Offshore wind in Europe seen as growing investment sector

The Offshore wind industry in parts of Europe is set to surge with a massive amount of investment going into the sector as most countries are on track to meet 2020 targets.

The number of new onshore wind installations fell by 14% in the European Union in 2010 from a year earlier while windmills at sea surged more than a half, according to a new report from the European Wind Energy Association (EWEA).

Offshore wind power installations rose 51% to 883 megawatts in 2010 as new land based turbines declined and Europe’s Energy Commission said the bloc’s capital investment in wind, solar and biofuels needs to double to €70 billion a year to ensure it meets its goal to derive 20% of energy from renewables in 2020.

The European Union generated about 18% of its electricity from renewables in 2010 compared with a non-binding target of 21%, while 5.1% of transportation fuels used was renewable compared with a 5.75% goal, the commission said.

Even so, if members follow national plans submitted last year, they’ll meet binding 2020 targets, it said.  ‘We have to invest much more in renewable energy and we need smart, cost effective financing. If member states work together and produce renewable energy where it costs less, companies and consumers and the tax payer will benefit from this,’ said Energy Commissioner Guenther Oettinger.

Collectively, the European Union will exceed its target of deriving 20% of total of energy consumption from renewable sources in the next ten years, according to the EWEA. Some 15 states, including Bulgaria, Spain, Greece and Hungary, will surpass their national targets by the end of this decade, while ten are on track to meet their objections. But two countries, Luxemburg and Italy, will not be able to reach their renewable aims without using the co-operation mechanisms.

Scotland is leading the way and around £30 billion could be invested in Scotland’s offshore wind industry, creating thousands of jobs, according to First Minister Alex Salmond. He told the Offshore Wind Conference in Aberdeen, that the sector had the potential to become a vital part of Scotland’s economy.

Spanish firm Gamesa has announced it wants to create nearly 200 jobs in Dundee by establishing a wind turbine manufacturing and maintenance plant but it is hoped this may be the first of a series of companies to invest in the area which is regarded as being in prime position to capitalise on the growth in offshore wind energy because of its proximity to North Sea sites chosen for possible wind farm development.

‘Offshore wind offers huge economic rewards to Scotland with an expected £30 billion of investment planned over the next 10 years. Scotland has an added advantage of more than 40 years’ expertise in the oil and gas sector,’ said Salmond.

‘Clearly there remain challenges ahead but it is clear Scotland has the expertise, the ambition and the momentum to build an offshore wind industry that is a sustainable and integral part of Scotland’s economic landscape,’ he added.