector in 2006. The Regula-
able plants; 1.6 billion € of this amount will be used tory Authority for Electricity and Gas issued Provi-
to build plants in Italy. This would mean adding sion 28 of 10 February 2006 regulating the energy
1,700 MW of new generating capacity, of which exchange (net metering) between the network and
1,500 MW would be wind, 100 hydro, and 100 geo- RES plants up to a capacity of 20 kW. Thanks to
thermal plants. this measure and the reduction to 50 MWh of the
threshold energy amount for obtaining green cer-
3.2 Industrial development and tificates, the industry comprising manufacturers of
operational experience smaller wind turbines is expected to grow more sig-
In 2006, Vestas Italia, located in Taranto nificantly in 2007 than in previous years.
(where 50% of the turbines installed in Italy as of the Several developments in the small wind sector
end of 2006 were produced), increased the number took place in 2006. Jonica Impianti has concentrated
of its employees by about 20%; there are now 600 its production on the unit JMP 20. It has a total ca-
employees. Its sales of 850-kW machines equaled pacity of sixty units per year. Since January 2007, it
a total capacity of about 440 MW. More than 60% has also improved this 20-kW model through the
of these machines were exported to China. Vestas adoption of a new 10-m rotor, increasing the energy

Figure 7 Vestas V90 3-MW turbines at Ricigliano in the Campania region, a 36-MW wind
farm developed by FRI-EL

IEA Wind Energy 151


National Activities

Figure 8 Gamesa G90 2-MW turbines at Scansano in the Tuscany region, a 20-MW wind
farm developed by Endesa.

generated. A new company, BluMiniPower, has re- term of green certificates has been extended from
cently entered the market with the 20-kW BMP 20 eight to twelve years from the beginning of plant
model and has established its factory at Olbia in Sar- operation.
dinia. The turbine has a rotor diameter of 8 m, a rat-
ed wind speed of 12 m/s, and a synchronous perma- 4.0 National incentive program
nent magnet generator (Figure 9). Other companies
that have recently entered the small-turbine sector 4.1 Major RES support instruments
include the Tozzi Group and Cepa. Their entrance In 2006, too, a good number of RES plants
is a response to the adoption of the net-metering sys- were still benefiting from the feed-in tariffs granted
tem and to the simplified authorization procedure by CIP Provision 6 of 29 April 1992. These tariffs
enforced in the Tuscany and Apulia regions. are different for the various technologies and are up-
dated every year. They are paid to entitled plants for
3.3 Economic details all the energy they can feed into the grid and consist
Total plant costs of wind installations were of two items:
significantly higher in 2006—20% to 30% more • The avoided cost, granted over the full life-
than in the two previous years—so that the average time of the plant as a reward for avoiding
investment cost can now be put at around 1.2 mil- production from conventional sources, and
lion € /MW installed. Maintenance and operational • The incentive, granted over the fi rst eight
costs remained, on the contrary, about the same as years of plant operation only.
in 2005, averaging roughly 10 € /MWh. The in-
crease in the cost of wind turbines was caused by
factors that were unpredictable a few years ago—for
example, insufficient wind turbine production. This
in turn was caused mainly by a shortage of compo-
nents due to fast-growing demand, rising costs of
raw materials, technology innovation (particularly
concerning blades), and use of larger blades for less
windy sites.
In addition to turbine cost, the cost of electri-
cal and civil works is estimated to be around 30% of
total investment cost for plants with smaller turbines
(capacity <1 MW) and 20% of total investment cost
for plants with larger turbines (capacity >1 MW).
A sort of compensation for increasing plant costs is
now given by higher market prices of green certifi-
cates issued for the 2006 RES electricity production,
around 125 € /MWh. Income from selling green
certificates adds, as is known, to the wholesale mar-
Figure 9 BMP 20, the 20-kW prototype developed
ket price of wind-generated electricity, which aver-
by BluMiniPower srl.
ages around 60 € /MWh. Since 2006, the availability

152 2006 Annual Report


Italy

In 2006, several wind plants were still within sell their own TGCs at a price close to, but obviously
the eight-year term and therefore got the full feed- not greater than, the price fixed for the GSE cer-
in tariff. In the most favorable case of plants yield- tificates. As compared with TGC schemes in other
ing all their energy to the grid, the tariff was 149.4 countries, the Italian TGC price is therefore not left
€ /MWh. to the mere interplay of supply and demand but is
Unlike these older plants, all new wind plants controlled in a way that gives RES investors more
now come under the current support scheme, which guarantees of enough income.
is based on a compulsory quota for electricity from Actually, the price of TGCs sold by GSE has
RES and on tradable green certificates (TGCs). This been growing steadily in the past few years. Specifi-
scheme was set up and regulated by Decree 79 of cally, the price of GSE’s TGCs relating to 2006 RES
16 March 1999 (restructuring the electricity mar- production was fixed at 125.28 € /MWh. The GSE
ket) and the subsequent Decree 387 of 29 December price has kept up the TGC market price as well, thus
2003 (implementing EU Directive 2001/77/EC on bringing a reasonably rewarding income to investors
RES promotion). Further implementation measures in addition to the sale of electricity on the whole-
were then taken in 2005 and 2006. sale market. This of course holds especially for more
Since 2001, the RES electricity quota obliga- mature RES technologies, including wind, while
tion has been laid on operators who, in the reference other technologies such as photovoltaics have had to
year, have produced or imported electricity from be granted special feed-in tariffs to help fund their
non-renewable sources exceeding 100 GWh/yr development.
(electricity from CHP plants, auxiliary service con- In spite of these financial conditions, which
sumption, and exports of energy are excluded from look very favorable in principle, investors in RES
this computation). These operators must feed into have still been complaining about the way some
the Italian grid, before the end of the subsequent aspects of Italy’s support policies have been imple-
year, an amount of RES electricity equaling a mini- mented. Particularly, they have long been complain-
mum quota of this non-renewable electricity. The ing of delays in issuing measures regarding, for ex-
RES electricity quota was originally 2% but was sub- ample, the fixing of electricity quotas for RES to be
sequently raised by 0.35% a year to 2.35% in 2005, produced from 2008 onward, the setting of regional
2.70% in 2006, and 3.05% in 2007. No quota has yet targets, establishing a single national procedure for
been set for subsequent years. plant permitting, and other actions required by De-
To show compliance with the quota, opera- cree 387 of 29 December 2003. Settling these pend-
tors can either hand in TGCs from their own RES ing issues would bring more clarity and certainty to
plants or can buy TGCs from other RES producers. the framework within which investors have to work.
To reduce their obligation, they are also allowed to Some investors have even stated they would be con-
feed imported RES-generated electricity into the tent with lower energy and TGC prices in exchange
Italian grid, but this energy must be certified by a for better-defined boundary conditions for their
Guarantee of Origin. The market price of TGCs businesses in the long term.
should thus be determined on the basis of demand
by obligated operators versus supply by qualified 5.0 R, D&D activities
producers. Qualified RES electricity producers get
one TGC for each 50 MWh of their production over 5.1 National R, D&D efforts
a term that was formerly eight years but has, since Several companies tested prototype turbines
2006, been extended to twelve years of plant opera- in 2006. The Leitner Group continued its dem-
tion. The sale of TGCs brings them income in addi- onstration tests in the Alps on its recently devel-
tion to the proceeds from the sale of energy on the oped 1.2-MW and 1.35-MW prototypes, and it is
wholesale electricity market. now ready to enter the international market. Also,
It must be pointed out, though, that, to avoid Moncada Costruzioni, which completed four wind
double benefit, TGCs that would be due to plants al- farms in 2006, has been conducting experimental
ready getting CIP 6/92 feed-in tariffs are retained by tests on its 750-kW prototype in Sicily and has also
GSE (the body managing all RES support schemes). been developing a smaller (20-kW) turbine.
GSE must sell them at a price fixed every year on Among Italian universities involved in wind
the basis of current CIP 6/92 feed-in tariffs, among research activities, Bologna University has been par-
other things. Since the number of these TGCs is still ticularly concerned with lightning protection and
fairly large, qualified RES producers actually have to offshore foundations, Trento University with cold-

IEA Wind Energy 153


National Activities

climate applications and the development of small • Four series of wind-speed maps and four
wind turbines, and Milan Technical University series of specific energy production maps at
(Polytechnic) with integrated aeroelasticity simula- the heights of 25 m, 50 m, 75 m, and 100 m
tion software. Genoa University is still involved in above ground;
the study of wind potential onshore and offshore, as • Extension of all maps from on-land areas to
well as the simulation of wind flow. a sea strip of 40 km width from the coastline;
In the field of small turbines, new interest • Further validation of maps by additional
was shown by a few entrepreneurs engaged in the measuring data collected especially at coastal
development of innovative models, one of which is and offshore locations;
intended for use in the urban environment. In par- • Easier access by users, who can now avail
ticular, the Tozzi Group has been developing, with themselves of interactive consultation facilities
scientific support by Trento University and Milan including a computation module to evaluate
Polytechnic, a project devoted to the design and the technical and economic performance of a
construction of two classes of turbines: vertical-axis wind farm of given characteristics at any cho-
turbines with a power <3 kW to be located in urban sen spot on the maps;
areas, and horizontal-axis turbines up to 80 kW for • Text providing a brief but thorough over-
suburban, rural, and industrial applications. The so- view of the main topics of wind energy
lutions adopted for these two models will be assessed exploitation for the convenience of readers
and then industrialized through extensive testing of who may not be fully familiar with all aspects
prototypes, both in a test field operated in Trento by that bear on the feasibility of a wind project.
Tozzi Nord and in public research structures such as
wind tunnels and laboratories for materials tests. The new version of the Wind Atlas of Italy
Italy’s first offshore wind applications are will be posted on a dedicated Web site now being
being planned. A large project (around 300 MW) prepared.
planned by Gamesa off the northern Apulia coast In 2006, CESI RICERCA also conducted re-
and other initiatives are under consideration in the search aimed at going deeper into the technical and
Calabria and Sicily regions. Enel is also consider- economic aspects of offshore wind farms along the
ing offshore as a possible option in its research plan. Italian coasts, especially with an eye to foundations
In particular, it has been drafting a new design for and supporting structures. The application of inno-
a wind platform off the Tuscany coast, the most vative models to the analysis of wind conditions at
ambitious research project disclosed in this sector “mixed” locations (namely areas comprising both
to date. sea and land stretches) was also the subject of inves-
Research activities performed in the interest tigation.
of Italy’s electricity system were taken over from
CESI in 2006 by the new company CESI RICER- 5.2 Collaborative research
CA. The staff of CESI RICERCA has resumed work Italy, through Trento University, is participat-
on the Wind Atlas of Italy developed with CESI ing in the IEA Wind Task 19, Wind Energy in Cold
between 2000 and 2002. As described in the IEA Climates.
Wind Energy Annual Reports of 2002 and 2003,
this atlas was intended to provide a general picture 6.0 The next term
of Italy’s wind resources and to be used as a tool for
singling out windy areas mainly for the purposes of The positive trend of wind plant deployment
regional energy planning and wind farm siting. The started in 2004 will, in all likelihood, continue at
work was initially based on the simulation of wind least for the next two years through the comple-
flow through models in co-operation with Genoa tion of large projects already authorized and partly
University. The resulting maps were then adjusted underway at their sites. Some 1,000 MW to 1,500
by comparison with data recorded by wind-measur- MW in new wind-power capacity could be added
ing masts scattered all over Italy. The new version of by the end of 2008.
the Wind Atlas features several improvements, the It is more difficult to anticipate what will hap-
most noteworthy of which are the following: pen in 2009 and later, as it will largely depend on the

154 2006 Annual Report


Italy

national and regional targets to be set and the policy These figures are, on the other hand, in good
measures that will be adopted to achieve them. How- agreement with the likely exploitable wind potential
ever, a total wind-power capacity of 5,000 MW on that can be estimated from the Wind Atlas of Italy
line by the end of 2010, with a production of about developed by CESI RICERCA.
10 TWh/year, could be considered a feasible goal.
That would double the official target of 2,500 MW Authors: Luciano Pirazzi (ENEA); Claudio Casale
and 5 TWh/yr established for 2008–2012 by the (CESI RICERCA), Italy.
1999 White Book.

IEA Wind Energy 155


National Activities

156 2006 Annual Report


Japan
19

1.0 Introduction 2.0 Progress toward national objectives

At the end of fiscal year 2006 (March 2007), 2.1 Strategy


the total wind-power capacity in Japan is estimated At the UN Climate Change Conference in
to be 1,574 MW with 1,358 turbine units, which Kyoto in December 1997, the Japanese government
corresponds to approximately half of the national agreed to reduce the output of greenhouse gases by
target for wind-power capacity by 2010. One of the 6%, compared with the 1990 level, by 2010. To at-
most important technical issues is extreme meteoro- tain this target, the government set the target for
logical conditions such as high turbulence or attacks wind power for 2010 at 3,000 MW in its latest Pri-
by typhoons or lightning; not a few turbines have mary Energy Supply Plan.
been damaged, sometimes severely, by these events. In April 2002, the Japanese government
Therefore, most national wind activities are aiming passed legislation for a Renewables Portfolio Stan-
to investigate or develop a J-Class Wind Turbine dard (RPS) in order to realize the national target
Guideline so that we may achieve sounder wind tur- for renewables by 2010. The contribution of renew-
bine technology for the Japanese environment. ables to total primary energy resources is expected
Another significant issue is grid connection. to be 3% in 2010, up from 1.2% in 1999. Under the
Compared with EU countries, Japan is very much RPS, Japan’s utilities are obligated to source 1.35%
isolated, and so the influence of wind generation on of total electricity supply from renewables by 2010.
grid stability is considered very large, regardless of To counteract natural and social obstacles to wind
how small the penetration ratio is. Therefore, some power development, the government has been tak-
electric power companies must limit new wind farm ing some new measures to add to the conventional
projects and choose them by drawing lots. Moving subsidies as mentioned previously.
to offshore installations has not yet begun due to
deep-water conditions, but some investigations have 2.2 Installed capacity
been initiated. Japan’s cumulative wind-power capacity was
1,078 MW with 1,055 units at the end of fiscal

Table 1 Key Statistics 2006: Japan


Total installed wind generation 1,574.2 MW*
New wind generation installed 493.5 MW*
Total electrical output from wind 1.910 TWh/yr** (1)
Wind generation as % of national electric demand 0.216%** (2)
Target: 3,000 MW by 2010
* Predicted by the end of March 2007
** From April 2005 to March 2006
Data from Web sites for the Japanese Renewables Portfolio Standard and the Federation of
Electric Power Companies of Japan

IEA Wind Energy 157


National Activities

Figure 1 History of wind-power development in Japan.

year 2005 (March 2006), and capacity will be 1,574 and the contribution of wind power accounted for
MW with 1,358 units at the end of fiscal year 2006 0.216%.
(March 2007). Figure 1 shows the history of wind-
power development in Japan. Capacity values are re- 2.4 Rates and trends in deployment
corded for the end of each fiscal year. To project the Most commercial wind farms have been de-
2006 value based on previous years, we performed a veloped with governmental promotional subsidy
linear interpolation and arrived at 1,451 MW. programs, which quickly accelerated development.
Figure 2 shows the history of annual increases in
2.3 Contribution to national energy demand wind-power capacity in percentages with a fitting
Wind power generation from April 2005 to curve. The annual rate of increase ranges from 40%
March 2006 was 1,909.7 GWh. National energy to 70% on average, and the values are very high.
demand during the same period was 882.6 TWh, However, the fitting curve suggests some decelera-
tion in recent years.

Figure 2 History of annual increase rate of wind power capacity (percent)


with a fitting curve.

158 2006 Annual Report


Japan

3.0 Benefits to national economy

3.1 Market characteristics


Wind power development in Japan has
brought certain benefits to the wind industry. Un-
til 2005, only one wind turbine manufacturer pro-
duced commercial turbines above 1 MW. Now there
are two: Mitsubishi Heavy Industries Ltd. (MHI)
and Fuji Heavy Industries Ltd. (FHI). In addition,
membership in the Japan Wind Power Associa-
tion ( JWPA) has increased to 121 member com-
panies. Many entities are developing wind power:
citizen groups, NPOs, third sectors, local govern-
ments, and big private companies. However, the
Japanese market is deeply influenced by external
conditions, both natural and grid-related.
Grid connection is one of the biggest is-
sues. Huge cities such as Tokyo, Osaka, and Na-
goya, where electricity demands are very high, are
located in the middle of Japan. Windy areas are
mostly rural areas at the northern and southern
ends of the country. In these areas, electric power
companies must set a regional limit of allowable
wind capacity for grid connection.

3.2 Industrial development and


operational experience
Mitsubishi Heavy Industries (MHI) has
long been the only national manufacturer that
supplies medium-sized to large wind turbines. At
the beginning of 2006, MHI erected a new 2.4-
MW wind turbine, the MWT92, in Yokohama
(Figure 3).
Fuji Heavy Industries Ltd. (FHI) became Figure 4 FHI’s new 2-MW, downwind-type wind
the second large-scale wind turbine manufacturer turbine, the SUBARU 80/2.0, installed at Hazaki.
when it developed a prototype 2-MW SUBARU

80/2.0 wind turbine with a downwind rotor con-


figuration (Figure 4). This turbine was constructed
in December 2005 at Hasaki in Ibaraki Prefecture
100 km east of Tokyo. FHI has been conducting
demonstration tests including performance and reli-
ability tests, especially tests of the downwind effect
on stresses, noise, and power generation.
A few new wind farms marked new records.
The largest wind farm ever established in Japan, Ko-
riyama Nunobiki Kogen Wind Farm, was developed
in December 2006 (Figure 5). Total power output is
65,980 kW with thirty-two units of 2-MW turbines
and 1,980-kW turbine. This wind farm is owned
by J-POWER, which has developed 210.5 MW
in Japan.
Ichimokusan Wind Farm, whose total output
Figure 3 MHI’s MWT92 turbine in Yokohama. is 8,500 kW with five units of Vestas 1,700-kW tur-

IEA Wind Energy 159


National Activities

Figure 5 Koriyama Nunobiki Kogen Wind Farm.

bine, is now under construction at Oguni, Kuma- wind speed averages more than 10 m/s. However,
moto, in Aso Kujuu National Park, one of Japan’s since December 2005, an Airdolphin has been oper-
most important national parks (Figure 6). This is the ating with the cooperation of Erimo City. Figure 8
first wind farm permitted as a private commercial shows a photo and figure 9 shows one month’s worth
power station by the Ministry of Environment. This of operation data.
project serves an educational purpose for the nearby Strong Japanese winds have taken their toll
Oguni Nature School, and it supplies electricity to on wind turbines this year. On 8 January 2007,
Oguni City. one 1.3-MW wind turbine at the 32.5-MW Iwaya
Another major achievement is the Matoyama- Wind Farm in northern Japan, consisting of twenty-
oshima Wind Farm (32,000 kW with sixteen units five units of Bonus turbines, was fell over from the
of Vestas 2,000 kW) on Matoyama-oshima Island base of the tower. The night before the barometric
near Hirato, Nagasaki (Figure 7). Commercial op- pressure was low, and extreme wind speeds above 40
eration is scheduled to begin in March 2007. This is m/s were measured.
the first wind farm to be connected with the longest As we reported last year, Miyako Island was
submarine cable (15 km) in Japan. hit by an enormous typhoon, and all seven wind tur-
Zephyr Corporation has developed the Z- bines were toppled or lost blades. These accidents
1000 Airdolphin, a small 1-kW wind turbine. The during extreme winds are intermittent, but still seri-
prototype machine is being demonstrated at many ous. Lightning strikes are also a severe problem in
sites around the world, such as Tarifa (Spain), Soria Japan. For these reasons, the government has set up
(Spain), Rimini (Italy), the UK, and many sites in several committees to investigate external condi-
Japan. Zephyr started a round-robin campaign mov- tions in order to find reliable design solutions.
ing a turbine around to sites with different operat- Figure 10 shows wind turbine accidents and
ing conditions cooperating with CIEMAT (Spain), failures for the last three years. They were investi-
Tokyo University, and Kyushu University. gated by the New Energy and Industrial Technology
Erimo Misaki Cape is one of the best high- Development Organization (NEDO) Wind Turbine
wind-speed areas in the world. It is located at the Availability Improvement Committee. The J-Class
southern part of Hokkaido Prefecture, the northern Wind Turbine Guideline Committee is producing a
island of Japan. The wind speed at Erimo is so high guideline to prevent severe accidents due to external
that people have not risked to installing large wind conditions.
turbines there. For more than 290 days in a year,

160 2006 Annual Report


Japan

Figure 6 Ichimokusan Wind Farm.

Figure 7 Matoyama-oshimaWind Farm.

3.3 Economic details According to a wind farm model, a 25-MW


Since most wind turbines are imported from wind farm discussed at a national committee, is esti-
Europe and the United States, unit cost itself is con- mated to have a cost of energy (COE) of 10.20 JPY/
sidered to be the same as in Europe or the United kWh with subsidy. Today, the COE is from 9.00 to
States. However, factors including transportation 11.00 JPY/kWh for medium-sized wind turbines
cost and the additional cost of grid connection re- (unit capacities between 500 kW and 1,000 kW).
quire additional plant costs.

IEA Wind Energy 161


National Activities

Figure 8 Zephyr’s Airdolphin at Erimo Misaki cape southern Hokkaido Prefec-


ture, the northern island of Japan.

Figure 9 Daily operational data from Airdophin at Erimo during January 2007.

162 2006 Annual Report


Japan

Table 2 Japanese national incentive programs*


Type Program Purpose Category Budget
(million JPY)
R, D&D (METI) Field test program Measure wind to develop wind plant Wind 60.0
candidates (Subsidy rate: 100%)
J-Class Wind Turbine Investigate current standards by means Wind 291.4
Guideline of field measurements; develop J-Class
Wind Turbine Guideline that takes
into account external conditions such
as typhoons, gusts, turbulence, and
lightning strikes
Demonstration of grid Demonstrate grid stabilization Wind 720.0
stabilization with battery technology with battery backup system
backup system at wind farm sites
Subsidy (METI) New Energy Business Support Subsidize business development of Wind (new 23,700.0
Program generation plant for initial cost (subsidy energy) (35,271.5)
rate maximum 30%)
Regional New Energy Subsidize local new energy Wind (new 1,350.0
Development Stimulation development of generation plant energy) (5,181.3)
Program for initial cost (subsidy rate maximum
30%, local authorities; 50%, nonprofit
organizations)
Measures for grid connection Subsidize technical measures for grid Wind 1,868.7
connection for wind power
NEDO (own) Investigations Investigate offshore wind, wind Wind 94.0
measurements, effects of field test
program, and advanced wind energy
technology
Committee Wind turbine availability Investigate accidents, draw future load Wind
improvement committee map, and discuss measures to improve
availability
Wind technology standards Develop IEC and JIS standards and Wind
investigate certification system
Wind turbine design; Conducted by Japan Society of Civil Wind
guidelines against extreme Engineers (supported by the Ministry of
winds Land, Infrastructure and Transport)
*Data courtesy of METI and NEDO

For large-scale wind farms comprising wind tur- The electricity purchase price for private wind
bines with capacities of more than 1,000 kW, COE farm developers ranges from 7.0 JPY/kWh to 20.5
is 7.00 to 9.00 JPY/kWh. JPY/kWh. A weighted average is 11.6 JPY/kWh.
Current cost for a wind turbine is approxi-
mately 100,000 JPY/kW. Cost to install turbines is 4.0 National incentive programs
decreasing as the number of large-scale wind-power
plants increases. The cost varies depending on wind Since the closing of active national wind ener-
conditions, grid conditions, and plant size. For 2003, gy R, D&D programs in fiscal year 2002, most gov-
the average initial cost was estimated at 190,000 ernment efforts have focused on incentive programs
JPY/kW. consisting of subsidies and investigations. However,

IEA Wind Energy 163


National Activities

Figure 10 Wind turbine failures and causes, 2004–2006.

certain activities have been shifted from demon- including these guidelines will be published in
stration or investigation to real-world research and 2008. We intend to propose these guidelines to be
development. incorporated into the IEC 61400-1 standards for the
The governmental incentive programs un- S-wind turbine class. As a result this work will be
der the Ministry of Economic Trade and Indus- available to regions worldwide where meteorologi-
try (METI) in FY2006 is summarized in Table cal and topographical conditions are similar to those
2. Budgets were 1,071.4 million JPY for R, D&D in Japan.
and 27,012.7 million JPY for subsidies, for a total Technical developments are proceeding in
of 28,084.1 million JPY. Main support and market connection with the study of a grid stabilization sys-
stimulation incentives were mostly subsidized and tem with battery backup. Current efforts are focused
were conducted by NEDO and the Japan Electrical on demonstrating the system on a wind farm.
Manufacturers Association ( JEMA).
5.2 Collaborative research
5.0 R, D&D activities Since 1988, Japan has been involved in IEC
activities aimed at establishing international stan-
5.1 National R, D&D efforts dards for wind turbine technology. GWEC Japan
The J-Class Wind Turbine Guideline is a very ( Japanese Wind Energy Association and Japanese
important research program. By using actual mea- Wind Power Association) has been cooperating
surements of wind characteristics and mechanical as a member of the Global Wind Energy Council
loads at several wind plant sites over Japan, it aims (GWEC) since March 2005.
to develop guidelines to build turbines that stand
up to external conditions such as typhoons, gusts, Author: Hikaru Matsumiya, Kyushu University,
turbulence, and lightning strikes. The final report Japan.

164 2006 Annual Report


Korea
20

1.0 Introduction Wind Farm is the first renewable CDM-supported


project in Korea, and its success indicates that in-
The progress of wind generation develop- stallation of a project that uses a renewable source
ment in the Republic of Korea’s wind market was can be subsidized by the sale of emission reduction
rather moderate in 2006. The cumulative installed certificates associated with the project.
capacity is 175 MW, of which 77 MW was newly in- At the end of 2006, 118 wind turbines were
stalled in 2006—a bit below the national target pro- operating in Korea. Of that number, 40 newly in-
jection. With an attractive feed-in tariff and R&D stalled systems were generating 77 MW of capac-
support, Korea is trying to achieve the national tar- ity (Tables 1 and 2), including 35 Vestas V80 sys-
get of 2,250 MW by 2012. Obstacles to achieving tems in the Gangwon project. According to the
this ambitious goal include public resistance and 2003 installation target set by the government in
the difficult mountainous site characteristics of the its document “The Second Basic Plan for New and
available onshore territory. Under these circum- Renewable Energy Technology Development and
stances, the government also supports R, D&D into Dissemination,”new wind energy capacity of 2,040
offshore sites, which are expected to provide con- MW, or 340 MW/yr, is needed to reach the target
tinuous growth in the future. The official data used for 2006 through 2012. In the plan, the offshore
in the following tables and elsewhere in this report portion is 675 MW (30% of the total of 2,250 MW)
were provided by the New and Renewable Energy by 2012.
Center of the Korea Energy Management Corpora-
tion (KEMCO). 3.0 Benefits to national economy

2.0 Progress toward national objectives 3.1 Market characteristics


Korea wind market is structured the way the
As a non-annex party of the United Na- European market was structured in its initial phase.
tions Framework Convention on Climate Change The government is a key driver in the local wind
(UNFCCC), Korea can host clean development market, providing an attractive wind price backed
mechanism (CDM) projects. By participating in by a fifteen-year long-term guaranteed feed-in tariff,
such projects, Korea is playing its part in mitigating tax incentives, and a subsidy policy. Encouraged by
greenhouse gases. Large-scale projects in Gangwon this environment, several big companies have joined
and Yongdeok (see Figures 1 and 2)—representing the government in supporting the localization of
98 MW and 39.6 MW, respectively, out of Korea’s wind turbine manufacturing to sustain long-term
total installation capacity of 173 MW—have been development. Previously, local utility companies
successfully supported by CDMs. The Gangwon and private site developers imported wind turbines

Table 1 Key Statistics 2006: Korea


Total installed wind generation 175 MW
New wind generation installed 77 MW
Total electrical output from wind .247 TWh
Wind generation as % of national electric demand 0.065%
Target: 2,250 MW by 2012

IEA Wind Energy 165


National Activities

Table 2 Total installed wind generating capacity in Korea


Year Up to 2002 2003 2004 2005 2006 Total
2001
Capacity 7.9 4.7 5.4 50 30 75 173
(MW)
Electrical 25 15 23 38 125 247 473
output
(GWh)

from abroad (including for the government-led 3.2 Industrial development and
demonstration project during the initial phase), leav- operational experience
ing O&M in the hands of foreign manufacturers. Until recently, Korean industry had little op-
Now, however, local manufacturers and developers portunity to gain experience with renewable energy
are putting their best efforts toward building up the including wind energy. Similarly, the government
kind of in-house technical expertise in Korea that is has only recently set up policies to manage the mar-
characteristic of other markets. ket for renewables. The private developer Unison,
The Korean wind farm business is still in its having established itself as the leading development
infancy and has been developed so far by virtually company in Korea with its two big projects, has es-
a single private developer, Unison. This company tablished its own engineering project consultancy
accounts for 138.6 MW of the total 175 MW of in- and O&M services. This company is developing
stalled capacity accumulated by the end of 2006. The wind turbines with government-funded projects: A
manufacturer Vestas has up to 98% of the market 750-kW prototype is in field testing, and a 2-MW
share for turbines in Korea, having received orders model is under development until through August
for the two large projects, Gangwon and Yongdeok, 2007. The other local manufacturers, Hyosung and
as well as a few small demonstration projects. Hanjin, are also engaged in development—750-kW
Recently, the issue of public acceptance has and 2-MW geared, doubly-fed, induction-generator
become an increasingly serious barrier preventing wind turbines for Hyosung, and a 1.5-MW model
the onshore wind market from expanding further. for Hanjin. Doosan Heavy Industries recently began
Public concerns about visual impact and environ- development of a 3-MW offshore model.
mental issues make it more difficult to obtain con- Poscoenc (a construction company experi-
struction permits and carry out the construction enced in power and infrastructure development
process. Military radar issues also act as a barrier to projects) and electric power companies entered the
acceptance.

Figure 1 Yongdeok Wind Farm faces the East Sea of Korea; twenty-four units of 1.65-MW
NM82 (V82).

166 2006 Annual Report


Korea

Figure 2 Gangwon Wind Farm, the biggest in Korea; ninety-eight units of 2-


MW V80.

wind farm market with their foreign partners (Eu- proposal to KEMCO for a maximum of 20 million
rus, GE, and Lahmeyer International GmbH) in the USD payable over ten years following an initial five-
Gangwon and Gyongbuk Province wind farm proj- year grace period.
ects. The local generation companies that have been
split from the Korea Electric Power Corporation 5.0 R, D&D activities
(KEPCO) agreed with the government to diversify
their generating sources by including renewables. The government’s long-term budget projec-
tion is for more than 240 million USD to support
4.0 National incentive programs wind R&D between 2004 and 2012. Many of the
government-sponsored projects that emphasize lo-
The Second Basic Plan sets a target of 5% of cal manufacturing of wind turbine systems and their
national energy consumption to come from renew- components are still under way. Recent government
ables by 2012. Except for energy from wastes, wind research has focused on developing 2-MW onshore
energy accounts for the biggest portion (about 9.8%) and 3-MW offshore turbine models, as well as run-
of the final target in the plan. To achieve this goal, ning a 4-MW offshore demonstration project that
The Korean government is prepared to support the will be realized in 2009.
wind industry with a policy of incentives includ- Significant government funding has enabled
ing subsidies, feed-in tariffs, tax incentives, and soft Korea wind turbine manufacturing industry to
loans. Wind generation is eligible for a fifteen-year gradually become competitive with foreign players.
feed-in tariff of 107.29 Won/kWh that is scheduled The local manufacturers, Unison and Hyosung, de-
to be reduced 2% every year after October 2009. veloped a 750-kW wind turbine. Hanjin took it a
Government subsidies to developers covered step further by acquiring a type certification of its
up to 70% of installation costs for demonstration 1.5-MW system from Deutschen Windenergie-
projects between 2000 and 2005. However, begin- Institutes Offshore Certification Centre (DEWI-
ning in 2006, these subsidies were only available to OCC) for commercial production. The turbine will
small wind projects (<10 kW). The government also be installed in 2007 as a demonstration project (see
compensates commercial banks for the difference Figure 3). Unison has developed gearless 750-kW
between commercial rates and lower than commer- and geared 2-MW turbines employing permanent
cial rates up to a certain portion as long-term project magnet generators, while Hyosung has devoted it-
financing to renewable energy construction projects. self to 750-kW and 2-MW geared, doubly-fed, in-
A single renewable construction facility can make a duction-generator wind turbines. Both 750-kW
prototypes are currently in field testing, and the

IEA Wind Energy 167


National Activities

2-MW models will be fabricated by the middle of


2007. Doosan Heavy Industries will develop a 3-
MW offshore model by the middle of 2009.

6.0 The next term

The wind market is in the spotlight, and sig-


nificant government support is proposed not only
for development, but also for achieving outstanding
results in local manufacturing. In 2007, 750-kW and
1.5-MW wind turbines, the first domestic models,
will be demonstrated at several locations. In addi-
tion, 2-MW prototypes are scheduled for installa-
tion in the field for testing.
For wind farm site development, local genera-
tion companies that are interested in diversifying to
renewable sources and that receive financing from
KEPCO are ready to be important players. How-
ever, increasing community opposition to site per-
mitting is slowing new onshore development. This
slow down is forcing Korea government to search
for potential offshore sites, and at the beginning of
2007 it started a project to map offshore sites.
Figure 3 Hanjin’s 1.5-MW wind turbine.
Authors: Kijune Kim, Ministry of Commerce, In-
dustry, and Energy and ChinWha Chung, Pohang
Wind Energy Research Center, Republic of Korea.

168 2006 Annual Report


Mexico
21

1.0 Introduction power projects. In December 2005, the federal


congress approved the initiative Law for the Use of
At present, there is a constructive environ- Renewable Energy; however, at the end of 2006 the
ment for launching the implementation of wind initiative was still pending in the Senate.
power in Mexico. More than a few official docu- Mexico’s largest wind energy resource is
ments recognize that Mexico’s most important wind found in the Isthmus of Tehuantepec in the state of
resource would be sufficient for the installation of Oaxaca (Figure 1). Average annual wind speeds in
at least 5,000 MW of wind power. In a May 2005 this region range from 7 m/s to 10 m/s, measured
topical workshop, the most important promoters of at 30 meters above the ground. Given the favorable
wind power agreed to a shared vision of 6% of wind- characteristics of this region, particularly its topog-
power penetration at the national level for the year raphy, it is estimated that more than 2,000 MW of
2030. The workshop included representatives of wind power could be commercially tapped there.
the secretariats of energy, environment, and econ- In fact, a 1.6-MW pilot plant located in one of the
omy, as well as representatives of the Federal Elec- best sites in the region (La Venta), has operated for
tricity Commission, the National Chamber of slightly more than ten years at annual average capac-
Electrical Manufacturers, the Mexican Wind Ener- ity factors ranging from 30% to 40%. This compares
gy Association, and the major research and academic favorably with capacity factors of wind-power plants
institutions. located in the best inland sites in the world.
Continuous lobbying to formalize strategic National consumption of electricity is ex-
goals in both legislative and planning instruments pected to increase at an average annual rate of 5.2%
achieved encouraging results. The Federal Electric- for the period 2005 to 2014. This growth results in
ity Commission has issued an official program for a projected requirement of 305 TWh of electric-
the construction of four wind power plants during ity generation for 2014, representing an increase of
the next nine years; the first of these (83.3 MW) was 122 TWh and equivalent to 22.1 GW of additional
constructed and commissioned in 2006. More than new generating capacity. Of this, 6.2 GW is already
six private wind project developers affirm that they under construction or planned, the majority using
are close to the financial closure phase. Nowadays, combined-cycle gas-turbine technology, in addition
the income tax law allows accelerated depreciation to several new hydro and geothermal plants. The re-
for investments in renewable energy technologies. maining 15.9 GW will come from new projects. An
Early in 2006, the federal Energy Regulatory Com- opportunity niche therefore exists for supplying a
mission issued a regulatory instrument that im- reasonable portion of the uncommitted 15.9 GW of
proves the economic feasibility of self-supply wind new capacity using Mexico’s wind energy resource.

Table 1 Key Statistics 2006: Mexico


Total installed wind generation 85.5 MW
New wind generation installed 83.3 MW
Total electrical output from wind Not available
Wind generation as % of national electric demand Not available
Target: 6% of electric generation
by 2030*
*Shared vision from 2005 workshop

IEA Wind Energy 169


National Activities

Figure 1 Location of wind turbines installed in Mexico by December 2006.

2.0 Progress toward national objectives including large hydropower plants. It also instructs
official institutions to formulate and issue regula-
At present, it is clear that both the energy tions, programs, methods, and any other necessary
and the environmental policies in Mexico consider instruments.
renewable energy to be a fitting way for diversify- Numerous stakeholders from both the public
ing energy supply within a sustainable development and private sectors are promoting the use of renew-
framework. The new government is preparing the able energy in Mexico. However, during 2006, some
National Development Plan for 2007 through 2012. constraints against this goal arose within the political
In accordance with recent statements from the presi- arena. The major stakeholders of wind power are re-
dent of Mexico, a National Programme for Climate moving the various barriers by means of a systematic
Change will be issued. It is expected that this pro- approach with the following major components.
gram will increase the opportunities for the imple- By the end of 2003, the Electrical Research
mentation of renewable energy. Institute (Instituto de Investigaciones Eléctricas,
IIE) and the United Nations Development Program
2.1 Strategy (UNDP) received sponsorship from the Global En-
One of the main official instruments aimed at vironmental Facility (GEF) for the project Action
including renewable energy in Mexico’s electricity Plan for Removing Barriers to the Full-Scale Imple-
generation mix is the initiative called Law for the mentation of Wind Power in Mexico. The project
Use of Renewable Energy approved in December began in January 2004. It addresses capacity build-
2005 by the federal congress. Unfortunately, this ing, wide promotion of wind energy at the national
initiative is still pending in the Senate. It includes and regional levels, human resource development,
the creation of a green fund to improve the eco- strategic studies (including those for supporting the
nomic feasibility of renewable energy projects un- recognition of the capacity credit of wind power),
der current constitutional and legislative mandates. and assessment of the wind energy resource in prom-
The green fund would grant a price premium for ising areas. It also includes the analysis and formula-
electricity generation (kilowatt-hours) based on re- tion of proposals for improving the legal, regulatory,
newable energy. The initiative obligates the national and institutional framework for the implementation
electrical system to take the electricity from renew- of wind power. Construction of a Regional Wind
able energy at any time of generation. A transitory Technology Center is another goal of this project.
article introduces a strategic goal of 8% of penetra- This project organized the workshop mentioned
tion from renewable energy for the year 2012, not previously, during which the major promoters of
wind power came to a consensus on the shared vi-

170 2006 Annual Report


Mexico

sion of the implementation of wind power for the La Venta II was constructed in one of the
year 2030 and the paths to reach it. The implement- windier sites in the Isthmus of Tehuantepec. It is
ing agency for this project is the UNDP; the prime expected to operate at annual capacity factors above
mover and execution agency is the IIE. 40%. The indicator for the cost of this plant is 1,370
By the end of 2006, GEF approved for Mex- USD per installed kilowatt, not including the cost
ico a sponsorship for a first phase of a more exten- of the transmission line. The contract for construc-
sive project originated by the Secretariat of Energy tion was awarded to the Spanish consortium Iber-
(Sener): the Large Scale Renewable Energy Devel- drola-Gamesa.
opment Project. The World Bank will be the imple- Another important achievement was an
menting agency. This project focuses on launching agreement between the CFE and several private
an IPP renewable energy market by creating a tran- wind project developers for the future construction
sitory green fund targeted to complement regulated of a transmission line aimed at transmitting elec-
buyback prices for renewable energy. tricity from several wind-power plants planned for
the Isthmus of Tehuantepec. These will remove the
2.2 Progress toward national targets main technical barrier for the expected installation
By the end of 2006, the Federal Electricity of around 2,000 MW of wind power in that region.
Commission (CFE) commissioned Mexico’s first Together, the Secretariat of Energy and the Energy
significant-capacity wind power plant (La Venta II) Regulatory Commission played the principal role
(Figure 2). It is rated at 83.3 MW and has 98 850- for mediating negotiations between the parties. Fur-
kW wind turbines from the Spanish manufacturer thermore, as part of the agreement, CFE will allow
Gamesa Eólica (Table 2). The plant is owned by CFE the interconnection of certain wind power capacity
and was constructed under the modality of financed to the existing electricity transmission network in
public work, which means that a private contrac- the Isthmus of Tehuantepec. In practice, this will
tor is responsible for financing and construction of give the green light to the construction of the first
the wind power plant, and CFE pays the contractor privately owned wind-power plants.
the total amount of the contract when the plant is Several organizations have been issuing re-
commissioned. Next, CFE owns and operates the ports about wind energy. The Secretariat of Environ-
plant. La Venta II will become an important proj- ment and Natural Resources (Semarnat) prepared
ect within CFE to increase knowledge about how a National Standard for the Construction, Opera-
to merge wind power technology into the national tion, and Decommissioning of Wind Power Plants.
electrical system, to gain confidence on operation This standard is already completed and is under
and maintenance issues, and to assess direct and in- consideration by the Commission for Regulatory
direct benefits. Improvements.

Figure 2 La Venta II 83.3-MW windfarm on the Isthmus of Tehuantepec, Mexico.

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Table 2 Wind turbine installations in Mexico by the end of 2006


Location Manufacturer Wind turbines Capacity (MW) Commissioning Owner
date
La Venta, Oax. Vestas 6 x 225 kW 1.57 1994 CFE
Guerrero Negro, Gamesa Eólica 1 x 600 kW 0.60 1998 CFE
B.C.S.
La Venta, Oax. Gamesa Eólica 98 x 50 kW 83.3 2006 CFE
TOTAL 105 85.5

The National Commission for Energy Con- bility. In addition, several municipal governments,
servation (CONAE) issued a Guide on Official Steps as well as organizations of the trading and services
for the Construction and Operation of Renewable sectors, are in similar positions. Indeed, several im-
Energy Projects, which has a specific section for portant companies already have obtained permits to
wind energy. In addition, CONAE is an important build wind-power projects. Simultaneously, interest
stakeholder in the promotion of wind power. Within is growing in the installation of manufacturing fa-
the Federal Electricity Commission, the unit New cilities for wind turbines.
Sources of Energy has been the major promoter of
wind power projects. At present, this unit is carrying 3.2 Industrial development and
out feasibility studies for evaluating new projects. operational experience
The government of the state of Oaxaca is During 2006, electricity production from
considering the implementation of wind power in the La Venta I wind power station was 3.74 GWh.
the Isthmus of Tehuantepec as a strategic project to The facility operated at an annual capacity factor
improve regional development. To this end, since of 24.5%, according to Carlos García Aguilar, the
2000, the government has organized the annual station’s general manager. The capacity factor of
Colloquium on Opportunities for the Development this plant was lower than in previous years because
of Wind Power in the Isthmus of Tehuantepec. So one of the seven Vestas 225-kW wind turbines was
far, this has been the most important forum on wind out of service all year long due to failure of the yaw
energy at the national level. Governments of other system. In addition, by late 2006 one of the wind
states are also promoting the implementation of turbines collapsed, during a 53 m/s wind gust. The
wind power at the local level. base of the tower totally bent around 4 meters above
The Mexican Association of Wind Power the foundation; thus the nacelle and the rotor moved
(Amdee), constituted in 2005, became an important downward to the ground. It is assumed that all of
stakeholder in the negotiation and lobbying of legis- these failures are the effect of premature fatigue at-
lative and regulatory instruments. All the members tributable to the strong winds in the region. In the
of this association are promoting their own wind early years of its operation, the whole plant reached
power projects. In addition, the National Solar En- more than 40% capacity factor, which has steadily
ergy Association (ANES) continued more than 15 and progressively declined. The seven wind turbines
years of work promoting renewable energy. are exposed to the same wind regimen (plain ter-
rain, unidirectional wind, three diameters of separa-
3.0 Benefits to national economy tion between wind turbines). Therefore, a possible
reason for such operational constraints at a time
3.1 Market characteristics when they have been in use for only around 60% of
The wind-power market in Mexico is just now their expected commercial life is that the wind tur-
at its early stage, and negotiations between interested bines are not technically appropriate for the strong
parties are still in progress. The major companies of and persistent winds in La Venta.
the industrial sector are very interested in electricity Commercial implementation of wind-power
self-supply projects based on wind power, and sev- plants in La Venta and contiguous areas requires a
eral companies are evaluating their economic feasi- careful selection of wind turbines. The suitable in-
stallation of wind turbines over 40 m in height could

172 2006 Annual Report


Mexico

require special-class wind turbines, in accordance try also has excellent technical expertise in civil,
with IEC standards. Otherwise, a 20-year useful mechanical, and electrical engineering that could be
life would be unlikely to result. However, within tapped for plant design and construction.
the Isthmus of Tehuantepec there is plenty of land
where Class I as well as Class II wind turbines could 3.3 Economic details
be installed. Electricity prices to consumers vary depend-
Data from previous years show that the 600- ing on the region, time of day, and voltage. For elec-
kW wind turbine installed at Guerrero Negro oper- tricity billing purposes, the country is divided into
ated at a capacity factor of 25%. According to CFE, eight regions. Each region has its own timetable for
annual average wind speed at this site is around 8 electric tariffs throughout the day. Table 3 shows the
m/s at 50 meters aboveground. However, CFE has average price for electricity in various sectors.
not released performance data for the years 2003 to A niche of economic opportunity for wind
2006. And because the La Venta II wind power sta- energy already exists in the commercial and public
tion was commissioned in late 2006, no information service scenarios. The challenge is to develop and
about this plant is available (Figure 3). implement an adequate strategy for creating a con-
A 5-kW wind turbine of Mexican design is venient wind-power market. At present, a special
currently manufactured in Mexico, primarily for buyback price for wind energy has not been set in
export markets. A Mexican company has manu- Mexico.
factured several 750-kW electric generators for an The main constraints on wind-power market
international wind turbine manufacturer. Several development in Mexico are as follows:
wind turbine components—including towers, gen- • Electricity for the industrial sector is sub-
erators, gears, conductors, and transformers—could sidized.
all be manufactured in Mexico using existing in- • There is a critical need to generate a confi-
frastructure. Indeed, all the towers for the new La dent and stable business environment that
Venta II wind power plant were manufactured in can provide appropriate guarantees to interna-
Mexico. More than 200 Mexican companies have tional and national fi nancial institutions on
the capacity for manufacturing parts required for the viability and profitability of wind-power
wind turbines and for wind power plants. The coun- projects.

Figure 3 La Venta II wind park, commissioned in 2006.

IEA Wind Energy 173


National Activities

considerable quantity of electricity during the day-


Table 3 Electricity prices in Mexico,
light period when no electricity is required. Further-
September 2006
more, before this incentive, electricity transmission
Sector Average price (Mexican charges for a renewable energy self-supply project
Pesos/ kWh) were computed based on the project’s rated capacity.
Industrial 0.90 Today, these charges are reduced to the power plant
Agricultural 0.38 capacity factor level. However, this incentive was
not effective since capacity charges were computed
Residential 0.95 based on a five-minute period. This means that if a
Commercial 1.96 specific wind-power plant for self-supply purposes
Public services 1.49 does not generate any power during just five min-
utes over one month, then full contracted capacity is
used to compute billing charges.
• A comprehensive national program for During 2005, Sener, CRE, and AMDEE,
wind-power deployment does not exist. with the technical support of the IIE, carried out an
• There is a critical need to increase aware- intensive negotiation with CFE to achieve the rec-
ness among some decision makers and ognition of certain capacity credit for wind power.
legislators of the potential benefits of wind By the end of 2005, these participants agreed on a
power. modification of the agreement. The modification
• There is a critical need to include fitting includes the recognition of capacity credit of re-
and fair social benefits to windlandowners (es- newable energy technologies, based on the average
pecially to peasants) in the negotiation of wind capacity factor computed during the system’s peak
power projects. hour. The modification was issued in early 2006.
• There is substantial lack of electricity trans- In December 2004, a new incentive was is-
mission capacity for potential wind power sued. Today, the federal law for income tax (Ley de
development in the Isthmus of Tehuantepec. Impuesto Sobre la Renta) allows accelerated depre-
ciation of investments in renewable technologies
4.0 National incentive programs (wind energy is specifically included). Investors may
deduct 100% of the investment in a year (1 year of
In September 2001, the federal government depreciation). Before, investors in equipment for
through the Energy Regulatory Commission issued electricity generation were allowed to deduct only
the first incentive for renewable energy. Embedded 5% in one year (20 years depreciation). The equip-
in the existing legal and regulatory frameworks, this ment must operate for at least five years following
new incentive consists of a model agreement for the the tax deduction declaration; otherwise, comple-
interconnection of renewable energy power plants mentary declarations are obligatory.
to the national electrical grid. It allows self-supply
generators to interchange electricity among various 5.0 R, D&D activities
billing periods (e.g., base to peak). In this fashion,
self-suppliers do not necessarily have to sell surplus The first demonstration project La Venta I, a
electricity to the Federal Electricity Commission, 1.6-MW wind power plant sponsored by the Mexi-
because generation delivered to the grid during cer- can government, was built in 1994. In 1998, a 600-
tain periods can be credited to compensate for the kW wind turbine was installed at Guerrero Negro.
electricity extracted from the grid during a differ- CFE operates both of these projects.
ent period. The interchange was allowed based on With the economic support of GEF/UNDP,
the ratio of the marginal costs among various billing the IIE is working to implement a Regional Wind
periods; therefore, more than 1 kWh must be gener- Technology Centre, which aims to offer the follow-
ated during a base period to match 1 kWh required ing provisions.
in a peak period. • Support to interested wind turbine man-
This administrative incentive was designed to ufacturers for the characterization of their
improve the economic feasibility of some self-sup- products under the local conditions at La
ply wind-power projects, especially those for mu- Ventosa.
nicipal public lighting, where the plants generate a • A means to train local technicians in the
operation and maintenance of wind turbines.

174 2006 Annual Report


Mexico

• An easily accessible national technolo- the IIE’s wind-power action plan includes the explo-
gy display that facilitates interaction between ration and assessment of the wind energy resource at
wind turbine manufacturers and Mexican in- both known and new regions. By the end of 2006,
dustries, thus promoting the identification of one full year of data had been collected for fifteen
possible shared business ventures. promising new areas. Furthermore, through a con-
• A modern and flexible installation that will tract with CFE, the IIE carried out a feasibility study
enable researchers to obtain hard operation- for a wind-power station in the state of Baja Califor-
al data on the interaction of specific types of nia Sur. Finally, there is increasing interest by CFE
wind turbines with the electrical system. in the short-term prediction of wind power output
• A means to understand international stan- at La Venta II. CFE has contracted with the IIE to
dards and certifications (issued abroad) in carry out a project in this regard.
order to identify additional requirements to fit
local conditions. 6.0 The next term
• A means to increase the playing level of na-
tional research and technology development, The official Program of Investment for the
including joint projects or specific collabora- Electric Sector (2004–2013), prepared by CFE, is
tion activities with prestigious overseas R&D considering the construction of another three wind
institutions. power plants rated at around 100 MW each. A call
for bids to construct one of these wind power plants
The construction of the Regional Wind is anticipated in 2007. In addition, it is expected that
Technology Centre is scheduled to begin in Febru- at least two privately owned wind power projects
ary 2007. It is the first project to receive a permit to will be able to start construction during 2007.
operate as a small power producer in Mexico.
The wind energy resource in several promis- Author: Marco A. Borja, Instituto de Investigacio-
ing areas has not been evaluated in detail. Therefore, nes Eléctricas (IIE), Mexico.

IEA Wind Energy 175


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176 2006 Annual Report


The Netherlands
22

1.0 Introduction with a total capacity of 4.3 MW were replaced with


13 turbines with a total capacity of 26.5 MW. The
The Netherlands saw an all time record of net repowering effect was an increase of 22 MW
350 MW of new installed wind capacity in 2006. (Figure 1).
The share of renewable energy in the Neth- The national targets in 2006 were to have 5%
erlands energy supply increased to 2.6% in 2006 of of total energy consumption from renewable energy
the total primary energy consumption of 3,313 PJ. in 2010 and 10% in 2020. The intermediate target
The domestic production of renewable electricity for electricity is 9% of total electricity consumption
in 2006 increased to 7.6 TWh or 6.5% of the total from renewable electricity 2010. The target for wind
electricity consumption of 116 TWh, of which 2.7 energy on land is 1,500 MW in 2010. With 1,451
TWh or 2.4% of total consumption was from wind. MW land-based wind capacity installed at the end
The first offshore wind farm of 108 MW was built of 2006, this target will be met in 2007. It is up to
and brought online in December 2006. It is unique a new government to specify its ambitions for 2020
in the world, standing in water depths of 17 to 23 m for offshore wind energy (expected mid 2007).
at a distance of 8 to 12 km from the coast.
3.0 Benefits to National Economy
2.0 Progress toward National Objectives
3.1 Market characteristics
In 2005, the net increase in installed wind Total investment in wind energy in the Neth-
capacity in the Netherlands was 335 MW, bringing erlands for 2006 can be estimated at 480 million € ,
the total installed capacity to 1,559 MW. The pro- assuming an average investment cost for land-based
duction of wind electricity in 2006 increased to 2.7 wind of 1,100 € /kW for the 242 MW installed and
TWh or 2.4% of the total electricity consumption an average investment cost for offshore wind of
(Table 1 and Table 2) (1). 2,000 € /kW for the 108 MW installed. Like the all
In 2006, 154 turbines were installed with a time record for installed wind capacity, 2006 was a
total capacity of 350 MW, and 40 turbines with a to- record year for investment costs made higher by the
tal capacity of 15 MW were decommissioned. The large investment in offshore wind capacity.
net installed capacity in 2006 was 335 MW, and the The majority of the wind farms are owned
total installed capacity at the end of 2006 was 1,559 and operated by private owners. Energy companies
MW. Of the decommissioned turbines in 2006, 21 rarely own wind farms by themselves. Among the
types of private ownership, quite a few involve joint

Table 1 Key Statistics 2006: The Netherlands


Total installed wind generation 1,559 MW
New wind generation installed 350 MW
Total electrical output from wind 2.7 TWh
Wind generation as % of national electric demand 2.4%
Target: 9% Renewable Electricity
in 2010

IEA Wind Energy 177


National Activities

Figure 1 Installed, removed, and cumulative wind turbine capac-


ity in the Netherlands.

ventures between ‘pure’ private owners and energy strongly involved in the development of OWEZ. E-
companies. An example of this is the Offshore Wind Connection is one of the oldest independent devel-
Farm Egmond aan Zee (OWEZ) (formerly the Near opers of wind farms since the mid-eighties in the
Shore Wind farm (NSW)) that is jointly owned by Netherlands. E-Connection developed the offshore
Shell Renewables and Nuon, one of the major en- wind farm Q7. Evelop is a subsidiary of Econcern.
ergy companies in the Netherlands (Figure 2). In 2005, Evelop bought the wind farm Q7 from
E-Connection, which is now under construction.
3.1.1 Offshore development Airtricity is a well known Irish developer and owner
Offshore development is the new trend for of wind farms. It owns the first Irish offshore wind
wind farm projects. Project development companies farm Arklow Banks. Raedthuys has been develop-
that have started the process of obtaining building ing wind projects since 1995. It uses a fiscally-driven
permits by drawing up environmental impact state- participation model for wind farm development.
ments include WEOM a Dutch development com- Arcadis is a global consulting and engineering com-
pany in the energy sector (on behalf of Nuon and pany active in the fields of infrastructure, environ-
ShellRenewables), E-Connection, Evelop, Airtricity, ment, and facilities. Bard Engineering Gmbh, Eolic
Raedthuijs, Arcadis, Bard Engineering Gmbh, Eolic Power Gmbh, and Global Wind Support Gmbh are
Power Gmbh, and Global Wind Support Gmbh. closely related German offshore wind farm develop-
WEOM has been a developer of wind farms since ers. Their applications in the Dutch North Sea are
the mid-nineties and is now a subsidiary of Nuon. located close to the German developments north of
On behalf of Nuon and Shell WindEnergy, they were the Watten Isles.

178 2006 Annual Report


the Netherlands

the most be from 10 GW to 13 GW. If realised, this


Table 2 Wind generated electricity,
wind capacity could yearly generate approximately
avoided fossil fuel, and national electricity
from 30 TWh to 37 TWh of electricity. This is 27%
consumption
to 32% of the present electricity consumption in the
Wind Primary National Netherlands.
generated energy electricity Not all applications have been approved. On
electricity savings consumption
July 28, the application for a building permit for the
[GWh] [PJ] [GWh] offshore wind farm Den Haag I of WEOM (on be-
1985 6 0.05 half of Nuon en Shell WindEnergy) was declined.
The reason was a relocation of shipping lanes fore-
1986 7 0.06
seen by the Ministry (3). On November 26, the
1987 14 0.12 applications for a building permit for the offshore
1988 32 0.26 wind farms Q4-WP and P12-P of E-Connection
Project B.V were declined. The environmental im-
1989 40 0.33
pact statements and building permits applications
1990 56 0.50 78,582 were supplied in 2005. Additional data supplied by
1991 88 0.78 80,803 E-Connection were, even after repeated requests,
1992 147 1.30 83,173
insufficient for the evaluation of the application or
the preparation of the permit (4). For another nine
1993 174 1.56 84,318 wind farms the environmental impact statements
1994 238 2.12 87.067 and building permits applications were supplied in
1995 317 2.79 89,058 2006.
On November 29 the completed environ-
1996 437 3.76 92,259
mental impact statements and building permit ap-
1997 475 3.98 95,735 plications for two wind farms were laid down for
1998 640 5,32 99,292 public inspection. This implies that the Ministry
will not deal with other existing or future claims of
1999 645 5.34 101,508
other developers for the same site, unless the build-
2000 829 6.86 104,718 ing permit is declined. The first one is from WEOM
2001 825 6.98 107,144 for the wind farm IJmuiden with a surface area of
17 km 2 and a potential capacity between 140 MW
2002 946 7.98 108,452
and 246 MW. The second one is from Airtrcity for
2003 1,318 11.11 109,777 the wind farm West Rijn with a surface area of 45
2004 1,867 15.59 112,930 km 2 and a potential capacity between 250 MW and
350 MW (2).
2005 2,067 17.11 114,700
The reasons for developing wind power off-
2006 2,747 22.73 116,237 shore in the Netherlands stem from the fact that the
CBS Numbers country is densely populated and heavily built up.
CBS final This has led to the common understanding that it
would be almost impossible to find enough sites for
The status of applications for offshore build- wind capacity to contribute sufficiently to reach the
ing permits is given in the Table 3. national renewable energy target. The Dutch North
Nine developers have supplied 65 inception Sea with water depths of 20 to 40 m and yearly aver-
memoranda to the Ministry for a wind farm loca- age wind speeds of 9 m/s at 80 m height offers good
tion under rules for requesting building permits for opportunities to develop up to 10 GW of offshore
the construction of wind farms under the Public wind capacity, which could supply around 30% of
Works and Water Management Act (2). These de- the electricity consumption of the country.
velopers selected locations with a total surface area
of 2,552 km 2 on which, dependent on the layout, 3.1.2 Repowering
the installed capacity can be between 20 GW and Although the government does not have a
25 GW. However, the overlap in locations is about separate repowering program, it was possible under
1,240 km 2 . That is why the installed capacity can at the MEP subsidy rules to redevelop an existing site

IEA Wind Energy 179


National Activities

Figure 2 Offshore Wind Farm Egmond aan Zee (OWEZ) construction yard, IJmuiden harbor.
Towers, blades, nacelles are shown. Photo J.L. ’t Hooft, SenterNovem.

Table 3 Status and progress for applications for offshore building permits
Developer Inception MER and Declined In inspection
memorandum permits procedure since
applications
WEOM 9 4 1 1
E-Connection 11 2 2
Evelop 12 2
Airtricity 9 2 1
Raedthuys 18
Arcadis 3 1
Bard Engineering, Eolic 3
Power, Global Wind Support
Total 65 11 3 2

and be eligible for the full MEP-subsidy until 1 June into large wind farms in which the original owners
2006. In past years, this has led to the refurbishing of the smaller units can participate. This is usually a
of numerous wind sites installed in the mid-eighties tedious process, because it has to be done on a vol-
to mid-nineties that had older wind turbine tech- untary basis.
nology with modern multi-MW turbines. Another
drive for repowering has come from local planning 3.2 Industrial development and
authorities. In areas where many smaller turbines operational experience
are spread out e.g. with individual turbines, the au- The average installed capacity per turbine
thorities try to encourage regrouping new turbines increased very sharply from 1,358 kW in 2005 to

180 2006 Annual Report


the Netherlands

2,248 kW in 2006. This is because the new wind wind turbines based on technology of the former
farms are using turbines with a capacity of between Lagerwey company. Besides the original 750-kW
2 MW and 3 MW, with a majority using 3-MW ma- turbine they have developed a 900-kW turbine.
chines. The average hub-height rises with this class
of machines to around 70 m. On the other hand, the 3.2.1 Business developments
installed swept area per unit of power decreased to The participation of large companies, as
around 2.1 m 2 /kW (see Figure 3). described below, in wind energy developments is
Of the wind turbines installed in 2006, Vestas’ important.
share was 62% (see Table 4 and Table 5). Enercon’s Econcern is the holding company of Ecofys,
share of 24% in 2005 went up sharply to 36% in Evelop, Ecostream, and Ecoventures. The mission of
2006. The other manufacturers’ shares the remained these European companies is to ensure “a sustain-
at 2%. Unlike the previous year, General Electric able energy supply for everyone.” Econcern deliv-
Wind did not install any turbines in the Netherlands ers projects, innovative products, and services for a
in 2006. Seven wind farms with an installed capac- sustainable energy supply. Econcern received a total
ity of 10 MW or higher were installed in 2006. The injection of capital of 80 million € from SHV and
largest is OWEZ with 108 MW. The two second Entrepreneurs Fund in the Netherlands. The com-
largest at around 50 MW each are equipped with pany employs around 550 people. Ecofys was estab-
Enercon turbines. lished in 1984 and specialises in energy saving and
Emergya Wind Technologies (EWT) installed renewable energy solutions. It offers research and
its first DirectWind turbine of 900 kW, 54-m diam- consultancy services as well as product development.
eter. EWT markets, sells, and assembles direct-drive It employs almost 300 people in eleven countries.

Figure 3 Annual average characteristics of installed turbines in


the Netherlands.

IEA Wind Energy 181


National Activities

Table 4 Distribution of new wind turbines by manufacturer


Manufacturer Turbines Installed Rotor area
[number] [MW] [%] [m2]
Vestas 93 216.2 62 483,970
Enercon 58 127.1 36 225,334
Nordex 2 5.0 1 12,723
Siemens 1 0.6 0 1,521
Emergya WT 1 0.9 0 2,290
Micon 1 0.9 0 2,290
Total 156 350.7 100 728,128

Table 5 Size of wind plants installed in 2006


Wind farms > 5MW Manufacturer Turbines Height Diameter Capacity Swept area
[number] [m] [m] [MW] [m2]
Offshore Wind Farm Vestas 36 70 90 108.0 229,022
Egmond aan Zee
Delfzijl Zuid Enercon 26 85 71 57.4 102,939
Lelystad Enercon 20 68 71 46.0 79,184
Mammoettocht-
Neushoorntocht
Biddinghuizen Vestas 17 70 80 34.0 85,451
Dronten-Zeebiestocht Enercon 7 70 71 16.1 27,714
Middelharnis # Vestas 7 60 80 14.0 35,186
Rotterdam- Vestas 4 105 90 12.0 25,447
Dintelhaven
Oosterschelde- Vestas 3 78 90 9.0 19,085
Neeltje Jans
Nrd-Beveland- Vestas 3 80 90 9.0 19,085
Jacobahaven
Waddinxveen Vestas 3 75 90 9.0 19,085
Anna Paulowna Vestas 7 50 52.2 6.3 14,981
Oosterschelde- Vestas 2 78 90 6.0 12,723
Noordland
Kerkrade Nordex 2 80 90 5.0 12,723
Various < 5MW NL/DK/GE - - - 19.2 45,476
Total 351.0 728,102

182 2006 Annual Report


the Netherlands

Areas of expertise include solar energy, wind energy, farm Egmond aan Zee (OWEZ). Investment costs
biomass, hydrogen technology, energy supply, and are around 200 million € and financed on balance
climate policies. by Nuon and Shell. The wind farm will initially be
Ecostream supplies turnkey solar power plants operated by EBC under a 5-year warranty, opera-
and PV systems in seven European countries and the tions, and maintenance contract. The electricity is
United States. Ecoventures commercializes innova- sold to Nuon Energy Trading, an affiliate of Nuon.
tive products, systems, and services developed with- It will produce approximately 350 GWh per year.
in the Econcern group. It does this by establishing The EBC drove the first of the 36 monopiles with
dedicated companies, often together with strategic the crane ship Svanen on 17 April 2006 and the last
partners, or by selling licenses. Companies cover the one on June 28. A2SEA placed the first turbine on
areas of: bio-methanol; CHP; zero-energy build- 6 June 2006 with the crane ship Ocean Energy, and
ings; closed greenhouses; wireless and solar powered it placed the last turbine on 26 August 2006. The
multi-service shops; carbon credits; seawater air- transformer was put in the transformer station in
conditioning systems; a solar-grade polysilicon plant the dunes at Velsen-Noord on 11 May. The first row
for the photovoltaic industry, innovative solar water of turbines was put into operation on 5 October
heaters and solar modules. 2006 and the last row in the third week of Decem-
In April 2006 Econcern took over the wind ber (Figure 4).
project developer WinWind, with a portfolio of 300 In September, construction started on the sec-
MW of wind projects, and 50 MW under construc- ond offshore wind farm Q7 in the Netherlands part
tion. In November 2006 Econcern took over the of the North Sea. This offshore wind farm is just
French developer of wind farms Terra Nova. Terra outside the 12-mile zone south-west of OWEZ. The
Nova has a portfolio of 66 projects with around 120-MW wind farm Q7 will consist of 60 Vestas 2-
1,000 MW, mainly in the North of France and has MW, 80-m diameter turbines. The project is owned
7 employees. Ecoventures, a daughter of Econcern, and developed by a group of companies of ENECO
took a 51% share in DarwinD. During 2006, the Holding NV, Econcern BV, and Energy Investment
company DarwindD was restructured. Darwind is Holdings. It is built by Vestas Wind Systems A/S,
an initiative of foundation ATO that was formed to Van Oord Dredging, and Marine Contractors BV
promote industrial development in the Province of (“Van Oord”) under separate construction contracts.
North-Holland. DarwinD is a developer and manu- The windfarm will initially be operated by Vestas
facturer of offshore wind turbines. Econcern wants Offshore, an affiliate of Vestas, under a 5-year war-
to enable and participate in the development a “non- ranty, operations, and maintenance contract. It is
compromise” innovative offshore wind technology. expected to be completed by 1 March 2008, for a
It needs reliable offshore wind turbines for the de- total investment cost of 383 million € . It will sell
velopment of 2,000 MW of offshore projects. In the electricity to ENECO Energy Trade B.V, an affili-
following years DarwinD will produce a prototype ate of ENECO. It will produce approximately 400
of a direct-drive, permanent-magnet, single bear- GWh per year. Van Oord’s installation ship Jumping
ing wind turbine. It will be installed at the enlarged Jack started driving monopiles in the sea-bed for Q7
Energy Research Centre of the Netherlands (ECN) in September (Figure 5).
wind test site in Wieringermeer. The province of Q7’s financing is probably the first non-re-
North Holland guarantees 8.5 million € for these course financing for an offshore wind farm. The tai-
prototype turbines, on top of 2 million € for testing lor-made financing structure includes 219 million € ,
and certification of the prototype (see also news (5) 11-year, non-recourse, long-term facilities financing
and (6). and 160 million € for short-term construction fa-
cilities (7). Further details of this intricate piece of
3.2.2 New commercial applications such as offshore financial engineering were revealed during an off-
deployment shore financing workshop of the consortium We@
During 2006, the Egmond Building Com- sea and can be found at their website (8).
bination (EBC) built the Near Shore Wind farm
(NSW) on the order of NoordzeeWind a legal entity 3.3 Economic details
of Shell Renewables and Nuon. The EBC is a joint The Ministry of Economic Affairs contracted
venture of Ballast Nedam and Vestas. The NSW was ECN and KEMA (a commercial enterprise special-
renamed by NoordzeeWind into Offshore Wind izing in high-grade technical consultancy, inspec-

IEA Wind Energy 183


National Activities

Figure 4 Construction of Offshore Wind farm Egmond aan Zee (OWEZ). Photo G.Pascaud,
A2SEA.

Figure 5 Picture of Jumping Jack placing a transition piece on Q7 monopile. In the back-
ground the OWEZ. Photo Mammoet van Oord.

tion, testing and certification) in 2006 to assess the ence between cost and market prices for each renew-
financial viability of the different renewable elec- able electricity source and technology for 2008. Due
tricity production technologies (9). The Ministry in- to the stop in production subsidies as of 18 August
tended to use this assessment to decide on the level 2006, no final advice was given on subsidy levels.
of the MEP-subsidies required to bridge the differ- Also the results have not been presented to stake-

184 2006 Annual Report


the Netherlands

holders for consultation. Nevertheless the ECN price to rise from 37 € /MWh to 56 € /MWh. For
and KEMA report gives the technical-economic long-term contracts the report expects a reduction
parameters. of 5 € /MWh of the market price.

3.3.1 Wind on land 4.0 National Incentive Programs


Learning effects have had a downward in-
fluence on the cost of wind turbines but were not For the basic description of support initiatives
reflected in the market price during 2006. This is and market stimulation instruments in the Nether-
due to the strong international increased demand for lands, please refer to pages 162 and 163, IEA Wind
large turbines of 2 MW to 3 MW capacities with Energy 2004 Annual Report (10).
tower heights of 80 to 90 m and the (temporarily) The government announced an immediate
higher steel and copper prices. As a consequence, de- standstill for new offshore wind production subsidies
livery times of wind turbines increased to more than on 10 May 2005 in light of the possibility of over-
a year and market prices did not decrease. The refer- achieving the 9% sustainable electricity target for
ence value for investment costs increased to 1,200 2010. The Minister of Economic Affairs announced
€ /kW in 2008. The total for the reference costs for that for another 480 MW of offshore wind the MEP
operation and maintenance remain the same. The production subsidy would be tendered for the lowest
values are summarized in Table 6. electricity price. During 2006, this has not resulted
in rules or regulations. A change in the MEP produc-
3.3.2 Wind offshore tion tariff for wind on land was announced by the
The international spread in investment costs government early in 2006. Starting July 1, the tariff
for wind offshore is large at 1,650–2,250 € /kW. The would change from 77 € /MWh for the first 18,000
costs are largely dependent on weather and wave full-load hours to 65 € /MWh for the first 20,000
conditions, water depth, and distance to the coast. full-load hours. On August 18 the Minister of Eco-
New offshore wind farms in the Netherlands have nomic Affairs announced an immediate reduction
to be built outside the 12-mile zone with distances to 0 € /MWh of the subsidies for all new renewable
of 20 to 60 km from shore and in 20 to 35-m deep electricity projects. Projects which applied for the
water. Internationally, there is large uncertainty in MEP production subsidy before August 18 were still
the offshore wind sector, because projects have lon- eligible. The reasoning behind these measures was
ger lead times than anticipated and the costs are un- as follows: The interim government (at that time)
clear. For new projects in the Netherlands, there are would step down on November 11, with the general
claims that prices are up to 3,000 € /kW (e.g. the Q7 elections. It had promised to be prudent with policy
wind farm). The ECN/KEMA report recommends decisions that reached after its term. The already ap-
using a reference price of 2,200 € /kW for 2008 and propriated budgets for existing and applied projects
to actualise the investment costs at a later date. Ref- would be sufficient to reach the Netherlands target
erence costs for O&M contracts remained the same, of 9% electricity in 2010. The expected expenditure
and full-load hours increased to 3,650, which seems for these projects in 2007 is 550 million € and in the
representative for sites further out at sea (Table 7). years after that 650 million € . The interim govern-
For both wind on land and offshore the ECN/ ment left decisions about new targets for renewable
KEMA report forecasts the grey electricity market energy and the necessary extra budgets to the new

Table 6 Technical and financial parameters of wind onshore


2006–2007 2008
Investment costs [€/kW] 1100 1200
Full load hours [h/yr] 2000 2000
Fixed O&M costs [€/kW] 39 39
Electricity price [€/MWh] 37 56
Reduction long term [€/MWh] 5 5
contracts
Imbalance costs [€/MWh] 6 4

IEA Wind Energy 185


National Activities

Table 7 Technical and financial parameters wind offshore


2006-2007 2008
Investment costs [€/kW] 2000 2200
Full load hours [h/yr] 3350 3650
Fixed O&M costs [€/kW] 80 80
Electricity price [€/MWh] 37 56
Reduction long term [€/MWh] 5 5
contracts
Imbalance costs [€/MWh] 6 4

government, which was expected in the beginning and areas for research. The government has a budget
of 2007. available of 400 million € for a 5-year timeframe.
One of these platforms was the Transition to
4.1 Impacts of incentive programs Offshore Wind (TOW). The main target of TOW
The effect of MEP production subsidy in for the next 2 years is to set out routes for the pe-
2006 was that 350 MW of new wind capacity was riod 2010-2020. This should result in the develop-
installed. The effect of the announcement of change ment of offshore wind farms by market parties on
in the MEP-tariffs in the beginning of 2006 was that commercially and socially sustainable grounds. In
many developers hurried to file applications before the end, offshore wind should provide 10–20% of
July 1, and this resulted in wind projects with a total the Netherlands’ electricity consumption. The plat-
capacity of 600 MW to be installed up to 2008. form identified three domains in which significant
Also the market expected that the MEP-tariffs progress is needed to reach these targets: achieving
after 2007 would go down because of the rising grey commercial value of energy delivered; improving
electricity prices. After all, the MEP-tariff is based the cost efficiency of energy production systems,
on the calculations each year of the financial viabil- support systems, installation and maintenance; and
ity of typical wind projects. Basically, the financially achieving acceptance by society. The platform repre-
viable electricity price of a project minus the grey sents organisations that cover all aspects of offshore
electricity price is the MEP-tariff (11). Finally, de- wind such as development of knowledge, project de-
velopers felt uncertain about the amount of subsidy velopment, construction, exploitation, grid integra-
available after 2007. The effect of reducing the sub- tion, financing and public acceptance, the ministry
sidy to zero in August was that the markets put the of economic affairs, and the ministry of traffic and
investment decisions for new projects on hold. transport.
The Platform for a Sustainable Electricity
4.2 Effect of Energy Transition initiatives Supply is developing four transition routes: increas-
A new energy policy “Energy Transition” ing the share of renewable energy sources; improving
was introduced by the Ministry of Economic Af- the sustainability of traditional electricity produc-
fairs in 2001. At the basis of this policy are long- tion (e.g. through CO 2 storage and co-generation);
term energy scenarios for the transition to a sustain- modifying the electrical infrastructure, and achiev-
able energy society (CO 2 -free electricity in 2050). ing electricity savings. The platform represents or-
A strong R&D agenda was set by formulating the ganisations like the major electricity companies;
energy research strategy called EOS. Energy Tran- universities; financing; research institutes, develop-
sition focuses on processes that lead to the desired ers and environmental interest groups.
sustainable energy society and removes obstacles on
the way to this transition. In 2004, the government 5.0 R&D Activities
organised the so-called transition platforms. The
platforms consist of stakeholders from environmen- The EOS-LT R&D program aims at research
tal groups, industry, electricity companies, and gov- that strengthens the Netherlands knowledge posi-
ernment. The platforms set out the transition routes tion and clears the way for the introduction of in-
and recommend measures, demonstration projects, novative energy technologies. It has a yearly budget

186 2006 Annual Report


the Netherlands

of around 42 million € . One of the themes of the 5.1 Interesting new research efforts
program is “Offshore wind generation and electric- Rotorflow I is a project in which ECN and
ity grids.” Table 8 gives the four focal points and Twente Technical University (TTU) are research-
objectives. ing new methods for the calculation of aerodynamic
In 2005, the Ministry EZ decided to fund re- loads that combine the computational efficiency of
search in which ECN has a major strength directly blade element impulse methods (BEM) while aim-
from the EOS research program. In 2006, the 4-year ing for the accuracy of computational fluid dynam-
program of ECN was approved by the Energy Ad- ics (CFD). To increase the computational efficiency
visory Committee of the program. The program ECN developed a hierarchic structure of meshed
concentrates on five major research areas: 1) aero elements and tested it extensively. Belonging to the
elasticity; 2) condition monitoring and measure- test procedure was the visualisation of the distribu-
ment techniques; 3) control technology; 4) wind tion of the computational elements for different ge-
farm aerodynamics; and 5) decision support models ometries. An example is given in Figure 6.
for maintenance and operation. For research areas in which ECN together
The Consortium We@sea develops knowl- with TU Delft and the Knowledge Centre WMC
edge and skills to build, exploit, and decommission have a major strength, the consortium INNWIND
large-scale offshore wind farms. It runs a 4-year pro- was funded with 1 million € per year for a 4-year
gram on offshore wind energy that is funded from program. The program concentrates on five thrust
the national natural gas fund. This program, run- areas: concepts and components; aerodynamics and
ning from 2004 to 2008, of 26 million € with a sub- construction dynamics; materials and constructions;
sidy of 13 million € concentrates on medium-term model development and realisation of an integrated
research. The consortium consists of companies design environment and design guidelines.
in offshore technology, wind energy technology, Projects awarded under the EOS LT program
offshore wind farm development, logistics, inves- area ‘Offshore wind generation and electricity grids’
tors, energy consultants, environment, and other in 2005 and 2006 are listed in Table 9.
stakeholders. The research lines are: offshore wind
power generation; spatial planning and environ- 5.2 Interesting completed research
mental aspects; energy transport and distribution; WT-Bird The ECN research program con-
energy market and finance; installation, operation cluded the development of a new method for detec-
and maintenance, and dismantling; education, train- tion and registration of bird collisions that is suitable
ing, and knowledge dissemination; and the PhD@ for continuous remote operation in both onshore
Sea project. The PhD@Sea research subjects are di- and offshore wind farms. It tested a prototype on
vided over the research lines of the overall program. a land-based multi-megawatt turbine at their wind
Its topics are: large blades; wind turbine concepts; turbine test site. The WT-Bird method is based on
morphology of the North Sea bed; grid stability of detection of a bird collision through vibration of the
large-scale integration of wind energy in electrical blade that triggers video registration. Functional
power systems; park-grid interaction; offshore ac- tests with bird dummies of only 50 grams and 7 cm
cess through the Ampelmann; reliability, availabil- in diameter, representing the smallest abundant bird
ity, maintainability, and serviceability analyses and species along the Dutch coastal region, showed that
scenarios. the majority of impacts were detected. The flight

Table 8 EOS-LT focal points and objectives of theme Offshore wind generation
and electricity grids
Focal points Objective
Knowledge for design of wind conversion offshore Wind conversion offshore competitive with fossil fuel
based generation in 2020
Integration of 6,000 MW of offshore wind in the Economic, reliable, and stable.
Netherlands electricity grid
Technical transition of electricity networks Technologies for a sustainable energy supply
Management and maintenance of electricity Sustainable use of electricity grids in capacity and
networks time

IEA Wind Energy 187


National Activities

Figure 6 First visualisation of one of the results of the geometric core.


Picture A. van Garrel, ECN.

Table 9 Projects funded under the EOS-LT research program


Title Partners Funding
period
[years]
I Projects offshore wind generation
New methods for the calculation of aerodynamic loads ECN, TUT 4
(Rotorflow I)
Sustainable Control. A new approach to operate wind ECN, DTU, Nordex, Mitsubishi, 4
turbines. (SUSCON) Ecotecnia
Program consortium INNWIND ECN, DTU, WMC 1 of 4
Wind multi year program ECN ECN 1 of 4
II Projects electricity grids
Flexible electricity grids for integration of RES (Flexibel) ECN, KEMA, ETU 4
Stability and control of the future electricity grid in NL DTU 4
(STABE)
Electrical infrastructure of the future (EIT) ETU, KEMA, ECN 4
Quality of the voltage in future infrastructure (KTI) ETU, ECN, Laborelec 4
Synergy of intelligence and energy in future grids DTU, NUON 4
(SINERGIE)
Intelligent E-Transport Management (ITM) KEMA, ECN, Essent, 4
Continuon, IWO
Rules for a reliable and sustainable production of ETU 4
electricity (Rules)
Transition Roadmap Energy Infrastructure for the ETU 4
Netherlands (TREIN)
Grids multi year program ECN ECN 1 of 4
Total funding during 2005 and 2006: 20 million €

188 2006 Annual Report


the Netherlands

track of these dummies and the collision events were tion can be reduced by an offset on blade pitch or
clearly visible on the video registrations. So far only generator torque.
one real bird collided with a blade and luckily sur- Monitoring and Evaluation of OWEZ Further
vived the hit. As ECN’s wind test site is in an area results of the Monitoring and Evaluation program of
with few birds, the systems needs to be calibrated in the Offshore Wind farm Egmond aan Zee (OWEZ,
an area where the probability of a bird collision is formerly know as NSW) became available in 2006.
higher and refinements to the system can be made. Wind Climate NoordzeeWind supplied the “Man-
ECN intends to offer a service to wind farm owners ual data files meteo mast NoordzeeWind,” which
and operators in which it is responsible for the instal- introduces the project and the site and briefly de-
lation and operation of the system and reports bird scribes the instrumentation, the data files, and qual-
collisions to the customer. ity of data. It lists the instruments, channels, and
EWTW Validation Measurements ECN con- data and gives the instrumentation drawing of the
cluded a data collection project to validate models met mast. The wind climate in this undisturbed
for performance and load calculations of wind tur- situation contains one year of 10 min average wind
bines in wake conditions. ECN researchers installed measurements of the site at three heights of the me-
a data-acquisition system and measured and collect- teorological mast from July 2005 to June 2006. The
ed data during two years at the ECN Wind Turbine data for the coordinates of the metrological mast and
Test Station Wieringermeer (EWTW). Part of this wind turbines are necessary to determine the wind
test site consists of a row of five Nordex 80 wind directions for undisturbed wind measurements and
turbines with variable speed and pitch control. The PV-curve measurements, single, and multiple wake
turbines are placed at a distance of 3.8 rotor diam- measurements (Figure 7). The data can be down-
eters. The farm is equipped with a meteorological loaded from the SenterNovem offshore wind energy
mast. Meteorological data up to a height of 108 m, web page on wind climate (12).
operational parameters of all turbines, and bend- The research also produced a report on bio-
ing moments in blades and tower of one turbine logical fouling: Biological Fouling Pre-survey of
were measured during two years and automatically marine fouling on turbine support structures of the
stored in a database. The project included process- Offshore Windfarm Egmond aan Zee. The report
ing measurement data for direct validation of mod- describes the methodology, the results of the pre-
els for calculation of wind characteristics and farm survey into existing knowledge, and the approach of
performance in the wake and for determination of monitoring. The data can be downloaded from the
extreme and fatigue loads. SenterNovem offshore wind energy web page on
Heat & Flux Wind Turbine Controller Over the biological fouling (13).
years 1999–2003, ECN invented and patented the A report on the effects ship collisions, oil
control technique called Heat & Flux. The idea spills, and shipping radar is titled MEP-NSW: Mari-
behind Heat & Flux is that tuning turbines at the time and Marine risk assessment of calamitous (oil)
windward side of a wind farm will making it more spills. It reports the results of a study by WL/Delft
transparent than usual (i.e. realising an axial induc- Hydraulics in collaboration with MARIN. It assesses
tion factor below the Lanchester-Betz optimum of the probabilities of collisions due to the presence of
1/3) should raise net farm production and lower me- the OWEZ, the effects of calamitous oil (chemical)
chanical turbine loading without causing drawbacks. spills due to shipping collisions with the OWEZ,
For scaled farms in a boundary layer wind tunnel, and of the effects of the OWEZ on shipping radar.
ECN proved this hypothesis in previous projects. To The data can be downloaded from the SenterNovem
enable alternative turbine transparencies, the wind offshore wind energy web page on shipping (14).
turbine controller must support the additional con- We@sea Program The consortium We@sea
trol aim “desired transparency.” During this study, was active in 2006. It organised an offshore financ-
ECN has determined a general method to design a ing workshop in which various experts revealed the
transparency control algorithm. This method has finer points of financial engineering. The presen-
been implemented in ECN’s Control Tool for de- tations can be found at their Website (8). We@sea
signing wind turbine control algorithms. The aero- also sponsored the Sixth International Workshop on
elastic wind turbine code Phatas was used to verify Large-Scale Integration of Wind Power and Trans-
the resulting control algorithm. Heat & Flux does mission Networks for Offshore Wind Farms, Oc-
not fundamentally change the control of horizontal tober 2006 in Delft, The Netherlands. Two PhD
axis, variable speed wind turbines. The axial induc- students from PhD@Sea project were instrumental

IEA Wind Energy 189


National Activities

due to wind integration, in particular base-load


and ramp rate problems. These may constrain the
amount of wind that can be accommodated given a
projected production park of dispatchable units and
yearly load profile by 2012. Wind data from 2004–
2005, interpolated to existing locations for onshore
and planned locations for offshore wind parks, were
used to create a realistic yearly wind energy output
profile. The unit commitment and economic dis-
patch formulation includes ramp rate constraints for
generation schedules and reserve activation as well
as minimum up- and down times. Of particular in-
terest in this study are the combined heat and power
(CHP) units, which impose additional constraints
coupling their heat and energy production. Since
no insight was available into the aggregated predict-
ability of wind generation, both a 0-MW prediction,
where conventional units are scheduled to meet the
total load, and a perfect prediction have been inves-
tigated. No forms of electrical or heat storage were
considered. The results show no ramp rate problems
in the Dutch system by 2012; however base-load
problems may arise at high wind penetration levels,
only to be prevented by wasting available wind re-
sources.
As part of the PhD@Sea project Comparison
of Support Schemes and Market Designs for Wind
Power, K. Verhaegen et. al. presented the results of
an evaluation and impact on the system integration
of wind power. A system model was developed for
the simulation of system balancing including wind
power integration under various regimes. The pre-
liminary results demonstrate that the market design
for integrating wind power has a major impact on
the overall system balance, most notably the Area
Control Error, being a key parameter for system
operation. In case wind power has to be balanced
by the TSO, some wind power fluctuations may be
cancelled out between different wind farms due to
Figure 7 Meteorogogical mast NoordzeeWind. geographical spread, but large imbalances are inevi-
Photo S. de Jong, Rijkswaterstaat Noordzee. table. In a market-based environment however, the
market parties should be responsible for balancing
in the success of the workshop organised by Delft their portfolio as such in order to keep the imbal-
Technical University, Energynautics GmbH, and ance on system level as low as possible.
Royal Institute of Technology, Sweden. More info of We@sea work can be found on
As part of the PhD@Sea project System Inte- their website (15).
gration of Large-Scale Wind Power in the Nether-
lands, B.C. Ummels et. al. presented the following 5.3 Collaborative Research
results of a study of unit commitment and dispatch Various Netherlands organisations participate
in the Netherlands in the presence of future large- in IEA Wind Tasks 11, 20, 21, 23, and 25. The par-
scale wind energy production. The aim was to iden- ticipation benefits the Netherlands R&D in various
tify bottlenecks in system planning and operation ways. The participation of Dutch researchers in ex-

190 2006 Annual Report


the Netherlands

pert meetings of Task 11 is valuable for the exchange together through collaborative research. The results
and discussion of ideas and projects in progress and is can accelerate the implementation of offshore wind
highly appreciated by Dutch researchers because of power in the Netherlands. Task 25 on design and
the ample time for discussion and free flow format. operation of power systems with large amounts of
Participation in Task 20 on aerodynamics gives di- wind power production make it possible to tap in to
rect access to data from the NASA/Ames wind tun- the collective research power of the ten participat-
nel experiments which would be too costly to repeat ing countries to study the economic and technical
in the Netherlands. The number of aerodynamics conditions to realise a maximum amount of wind
researchers involved in the task creates the critical energy in North American and European power
mass that makes fruitful research possible. Result- systems. The result will be of value for the Nether-
ing knowledge about the fundamental mechanisms lands Transition Platform for a Sustainable Electric-
of aerodynamics and its modelling are subsequently ity Supply. Participation in the IEA Wind tasks is
incorporated in national research and design codes. also a cost-effective way to do research. On average,
Participation in Task 21 on dynamic models of wind each euro spent in our country on research gives ac-
farms for power system studies gives access to mea- cess to five euros value of research spent in the other
surement data that are not available in the Nether- participating countries.
lands. The participants are able to improve dynamic Netherlands research institutes also par-
models of wind farms and validate them against ticipate in the European projects Mexico, Optimat
measurements. The resulting models are used in Blades, Accuwind, and Upwind which is closely in-
the EOS long-term research program for detailed terlinked with the Netherlands Innwind project.
grid studies in voltage stability with large amounts
of offshore wind power. Participation in Task 23 on References:
offshore deployment gives access to the experience (1) Centraal Bureau voor de Statistiek, Statline
of offshore wind farms in the participating coun- 2007.
tries. Sharing the experiences gives all participants (2) For a complete updated list see http://www.
access to a larger installed base than each individual senternovem.nl /Offshore_Wind _ Energy/loca-
country. Bottlenecks identified can then be resolved tions_and_licences/licence_system.asp.

Figure 8 108 MW Offshore Wind Farm Egmond aan Zee. Photo by S. de Jong, Rijkswater-
staat Noordzee.

IEA Wind Energy 191


National Activities

(3) Afwijzing aanvraag vergunning Windpark (10) www.ieawind.org, Annual Reports.


Den Haag I, http://www.senternovem.nl/offshore_ (11) Please refer to pages 162 and 163, IEA Wind
windenergie/nieuws/afwijzing_aanvraag_vergun- Energy 2004 Annual Report, for the basic explana-
ning_windpark_den_haag_i.asp tion of MEP-tariffs. www.ieawind.org, Annual Re-
(4) Afwijzing vergunningaanvragen offshore ports.
windparken Q4-WP en P12-WP, http://www. (12) Download data wind climate from
senternovem.nl/offshore_windenergie/nieuws/af- http://www.senternovem.nl/Offshore_Wind_
wijzing_vergunningaanvragen_offshore_windpar- Energ y/tech nolog y/ Mon itor ing _ M EP-NSW/
ken_q4-wp_en_p12-wp.asp wind_climate/index.asp
(5) Econcern stapt in windturbinemaker Dar- (13) Download data biological fouling from
winD, Wind Service Holland http://home.planet. http://www.senternovem.nl/Offshore_Wind_
nl/~windsh/N-06NL.html Energy/technology/Monitoring_MEP-NSW/bio-
(6) Econcern news archive 2006 June 30 - fouling/index.asp
Econcern invests in wind turbine manufacturer (14) Download data shipping from
DarwinD http://www.econcern.com/index. http://www.senternovem.nl/Offshore_Wind_
php?option=com_content&task=view&id=59&Ite Energy/environment/Monitoring _M EP_NSW/
mid=68 shipping/index.asp
(7) See press release . EUR 379 M Facilities for (15) Info of We@sea work at http://www.we-at-
the construction and operation of an offshore wind sea.org/index.php
farm at http://www.q7wind.nl/en/news.htm
(8) Download the file ‘Key aspects of the fi- Author: Jaap L. ’t Hooft, SenterNovem, Nether-
nancing of Offshore Windpark Q7’ via http:// lands agency for innovation and sustainability, the
www.we-at-sea.org/docs/Q7tailormadefinancing- Netherlands.
structure.pdf at http://www.we-at-sea.org/index.
php?keuze=n&nummer=26
(9) Technisch-economische parameters van
duurzame elektriciteitsopties in 2008, Conceptad-
vies onrendabele topberekeningen, ECN/KEMA,
September 2006.

192 2006 Annual Report


Norway
23

1.0 Introduction energy efficiency, the Norwegian government in


October 2006 proposed allocating 20 billion NOK
In 2006, installed wind-power capacity (approximately 2.3 billion €) to a new fund. The
in Norway increased from 270 MW to 325 MW first 10 billion NOK are proposed to be allocated to
(Figure 1). In Norway, interest in wind power as a the state budget for 2007 presented to the Storting
commercial source of electricity is high. By the end on 6 October 2006. Another 10 billion NOK will
of 2006, there were project plans for over 15,000 be proposed to be allocated to this Basic Fund in the
MW in Norway. However, financing and public ac- 2009 state budget.
ceptance remain substantial hurdles to overcome for When the Energy Fund reaches its full size of
the installation of wind turbines. Although the price 20 billion NOK, the yield from the new Basic Fund
for long-term future electricity has risen during past is estimated to be about 880 million NOK (approxi-
years, it is still not a strong enough incentive to spur mately 100 million €) annually. This amount will
new investments in wind energy. more than double today’s level of support, amount-
ing to approximately 700 million NOK, which is
2.0 Progress toward national objectives financed by an earmarked levy on the distribution
tariff. The state-owned agency Enova will adminis-
2.1 Strategy ter the yield from the Basic Fund.
Norway’s national goal for renewable energy In 2006, renewable sources of electricity
production and energy savings in 2010 is 12 TWh contributed 98.9% of national electrical demand.
above the 2001 level. At least 3 TWh of this pro- About 0.55% of the renewable supply comes from
duction will be achieved from wind power and 4 wind power. Since electricity production in Norway
TWh from water-based central heating systems. mainly comes from hydropower, the share of renew-
For the longer term (2016), the government has es- able energy varies considerably from one year to the
tablished a target of 30 TWh above the 2001 level next. It turns out that 2006 was a normal year with
of production from renewable energy sources and average hydropower production.
energy efficiency. To help achieve this goal, the En- For 2010, the target set by the government
ergy Fund, administered by the state-owned agency for the renewable share of electricity consumption
Enova, gives grants to energy saving and renewable is 90%. According to a government statement, this
energy production projects. Financed by a levy on target corresponds with approximately 6 to 7 TWh
the transmission tariff, the Energy Fund contained new production capacity of electricity from renew-
approximately 88 million € in 2006. able energy sources being introduced from 1997 to
To strengthen efforts to increase the produc- 2010.
tion and use of renewable energy and to improve

Table 1 Key Statistics 2006: Norway


Total installed wind generation 325 MW
New wind generation installed 57 MW
Total electrical output from wind 0.671 TWh
Wind generation as % of national electric demand 0.55 %
Target in 2010 3 TWh

IEA Wind Energy 193


National Activities

Figure 1 Installed wind power capacity in Norway.

2.2 Progress toward the wind target 3.2 Industrial development


Interest in wind power is high, and several ScanWind Group AS is a new Norway-based
projects have been submitted for approval. More manufacturer of large wind turbines (3 MW and
than 1,200 MW has received approval. This indi- larger) for use in Class 1 wind areas. The company
cates that the 3-TWh target can be reached by 2010, has developed a 3-MW direct-driven wind turbine
assuming that effective economic incentives can be design (ScanWind 3000 DL) and a geared version of
put in place. In addition, projects totaling an annual the same size (ScanWind 3000 GL).
production of 35 TWh have been proposed, includ- Some of the Norwegian industry takes part
ing a 1,400-MW (4.5-TWh/year) offshore wind- in component production for wind energy systems,
power project, suggesting additional substantial de- e.g., wind turbine blades and nacelles. A new ini-
velopment after 2010. tiative has begun to develop a new weight-reduced
The target for wind power of 3 TWh of gen- generator for wind-power applications. The main
eration by 2010 represents approximately 1,000 objective of this project is to develop a new perma-
MW installed capacity at the most favorable sites. nent magnet generation system that reduces the gen-
Since 2001, Enova has signed contracts with energy erator mass by at least 25%.
utilities for 12 wind-power projects. The projects
represent an estimated 1.56 TWh/year of energy 3.3 Economic details
production (approximately 500 MW). By the end of
2006, approximately 300 GWh was under construc- The unit cost of the Norwegian wind tur-
tion. Enova did not give investment grants to new bines erected in 2006 was on average 10,000 NOK/
wind-power projects in 2006. kW (1,250 €/kW), including infrastructure and grid
connection. In some remote areas having favorable
3.0 Benefits to the national economy wind conditions, the cost of grid connection is too
high to make the development of wind energy eco-
3.1 Market characteristics nomical. In addition, the capacity of the existing
Production of wind power is dispersed among grid is a limiting factor in many places and restricts
seven energy companies, some of which are small the size of the wind farms being constructed. Most
local utilities. The largest wind-power projects are new wind farms are designed taking into account
operated by big national energy companies that the limitation of the capacity of the grid. An increase
also own power stations in foreign countries. So far, of the grid capacity can be an option in some areas.
there is no significant wind turbine manufacturing Generally, areas with the best wind conditions are
industry in Norway. located in the northern part of the country, but these
areas are too far from the consumer. Constructing

194 2006 Annual Report


Norway

new transmission lines has been considered, but so The following wind energy R&D projects
far the lower cost for generation in the north, where have been approved for funding:
wind conditions are more favorable, does not make • A study of the potential of offshore wind
up for the additional cost of building new lines. energy is planned.
Estimates of production costs from sites with • Two concepts for floating wind turbines are
good wind conditions suggest a production cost of under development. The systems are designed
about 370 NOK/MWh (46 €/MWh), including to operate in areas of deep water (200 m to
capital costs (discount rate 6.5%, 20-year period) and 800 m). A prototype is expected to be in oper-
operations and maintenance. During the past few ation during 2008.
years, the spot market electricity price on the Nord • Several projects will deal with wind re-
Pool (Nordic electricity marketplace) has increased source mapping and micrositing in complex
noticeably, leading the long-term expected price to terrain.
be more than 320 NOK/MWh (40 €/MWh). Un- • In 2001, to assist the development of wind
fortunately, the cost of wind energy has increased energy in Norway, SINTEF Energy Research,
during the same period of time, so it is still unable to the Institute for Energy Technology (IFE), and
compete on commercial terms. the university in Trondheim (NTNU) under-
Nor is wind energy competitive with the took a joint initiative to develop a test station
price of many new hydropower projects, which still for wind turbines on the midwestern coast of
is an option for new green power in Norway. Even Norway. The test site was opened during the
though both wind and hydro resources are large, the summer of 2005 and is now operating. For
development of hydropower is more controversial more information, see www.viva-test.no.
than the development of wind power. • The wind/hydrogen demonstration project
at Utsira has now been in operation for two
4.0 National incentive programs years. The purpose of the project is to dem-
onstrate how renewable energy can provide a
For renewable power production, the govern- safe and efficient energy supply to isolated ar-
ment plans to establish a feed-in system in which ac- eas. The system is based on wind energy as
cepted projects will achieve a fixed support per kilo- the only energy source. Excess power is used
watt-hour in 15 years. The support level is proposed to produce hydrogen, which is to be used later
as is shown in Table 2. in a fuel cell. The system was developed and is
operated by Norsk Hydro ASA.
5.0 R, D&D activities
In addition, a wind power and hydropower
The governmental research program for sus- integration study has been initiated to establish a
tainable energy is called RENERGI. Its budget for dataset to represent the wind regime during the past
wind energy R&D in 2006 was 12.5 million NOK 30 years. The data will be compared with the hy-
(1.5 million €). drologic data we already have. Because the Norwe-
gian energy supply system is largely dependent on
hydropower, it is therefore critically vulnerable to
Table 2 Government support per
annual variations in precipitation and to prolonged
kilowatt-hour
droughts. An increasing share of wind power gives
Type of production Government topical interest to the integration of wind power and
contribution Euro/ hydropower, since both resources are naturally in-
kWh (NOK/kWh) termittent. The question is whether the two can be
Hydropower production 0.005 (0.04) complementary and can be combined to improve
representing overall performance or whether, combined, they
the first 3 MW of installed capacity tend to increase the problems of energy supply. The
Wind-power production 0.010 (0.08) latter eventuality can be the case if drought years
generally coincide with periods of low mean wind
Power production from biofuels and 0.0125 (0.10)
immature technologies speed.

IEA Wind Energy 195


National Activities

6.0 The Next Term acceptance will determine how many turbines are
installed in the coming term.
By the end of 2006, project plans for 120 MW
of new wind capacity were under way, and more Authors: Knut Hofstad, NVE; Viggo Iversen,
than 1,200 MW had received permission/approval. Enova SF, Norway.
However, the availability of financing and public

196 2006 Annual Report


Portugal
24

1.0 Introduction capacity installed in the whole Portuguese territory


(including the Madeira and Azores archipelagos) was
Portugal has few indigenous energy resourc- 634 MW. This capacity corresponds to a growth rate
es, such as those that satisfy the majority of the en- of about 59%, and the accumulated installed capac-
ergy needs of the economically developed countries, ity corresponds to 45% of the 2010 goal. The slow-
such as oil, gas, and coal. This situation leads to a ing of the growth rate was already expected since
large dependence on foreign economies for fossil the need to construct new transmission lines and the
primary resources. In this context, the contribution limited production capacity of the manufacturers of
of renewable energies and the need to improve their wind turbines is starting to play an important role in
penetration becomes of strategic relevance for the the wind capacity installation evolution.
country’s development. Although the wind capacity installed by the
In 2006, the total renewable sources installed end of 2006 apparently showed a moderate growth
capacity was 6,961 MW. The total electric energy rate, and the corresponding generated electrical
production from renewables has shown an impres- energy already represents about 6% of the total na-
sive 86% growth rate with respect to the end of tional electric demand according to Rede Eléctrica
2005, its final value being reported as 16,120 GWh. Nacional (REN) the Portuguese Transmission Sys-
This growth was strongly correlated with the varia- tem Operator (TSO) (1).
tion in hydropower production, about 124%. In 2006, 1,681 MW of accumulated wind ca-
In what concerns to wind energy, as will be pacity were installed and operating on the continent
shown in the next paragraphs, there was a moderate corresponding to 964 wind turbines; 7 MW in the
growth in the installed capacity when compared to Azores archipelago with 28 wind turbines; and 10
previous years. In 2006, the 2005 policy continu- MW in the Madeira archipelago corresponding to
ance was verified, with special relevance to the end- 43 wind turbines, for a total of 1,698 MW and 1,035
ing of the first phase of the 1,500 MW public call for wind turbines. Moreover, there is already 3,073
wind park grid connection opened in July 2005. MW of wind power capacity licensed in continental
Table 1 represents the key statistics for 2006 Portugal, although not all of it is installed, according
in Portugal. to the statistics of the official energy board, General
Directorate for Geology and Energy (DGGE) (2).
2.0 Progress Toward National Objectives Figure 2 represents the total installed wind capacity
by the end of 2006.
During 2006, Portugal presented a moderate During 2006, the electric energy generated
growth rate of wind capacity installation, although by wind farms in the continental territory was 2,892
it was lower than in previous years. The new wind GWh as reported by the annual DGGE statistics. In

Table 1 Key Statistics 2006: Portugal


Total installed wind generation 1,698 MW
New wind generation installed 634 MW
Total electrical output from wind 2.929 TWh
Wind generation as % of national electric demand 6%
Target: 3,750 MW by 2010
5,100 MW by 2013

IEA Wind Energy 197


National Activities

Figure 1 shows the capacity growth rate from 1998 until the end of 2006.

this year, the net electric consumption was in the 3.0 Benefits to National Economy
order of 49.0 GWh. Using estimated production for
the Azores and Madeira archipelagos (2000 hours 3.1 Market characteristics
equivalent to nominal power) the 2,929 GWh global As a contribution to the 2013 governmental
generation is obtained. This production would cor- goals published at the RCM 169/2005, by the end
respond to 2,119 hours of operation at equivalent to of 2006, the first phase of the public call for wind
nominal power. park grid connection opened in July 2005, and
Figure 3 shows the evolution of the wind en- corresponding to 1,200 MW was concluded. The
ergy generation in the period 1998–2006. winning consortium of developers was lead by the
Considering the capacity involved in the call Portuguese electrical utility, Energias de Portugal
for wind park grid connection and the capacity ac- (EDP) and had as technological partner, the German
tually under construction and/or in project, and as- manufacturer ENERCON.
suming the annual growth rate until 2010 and 2013 During 2006, a slight increase of the unit
is around 18%, the goals established in the Dec. cost of wind turbines was observed. These costs
Law 33-A and in the RCM 169, both published in were in the range of 875 to 1,150 € /kW, depending
2005, will be fully achieved. Figure 4 shows the on the characteristics of the wind turbines and/or
wind capacity growth rate estimate for the period the country of origin of the manufacturer. O&M
2000–2010. costs are approximately 2% of the investment cost,
Figure 5 represents a regional distribution of at least for the first decade of the wind power plant
the installed wind capacity in Portugal. operation.

Figure 2 Installed and accumulated wind power capacity (1998–2006).

198 2006 Annual Report


Portugal

Figure 3 Wind energy production (1998–2006).

The wind farm developers keep reporting gal in the near future. Nevertheless, and in order to
that it takes too long to obtain all the required per- respond to the growing national needs of the wind
mits and licenses, despite all the official efforts taken sector, there are several Portuguese high-quality
in order to simplify the bureaucratic process regard- tower manufacturers, already exporting for other
ing the installation of renewable power plants. foreign markets, as well as specialized construction
and electrical companies. Recently, wind energy in-
3.2 Industrial development and ternational consultancy companies have also been
operational experience observed.
During 2006, more than 260 wind turbines The consortium winner of the 2005 first
were installed in Portugal, with a mean nominal phase call has large industrial plans for the coun-
power of 2.4 MW, according to DGGE. The tur- try and, among other units, has contracted with the
bines range from 0.6 MW to 3 MW. There is a wide Portuguese government the installation of concrete
distribution in the Portuguese market among the tower and blade factories, these working both for
different large manufacturers in this sector. Figure the domestic and the foreign wind markets.
6 shows this distribution and the share of the main
developers of wind farms in Portugal, in 2006. 3.3 Economic details
As a result of the 2005 public call for wind In Portugal, due to terrain orography, togeth-
capacity, where indigenous industrial manufactur- er with the fact that sites with suitable wind resource
ing capacity was highly valued by the Portuguese are mostly already taken, turbines with high nomi-
government, some foreign industries showed strong nal powers – multi-megawatt – are being installed.
interest to establish production facilities in Portu- This way the total wind farm installation costs, are

Figure 4 Trend of the wind power capacity installation towards the 2010
national targets.

IEA Wind Energy 199


National Activities

Figure 5 Spatial distribution of the wind capacity in Portugal.

included in the interval 900 to 1100 € /kW, and an- teristic of the Portuguese territory.
nual maintenance between 17 and 19 € /MW/year.
Figure 7 represents the tariffs evolution in the 4.0 National Incentive Programs
period 1998–2006.
Concerning renewable energies tariffs, no In the last few years, the power capacity in-
new legislation was published. The last one was es- stalled in Portugal has experienced a steady growth,
tablished in Dec. Law 33 – A/05. This new legisla- especially since 2002. This growth was the result of
tion will only be applied to projects to be installed in the establishment of several supporting governmen-
the sequence of the 2005 call for wind capacity. The tal policies published in 2001 to promote national
increase in the tariffs seen in the last years is mainly renewable energy production. To reinforce those
due to the low wind resource that has been charac- policies, in 2005 the DL 33-A was also published.

200 2006 Annual Report


Portugal

An official call for wind park grid connection was cable legislation during 2006. This Decree of Law
opened by DGGE in the same year, and its first established the mechanisms needed to accelerate
phase was concluded in 2006, with the reserve of administrative and technical procedures associated
1,000 MW of transmission grid capacity. with the installation of small units.
There was no new legislation published con-
cerning wind energy in 2006, still the DL33-A pre- 5.0 R D&D Activities
vailed. The changes introduced by this decree of law
had as its most relevant measure the reduction of ap- The R D&D activities in Portugal, related to
plicable tariffs, resulting in practical terms, on the renewable energies in general and wind energy in
reduction of national economically sustainable wind particular are mainly developed by various active re-
power capacity. search groups, located in for the most part in Lisbon
The non-actualization of the electricity tar- and Porto. The exception is the Program DEMTEC
iff with inflation is still the most relevant factor for within Programa de Incentivos à Modernização
wind energy developers. It severely limits this sec- da Economia (PRIME), which in the 2006 call
tor’s revenues for future projects as well as its de- had a specific line of 5 million € for wind energy
ployment rate, since new investments in wind power related projects. Otherwise there are no specific gov-
will have less favorable economic indicators than the ernmental programs to support the Wind Energy
past projects. sector.
Also, in the area of micro-generation mainly The R&D groups are mainly included in aca-
in what concerns interconnection to the low volt- demic or research institutes, and have their own gov-
age grid and small distributed sources of electrical ernmental financing programs and “lines” depend-
energy (up to 150 kW), no changes were verified, ing on the international and European Commission
by the Dec.-Law n° 68/2002 which was the appli- projects they are involved with. Moreover, the wind

(a) Wind turbines manufacturers.

(b) Wind park developer group.

Figure 6 Market share of installed capacity.

IEA Wind Energy 201


National Activities

Figure 7 Evolution in tariffs for wind energy based production in the period
1998–2006.

energy developers are slowly beginning to collabo- ing of the University of Porto (FEUP) and the Me-
rate in academic projects mainly in those concerning chanical Engineering and Industrial Management
doctoral and post-doctoral projects, contributing, Institute (INEGI) and are part of the research net-
although still in a very small part, to the develop- work established by the Portuguese Foundation for
ment of research and technology in wind energy in Science and Technology (FCT), namely within the
Portugal. associate laboratory INESC Porto (Computers and
Among R D&D institutes, one of the most Systems Engineering Institute of Porto) and the Re-
relevant regarding the work already developed in search Centre for Wind Energy and Atmospheric
this context is the National Institute for Engineer- Flows (RCWEAF).
ing, Technology and Innovation I. P. (INETI). IN- INETI is developing a small, high-perfor-
ETI is a part of the Ministry of Economy and In- mance and low-cost turbine for urban use – TUR-
novation, and its activities and R D&D projects in Ban. This is a national project financed by DEMTEC
the wind energy field are partially financed by the (70/0201), to be nationally conceived and construct-
national government. ed using Portuguese technology. The project will be
The R D&D needs and trends for wind energy completed and operational by mid-2008.
in Portugal were identified as the following issues:
• Wind resource assessment in complex ter- 5.2 Collaborative research
rain and offshore; In 2005, INETI participated in the identifica-
• Wind power production monitoring by tion of sites for offshore wind park installations in
economic dispatch and remote operation by the Atlantic coast based on the construction of the
clusters of wind parks (DSO – distributed sys- Portuguese Wind Atlas. This work has demonstrat-
tem operator); ed that there are several coastal areas with high wind
• Wind/hydro production correlation and potential. As a result of this study, a measurement
use of pumping facilities for regulation and campaign is underway.
storage of excess wind power production;
• Wind power applications in urban and con- 6.0 The Next Term
structed environments;
• Development of low-cost small wind tur- In what concerns the Wind Potential Portu-
bines; guese Atlas, its methodology is being applied to oth-
• New materials and industrial production er projects, and will be developed for other countries
techniques for wind turbines’ cost reduction. such as Croatia areas in several African countries.
This methodology together with the improvement
5.1 National RD&D efforts of the geographic information systems knowledge,
In the north of Portugal, the main institutes will contribute to the construction of wind potential
dedicated to R D&D are the Faculty of Engineer- atlases for these countries.

202 2006 Annual Report


Portugal

The first phase of the call for wind park grid References:
connection was concluded in the mid-2006. The
second phase of this call is still underway and will be (1) According to REN – Rede Eléctrica
finished in the summer of 2007, and then the third Nacional
phase will begin. (2) According to General Directorate for Geol-
Moreover, during 2007, the TURBan proj- ogy and Energy (DGGE).
ect will continue its development and will be in the
turbine dimensioning and construction phase. This Authors: Ana Estanqueiro and Teresa Simoes, De-
project, although it is not yet finished is already caus- partment of Renewable Energies, INETI – Instituto
ing an impact among the sectors investors. Nacional de Engenharia, Tecnologia e Inovação.

IEA Wind Energy 203


National Activities

204 2006 Annual Report


Spain
25

1.0 Introduction to seasonal effects). Installed electrical power had


a net growth of 4,213 MW, which assumes an in-
The installed wind capacity in Spain on 1 Jan- crease in the capacity of the system of 5.7% from
uary 2007 was 11,615 MW, according to data from 2005 to 2006. This increase comes exclusively from
the wind-power observatory of the Spanish Wind combined-cycle power plants with natural gas and
Energy Association (AEE) and the Association of from wind energy. Figure 1 shows the generation
Producers of Renewable Energies (APPA) (1). Dur- of electricity in Spain during 2006. Electricity pro-
ing 2006, an additional 1,587 MW were put into duced by wind farms met almost 9% of the total
operation, which represents an annual growth of electrical demand in Spain.
15.8%. This growth rate is similar to the growth rate It is important to note the increase in exports
in 2005. The Spanish wind sector has maintained of wind generators during 2006. Spanish-made
annual growth rates above 1,500 MW during the wind turbines totaling more than 1,200 MW of
past five years making it an important and consoli- generating capacity were installed in wind farms in
dated industrial activity. Australia, China, France, United States, and other
The figures show very clearly the solid contri- countries.
bution of wind energy in Spain. Growth in 2006 was
lower than expected and slightly inferior to the rates 2.0 Progress toward national objectives
described in the Plan of Renewable Energies (PER
2005-2010) (2), which expects to reach 20,000 MW The current objectives for 2010 for the pro-
connected to network by 2010. Possible reasons to motion of renewable energy sources are gathered in
explain this lower growth rate include problems Spain’s PER 2005-2010. This plan is a revision of the
with the connection of wind farms to the electrical previous one which was revised in 2002. The aim
grid caused by delays in the construction of electri- of this revision is to maintain the commitment to
cal infrastructures such as transport lines and high use renewable sources to meet at least 12% of total
voltage substations. energy use by 2010, while incorporating other in-
Spain has not yet experienced the lack of dicative targets (29.4% of electricity to be generated
major components (gearboxes, electric generators, from renewable sources and 5.75% of transport fuel
blades, and so on) that the wind sector suffers on needs to be met by biofuels).
a global level. This is because many companies in The plan was revised for several reasons. First,
Spain are both wind turbine manufacturers and primary energy consumption and energy intensity
wind farm developers. have grown more quickly than was expected. This
In 2006, annual electricity demand in Spain fact alone makes it necessary to increase the growth
was 3.6% more than in 2005 (after corrections due in renewable energy sources to achieve the 12% tar-

Table 1 Key Statistics 2006: Spain


Total installed wind generation 11,615 MW
New wind generation installed 1,567 MW
Total electrical output from wind 23.372 TWh
Wind generation as % of national electric demand 9%
Target: 20,155 MW by 2010

IEA Wind Energy 205


National Activities

Figure 1 Wind energy and other generation sources for 2006.

get for 2010. Following the approval of the previous a higher increase in installations, fewer installations
plan, two further indicative targets have been set. were completed for a total for 2006 of 1,587 MW.
The new plan also needs to take these into account. In some cases, grid connection problems delayed in-
Wind energy is the area that has developed stallation of the wind plants, which usually occurs in
most rapidly and is supported by a range of busi- the later months of the year, to the first term of 2007.
ness initiatives in the market. In line with the gen- Completion of the new electrical infrastructure and
eral targets of the plan, the new objective for the the new procedure for connecting wind turbines
wind energy sector is an increase in power output to the grid will allow Spain to regain, during the
of 12,000 MW between 2005 and 2010. This im- coming years, a level of growth that will fulfill the
plies ending the decade with a total installed poten- PER targets.
tial of 20,155 MW. In Figure 2, the installed power Alongside the plans of the central administra-
in Spain is shown, along with the objectives related tion, the various autonomous regions have elaborat-
in the PER. ed their own objectives to achieve by 2010 (Table 2).
The increase of installed wind power in Spain These objectives of the autonomous regions almost
during 2006 was lower than expected and slightly double the national target.
below the increase called for by the PER. During the Most of the autonomous regions (which have
first half of 2006, 913 MW were installed; during the responsibility for regulation of wind installa-
the second half of the year, which usually registers tions) have planned a total installed capacity of about

Figure 2 Wind energy in Spain: Wind farms in operation and PER objectives
for the year 2010.

206 2006 Annual Report


Spain

Table 2 National and autonomous-region targets for wind energy at 2010


Autonomous Region Year Regional Target (MW) National Target (MW)
Andalucía 2010 4,000 2,200
Aragón 2012 4,000 2,400
Asturias 2010 900 450
Baleares 2015 75 50
Canarias 2011 893 630
Cantabria 2010 300 300
Castilla y León 2010 6,700 2,700
Castilla – La Mancha 2011 4,450 2,600
Cataluña 2010 3,000 1,000
Extremadura 2010 225 225
Galicia 2010 6,300 3,400
Madrid 2010 50 50
Murcia 2012 850 400
Navarra 2011 1,530 1,400
La Rioja 2011 660 500
Comunidad Valenciana 2010 2,359 1,600
País Vasco 2019 624 250
TOTAL 36,916 MW 20,155 MW

39,000 MW by 2010 through 2012. Taking this sit- The maximum hourly production by wind
uation into account, there is an open discussion to energy of 8,140 MW took place on 8 December
define new targets and describe adequate infrastruc- 2006. A full 31% total electricity production at that
tures to achieve them. particular moment was supplied by wind energy.
The total amount of electricity generated by The maximum peak demand during the year took
wind energy was 23,372 GWh, about 9% of the total place on 30 January 2006 when the total power pro-
electricity demand in 2006, according to the data duced was 42,100 MW. At this time, wind energy
from Red Electrica de España, the Spanish transmis- supplied about 8% of the total.
sion system operator, (3). These values make wind Wind power helped decrease fossil fuel im-
power the fifth largest electricity generation tech- ports, achieving savings of more than 730 million €
nology in Spain after coal, nuclear energy, natural in 2006, mainly due to the reduction in purchases
gas, and hydropower. The monthly electricity gener- of natural gas and coal. In addition, the Spanish
ated by wind is shown in Figure 3. economy saved around 18 million tonnes of CO 2
The year 2006 was less windy than previ- and did not have to purchase emission permits that
ous years, and the average equivalent hours of full would otherwise have been required in 2006. This
production were fewer than 2,000 hours for the represents nearly 360 million € of savings, assuming
total wind farms in Spain. Together with the lower a price of 20 € /tonne of CO 2 emissions.
price of wind-generated electricity during 2006, Wind power is presently the renewable en-
this implies an important reduction of the benefits ergy that makes the greatest contribution to the en-
of the sector during the year. Nevertheless, the sec- ergy supply in the country (around 76% of the total
tor remains very active and in continuous growth. renewables contribution comes from wind). Wind-
On some occasions, wind-generated electricity sector analysts are optimistic that Spanish wind en-
in Spain has covered more than 25% of total electric- ergy targets will be met.
ity demand.

IEA Wind Energy 207


National Activities

Figure 3 Electricity generated by wind, monthly distribution.

3.0 Benefits to national economy growth occurred in Valencia in the Mediterranean


region, where a new 280-MW wind farm means
3.1 Market characteristics an increase in capacity of 1,300% from the previous
Wind power development and promotion is year. Growth rates for Andalucia and Cataluña were
a well-established activity in Spain. The fact that 57% and 36%, respectively.
11,600 MW are in operation shows the experience Figure 5 shows the market share of wind farm
and maturity of the sector. developers at the end of 2006.
So far, wind farm promotion is carried out by Regarding ownership of installed wind power
very big entities: utilities, finance companies, civil in Spain, the main utility (Iberdrola) maintains the
engineering firms, and industrial developers. There leading position with a total value of 30.7% of the
is a strong tendency to consolidate activities among total wind generating capacity. Acciona has the sec-
the big promoters of wind farms in Spain; big com- ond position with 17.5% of the wind farms, followed
panies accumulate the main wind farms, and big by Neo Energía with 8.4%, Endesa (another big util-
developers purchase the smaller ones. This process ity) with 7.5%, Eufer with 3.4%, Gas Natural with
was particularly important for 2006, as remarkable 3.2%, Enerfin with 2.9%, and others. As mentioned
financial operations have taken place in the wind previously, the tendency toward mergers of Spanish
business. wind farms is increasing. It is important to note the
An important new development has been financial operations performed by Neo Energía in
the increasing interest in the foreign market. Dur- 2006; it has taken ownership of the wind farms of
ing 2006, about 1,200 MW of wind turbines “made the smallest promoters DESA and CEASA.
in Spain” have been installed in wind farms in the The international nature of the sector can be
United States, China, Australia, and France, among appreciated in Spain; big foreign investment groups
other countries. Following this tendency, Spanish have acquired Spanish wind farms. Their interest is
wind developers have begun to promote strategies yet more proof of the success of the development of
for establishing even more wind installations in for- the wind energy.
eign countries.
The distribution of wind installations in Spain 3.2 Industrial development
is shown in Figure 4. and operational experience
Galicia, in northwest Spain, has the most in- Regarding manufacturers, Gamesa and its
stalled wind power, with a total of 2,600 MW, in- subsidiary company Made (60.4%) remains the lead-
cluding an increase of 233 MW in 2006. Castilla er of the sector in Spain and has a dominant position
La Mancha is second with 2,310 MW (including in the total market. Vestas (which has mainly models
an increase of 293 MW in 2006). Castilla León in from the old Neg-Micon company) is also present
central Spain has an important amount of wind en- in the Spanish market, with a share of 13% of the
ergy—2,120 MW, including an additional 309 MW total capacity. The Spanish manufacturer Ecotecnia
during 2006. In relative terms, the most spectacular maintains represents 8.3% of the total installations.

208 2006 Annual Report


Spain

Figure 4 Regional distribution of wind farms.

Figure 5 Regional distribution of wind farms.

General Electric (6.6%), Acciona (4.4%), and Navan- activity in the aeronautical field. Mtorres has a 1.7-
tia-Siemens (4.0%) are also present in the market MW upwind, direct-drive, multi-pole generator,
(Figure 6). that is pitch regulated.
It is important to note the merger of two new New wind turbines installed in Spain are be-
manufacturers: Acciona Wind Power, which is part coming larger. The average size during 2006 was
of the Acciona group, one of the major developers of about 1.4 MW; during 2005, it was around 1.3 MW;
wind farms in Spain, and Mtorres, a company with and during 2004, it was a little higher than 1 MW.

IEA Wind Energy 209


National Activities

Figure 6 Wind turbine manufacturers represented in Spain.

In Figure 7, the increase in wind turbine size over 4.0 National incentive program
the years is shown.
The promotion of renewable energies has
3.3 Economic details been a stable national policy for several years. All
A study by AEE and APPA shows the tenden- political parties have similar policies regarding sup-
cy of wind turbines to increase in cost. The increase port of renewable energies.
in size of wind turbines (in fact, the new installa- The main tools within this policy at a national
tions use machines over 2 MW of rated power), the level are:
increase in the price of raw materials, the lack of • A payment and support mechanism en-
major components, and the excess in demand have shrined by the parliament through Electric
combined to increase the cost of wind energy. The Act 54 /1997: Producers of renewable ener-
average cost during 2006 was about 1,110 € /kW. gy are entitled to connect their facilities and
The forecast of operation costs for the new wind transfer the power to the system through the
farms and the estimates of production are also part distribution or transmission grid. Producers of
of the study. Study results are shown in Table 3. renewable energy are entitled to receive remu-
neration in return.

Figure 7 Average size of wind turbines installed in Spain since 1995.

210 2006 Annual Report


Spain

Figure 8 Carballeira Wind Farm in Spain.

Table 3 Evolution of installation costs and electricity production of wind farms in Spain
Parameters Unit 2004 2005 2006 2007 2008 2009 2010

Average Size of Wind Plant MW 35 35 35 35 35 35 35


Equivalent hours hours 2241 2297 2271 2245 2200 2150 2100
Yearly variation % 2.50% -1.13% -1.14% -2.00% -2.27% -2.33%
Total Cost X1000€/MW 1005 1057 1110 1175.10 1233.41 1290.50 1350.55
Yearly variation % 5.17% 5.01% 5.86% 4.96% 4.63% 4.65%
Exploitation and manage, costs €/MWh 15.72 16.58 18.20 18.61 19.10 19.64 20.19
Yearly variation % 5.47% 9.77% 2.25% 2.63% 2.83% 2.80%
Source: AEE, APPA. The position of Spanish wind sector in the modification of the RD436/2004

• The Renewable Energy Plan, including The law allows electricity generated by wind farms
mid-term objectives for each technology (PER access to the electricity market. Remuneration to
2005–2010). wind farms consists of the market price plus a bonus
Royal Decree 436/2004, which regulates the established as a percentage of the named “average
price of electricity from renewable sources in Spain, reference tariff” (an indicator related to the total cost
has been a very useful instrument for the develop- of the overall electrical system).
ment and consolidation of wind energy in Spain.

IEA Wind Energy 211


National Activities

draft rules define a bonus of 84.7 € /MWh over the


market price and specify that the maximum price to
be paid will never exceed 164 € /MWh. No mini-
mum level is defined. Although the wind energy
sector has had an overall positive reaction to this
regulation, it has expressed the opinion that the pay-
ments are not enough to start the offshore market in
Spain. Actually, the discussion between the authori-
ties and the industrial sector is still going on. The
main criteria used for the development and admin-
istration of the rules is to guarantee sufficient remu-
neration to permit fulfillment of the PER targets in
the Renewable Energy Plan (PER 2005-2010).

5.0 R, D&D activities

The Renewable Energy Plan (PER 2005–


2010) makes an exhaustive analysis of the techno-
logical innovation required to achieve its objectives.
In the case of wind energy, the priority for Spanish
manufacturers is to make efforts leading toward the
Figure 9 Faladiora Wind Farm in Spain. following goals:
• Development of advanced systems to con-
The increasing price of electricity in Spain trol the quality of the power fed into the grid,
has caused the remuneration to wind farm opera- in particular optimizing how wind farms be-
tors directed by this procedure to reach high values have regarding perturbations on the grid
in 2005 and 2006. For instance, the average price • Development of wind turbines with unit
received by wind farm operators that used the mar- power outputs of more than 2 MW and the in-
ket option in 2006 was 91 € /MWh. The benefits of corporation of new materials
wind investment have been remarkably high. • Adaptation of high-capacity wind turbines
In mid-2006, Spanish authorities began to to the more demanding technical require-
write new draft rules concerning renewable energy ments of offshore applications
sources (wind energy in particular) in order to limit • Implementation of demonstration offshore
the price received by wind farm operators. The gen- wind farms.
eral rules of the draft establish a maximum value to
be paid to the wind farm owners when the electric- The National Energy Program for Scientific
ity price is excessively high, and a minimum value Research, Development and Technological Innova-
as a guaranteed compensation when the price is low. tion (2004 to 2007) centralized Spanish R&D proj-
The law’s intent is to guarantee sufficient profit for ects in the energy sector. The target areas defined
wind energy investment without a significant in- in the plan for wind energy projects included such
crease in the total cost of the electrical system. topics as these:
An example of the prices obtained according • Development of infrastructure and tools for
to the new draft is described in Table 4. For instance, design of new wind turbines
in the case of a wind farm that produces more than • Improvement of efficiency, availability, reli-
5 MW during the first five years of its operation, the ability, maintenance, and security of operation
maximum price to be paid to the developer would • Integration into the electric system
be 84.7 € /MWh, and the minimum value would be • Design of wind turbines for special sites
67.7 € /MWh. Table 4 shows a complete description • Development of new technologies and sys-
of the payments. tems for the environmental integration of
The new draft rules contain the first mention wind energy systems.
in Spain of wind energy in offshore wind farms. The

212 2006 Annual Report


Spain

Table 4 New draft for the payment of the electricity generated by wind

< 5 MW > 5 MW
2007 2007 2008
€/MWh €/MWh €/MWh
Tariff First 15 years 73.10 First 5 years 73.10 74
Rest of the life 61.20 Year 6 – year 15 66.20 67
Rest of the life 61.20 62
Bonus First 15 years 17.40 First 5 years 17.40 17
Rest of the life 5.50 Year 6 – year 15 10.50 10
Rest of the life 5.50 5
Maximum level First 15 years 89.10 First 5 years 84.70 86
Rest of the life 77.20 Year 6 – year 15 77.80 79
Rest of the life 72.80 74
Minimum level First 15 years 70.20 First 5 years 67.70 69
Rest of the life 58.30 Year 6 – year 15 60.80 62
Rest of the life 55.80 56
Absolute lower level 52.80 50.30 51
Maximum value 71.70 67.30 68

Inside of a broadly defined program to im- ergy Association estimates that 90 million € will be
prove the technological capabilities of Spain, new spent by the wind sector (including both public and
strategic lines have been defined, and one of them is private research groups) in R&D activities.
the Strategic National Consortiums for Technologi- During the last call for proposals at the end of
cal Research. The main objective is to increase co- 2006, a new consortium called for the development
operation between the public sector and the private of technological research in the field of the offshore
sector. To do that, a budget for 50% support is speci- application of the wind energy. The proposal, called
fied to start extensive industrial research lines. Par- Eolia, was presented by the company Acciona En-
ticipating private and public research groups must ergía. Its main focus is the study of wind technol-
sign contractual agreements to maintain at least four ogy for deep-water application. A decision about the
years of co-operation. project will be made in 2007.
For wind energy, an initiative called Windlid- In the field of small wind turbines, a national
er 2015 has been started. According to this proposal, strategic project was approved. The project, called
the Spanish manufacturers Gamesa and Ecotecnia Minieolica, includes all the companies involved in
are undertaking an industrial research project aimed the sector—small wind turbine manufacturers, tech-
at keeping Spain at the forefront of wind technology. nological centers, and so forth. The main aims of the
The expected budget is around 40 million € . Re- proposal are:
search objectives include a better understanding of • Creation of specific R&D programs for
large wind turbine design and shortening the time small wind turbines
needed to bring new products to the market. • Implementation of a certification system
As part of this research, Windlider 2015 aims useful for small wind turbines
to produce a comprehensive simulation of a large • Establishment of demonstration projects
wind turbine. This model will be validated and fine- • Defi nition of support mechanisms.
tuned by testing complete wind turbine and criti-
cal components (generators, gearboxes, converters, The created network called Reoltec (Span-
housings, yaw systems, and so on) with a power rat- ish Technological Wind Sector Network) contin-
ing of 5 MW. This will allow extrapolating proven ues the activities started in 2005. The initiative is
performance data to outputs in excess of 10 MW. promoted by AEE, and its main objective is to main-
Universities and research and technological centers tain the positioning of the national industry through
are involved in the initiative. The Spanish Wind En-

IEA Wind Energy 213


National Activities

Figure 10 Installation of wind turbine blade.

the reinforcement of technological knowledge regional plans is more than 39,000 MW (nearly
and the selective diffusion of results and experi- double the national objective) for the years 2010 to
ences. A work plan that covers short-term (2005 2012. The national legislative framework, regional
to 2007) and medium-term (2007 to 2010) strate- regulations, and the maturity and competitiveness of
gies has been issued. the technology used have made it possible to achieve
The main research challenges for wind en- these targets.
ergy in Spain are to reduce the cost of wind-gen- Two important steps must be taken to guaran-
erated electricity, increase the availability of wind tee the fulfillment of wind energy objectives. First,
turbines, and, in general, increase wind turbine size a study of the alternatives is called for in order to
and redesign wind turbines for special conditions increase wind-power penetration in the electricity
(for example, offshore, extreme climate, and weak system in a way that is compatible with the system’s
electrical networks). security. Second, it is essential that the current leg-
islative framework be retained without substantial
6.0 Next term changes between now and 2010.
Progress on offshore projects has been slow.
The Spanish wind power industry is a solid, During 2006, there were two positive advances—
established sector. Over the past four years, average definition by the authorities of the content of the
installed generating capacity has grown by about environmental impact study for offshore application
1,500 MW/yr. The objective of Spain’s PER for and a special mention of offshore wind farms in the
wind power is to reach 20,155 MW of total capac- new draft rules for the electricity tariffs.
ity by the end of 2010. The total objective for the

214 2006 Annual Report


Spain

Figure 11 Transport of wind turbine nacelle.

Figure 12 Factory for wind turbine blades. Gamesa.

IEA Wind Energy 215


National Activities

Figure 13 Test site for small wind turbines on a snowy day.

During 2006, only a few discrepancies oc- (2) Spanish Renewable Energy Plan 2005–2010,
curred in connection with the stated objectives Madrid, August 2005. Instituto para la Diversifi-
of the Spanish PER. Nevertheless, it is necessary cación y Ahorro de la Energía (IDAE).
to be alert to guarantee fulfillment of the plan’s (3) Red Eléctrica de España (Spanish Electricity
objectives. System). Spanish Transmission System Operator ad-
vance report for the year 2006, www.ree.es.
7.0 References
Author: Enrique Soria Lascorz, Renewable En-
(1) Spanish Wind Energy Association (Asociaci ergy Division, CIEMAT, Ministerio de Educación
ón Empresarial Eólica), www.aeeolica.org; Spanish y Ciencia, Spain.
Association of Renewable Energy Sources Produc-
ers (Asociación de Productores de Energías Renov-
ables), www.appa.es.

216 2006 Annual Report


Sweden
26

1.0 Introduction Swedish Energy Agency has distributed the national


planning target of 10 TWh (4 TWh onshore and
The growth of wind power is still rather mod- within territorial waters and 6 TWh offshore in
est in Sweden, with an increase of only 12% of total the Swedish economic zone) by 2015 into regional
installed power in 2006. The situation for the future, targets and will follow up on them annually. Re-
however, looks more promising with the electricity gional volume targets take wind energy resources
certificate system prolonged until 2030. and regional electricity consumption into account.
Sweden had a shift in governments as a result The purpose of the target is to elucidate wind power
of the September 2006 election, when the major- installations on regional and local planning lev-
ity in the parliament shifted. The Social Democrats els. Moreover, the target will reduce planning and
had been in power as a minority government with permission obstacles to create opportunities for 10
parliamentary support from the Green Party and TWh of wind power by 2015. The municipalities
the Left Party. After 12 years in power, they handed are working toward the goal, and it seems likely that
over power to a conservative/center coalition of four the planning for the 4 TWh onshore and within ter-
parties that now has parliamentary majority. The ritorial waters will be met.
political climate for wind power, however, seems For production, there is no goal for wind
to be rather unaffected by the government shift. energy alone. The production goal in the electric-
The new government also has a strong commitment ity certificate system applies to new renewable en-
to work for an increase in wind-power production ergy in general as described in Section 4 below. The
in Sweden. The expression of will in the March electricity mix in Sweden is dominated by nuclear
2006 Wind Power Bill is endorsed by the new power and hydropower. Hydropower production
government. varies from year to year due to the amount of yearly
rainfall. Figure 1 shows the mix during 2005, when
2.0 Progress toward national objectives production was 155 TWh. The total installed wind-
power capacity in Sweden increased by 62 MW, a
In 2002, the parliament adopted a planning moderate increase. Figure 2 shows the installed ca-
target for wind power output of 10 TWh/year pacity and production for 1991 through 2006.
before 2015. In principle, this means that wind en- For offshore wind power, the subsidy system
ergy should be considered in the spatial planning (electrical certificates and the environmental bonus
process such that it will be possible to actually build until the end of 2009) is not sufficient for deploy-
wind power to produce 10 TWh/year by 2015. The ments to take off. There are no goals for offshore

Table 1 Key Statistics 2006: Sweden


Total installed wind generation 571 MW
New wind generation installed 62 MW
Total electrical output from wind 0.986 TWh
Wind generation as % of national electric demand .7%
Planning Target 10 TWh
(unchanged from 2005)
Capacity likely to be built by 2016 7 TWh

IEA Wind Energy 217


National Activities

Figure 1 Electricity production mix in Sweden for 2005

wind as such, but the government has had a 350- by the municipality. Projects bigger than 25 MW
MSEK special funding program for market intro- are handled by the county administration (onshore
duction for large-scale plants offshore and in arctic permitting) or the Environmental Courts (offshore
areas with the intention to speed up the expansion permitting). The Swedish Energy Agency has been
of wind power in these large areas of Sweden. As given the assignment to propose, during 2007, a new
described in the section on market characteristics, planning target for wind power for the year 2020.
it seems as if the support given by the market intro-
duction program is not sufficient in all cases. 3.0 Benefits to national economy
The government has identified that progress
toward a cost-efficient expansion of wind electricity 3.1 Market characteristics
is hindered by a slow permitting process for projects. Vattenfall and E.ON are the leading utilities
The government therefore presented a Wind Power for offshore wind energy development in Sweden.
Bill in March 2006. The bill reduced the real estate Smaller, yet also active, utilities include Falkenberg
tax for wind-power plants from 0.5% to 0.2% and Energi, Göteborg Energi, and Skellefteå Kraft. The
made several suggestions that would facilitate the utilities develop projects on their own but also buy
progress of wind energy expansion. The suggestions projects developed by independent developers at
included funding an additional 350-MSEK grant various stages of development. Several developers,
for the market introduction program, setting up a among them WPD Scandinavia, Vindkompaniet,
knowledge center for wind energy, providing finan- and RES Scandinavia, have as their strategy selling
cial support to municipalities for planning for wind either portions of the project or the whole project
power, defining new planning goals, and suggesting to other investors. New investors are also entering
changes in the permitting process. the wind-power market in Sweden. One is Stena Re-
The permitting process was changed in De- newable Energy AB, a subsidiary of the Stena ship-
cember 2006. Prior to the change, all projects above ping group. Other examples are the real estate com-
1 MW had to go through application procedures in pany Lennart Wallenstam Byggnads AB and Vindin,
connection with both the Environmental Act and formed and owned by a group of very large electric-
the Planning and Building Act, with the permits de- ity-intensive industries in Sweden (forestry, steel,
cided by the county administration. The threshold chemical, and mining industries). Vindin intends to
now has been increased to 25 MW. For projects be- build projects to produce 1 TWh/year, largely using
low 25 MW, all permitting matters are now handled land owned by companies in the group.

218 2006 Annual Report


Sweden

Figure 2 Installed wind-power capacity (MW) and production (GWh)

3.2 Industrial development and it also markets the WinWind turbines in Sweden.
operational experience During 2006, WinWind erected nine 1-MW tur-
While few manufacturers of small wind tur- bines in Sweden.
bines operate in Sweden, the large international Three offshore projects have (see Figure 3)
manufacturers Vestas, Enercon, and Nordex have been partly funded with support from the market
sales offices. The Swedish Deltawind AB (formerly introduction program as described in Section 4.
Nordic Windpower) has plans to become a player One of these projects, Lillgrund, is already under
in Sweden, China, and North America. A replace- construction and is expected to be connected in the
ment of the first Nordic Windpower 1-MW proto- autumn of 2007.
type was made in 2006. No other deliveries have yet The Lillgrund 110-MW offshore project
been made. consists of 48 Siemens 2.3-MW turbines on grav-
On the component side (supply chain), the ity foundations. The turbines will have a hub height
value of manufactured goods is great. The Swedish of 68.5 meters and a diameter of 93 meters. Con-
wind-power market consists of subcontractors such struction of the foundations started in 2006, and the
as SKF (roller bearing and monitoring system), ABB wind farm is planned to be in operation by the end
(electrical components and cable), Vestas Castings of 2007. (Figures 4 and 5)
(formerly Guldsmedshytte Bruk AB), and EWP The other offshore wind farm planned to be
Windtower Production. Other companies worth built with support from the market introduction
mentioning are Oiltech (hydraulic systems and cool- program is Utgrunden II. All necessary permits
ers), Nexans (cables), and ESAB (welding equip- are in place, and construction was planned to start
ment). The subcontractors are multinational com- in 2007. Early in 2007, however, the developer
panies as well as smaller entities that find that their E.ON decided to postpone the building of the wind
know-how applies to the wind-power market. farm within the intended time plan. After receiving
One company, Dynawind (a company in the all construction tenders, E.ON concluded that the
Morphic Group), has started manufacturing towers cost for building the park was too high considering
for the Finnish turbine manufacturer WinWind;

IEA Wind Energy 219


National Activities

Figure 3 Offshore projects with support from the market introduction program

their calculated revenue for the electricity and the above 30 €/MWh. The average price for the year
certificates. was 48 €/MWh. The price for electricity certificates
as an average over the year was around 21 €/MWh
3.3 Economic details (191 SEK/MWh). During the high price period for
The market electricity price on NordPool was electricity, the price for electricity certificates went
much higher than usual during 2006. The reason down.
was a dry summer, which led to more or less empty Before the electricity certificate system was
hydro storage. Further, the closing of three (out of introduced, Sweden had a subsidy for wind power
ten) nuclear power plants during the autumn led to called the environmental bonus. This system is be-
prices of 67 €/MWh in August. However, due to a ing phased out and will be removed after 2009. Dur-
warm and rainy period from September, the price ing 2006, the value of the environmental bonus was
has come down to a more normal level of a little 7 €/MWh onshore and 16 €/MWh offshore.

Figure 4 Cable-laying work at Lillgrund


(Photo credit: Hans Blomberg, Vattenfall AB)

220 2006 Annual Report


Sweden

Figure 5 Lifting of foundation at Lillgrund


(Photo credit: Hans Blomberg, Vattenfall AB)

Figure 6 shows an average value of the to- There are no specific quotas for wind power. Elec-
tal revenue for wind-generated electricity onshore tricity producers receive a certificate from the state
in Sweden during 2006. (The price paid to a wind for each megawatt-hour of renewable electricity that
turbine owner can be slightly reduced to cover they produce. This certificate can be sold to provide
the balancing cost on electricity price for the grid additional revenue above the sale of the electricity,
company.) improving the economics of electricity production
from renewable energy sources and encouraging the
4.0 National incentive programs construction of new plants for the purpose.
The demand for certificates is created by a
There are three main incentive programs for requirement under the Act that all electricity suppli-
the promotion of wind power: ers and certain electricity users purchase certificates
(1) Electricity certificates, equivalent to a certain proportion of their electricity
(2) Production support, the so-called environ- sales or use, known as their quota obligation. The
mental bonus, and size of this obligation is increased from year to year,
(3) Support for technical development in co- increasing the demand for renewable electricity. The
ordination with market introduction for large-scale price of certificates is determined by supply and de-
plants offshore and in arctic areas. mand and can vary from one transaction to another.
Other soft incentives are (4) the work done in During 2006, the average price was 20 €/MWh.
assessing areas of national interest for wind power. Until last year, the system had only set quotas
until 2010. Uncertainties concerning subsidy lev-
4.1 Electricity certificates els after 2010, however, led to a slow investment in
The national production target for renew- new production in, for example, wind power. The
able energy sources as a result of the EU Directive market and the government recognized this prob-
2001/77 implies an increase in the annual use of lem, and in 2006 the parliament decided to prolong
renewables of 10 TWh from 2002 to 2010. The the system. Originally the quotas were set only until
tool to meet the target is a quota-based system with 2010 with the goal of 10 TWh new, renewable elec-
electricity certificates. The system came into force tricity compared to the 2002 level. Now quotas are
on 1 May 2003 and is intended to increase the pro- set until 2030. A new production unit can receive
duction of renewable electricity in the most cost- certificates only for a period of 15 years. Old units
efficient way. The annually increased level of the therefore leave the system after 15 years. Around
stipulated quotas (and the quota obligation fee) will 2012, there is a “notch” in the quotas because sev-
drive the deployment of renewables where wind eral older production units are to be phased out of
power will play a major role. The system replaces the system then. The quotas are set to generate 17
earlier public grants and subsidy systems. The prin- TWh of new, renewable electricity from the system
ciple is that there should be sellers and purchasers until 2016. After 2016, a small increase is estimated
of certificates and a market to bring them together. (Figure 7). The quota-based electricity production

IEA Wind Energy 221


National Activities

Figure 6 Breakdown of total revenue (76 €/MWh average) for a


wind-power plant owner in 2006

in 2006 was approximately 12.1 TWh—9.1 TWh additional 350 MSEK for the period 2008 through
bioenergy, 2 TWh hydropower, and 1 TWh wind 2012. During 2007, the Swedish Energy Agency
power. It is expected that in 2007, the major increase will prepare a call for applications for projects for
in production will come from wind. A recent study the new period. Projects funded to date are shown
by the Swedish Energy Agency estimates that the in Table 2.
wind-power production in 2015 will be around 7 Two other projects are also funded through
TWh. This estimate is, however, very sensitive to the program. One is the research program Vindval,
the market and cost for electricity from new wind, and the other is research toward the development of
new CHP bio-energy, and new hydro. an offshore project at the Swedish part of the Krieg-
ers Flak bank in the Baltic Sea.
4.2 Production support
The level of the environmental bonus is de- 4.4 Assessing areas of national interest
clining each year until 2009 and will be zero after Land and water areas shall be used for the
2008 for onshore and after 2009 for offshore wind purposes for which the areas are best suited in view
power. For 2007, the value is 4.2 €/MWh onshore of their nature and situation and of existing needs
and 15.2 €/MWh offshore. according to the environmental code. Priority will
be given to use that promotes good management
4.3 Support for technical development from the point of view of public interest. Different
In 2003, the Swedish Energy Agency launched areas of Sweden are in the environmental code des-
a program to support technical development in co- ignated areas of national interest for different kinds
ordination with market introduction, for large-scale of land use—fishery, mining, nature preservation,
plants offshore and plants in arctic areas. The aim outdoor recreation, and so on. The idea is to protect
is to stimulate the market, achieve cost reduction, specific areas such that the specific national interest
and gain knowledge about environmental effects not is jeopardized. An area can be of national inter-
from wind power offshore and in the arctic areas. est for several kinds of land use. In 2004, to protect
For the years 2003 through 2007, the budget is 350 the interest of wind energy, 49 geographical areas
MSEK (around 38 million €). The parliament has in 13 counties were identified as areas of national
recently voted in favor of a bill in which the market interest for electricity production from wind energy.
introduction is prolonged another five years with an During 2007, new areas will be assigned.

222 2006 Annual Report


Sweden

Figure 7 Quotas and production goal of the electricity certificate system

Table 2 Projects with support from the market


introduction program
Project Recipient Support Location Estimated production and estimated year of
company operation
Lillgrund Örestads 213 MSEK Offshore 330 GWh (end of 2007)
vindkraftpark (23 M€)
AB (owned by
Vattenfall)
Utgrunden II E.ON Vind 70 MSEK Offshore 285 GWh (planned 2008 but recently
Sverige AB (7.6 M€) postponed)
Uljabouoda Skellefteå Kraft 35 MSEK Onshore arctic 100 GWh (2008)
AB (3.8 M€)

5.0 R, D&D Activities with a total budget of 2 million € (18 million SEK).
Applied projects are funded 60% by Elforsk and
5.1 National R, D&D efforts 40% by the Swedish Energy Agency. The program
The former wind R&D program Vindforsk is user-oriented and will have stronger co-operation
was to end on 31 December 2004 but was prolonged between the utilities and the grid owners (includ-
during 2005. In January 2006 a new program, Vind- ing the Swedish TSO) than previous programs have
forsk II, started. This program runs from 2006 until had. Areas of research interests include grid integra-
the end of 2008 with a total budget of 4.9 M€ (45 tion, external conditions, standards, O&M, project
million SEK). Elforsk, the Swedish Electricity Utili- development, impacts on the environment, and pub-
ties’ R&D company, manages the program. Vind- lic acceptance. The two latter areas have their own
forsk II consists of two parts, one basic research and research program, Vindval, which covers such issues
the other applied research. Basic research projects more thoroughly. Within the environmental and
are funded 100% by the Swedish Energy Agency, public acceptance program, six research projects on

IEA Wind Energy 223


National Activities

birds, fish, bats, and artificial structures were initiat- To improve market competition and to help
ed during 2005. Vindval is a small part of a program the development of turbines that can lower the cost
called the Market Introduction and Technology De- of electricity, the Swedish Energy Agency is funding
velopment Program, which runs from 2003 to 2007 a demonstration project of a 3.5-MW turbine with
with a budget of 38 million € (350 million SEK). a new direct-driven generator, NewGen. The recipi-
The budget for Vindval is 3.8 million € . The Swed- ent of the financial support for the demonstration
ish Energy Agency is responsible for the program, project is Vattenfall AB. The turbine is expected to
which supports wind-power deployment offshore be in operation by mid-2009. The turbine is devel-
and in the arctic areas. During the new round of this oped by a consortium of the turbine manufacturer
program, Vindval is likely to be prolonged and new Scanwind and the engineering company VG Power.
money assigned. VG Power is developing the generator, which has
Apart from projects in these programs, other a configuration of permanent magnets and wire-
R&D projects are also funded. For example, during wound stator, with the bearing of the machine placed
2006, work mapping the wind climate in Sweden in the air gap. The layout is an outer pole machine
was completed. The wind mapping was carried out and the application is for wind power. The techni-
by Hans Bergström, Department of Earth Sciences cal solution was verified by a pilot generator of 144
and Meteorology at Uppsala University, using a kW (maximum 177 kW). The tests show that the
three-dimensional, higher-order, closure meso-scale concept meets the estimated performance. Develop-
modeling. Statistics of the geostrophic wind are used ment of the full-scale generator is supported by EU
for weighting model output together into the final funding. Consortium members in the EU project are
wind climate. The mapping is made on a 1-x-1-km VG Power, Scanwind, SKF, the technical consultant
horizontal resolution. The model results have been company Teknikgruppen, and the Finnish power
verified against measurements from various meteo- electronics manufacturer Verteco. The generator
rological-masts. The final report including verifica- will cut weight by approximately 70% compared
tion will be ready in spring 2007. Results from the with a conventional direct-driven generator, which
mapping are used in allocating areas of national is believed to cut generator cost by about half and
interest for wind energy, by municipalities in their make the drivetrain investment cost comparable to
planning processes, and by developers in finding lo- that for a conventional gearbox/high-speed genera-
cations for their projects. tor concept. The benefit of the direct driven genera-
Another area of interest is conflict with the tor will be a reduced number of components, better
military radar reconnaissance, which can stop a lot of reliability, and reduced O&M costs.
projects. Onshore, models of the interaction between
radar and wind turbines have been changed to con- 5.2 Collaborative research
sider terrain effects. This means that, onshore wind Research groups in Sweden participate in
energy projects have had fewer problems getting ap- all currently operating IEA Wind tasks except Task
proved. For offshore locations, however, the current 19. Sven-Erik Thor at Vattenfall AB serves as oper-
model used to determine radar interference is such ating agent for task 11, Base Technology Informa-
that the Defense Administration stops most projects. tion Exchange. The participation boosts work in
This is incompatible with an expansion of offshore the national programs—for example, by invaluable
wind in areas with otherwise suitable conditions. sharing of expensive data from experiments and
Too little is known concerning the real disturbance measurements.
by the wind turbines. To gain knowledge and to be
able to introduce a new model for the calculation of 6.0 Next Term
disturbance on radar by wind turbines, the Swedish
Energy Agency is funding a project with flight tests The growth in wind power in Sweden is ex-
over one of the existing offshore wind farms. In a pected to gain momentum in 2007. The Lillgrund
project with 530,000 € of funding, the Swedish De- offshore wind farm alone will almost double the an-
fence Material Administration will carry out tests nual installation rate. The wind farm will also add
of radar signals from airplanes and ships with wind another one-third to the total production in giga-
turbines in the radar vision field. Plans are for the watt-hours over the 2006 level. The second round
project to be carried out during 2007. (with new financing) of the program to support

224 2006 Annual Report


Sweden

technical developments in coordination with market Authors: Anders Björck, Swedish Energy
introduction will announce a call for projects dur- Agency, Sweden; input from Kenneth Averstad, Vat-
ing 2007. The Swedish Energy Agency will desig- tenfall AB, Sweden.
nate new areas of national interest for wind power
and will suggest a new planning goal for 2020 to the
government.

IEA Wind Energy 225


National Activities

226 2006 Annual Report


Switzerland
27

1.0 Introduction defined and credible Swiss energy policy that unites
a comprehensive range of energy and climate policy
The consumption of energy in Switzerland measures. The CO 2 fee and “climate cent” are in-
was 247.3 TWh, in 2005 (the most recent numbers tended to complement the SwissEnergy program.
available), 1.4% higher than the previous year. The Only by combining all three packages of measures
SwissEnergy program was launched on 31 January will Switzerland have a realistic chance of meeting
2001, by energy minister Moritz Leuenberger, on its climate goals.
the basis of the Energy Act and CO 2 Act, referring
to SwissEnergy as “a platform for an intelligent en- 2.0 Progress toward national objectives
ergy policy.” (1) The main strength of this program
aimed at promoting energy efficiency and the use of In 2001, SwissEnergy established clear goals
renewable energy lies in close co-operation of the that are still valid today. SwissEnergy makes an im-
federal government, the cantons, communities, and portant contribution toward the following goals:
numerous partners from trade and industry: envi- • Goals for promoting renewable energy (in-
ronmental groups, consumer organizations, and cluding small hydropower)
public and private agencies. • Goals of the Swiss climate policy (10% few-
Right from the start, SwissEnergy has been er emissions by 2010 compared to 1990).
making a valuable contribution to Switzerland’s • Objective target of slowing down the
climate and energy policies. Without SwissEnergy increase of electricity consumption and pro-
and its predecessor, Energy 2000, CO 2 emissions moting more efficient use (a maximum 5%
would be approximately 7% higher than they are increase of electricity consumption between
today. Thanks to SwissEnergy, energy efficiency has 2000 and 2010).
been significantly improved and the proportion of
renewable energy has been greatly increased. This The Federal Department of the Environment,
program has become a major driving force behind Transport, Energy and Communications (DETEC)
innovation in Switzerland’s economy. with the Swiss Agency for the Environment, Forests,
Despite these successes, it is clear that it will and Landscape (SAEFL), the Swiss Federal Office of
not be possible to achieve the objectives of Switzer- Energy (SFOE), and the Federal Office for Spatial
land’s climate and energy policies with SwissEnergy Development (OSD), elaborated on the Wind En-
alone. In accordance with the CO 2 Act, whose mea- ergy Concept (2) in 2003 and 2004. The targets for
sures are primarily based on the principle of volun- wind energy production in Switzerland according to
tary actions, SwissEnergy will continue to provide that document are 50 GWh to 100 GWh by 2010.
initiatives and to support implementation of a clearly In 2006, wind energy in Switzerland produced

Table 1 Key Statistics 2006: Switzerland


Total installed wind generation 11.594 MW
New wind generation installed 0 MW
Total electrical output from wind 0.0152 TWh
Wind generation as % of national electric demand 0.026%
Target: 100 GWh/yr in 2010

IEA Wind Energy 227


National Activities

Figure 1 Installed capacity and energy yield of wind turbines in Switzerland, 2006.

15.2 GWh, an achievement of 15% of the 2010


objective.
As a result of this concept, there are now as-
sessments of wind potentials, which were calculated
on the basis of the real existing wind conditions on
the sites and on the possible number of plants to be
installed:
• Time horizon 2010: 100 GWh
• Time horizon 2025: 600 GWh
• Time horizon 2050: 4,000 GWh

The wind potentials include all possible sites


from this concept, Wind Energy Switzerland, plus
all individual plants which fulfill the criteria of the
concept; only sites with wind speeds of an annual
mean of ≥4.5 m/s: some 2,850 GWh/yr from indi-
vidual plants, 1,150 GWh/yr from wind parks.

3.0 Benefits to national economy

3.1 Market characteristics


During 2006, the installed capacity of wind
energy in Switzerland did not increase. However, due
to a full year’s production of all 37 installed turbines
(with a total capacity of 11.57 MW), the energy yield
in 2006 increased to 15,228 MWh (Figure 1). This
brings the average capacity factor up to 15%. Figure 2 The Enercon E70 in Collonges. The new
The new 2-MW installation in Collonges workhorse for wind energy in Switzerland per-
(Figure 2) is alone responsible for 4.4 GWh. With a forms with a capacity factor of 25% and is respon-
capacity factor of about 25%, this Enercon E70 per- sible for 28% of the total energy yield from wind
forms excellently. The wind resources at this site (in- power. Photo by Suisse Eole (Chevalley)

228 2006 Annual Report


Switzerland

Collonges

Figure 3 Map of all wind turbine sites in Switzerland. Collonges is situated


in a long inner Alpine valley.

ner alpine valley) were clearly underestimated. The priate coating would bring great advantages for cer-
owners of this installation are planning to install tain locations as, for example, in the Alps. Until now,
more turbines near this site (Figure 3). the tested coatings have shown a reduction in ice ad-
After more than five years of disputes over the hesion and formation on surfaces, but this reduction
site of a future wind farm, Crêt Meuron, the fed- is not sufficient. Coatings with antifreeze properties
eral court of Switzerland stated in its decision of 31 analogous to antifreeze proteins open up new pos-
August 2006: “Landscape protection has no higher sibilities for reducing ice formation on surfaces.
value than clean energy production from wind en- The project, Alpine Test Site Gütsch, is based
ergy!” Since nearly all wind energy projects in Swit- on the participation in IEA Wind Task 19, Wind En-
zerland are challenged by landscape protection lob- ergy in Cold Climates. Its results and recommenda-
bies, this decision is very important for the future tions are currently being verified within the context
development of wind energy in our country. of the COST 727 project. Relevant results will be
published in a handbook. The Gütsch site, at 2,350
3.2 Industrial development and meters above sea level is now well equipped with
operational experience meteorological measurement instruments and with
Switzerland’s wind energy research programs data acquisition systems for power measurements.
place great emphasis on wind energy in cold cli- This location could be a good test site for smaller
mates. In 2006, a preliminary study for the use of (<500-kW) wind turbines in alpine conditions.
nano-coatings was carried out. The study’s authors Detailed investigations of the possible ice
presented a proposal for antifreeze coatings based on throw from wind turbines are an important com-
the effect of antifreeze proteins. Contrary to tradi- ponent of the international research project of the
tional antifreeze compounds, the effect of antifreeze IEA, Task 19. (Figures 4 and 5) Thanks to the well-
proteins is not proportional to their concentration. developed infrastructure on Mt. Gütsch there is the
Antifreeze proteins inhibit crystal growth, forcing possibility to investigate immediately after freezing
ice formation to start at much lower temperatures. events. From this work, Switzerland produces valu-
Synthetically prepared polymers can mimic the ef- able results on the issue of ice throw.
fect of antifreeze proteins. Coatings of such poly-
mers could prevent icing. 3.3 Economic details
The authors believe that the proposed proj- The specific costs of larger wind power plants
ect has great potential for the development of stable amount to about 2,000 CHF/kW (1,380 €/kW).
anti-ice coatings for wind turbine blades. An appro- Thus, the prime costs at windy locations are lower

IEA Wind Energy 229


National Activities

Figure 4 Alpine Test Site Gütsch, live Web cam from the rotating rotor blade
http://www.meteotest.ch/cost727/webcam_e40.html Photo by Meteotest (Cattin).

than 0.20 CHF/kWh (0.135 €/kWh). Swiss energy Suisse Eole coordinates all activities for the use of
law obliges energy suppliers to buy back the energy wind energy in Switzerland in collaboration with
produced by independent producers at a price of 0.15 the cantonal institutes of energy, energy suppliers,
CHF/kWh (0.105 €/kWh). Since 1 January 2005, and energy planners. Under the title Implementa-
operators of the high-voltage grid have paid these tion of the Concept Wind Energy Switzerland, Su-
costs. The Swiss parliament is still discussing a new isse Eole can offer certain operational and financial
law for opening up the electricity market. Within support for site assessments and communication
this context, there is a debate on changing the fixed measures (Figure 6).
feed-in tariff system in the current energy act to
cost-covering remunerations, similar to the German 5.0 R, D&D activities
Renewable Energies Act. The principle should be
approved in spring 2007. 5.1 National R, D&D activities
Specific focal points in research for wind
4.0 National incentive programs power generation in hilly and mountainous terrain
will provide more know-how to enhance opportu-
Wind energy has managed to be an important nities for Swiss companies in the globally booming
mosaic stone within the sustainable energy supply wind energy market. In 2006, the budget for wind
in Switzerland. Participation by big electric supply energy–related R&D projects was 262,000 CHF
companies in the research activities of the wind en- (175,000 €). For promoting activities, the budget is
ergy program is still relatively low. 425,000 CHF (285,000 €).
Suisse Eole, the Swiss Wind Energy Associa-
tion, has managed to position itself as the leading 5.2 Collaborative research
authority on the use of wind energy in Switzerland. The concept of energy research of the Swiss
government from 2004 to 2007, presented by

230 2006 Annual Report


Switzerland

Figure 5 Distance of ice throw from a 600-kW wind turbine and weight of
ice pieces in different events.

CORE (Switzerland’s federal commission of energy • “These activities will also create the
research activities) during the energy research con- possibility to exchange experiences at an inter-
ference in November 2003 highlights the following national level.”
issues in the wind program:
• “The utilization of wind power in Wind energy is an important part of the
Switzerland is still faced with problems of ac- national SwissEnergy program. In addition to par-
ceptance as well as with high technological ticipating in the IEA Wind Task 19, Wind Energy
requirements due to mountainous sites. in Cold Climates, Switzerland participates in IEA
• “The planned goals of reaching 50 GWh to Wind’s Task 24, Integration of Wind and Hydro-
100 GWh by the year 2010 should be concret- power Systems.
ized spatially within a nationwide concept and
the necessary planning tools should be Initial discussions within IEA Wind show
developed. substantial interest in social acceptance. In May
• “The specific problems facing wind plants 2007, Switzerland will host an IEA Wind Task 11
in mountainous sites and an important local Topical Expert Meeting on social acceptance in
supplier industry of wind plant components Lucerne.
justify the resumption of research activities.

Figure 6 Distribution of financed activities by the Swiss wind energy association Suisse Eole.

IEA Wind Energy 231


National Activities

Figure 7 Development of the financing of Swiss R, D&D activities in wind energy.

6.0 The next term Wind power generation holds enormous po-
tential of great economic importance beyond the
In 2007, an additional energy research pro- small Swiss market. Increased research activities
gram (2008 through 2011) will be approved by the should help to develop business activities in the area
authorities. Special emphasis of the research efforts of the core competence of the Swiss wind energy
in the area of wind energy is given to these goals: industry.
• Increase the acceptance of wind energy
(social acceptance) with integration of social References
sciences. Reduce planning time.
• Increase the availability and energy yield at (1) Information about SwissEnergy is available at
extreme sites (cold climate, high turbulence http://www.bfe.admin.ch/energie/00458/index.
intensity, and difficult access). html?lang=en&dossier_id=00720.
• Develop wind turbine components for the (2) Konzept Windenergie Schweiz, BFE, 2003)
application of this technology under specific
Swiss conditions by Swiss industry. Author: Robert Horbaty, Swiss Wind Energy Pro-
• Increase the value of wind energy (fore- gram, Switzerland.
casting, now-casting, regulating energy, and
so on).

232 2006 Annual Report


United Kingdom
28

1.0 Introduction but only a further 20 months to be close to 2 GW.


The rapidly growing UK wind industry will be the
The United Kingdom (UK) has one of the single biggest contributor to the government’s target
best wind resources in Europe and has significant of 10% from renewables by 2010. Wind is expected
potential for development of both onshore and off- to deliver almost half of the 10% electricity target.
shore wind. The UK government has put in place a The continuing challenges of energy security
range of measures to enable the successful develop- and climate change led the UK government to issue
ment of that potential resource, and it is committed two key publications in 2006—the government’s En-
to ensuring the further growth of wind generation ergy Review and the Stern Review. The Stern Re-
in the UK. In the medium term, wind energy is view’s Final Report, which focuses on the econom-
expected to generate 8.8% (onshore) and 9.4% (off- ics of climate change, has received global interest
shore) of the UK’s projected electricity supply by and is seen as a landmark publication in the debate
2020, with a further 0.7% potential from micro and surrounding global warming. The Energy Review,
mini wind turbines. launched in November 2005 by the prime minister,
The year 2006 was another record-break- was published in July 2006 and is the most impor-
ing year, with more than 0.6 GW of wind capacity tant assessment of the UK’s energy policy since the
installed. It was the most productive and success- 2003 Energy White Paper. The Energy Review has
ful year in the UK wind sector’s history and posi- identified three key areas that require action if the
tions the UK close to the 2-GW landmark. It took government’s current and future renewable energy
14 years for the UK to reach the 1-GW landmark requirements are to be met: Changes to the Re-

Table 1 Key Statistics 2006: United Kingdom


Total installed wind generation* 1,962.85 MW (2006)
1,565.0 MW (2005)
New wind generation installed** 630 MW (2006)
447 MW (2005)
241 MW (2004)
Total electrical output from wind 4.591 TWh estimated (2006)***
2.908 TWh (2005)
Wind generation as % of national electric demand* 1.12% (2006)
Target: 10% of electricity from renewables
by 2010
* Estimated from the sum of the Digest of UK Energy Statistics (DUKES) figures for 2005, which includes
all known wind generation in the UK and the capacity built in the year recorded by British Wind Energy
Association (BWEA). This compares with a BWEA figure for 2006 of 1,963 MW (the figure was 1,332.06
MW in 2005), which only includes turbines greater than ~200 kW in capacity. Turbines less than 200 kW
are estimated to account for an additional 4 MW of capacity.
** According to BWEA.
*** Estimated assuming average capacity factors and new onshore capacity added uniformly across year
and offshore added when first online.

IEA Wind Energy 233


National Activities

newables Obligation (RO) to bring forth emerging against UK gas exports—accounted for 15.8% of to-
renewable technologies; Overhaul of the planning tal demand for gas in 2005 (up from 11.8% in 2004).
system to tackle problems experienced in getting Import reliance will increase over the coming years
planning consent; and improving access to the grid as output from the UK declines. Imports could be
renewable energy to 2010 and beyond. meeting up to 40% of total gas demand by 2010 and
Once further consultation on elements iden- 90% by 2020.
tified in the Energy Review is complete, the gov- The UK’s energy sector has a framework that
ernment will set out its final position in an Energy combines competition where it is desirable and reg-
White Paper to be published in May 2007. ulation when it is necessary. Business and residential
UK renewable energy statistics can be found consumers are able to choose among competing sup-
at the Department of Trade and Industry (DTI) pliers of electricity and gas, and several companies
Web site: www.dti.gov.uk/energy/statistics/source/ operate in the electricity generation market. The
renewables/page18513.html. electricity and gas networks are privately owned and
operated but are regulated in Great Britain by the
1.1 Overview of UK energy independent Office for Gas and Electricity Markets
market characteristics (Ofgem) and in Northern Ireland by the Office for
In the UK, primary energy supply comes Regulation of Electricity and Gas (Ofreg).
from a range of sources—natural gas (38%); oil and
petrol products (36%), coal (16%), electricity (8%), 1.2 General summary 2006
and renewables and other sources (2%) (1). Elec- In 2006, a record-breaking year for devel-
tricity generation stations use a mixture of energy opment, more than 630 MW of new capacity was
sources: coal (37%), gas (33%), nuclear (21%), and re- commissioned, bringing the UK close to achieving
newables (4.6%); the remaining 5% comes from oth- the 2-GW landmark. Total installed capacity now
er fuels, oil, and electricity imports (2). Renewable stands at 1,962.85 MW, an increase of 41% above
energy sources accounted for 4.25 million tonnes of 2005 levels. Included in this new capacity was 90
oil equivalent, with 3.77 million tonnes used to gen- MW from Barrow, the UK’s fifth offshore wind
erate electricity and 0.48 million tonnes to generate farm, just off the northwest coast of Cumbria, Eng-
heat. Use of renewable energy grew by 15% in 2005, land (Figure 1). This brought the total installed off-
a rate four times higher than that in 1990. Total pri- shore wind capacity at the end of 2006 to 304 MW.
mary energy demand was 0.5% higher than in 2004 The overall electricity contribution from
at 246.9 million tonnes of oil equivalent. wind energy was up by a factor of 1.5 at 2,908 GWh
Although the UK is still one of the global top (2005), or 1.12% of the total electricity demand for
10 producers of oil and gas and will remain a major the UK (408,846 GWh in 2005) (3). This contribu-
player for many years, it is entering a new era for its tion from wind is set to rise dramatically over the
energy supplies. The North Sea has given the UK next few years; predictions are that wind energy
self-sufficiency in oil and gas, but that is now chang- could meet between 5% and 8% of the total demand
ing. So far, 34 billion barrels of oil equivalent (bboe) in 2010. The average load factor for onshore wind
have been produced; remaining reserves are likely was estimated as 26.6%. Table 2 lists the capacity
to amount to between 21 and 27 bboe. If the UK factors for wind farms in the UK in a non-attribut-
makes the most of these resources, maintaining in- able way—that is, it is not possible to provide actual
digenous production as far as possible, production is capacity factors for all specific wind farms, and so
likely to decline at an average rate of around 7%/yr. some regions do not appear on the list.
If, on the other hand, the UK fails to attract contin- Offshore wind results for the UK’s first large
ued investment, the decline in production could be offshore wind farm, the 60-MW North Hoyle devel-
significantly more rapid; studies suggest up to 14%/ opment, have been published in the second annual
yr. This would be the difference between meeting report for the period July 2005 to June 2006. Over-
half of the UK’s oil and gas needs by 2020 and meet- all commercial availability was 91.2% (cf. 89.1% in
ing just 10%. the previous year); overall capacity factor was 34.3%
The UK was a net importer in 2005 of 7% (cf. 36% in the previous year). The second annual
of its gas (most recent figures available). This per- report ( January 2006 to December 2006) from the
centage varies throughout the year and is higher at UK’s second large offshore wind farm, the 60-MW
times of peak winter demand. Gross imports—that Scroby Sands Offshore Wind Farm, showed that
is, the amount of gas imported without balancing overall commercial availability was 81% (cf. 84.1%

234 2006 Annual Report


United Kingdom

in the previous year) and overall capacity factor was


24.1% (cf. 28.9% in the previous year).
These reports will be available in 2007 from
http://www.dti.gov.uk/publications/index.html.
Previous annual reports for these projects are avail-
able from http://www.dti.gov.uk/energy/sourc-
es/renewables/publications/page32846.htmland
http://www.dti.gov.uk/files/file34791.pdf.

2.0 Progress toward national objectives

2.1 Policy background


The UK government has four long-term goals
for its energy policy:
1. To put the country on the path to reduc-
ing carbon dioxide emissions by 60% by 2050,
with real progress by 2020.
2. To maintain the reliability of energy sup-
plies.
3. To promote competitive markets in the
UK and beyond, helping to raise the rate of
sustainable economic growth and to improve
our productivity.
4. To ensure that every home is adequately
and affordably heated.
Figure 1 Some of the thirty 3-MW turbines at
Barrow Offshore Wind Farm (photo © Barrow Off- The energy policy is detailed in the Febru-
shore Wind 2005).
ary 2003 Energy White Paper “Our Energy Fu-
ture—Creating a Low-Carbon Economy.” The paper

Table 2 Regional capacity factors for wind farms in the UK*


Region 1998 1999 2000 2001 2002 2003 2004 2005 Average
1998–2005
East of England 0.23 — — — — 0.23 0.26 0.27 0.24
Northeast — — — — 0.23 0.19 0.22 0.23 0.21
Northwest 0.30 0.29 0.27 0.23 0.27 0.24 0.26 0.26 0.27
Yorkshire and the Humber 0.32 — — — — 0.28 0.27 0.27 0.29
Southwest 0.30 — — — — 0.24 0.24 0.24 0.26
Southeast — — — — — — — 0.18 0.18
England 0.30 0.28 0.27 0.23 0.27 0.24 0.25 0.25 0.26
Northern Ireland 0.40 0.39 0.37 0.32 0.35 0.34 0.36 0.35 0.36
Scotland 0.34 0.29 0.29 0.27 0.29 0.28 0.34 0.30 0.30
Wales 0.29 0.29 0.26 0.23 0.26 0.25 0.26 0.25 0.26
UK average 0.31 0.31 0.29 0.26 0.28 0.26 0.29 0.28 0.29
UK aggregate load factor 0.31 0.28 0.28 0.26 0.30 0.24 0.27 0.26 0.28
* Energy Trends: March 2006, URN 06/79a , ISBN 0 85605 356 2, Special Feature – Renewables UK onshore wind
capacity factors 1998–2004, www.dti.gov.uk/files/file27084.pdf, plus recent analysis.

IEA Wind Energy 235


National Activities

set out a new strategy for energy policy until 2050. Planning. The planning system needs to be
It established a clear long-term framework against overhauled to tackle problems in getting planning
which business and domestic customers could plan consent. The government intends to consult on
and make decisions with confidence. An annual changes to planning inquiry rules to help reduce
progress report on the implementation of the Energy planning delays to renewable projects while recog-
White Paper is published jointly by the Department nizing the rights of people to object to applications.
of Trade and Industry and the Department for Envi- Access to the grid. Without significant in-
ronment, Food and Rural Affairs. vestment in transmission infrastructure and grid
In November 2005, the prime minister and strengthening, it is unlikely the government will
secretary of state for trade and industry announced achieve its targets for renewable energy to 2010 and
the review of the UK’s energy policy with a view beyond.
to bringing forward policy proposals in 2006 and to On 9 October 2006, the government pub-
publishing an Energy White Paper in 2007. The re- lished a consultation document, “Reform of the Re-
view was driven by the two major long-term energy newables Obligation and Statutory Consultation on
challenges that the UK faces: the Renewables Obligation Order 2007” (see www.
• Tackling climate change, along with other dti.gov.uk/files/file34470.pdf). Further informa-
nations, as global carbon emissions from hu- tion on the Government’s proposals to strengthen
man activity continue to grow. the RO can be found in Section 4.1.
• Delivering secure, clean energy at afford- Also, in July 2006 the third annual report on
able prices, as the UK becomes increasingly the implementation of the 2003 Energy White Paper
dependent on imports for our energy needs. “Creating a Low-Carbon Economy: Third Annual
Report on the Implementation of the Energy White
In January 2006, the secretary of state and the Paper” was published. The report can be found at
minister for energy launched the review consulta- www.dti.gov.uk/energy/policy-strategy/energy-
tion document “Our Energy Challenge: Securing white-paper-2003/third-annual-report/page32491.
Clean, Affordable Energy for the Long Term”. The html.
terms of reference can be found at: www.dti.gov.uk/ Several key issues facing the wind sector in
energy/review/page31995.html. 2006 include electrical connection, planning, de-
The review’s conclusions were published in fense, and aviation issues. Additional considerations
July 2006 in “The Energy Challenge Energy Review concerning strengthening and modifying the Re-
Report 2006” (see www.dti.gov.uk/files/file31890. newables Obligation are covered in Section 4.2.
pdf). The review concluded that the UK’s energy
policy and market framework is sound, but there is 2.2 Access to the grid
a need for new policy initiatives to meet the signifi- The anticipated geographical location of
cant challenges the UK faces in the coming decades. much of the new wind generation coming on stream
The report sets out the next steps that are needed to will require the development of new transmission
respond to those challenges, and proposes a range infrastructure in England, Wales, and Scotland. In
of measures to promote its growth which, taken to- addition, capacity of the Scotland/England inter-
gether, should mean that the UK can get 20% of its connector will need to be strengthened to enable
electricity from renewable sources by 2020. generation in Scotland to be delivered to demand
The review identified the following main centers in the south of England. Without this invest-
barriers to the further development of renewables, ment, it is unlikely the government will achieve its
including onshore and offshore wind: targets for renewable energy to 2010 and beyond. To
Renewables Obligation. The main financial enable this, the transmission companies’ regulated
instrument for supporting renewable generation price control has already been adjusted to allow 530
has succeeded in bringing forward major develop- million £ of network investment in Scotland, the
ments in onshore wind, landfill gas, and co-firing interconnector, and new transmission works in the
of biomass in coal power stations. But as a technol- north of England.
ogy-neutral instrument, the RO has been less suc- In addition to further investment in the trans-
cessful in bringing forward development of more mission network, the connection of renewable gen-
emerging technologies, and so changes to the RO eration to the grid has also been an issue. High user
are required. commitment costs known as final sums liabilities

236 2006 Annual Report


United Kingdom

have posed a barrier to project development. As a rity requirements offshore would need to be differ-
consequence, the system operator has introduced ent from those established onshore under the Great
interim alternative arrangements to the final sums Britain Security and Quality of Supply Standard
liability. The new arrangements provide a greater (GB SQSS).
degree of certainty for developers about the extent Decisions on this raft of consultations will be
of the financial liabilities they commit to when their announced in 2007 and will set a clear direction for
project triggers reinforcement work on other parts the further development of the regulatory frame-
of the transmission network. work to connect offshore wind farms to the onshore
grid.
2.3 Offshore transmission
The government and Ofgem are establish- 2.4 Planning issues
ing an offshore transmission regulatory regime to According to industry statistics, it takes an av-
enable the connection of offshore wind and other erage of 21 months for wind farms (>50 MW) to
marine technologies to the onshore grid. This is a secure planning consent under the Electricity Act
critical requisite for the marine sector. The aim is to regime. For smaller wind farms required to secure
have a regime in place by 2008. permission under the Town and Country Planning
The government decided in March 2006 Act, decisions on average take 10 months in Eng-
that the appropriate model for the regulation of off- land and 27 months in Wales, against a target to de-
shore electricity transmission systems was through termine 60% for all “major applications” within 13
a regulated price control approach, extending the weeks. Such long consent periods therefore present
principles of the approach to onshore transmission developers with costs, risks, and uncertainty associ-
regulation. In practice, this means that transmis- ated with delays.
sion operators will be responsible for building the The government is committed to fundamen-
offshore networks and that developers will pay an- tal changes in planning systems for major energy
nual use-of-system charges based on the cost of the projects in England and Wales. The planning system
infrastructure. Following the government’s decision in Scotland is a devolved matter for the Scottish Ex-
in March 2006, in August 2006, the energy minister ecutive and was also subject to review in 2006.
announced that National Grid Electricity Transmis- In the Energy Challenge paper for 2006, the
sion (NGET)’s role as Great Britain System Opera- government clarified the strategic importance of en-
tor (GBSO) will be extended offshore. ergy infrastructure and published a clear statement
On 20 November 2006, the DTI and Ofgem of need for renewables to provide further support
jointly published a consultation document on the and guidance for decision makers in the planning
licensing of offshore electricity transmission. The system in England. This is now to be used alongside
latter document invited views on two possible mod- Planning Policy Statement 22 (PPS22) in England
els for licensing transmission owner (TO) activities and Technical Advice Note 8 (TAN 8) in Wales.
offshore under a price control regime. The two op- The government has also committed to in-
tions were: troducing efficient inquiries and will introduce new
• A nonexclusive approach whereby potential inquiry rules for applications under the Electricity
offshore TO’s would compete with each other Act in spring 2007. It will also undertake further
through a common tender process for the right work on options to ensure appropriate and predict-
to build, own, and maintain offshore electrici- able timing for decisions on applications for energy
ty transmission connections. developments.
• An exclusive based approach whereby a sin-
gle TO would be exclusively responsible for 2.5 Defense and civil aviation interests
responding to all future connection requests It is now recognized that wind turbines can
from generators in a defi ned geographical ar- adversely affect the aviation domain. Therefore, de-
ea offshore. velopments must take place in a way that fully takes
into account national air defense and air safety, with
In December 2006, DTI and Ofgem jointly the wind energy and aviation communities under-
published an initial consultation document on a se- standing the needs of each other.
curity standard for offshore transmission networks In the UK, the Department of Trade and In-
(9). The document summarized the results of the dustry, which is responsible for energy policy, has
work of an industry subgroup on whether the secu- set up the Wind Energy, Defence and Civil Aviation

IEA Wind Energy 237


National Activities

Interests Working Group to investigate the issue and 2.6 Progress toward national targets
improve understanding between the aviation and Good progress has been made toward achiev-
wind energy industries. One example of close coop- ing the UK’s 10% from renewables generation by
eration has led to planning consent for the Whitelee 2010 target. As the Energy Review acknowledges,
Wind Farm in Scotland. When built, it will have the however, a strengthening of the framework that sup-
capacity to generate 322 MW of electricity and will ports the development and deployment of renewable
be one of Europe’s largest wind farms. technologies is required. The total generation from
A program has been agreed to develop poten- RO-eligible renewable sources was around 4% of
tial solutions to mitigate interference so that they electricity supply in 2005, up from 1.8% in 2002.
can be safely adopted by the aviation industry. This Figures for 2006 will be published in 2007. Over-
will ensure that the aviation industry’s objections do all demand for electricity in the UK in 2005 was
not prevent developers from constructing enough 408,846 GWh, an increase of 0.50% over 2004. The
wind farms to meet the government’s renewables contribution from wind was 2,908 GWh (2005), up
objectives. Main activities in 2006 have included: a factor of 1.5 over 2004. Wind energy met 0.71% of
Planning Strategy Group: Specific issues re- the total demand.
lating to planning have moved up the agenda, par- Regarding wind generation capacity, BWEA
ticularly following recent national reviews that have figures show that 2006 was another record year.
recommended the streamlining of the planning A total of 22 new projects, including one offshore
process. To address these issues, a Planning Strategy project, came on stream, representing over 630 MW
Group was established. Key items being considered of new capacity (Figure 2). This raised the total in-
include preparation of planning guidelines, strategic stalled capacity to 1,962.85 MW, an increase of 47%
approaches to planning, database and information on the capacity installed in 2005 (Figure 3). Figure 4
sharing, and issues surrounding micro generators. shows the distribution of newly installed capacity by
Greater Wash: The Collaborative Offshore country within the UK. Table 3 details the projects
Wind Research into the Environment (COWRIE) that were commissioned in 2006. Figure 5 shows
and DTI, with technical support from the Ministry projects under construction at the end of the year.
of Defence (MOD), are sponsoring a study to inves- In 2006, 35 new projects were approved
tigate the feasibility of in-fill radar in the Greater through the planning system totaling over 1,790
Wash area. The report from this study will inform MW. These projects brought the total UK capacity
relevant stakeholders about whether this is a feasible approved but not yet under construction to 3,176
solution that can be used to accelerate the consent MW; the breakdown by country is shown in Figures
process. 6 and 7.
MOD activities: The MOD continues to be New projects approved in 2006 represented a
active in improving its understanding of the impact project approval rate of 54.7%, down from 59.6% in
of wind turbines on its radar systems. Air Defence 2005. That 2005 rate was very close to the approval
(AD) trials were undertaken in June 2006, and the rate from 2004, but the rates for 2004 and 2005 were
data captured will enable a greater understanding of down from the 75% approval rate in 2003. However,
wind farm issues associated with AD radar. These in terms of approved capacity, the 1,789.55 MW of
data will help to direct the MOD’s policy on devel- new capacity approvals in 2006 is about 2.3 times
opments in wind turbines and wind farms. greater than the 767 MW approved in 2005. Worthy
Mitigating technologies: DTI has sponsored of note is the approval of Europe’s largest wind farm
several projects with support from the MOD and at Whitelee, south of Glasgow. The 300-million-£
BWEA to investigate filter technologies for miti- project will consist of 140 turbines with a capacity of
gating radar interference attributed to wind tur- 322 MW and will provide 11% of the 2010 Scottish
bines. Phase 1 was completed in 2005 and Phase 2 Executive’s renewable energy target. Figures 8 and
in 2006. In parallel to Phase 2, DTI also funded a 9 show the wind farm planning application success
study to prepare draft safety cases for a typical radar and failure rates from 1991 to 2006.
system mitigated with two different technologies.
As part of the DTI’s Emerging Energy Technology 2.7 Offshore
Programme, two projects are being supported to Significant development of offshore wind in
investigate materials and methods (stealth technol- the UK began in April 2001 when 18 companies
ogy) that will assist in mitigating radar interference were awarded agreements for leases by the Crown
from wind turbines. These projects are scheduled Estate (CE) in the first round (Round 1) of offshore
for completion in 2007. wind farm sites on the UK seabed. Round 1 consists

238 2006 Annual Report


United Kingdom

Figure 2 UK wind capacity built in 2006; total 630.8 MW.

Figure 3 History of UK wind capacity growth built in the UK to the end of


2006: total 1,963 MW.

of a total of 18 sites, limited to 30 turbines per site, Farm, which was commissioned in 2006. Barrow is
grouped at 13 locations around the UK. located in the Irish Sea, off Barrow in Furness, about
Progress with Round 1 of development of the 7 km southwest of Walney Island. A fifth offshore
UK offshore wind farms has been slower than an- project is Burbo Bank, a 90-MW development in
ticipated. This is due to a significant increase in the Liverpool Bay 6.5 km off the northwest coast of
price of steel and copper; turbine availability, with England. This project is under construction, and
manufacturers preferentially supplying turbines for commissioning is due in late 2007. The Robin Rigg
the onshore market; cable demand; and protracted development, which consists of two 90-MW wind
contractual negotiations as suppliers chose to move farms, signed major supply and installation contracts
away from turnkey contract arrangements. The re- toward the end of 2006. These developments are
sult is that the economics of projects have been less due to be commissioned by spring 2009.
attractive, long lead times have been needed for the Twelve of the Round 1 projects were award-
supply of turbines, and protracted re-tendering via ed capital grants to assist the development of what
multicontract arrangements has been necessary. were originally intended as demonstration projects
However, four of these projects are now gen- to learn valuable experience offshore. Further
erating electricity totaling 304 MW of installed ca- details about the capital grant scheme are given in
pacity, making the UK second only to Denmark in Section 4.
the development of offshore wind. Installed offshore The second phase of offshore wind farm de-
projects include the 90-MW Barrow Offshore Wind velopment in the UK, Round 2, allows for much

IEA Wind Energy 239


National Activities

Table 3: Wind projects commissioned in the UK in 2006


Wind farm Region Turbines Power* MW Online
Bambers Farm II England 6 0.8 4.8 November 2006
Barrow (offshore) England 30 3 90 July 2006
Beinn Tharsuinn Scotland 17 1.3 30 September 2006
Black Law B Scotland 12 2.3 27.6 September 2006
Boyndie Airfield Scotland 10 2 20 May 2006
Burton Wold Wind Farm England 10 2 20 April 2006
Callagheen Northern Ireland 13 1.3 22.75 January 2006
Caton Moor Repowering England 8 2 16 July 2006
Deeping St Nicholas England 8 2 16 July 2006
Eastman (Voridian) England 2 2 4 October 2006
Farr Wind Farm Scotland 40 2.3 92 May 2006
Ffynnon Oer Wales 16 2 32 June 2006
Findhorn Foundation Scotland 4 1 0.75 March 2006
Gedney Marsh (Red House) England 6 2 12 July 2006
Glass Moor England 8 2 16 March 2006
Hadyard Hill, Barr Scotland 52 2.5 120 March 2006
Hafoty Ucha 3 extension Wales 1 0.85 0.85 January 2006
Michelin Tyre Factory Scotland 2 2 4 May 2006
Mynydd Clogau Wales 17 0.85 14.45 April 2006
North Pickenham Wind Farm England 8 1.8 14.4 November 2006
Paul’s Hill Scotland 24 2.3 55.2 April 2006
Wardlaw Wood Scotland 6 3 18 April 2006
300 41.3 630.8
*Average turbine size: 2.1027 MW

more ambitious project arrangements. Options for plication in June 2005. When built, it will be
site lease agreements totaling as much 7,200 MW capable of powering one-quarter of all the
were offered to 15 sites. These are to be developed homes in London.
in three strategic areas in and around territorial wa- 2. The 300-MW Thanet project also re-
ters around the UK coastline: the Thames Estuary; ceived consent in December 2006 after having
the Greater Wash off England’s east coast; and in the submitted its application in November 2005.
northwest, including the Liverpool Bay area and the
Renewable Energy Zones outside the territorial sea. These projects submitted their planning ap-
Visible progress on the Round 2 projects plication in 2006:
has been seen; two applications have been granted 1. The 315-MW Sheringham Shoal project
consent, and five are in the planning process await- by Scira Offshore Energy Ltd was submitted
ing decisions. The following projects have received (S36) in May 2006.
consent: 2. 450-MW Walney: Dong was submitted
1. The 1,000-MW London Array Limited (S36) in March 2006.
received consent in December 2006 for the 3. 500-MW West Duddon: Scottish Power
world’s largest offshore wind farm to be built was submitted (S36) in April 2006.
in the London Estuary after submitting its ap-

240 2006 Annual Report


United Kingdom

Figure 4 UK wind capacity built to the end of 2006 by country (England


555 MW, Northern Ireland [NI] 112 MW, Scotland 935 MW, and Wales 361
MW).

Figure 5: UK wind capacity under construction at the end of 2006; total


1,034 MW.

3.0 Benefits to national economy rest are located elsewhere in the UK. The DTI has
estimated that Round 2 of offshore wind develop-
3.1 Market characteristics ment alone could bring a further 20,000 jobs for
The high level of project development un- Britain.
dertaken in 2006 together with the large number The wind sector covers a diverse range of
of projects that have gained planning consent un- goods and services to meet the needs of the UK mar-
derlines the fact that wind energy remains one of ket. The supply chain includes developers, finance,
the fastest-growing energy sectors in the UK. Cur- legal, insurance, and consultants. Also included are
rently, about 8,000 jobs are sustained by companies supply chain manufacturers covering all major ele-
working in the renewables sector, and this number ments of a wind turbine, including blade manufac-
is projected to increase as the wind industry grows. ture, foundations, seabed survey, logistics and port
About 1,500 of these jobs are in Scotland, and the storage, installation, cable laying, connections, stan-

IEA Wind Energy 241


National Activities

Figure 6: UK capacity approved but not yet under construction at the end of
2006; total 3,176 MW.

Figure 7 All UK-approved projects at the end of 2006; total 6,173 MW.

242 2006 Annual Report


United Kingdom

Figure 8 Wind farm planning application success and failure by capacity, UK.

Figure 9: Wind farm planning application successes and failures, UK.

dards/certification, and O&M services. Significant Wind Farm Co-operative, which is the first wind
entry to the turbine supply chain market is currently farm co-operative in Scotland). Based on the price
limited for UK suppliers, and turbine suppliers ob- of installed capacity, wind-sector turnover in 2006
tain the bulk of their components outside the UK. was about 965 million €.
As of 2006, details concerning 450 companies
and their services are listed in an open marketing 3.2 Industrial development and
database available from the WindSupply Web site, operational experience
www.windsupply.co.uk. WindSupply was set up In the UK, there are no indigenous manufac-
with support from the DTI and several UK regional turers of large wind turbines, but there are several
development agencies to encourage, support, and small and micro turbine manufacturers—e.g., Bru-
promote UK businesses to enter the supply chain mac (50 kW), Gazelle Wind Turbines (20 kW),
for wind energy components. WindSupply also has Proven (0.6 kW to 15 kW), Iskra (5 kW), Marlec
an initiative to reestablish tower manufacturing (0.06 to 0.72 kW), and Ampair (0.1 kW). Govern-
in the UK. ment interest in microgeneration significantly in-
Ownership patterns are changing to include creased in 2006 via the Micro Generation Strategy
community ownership. The number of commu- (April 2006) and by the Climate Change and Sus-
nity-owned wind projects is increasing from a very tainable Energy Act 2006 and Budget 2006. The
low level (Table 4). Two approaches are being used. act is designed to increase the installation of micro
The first is to develop entire projects. The second wind turbines, solar panels, and other local generat-
is to piggyback onto a larger project (e.g., Boyndie ing technologies. It will prioritize policy measures

IEA Wind Energy 243


244
Table 4 Community-owned wind projects in the UK
Co-op Launch date Location Wind project Total project Co-op fund Co-op Members
status size (MW) (million £) ownership of
project
Baywind Done Cumbria Operational 3.10 2.00 Harlock Hill (two 1,300
National Activities

of four turbines,
1997) and
Haverigg II (one
of four turbines,
1998)
Findhorn Loan Moray Operational 0.68 0.26 March 2006 Loan
Boyndie Done Banff Operational 14.00 0.70 4%, May 2006 592
Deeping February 2007 Lincolnshire Operational 16.00 4.40 Two of eight 3,520
turbines,
01/07/2006
Ben Aketil November 2007 Skye Constructing 14.00 1.30 1,056
Kil braur July 2008 Highlands Constructing 2.00 1,600
Millennium February 2008 Highlands Constructing 48.00 2.10 1,690
Westmill Done Oxfordshire Financing
received;
awaiting 6.50 3.40 100% 2,300
construction
Hydro June 2007 Humber Financing 2.00 1.40 1,120
Caledonia September 2007 Scotland Financing 16.00 12,800
Pates Hill To be determined
West Lothian Financing 16 7 9,600
Airfield To be determined
Bedfordshire Planning 21 TBD One of nine To be offered
application 2.3-MW
submitted turbines
September 2005 developed by
NUon

2006 Annual Report


United Kingdom

to support customer-based microgeneration and aim


to overcome existing barriers. It should also make
it easier to sell excess energy back to utility compa-
nies, which is a key part of the DTI’s microgenera-
tion strategy. Finally, it will introduce targets for the
take-up of microgeneration.
The utility Scottish and Southern Energy
(SSE) has interests in the small wind market, hav-
ing bought a company share in Renewable Devices
Swift Turbines Ltd, which developed the Swift roof-
top wind turbine (Figure 10). SSE has been train-
ing engineers in installation and service. The utility
serves about 6.5 million customers and has more
than 3,000 engineers nationwide, and it plans to of-
fer micro wind turbines to several of these custom-
ers. SSE is talking with housing companies and retail
chains.
A company called Eclectic Energy has adapt-
ed a turbine from the sailing and yachting mar- Figure 11 The Westwind 20.
ket to the micro/domestic market. Their device,
called Stealthgen, is nearly market ready, and when Westwind, part of GP&GF Hill Pty Ltd, has
it is available it should provide about one-sixth of recently been purchased by J. A. Graham Renew-
a household’s electricity needs over the year. The able Energy Services, which is based in Northern
Building Research Establishment (BRE) is testing Ireland.
several building-mounted/integrated wind turbines
(BuWTs) to obtain independent data on their per- 3.3 Economic details
formance. Precise details of these tests are subject to Financing for wind farms is obtained largely
commercial confidentiality. from the balance sheet of corporate investors and
Segen continues to expand its range of small banks, although there is a small amount of private
wind turbines, and following the launch of the investment. The Renewables Obligation has greatly
Southwest Windpower Whisper 3.2 kW in Decem- increased the development of wind projects, with
ber, they now offer a 20-kW turbine from the long- utilities, conventional power generators, and new
established Australian manufacturer Westwind developers active in the market (Figure 12). Because
(Figure 11). of the high value the obligation places on renew-
ables, corporate investment will yield good returns
through an expansion of the core business while
reducing exposure to penalty payments. Wind has
found particular favor because of its economics, ma-
turity, and ability to deliver relatively quickly. The
outcome of the Reform of the Renewables Obliga-
tion is expected to be instrumental in securing fu-
ture investment in wind energy.
The present-day costs of installing wind en-
ergy in the UK are between 585 £/kW and 800 £/
kW onshore, rising to 1,200 £/kW to 1,600 £/kW
offshore. The higher capital expenditure costs of off-
shore are due to the increase in size of structures
and the logistics of installing the towers. The costs
of offshore foundations, construction, installations,
and grid connection are significantly higher than
Figure 10 A typical Swift wind turbine during in- onshore. For example, typically, offshore turbines
stallation (photo courtesy of Renewable Devices
are 20% more expensive, and towers and founda-
Energy Solutions Ltd © 2006).
tions cost more than 2.5 times the price for a project
of similar size onshore.

IEA Wind Energy 245


National Activities

In April 2006, ODE Ltd was commissioned tober) following the end of the auction. These auc-
by the DTI to investigate the scope for cost reduc- tion prices are for electrical output, together with
tion in the supply chain for offshore wind. The (depending on the generation technology) Climate
study provides an estimate of the future costs of Change Levy Exemption Certificates (LECs) and
offshore wind generation and the potential for cost Renewable Obligations Certificates (ROCs), which
reductions. It identified the cost of raw materials— are explained further in Section 4.
especially steel, which accounts for about 90% of In the NFFO and SRO (Scottish Renewables
the turbine and a primary cost driver. The report Order) power auction no. 1 completed in August
emphasized that major savings can be realized if 2006, the price for wind was the highest to date at
turbines are made of lighter, more reliable materials 102.3 £/MWh. This compares with the February
and if major components are developed to be more 2006 auction no. 11 price of 84.8 £/MWh and the
fatigue resistant. A cost model based on 2006 costs prices in 2005 of 67.5 £/MWh and 90.5 £/MWh
predicted that costs will rise from approximately 1.6 for February and August, respectively. The prices of
million £ to approximately 1.75 million £ in 2011 ROCs traded quarterly in 2006 increased slightly
before falling by around 20% of the cost by 2020. from 38.43 £/MWh in January to 39.84 £/MWh
It reports that perceived cost-reducing impacts of in October, a trend that was opposite to that for the
R&D and the “learning curve” far override the cost electricity-only price. In 2005, the average prices
increase attributed to steel, copper, and supply and were higher, varying from 39.17£/MWh in Octo-
demand. This report is available from www.dti.gov. ber to a high of 47.18 £/MWh in January 2006.
uk/files/file38125.pdf.
Indications of power purchase prices come 4.0 National incentive programs
from published auction prices and trading prices
from renewable energy certificates. Currently, the 4.1 Renewables Obligation (RO)
Non–Fossil Fuel Purchasing Agency Ltd. (NFPA) The RO is the government’s main policy
conducts biannual green power auctions. These auc- measure to stimulate expansion of electricity from
tions are for electrical output that will be produced renewable sources and to achieve the UK’s 10% tar-
by NFFO (Non–Fossil Fuel Obligation) generators get by 2010. The RO has stimulated growth and use
during a six-month period (starting 1 April or 1 Oc- of the UK’s renewable resources by obliging licensed

Figure 12: The UK’s largest capacity onshore wind farm, Hadyard Hill, 119.6 MW, located in
Barr, South Ayrshire; online in March 2006.

246 2006 Annual Report


United Kingdom

electricity suppliers to source a rising percentage of businesses to become more energy efficient. The
electricity from renewable sources. CCL is a tax on energy use by both business and
For 2006–2007, the RO percentage target public sectors. The levy is to encourage nondomes-
was 6.7%. It will increase each year to reach 15.4% tic electricity users to become more energy efficient
by 2015/16 and then remain at that level until the and so reduce carbon emissions. If you use 33 units
obligation ceases in 2027. In the 2006 Energy Re- or more per day for electricity or 145 kWh per day
view, the government further confirmed its com- or more for gas, CCL is applied. The levy package as
mitments to the RO, which it plans to strengthen a whole is expected to save at least 5 million tonnes
and modify by eventually extending the target to of carbon a year by 2010.
20%. The cost of the RO is met by electricity con-
sumers and is limited by a price cap. 4.3 Capital Grant Programme
The RO was designed to incentivize the most The Offshore Wind Capital Grant Pro-
economic forms of renewable generation. Since its gramme was launched by the DTI and Big Lottery
introduction it has been effective in achieving this, Fund in early 2002 to stimulate the early develop-
and it has stimulated significant development of ment of Round 1 offshore wind schemes. The 117
onshore wind, co-firing, and landfill gas. However, Million £ Scheme awarded grants of 9 million £ or
more needs to be done to achieve a step change 10 million £ via competitive tranches. The grants
in the UK’s share of its energy from renewables. provide the additional financial support required to
The government has identified the following three get early projects started and aim to allow develop-
steps for strengthening and widening the impact ers to gain experience and confidence to help reduce
of the RO: costs for subsequent projects. Progress of projects up
1. Extending RO levels to 20% (when justi- to 2006 is shown in Table 5.
fied by growth in renewable generation);
2. Amending the RO to remove risk of unan- 5.0 R, D&D activities
ticipated ROC oversupply; and
3. Adapting the RO to provide greater sup- 5.1 National R, D&D program
port to emerging technologies and less support A substantial part of the DTI’s R&D activities
for established technologies. The government’s are delivered through the Technology Programme,
preferred option for achieving this is through a which provides support to businesses in the form
“banding” system, ensuring that current ROC of grants to support research and development in
rights for existing projects and those built pri- the technology areas identified by the Technology
or to implementation of changes are preserved. Strategy Board. For the period 2005 to 2008, at least
Any changes would be introduced in 2010. 20 million £ per annum of Technology Programme
funding is expected to support research and develop-
Following the July 2006 Energy Review, the ment into renewables and low-carbon technologies.
government announced several proposals for chang- In 2006, approximately 3.6 million £ was
es to the RO. These changes will potentially provide spent on the wind program to support cost-shared
differentiated support levels to different renewables R, D&D with industry. About 2.8 million £ of this
technologies and give additional certainty on long- amount was allocated to the DOWNVInD 10-MW
term ROC prices. As described earlier, in October deep-water wind farm demonstration project.
2006 the government published a consultation doc-
ument on changes to the RO. 5.2 R&D priorities
The government believes that banding the In 2006, the Technology Programme ran two
Renewables Obligation has the potential to advance new competitions for funding in April and Novem-
emerging technologies by providing appropriate lev- ber, inviting proposals on offshore wind technology.
els of additional support without placing extra costs Specifically, the calls focused on the continued need
on consumers or taxpayers. .The outcomes of this to reduce the costs of offshore wind projects as one
and other public consultations will feed in to the En- of the key factors in improving the economics of this
ergy White Paper in May 2007. technology. Innovative collaborative R&D propos-
als were sought aimed at reducing costs in, but not
4.2 Climate Change Levy restricted to, the following areas:
The government introduced the Climate • Marine foundations and the cost of trans-
Change Levy (CCL) on 1 April 2001 to encourage porting and installation;

IEA Wind Energy 247


National Activities

Table 5 Round 1 status of offshore wind farms and Capital Grant Programme value where
awarded
Round 1 Offshore Wind Farm Capacity (MW) Status Online Grant Value (£M)
Barrow Offshore Wind Farm 90 Commissioned July 2006 10
Kentish Flats Offshore Wind Farm 90 Commissioned Nov. 2005 10
North Hoyle Offshore Wind Farm 60 Commissioned July 2004 10
Scroby Sands Offshore Wind Farm 60 Commissioned Dec. 2004 10
Burbo Offshore Wind Farm* 90 Constructing Dec. 2007 10
Inner Dowsing Offshore Wind Farm 97.2 Constructing** Dec. 2008 10
Lynn Offshore Wind Farm 97.2 Constructing** Dec. 2008 10
Gunfleet Sands Offshore Wind Farm 108 Approved Dec. 2008 9
Norfolk Offshore Wind Farm 100 Withdrawn Withdrawn Withdrawn
Ormonde 108 Approved April 2009 0
Rhyl Flats Offshore Wind Farm 100 Approved Aug. 2008 10
Robin Rigg Offshore Wind Farm (OERL) 108 Constructing** April 2009 9
Robin Rigg Offshore Wind Farm (Solway) 108 Constructing** April 2009 9
Scarweather Sands 90 Awaiting FEPA*** Dec. 2009 0
Shell Flats (three projects combined) 270 Submitted (S36) Dec. 2013 0
Teeside/Redcar 90 Submitted (TWA) April 11 0
Total 1,666.4 107
* Funded by the Big Lottery
** Construction of onshore elements started
*** Food and Environment Protection Act

• O&M costs including remote control and ects generally aim to implement significant business
monitoring solutions; change in five- to seven-years. Further details about
• Weight saving, speed of installation, per- the Technology Programme can be found at www.
formance, and reliability, recognizing that the dti.gov.uk/innovation/technologystrategy/technol-
move to larger machines offshore using ex- ogyprogramme/CR&D/page11705.html.
isting scaling-up of technology will likely
increase the machines’ weight. 5.3 R, D&D projects
To give a flavor of the R&D project portfolio
In addition, the call recognized that the in- this year, titles of R&D projects supported by the
teraction of wind turbines and radar remains a key Technology Programme during this reporting pe-
barrier to both onshore and offshore development. riod include:
Proposals were sought to mitigate this problem, in- • Finite-Element Modelling of Offshore
cluding air traffic mitigation solutions. Wind Turbine Support Structures
Projects range from small, highly focused ba- • Improved Performance of Wind Turbines
sic research aimed at establishing technical feasibility Using Fibre Optic Structural Monitoring
to applied research and experimental development • Stealth Technology for Wind Turbines
projects configured to produce technology demon- • Stealthy Wind Turbines – Addressing the
strations. Projects ideally include at least one partner Radar Issue
with defined end-user needs. Typically, a project has • A Low Cost, Safety Critical Radar
a two- to three-year duration and requires DTI sup- Absorbing Material for Wind Turbine
port in the range of 1 million £ to 2 million £. Proj- Nacelles and Towers

248 2006 Annual Report


United Kingdom

• Development of Prognostic/Health steel tower/monopile solutions, this will substan-


Management Technologies for Wind Turbines tially reduce construction and offshore installation
• Innovative High-Power Direct-Drive costs and risk, particularly for the larger turbines and
Superconducting Generator for Offshore deeper-water locations of Round 2 sites and beyond.
Wind The holistic vision includes achievable technical de-
• Competitive Concrete Towers and velopments in dynamic behavior and durability as
Foundations for Future Offshore Wind Farms; well as substantially increased structure life, which
• Cost Reduction and Life Extension of together could produce a paradigm shift in system
Offshore Wind Farms procurement, greater competitiveness in the mar-
• Mobile Wind Lidar for Offshore Wind ket, and improved sustainability and life-cycle value
Farms. management of offshore wind farms. The leading
partner is Gifford & Partners Ltd.
These projects are at various stages of the proj-
ect cycle from inception to completion. More details 5.4 Collaborative research
about three of the projects that started in 2006 are The UK participates in several research ac-
given in the following sections. tivities with other countries. The DOWNVInD
(Distant Offshore Windfarms with No Visual Im-
5.3.1 Innovative High-Power Direct-Drive pact in Deepwater) project consists of two elements.
Superconducting Generator for Offshore Wind The first is a Research and Technological Develop-
This project addresses the design of a direct- ment (RTD) project funded by the European Com-
drive superconducting generator for use in offshore mission (EC) and supported by more than a dozen
wind turbines. Such a machine will be more efficient, participants. The second element, the “demonstrator
lighter, cheaper, and more reliable than existing ma- project,” has been awarded funding from UK gov-
chines. The project focuses on the design challenges ernment authorities and the EC, and it has received
and innovation required for the rotor (which houses contributions from the two project partners. The
the superconducting field coils) and on the indus- total project budget for both elements is around 28
trialization/marinization of off-the-shelf cryogenic million £.
cooling/refrigeration equipment that will maintain Construction began 25 km off the east
the superconducting state. Significant emphasis is coast of Scotland in summer 2006. The 10-MW
being put on design for manufacture to ensure com- DOWNViND project consists of two 5-MW wind
mercial viability. The leading partner is ALSTOM turbines with a hub height of 90 m above sea level
Power Conversion Ltd. located in 44-m-deep water in the Moray Firth ad-
jacent to the Beatrice Field oil platform. By August
5.3.2 A Low Cost, Safety Critical Radar Absorbing 2006, both foundation jackets and one turbine had
Material for Wind Turbine Nacelles and Towers been installed (Figure 13). The second turbine is due
The project aims to create a low-cost radar- to be installed in July 2007. Generation from both
adsorbing material (RAM) by combining ultra- turbines is forecast for June and September 2007,
sonic flow enhancement, magnetic manipulation, respectively.
and extrusion technologies. The researchers aim to The UK continues its active involvement in
transcend the state of the art by using novel radar- international collaboration through DTI’s participa-
absorbing technologies that will be installed onto tion in the following IEA tasks:
turbine towers to radically reduce (by >50%) the
incidence of radar shadowing and ghost signals cre- Task 11: Base technology information ex-
ated by wind farms on civilian radars. The leading change
partner is Hitek Electronic Materials Ltd. Task 21: Dynamic models of wind farms for
power system studies
5.3.3 Competitive Concrete Towers and Task 23: Offshore wind energy technology
Foundations for Future Offshore Wind Farms development
The project will use innovative approaches to Task 25: Design and operation of power sys-
the design, construction, and installation of concrete tems with large amounts of wind power
towers and foundations. Compared with current

IEA Wind Energy 249


National Activities

Figure 13. DOWNVInD: The first of two RE Power 5-MW wind turbines being lifted towards
its foundation; the Beatrice platform is visible in the background.

6.0 The Next Term In terms of R&D focus, as identified in the


Technology Programme autumn 2006 call, R&D
The government is carefully considering activities will focus on areas that reduce the cost of
responses to the Energy Review consultation and offshore wind development and solutions to miti-
will set out its steps in the Energy White Paper to gate radar and aviation issues. Reducing the cost for
be published in May 2007. The proposed changes offshore projects is a key driver to achieve the eco-
to the Renewables Obligation are critical to sup- nomics required for future investment. An expected
port expansion of the renewables sector and will trend for future offshore developments is increasing
require the introduction of a bill to pass the legisla- machine capacities to 5 MW and higher.
tion. There will be a continued push to deliver the
RO targets for energy production. The government 7.0 References
will continue to help facilitate the process in such
areas as impacts on aviation, electricity networks, (1) Digest of UK Energy Statistics (DUKES),
and planning. 2006, UK Department of Trade and Industry,
For industry, there are likely to be increasing http://www.dtistats.net/energystats/dukes06.pdf,
opportunities, particularly with increasing activity Section 1.1.
offshore. In terms of the present development fun- (2) DUKES, 2006, Section 5.4.
nel, 1,034 MW are under construction and a further (3) DUKES, 2006, Table 5.2.
3,176 MW of capacity are approved but not yet un- (4) The British Transmission & Trading Ar-
der construction. The offshore Round 1 is expected rangements (BETTA) is the framework by which
to add 1,306 MW of capacity by April 2009, and the the network functions and suppliers and generators
offshore Round 2 is expected to start construction trade in Great Britain. Projects in Scotland that ap-
in 2007. Round 2 will probably begin with the 300- plied for connection ahead of the introduction of
MW Thanet Offshore Wind Farm, followed by the BETTA benefited from transitional arrangements
500-MW Greater Gabbard Wind Farm. that resulted in them being within an order by date
of application.

250 2006 Annual Report


United Kingdom

(5) The GBSO decision announcement is avail- (9) The consultation document is available on
able on the DTI Web site at http://www.dti.gov. the DTI website at http://www.dti.gov.uk/files/
uk/files/file32874.doc. file35530.pdf.
(6) The open letter is available on the DTI Web
site at http://www.dti.gov.uk/files/file35598.pdf. Authors: Mike Blanch, Mark Thomas, and Dun-
(7) The consultation document is available on can Ayling, AEA Energy & Environment; John
the DTI Web site at http://www/dti/gov/uk/files/ Overton, Department of Trade and Industry,
file35530.pdf. United Kingdom.
(8) The consultation document is available on
the DTI web site at http://www.dti.gov.uk/files/
file35593.pdf.

IEA Wind Energy 251


National Activities

252 2006 Annual Report


United States
29

1.0 Introduction Other renewables, conventional hydroelectric, and


petroleum-fired plants constitute the remaining
The U.S. wind industry maintained its glob- generation sources.
al lead for new wind energy installations in 2006
with 2,454 MW of new generating capacity. The 2.0 National objectives
new capacity brought the total national capacity to
11,575 MW (Figure 1) and put the United States in President George W. Bush launched an Ad-
third place for highest total installed capacity be- vanced Energy Initiative in 2006 that calls for the
hind Germany with 20,622 MW and Spain with accelerated development and use of advanced clean
11,615 MW. Approximately 53 new projects were energy technologies. According to the initiative,
installed in 22 states that commissioned more than areas with good wind resources have the potential
1,535 turbines in 2006. The average size of the tur- to supply up to 20% of the electricity consumption
bines installed in 2006 was 1.6 MW. of the United States. In support of the initiative,
With a 27% growth rate in 2006, wind en- the American Wind Energy Association (AWEA)
ergy was the second largest source of new power ca- is working with the U.S. Department of Energy
pacity in the country, contributing 19% of the total (DOE), the National Renewable Energy Laboratory
new capacity built. Natural gas was the largest con- (NREL), utilities, wildlife advocates, environmental
tributor with 9,000 MW of new capacity, and coal organizations, technology companies, foundations,
was the third with 600 MW. The current capacity consumer groups, and investors to evaluate credible
will generate approximately 31 million megawatt- scenarios for providing up to 20% of U.S. electric
hours per year—enough to provide power for 2.9 demand with wind power. To provide 20% of the
million U.S. homes—and displace approximately nation’s electricity supply, U.S. wind capacity would
23 million tons of carbon dioxide that would have have to increase from its current 11.6 GW to about
been emitted by traditional resources. 350 GW.
Although wind energy is the fastest-growing A goal of the DOE Wind Energy Program’s
energy technology, it still constitutes a very small Wind Powering America (WPA) project is to have
share of total U.S. generation. According to the 30 states with more than 100 MW of generating
U.S. Energy Information Administration, as of Oc- capacity by 2010. There are currently commercial
tober 2006, wind accounted for only 0.7% of total wind-power facilities in 30 states. Twenty states
generation. Coal-fired plants generate the majority have more than 50 MW, and 16 have more than
(48.5%) of the nation’s electrical power, followed 100 MW. The 5 states with the most generating
by natural gas (20.5%) and nuclear plants (19.2%). capacity are:

Table 1 Key Statistics 2006: United States


Total installed wind generation 11,575 MW
New wind generation installed 2,454 MW
Total electrical output from wind 31 TWh
Wind generation as % of national electric demand <1%
Target: NA

IEA Wind Energy 253


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Figure 1 Annual and cumulative U.S. wind energy capacity 1981 – 2006.
Source: Global Energy Concepts database prepared for U.S. DOE and AWEA.

• Texas with 2,739 MW grants and 176.5 million USD in authority for guar-
• California with 2,376 MW anteed loans in fiscal year 2006.
• Iowa with 931 MW At the close of 2006, 735 MW of offshore
• Minnesota with 895 MW wind energy projects were in the permitting pro-
• Washington with 818 MW cess and about 1,700 MW of offshore projects were
proposed in the United States. Of the total potential
3.0 Benefits to the national economy offshore projects, 1,480 MW are located in federal
waters.
The new generating capacity installed in
2006 represents an investment of almost 4 billion 3.2 Industrial development and
USD. The investment provided more than 10,000 operational experience
new jobs nationwide and 5 to 9 million USD or In 2006, General Electric (GE), Siemens, and
more in annual payments to landowners. Vestas claimed the majority of the U.S. wind turbine
manufacturing market. GE remained the dominant
3.1 Market characteristics manufacturer, claiming 47% of the market; Siemens
The market trend for consolidation among claimed 23%, Vestas 19%, Mitsubishi 5%, Suzlon
wind energy developers continued in 2006 with 4%, and Gamesa 2% (Figure 2).
several new major acquisitions, mergers, or joint de- GE Energy sales in the United States contin-
velopment transactions. Although private indepen- ued at a rapid pace in 2006 as a result of the exten-
dent power producers (IPPs) continued to dominate sion of the federal production tax credit at the end
the industry, electrical utilities expressed a greater of 2005. By the end of 2006, GE had installed more
interest in wind asset ownership. Of the total 2006 than 5,000 of its successful 1.5-MW wind turbines
wind additions, approximately 25% (615 MW) was worldwide, and the company anticipates that the to-
owned by local electrical utilities, the vast majority tal number of wind turbines operating could reach
of which are investor-owned utilities. 10,000 by the end of 2008.
Community projects (projects owned by Clipper Windpower of Carpinteria, Califor-
towns, schools, commercial customers, and farmers) nia, the newest U.S. wind turbine manufacturer,
contributed 258 MW to the total national capacity experienced significant growth in 2006 through the
in 2006. This market sector is expected to grow in sale of its 2.5-MW Liberty wind turbine. The new
2007 as a result of favorable state and federal poli- variable-speed turbine, developed with the support
cies and grants from the U.S. Department of Agri- of the DOE Wind Energy Program, incorporates a
culture (USDA) Section 9006 Grant Program. The highly innovative multiple-drive-path gearbox feed-
program provides grants, loans, and loan guarantees ing four advanced permanent-magnet generators.
for renewable energy and energy efficiency projects Clipper’s 2006 transaction announcements repre-
to farmers, ranchers, and rural small businesses. In sent firm commitments of 875 MW of turbines and
February, the USDA announced the availability more than 5,000 MW of contingent orders for de-
of 11.385 million USD in funding for competitive livery through 2011.

254 2006 Annual Report


United States

increased, on average, by over 400 USD/kW since


2001.
The data also show that project size is a fac-
tor in capital costs, with installed costs dropping as
project size increases. Finally, the data show distinct
differences in costs across regions. Higher cost re-
gions include New England, California, and the
East, while low-cost regions include Texas and the
central United States.

4.0 National incentive programs

Federal tax incentives and state Renewable


Portfolio Standards (RPS) and incentives played
important roles in the record growth experienced
Figure 2 Top five manufacturers contributing to the
U.S. market for large-scale wind turbines. in the United States in 2006. LBNL estimates that
Source: Global Energy concepts database prepared 60% of the wind capacity additions in 2006 were
for U.S. DOE and AWEA. motivated in part by state RPS requirements.

The small wind turbine market, which is 4.1 Federal incentive programs
generally defined by turbines rated at less than 100 The federal Energy Policy Act (EPAct), en-
kW, also experienced growth in 2006. To date, acted in 2005 (1), contains several provisions that
more than 430,000 small wind units are installed benefit the wind energy industry, including the ex-
worldwide, representing about 110 MW of installed tension of the federal production tax credit (PTC).
capacity. Two of the leading U.S. manufacturers of The PTC provides a 0.019-USD/kWh tax credit for
small turbines are Southwest Windpower of Flag- electricity produced by commercial wind generation
staff, Arizona, and Bergey Windpower of Norman, plants for the first 10 years of production. Project
Oklahoma. Southwest Windpower has sold almost developers and owners are the primary beneficiaries
100,000 small wind turbines. It controls nearly half of the credit, which is a production-based incentive,
the world market for small turbines, with 40% of its and equipment manufacturers benefit from an ac-
sales in the United States. The company expected tive market. In December 2006, the government ex-
to sell approximately 12,000 units in 2006. Bergey tended the tax credit through December 31, 2008.
Windpower has produced more than 4,800 1-kW In addition to the PTC, EPAct 2005 requires that
and 10-kW units to date. utility system reliability rules be developed for the
nation to be “non-discriminatory” and provides in-
centives to encourage construction of new and up-
3.3 Economic details graded transmission lines.
According to preliminary data collected by Other federal incentives currently offered
Lawrence Berkeley National Laboratory (LBNL) on include:
behalf of the DOE, capital costs for installed wind • Modified Accelerated Cost-Recover
projects in 2006 ranged from 1,150 USD/kW to Systems (MACRS) – Allows businesses to re-
2,240 USD/kW, with an average cost of roughly cover investments in wind energy property
1,480 USD/kW, up from roughly 1,260 USD/kW through depreciation deductions.
in 2005 (see Figure 3). • Renewable Energy and Energy Efficiency
Despite this recent increase, since the start Improvements Program – Provides direct
of the industry, capital costs for wind projects have loans, loan guarantees, and grants to agricul-
declined dramatically. From the 1980s to the early tural producers and rural small businesses to
2000s, capital costs dropped by approximately 2,700 purchase wind energy systems.
USD/kW. • Energy Efficiency and Renewable Energy’s
Although project costs are influenced by nu- Tribal Energy Program – Provides fi nancial
merous factors, increasing turbine costs are the larg- and technical assistance to tribes for feasibility
est contributor. Turbine prices, in particular, have studies and installations on tribal lands

IEA Wind Energy 255


National Activities

Figure 3 Wind project capital costs, 1982–2006.


Source: Lawrence Berkeley National Loboratory.

• Renewable Energy Production Incentive – of utility company investment in renewable energy


Provides annual payments of 0.015 USD/kWh technologies. In 2006, more than a dozen states
for electricity produced by new wind genera- had competitive green power markets, and more
tion facilities for the fi rst 10 years of operation than 600 utilities nationwide offered green pricing
(renewed under EPAct 2005). programs.
As an alternative to switching electricity sup-
4.2 State incentive programs pliers, both residential and nonresidential customers
The voluntary purchase of renewable or green may support the development of renewable energy
power through green power or green pricing pro- resources by purchasing renewable energy certifi-
grams has had a significant effect on wind industry cates (RECs), which represent the unique or green
growth. According to a report published by NREL attributes of electricity generated from renewable
in November 2006 (2), green power purchases to- energy–based products. Wind energy is the most
taled 8.5 billion kWh in 2005, representing a capac- commonly used resource for RECs. In 2005, total
ity equivalent of 2,500 MW of renewable energy, market sales increased by 37%. Much of this growth
61% of which was provided by wind energy. For the was supported by REC sales to nonresidential cus-
first time, the majority of the green power sales in tomers, which more than doubled during 2005. As
2005 (65%) was made to nonresidential customers. a result, commercial and institutional REC markets
The U.S. Environmental Protection Agency (EPA) now represent nearly half of total green power mar-
offers a Green Power Partnership Program to com- ket sales, surpassing sales in competitive electricity
mercial, industrial, and public sector organizations markets and utility green pricing programs.
that tracks green power purchases nationwide. In State policy mandates or Renewable Portfolio
2006, the top 25 partners purchased 4.4 billion kilo- Standards (RPS) have also had a significant effect on
watt-hours annually. Among the top purchasers are the wind industry. An RPS requires utilities to pur-
Wells Fargo & Company, 550 MWh or 42% of its chase a percentage of their overall generating capac-
total electricity consumption; Whole Foods Market, ity from renewable resources. By the end of 2006,
463 MWh, 100% of its consumption; U.S. Air Force, 21 states and the District of Columbia had adopted
457 MWh, 4% of its consumption; EPA, 330 MWh, RPS.
100% of its consumption; and Johnson & Johnson, Other state programs that provide stimulus
306 MWh, 30% of its consumption. for market growth include:
In states with competitive retail electricity • Grant programs – Grant programs offer
markets, electricity customers can often purchase support for a broad range of renewable energy
electricity generated from renewable sources by technologies; some states focus on promoting
switching to an alternative electricity supplier that one particular type of renewable energy such
offers green power. Through utility green pricing as wind technology or alternative fuels. Grants
programs, utility customers may choose to purchase are available primarily to the commercial, in-
green power for a premium to support a greater level dustrial, utility, education, and government
sectors. Some grant programs focus on re-

256 2006 Annual Report


United States

search and development, while others are the District of Columbia offered some form of net
designed to help a project achieve commercial- metering policy.
ization. For more information on state and federal in-
• Loan programs – State governments also centive programs, visit the Database for State Incen-
offer low-interest loans to assist in the pur- tives for Renewables & Efficiency at http://www.
chase of renewable energy equipment. A broad dsireusa.org/.
range of renewable energy technologies are el-
igible. In many states, loans are available to 5.0 R, D&D activities
residential, commercial, industrial, transporta-
tion, public, and nonprofit sectors. 5.1 National R, D&D efforts
• Production incentives – Usually funded by The U.S. national R, D&D efforts are guided
a small surcharge on electricity rates, produc- by the DOE Wind Energy Program. The program is
tion incentives provide project owners with concentrating on improving cost, performance, and
cash payments based on electricity production reliability of large-scale land-based technology; fa-
on a USD/kWh basis. Production incentives cilitating wind energy’s rapid market expansion by
are currently available in 17 states. anticipating and addressing potential barriers (for
• Tax incentives – Supplemental state tax example, integration of wind into the electric trans-
incentives provide an additional, typically mission system, siting, permitting, environmental
modest, stimulus for wind energy develop- issues); and investigating wind energy’s application
ment. to other areas—from offshore wind technology to
• Utility resource planning – As a result of distributed and community-owned wind projects.
the federal PTC, utilities are starting to in- The program aims to significantly increase
clude wind energy as a cost-effective resource wind energy use, thereby increasing and diversify-
in their planning efforts. Twelve major utili- ing the domestic energy supply; boosting environ-
ties in the western United States are planning mental benefits by avoiding pollutant emissions; and
more than 3,000 MW of wind additions by strengthening the nation’s infrastructure posture
2014. by increasing system reliability while reducing eco-
nomic effects of fuel price or supply disruptions.
Many states also have policies and incentives
for small wind electric systems. These incentives in- 5.1.1 Funding
clude rebates and buy-downs, production incentives, The total budget for the Wind Energy Pro-
tax incentives, and net metering. Of the incentives gram was 39.9 million USD in 2006. The program’s
offered, the rebates/buy-downs have the highest budget for FY 2007 was increased to 49.3 million
consumer value. Several states have adopted buy- USD.
down programs that levy a small charge on every
kilowatt-hour of electricity sold. The money raised 5.1.2 Large wind turbine research
is then used to buy down or subsidize the purchase The performance goal for large wind turbine
of small renewable energy systems. The subsidy or (LWT) research is to reduce the cost of electricity
rebate may be as much as 50% of the cost of a small from large land-based wind systems in Class 4 winds
wind turbine. The rebates become even more effec- (5.8 m/s at a height of 10 m) to 0.036 USD/kWh by
tive when combined with low-interest loans and net 2012 and to 0.07 USD/kWh for offshore systems in
metering programs. Class 6 (6.7 m/s at a height of 10 m) winds by 2014
Under net metering policies, electric custom- (3). Wind turbines are currently capable of produc-
ers who install their own grid-connected wind tur- ing electricity costing between 0.04 USD/kWh and
bines are allowed to interconnect their turbines on 0.09 USD/kWh in the Class 4 wind regimes that
a reverse-the-meter basis with a periodic load offset. are broadly available across the United States, de-
The customer is billed only for the net electricity pending on many factors, including project financial
consumed over the entire billing period. In most structure. The strategic goal of the LWT activity
states with net metering, excess generation beyond is to increase the commercial viability and deploy-
what the customer uses to offset consumption dur- ment of wind energy by improving the reliability
ing the billing period is sold to the utility at avoided and performance of existing technology while set-
cost or granted back to the utility without payment ting the stage for future wind technologies advanced
to the customer. As of January 2007, 40 states and

IEA Wind Energy 257


National Activities

through applied research and market assessment. working on an initiative to evaluate existing off-
One program project that started to demon- shore technology and its potential for long-term cost
strate commercial viability in 2006 is the new 2.5- reductions. This effort, to be completed in 2009,
MW turbine (Figure 4) manufactured by Clipper will focus on developing a mature technical, finan-
Windpower. In 2006, the program completed per- cial, and regulatory basis for a U.S. offshore wind
formance and acoustic tests on Clipper’s 2.5-MW market.
prototype installed in Wyoming. This turbine, pro- In another 2006 offshore project, NREL de-
duced in partnership with DOE, is already proving veloped and verified a fully coupled simulator for
to be a commercial success. offshore turbines (5). The simulator addresses the
The program also engaged in several partner- limitations of previous frequency and time domain
ships to improve the performance of system compo- studies and can perform an integrated loads analysis.
nents in 2006. NREL and Northern Power Systems It is universal enough to analyze a variety of wind
(NPS) completed a very successful partnership to turbine, support platform, and mooring system con-
produce a modular, highly efficient power elec- figurations, including floating systems. NREL shares
tronics package that can be scaled for use in a wide much of its offshore modeling work on an interna-
range of wind turbines, from small to multi-mega- tional level through the program’s participation in
watt systems. According to the company, the new the International Energy Agency Task 23, Offshore
converter improves wind turbine reliability, energy Wind Energy Technology and Deployment. The
capture, and grid performance, and it was chosen by objective of this Task 23 activity is to compare and
the American Wind Energy Association for its 2006 validate the existing computer models for analyzing
Technical Achievement Award. Tests completed on and evaluating offshore wind turbines on various
both the converter and the NPS 1.5-MW direct- types of foundations.
drive generator developed under the WindPACT
drivetrain studies (4) demonstrated high-quality 5.1.3 Distributed wind technology research
power output. The program is expected to achieve the per-
Global Energy Concepts (GEC) fabricated a formance goal for its distributed (small) wind tech-
1.5-MW single-stage drivetrain with a planetary nology research to produce electricity at between
gearbox and a medium-speed (190-rpm) perma- 0.10 USD/kWh and 0.15 USD/kWh in a Class 3
nent-magnet generator. The simple gearbox design resource (5.32 m/s at 10 m) in 2007. The program
and moderate-sized generator show potential for re- is refocusing its efforts on increasing the market for
ducing tower-head weight and drivetrain costs. The distributed wind systems to meet a growing demand
company completed initial testing of this drivetrain for community-owned projects and local power
at NREL’s 2.5-MW dynamometer test facility. The generation.
generator is currently being upgraded, and a second To meet the 2007 goal, the Wind Energy Pro-
phase of testing is planned for 2007. gram continued working with several small wind
Genesis Corporation is testing a new tooth industry partners in 2006 to develop and test new
form for gearboxes that promises major improve- systems and components. Working with Southwest
ments in power density while reducing the costs Windpower, researchers at NREL’s National Wind
of these devices. The company completed the first Technology Center (NWTC) conducted perfor-
round of testing with positive results and is now mance optimization and blade-fatigue tests on the
working to refine its design. company’s new Skystream wind turbine. The 1.8-
Knight & Carver produced the first in a se- kW turbine, developed in partnership with DOE,
ries of wind turbine blades. Called the STAR for won the Best of What’s New Award from Popular
its sweep-twist adaptive rotor, the 27.4-m blade is Science magazine and was listed as a best invention
curved to relieve pressure on both the blade and the for 2006 by Time magazine. The new turbine has
turbine. Manufactured at Knight & Carver’s blade fully integrated electrical components, costs less, is
division in San Diego, California, the new blade is easier to install, and operates more quietly.
designed to passively reduce loads, thereby allowing Northern Power Systems is working with the
a larger, more productive rotor. This concept also program to reconfigure its 100-kW cold-weather
shows potential for significant cost and manufactur- turbine for agricultural and community applications
ing advantages. in temperate climates. The company began building
As part of an effort to investigate the poten- the machine in 2006 and will start testing the proto-
tial for offshore development, the program began type at the NWTC in 2007. The new machine will

258 2006 Annual Report


United States

Figure 4 The 2.5-MW Liberty wind turbine developed by Clipper under the
DOE Wind Energy Program is proving to be a commercial success.

cost less to produce, and it shows good potential for AC converter. This new component has higher con-
filling a market gap in mid-size wind turbines. version efficiency and it produces excellent power
As part of its small wind components research, quality, uses fewer components, and reduces cost.
the program worked with Windward Engineering
to conduct tests on its 3.75-kW Endurance wind 5.1.4 Systems integration and transmission research
turbine developed to demonstrate a furling control The systems integration activities work to
system. Windward’s machine is currently being test- facilitate the adoption of equitable grid access and
ed at the NWTC to International Electrotechnical operational rules for wind in all major regional wind
Commission (IEC) standards for duration, power markets and to ensure that wind’s needs are consid-
performance, and acoustics. ered in regional transmission planning processes.
Another component project completed in The goal of this activity is to have established by
2006 was the Princeton Power Systems 50-kW AC- 2012 complete program activities addressing elec-

IEA Wind Energy 259


National Activities

tric power market rules, interconnection impacts,


operating strategies, and system planning needed
for wind energy to compete without disadvantage to
meet U.S. energy needs.
In 2006, NREL researchers continued to
gather the data needed to predict the physical im-
pacts and costs of wind generation on grid opera-
tions and to identify transmission constraints. A
paper presented by NREL at the European Wind
Energy Conference in March 2006 (6) summarized
the results of recent studies conducted by a variety of
utilities in the United States. The results showed that
the additional operating costs of wind energy would
be moderate at the large penetration levels expected
in the next five to ten years and that large diverse
balancing areas with robust transmission tend to re-
duce wind’s impact and ancillary service cost.
Another study published by NREL in 2006 (7)
analyzes system and wind-power data recorded by
the Western Farmers Electric Cooperative (WFEC)
and evaluates the effects of wind energy on utility
system operations. This study showed that at a 6%
penetration level (based on WFEC peak load; 16%
penetration level during low-load periods), the sys-
tem operations are hardly impacted by wind-power
variations. The WFEC continued to meet the con-
trol performance standards, and the data show that
fluctuations of control-area load and market condi-
tions have much more influence on the system area
control error.
The Wind Energy Program is also working
with industry to improve transmission access, de-
velop new transmission, and reduce the impacts of
wind integration. Two of the studies conducted in
2006 examined the impacts of wind energy at the
20% integration level. The Minnesota Wind Inte-
gration Study (8) completed in November examines
the impacts of wind variability on power system
operation in the Midwest, and a study with Xcel
Energy in Colorado (9) assesses the technical and
economic impacts of adding a significant amount of
wind generation to Xcel’s energy portfolio. Figure 5 The 1.8-kW Skystream manufactured by
In addition, DOE is working with the West- Southwest Windpower has fully integrated electri-
ern Area Governors Association (WGA) and the cal components.
Clean and Diversified Energy Advisory Committee
(CDEAC) to help achieve the WGA’s goal of 30 GW submitted a report (10) to WGA containing a series
of clean power by 2015. In 2006, the CDEAC Wind of recommendations designed to meet the goals of
Task Force developed a set of supply curves based the 30-GW initiative, many of which are directed at
on extensive wind-map GIS data paired with GIS improving transmission.
transmission data. The findings of the study indicate
the wind resource in the WGA region is more than 5.1.5 Technology acceptance research
enough to economically achieve the WGA 30-GW The goal of the program’s technology accep-
target for clean energy development. CDEAC also tance research is to identify and remove barriers that

260 2006 Annual Report


United States

inhibit wind energy development. To mitigate the have agreed to continue to work together with ra-
barriers to wind energy growth, the program’s Wind dar experts from the United States and the United
Powering America (WPA) project works on a re- Kingdom to develop mitigation strategies.
gional level with federal agencies, state and local en- The Wind Energy Program also works to
ergy offices, Native American agencies, rural agen- resolve environmental issues that may hinder the
cies, electrical cooperatives, and utilities, providing deployment of wind energy technologies. In 2006,
information about the technology and the benefits the program supported two collaborative efforts,
of wind energy (11). The goal of this activity is for 30 the Grassland Shrub Steppe Species Collaborative,
states to have 100 MW of wind installed by 2010. By a four-year effort to study wind turbines in prairie
the end of 2006, 16 states had more than 100 MW chicken habitat in Kansas, and the Bat and Wind
of installed capacity. Energy Collaborative, which investigates the inter-
To achieve its goal, WPA supports the for- action of bats and wind turbines. In addition, the
mation of state wind working groups, providing NWCC hosted its sixth Wildlife Research Meeting
stakeholders with timely information on the current in Texas in November. The purpose of the meeting
state of wind technology, economics, state wind re- was to bring participants up to date on research be-
sources, economic development impacts, and policy ing conducted to understand the interaction of birds,
options/issues. Group members include landown- bats, and other wildlife with wind energy develop-
ers and agricultural-sector representatives, utilities ment; examine what has been learned about ways
and regulators, colleges and universities, advocacy to minimize or mitigate wind energy’s impacts on
groups, and state and local officials. In 2006, WPA wildlife; and identify gaps in knowledge and re-
launched three new state wind working groups in search needs.
Alaska, Georgia, and Indiana, bringing the total
number of state wind working groups to 29. WPA 5.1.6 Collaborative research
also supported events in 11 states and convened its In addition to working with industry part-
fifth annual All-States Summit in Pittsburgh, Penn- ners, universities, and special-interest groups, DOE
sylvania, in June. The summit provided participants supports the IEA Wind Energy agreement by being
with an opportunity to share strategies and lessons an active member of its executive committee and
learned and to visit with experts on topics that in- by providing operating agents for several IEA tasks.
cluded avian and wildlife issues, siting, transmission, The United States participates in the following five
community wind, small wind, Native American tasks, is the operating agent for three of the tasks,
projects, operating impacts, utility myths, regula- and provided technical experts for the Topical Ex-
tors, radar, interconnection, and wind resources and pert meetings held under Task 11, Base Technology
mapping. Information Exchange.
In another effort to facilitate deployment, the Task 20: HAWT Aerodynamics and Models
program worked with the AWEA and the National from Wind Tunnel Measurements – The objective
Wind Coordinating Committee (NWCC) to de- of Task 20 is to increase understanding of the aero-
velop solutions to the radar issues. In 2006, issues dynamics of horizontal-axis wind turbines by using
related to the interaction between wind power and data from a full-scale wind tunnel experiment con-
radar affected more than 1,000 MW of planned in- ducted in 2000. The United States is the operating
stallations. These issues gained national attention agent for this task. In 2006, task participants contin-
in 2005 when a few radar operations in the United ued research activities previously initiated, and the
States were interrupted by wind turbine interfer- results were presented and discussed at the Task 20
ence. Interference occurs when radar signals are Annual Progress Meeting hosted by Professor Peter
reflected back by wind turbines, causing clutter on Schaffarczyk at the Kiel University of Applied Sci-
the radar screens. In July, more than one hundred ences April 25–27, 2006.
experts, including representatives from AWEA, Task 21: Dynamic Models of Wind Farms
DOE, the Department of Defense, and the Federal for Power Systems Studies – The purpose of Task
Aviation Administration attended a Wind Power 21 is to coordinate the development and validation
and Radar Issue Forum briefing convened by the of wind farm models that are suitable for evaluating
NWCC to discuss the influence of wind energy on power system dynamics and transient stability. In
aviation radar and possible mitigation strategies (12). 2006, the United States completed the validation of
The collaboration led to the eventual release of 950 a model for a small wind farm (four 180-kW wind
MW of the projects put on hold, and the agencies turbines) in Alsvik, Sweden, using data provided by

IEA Wind Energy 261


National Activities

task participants. Results of the validation were sub- lation, load following, ramping) at 100-MW
mitted to the IEA and will be published with the or 200-MW penetration levels. At 500 MW,
task reports. some of these impacts became noticeably larg-
Task 23: Offshore Wind Energy Technology er, and they were further magnified at the
and Deployment – The purpose of Task 23 is to give 1,000-MW penetration level. At penetration
participants an overview of the technical and en- levels up to about 15% of peak control-area
vironmental assessment challenges encountered in load, wind generation would have quantifiable
offshore applications and to help them understand but still modest impacts on the characteristics
the areas of further R&D needed. As one of its oper- of the control-area demand.
ating agents, the United States supports this task by • Mid-Columbia River Study: Grant County
leading a research effort in wind turbine technolo- Public Utility District – The goals of this
gies for applications in water deeper than 30 m. In study, initiated in 2004, are to develop an un-
2005, participants formed a working group named derstanding of the impacts and costs of Grant
Offshore Code Comparison Collaboration (OC3) County’s current efforts at integrating wind
to focus on coupled turbine/substructure dynamic and hydropower and to assess the potential
modeling. In 2006, U.S. OC3 participants com- for future expansion of wind integration. This
pleted the development of dynamics models for an project progressed significantly in 2006 with
offshore wind turbine with monopile support struc- the completion of the statistical analysis for
ture. They made basic model-to-model comparisons the 2004 study year. Results indicated that
of the wind-inflow, wave kinematics, and wind tur- the impact of wind on system regulation was
bine response. They are currently focusing on com- very small but was more significant for load
parisons of the monopile geotechnical response and following and meeting system hydrological
are defining a tripod support structure to be used in constraints. Two important conclusions from
the next phase of the project. The code comparison the load-following results were that the system
work has established a procedure and database that already deals with a significant amount of vari-
can be used for future code verification activities and ability and appears to have sufficient physical
analyst training exercises. In addition, the EU-inte- resources available, but that the ability to han-
grated UpWind research program has adopted the dle the modest increase in overall variability
NREL offshore 5-MW baseline wind turbine mod- must be dealt with in the day-ahead planning
el, which is used in the OC3 project as its reference operations to ensure that system flow and reli-
wind turbine. The model will be used as a reference ability constraints are met. The need to study
by all UpWind Work Package teams to quantify the the system with hydrological constraints has
benefits of advanced wind energy technology. moved the focus of the study to the 2006 study
Task 24: Integration of Wind and Hydro- year, from which sufficient data is available to
power Systems – The primary purposes of Task 24 allow addressing the questions surrounding
are to conduct co-operative research in the areas of the impact of wind on meeting system flow
generation, transmission, and economics of integrat- constraints.
ing wind and hydropower systems and to provide a • Lower Colorado River: Arizona Power
forum for information exchange. In addition to be- Authority (APA) – The purpose of this study,
ing operating agent for this task, the United States is initiated in 2005, is to provide APA an op-
sharing the following three case studies that address portunity to investigate the feasibility of
each area of research. integrating wind energy resources with APA’s
federal allocation of hydroelectric power
• Missouri River Wind Integration Study produced at Hoover Dam. There are two long-
– The purpose of this project is to assess term goals: 1) to develop a template to assist
the impact of integrating wind power with with future integration of renewable energy
the Missouri River hydropower genera- resources into the present or future genera-
tion resources on the Western Area Power tion resource pool and 2) to actually develop
Administration (WAPA) control-area opera- the resources identified in this study as feasi-
tions in the Upper Great Plains Region. The ble. There are three major components of this
main conclusion of the study was that wind project: developing realistic wind generation
has little impact on the various metrics (regu- scenarios, assessing the impacts of integrating

262 2006 Annual Report


United States

this wind into APA’s operations, and assessing 6.0 The Next Term
the related hydropower and hydrological im-
pacts and issues. Significant progress was made AWEA, DOE, and NREL have formed a
on the wind-power scenarios and power pro- collaborative with 75 participating companies and
duction profi les with the initiation of a wind organizations to evaluate credible scenarios for pro-
modeling project with 3Tier Environmental viding 20% of U.S. electric demand with wind. To
Forecast Group. The system and hydro impact support this high-penetration vision, the program
aspects of the project also progressed via a col- will focus on four basic areas:
laboration with an Arizona utility and work 1. Improve reliability and performance of
with the U.S. Bureau of Reclamation and turbine technology
WAPA, and the project stands a good chance 2. Reduce barriers to wind project develop-
of completion in 2007. ment
3. Enhance critical energy infrastructure
In addition to the effort put forth on these 4. Advance national and state policies in sup-
case study projects, the United States hosted a Web port of wind.
meeting for the task members in June 2006 and or-
ganized and attended an R&D meeting in Tasma- The program’s future R, D&D efforts will
nia, Australia, hosted by Hydro Tasmania. pursue three development paths: land-based, dis-
Task 25: Power System Operation with Large tributed, and emerging applications. The land-based
Amounts of Wind Power – The goal of this task is development path, which is an important focus of
to provide information to facilitate the highest eco- the current Wind Energy Program, is expected to
nomically feasible wind energy penetration within result in cost-competitive, highly reliable 2-MW
electricity power systems worldwide. The task sup- to 5-MW turbine technology. It will also work to-
ports this goal by analyzing and further developing ward the high-penetration scenario by increasing its
the methodology to assess the impact of wind power outreach efforts to reduce barriers, investigating the
on power systems with an emphasis on technical op- potential for increasing transmissions and making
eration. As its contribution to this effort, the United it more accessible, and advancing national and state
States is reviewing U.S. studies in progress and re- policies in support of wind.
cently completed, which include the following:
• A wind integration study by Xcel Energy The distributed wind development path will
and the Minnesota Department of Commerce investigate technology options such as off-grid water
on wind resource in the upper Midwest (13) pumping for crop irrigation, residential-scale wind
examined 20% and 25% penetration scenari- turbines, community wind, and hybrid wind/diesel
os and found that large market areas and broad applications, which show great potential for engag-
wind geographic variability reduce the cost of ing local populations in addressing America’s energy
integration. future. Community projects and larger distributed
• Xcel Colorado Study has published re- wind applications require turbines that range in size
sults for 10% and 15% penetration scenarios from 100 kW to 1 MW; because these are not cur-
(14) and is currently working on a scenario for rently available in the United States, the program
20% penetration. Interesting features of these will consider future activities to help develop tech-
studies include the examination of the use of nologies for this market.
expanded natural gas storage and cycling of The emerging-applications path leads toward
pumped hydro facilities to mitigate incremen- the design of wind technology tailored for applica-
tal system variability due to wind. tions such as offshore installations in deeper water,
• A study on wind variability statistics and hydrogen production, the production and delivery
grid operational issues due to wind began in of clean water, and integration with other energy
2006 and should be fi nished in 2007. technologies (for example, hydropower). The huge
offshore wind resource provides a great opportunity
The U.S. also hosted the Task 25 meeting in for the production of power that is close to load cen-
Oklahoma City, Oklahoma, in association with the ters and yet out of public sight and with low environ-
Utility Wind Interest Group annual meeting in No- mental impacts. This opportunity can be realized if
vember 2006. the resouce can be developed at a competitive cost

IEA Wind Energy 263


National Activities

and with acceptable operational risk. Hydrogen pro- (6) Parsons, B., Milligan, M., Smith, J. C., De-
duction offers an opportunity for wind to provide Meo, E., Oakleaf, B., Wolf, K., Schuerger, M., Za-
low-cost, clean energy for the transportation sector. vadil, R., Ahlstrom, M., and Nakafuji, D. Y. (2006).
Finally, as the U.S. population grows, it places Grid Impacts of Wind Power Variability: Recent As-
greater and greater demand on water supplies, waste- sessments from a Variety of Utilities in the United
water services, and the electricity needed to power States. Preprint. 16 pp., NREL Report CP-500-
the growing water services infrastructure. Water 39955.
is also a critical resource for thermoelectric power (7) Wan, Y., and Liao, J. R. (2006). Analyses of
plants. Water is quickly becoming a critical issue in Wind Energy Impact on WFEC System Operations.
America’s West, providing an opportunity for wind Preprint. 12 pp., NREL Report JA-500-39583.
technologies both on and off the grid. Wind offers (8) Minnesota Wind Integration Studies (2006).
an energy source that uses limited water when com- www.state.mn.us/cgi-bin/portal/mn/jsp/content.
pared to thermoelectric generation, and it can play do?contentid=536904447&contenttype=EDITOR
a role in supplying energy for municipal water sup- IAL&hpage=true&agency=Commerce.
plies and process. (9) Zavadil, R. M. (2006). Wind Integration
All of these applications present new chal- Study for Public Service Company of Colorado. En-
lenges to the wind community, and cost and infra- erNex Corporation for Xcel Energy, May, Denver,
structure barriers are expected to be significant. The CO. www.xcelenergy.com/docs/corpcomm/PS-
program’s vision is that this evolution pathway will CoWindIntegStudy.pdf.
begin to have an impact on the marketplace in the (10) Western Governors’ Association (2006).
post-2020 time frame. Wind Task Force Report www.westgov.org/wga/
initiatives/cdeac/Wind-full.pdf.
References and notes: (11) U.S. Department of Energy (2007). Wind
(1) U.S. Department of Energy (2005). Energy Powering America FY06 Activities Summary.
Policy Act 2005. www.energy.gov/about/EPAct. www.nrel.gov/docs/fy07osti/40660.pdf.
htm. (12) National Wind Coordinating Committee
(2) Bird, L., and Swezey, B. (2006). Green Power (2006). Wind Power and Radar Issue Forum Brief,
Marketing in the United States: A Status Report July 27, Reno, Nevada. www.nationalwind.org/
(Ninth Edition). 60 pp. NREL Report TP-640- events/business/37/issuebrief.pdf
40904. (13) EnerNex Corp. and Windlogics Inc. for
(3) Goals using cost of energy are tracked to a Xcel Energy and the Minnesota Department of
fixed technology baseline that reflects a set of stan- Commerce (2004). Characterization of the Wind
dard financial and technology assumptions for each Resource in the Upper Midwest, Wind Integra-
technology (land-based, offshore, and distributed tion Study—Task 1. Xcel Energy and the Minnesota
wind technologies). Cost of energy targets differs Department of Commerce, St. Paul, September 10.
from actual market conditions, as baseline technol- Available at www.state.mn.us/portal/mn/jsp/con-
ogy assumptions do not include such factors as the tent.do?contentid=536904449&contenttype=ED
on-and-off nature of the production tax credit that ITORIAL&template=&subchannel=null&sc2=n
leads to turbine demand spikes, changing financial ull&agency=Commerce. Accessed November 21,
variables, fluctuating commodity prices and curren- 2006.
cy exchange rates, and changes in expected equip- (14) Zavadil, R. M. (2006). Wind Integration
ment life. Study for Public Service Company of Colorado. En-
(4) NREL’s WindPACT and large wind turbine ernex Corporation for Xcel Energy, May, Denver,
studies can be downloaded from www.nrel.gov/ CO. www.xcelenergy.com/docs/corpcomm/PS-
wind/advanced_technology.html and www.nrel. CoWindIntegStudy.pdf. Accessed November 17,
gov/wind/publications.html. 2006.
(5) Jonkman, J. M., and Buhl, M. L. Jr. (2007).
Development and Verification of a Fully Coupled Author: Kathleen O’Dell, NREL, United States.
Simulator for Offshore Wind Turbines. Preprint. 28
pp., NREL Report CP-500-40979, www.nrel.gov/
docs/fy07osti/40979.pdf.

264 2006 Annual Report


IEA Wind Energy
Appendix A

Attendees of the 58th Executive Committee in Adelaide, Australia

265
Appendix B
IEA WIND Simone LALANDE
EXECUTIVE COMMITTEE 2006 Natural Resources Canada

[for current contact information, visit www. DENMARK


ieawind.org Contact List] Member
Lene NIELSEN
CHAIR (2006-2007) Ministry of Transport and Energy
Ana ESTANQUEIRO Danish Energy Authority
INETI – Departamento de Energias Renováveis
Alternate Member
SECRETARY Jørgen K. LEMMING
Patricia WEIS-TAYLOR Wind Energy Department
PWT Communications Risoe National Laboratory
5191 Ellsworth Place
BOULDER, CO 80303 EUROPEAN COMMISSION
UNITED STATES Member
Tel/fax: +1 303 545 2068 Thierry LANGLOIS d’ESTAINTOT
Email: [email protected] European Commission
DG Research
VICE CHAIRS
Morel OPRISAN EUROPEAN WIND ENERGY
Natural Resources Canada ASSOCIATION
CANADA Member
Christian KJAER
Brian SMITH European Wind Energy Association
National Renewable Energy Laboratory
UNITED STATES Alternate Members
Bruce DOUGLAS
MEMBERS and ALTERNATE MEMBERS European Wind Energy Association

AUSTRALIA Isabel BLANCO


Member European Wind Energy Association
Dominique LA FONTAINE
Australian Wind Energy Association Frans VANHULLE
European Wind Energy Association
AUSTRIA
Member FINLAND
Hans-Günther SCHWARZ Member
BMVIT – III/13 (Energie-und Mauri M. MARJANIEMI
Umwelttechnologien) Cygnaeuksenkatu 1

CANADA Alternate Members


Member Esa PELTOLA
Morel OPRISAN Technical Research Center of Finland VTT
Natural Resources Canada
Hannele HOLTTINEN
Alternate Member Technical Research Center of Finland VTT
Antoine LACROIX
Natural Resources Canada

IEA Wind Energy 266


Appendix B

GERMANY REPUBLIC of KOREA


Member Member
Ralf CHRISTMANN Kijune KIM
Federal Ministry for the Environment, Nature New and Renewable Energy Team
Conservation and Nuclear Safety Ministry of Commerce, Industry, and Energy
Division Z III 5, Research and Development in the (MOCIE)
Field of Renewable
Alternate Member
Alternate ChinWha CHUNG
Joachim KUTSCHER Pohang Wind Energy Research Center
Forschungszentrum Jülich GmbH
MEXICO
GREECE Member
Member Marco A. BORJA
Pantelis VIONIS Instituto de Investigaciones Electricas
C.R.E.S.
NETHERLANDS
IRELAND Member
Member Imar O. Doornbos
John MCCANN Ministerie van Economische Zaken
Sustainable Energy Ireland
Alternate Member
Alternate Member Jaap ’t HOOFT
Morgan BAZILIAN SENTER/NOVEM
Sustainable Energy Ireland
NORWAY
ITALY Member
Member Knut HOFSTAD
Claudio CASALE Norwegian Water Resources and Energy
CESI RICERCA S.p.A. Directorate (NVE)

Member Member
Luciano PIRAZZI Viggo IVERSEN
ENEA Casaccia Enova SF

Alternate Member PORTUGAL


Alberto ARENA Member
ENEA Casaccia Aan ESTANQUEIRO
INETI – Departamento de Energias Renováveis
JAPAN
Member Alternate Member
Yoshiro OWADANO Alvaro RODRIGUES
Energy Technology Research Institute FEUP – Faculdade de Engenharia da
National Institute of Advanced Industrial Science
and Technology (AIST) SPAIN
Member
Alternate Members Enrique SORIA
Hikaru MATSUMIYA CIEMAT
AIST Departamento de Energias Renovables

Tetsuya KOGAKI
AIST

IEA Wind Energy 267


Appendix B

Alternate Member Task 19 Wind Energy in Cold Climates


Ignacio Cruz Esa PELTOLA
CIEMAT VTT Processes, Finland
Departamento de Energias Renovables
Task 20 HAWT Aerodynamics and Models from
SWEDEN Wind Tunnel Measurements
Member Scott SCHRECK
Anders BJÖRCK National Renewable Energy Laboratory, USA
Swedish National Energy Agency
Task 21 Dynamic Models of
Alternate Member Wind Farms for Power System Studies
Kenneth AVERSTAD John Olav TANDE
Vattenfall AB Sintef Energy Research, Norway

SWITZERLAND Task 23 Offshore Wind Energy


Member Technology Development
Markus GEISSMANN Jørgen LEMMING
Swiss federal office of energy Wind Energy Dept.
Riso National Laboratory, Denmark
Alternate Members
Robert HORBATY Walt MUSIAL
Enco AG National Wind Technology Center
National Renewable Energy Laboratory, USA
Reto RIGASSI
Eicher + Pauli AG Sandy BUTTERFIELD
National Renewable Energy Laboratory, USA
UNITED KINGDOM
Member Task 24 Integration of Wind
John OVERTON and Hydropower Systems
Department of Trade & Industry Thomas L. ACKER
Northern Arizona University and NREL, USA
UNITED STATES
Member Task 25 Design and Operation of Power Systems
Stan CALVERT with Large Amounts of Wind Power
Wind and Hydro Power Technologies Hannele HOLTTINEN
United States Department of Energy Technical Research Center of Finland VTT

Alternate Members INTERNATIONAL ENERGY AGENCY


Robert W. THRESHER Nobuyuki HARA
National Renewable Energy Laboratory International Energy Agency
Renewable Energy Unit, Paris, France
Brian SMITH
National Renewable Energy Laboratory

OPERATING AGENT
REPRESENTATIVES

Task 11 Base Technology Information Exchange


Sven-Erik THOR
Vattenfall, Sweden

268 2006 Annual Report


Appendix C

Currency Conversion Rates IEA Wind Annual Report 2006


Country Currency 1€ 1 USD
Australia AUD 1.674 1.268
Austria Euro 1.000 0.758
Canada CAD 1.538 1.165
Denmark DKK 7.454 5.648
Finland Euro 1.000 0.758
Germany Euro 1.000 0.758
Greece Euro 1.000 0.758
Ireland Euro 1.000 0.758
Italy Euro 1.000 0.758
Japan JPY 157.071 119.020
Korea KRW 1227.321 930.000
Mexico MXP 14.252 10.800
Netherlands Euro 1.000 0.758
Norway NOK 8.220 6.229
Portugal Euro 1.000 0.758
Spain Euro 1.000 0.758
Sweden SEK 9.019 6.834
Switzerland CHF 1.609 1.219
United Kingdom GBP 0.674 0.511
United States USD 1.320 1.000
Source: Federal Reserve Bank of New York (www.x-rates.com)
30 December 2006

IEA Wind Energy 269


Appendix D
B

Glossary of terms and abbreviations.

AUD Australian dollar ExCo Executive Committee


of IEA Wind
CEN/
CENELEC European Committee for FY fiscal year
Standardization/European
Committee for Electrotechnical GEF Global Environment Facility
Standardization (the original
language is French); GHG greenhouse gas
similar to ISO/IEC
GW gigawatts
CHP combined heating and power or
cogeneration of heat and power GWh gigawatt hour

CIGRE International Council on HAWT horizontal axis wind turbine


Large Electric Systems
hydro hydroelectric power
COD Concerted action on Offshore
Deployment, an EU project IEA International Energy Agency
with participating countries
Netherlands, United Kingdom, IEC International Electro-
Germany, Denmark, Sweden, Technical Commission
Ireland, Belgium, and Poland
that compares and shares IEEE Institute of Electrical and
information on nontechnical Electronics Engineers
aspects of offshore wind farms
IPP independent power producer
COE cost of energy
ISO international standards
DKK Danish Kroner organization

DFIG doubly fed induction IT information technology; Italy


generator
kW kilowatt
DG distributed generation
kWh kilowatt hour
DNV certifying organization
(Danish) £ United Kingdom pound

DSM Demand-side management m meter

EC European Commission m a.g. meters above ground

EEZ Exclusive Economic Zone m.a.s.l. meters above sea level

EIA Environmental Mtoe million tonnes of oil


impact assessment equivalent

EU European Union MW megawatt

IEA Wind Energy 270


Appendix D

MWh megawatt hour RPS renewables portfolio standard

m/s meters per second S.A. Sociedad Anonyma

NA not applicable tCO2-e per


capita tonnes of carbon dioxide
NDA no data available emissions per person

NEDO New Energy and Indus- TNO transmission network


trial Technology Develop- operator
ment Organization
TSO transmission system operators
NGO non-governmental
organizations TW terawatt

O&M operations and maintenance TWh terawatt hour

pdf portable document format UK United Kingdom

PJ peta joule UN United Nations


UNDP United Nations
PSO Public Service Obligation Development Programme

PV photovoltaics or solar cells U.S. United States

R&D research and development USD U.S. dollar

R, D&D research, development, VAWT vertical axis wind turbine


and deployment wind index describes the energy in the
wind for the year, com-
RE renewable energy pared with a normal year
RES renewable energy systems
WT wind turbine
repowering taking down old turbines at a
site and installing newer ones yr year
with more generating capacity

IEA Wind Energy 271


PRODUCTION CREDITS

Technical Editors
Patricia Weis-Taylor
Linda Bevard
Amber Taylor

Cover Design, Document Layout, and Computer Graphics


Rick Hinrichs

Produced for IEA Wind by

PWT Communications
5191 Ellsworth Place
Boulder, Colorado 80303
USA
http://www.pwtcommunications.com

Printed by
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ISBN 0-9786383-1-x

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