Professional Documents
Culture Documents
WIND ENERGY
A N N U A L R E P O RT
2000
International
Energy
Agency R&D
Wind
IEA
Wind
Energy
Annual
Report
2000
T he twenty-third IEA Wind Energy Annual Report reviews the progress during 2000
of the activities in the Implementing Agreement for Co-operation in the Research and
Development of Wind Turbine Systems under the auspices of the International Energy
Agency (IEA). The agreement and its program, which is known as IEA R&D Wind, is a
collaborative venture among 19 contracting parties from 17 IEA member countries and
the European Commission.
T he IEA, founded in 1974 within the framework of the Organization for Economic
Co-operation and Development (OECD) to collaborate on comprehensive international
energy programs, carries out a comprehensive program about energy among 24 of the 29
OECD member countries.
Page
I. EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197
A.The 46th Executive Committee (photo), Naples, Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197
B. List of Executive Committee Members, Alternate Members, and Operating Agents . . .199
C. Currency Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205
deployment. In this process, the IEA R&D Austria, Canada, Denmark, Finland,
Wind has played a role by providing a Germany, Greece, Italy (two contracting
flexible framework for cost-effective joint parties), Japan, Mexico, the Netherlands,
research projects and information exchange. New Zealand, Norway, Spain, Sweden,
the United Kingdom, and the United
When the contracting parties extended the
States are now members. Recently there
IEA R&D Wind implementing agreement
has been increasing interest in IEA
through 2003, they adopted a Strategic
participation from both Organization for
Plan outlining objectives for the coming
Economic Cooperation and Development
years. The mission of the IEA R&D Wind
(OECD) and non-OECD countries. This
Agreement continues to be to encourage
interest is being encouraged and prospective
and support the technological development
members attend IEA Wind Executive
and global deployment of wind energy
Committee (ExCo) meetings to observe
technology. To do this the contracting
first-hand the benefits of participation.
parties exchange information on their
continuing and planned activities and COLLABORATIVE ACTIVITIES
participate in IEA R&D Wind tasks
Participants in the IEA R&D Wind
regarding co-operative research, develop-
Agreement are currently working on six
ment, and demonstration of wind systems.
Tasks, that are Annexes to the original
Specifically, members agree to the following
Implementing Agreement. Several
objectives for the extension of the agreement.
additional Tasks are being planned as new
Cost effective international cooperation areas for cooperative research are identified.
on advanced wind energy related To date, 11 Tasks have been successfully
research and development, completed and one Task has been deferred
indefinitely. The level of effort on a Task is
Exchange of information and state-of-
typically the equivalent of several people
the-art assessments on wind energy
working for a period of three years. Some
technology, policy, and deployment,
Tasks have been extended to continue
Extension of cooperation to non- their work. The projects are either cost-
participating OECD countries, as well shared and carried out in a lead country,
as promotion of wind energy in devel- or task-shared, when the participants
oping countries and in Eastern Europe, contribute in-kind, usually in their
preferably in cooperation with the home organizations, to a joint program
World Bank and other international coordinated by an Operating Agent.
financing institutions. Reviews of the progress in each active
Task are given in Chapters 2 through 7. A
NATIONAL PROGRAMS
brief account of the status of Tasks follows
The national wind energy programs of the here. To obtain more information about
participating countries are the basis for these activities, contact the Operating Agent
the IEA R&D Wind collaboration. These for each task listed in Appendix B..
national programs are directed toward the
Task XI - Base Technology
evaluation, development and promotion of
Information Exchange
wind energy technology. They are concerned
with work at home and in other countries. Operating Agent: The Aeronautical
A summary of progress in each country is Research Institute of Sweden (FFA)
given in Chapters 9 through 23.
The two main activities of this Task
At present, 19 contracting parties from are to prepare documents in the series
17 countries and the European Commission Recommended practices for wind turbine
participate in IEA R&D Wind. Australia, testing and evaluation by assembling an
Experts Group for each topic needing and resolve sources of discrepancies,
recommended practices and to conduct and improve the testing methods and
Topical Expert Meetings and Joint Actions procedures. A standard turbine is under-
in specific research areas designated by the going tests at several different sites around
ExCo. Work on this task began in 1987 and the world. Preparation for testing includes
has been extended through December 2001. drafting test plans, anemometer wind
tunnel calibrations, and site calibration
In 2000, the 14th Joint Action Symposium
measurements. Anemometers from eight
on Aerodynamics was held in Boulder,
countries have been calibrated in ten wind
Colorado. The 33rd Topical Expert meeting
tunnels. Site calibration measurements
was held in Boulder, Colorado on Wind
have been completed at NREL and RIS.
Forecasting Techniques. The 34th Topical
Expert Meeting was held in Stockholm, Three standard turbines underwent tests
Sweden on Noise Imission. In addition, in Canada, the United States, and Denmark
the Operating Agent represented the in 1998. Testing continued through 2000.
ExCo at the Offshore Wind Energy MES The ExCo voted to extend work on this
conference, the IEA Renewable Energy Task and a final report is expected in 2001.
Working Party workshop on long-term
TASK XVII - Database on Wind
research needs, and the International
Characteristics
Electrotechnical Commission TC88.
Operating Agent: RIS National Laboratory,
Task XV - Annual Review of Progress
Denmark.
in the Implementation of Wind Energy
by Member Countries of the IEA. This Task was adopted by the ExCo in 1999
to extend, maintain, and disseminate
Operating Agent: Energy Technology
the knowledge of a database on wind
Support Unit (ETSU), United Kingdom.
characteristics developed under a European
This task, initiated in 1995, has produced Union project DG XII (JOULE). In 2000,
overviews for decision makers of the the database contained more than 60,000
progress in commercial development of hours of data from 36 sites around the
wind turbine systems in the IEA R&D world. In addition, an advanced data
Wind member countries. selection system is available that allows
interactive use of the Web site where the
In 2000, the ExCo voted to support this
data are available.
activity through contributions to the
Common Fund. Now all members will TASK XVIII - Enhanced Field Rotor
contribute to supporting this important Aerodynamics Database
information-gathering and analysis activity.
Annex XV will expire on May 31, 2001. The Operating Agent: Netherlands Energy
report on data collected in this activity is Research Foundation (ECN),
presented in this Annual Report of the IEA the Netherlands
R&D Wind Agreement as Chapter 8,
In 1998, the ExCo approved Task XVIII
Overview. Future issues of the Annual Report
to extend the database developed in
will also contain an Overview chapter.
Task XIV and to disseminate the results so
TASK XVI - Wind Turbine Round that use of the database can be expected
Robin Test Program for years to come. In 2000, the database was
also made available on an Internet site.
Operating Agent: National Renewable
Access to the information is possible to
Energy Laboratory (NREL), United States.
parties who agree to inform the IEA Annex
This Task was begun in 1996 to validate XIV participants about the experiences
wind turbine testing procedures, analyze they gain with the database. The database
CHAPTER 1
Table 1.1 Contracting parties to the Implementing Agreement for Co-operation in the
Research and Development of Wind Turbine Systems2000
Table 1.2 Participation per country in current Tasks. OA indicates Operating Agent.
COUNTRY TASK
Australia x
Canada x x
Denmark x x x OA x x
European x x
Commission
Finland x OA
Germany x x
Greece x x x x
Italy x x
Japan x x
Mexico x
Netherlands x x x OA
New Zealand
Norway x x x x
Spain x
Sweden OA x x x
United Kingdom x OA
United States x x OA x x x
the Agreement, the ExCo. The ExCo meets year of work. Other Tasks involve test
twice each year to exchange information programs requiring several people work-
on their respective country R&D programs, ing over two or more years to complete.
to discuss work progress on various Tasks, Some of these R&D projects are task
and to plan future activities. Decisions are shared by each country performing a
reached by majority vote. subtask; other projects are cost shared
by each country contributing to the budget
The R&D Tasks performed under IEA
for a designated lead country to perform
R&D Wind are approved by the ExCo as
the Task. The technical results of Tasks are
Annexes to the original Implementing
shared among participating countries.
Agreement. (They are sometimes referred
to as Annexes.) Each Task is managed by Current Tasks and participating countries
an Operating Agent, usually one of the are listed in Table 1.2.
contracting parties in the IEA R&D Wind
All Tasks undertaken to date are listed in
agreement. The level of effort varies for
Table 1.3.
each Task. Some Tasks involve only
information exchange and require each
country to contribute less than 0.1 person-
Table 1.3 IEA R&D Wind tasks defined in Annexes to the Implementing Agreement
CHAPTER 2
has made a proposal for common noise Scientific Panel Meeting and the meeting of
emission level descriptions and evaluation Task XVIII Enhanced Field Rotor Aero-
methods. It is primarily intended for traffic dynamics Database. As a result of combining
noise but can be expanded to include other meetings there were many more participants
sources of noise, such as wind power gener- in the IEA meeting than is usually possible.
ators. The proposal suggests an equivalent The final discussion was on long-term
annual average sound level (Lden) where research needs in the aerodynamics area.
the night level has a penalty of 10 dB(A) The result of this discussion will be used
and the evening level of 5 dB(A). It should in a new version of the above-mentioned
be emphasized that the proposal is not con- Long Term R & D document.
cerned with the specific values of the noise
All documents produced under Task XI are
level limits, only with how they are defined.
available from the Operating Agent repre-
The 14th Joint Action Symposium on Aero- sentative. (Coordinates in appendix B), and
dynamics was held at NREL, Boulder, USA. from representatives of countries participating
The meeting was attended by 34 persons from in Task XI (Table 1.2).
eight countries. The meeting was arranged
Author: Sven-Erik Thor, FOI, Sweden
in conjunction with the NREL/National Aero-
nautics and Space Administration, Ames
International Energy Agency 9
THE IEA R&D WIND PROGRAM
CHAPTER 3
CHAPTER 4
drafting test plans, initiating anemometer testing of its turbine. AWTS completed
wind tunnel calibrations, and initiating power performance testing in 2000.
site calibration measurements.
The third turbine was shipped to
ENEA participated in Annex activities Denmark and began operation at Ris in
from 1996 until 1998. Then the Operating early December 1997. Ris completed
Agent was verbally informed that funding power performance and loads tests in
and organizational changes prohibited June 1998. The turbine was then shipped
further participation. ENEA has since to CRES where testing began in February
withdrawn from the Annex. 2000. The original plan to test the third
turbine in Italy has been canceled due to
Wind tunnel calibrations were conducted
funding and organizational constraints at
in cooperation with a European wind turbine
ENEA.
standards program, MEASNET, in which
anemometers from eight countries were Status meetings were held at Ris in June
being calibrated in ten wind tunnels. Final 1998 and at CRES in February 1999 and a
calibrations were completed, but the results third is planned for 2001. The Executive
have not been made available. Annex Committee has approved several extensions
participants agreed to conduct a follow-on for the Annex to accommodate 1) the
calibration of anemometers at CRES. These delayed production of the European test
tests were complete in March 1999 and turbine, 2) change in test sites from ENEA
portions of the results were presented at to CRES, and 3) longer than expected testing
the European Wind Energy Conference in schedules. Final reports are expected to be
Nice. The principal investigator of this completed by October 2001.
phase of testing, Dr. Kostas Papadopoulos,
Some comparisons of test results have
is planning to submit a second paper on
begun. However, detailed investigations
this subject for publication in a peer-
are not planned until tests at AWTS,
reviewed journal. NREL and Ris have
CRES, and NREL are completed in early
completed site calibration measurements,
2001.
which quantify wind speed differences
between the anemometer tower and the Author: Hal Link, NREL, United States
wind turbine. Other participants plan to
conduct this test at a later date.
The standard turbine is an Atlantic Orient
Corporation (AOC) 15/50, a 50-kW, free-
yaw turbine that is relatively easy to
transport and install. Participants will
complete tests on three of these turbines, one
at Canadas AWTS, one at the United
States NREL, and one at two test stations
in Europe. The first two turbines have
been in operation for several years with
both NREL and AWTS engineers having
completed several operational tests of its
turbine. NREL has also completed noise, Figure 4.1 AOC 15/50 turbine under test at
power performance, and structural loads CRES.
CHAPTER 5
Site = Alsvik, h = 53 m
Runname = 199110231300 T = 10 sec.
360 Direction change = 14
Dir (deg.)
350
340
330
320
18
Speed change = 6 m/s
V (m/s)
14
10
6
1120 1140 1160 1180 1200 1220 1240 1260 1280
T (sec)
Figure 5.1 Example of simultaneously extreme wind speed (down) gust and wind
direction change identified using database search and analysis tools.
38th AIAA/ASME Aerospace Sciences is free of charge for users from IEA Task
Meeting and Exhibition, 10 to13 January XVII participating countries.
2000, Reno, U.S.A.;
Authors: Gunner C. Larsen, Ris National
Demonstration of the database and its Laboratory and Kurt S. Hansen, Technical
capabilities at the Danish national event University of Denmark, Denmark
Vinddag 2000 held at Ris 29 November
2000.
Mailed letter to 26 Japanese universities/
institutions/companies;
Preparation of an IEA brochure on the
database;
Preparation and printing of a revised
version of the database leaflet;
Issuance of four electronic newsletters;
Conducted opinion poll on Database
on Wind Characteristics among Dutch
manufactures and other potential users;
Established an electronic discussion
club for users of the database;
Established links from different home
pages to the database (IEA, WasP, Ris,
DTU);
Database on Wind Characteristics has
been utilized in a number of ongoing
research projects (the JOULE project
NewGust, the JOULE project ENDOW,
the JOULE project ADAPTURB, a project
on siting of wind turbines in complex
terrain and a national Danish project on
non-Gausian turbulence). Moreover
Ris, DTU, Tech-wise A/S and NEG
Micon have obtained funding for a
national project in which the database
plays an prominent role;
Ris and DTU have obtained national
funding for a research project on
extreme wind direction gusts in which
the database will be used.
The database is available on the Web server
(http://www.winddata.com/) and the use
CHAPTER 6
data have been collected and stored in the 6.3 STATUS OF THE DATABASE
Task XIV database. The tests are completed. At the end of 2000 the following measure-
3) Wind turbine at NREL, United States ments were stored into the database:
D = 10 m; The experiments are carried out Power curves, delivered by NREL,
in different phases. Phase II: Three RIS and Mie University;
bladed; Blades without twist and taper.
Phase III and IV: As Phase II, but blades 2D airfoil coefficients, delivered by
have twist. The difference between Phase ECN, NREL, and RIS;
III and Phase IV is the measurement of 2D pressure distributions delivered by
the inflow conditions. This is performed NREL;
with a flag device, respectively a five hole
probe; Phase V: Two bladed; Blades with Rotating airfoil coefficients, delivered
constant chord, twisted. Instrumented at by ECN, NREL and RIS;
4 (or 5) radial positions, measured Time series, delivered by DUT, ECN,
simultaneously; Much data have been NREL, IC and RIS. Time series were
collected. The phases II, III and IV are delivered for aligned conditions and
completed and data are stored into the for yawed conditions (yaw angle
Task XIV database. ranging from -40 to +40 degrees). The
4) Wind turbine at Mie University, Japan angle of attack ranges from negative
D = 10 m; Three blades; Blades with twist values to deep stall.
and taper; Instrumented at 4 radial stations, DUT and Mie University still need to
partly measured simultaneously. At the deliver their 2D and rotating airfoil
end of 2000, most measurements were coefficients. Further, DUT and Mie
performed, but they still needed to be University still have to supply a number
made available for Task XVIII. of time series.
5) Wind turbine at Delft University, the
Netherlands 6.4 EXPERIENCES OF USERS OF
THE DATBASE
D = 10 m; Two blades; Blades without
twist and taper; Instrumented at four Until October 1999, the Task XIV database
radial positions. Until 1999 these stations was only available through CD-ROM and
could not be measured simultaneously. on an ftp-site, which was protected by means
From January 1999 two stations can be of a password. The CD-ROM and/or the
measured simultaneously. Much data password were available for outside parties
have been collected for the 30%, 50% and under the condition that they inform the
70% sections, which were measured Task XIV participants about experiences
independently. These measurements have gained with the database, for example by
been made available for the database. means of relevant project reports. This
Also some measurements with boundary feedback gives the Task XVIII participants
layer manipulators have been performed the possibility to improve the quality of the
which are made available to the database. database, to get insight into the research
which has been performed with the
6) Wind turbine at CRES, Greece measurements, and to defend against
D = 19 m; 3 blades; Blades with twist possible criticism.
and taper; Instrumented at three radial
positions. The instrumentation is not In October 1999, the database also became
finished yet and at the end of 2000 it was available on an Internet site. On this site, a
not expected that the data would arrive in registration form has to be completed by
time to be stored into the database. users which asks them to share their
experiences with the Task XIV/XVIII Users have responded. Some of the main
participants. The request to share experiences observations are as follows.
is based on an honors system agreement
1. Generally speaking it can be concluded
and no obligations can be imposed. The
that the experiences were positive, but it
Table 6.1 lists the institutes which received
also has to be concluded that recent use
access to the database.
of the database was limited. This was
Furthermore the CD-ROM has been sup- partly attributed to lack of time. Almost
plied to the EU-JOULE project group: all users were interested in updates and
'VISCEL', coordinated by CRES (Greece). wanted to be informed about future
developments.
In November 2000, a questionnaire was
2. The communication is complicated by
distributed to the users of the database,
the fact that access to the database is
with the following questions. Have you
given to persons instead of to institutes.
used the database recently? If yes, for
When persons move to other positions,
what purpose have you used it? Do you
contact often get lost, although sometimes
have any references? What were your
they use the database at their new jobs.
experiences? Do you think you will use
the database in the future? If no, why not? 3. The database is mainly used in university
Do you have any comments on the content environments, and as such the emphasis
and the access of the database? Are you is on more fundamental research items
interested in updates of the database? and on validation of advanced CFD
Table 6.1 Users of Enhanced Field Rotor Aerodynamic Data Base
ACCESS TO CD-ROM/
INSTITUTE DATABASE INTERNET
Garrad Hassan and Partners (United Kingdom) Dec. 1997 CD-ROM
Carlos III University (Spain) Jan. 1998 CD-ROM
FFA (Sweden) Dec. 1997 CD-ROM and Internet
Rzeszow University (????) May 1998 CD-ROM
University of Illinois (United States) Feb. 1998 CD-ROM
University of Glasgow (United Kingdom) Dec. 1997 CD-ROM
NASA-Ames (United States) Feb. 1999 CD-ROM
University of Quebec (Canada) Feb. 1999 CD-ROM
University of Northern Arizona (United States) Dec. 1998 CD-ROM
NEG-Micon (Denmark) Feb. 1999 CD-ROM
School of Aerospace Engineering May 1999 CD-ROM and Internet
Georgia Institute of Technology (United States)
Universidad de Malaga (Spain) March 2000 Internet
CITA (France) Sep. 2000 Internet
Vrije Universiteit Brussel (Belgium) April 2000 Internet
Asade (Spain) Oct. 2000 Internet
University of Applied Science Dec. 2000 Internet
Kiel (Free Republic of Germany)
Monash University (Australia) Oct. 2001
Students (Greece, Denmark, Holland) Continuous Internet
CHAPTER 7
7.3 STATUS
A kickoff meeting was held in Helsinki on
22 September 2000 where the work plan
was updated with national activities for
each participant to carry out. Work will
begin in 2001.
Author: Jonas Wolff, VTT, Finland
CHAPTER 8
The principal value of wind energy for Please refer to Appendix C of this Annual
most countries actively involved in Report for the exchange rates used in this
implementing wind energy to date, is the analysis.
doubling the renewables contribution to aggressively and are instead driven much
the energy balance by 2010. Specifically, more by economics. The position with
3.4 million tons per year of avoided CO2 New Zealand is somewhat similar to
emissions should come from wind power. Australias with government policy for
This equates to about 2,500 MW or 200 MW energy to ensure the continuing availability
per year. The ongoing policy is in devel- of energy services at the lowest cost to the
oping technology, promoting the domestic economy as a whole, consistent with
wind energy market, providing technical sustainable development.
assistance to private installers and local
Norway (NOR)
authorities and providing technical
support to the industry. In a year with above average rainfall,
Norway could be self sufficient with
Japan (JP)
electricity from renewables, almost all of
The process of establishing wind energy which is hydro. More typically now, with
in a new country requires initial demon- the increase in energy demand, Norway
stration projects, often needing substantial depends on importing some electricity,
support from government. Japan have just mainly from Sweden and Denmark. There
such a program for the construction and are limited opportunities for new hydro
operation of large-scale test plant, through projects and in 1998, the Norwegian
NEDO. In 1998, the Government developed government stated an overall goal to
a plan to stabilize CO2 emissions at 1990 reach 3 terawatt hours per year (TWh/yr)
levels by 2010, with renewable energy of electricity from wind energy by 2010.
increasing from 1.1% to 3.1%. Wind However, the current market incentives
energy has a target of 300 MW. and subsidizing scheme are probably
insufficient to fulfill this ambition.
Mexico (ME)
Spain (SP)
In emerging markets such as Mexico,
specific plans for integrating a meaningful Spain is notable for its success in both
capacity of wind power into the national building wind farms and developing an
electricity system have yet to be established. indigenous wind turbine manufacturing
The Mexican energy policy is aimed at industry. The policy has progressed from
securing enough electricity supply to resource evaluation at national and
allow expected economic development. regional levels, from 1980 for 10 years, to
large-scale implementation. The high
The Netherlands (NL)
priority and payments given to wind
For the Netherlands, reducing CO2 is a could well continue. During the last year
key objective. By 2000, emissions should a target has been adopted for renewables.
have reached 1990 levels. The policy is This is a 12% contribution to the national
now to stabilize emissions by first limiting primary energy demand by 2010. This is
energy demand as much as possible and also attributed a target installed capacity
then to meet the remaining demand with of 8,974 MW.
renewable energy. For renewable energy,
Sweden (SW)
the target is set to a 10% contribution in
2020. A wind target of 2,750 MW is derived Considerable challenges face Sweden in
from that. the future. The decision to phase out
nuclear power (One nuclear reactor was
New Zealand (NZ)
closed in 1999) and limitations on further
Other countries, although nominally hydro-power make renewables, and wind
promoting sustainability, do so less energy in particular, a crucial element of
growth rates were 37% and 52% respec- giving 4% growth. Much more new plant
tively. This reflects the strong markets, is expected during 2001.
offering fixed and generous tariffs for the
No new machines were installed in Finland,
energy produced, combined with a high
Norway, Mexico, or New Zealand.
success rate within the planning process,
although this is becoming an issue of Figure 8.1 below shows the growth of wind
increased significance in Germany now. power across the IEA countries since 1994.
Denmark had an exceptional year, 8.2.3 Offshore
installing nearly twice as much capacity
as it has in recent years, to achieve an The interest and level of commercial
overall growth of 34%. activity associated with offshore wind
energy increased again during 2000.
Italy continued its rapid growth trend Projects were developed at Blyth in the
established over three years now, installing UK (4 MW) and at Middelgrunden, off
145 MW to match Spains overall growth Copenhagen in Denmark (40 MW) and at
rate at 51.4%. Utgrunden in Sweden (10 MW).
New markets to show vigorous activity Interest in the offshore siting of turbines
were Japan and Australia. Japan installed is, in the main, limited to those countries
two large wind farms totaling 50 MW, where there is a shortage of suitable sites
which nearly doubled its total installed on land (SW, JP) or where population
capacity. Australia installed 20 MW which, density precludes extensive on-land
as a fledgling market, much more than development because of visual intrusion
doubled its total capacity. This large (DK, NL, UK, DE). In addition to the new
increase is due to the planned introduction capacity above, Denmark has two demon-
of a Renewable Energy Certificate market stration offshore wind farms of 5 MW
in 2001. The prospects for large grid- in operation, the Netherlands has four
connected developments are excellent with 500-kW machines, and Sweden has one
announcements made on the planned 220-kW and five 500-kW machines.
completion of up to120 MW in 2001 and
up to 180 MW in 2002. Both Denmark and the Netherlands have
announced sizeable targets for offshore
UK saw some growth (19%), which was deployment. A target of up to 4,000 MW
especially welcome having had very poor by 2030 has already been set by Denmark
years in 1999 and 1998. and of 1,250 MW by 2020 in the Netherlands.
In Germany too there are plans for around
Steady 100 MW in the North and Baltic Seas. In
Sweden and the Netherlands saw similar the UK, the government has now outlined
new installed capacity to previous years, a capital grants program for offshore
rather than continued growth. wind energy, enabling early developments
to compete for grants up to 40%. In
Down turn combination with the Renewables
Obligation, this will provide a strong
This year was slow for the United States
financial basis for development. Further
after the encouraging up turn of activity
details were expected to be announced in
in 1999. The 1999 boom was precipitated by
the spring of 2001.
a flurry of projects against the scheduled
expiry of the tax credit at the end of June Sweden is also very active and has a very
1999, now extended to the end of 2001. In large number of large offshore projects in
2000, 99 MW of new plant was installed, different planning and study phases.
18000
16000
14000
Cumulative capacity
12000
Annual installed capacity
Capacity (MW)
10000
8000
6000
4000
2000
0
1994 1995 1996 1997 1998 1999 2000
Year
Figure 8.1 Annual installed and cumulative installed capacity in IEA countries
amount over the value of the electricity turbine owners a kWh rate of 85% of the
alone, or be established competitively. A utilitys production and distribution costs.
competitive bid-in system has been used Additionally, until now, the Government
in the UK, Ireland, and France, with has reimbursed wind-turbine owners CO2
contracts awarded to the lowest bidders. tax and added direct subsidy.
The primary emphasis here is price
The Electricity feed law (EFL) in
reduction and convergence with the
Germany became effective in 1991. Since
market price for electricity and has seen
then, the utilities have been obliged to
substantial wind energy cost reductions.
pay 90% of the average tariffs per kWh
Other mechanisms include tax incentives
that private consumers had to pay, with
and green electricity trading which is
taxes of 15% excluded.
also at premium prices, but directly to
consumers. In Spain, the utilities are obliged to pay a
price guaranteed to generators for a five-
Table 8.3 summarizes the main market
year period. The price and the related
stimulation instruments in the participating
bonus is revised and fixed every year in
countries. The table makes an important
accordance with the variation of the
differentiation between the basic types of
electricity market price.
mechanism. These can be either 'Investment
support' which contributes to the build Shifting the burden of taxation
cost of wind turbines, 'Production support'
In the Netherlands eco-tax on energy
which increases the value of the electrical
carriers such as gas and electricity (except
output of turbines, or 'Demand creation'
that generated from renewables) was
which directly creates a demand and
mostly fed back to the tax payers through
subsequently increases the value of wind
reduced income tax. This is then neutral
energy. Investment support has the
to the tax payer but shifts the burden
potential disadvantage of installing wind
from labor to energy. Such measures can
turbines, but then not maximizing their
also be seen as the attribution of a value
output. The three mechanisms described
to the external costs of energy production.
immediately below are all examples of
production support which do maximize Green certificates
generation. Obligations on electricity
As a means of both monitoring and meeting
suppliers or users to buy a proportion of
generation targets and encouraging
electricity from renewable resources are
competition, some countries are introducing
examples of demand creation.
green certificate trading (NL,UK, DK, IT).
Mechanisms for high deployment Certificates are issued against electricity
generated by renewable sources, which
In terms of achieving rapid deployment,
can then be traded nationally. In the
the market mechanisms used by Germany,
Netherlands some electricity companies
Spain, and Denmark have had notable
have started trading internationally, but
success recently. In all these markets, the
this has not been officially recognized by
utilities have been obliged to connect
the government.
wind power and pay set prices for the
electricity generated. Green Electricity tariffs
In Denmark, since 1993 the payment for In a number of countries, customers are
wind-generated electricity has been being offered Green Electricity usually
related to the utilities production and at slightly higher rates, ie about 5% to 30%
distribution costs (tariffs). A law has above the price for electricity generated
obliged the power utilities to pay wind from conventional sources. Green Electricity,
generated from renewable energy sources, enforcement of the Clean Air Act and
is offered in deregulated markets by both other laws that restrict emissions from
electricity suppliers and private generators many sources, including electric power
(AU, CN, DE, FI, NL, UK, US). In the plants. Partly through the enforcement of
Netherlands, distribution companies the Clean Air Act, many power plants
offered Green Electricity at about the have switched to natural gas, which has
same price as brown, supplying about increased demand and greatly increased
600 GWh across 600,000 customers. In price. The spot price for natural gas rose
Northern Ireland, a single wind turbine from 2.20 USD per thousand cubic feet to
was built purely against green electricity 6.60 USD over the year. This price makes
demand, whilst one of the two UK off- wind energy more cost competitive and
shore turbines will supply certificates to also increases its attractiveness because of
the Dutch utility Nuon, and Scotland its immunity to such price fluctuations.
installed a 13-MW wind farm outside of
There is also an increasing interest in
any support mechanism, but probably in
generation to supply local loads. This
anticipation of the Renewables Obligation.
involves individual or small clusters of
Japanese green funds turbines, for businesses, farms, and
landowners. In some states, favorable net
The Tokyo Electric Power Company
billing is in place, though usually limited
established a Green Power Fund for
to 100 kW or less. Such distributed
people who wish to make a social
generation could account for 20% of new
contribution. A single donation is 500 Yen
installations in the next 10 years.
per month. The scheme supports wind
and photovoltaic (PV) projects and is non Autonomous systems
profit making. A similar new company
In Australia, the prospects for wind-diesel
called the Japan Natural Energy Company
power systems are also excellent, with the
also started in 2000.
introduction of the Renewable Remote
New incentive in UK Power Generation Program in late 1999.
There are a large number of potential diesel
During 2001, a new mechanism will be
installations where renewables such as
introduced in the UK, to support renewables.
wind can supplement diesel generation.
It hopes to increase the rate of deployment
whilst exploiting market forces to control 8.3.2 Constraints on Market
costs. Public electricity suppliers will Development
become obliged to either supply a
An insight into the main factors which
progressively increasing amount of
constrain the deployment of wind turbines
electricity from renewables, buy an
may help to explain the differences in the
equivalent number of green certificates,
number of machines deployed in different
or pay a penalty charge. The penalty sets
countries.
the level of incentivisation and is currently
proposed at 3.0 p/kWh, which is additional Cost and price constraints
to the value of the electricity.
The primary constraint affecting market
Other market drivers in the US
development is the comparatively low cost
In the United States, environmental policy of conventional generation and surplus
considerations are also driving wind capacity. This can also be viewed as a
development. The Environmental failure of national and international poli-
Protection Agency (EPA) and state cies to pass on environmental costs to
environmental agencies are pursuing generators. New Zealand and Norway are
AUSTRALIA
Investment There are various grants avaliable for demonstration and promotional projects as well
support as for R&D.
Demand The most powerful market stimulant is the mandatory requirement for an increase
creation of two percent in the use of electricity from renewables and specified waste sources
by 2010.
CANADA
Investment In 1994 installations were for R&D and field trials and supported by the government
support program. Additionally, and still applicable is the capital investment write-off (30% per
annum of the declining balance).
In 1998 the Canadian Renewable and Conservation Expense (CRCE) category was
introduced into the income tax system, allowing the extension of the use of flow-
through share financing currently available for non-renewable energy and mining
projects. through CRCE, the Income Tax Act also allows the first, exploratory wind
turbine of a wind farm to be fully deducted in the year of its installation, in a manner
similar to the one in which the first, exploratory well of a new oil field is being
written off.
Demand Now substantial support through Green Power purchase.
creation
DENMARK
Investment Low voltage connection paid by owner, Grid reinforcement costs paid by distribution
support companies.
Production Since 1989 production subsidies for energy produced by private generators and
support utilities
Until April 2001, buy-back rates fixed relative to normal electricity selling price to
distribution companies. This buy-back rate will continue under the new regulations,
below, until the market for green certificates is established.
From April 2001 the revised regulations will require that new turbines will be paid
electricity market price plus green certificate market price, once the market for
green certificates is established. Until then the value of green certifictes is set at
0.1 DKR/kWh.
Demand Renewable energy quotas will be announced by Government, in which consumers
will be obliged to a steadily increasing share of electricity from renewables. This is
part of the measures for reaching future CO2 reduction targets.
FINLAND
Investment Investment subsidies - up to 30% total investment costs depending on technical
support innovation.
Production Production subsidy for wind and other small local energy production.
support
Demand Green Power Tariff offered by utilities and some private generators also selling
creation green energy directly to customers.
GERMANY
Investment Grants under the 250MW Wind demonstration program.
support Individual states may offer capital subsidies or soft loans.
Production The EEG law (Erneuerbare-Energien-Gesetz) came into force on April 1, 2000. This
support replaces the EFL law with a fixed tariffof DEM 0.178/kWh for 5 years, then
DEM 0.121/kWh.
The first offshore installations, installed before 2006 and more than 3 nautical miles
from the coast, will receive the higher DEM 0.178/kWh rate for 9 years.
GREECE
Investment 40% capital investment subsidies and possible 40% soft loan.
support
Production Premium price for energy since end 1995.
support
ITALY
Investment Some Regional Authorities provide investment subsidies.
support In July 2000 the Ministry of Environment issued Decree 377, diverting carbon tax
revenues to provide up to 40% subsidies for wind plants on the smaller islands.
Production Premium price for renewable and assimilated energy sources.
support
Demand There is a forthcoming decree under consideration that would substantially improve
support the position of wind energy. Priority would be assured in displacement over the
transmission system, large importers or producers of electricity become obliged,
starting from the year 2002, to produce a quota from new renewable energy plants.
The percentage is 2% initiallly and will be increased in subsequent years.
JAPAN
Investment 100% wind measurements
support 50% construction costs for public sector projects over 1,200 kW
33% construction costs for private sector projects over 1,500 KW
50% design costs
Production Some finance at preferential rates and tax incentives for profitable companies.
support Buy-back price negotiated between generator and utility.
MEXICONone at present
NETHERLANDS
Investment Up to 1996 a subsidy per m2 swept rotor area and wind turbine capacity, up to a
support maximum of 35% of the investment costs.
Income from Green Funds subject to lower interest rates on capital borrowed.
From January 1997 40% deduction of capital investment from company profits.
From January 1996 accelerated depreciation on wind turbine investment.
Production Up to 1998 various levels of premium price for energy produced.
support The utilities must feed back part of the Eco Tax to generators for each kWh
produced.
Demand Green Label scheme introduced for 1998, which also applies to historical projects.
support Exemption from Regulatory Energy Tax for end users of renewables.
NEW ZEALANDNone at present
NORWAY
Investment Investment or shared development costs within a defined budget, up to 25% of
support eligible costs (In 1999 two wind turbine installations were granted support of about
20% of investment costs, of which one was fulfilled. The other two are still in the
planning stage).
Investment tax exemption for up to 7% of costs.
Production Since the end of 1998 a production support for generators has been introduced. This
support is half the electricity levy for all installations with installed capacity of more than
1,500 kW. In 2000 the production support was 4.28 Norwegian rc/kWh.
SPAIN
Investment In 1994 investment subsidies up to 26% for commercial projects, 35% for demon-
support stration projects and 49% for innovative projects, and a premium price for energy
produced.
Third party financing through the national energy agency IDAE,
Production Since the end of 1998 the mechanism is through a premium tariff either of fixed value
or of floating value but with a fixed bonus above the base price. Most developers use
the fixed price.
SWEDEN
Investment Investment subsidy of 15% (program limited to 60 MSEK/year).
support
Production No annual cost for using the electricity net (max. size = 1,500 kW).
support Until November 1, 1999: Premium tariff based on household tariffs plus environ-
mental bonus (15.1 re/kWh) plus a small addition against local grid value. Maximum
size = 1,500 kW.
After November 1, 1999: Environmental bonus (16.2 re/kWh) plus temporary
subsidy (9 ore/kWh) plus a small addition against local grid value. Maximum size =
1,500 kW.
UNITED KINGDOM
Investment Investment subsidies of up to 40% are expected, specifically to support early
support offshore wind farms.
Production Premium price for energy produced. Contracts awarded after competitive bidding.
support
Demand Regional obligations, placed on the electricity supply companies are in the process
creation of being introduced, expected to come into force late 2000. These will involve the
trading of green certificates and the payment of a penalty charge if obligations are
not met.
UNITED STATES
Production Federal subsidies of USD 0.017/kWh, adjusted annually for inflation, in form of tax
support credits for investor-owned utilities and production incentive payments for municipal
(tax exempt) power producers.
Wide range of individual state incentives (e.g. waiving of sales or property taxes).
generator called Windformer and made Offshore reliability has also been identified
by ABB. The first installation is expected as an area needing big improvements in
late in 2001 on the Swedish island of order to achieve acceptable availabilities
Gotland. (NL, DK, UK, SW).
NEG Micon Holland, Aerpac, LM glasfiber Offshore environment
Holland, TU Delft, Van Oord, and ECN
The move to offshore has created a need
continue a concept study for a 3-MW off-
to better understand the potential effects
shore machine. The machine should be
on marine wildlife and major studies have
capable of withstanding severe North Sea
been and continue to be conducted in this
conditions, and it is hoped that a prototype
area.
will result of capacity 5 to 6 MW and with
a diameter of 100 m. The work is being Forecasting
carried out under the Dutch Offshore Wind
In many countries, the price paid to
Energy Converter (DOWEC) project.
electricity generators is partially dependent
In Germany, BMWi projects include a 3 to upon prior agreement of the amount to be
4-MW turbine with a 110 m rotor diameter. supplied (firm) within a given period.
Variations to this amount then receive
Some more radical concepts have received
lower prices in the case of over-supply
support from both private sector and
(non-firm), or penalties in the case of
government. The Wind Turbine Company
under-supply. Several R&D programs
from the US is testing a scaled prototype
recognize that the value of wind power is
hinged-blade, down-wind turbine. In
increased if the output can be more
New Zealand, a prototype called the Vortec
accurately predicted, and have started
has been developed, which funnels air
research in this area (including US, UK,
through a large venturi surrounding the
NL, DK). The possibilities of aggregation
turbine, to augment the wind speed.
of the output from several geographically
The new Swedish 1-MW Nordic Windpower distributed wind farms is also being
wind turbine was installed and examined (UK).
commissioned in August 2000. It is a
Blades
light-weight, flexible two-bladed, up-wind
design, developed from the Nordic 400. It is increasingly becoming the case that
manufacturers are having to take back
Offshore foundations and installation their blades for disposal at the end of
their useful life. This has caused them to
The new market for large offshore
seek economic and environmentally
machines has created much fresh thinking
friendly means of disposal and has led to
on both the foundations and installation
the use of crushed blades in Belgian cement.
methods. Whilst foundation types might
The Netherlands too started a project to
loosely be categorized as either gravity or
research possibilities of producing large
pile type, there are many different options
blades from ecologically friendly materials.
being considered against very few practical
examples as yet. This will be an area of In the UK, research was initiated on new
continued research. There is also the blade designs for larger blades needed
likelihood of specialized installation vessels offshore. Improved lightning protection for
emerging. A company in the Netherlands offshore blades is a new area of interest
is developing a lower weight trussed tower too, because of the higher probabilities of
and tracked vehicles for installation and strike and increased difficulties of repair
maintenance, running along the sea bed. or replacement.
NATIONAL ACTIVITIES
40.00
35.00
Annual R&D expenditure (MUSD)
30.00
25.00
20.00
2000
15.00 1999
1998
10.00
IEA R&D Wind Annual Report 2000
1997
1996
5.00 1995
1994
0.00
AU CN DK FIN DE GR IT JP MX NL NZ NO ES SW UK US
Germany 3 0% 60 1% 6,095
and just 6% for 15 years. The real figures are occasional component faults that affect
are slightly lower for 10 years of operation a large number of operating machines. There
and likely to be considerably lower for have been several such cases involving
15 years of operation, since these calculations gearboxes and blades over the years.
assume that all of the turbines are still These require large retrofit programs
operating. This is certainly not the case in conducted at the expense of the component
the United States, but statistics on individual or turbine manufacturer. Clearly the level
turbines are not available. of maintenance affects turbine life and
in Germany it is estimated that one per-
Table 8.4 gives an indication of the long-
manent service person is required for
term operational experience to date. The
every 20 MW installed.
countries selected as those with a long
wind power history. 8.4.3 Costs
Reliability Capital costs
Overall reliability can be considered high, Because of the commercial nature of wind
reflected in the availabilities achieved, farms there is very little firm cost data
detailed above. Figure 8.3 below shows the available, though most countries provide
distribution of failure causes in Germany estimates. For complete wind farms the
in 2000, recorded on the scientific estimates of average cost vary according
monitoring and evaluation program. There to country, between about 1000 to1200
High wind
Grid failure 4%
Control 6%
20% Icing Lightning
1% 4%
Figure 8.3 Distribution of failure causes in Germany during 2000
International Energy Agency 43
NATIONAL ACTIVITIES
USD/kW of installed capacity, but with higher than conventional generation. The
1000 USD more typical. The cost of the high prices available in Denmark, Italy,
turbine and tower alone varies between and Spain have successfully enabled wind
about 700 to 900 USD, with 770 USD typical. energy development. Whilst Japan too has
These costs show a split of roughly 77% a high price, it is determined through
for machine and 23% for balance of plant agreements with utilities against individual
comprising primarily of foundations, projects and not universally available. The
electrical infrastructure, and roads. difficulty in Finland and Norway is clear,
with such low conventional electricity costs.
Offshore costs are much more difficult to
determine at this early stage. The UK 8.4.4 Development in Industry
reported a total cost of 4 million
(6 million USD) for the Blyth 4-MW The cost of wind-generated electricity
project developed in 2000. continues to fall steadily. This is driven by
technological development and increased
Generation costs production levels, together with the use of
larger machines. There has been a direct
Figure 8.4 below shows the wide variation
relationship between machine size and
in both the price paid to wind energy
balance of plant costs, with larger machines
generators and to generators using
reducing the cost of the remaining infra-
conventional sources (base). Whilst the
structure on a per unit installed capacity
diagram shows prices rather than costs
basis.
and does not indicate the availability of
additional capital grants, it does demon- In Denmark technology development in
strate that wind energy requires a price manufacturing industry focused on
12.0
10.0
Average electricity
generation
Price (UScents/kWh)
8.0
Wind electricity
generation
6.0
4.0
2.0
0.0
CN
DK
FIN
IT
JP
NO
ES
SW
refining the MW class of wind turbines, in 2000 had a higher capacity than any-
including upgrading with larger rotors where else at 1,100 kW. This results from
and generators. The optimization of rotors, the high population density and shortage
to maximize energy capture, increase of good sites, with larger machines thus
capacity factor, and adjust to the local wind offering higher capacity projects. The
regime, has resulted in larger rotors (per premium on space and accompanying
unit of installed capacity). The Netherlands drive to larger machines is compounded
reports that since the mid-eighties the by a noise constraint for all commercial
installed swept area per unit of power has scale machines, requiring a minimum of
changed from 1.7 to 2.5 m2/kW. 500 m between any turbine and the nearest
dwelling.
Manufacturing industry
Spain and Italy are different, in that the
Spain has been expanding its home industry
remote and elevated sites being exploited
with new component factories opening
do not favor the use of very large machines.
during 2000. Manufacturers are now also
This results from the difficulty in
looking to export markets, initially in
transporting the machines to site and in
North Africa (Tunisia, Morocco, Egypt).
getting large cranes on site for erection. It
Some of the larger European manufacturers is unlikely that MW machines will be
are establishing assembly plants in the substantially exploited here in the near
US and plan to set up component manu- future, with the average new machine
facturing in the Midwest. NEG Micon has being around 600 kW in 2000.
opened a large turbine assembly facility in
Offshore
Illinois and Vestas is considering similar
options. Enrons 1.5-MW machine will be The Government of the Netherlands
the first of its size class to be produced in decided on the location of the 100-MW
the United States. Enron expects to install demonstration project, which will also
350 wind turbines in the United States by include two foundations for testing large
the end of 2001. machines. The site is 10 km off the coast
near the village of Egmond aan Zee. The
Turbine size
development will also be used for extensive
The average turbine continues to grow in environmental, economical, and technical
size and capacity, though the size of monitoring to inform larger future devel-
machines typically deployed does vary opments. Denmark continues to progress
between the various markets. For the its plans for a 150-MW installation at Horns
reporting countries (excluding Canada Rev, now expected to be commissioned
and the US), the average new turbine autumn 2002. In Denmark, the state also
deployed grew from 440 kW in 1995 to determines the areas suitable for offshore
805 kW in 2000. The most recent offshore development, whereas in the UK offshore
installations (DK, UK) have both used sites are initially selected by the developers.
2-MW turbines. The most competitive There is growing interest in offshore
projects have tended to use machines in investment in the UK, which has attracted
the 660-kW to 750-kW class. These machines new companies to the industry. The oil
are being further stretched to 900 kW, sector in particular is now forming part-
forming the core machines for many nerships with wind industry developers
markets in the next couple of years. to exploit this resource.
Germany has consistently exploited large Author: Ian Fletcher, ETSU, UK
machines. Here MW class machines are
popular and the average turbine installed
Table 8.5 Capacity and output data for member countries (1996 to 2000)
NATIONAL ACTIVITIES
INSTALLED OFFSHORE ANNUAL INSTALLED CAPACITY (MW) ELECTRICITY NATIONAL
CAPACITY CAPACITY NO, OF 1996 1997 1998 1999 2000 GENERATED DEMAND
COUNTRY (MW) (MW) TURBINES (MW) (MW) (MW) (MW) (MW) GWHRS/YR TWHRS/YR
Australia 33.0 0.0 80.0 0.0 1.1 5.8 3.3 20.0 42.0 180
Canada 137.0 0.0 220.0 0.2 3.0 48.0 50.4 13.1 280.0 545
Denmark 2,338.0 50.0 6,143.0 169.0 300.1 308.0 302.0 588.0 4,240.0 35
Finland 38.0 0.0 63.0 0.9 4.6 5.6 20.6 0.0 79.0 79
Germany 6,095.0 0.0 9,369.0 428.0 534.0 792.0 1,571.0 1,650.0 8,400.0 486
Greece 214.0 0.0 481.0 0.0 3.0 11.5 67.5 105.0 460.0 40
Italy 427.0 0.0 819.0 48.4 28.5 79.7 102.0 145.0 500.0 286
Japan 121.1 0.0 234.0 4.0 6.5 14.4 39.0 50.5 76.0 817
Mexico 3.0 0.0 10.0 0.3 0.5 0.6 0.0 0.0 7.5 216
Netherlands 447.0 2.0 1,297.0 47.0 44.0 39.0 45.0 38.0 750.0 95
New Zealand 37.0 0.0 n/a 3.5 0.0 0.0 33.3 0.0 14.0 n/a
Norway 13.0 0.0 23.0 0.0 0.0 5.4 3.7 0.0 32.5 120
Spain 2,334.0 0.0 4,697.0 96.5 205.0 407.0 705.0 795.0 4,162.0 196
IEA R&D Wind Annual Report 2000
Sweden 241.0 13.0 517.0 38.0 17.0 52.0 46.0 21.0 448.0 145
United Kingdom 408.0 3.8 862.0 36.8 84.5 13.0 18.0 64.0 895.0 388
United States 2,554.0 0.0 n/a 7.2 11.0 147.0 565.0 99.0 6,000.0 3,680
TOTAL 15,440.1 68.8 24,815.0 879.8 1,242.8 1,929.0 3,571.8 3,588.6 26,386.0 7,308
AUSTRALIA
CHAPTER 9
In 2000, Australia has conducted the The measure will be implemented using
following activities, which illustrate this a system of tradeable certificates called
progress. Renewable Energy Certificates (RECs),
which will be earned on the basis of one
Established the Renewable Energy REC per MWh of eligible renewable
(Electricity) Act 2000 and the Renewable generation. Penalties for liable parties
Energy (Electricity) (Charge) Act 2000. who fail to meet their purchase obligation
10000
9000
Hydro
8000 Wind
GWh per annum
2000
1000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
are to be capped at 40.00 AUD/MWh. The Table 9.1 Targets for new renewable
measure is designed to allow the market electricity generation
to find the least-cost response for meeting
the target and to develop innovative TARGET FOR
responses that would not be as likely to occur ADDITIONAL RENEWABLE
YEAR GENERATION (GWH)
under a centrally-administered scheme.
2001 300
A Green Electricity Market (GEM) is being 2002 1100
developed by the Australian Electricity 2003 1800
Industry to establish a new electronic 2004 2600
trading platform for trading green 2005 3400
electricity rights, including the RECs. GEM
2006 4500
will support the REC market using an
2007 5600
Internet-based registry and exchange, which
will allow members to trade the value 2008 6800
attached to the green nature of electricity 2009 8100
produced by renewable generation sources. 2010-2020 9500
This green nature value can then be
separated from the actual electricity,
allowing the electricity to be sold to the installation of up to 900 MW or more of wind
wholesale market while the green nature turbines by 2010. Individual targets for each
value is traded on the new exchange. There renewable energy source have not been
is potential for this type of market to established in the measure.
become global.
An effective reporting and monitoring
Industry estimates of the contribution from framework for the National Greenhouse
wind energy toward achieving the national Strategy (NGS), previously released in 1998,
target vary. One possible scenario is shown has been established to monitor Australias
in Figure 9.1, which could necessitate the emissions relative to its Kyoto target of
limiting growth in greenhouse gas emissions Program in late 1999. There are a large
to 8% above 1990 levels from 2008 to 2012. number of potential diesel installations
The reporting requirements incorporate and where renewables such as wind can
include information on emissions projections, supplement diesel generation.
emissions performance monitoring, and
See Table 9.2 and Table 9.3 for further
progress toward implementing NGS
details on each installation and the
measures and evaluating their effectiveness.
planned installations. The two wind farms
As part of the Emerging and Renewable completed in 2000 were Windy Hill and
Energy Action Agenda, a Renewable Energy Blayney.
Action Agenda Discussion Paper titled,
Stanwell Corporation has completed the
New EraNew Energy, was released in
installation of 20 Enercon E40 turbines at
2000. The paper sets out the current status of
the Windy Hill site near Ravenshoe in
Australias sustainable and renewable
Queensland. The 12-MW project
energy industry, the energy markets,
commenced in November 1999 and was
market drivers, and impediments to growth.
commissioned in September 2000.
The vision for the industry is described as
Renewable Energy Industry4 Billion In October 2000, the New South Wales (NSW)
AUD in Annual Sales by 2010. The Action Energy Minister officially opened the
Agenda describes five key strategies for 18 million AUD Blayney wind farm, the
achieving the industrys vision: continuing biggest in NSW. Blayney uses 15 Vestas
market development, building community V47-660 wind turbines that are the most
commitment, building industry capability, powerful turbines in the country, making
establishing the policy framework, and it one of the largest and most efficient
encouraging a culture of innovation. Actions operations in Australia. With a 10-MW
critical to achieving the vision have been capacity, the farm will produce enough
identified, and a number of initiatives are power to supply the annual electricity
described. needs of 3,500 average Australian homes.
The wind farm is owned and operated by
9.3 COMMERCIAL
Eraring Energy and designed and built by
IMPLEMENTATION
Pacific Power, with electricity retailer
9.3.1 Installed Wind Capacity Advance Energy purchasing the energy.
The wind farm is located on private
The installed capacity of wind turbines
grazing land. The development of the
(>25 kW in size) reached over 32 MW at
wind farm was assisted and supported by
the end of 2000. Approximately 28 MW
the NSW Government's Sustainable
are grid-connected, and the remainder are
Energy Development Authority.
in remote wind-diesel power systems.
This increase in wind power capacity for Tourism and education are other major
2000 includes 22 MW added to the national spin-offs causing the farm to become a
total from two grid-connected wind farms. country landmark, such as the Parkes
The prospects for future large grid- Telescope. Economic benefits will spread
connected developments are excellent, with throughout the central west including
announcements made on the planned Bathurst, Orange, and Cowra.
completion of up to120 MW in 2001 and
up to 180 MW in 2002. The prospects for In addition to the Blayney Wind Farm,
wind-diesel power systems are also Eraring Energy also owns a 5-MW wind
excellent, with the introduction of the farm at Crookwell, NSW, which was the
Renewable Remote Power Generation first grid-connected wind farm in Australia.
A number of wind farms were also in Toora wind farm, also being developed by
various stages of development at the end of Stanwell Corporation, has received initial
2000 as summarized in Table 9.2 and in approval for the approximately 20 MW of
Table 9.3. development. The estimated completion
date for this site is late 2001.
Stanwell Corporation has commenced the
planning and approval process for the In Western Australia, a number of
second stage of the Windy Hill wind farm private companiesas well as the State
on the Atherton Tablelands in Queensland. Government-owned utility, Western Power
The plan is for an additional 13 MW of undertook work in relation to wind
turbines at the site. energy developments. A combination of
ESTIMATED PLANNED
SITE DEVELOPER STATE CAPACITY-MW COMPLETION
Codrington Pacific Hydro VIC 18.20 2001
Albany Western Power WA 21.60 2001
Corporation
Toora Stanwell VIC 20.00 2001
Corporation
Exmouth Western Power WA 0.06 2001
Corporation
Lake Bonney Babcock and Brown SA 120.00 20012003
Woolnorth Hydro Tasmania TAS 10.50 2002
Windy Hill Stanwell QLD 13.00 2002
(Stage 2) Corporation
Woolnorth Hydro Tasmania TAS 120.00 2002 2006
Cape Nelson Pacific Hydro VIC 140.00 2003
Cape Sir William
Grant
Yambuk
Cape Bridgewater
Uley Basis Babcock and Brown SA 60.00 2002
King Island Hydro Tasmania TAS 1.20 2002
Geraldton Private Company WA 104.00 2002
Geraldton Private Company WA 5.40 2002
TOTAL 633.96
Table 9.3 Australian wind turbine installations at end of 2000 (over 20 kW)
COMMISSIONING LOCATION NO./KW TOTAL MW
1987 Breamlea, VIC 1 x 60 0.060
1988 Flinders Is., TAS 1 x 55 0.055
1988 Salmon Beach, Esperance, WA 6 x 60 0.360
1991 Coober Pedy, SA 1 x 150 0.150
1992 Ten Mile Lagoon, Esperance, WA 9 x 225 2.025
1996 Coconut Is., QLD 1 x 25 0.025
1996 Flinders Is., TAS 1 x 25 0.025
1997 Armadale, WA 1 x 30 0.030
1997 Kooragang, NSW 1 x 600 0.600
1997 Thursday Is., QLD 2 x 225 0.450
1998 Crookwell, NSW 8 x 600 4.800
1998 Huxley Hill, TAS 3 x 250 0.750
1999 Epenarra, NT 1 x 80 0.080
1999 Murdoch, WA 1 x 20 0.020
1997 & 1999 Denham, WA 3 x 230 0.690
2000 Blayney, NSW 16 x 660 10.600
2000 Windy Hill, QLD 20 x 600 12.000
TOTAL 32.720
development joint venture called the Wind with a combined potential of more than
Energy Corporation. 140 MW. The projectslocated at Yambuk,
Cape Sir William Grant, Cape Nelson, and
The 18.2-MW Codrington wind farm,
Cape Bridgewaterhave been granted
Victorias first commercial wind farm, is
Major Project Facilitation Status by the
under construction by Pacific Hydro on
Commonwealth Government. This large-
the states south coast. Installation and
scale development is expected to lead to
commissioning of the 14 1.3-MW AN
increased local manufacturing. Australian
Bonus turbines is expected in mid-2001.
content is set to rise from the current 40%
Hampton Wind Energy Park is being to possibly 95%.
developed as a model of smaller wind
farm projects for Australia. The privately Hydro Tasmania continues to seek
owned farm by Hickory Hill Wind Energy development approval for a 130-MW wind
is to consist of two 660-kW Vestas turbines. farm and Transmission Line connection
Planned to fit the niche between the in the northwest of Tasmania. Development
kilowatt class machine installations and has been hampered by the assessment of
the larger project developed by Generation the project at three levels of Government.
Company using megawatt class machines, Meanwhile, construction planning for the
projects similar to this project could be first 10.5 MW of the development is well
developed and operated by local farmers underway with construction expected to
and community groups similar to what commence in late 2001 and commissioning
has occurred in Europe. in 2002 of the six 1.75-MW Vestas turbines.
Pacific Hydro has commenced the first Two additional wind turbines are to be
stage of the approval process for a major installed in Hydro Tasmanias Huxley
wind farm development in southwest Hill wind farm on King Island, Tasmania,
Victoria. The development consists of four in an innovative project that will
wind farm sites based around Portland, dramatically increase the proportion of
International Energy Agency 53
AUSTRALIA
50 35
45
30
40
Capacity installed (MW)
15 10
10
5
5
0 0
1986 1988 1990 1992 1994 1996 1998 2000
Year
Combined cycle
0.5%
Gas turbine Wind
0.9% 0.02%
Internal combustion Hydro
0.3% 8.6%
Steam (coal)l
89%
Figure 9.4 Contribution of wind to national energy demand
State Governments and their agencies, New South Wales (NSW), Queensland
including Sustainable Energy Development (QLD), and Western Australia (WA) have
Authority of NSW and Sustainable Energy been the most active in the installation of
Authority of Victoria, are also providing wind turbines over the last decade,
56 IEA R&D Wind Annual Report 2000
NATIONAL ACTIVITIES AUSTRALIA
TOTALS 76 32.72
followed by Tasmania, as shown in The market price for electricity from wind
Table 9.5, Victoria is expected to catch up farms is to be set by the following
in the next few years if installations are sources.
constructed as planned.
Spot price on the national or state
9.5.2 Operational Experience electricity markets (varies due to
dependence on market price).
An estimated, 42.3 GWh of energy was
produced by wind generation in 2000 and Value of the renewable energy certificate
is double that produced in 1999. Estimates (varies due to dependence on market
of the energy generated are shown in price).
Table 9.2. (Caution should be applied to use Green power component (premium set
of these estimates, as actual production by retailers who sell the electricity
figures are not reported in Australia.) product to consumers).
There are no reports from any of the current
installations available at the time of this Emission reduction rights (a premium
report. that is starting to be provided in advance
of the establishment of an international
9.5.3 Main Constraints on Market trading in carbon).
Development
The spot price for electricity has risen in the
Market development constraints consist national electricity market over the last year
mainly of market price for electricity from to typically 25.00 to 35.00 AUD/MWh, and
renewable sources, access to the grid for the indications are that it will continue to
export of power, and planning approval. rise in the long term as demand starts to
reach the capacity to generate and distribute machines. Most data is either old, in an
electricity. Higher typical spot prices have inappropriate format, or produced for a
been observed in states not connected to developer and commercially confidential.
the national grid.
The wind resource is not the only factor
There is no precise data available on the governing the choice of a wind farm
contribution from the certificate or green because wind farm developers currently
power. Estimates of the value of certificates can make predictions using limited wind
range from 20.00 AUD/MWh to the price monitoring and wind flow modeling.
cap of 40.00 AUD/MWh. The value of However, a wind atlas does give an
embedded generators to the distribution indication of the magnitude of the wind
network operator may increase the return resource and wind farm development
to the wind farm. In the longer term, carbon potential that should be brought to the
trading credits may also increase the return. attention of local, state and commonwealth
governments.
The level of current wind energy
development, mainly embedded generation, 9.6 ECONOMICS
has not been constrained to date by the
provision of a grid connection. Although, 9.6.1 Trends in Investment
developments now in the pipeline, some No trend information is available.
of which are listed in Table 9.3, could not
be classed as embedded generation. These 9.6.2 Trends in Unit Costs of Generation
installations require dedicated or shared and Buy-Back Prices
access transmission lines to connect to the Most of this information is commercially
grid. Some of these developments are sensitive and confidential in Australia for
appearing to be constrained and will require existing wind farms. It is expected that as
planning and coordination between wind the market for renewables is established,
farm developers, electricity transmission data should become available for new
companies, large electricity consumers, wind farms. Some information is becoming
and state governments. Coastal Victoria is available from Government Authorities.
leading Australia in the incorporation of The Green Energy Market may provide
potential wind farm areas into their land valuable information in the future.
planning processes. Active promotion of
these areas has generated extensive inter- 9.7 INDUSTRY
est from wind farm developers and other 9.7.1 General Information
stakeholders. Other areas of Australia are
A survey conducted in 2000 by the
now making efforts to either allow for
Sustainable Energy Industry Association
future wind turbines and/or promote
of Australia (SEIAA) found the following
wind developments in their regions.
information.
Lack of Australian standards relating to
The total value of the industry is on the
wind turbines (particularly noise) and
order of 8 billion AUD and is increasing
guidelines for wind farm development
at 28% per year.
continue to be an issue.
Total economic effect is between
New South Wales is developing a wind
18 billion AUD and 26 billion AUD.
atlas for that state (see Section 9.8.2).
Other than this, Australia does not have Employment within the industry was
any wind atlas information available for more than 22,000 and growing at 12%
use by prospective developers of wind per year; the flow on effect was about
installations for either small or large three times this number.
ACRE, Curtin University of Technology, system that makes better use of current and
Industrial Research, PowerSearch, Power future wind energy generation on King
and Water Authority, and Western Power Island, thereby reducing diesel consumption
are developing a power conditioning and associated with existing power-generating
control system for high wind penetration, facilities. The system comprises a number
medium-scale, wind-diesel power systems. of components, including a battery and
A prototype has been tested at Epenarra inverter system, a pumped storage mini-
using a wind/PV/diesel/battery hybrid hydro system, several demand-side load
power system with an 80-kW Lagerwey management systems, and an integrated
wind turbine. renewable energy control system.
Figure 9.7 Schematic of King Island wind-diesel hybrid power system with mini-hydro
pumped storage, batteries, and inverter
9.9 REFERENCES
www.hydro.com.au
www.energy.com.au
Author: Robert Stewart, Hydro Tasmania,
Australia.
CANADA
CHAPTER 10
the Climate Change initiative. These include blades for 25-kW to 750-kW wind
renewable energy deployments. The funds turbines and is presently commencing
from this program can be accessed for pilot production of blades for the 1-MW
wind energy projects that involve nearly to 2-MW range.
developed technologies ready for field trial
in the short term. So far, 3.5 million CAD 10.7.2 Industry Development and
has been accessed to leverage projects Structure
sponsored by WERD. In 2000, approximately Industries that are related to wind turbine
300,000.00 CAD of these funds was accessed. manufacturing and deployment activities
include control systems manufacturers,
10.6.2 Trends in Unit Costs of Generation inverter and tower manufacturers, wind
and Buy-Back Prices resource assessment firms, and wind farm
Electricity deregulation in Alberta resulted developers.
in the restructuring of government-owned
utilities into a free-market system. Full 10.8 GOVERNMENT SPONSORED
retail competition between power generators R,D&D
began on 1 January 2000. This process has 10.8.1 Priorities
allowed wind generators freer access to the
The focus of the Canadian national wind
electrical grid. In Ontario, a similar process
energy program continues to be on R&D
is underway, though full competition is
to develop safe, reliable, and economic
not scheduled to commence until after
wind turbine technology to exploit
November 2001. In all other Canadian
Canadas large wind potential, as well as
jurisdictions, the buy-back price is
generally set by the local utility and based support field trials. The program also
on avoided costs. Large wind farms, such supports a national test site: The Atlantic
as the Le Nordais project, have pre- Wind Test Site (AWTS) at North Cape,
negotiated special buy-back rates from the PEI, for testing electricity-generating wind
utility. turbines and wind/diesel systems.
DENMARK
CHAPTER 11
Other regulation and policy instruments Other regulation and policy instruments
Resource assessment Approval and certification scheme
Local ownership Standardization
Agreements with utilities
Regulation on grid connection
Buy-back arrangements
Information programs
Spatial planning procedures
For this reason, Energy 21 expects that in market for electricity from renewable
the longer term, the main part of new energy sources. Also from now on, renewable
development will take place offshore, while energy quotas are to be announced by the
a significant part of the expansion until Government, and all consumers will be
2005 will take place on land. After 2005, obligated to purchase an increasing share
new wind turbine capacity on land will be of electricity from renewable energy. A
effected, among others, by renovation of quota will be laid down requiring 20% of
wind turbine areas as well as by the the electricity consumption be covered by
removal or replacement of existing wind RE at the end of 2003. Because wind power
turbines in accordance with regional and is the most developed, and one of the
municipal planning. cheapest ways to save CO2, a major part
of the renewable energy is going to be
In 1999, an electricity reform was introduced,
wind power. The Government intends to
and a number of new bills for the Danish
continue its promotion of the employment
electricity sector were approved by
and export opportunities by continued
Parliament. The reform contributes to
research and development.
ensuring the fulfilment of the long-term,
international environmental commitments 11.2.2 Progress Towards National Targets
from 2008 to 2012. The agreement covers the
first four years from 2000 to 2003, and is a Because Denmark is a densely populated
framework for CO2 emissions from the country, the Danish onshore wind resource
is limited by zoning restrictions and the
electricity sector and for the development
balance between wind energy development
of renewable energy.
and other claims or interests in the open land.
For 2000 to 2003, a ceiling has been Therefore, most of the 205 municipalities
established for the total electricity sectors have prepared wind turbine plans. The
CO2 emission: 23 million tons in 2000, Danish Energy Agency has analyzed this
22 million tons in 2001, 21 million tons in local planning and estimates the onshore
2002, and 20 million tons in 2003. The wind energy potential to be between
ceiling is to be expressed in CO2 quotas, 1,500 MW and 2,600 MW.
which will be split among the electricity
Several investigations of the offshore wind
production companies. The ceiling will make
resources have been prepared since 1977.
it possible to incorporate environmental
As a result, two demonstration projects have
commitments in the electricity companies
been finalized. In July 1997, a plan of action
planning of future investments and
for offshore wind farms was submitted to
operational dispositions. If the annual quota
the Minister of Environment and Energy.
is exceeded, the production companies must
The plan was prepared by two utility
pay the state the sum of 40.00 DKK/ton
associations, Elkraft and Elsam, together
CO2.
with the ministrys Energy Agency and
The rising share of electricity consumption Environmental Protection Agency.
will in the future be covered by electricity
In the plan of action, eight areas available
produced from renewable energy sources
with water depths up to 15 m are included.
when a more competition-based market
The wind speeds in the areas allow 3,530
mechanism, that can ensure the cost-
net full-load hours per year at the North
effective development of renewable
Sea (Horns Reef) and between 3,000 and
energy production, has been introduced.
3,300 hours in interior Danish waters.
This requires certification of electricity from (Hub heights of 55 m and rotor diameters
renewable energy sources, which creates a of 64 m are anticipated.) This should be
basis for the gradual development of a compared to inland conditions of 2,000 to
% OF ANNUAL
REALISTIC REALISTIC ELECTRICITY
CAPACITY PRODUCTION CONSUMPTION
Onshore 2,600 MW 5.7 TWh 1718%
Offshore 12,000 MW 3040 TWh 100%
2,500 hours. The total capacity for electricity wind turbine installations is shown in
production is estimated in Table 11.2. Figure 11.1.
In Energy 21, the targets for installed wind 11.3.2 Rates and Trends in Deployment
energy are 1,500 MW of wind power by
The deployment rate in Denmark in
2005 (12% of electricity consumption) and
numbers and electrical capacity are shown
5,500 MW of wind power by 2030 (40% to
in Table 11.3. The deployment has been
50% of electricity consumption), out of which
almost constant since 1996, adding
4,000 MW will be offshore. As shown later,
approximately 300 MW of wind power
the targets for onshore wind power have
capacity onshore annually. The average
already been surpassed, while the off-
size of the installed wind turbines has grown
shore development is just beginning.
gradually, from 760 MW in 1999 to 825
11.3 COMMERCIAL kW during the first nine months of 2000.
IMPLEMENTATION 11.3.3 Contribution to National Energy
11.3.1 Installed Capacity Demand
During 2000, new installed capacity reached ThThe total electricity production in 2000
a record of approximately 585 MW. By the is estimated to be approximately 4,242
end of 2000, the total installed capacity of GWh, which is approximately 12% of the
wind turbines was approximately 2,338 MW. total electricity demand in Denmark, esti-
By February 2001, final statistics for 2000 mated as 34,870 GWh. The wind's energy
were not yet available. The accumulated index, which describes the energy in the
wind turbine capacity of private and utility wind of a normal year, was 95% in the
2500
3 quarters of 2000
2000
Utilities
MW installed
1500 Private
1000
500
0
80 82 84 86 88 90 92 94 96 98 00
Year
Table 11.3 Installed wind turbine capacity and development in size (Year 2000 only
third quarter included), Source: E&M Data for the Danish Energy Agency
YEAR OF AVERAGE
INSTALLATION NUMBER POWER (KW) POWER (KW)
Before 1990 2,601 258,169 99
1990 385 81,913 213
1991 372 74,136 199
1992 217 45,230 208
1993 142 36,399 256
1994 135 48,604 360
1995 191 92,017 482
1996 400 205,853 515
1997 536 300,445 561
1998 462 312,925 677
1999 426 323,926 760
2000 406 335,649 825
year 2000 (E&M-Data). The development payment for wind-generated electricity has
in the wind energy index is shown in been related to the utilities production
Figure 11.2. and distribution costs (tariffs). A law has
obligated the power utilities to pay wind
11.4 SUPPORT INITIATIVES AND turbine owners a kWh rate of 85% of the
MARKET STIMULATION utilitys production and distribution costs
INSTRUMENTS (85% of 0.37 DKK to 0.45/kWh in 1998).
11.4.1 Main Support Initiatives and Market Up to now, the Government has reimbursed
Stimulation Incentives wind-turbine owners the 0.10 DKK/kWh
CO2 tax and added 0.17 DKK/kWh in
The utilities are obliged by law to connect direct subsidy. As a result, in 2000 the
private wind turbines to the grid, and to average selling price of electricity from
receive and pay for wind-generated private wind turbines was approximately
electricity. Different arrangements have 0.60 DKK/kWh.
existed over the years. Since 1993, the
140
120
100
Energy index
80
60
40
20
0
80 82 84 86 88 90 92 94 96 98 00
Year
Figure 11.2 Energy in the wind energy index in Denmark 19802000
70 IEA R&D Wind Annual Report 2000
NATIONAL ACTIVITIES DENMARK
Table 11.4 Bodies authorized by the Danish Energy Agency to provide services under the
Danish scheme for certification and type-approvals for wind turbines (December 2000)
Table 11.5 Status for wind turbines in Denmark (3rd quarter of 2000 included).
Source: E&M-Data for the Danish Energy Agency based on reports from manufacturers
interest rates have decreased, prices for replaced or renewed in a shorter interval.
wind power electricity have slightly Consumables, such as oil in the gearbox
increased, and laws for facilitating and braking clutches, are often replaced
structural changes in the farming sector with intervals of one to three years. Parts
have unintendedly opened up new of the yaw system might be replaced in
possibilities for farmers. intervals of five years. Vital components
The contribution and the total capacity of exposed to fatigue loads, such as main
wind power as of the first three quarters bearings and bearings in the gearbox,
of 2000 are listed in Table 11.5. might be replaced halfway through the
total design lifetime, which is dealt with
11.5.2 Operational Experience as a re-investment.
Technical availability of new wind turbines Operation and maintenance costs include
in Denmark is usually in the range of 98% such elements as service, consumables,
to 100%. The Danish Wind Turbine Owners repair, insurance, administration, and lease
Association is responsible for recording of site. The Danish Energy Agency, E&M-
operational experiences. The results are Data, and Ris. National Laboratory have
published in the association's magazine, developed a model for annual operation
Naturlig Energi. On a voluntary basis, and maintenance costs. The model is based
2,830 turbines, with a total installed on statistical surveys and analyses in 1991,
capacity of 700 MW, regularly report 1994, and 1997. The model includes a large
operational data to this database. reinvestment after the tenth operational
Technical lifetime or design lifetime for year on 20% of the cost of the wind turbine.
modern Danish machines is typically This reinvestment is distributed over the
20 years. Individual components are to be operational years ten to 20. See Table 11.6.
Table 11.6 Annual operational and maintenance costs as a percent of investment in the
wind turbine. Source: Danish Energy Agency, E&M-Data and Ris National Laboratory
MACHINE SIZE YEAR 12 YEAR 35 YEAR 610 YEAR 1115 YEAR 1620
In an ongoing project, both the technical for private investors; and the regulations
and the economical lifetimes of wind on offshore wind power.
turbines are investigated. The work is
Up to 1999, utilities built the two small,
concerned with machine sizes of 55, 150,
5-MW, offshore demonstration wind farms
225, 300, 500, 600, 660, and 750 kW, and it
at Vindeby and Tun. with permissions
is based on empirical data from a major
granted by the Government based on
questionnaire inquiry, which has been sent
existing regulations. Except for the offshore
to approximately 2,500 wind turbine owners
wind farm at Mideelgrunden, installed in
in Denmark. The returned data has been
2000, no other applications have been
merged with the database mentioned above.
granted with the argument that further
The first results on the operational
investigations were needed in connection
experience are gathered in Table 11.7. The
with large-scale demonstration projects.
first part of this table shows the costs of
reparation and maintenance, while the The Danish Government has supported
second part presents the total O&M costs, several studies and appointed a govern-
which includes costs such as insurance, mental committee to investigate the
service, administration, and site rental. It is regulatory conditions for offshore wind
normally expected that O&M costs increase power installations. The committee has
over time. Nevertheless, the empirical costs reported twice, in 1987 and 1995.
on the 55 kW machines are actually Beyond selecting the sites for the small
decreasing after ten years of operation as demonstration farms and the new large-
observed in Table 11.7. scale farms, all interest in Danish waters
have been mapped. A set of recommendations
11.5.3 Main Constraints on Market for future installations has also been given
Development based on input from authorities and different
surveys carried out over the past years.
Since the mid-90s, the Danish markets
significant size has remained remarkably The conditions for future offshore farms
constant. The main constraints are spatial have now been laid down in the new
planning; the legislation in 1999 on the electricity bill approved by the Parliament
electricity reform, which has caused in May 1999, as a result of the reformation
uncertainty on the future buy-back rates of the Danish electricity sector. According
Table 11.7 O&M costs in DKK/kW after machine size and year. Source: Danish energy
Agency, E&M-Data and Ris National Laboratory.
MACHINE SIZE YEAR 0-4 YEAR 5-9 YEAR 1014 FROM YEAR 15
MACHINE SIZE YEAR 0-4 YEAR 5-9 YEAR 1014 FROM YEAR 15
to the bill, the right to exploit energy from cost was typically 3.1 to 3.5 million DKK,
water and wind within the territorial and for 750-kW machines installed in
waters and the economical zone (up to 1998, the cost was 3.4 to 4.1 million DKK,
200 nautical miles) around Denmark depending on rotor diameter and tower
belongs to the Danish Government. height.
The bill also outlines the procedures for Availability of capital for wind power
the approval of electricity production from projects is not a problem. Financial
water and wind, and pre-investigation of institutions compete efficiently on this
such within the national territorial waters market, and different financial packages
and within the economical zone belonging have been developed. Typical projects are
to Denmark. Permission will be given for financed over ten years.
a specific area, and if the constructions are
expected to have environmental impact, an Additional costs depend on local
environmental assessment must be carried circumstances, such as soil conditions,
out. road conditions, and proximity to electrical
grid sub-stations. Additional costs on
To ensure optimal development in the best typical sites can be estimated to approxi-
areas, a central tender procedure will mately 20% of total project costs. Only the
be established. But also an open door cost of land has increased during recent
procedure will be followed, allowing years. Based on information from 65 new
approval of projects without previous call 660 to 1000-kW wind turbine projects, the
for tenders, especially for smaller projects average cost of a 1000-kW wind turbine
closer to the coast. project is estimated in Table 11.8.
11.6 ECONOMICS
11.6.2 Trends in Unit Costs of Generation
11.6.1 Trends in Investment and Buy-Back Prices
The ex-works cost of wind turbines has The production cost for wind generated
decreased significantly with the latest 600 electricity per kWh has decreased rapidly
and 750-kW generation of machines (44 to over the last 18 years, and today the costs
48 m rotor diameter). For 600-kW machines are getting close to the cost of electricity
installed in 1997 and 1998, the ex-works production from a new coal fired power
Table 11.8 Cost of a 1000-kW wind turbine project. Source: E&M-Data, Nov 2000.
station based on condensation. The established and the turbine owners are
estimated cost is shown in Figure 11.3. guaranteed a price between 0.10 and
0.27 DKK/kWh.
1.4
At the same time, a transition period is
1.2 introduced for existing turbines erected
before the end of 1999 to ensure reasonable
1 depreciation terms for investment already
made. A settlement price of 0.33 DDK/kWh
DKK/kWh
households in the range of 5.5 kW, 11 kW, generators and larger rotor diameters. The
and 22 kW. Calorius-Westrup A/S makes wind turbine types on the Danish market
a 5-kW, heat-producing turbine. are shown in Table 11.9. For most of the
types, a number of versions with different
A number of industrial enterprises have tower heights can be supplied.
developed important businesses as
suppliers of major components for wind The sales of the Danish wind turbine
turbines. LM Glasfiber A/S is a world- manufacturers have increased from
leading producer of fibreglass blades for 1,905 MW in 1999 to 2,100 MW in 2000,
wind turbines. DanControl Engineering which is a growth of 10%. Although
A/S, Mita Teknik A/S, and DWC A/S significantly less than last years growth
produce controller and communication of 56%, the development corresponds well
systems. Svendborg Brakes A/S is a leading with the industrys anticipated growth of
vendor of mechanical braking systems. 10% to 20% annually. Machines of 600 MW
Also, Danish subsidiaries of large have been sold to the Danish market, hence
international industriessuch as Siemens, the export turbines in 2000 is expected to
ABB, SKF, and FAGhave developed be 4,500 MW, bringing the total global
businesses in the wind power industry. wind turbine capacity up to approximately
18,500 MW. Danish wind turbine manu-
11.7.2 Industry Development and Structure facturers have maintained a market share
of approximately 50%.
Industrial development in 2000 focused
on refining the megawatt generation of Service and maintenance of the more than
turbines. This includes, among other things, 5000 wind turbines in Denmark is carried
upgrading the turbines with larger out by the manufacturers service
Table 11.9 Wind turbines (>100 kW) on the Danish market. Energi-og Miljdata (EMD),
Nov. 2000
EXTRA ROTOR
NOMINAL GENERATOR DIAMETER POWER
MANUFACTURER TYPE POWER (KW) (KW) (M) REGULATION
BONUS 600 MK IV 600 120 44.0 Stall
BONUS 1.3 MW 1,300 250 62.0 Ac stall
BONUS 2 MW 2,000 400 76.0 Ac stall
NEG MICON NM600/43 600 150 43.0 Stall
NEG MICON NM600/48 600 150 48.0 Stall
NEG MICON NM750/44 750 200 44.0 Stall
NEG MICON NM750/48 750 200 48.0 Stall
NEG MICON NM900/52 900 250 52.0 Stall
NEG MICON NM1000/60 1,000 250 60.0 Stall
NEG MICON NM1500C/64 1,500 375 64.0 Stall
NEG MICON NM2000/72 2,000 500 72.0 Ac stall
NORDEX N27/150 150 30 27.0 Stall
NORDEX N43/600 600 125 43.0 Stall
NORDEX N50/800 800 125 50.0 Stall
NORDEX N60/1300 1,300 250 60.0 Stall
NORDEX N80/2500 2,500 250 80.0 Stall
NORWIN N46-ASR 599 125 46.0 Ac stall
NORWIN N47-ASR 599 125 47.0 Ac stall
NORWIN N46-ISR 750 180 46.0 Ac stall
VESTAS V47 660 200 47.0 Pitch
VESTAS V52 850 0 52.0 Pitch
VESTAS V66 1,750 0 66.0 Pitch
WINCON W250/29 250 0 29.0 Stall
WINCON W600/45 600 0 45.0 Ac stall
WINCON W755/48 755 200 48.0 Ac stall
departments, but also a handful of 21 projects were proposed, asking for 49.3
independent service companies have been million DKK in support to projects with a
established. These are companies such as total budget of 79 million DKK.
DWP M.lleservice A/S and DanService
The Ministry of Environment and Energy
A/S. Some of the electricity companies
also runs a program for development,
service their own turbines.
demonstration and information of renewable
Other industrial service enterprises have energy (UVE), and the Energy Agency
created important businesses in servicing makes the administration of the program.
the wind power industry. For example, The program so far has been renewed
companies are specialized in providing every three years, and currently projects
cranes for installations of wind turbines are initiated through a standing call for
as well as providing transport of turbines, proposals. There is no deadline for project
towers, and blades domestically and for proposals, but they are debated at regular
export. The major Danish consultancies in meetings by the Technical Advisory
wind energy utilization are BTM Consult Committee. Projects are always shorter
Aps, E&M Data, ElsamProjekt A/S, WEA than three years. In 2000, projects were
Aps, and Tripod Aps. There is one major supported by the Danish Energy Agency
independent developer of wind farms in with a total of 9.6 million DKK.
Denmark: Jysk Vindkraft A/S, which
For the program areas of wind energy,
sells turnkey projects to farmers and
biomass, and solar energy, the ministry
co-operatives.
and the Energy Agency are advised by
11.8 GOVERNMENT SPONSORED technical advisory committees. The
R,D&D technical advisory committee on wind
power is identical to the Research
11.8.1 Priorities Committee in the Energy Research Program.
The Danish Government has two sponsored This ensures a good co-ordination of the
programs. The first is the Ministry of activities within the two programs.
Environment and Energys Energy Research
As a part of its program, the Danish
Programme (EFP). During recent years, a
Energy Agency operates test stations for
part of the research program has been
different renewable energy technologies.
allocated to energy issues in Eastern Europe
One is the Test Station for Wind Turbines
and the former Soviet Union. The Energy
at Ris National Laboratory. The activities
Agency makes the administration of the
of the Test Station for Wind Turbines are
program. Practically all projects are initiated
negotiated each year, and the budget for
through the annual call for proposals,
the Test Station task at Ris was
issued by each Research Committee. The
5.8 million DKK in 2000.
deadline for project proposals is normally
in the beginning of September. Projects In addition to the Government R&D
normally run over two or three years and programs, the system operators (ELTRA
funding is given at the end of each year. and Elkraft System) have PSO-subsidized
In almost all projects, several partners R&D programs concerning new and
participate, and industrial participation environmentally friendly energy
and co-financing is encouraged. The technologies. Prioritized issues include
Danish Energy Agency typically finances efficiency, costs, and reliability of the
50% to 85% of the total costs. In the 2001 wind turbines; regulation and forecasting
round (processed in 2000), five wind of production; and environmental impact
energy projects were supported with total and maintenance. Call for proposals have
amount of 11.98 million DKK. In total, been issued with 15 October 2001 as the
deadline, and a number of wind projects Danish energy situation from a long-
have been chosen for support. The term perspective and establish the
programs include development of renewable basis for new political initiatives.
energy technologies, including wind power.
Contribute to achieving political goals
The final approval rests with the Danish
other than those affiliated with energy
Energy Agency.
issues, such as the country's economical
International co-operation on wind energy development, environmental improve
R&D is emphasized by the Danish Energy ments, industrial development,
Agency. Denmark has participated in the employment, and export.
international co-operation in IEA R&D
Contribute to a global sustainable
Wind since its establishment.
development through dissemination of
Danish universities, research centers, power Danish developed technology and
utilities, and manufacturing industries knowledge adapted for the conditions
participate in the European Unions RTD in developing counties and countries in
programs. However, no quantitative data East Europe
is currently available.
In recent years, the Danish energy research
Active Danish participation in international program has emphasized the uncertainties
standardization in IEC and CEN/CENELEC and challenges associated with wind
has a high priority, and R&D efforts development offshore. In 1999, new R&D
supporting international standardization projects included wind resources and
are encouraged. forecasting offshore, integration of large
offshore wind farms in the electricity
11.8.2 New R, D&D Developments system, and development of large wind
In 2000, The Danish Energy Agency issued turbines. This year, the call has emphasized
a new strategy and action plan for the R&D on components (e.g., gears), design
energy research and the development conditions, electricity system integration,
program for wind. The new plan is a and environmental impact. Project titles in
development of the previous energy the 2000 round of the research program
research program but puts more emphasis for wind power include the following.
on long-term R&D. The key areas for Aeroelastic Research Programme
future R&D projects follow. 2001-2002
Wind turbine technology. Turbine dynamics and gear loads.
Wind resources and climate 3-D wind simulator for determination
Integration of wind turbines in the of extreme and fatigue loads.
electrical power system. Improved design basis for large wind
Environmental effects from wind turbine blades made of composites.
turbines. Electrical design and controla
The overall aims of the energy research simulation platform for modeling,
program follow. optimization, and design of wind
turbines.
Contribute to the realization of the goals
of the energy policy through short-term Descriptions (in Danish) of the projects are
research activities. available at the Danish Energy Agencys
Web site located at www.ens.dk.
Support long-term and strategic research,
which can significantly improve the
The overall aims of the renewable energy Today two demonstration farms are in
development programs wind part are as operation: Vindebys 4.95 MW turbine
follows. and Tun. Knobs 5-MW turbine, as well as
a commercial 40-MW wind farm jointly
To promote the technical possibilities
owned by the utility in Copenhagen and a
for utilization of wind power in Denmark
private co-operative at Middelgrunden.
through research, development, and
demonstration of new and better wind The 40-MW project at Middelgrunden
power technology. 2 km outside the Copenhagen harbor in
shallow water (3 to 5 m deep)has been
To support the optimal utilization of
under construction in 2000, and the
the available sites.
foundations were transported to the site
To participate in removing barriers for during the first part of October. The farm
sustainable utilization of wind energy. comprises 20 2-MW Bonus wind turbines,
which are installed in a row with a
To strengthen the Danish contribution
distance of 2.5 diameters. The wind
in international co-operation.
turbines are connected by a 30-kV grid,
To stimulate Danish industrial and the energy is transported to the power
development and export. plant, Amagervrket, by a 30-kV cable. All
wind turbines were erected in December,
The list of project titles is very long, and
and the first turbine went into operation
contains projects such as development and
on 27 December 2000. The wind farm and
demonstration of small household turbines,
the construction phase are shown in
information activities, economy surveys,
Figures 11.4 and 11.5. Studies financed by
and co-financing some EU-projects.
power utilities, the Danish Energy Agency,
In 2000, the Test Station for Wind Turbines and EU/JOULE indicate a substantial cost
consisted of the following activities. reduction for new 100 to 200-MW offshore
projects: 56% reduction compared to
Information activities.
Vindeby. A more accurate assessment of
International co-operation with other the offshore wind climate and predictions
test stations for wind turbines. of wind loads are important research issues.
Secretariat for the Danish certification Several investigations of the offshore
and type-approval scheme. wind resources have been conducted since
1977, resulting in the finalization of the
Spot-check of type-approved turbines.
two demonstration projects. In July 1997,
Inspections of major break-downs of a plan of action for offshore wind farms
turbines. was submitted to the Minister of
Environment and Energy. The plan was
International standardization.
drawn up by the two electricity utility
Development of test methods for wind associations, Elkraft and Elsam, together
turbines. with the Danish Energy Agency and the
National Forest and Nature Agency. The
Development of test methods for blades.
plan of action includes eight areas with
water depths of up to 15 m. The total
11.8.3 Offshore Wind Energy
theoretical installed capacity of these
In the years to come, utilization of the areas is 28,000 MW, and it was estimated
Danish offshore wind resources will have that about 12,000 MW could realistically
a high priority in the Danish energy be utilized in four major areas. These
research and development programs. areas are west of Horns Rev in the North
Figure 11.4 The Middelgrunden wind farm. Photo by Jens H. Larsen and Mads Eskesen.
Published with the permission of Kbenhavns Milj og Energikontor
FINLAND
CHAPTER 12
80.0
70.0
60.0 Total capacity (MW)
40.0
30.0
20.0
10.0
0.0
1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
Figure 12.1 Development of wind energy production and installed capacity in Finland
1992 to 2000
GERMANY
CHAPTER 13
Table 13.1 Development of wind power in Germany; 250 MW Wind and total, by
December 31, 2000
2001, the data for the year 1999 is used as On a smaller scale, locally, the wind power
the basis. The wind power electricity electricity contribution may deviate even
production is given in Table 13.1. For the higher from the countrywide values. Here
year 2000, wind power contributed about the connection to the grid may be a technical
1.8% to the German public electricity challenge, and in certain cases, grid
consumption. In 1999, this number was 1.3%. connection is limited.
The contribution of all renewable energies,
including hydro power, exceeded 6% of the 13.2.3 Numbers, Type, Make and
total public electricity consumption in 2000. Ownership of Turbines
This number was 6% in 1999. Wind power Statistics of different WEC types built in
electricity could reach the 2% mark in 2001. Germany are shown in Figure 13.1. The
figure also represents the WECs of the
Regionally, the wind power contribution 250-MW Wind-Program from the begin-
to the electricity consumption shows ning of the program in 1990 until today. In
considerable deviations from the mean 1990, many smaller WECs began operation
values in Germany. The share of wind that are no longer on the market. Due to
power was 18% for Schleswig-Holstein, the 250-MW Wind-Program, the statistics
12% for Mecklenburg-Vorpommern, and of ownership is known (see Table 13.3). If
7% for Lower-Saxony. These are the three private individuals, commercial operators,
German coastal states that are not very and operator groups are considered more
densely populated. However, in North or less as private operator forms, 83% of all
Rhine-Westphalia, with almost a third of WECs (80% of the rated power) are
Germanys electricity consumption, the financed with private capital. Commercial
wind power electricity share was 0.8%. operators lead with the average WEC size.
Table 13.2 Distribution of wind power for the 16 German states by December 31, 2000
Berlin .0 0.00
Table 13.3 reflects the development of wind today commercial operators and operator
power in Germany since 1989/1990. At this groups invest in projects with WECs of the
time, farmers and private individuals commercial MW-class of European
bought the smaller WECs available at the manufacturers (see Table 13.4).
early time of wind power utilization, whereas
Table 13.3 Ownership of WECS of 250 MW Wind-Program by January 2000
Other causes
10%
Loosening of parts 3% Component failure 44%
Effect of malfunction
Other consequences 19.7%
Plant stoppage
64.2% Overspeed 2.9%
Overload
0.5%
Noise
3.8%
Vibration 2.7%
Reduced power
Causing follow-up effects 3.3% output 2.9%
Repaired/exchanged parts
Figure 13.2 Failure and repair statistics for all WECs in the WMEP program
Table 13.5 Wind power R&D projects and the WMEP contract phase III and IV
COSTS BMWi
SUBJECT PERIOD (MDEM) (%)
Wind powered desalination 06/93-05/97 3,891.50 70.00
plant, Rgen
Processing of wind measurement 04/92-01/98 607.00 100.00
data up to 150 m for planned
archive of wind data
Special wind data and programs 07/93-06/97 1,641.90 100.00
for complex terrain
Phase III of 250 MW wind 07/96-06/00 13,683.50 100.00
measurement and evaluation
program WMEP
Early recognition of turbine failure 01/94-12/97 1,431.80 50.00
Fatigue loads WECS 07/95-06/97 443.60 50.00
MW WECS inland 06/95-09/99 4,893.60 20.43
Control LS WECS 07/95-06/99 1,192.60 40.00
Active stall rotor blade 08/96-07/98 2,505.98 50.00
Lightning protection WECS 10/96-09/99 600.00 50.00
Development of a 3-4MW WECS 08/98-2000 10,000.00 35.00
Decentralized electrical power 08/99-01/02 813.00 50.00
plants for grids: voltage fluctuations
Integration of decentralized electrical 08/99-01/02 870.00 100.00
power plants for grids
Phase IV, WMEP 07/00-06/04 11,450.00 100.00
Forecast wind medium and large 05/00-10/01 650.00 94.31
utility regions
Aspects of construction and 10/00-09/03 1,670.00 100.00
environment of offshore WECS
Addvanced drive train for LS-WECS 01/01-12/03 1,840.00 40.00
maintain the excellent availability, which density and is short of good wind sites
averages 98%, of wind turbines and a long compared with international criteria. At the
lifetime of the installations. good sites, different users are often
competing. Owing to the necessity of noise
13.4 MARKET DEVELOPMENT emission reduction, a distance of about at
The rated power of the installed turbines least 500 m from the next resident is
has increased significantly over the years. recommended for large-scale WECs.
In 1989 and 1990, the market offered WECs Although the corresponding land around a
with a maximum power of 250 kW. WEC can still be used as farmland, there
Nevertheless, the majority of plants still are a lot of complaints. Over the past few
had a rated nominal power of 100 kW or years, it has become more and more difficult
less. The typical operator was assumed to to get a construction permit for WECs.
be a farmer who produced the electricity
for the needs of his own farm and fed the 13.5 ECONOMICS
surplus electricity into the grid. This
13.5.1 Favorable Boundary Conditions,
situation has rapidly changed due to the
Especially the EEG
technical and price development of WECs.
In addition, the boundary conditions to The rapid market development in the
finance wind power projects were improved late 1980s to the 1990s was driven by the
drastically by different measures (see favorable financing conditions during this
Section 13.5). This created confidence for period. The 250-MW Wind-Program, at
investors in wind power technology and that time the 100 MW-Wind-Program, of
opened a rapidly growing market for BMWi led the way.
European wind turbine manufactures in
Germany. See Table 13.3. The Electricity Feed Law (EFL) became
effective 1 January 1991. Since then, utilities
Most of the WECs erected in 1998 and 1999 have been obligated to pay the same 90% of
had a rated power of 500 kW or more. In the average tariffs per kWh that private
1997, the introduction of the 1,500-kW class consumers had to pay, with taxes of 15%
started very successfully. By the end of 1999, excluded. In 1998, this amounted to 0.1679
the first commercial 2-MW WEC Type N80 DEM/kWh and 0.1652 DEM/kWh in 1999.
by Borsig Energy GmbH with a rotor EFL and the 250-MW Wind-Program
diameter of 80 m was erected, followed soon were cumulative.
by commercial units of this type. R&D for a
3 to 4-MW turbine is on the way (see In April 1998, a modification of the EFL,
Section 13.6.2). The realization of wind came into force. The changes in the EFL do
power offshore projects was discussed not affect this refunding but specify the
during 2000 and is being considered as a financial charges of the different utilities
wind power market in the near future. Most of the German grid and set a date for
of the production by German companies is reconsideration. But in 1999, a completely
still sold inland, but export is considered as new renewable energy law was prepared
a further option. So far, the inland market by the German government. The law with
is booming despite obvious constraints in a the name Gesetz fr den Vorrang
densely populated country like Germany. Erneuerbarer Energien (Erneuerbare-
Energien-Gesetz or EEG for short) came
Constraints, starting in the German coastal
into force by 1 April 2000. The general
areas, include complaints that wind turbine
contents of this law follow.
installations are destroying the landscape
and disturbing wildlife and birds. Neighbors Obligation on electricity grid operators
of WECs complain of noise and shadow to give priority access to all renewable
effects. Germany has a high population electricity.
Fixed tariff for each renewable. model. The output of actual turbines will
be compared with the equivalent reference
Rules on grid connection and grid
model.
reinforcement
In addition to the reimbursement according
Mechanism to spread the tariff costs
to the EFL, a wind turbine operator might get
equally across all grid operators
soft loans. The Deutsche Ausgleichsbank
(renewable quota arrangement)
offers soft loans for WECs, while some
Operators of wind turbines should receive other states, especially in the German
at least 0.178 DEM/kWh for the first five inland, still conduct programs with direct
years of operation. From the sixth year, the funding (Nordrhein-Westfalia).
tariff for turbines that have generated 150%
13.5.2 Influence of Parameters
more power than a defined standard
turbine will drop to at least 0.121 DEM/ Over the last ten years, a market for wind
kWh. For wind turbines that produce less turbines has been established in Germany
than the theoretical 150% reference that does not depend on direct funding.
turbine limit, the period of maximum This market depends on the conditions for
payment is extended by two months for reimbursement regulated today by the
every 0.75 percentage point by which EEG and the development of turn-key
production fails to reach 150% of the prices of WECs. It also depends on the
standard turbine output. An annual decrease interest rate for loans and mortgages with
in the two tariff rates of 1.5 % per year, a pay-back time of ten years. The interest
starting from 1 January 2002 is foreseen. rate was about 10% by April 1991. This
Offshore wind power is covered by the was followed by a fluctuating decrease of
act in German territorial waters and the about 5% to 6%. Assuming a pay-back time
German zone outside of the 12 nautical of ten years, established methods project
miles zone. A premium support for first that a decrease of 3% in the interest rate
installations sited in water more than three corresponds to a price decrease of 25%.
nautical miles from a base line near the
The economics of WECs is determined by
coast is given if they are installed before
electricity production, which can be
the end of 2006. In this case, the tariff of at
expressed by hours of operation per year
least 0.178 DEM/kWh must be paid for
at rated power and the special investment
nine years.
model using the advantage of the EEG
For wind turbines online before 1 April 2000, with guaranteed high tariffs and long-term
the maximum payment period is calculated security about the tariffs for wind power
as five years, minus half the number of years electricity fed into the grid. Under the
the turbine has been in operation. Turbines German meteorological and financial
that are no longer qualified for the higher conditions, it is generally accepted that
rate of 0.178 DEM/kWh, due to their age, WECs erected in 2000 are an option for
are guaranteed for at least four years. investors to receive a positive balance not
far in the future. Of course, details depend
The defined standard turbine or reference
on the special project. One more easy
turbine is, in practice, a series of turbine
estimate of economics is the forecast of
types operating at an average wind speed
the balance of the yearly income and
of 5.5 m/s at 30 m height with a logarithmic
expenditure.
height profile and a roughness length of
0.1 m in specific conditions, averaged over At good sites, close to the German or Baltic
a period of five years using an internationally Seawhere the mean wind velocity at a
recognized and EU-approved power curve height of 10 m is between 5.5 and 6 m/s
the majority of WECs have lower production a longer time before a positive balance is
costs than income in only a few years. reached, building up a considerable share
of Germanys wind power in inland states.
At inland sites, it takes longer to reach a
It is obvious that the break-even point
positive balance. The actual MW-size
could exceed ten years.
turbines with 80-m towers, or higher, use
the higher wind speeds at the nacelle-level, Reducing the taxable income of certain
compared to surface wind. It should be investors is one of the further driving
mentioned that already in the early 1990s, forces of the German wind power market.
the governmental support of investment A depreciation time for WECs of ten years
within the 250-MW Wind-Program, as an was possible until mid-1997. Since 1 July 1997,
option for special owner groups, depended the depreciation time has been 13 years.
upon the tower height. This stimulated With a linear depreciation, investors can
techniques, especially for inland sites, reduce their taxable income by about 10%
relatively early. of the turn-key costs per year. This corre-
sponds to approximately 100,000.00 DEM
In addition to high towers (additional costs per annum. With an assumed tax rate of
are tolerable) for inland WECs, the meteo- 30%, the taxes to be paid by the investor
rological site analysis made considerable will be reduced by about 30,000.00 DEM
progress. Financing of WECs is often per annum.
managed with low equity. Even on inland
sites, the projects are sometimes financed 13.5.3 Results of the WMEP
completely by loans. Nevertheless, the Various measurements and operational
inland situation in Germanywhere reports provided an interesting generalized
typical wind velocities of 4 m/s at a 10-m diagram, reflecting the distribution of
height dominateis significantly different electricity production for approximately
from coastal sites. As seen in Table 13.2 1,400 turbines installed in the 1990s in
and Figure 13.3, investors take into account Germany. Figure 13.4 shows the distribution
100
90 Coast
Inland
Years power/total power (%)
80
Mountain
70
60
50
40
30
20
10
0
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
Figure 13.3 Regional development of wind power
20%
15%
Frequency
10%
5%
0% Coast
Inland
0 500 Mountains
1000 1500 2000 2500 3000 3500 4000
Hours (h)
Figure 13.4 Full load hours 250 MW Wind
of full-load hours for the coast, the northern engineering of a 3 to 4-MW, 110-m turbine,
German lowlands, and the low mountains. to be erected in near future. The WMEP,
The broad curves again support the Phase III, involves a 13.683 million DEM
necessity for an investor to plan a project contract for the period of July 1996 to June
very carefully, but the diagram was used 2000. Phase IV is now in force. Actual wind
to investigate the spectrum of economics power techniques and operational results
on a basis of more than 1,000 operating are new tasks for the WMEP, in addition to
installations. ISET published results in its the operational results of the turbines of
annual report. the 250 MW-Program.
Recent R&D-Projects by BMWi are shown The goal of the 250-MW Wind-Program
in Table 13.5. The projects include the is to carry out a broad test of the application
GREECE
CHAPTER 14
225
200
Cumulative installed capacity, MW
175
150
125
100
75
50
25
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
where the total installed capacity per year Law 2601/98, Law for the Economical
is depicted. Development of the Ministry for
National Economy. This is implemented
14.2.3 Contribution to National Energy
within a continuous program, according
Demand
to which wind projects may be subsidized
The energy produced from wind turbines up to 40% of the cost and receive reduced
during 2000 was approximately 460 GWh, soft loans up to 40%.
while the energy produced in 1999, 1998,
14.3.2 Unit Cost Reduction
and 1997 was 160 GWh, 71 GWh, and
38 GWh, respectively. The total energy No data available.
consumption in the country is on the
order of 50,000 GWh, so the energy 14.4 DEPLOYMENT AND
produced from wind turbines accounts CONSTRAINTS
for about 1% of the energy demand. 14.4.1 Wind Turbines Deployed
Figure 14.2 shows the electricity produced
from wind turbines for the last ten years The average capacity of the wind turbines
installed in 2000 was 615 kW, while the
and the corresponding capacity factor.
average capacity of all the wind turbines
14.3 SUPPORT INITIATIVES AND operating in the country is 450 kW. The
MARKET STIMULATION market share per manufacturer is
INSTRUMENTS depicted in Figure 14.3.
14.3.1 Main Support Initiatives and 14.4.2 Operational Experience
Market Stimulation Incentives
The majority of the wind energy projects
Support for the development of wind are very recently developed. There have
energy projects was provided under been no serious malfunctions reported
500
400
Production, GWh
300
Capacity factor, %
200
100
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
Figure 14.2 Electricity produced and capacity factor for wind turbines in Greece
during the relatively short period since wind potential are in remote areas, at the
their commissioning. end of transmission lines.
14.4.3 Main Constraints on Market 14.4.4 Trends in Investment
Development
The total cost of wind power projects
There are two main constraints for the depends on the type of wind turbine and
optimal exploitation of high wind energy its size and accessibility. These costs vary
and the great interest of private investors from 330,000.00 to 400,000.00 DRS/kW.
to built wind farms. One is the complicated The generated wind power cost could be
procedures for the acquisition of genera- assumed between 9.00 and 16.00 DRS/kWh,
tion authorization. The second is the depending on the site and project cost.
inadequacy of the electrical network
infrastructure for absorbing the energy The typical interest rate for financing any
produced, given that the sites with high project without subsidies is in the order of
Jacobs Various
Zond 6% 3%
Bonus
7% 37%
HMZ
5%
Vestas
15%
8%. However, many investments, including manufacturing. The company has produced
wind projects, may be profited by reduced blades up to 19 m.
soft loans, according to the so-called Law
14.5.2 Certification
for the Economical Development 2601/98.
To operate a wind turbine in Greece with
14.4.5 Trends in Unit Costs of Generation
rating of more than 20 kW, a certificate is
The system of power generation in Greece required. The Center for Renewable Energy
is divided into two categories: the so-called Sources (CRES) is, by law, the certifying
interconnected system of the mainland, authority for wind turbines in Greece.
and the autonomous power plants of the Until now, CRES has been accepting
islands. In the liberalized electricity approval certificates issued by authorized
market, a single charging price exists in institutions, while it is working on
both systems, depending on the identity certification procedures and standards to
of the consumer and the voltage class. The be followed nationwide, taking into account
following tariffs for the three voltages are the individual climate characteristics of
valid since 15 July 1998. Greece.
Low Voltage 26.60 Drs/kWh, 14.6 GOVERNMENT SPONSORED
Medium Voltage 21.51 Drs/kWh and R, D&D PROGRAMS
994 Drs/kW (peak power value), 14.6.1 Priorities
The prices paid by HTSO for renewable The Ministry for Development promotes
energies are based on the actual selling all R, D&D activities in the country.
price. For both autonomous and inter- Government sponsored R, D&D activities
connected grid, the tariffs have two include applied and basic R&D as well as
components: energy and power (capacity demonstration projects.
credit). The energy component is set at
90% of the medium voltage tariffs (i.e., Key areas of R&D in the field of wind
19.359 DRS/kWh), while the power energy in the country are: wind assess-
component is set at 50% of the respective ment and characterization, standards and
PPC power charge (i.e., 497.00 DRS/kW x certification, development of wind
P, where P is the maximum measured turbines, aerodynamics, structural loads,
power production over the billing period). blade testing, noise, power quality, wind
The aforementioned prices are effective desalination, and integration in autonomous
since 15 July 1998. The Ministry of power systems. There is limited activity in
Development has the right to ask the Greece concerning MW-size wind turbines
producers for discounts on the above prices. or offshore deployments.
A project for the development of a 450-kW
14.5 INDUSTRY wind turbine was initiated within the
14.5.1 Manufacturing framework of the EPET-II National
Programme, in 1995. The project is aiming
Except for a couple of small wind turbine
at both the development of a 450-kW,
manufacturers (typical range 1.0 to 5.0 kW),
variable speed, stall-regulated wind
there is no wind turbine manufacturing
turbine and the development of blade
industry in Greece in a classic manner.
manufacturing technology. The assembly
However, the steel industry is quite devel-
of the prototype has been concluded,
oped in the country, being able to support
while its installation at the test site is
wind turbine manufacturing. As a result,
planned to take place in early 2001.
most of the tubular towers of the installed
wind turbines have been constructed in CRES is the national organization for the
Greece. Furthermore, a Greek company promotion of renewable energies in Greece
has been successfully involved in blade and, by law, the certifying authority for
wind turbines. CRES is mainly involved parameters affecting both the power
in applied R&D and is active in the field performance and the loading of different
of aerodynamics, structural loads, noise, types of wind turbines operating in
power quality, variable speed, wind such environments. In that direction,
desalination, standards and certification, new techniques are under development
wind assessment, and integration. for power-curve measurement of wind
turbines operating in complex terrain.
The development of a national certification
system for wind turbines is considered as Developing wind turbines for installation
a crucial parameter for the successful in hostile environments of poor infra
implementation of new strategic plans for structure.
extensive use of wind energy in the country.
Improving the damping characteristics
CRES Wind Energy Department is
of wind turbine blades.
continuing the development of the National
Certification System, as well as participates Developing new techniques for power
in the standardization work carried out quality measurement and assessment.
by the Hellenic Organisation for
Contributing know-how to wind
Standardisation (ELOT) in the framework
turbine standardization procedures.
of European and International organizations,
regarding Wind Energy matters. In 2000, Developing blade-testing techniques
the active involvement in the activities of within the in-house experimental facility.
IEC TC-88, CLC/BTTF83-2 and their
working groups was continued. Understanding generic aerodynamic
performance of wind turbine blades
CRES blade testing facility is going to be through Computational Fluid Dynamics
used as an integral part of the certification (CFD) techniques.
system underway. The blade testing facility,
which is one of the most advanced testing Developing cost-effective micro-siting
facilities in the world, is used for static, techniques for complex terrain
dynamic or fatigue testing of blades up to topographies.
25 m long. The CRES Wind-Diesel Hybrid The National Technical University of Athens
laboratory systemwhich simulates small (NTUA) is actively involved in two
autonomous grid operation, common in the research areas concerning wind energy,
islands of the Aegean seais effectively namely in rotor aerodynamics and wind
used in optimizing the integration of the energy integration in the electrical grid.
renewable energies in such systems.
The Fluids Section of the Mechanical
Basic R&D on wind energy is mainly Engineering Department of the NTUA is
performed at the countrys technical active in the field of wind modeling, rotor
universities. aerodynamics, load calculation, fatigue
14.6.2 New R, D&D Developments analysis, noise, and wind farm design. The
work conducted during 2000 concerned
A number of research projects were applied research on rotor aerodynamics
running or initiated at CRES during 2000, for wind turbines. More specifics of this
co-funded by DGXII and GSRT (the Greek work follow.
Secretariat for Research and Technology)
with the following goals. The tower effects on the aerodynamic
behavior of rotor blades has been
Characterizing the main features of investigated based on CFD simulations.
complex or mountainous sites (since To this end, a two-block, 2-dimensional
sites of such topography are the most methodology has been developed for a
favorable for wind energy develop generic configuration, consisting of an
ment), and identifying the crucial airfoil moving transversely upstream as
well as downstream of a cylinder. One Power quality of wind turbines and wind
block contained the airfoil and one the parks.
cylinder. The communication between
Design of electrical components for
the two block was conducted through
variable-speed machines.
appropriate boundary conditions.
Lightning protection of wind turbines
The new viscous-inviscid interaction
and wind parks.
model for airfoils, concluded in1998,
has been applied to investigate the The technical constraints and problems in
aeroelastic stability problem for a the integration of wind power into electrical
generic 2-dimensional configuration grids have been investigated in various
in which flexibility is modeled by regions of Greece, where the transmission
concentrated springs in the flap and system is weak and there is high interest
edge direction. in related wind projects due to very
favorable wind conditions. Steady-state
The Navier Stokes flow solver for
voltages, voltage variations, and power-
rotating blades, developed in 1999, has
quality issues have been investigated.
been applied to produce parametric
Particular emphasis has been placed on
results with the aim to better under
the effect of storage, especially pumped
stand the characteristics of the flow
hydro storage schemes, on the dynamic
established on stall-regulated machines.
and operational performance of larger
A family of new, low-drag airfoils has island systems, like Crete. CAREan
been used to design new blades for advanced control system comprising load
stall-regulated machines, aiming to and wind power forecasting, unit commit-
optimize the energy capture. A 19-m ment and economic dispatch, and online
blade has been designed, constructed, dynamic security assessment modules
and tested in the laboratory. This blade integrated within a friendly Man-Machine
is now ready for testing on a 450-kW, Interfacehas been developed. CARE is
variable-speed machine. installed on Crete, providing dispatch and
corrective advice for the secure operation
The Electrical Engineering Department of
of the system with increased wind power
NTUA has been actively involved in the
penetration.
field of wind energy since the beginning
of the 1980s, participating in R&D projects Dispersed renewable generation can make
sponsored by the European Union (EU) a positive impact on power system costs
and other institutions and co-operating by modifying system losses, as well as
with universities and research centers system capital costs through reducing
from many European countries. demand for new network and generation
facilities. Research has focused on the
In 2000, the Electric Power Division of
evaluation of these changes in costs and
NTUA focused its research activities on
in recognizing them within the tariff
the issues that follow.
structures and pricing mechanisms. NTUAs
Technical constraints and problems in the research has applied probabilistic techniques
integration of wind power into electrical to deal with the stochastic nature of wind
grids. power production.
Research on lightning protection of wind During 2000, two new research projects,
turbines and Wind Parks has been in which UP is participating, were funded
continued with particular emphasis on the by EC and are about to start: DAMP-
efficient design of their grounding systems. BLADE-Wind Turbine Rotor Blades for
Actual wind park grounding systems in Enhanced Aeroelastic Stability and
new sites have been studied. Fatigue Life Using Passively Damped
Composites and MEGAWIND-Develop-
The Applied Mechanics Section of the
ment of a MW Scale Wind Turbine for
Department of Mechanical Engineering
High Wind Complex Terrain Sites."
and Aeronautics, University of Patras (UP),
has since 1990 focused on educational and Other research activities of the Applied
R&D activities involving composite Mechanics Section are: (a) fatigue failure
materials and structures. Emphasis is given prediction of multidirectional laminates
on anisotropic material property charac- under combined stress state and variable
terization, structural design, and dynamics amplitude loading; (b) probabilistic
of composite rotor blades of wind turbines. methods in the design of composite
Experience has been acquired by partici- structures; (c) fatigue characterization of
pating in several National and European composite materials using non-destructive
Commissionfunded research projects. testing; (d) smart composites and structures;
and (e) structural damping, passive and
The University of Patras has successfully
active vibration control
completed structural designs for 4.5, 5.5,
8, 10, 14, and 19-m GRP blades, verification
of which was performed by full-scale
static, fatigue, and modal tests at the CRES
blade testing laboratory. During 2000, in
the framework of EPET-II National Program
and JOULE-III, a 19-m GRP rotor blade
was adapted by UP to meet certification
requirements of different loading conditions.
A rotor was constructed by a Greek
industrial partner, Geobiologiki S.A., and
is currently under installation in a proto-
type wind turbine at the CRES test site.
In the frame of the JOULE-III program,
UP is participating in the AEGIS-
Acoustic Emission Proof Testing and
Damage Assessment of W/T Blades Figure 14.4 Windfarm with capacity of
project, contributing to the design of small 11.2 MW on Evia Island, comprising
blades and failure characterization of 17 Vestas V42, 600-kW wind turbines
composite materials using advanced (provided by G. Gilinou, CRES)
numerical techniques for pattern recognition
and analysis of NDT signals. UP is also 14.7 DEMONSTRATION
participating in project ADAPTURB- The main demonstration programs in wind
Adaptation of Existing Wind Turbines for energy currently under way in Greece are
Operation on High Wind Speed Complex financed within the framework of the
Terrain Sites; kWh Cost Reduction, as a Thermie program of the EU and the
subcontractor to CRES, mainly contributing National Operational Program of Energy.
in numerical prediction of blade structural
integrity under prescribed static and The following four demonstration projects
fatigue loading. were ongoing in 2000:
ITALY
CHAPTER 15
was to be devoted to renewable sources. energy buy-back prices under the CIP
In particular, regarding wind energy, it Provision No. 6/92 by 2001, it is very
was decided to provide investment likely that the first goal, 700 MW by 2002,
subsidies of up to 40% for the construc- will be achieved. Regarding the likelihood
tion of wind plants in the smaller islands. of reaching the other targets after 2002,
this will depend on the effect of the new
15.2.1 Strategy
legislative framework, and in particular,
Achieving the objective of doubling the the results achieved by the introduction of
contribution of renewable sources in the the green certificate mechanism.
decade 2000 to 2010 is quite ambitious
15.3 COMMERCIAL
and requires the intervention of the state
IMPLEMENTATION
and other public institutions. The various
steps of an action plan follow. The satisfactory trend in the growth of
wind power capacity in 1999, with around
Adopt coherent policies.
100 MW installed, continued in 2000
Decentralize functions and structures when wind plants totaling 147 MW were
for regions and local authorities. added. During 2000, several wind
installations were built in the Campania
Disseminate awareness of energy-
region, which together with the Apulia
related environmental issues.
region represents the most developed area
Acknowledge the strategic role in the wind sector in Italy, both in terms
demonstrated by research. of capacity installed and projects supported
by public funds.
Encourage integration with energy
markets. 15.3.1 Installed Capacity
Meet organizational requirements. In the course of 2000, IVPC 4 and Edison
Start off framework projects and Energie Speciali installed capacities of
support initiatives. 97 MW and 50 MW, respectively. Also
in 2000, 151 Vestas V-42 and V-47 wind
turbines of 600 kW and 660 kW, respectively,
15.2.2 Progress Towards National Targets
were constructed and transported on site
As specified in the national white paper in the Campania and Apulia regions by
for renewables, targets have been fixed for the IWT manufacturer based in Taranto.
wind power capacity for three periods: In addition, 85 Enercon 40 of 600 kW each
2002 = 700 MW; 2006 = 1,500 MW; and were installed in the Abruzzo, Campania,
2008 to 2012 = 2,500 MW. and Apulia regions. The average size of
these turbines is 626 kW. With these new
The investment cost necessary for carrying
installations, totaling 147 MW, total wind
out all projectstotaling 2,400 MW in the
power capacity in Italy at the end of 2000
years 1997 to 2012was estimated to be
rose to 427 MW, with an average turbine
between 1.5 and 1.8 billion/MW ITL in
size of 521 kW. The total number of wind
1997, corresponding to a total of about
turbines was 819. In Fig. 15.1, the annual
3,800 billion ITL.
and cumulative power capacity data are
Given the growing rate of new wind represented.
installations registered in the last two
years and the decision of most developers 15.3.2 Rates and Trends in Deployment
to bring to completion the major part of During the first half of the year, only 16 MW
the wind farms entitled to the premium were installed in Italy. But in the last six
450
400
350 Annual MW
300 Cumulative MW
250
MW
200
150
100
50
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
months, the situation changed as a result were thermal plants) belonged to the Enel
of the installation at the Apennines sites Group. Despite the growing rate in the
of another 131 MWso now the trend is dissemination of wind energy plants, the
quite good, with the expected rate of 200 contribution to national energy demand
MW/year to be reached next year. In the remains very small, both in terms of
year 2000, the increase in wind power energy production and power capacity.
capacity was about 50% more than at the
15.4 SUPPORT INITIATIVES AND
end of 1999.
MARKET STIMULATION
INSTRUMENTS
15.3.3 Contribution to National Energy
Demand With the completion of the initiatives
already authorized under CIP Provision
In 1999, Italys overall electricity demand
No. 6/92, foreseen by 2002, the new
was nearly 286 TWh (including transmission
instrument constituting the main measure
and distribution losses) for the whole
in support of renewables is the Legislative
electricity sector. Of this, about 42 TWh
Decree No. 79/99.
was imported from neighboring countries.
The net electric energy produced in Italy 15.4.1 Main Support Initiatives and
was 253 TWh (the Enel Group produced Market Stimulation Incentives
nearly 71% of this). The energy supplied
According to Article 11 of Decree 79/99,
to end users totaled 267 TWh.
the transmission system operator (GRTN)
Italy's net production from renewable must assure priority in dispatching to
sources in 1999including large and small plants fed by renewable energy sources.
hydro, geothermal, wind, and photovoltaic In addition, starting from 1 January 2002,
plantswas as much as 22% of total net there is an obligation to introduce into the
production. Installed net capacity totaled public electricity network, or to acquire
about 73.8 GW (of which 20.4 GW were fully or partially, a given percentage of
hydro and 52.5 GW were thermal plants) electric energy from renewable sources,
as of the end of 1999. Of this, 57.5 GW (of for all the subjects producing or importing
which 16.8 GW were hydro and 40 GW electric energy from conventional sources.
The above percentage is initially fixed at issued by the transmission system operator
2% of the conventional energy that (GRTN). Green certificates are tradable.
exceeds 100 GWh per year and must be
Beginning in 2003, producers or importers
exclusively assured through new or
who have to fulfil the 2% quota are
repowered plants entered in operation
obligated to hand over to GRTN the green
after 1 April 1999 (for repowered plants,
certificates they got in the previous year,
only the energy produced by the added
which are annulled. Another important
capacity can be taken into account).
aspect of green certificates concerns their
Cogeneration (CHP), auxiliary service
compatibility with other incentives. In
consumption, and exports of energy are
other words, for a green energy producer
excluded from this computation.
it will be possible to combine green
A specific decree devoted to putting into certificates with any kind of subsidy, except
effect the rules set by Article 11 of Decree the premium energy buy-back prices of
No. 79/99, regarding renewable energy CIP 6/92.
sources, was issued on 11 November 1999.
GRTN itself will own the certificates for
This decree states precisely the meaning
the electricity produced by renewable
of plants that have entered into operation
plants constructed after 1 April 1999 and
after 1 April 1999. In this category, the
authorized under the old regime (CIP
following plant types are included.
6/92, fixed buy-back prices). However,
New plants. when selling its own certificates, GRTN
must apply a fixed price, calculated as the
Plants existing for at least five years,
difference between the average cost of
in which measures to increase energy
purchasing that energy (under the old
production have been taken. In this
promoting scheme) and the electricity
case, only the additional production
market price.
is considered.
A small part of 1999 carbon tax revenues,
Plants running for at least ten years
introduced in Italy that year, were
which have been rebuilt, in the sense
devoted to the production of energy from
that the main components have been
renewable sources. According to Law No.
substituted. For instance, a wind plant
112/98which assigns new duties to
is considered rebuilt when the wind
Regions, Provinces, and Communes,
turbine rotor, generator, and gearbox
particularly in the new energy sectorthe
have been replaced.
majority of this new instrument of financial
Plants brought into use again, after a support has been attributed to these local
stop period lasting at least five years. bodies.
Plants where renewable and non- Another financial tool, covering the
renewable fuels are used, for Southern Italian Regions, is constituted by
production using renewable fuels. their regional plans, called PORs (Piani
Operativi Regionali). Through this
Renewable energy plants can also be located
important financial instrument, several
in foreign countries, but these countries
wind projects will obtain subsidies, in
must have in force similar tools to support
variable percentages of eligible cost. PORs
renewables and respect the reciprocity
are funded both with national (state,
principle.
regional) and European resources, the
Electricity produced by renewable energy latter through the FESR Structural Funds.
sources having a value equal to or multiple
of 100 MWh is labeled with green certificates
15.4.2 Unit Cost Reduction which was 50% owned by IVPC Energy 4
Detailed figures from main developers are B.V. and 50% by IVPC Energy 5 B.V. After
not available for unit cost reduction, but it that, IVPC 4 placed orders to Italian Wind
is possible to estimate a cost reduction for Technology (IWT)which is now to become
wind turbines based on some information completely owned by Vestasfor a total of
from manufacturers and developers. 437 turbines and a related power of 283 MW.
In March 2000, the company completed its
In 1995, the turbine cost was around project financing, approved by Mediocredito
1.68 million/kW ITL. In 2000, this cost Centrale, lead arranger of the financing
decreased to nearly 1.43 million/kW ITL. operation, with the English National
The balance-of-system cost fell, in the Westminster Bank Plc and the Dutch Fortis
same period, from 0.52 million/kW ITL to Bank as arrangers.
0.46 million/kW ITL, taking the total cost
per kW installed from 2.2 million ITL Edison Energie Speciali has completed
down to 1.9 million ITL. some wind farms by putting into service a
first set of turbines supplied by Enercon,
54.5 DEPLOYMENT AND and taking advantage of the good climatic
CONSTRAINTS conditions in Southern Italy in the last month
of the year. In addition, Edison Energie
15.5.1 Wind Turbines Deployed
Speciali plans to build the remaining wind
As said previously, only two types of wind farms (around 80 MW), authorized under
turbines were installed in 2000 in Italy: the CIP 6/92, during 2001.
85 Enercon 40 and 151 Vestas V-42 and
V-47, with a unit power ranging between Developers Lucky Wind and Filippo
600 and 660 kW. Turbine size has been Sanseverino plan to produce more electricity
increasing rather slowly due to the complex by wind. Lucky Wind, through the enlarge-
topography of sites, which brings about ment of its wind farm at Accadia, is adding
transport problems and has a considerable six IWT V-47 turbines, which equates to
visual impact on the top of the mountain 3.96 MW and brings the plant total to
ranges, where turbines are generally located. 14.76 MW. Filippo Sanseverino will install
two IWT machines of the same size at
Regarding the sites that have been chosen Frigento and, by the end of 2001, anticipates
for further wind installations planned in installing another 20 MW of IWT V-47
2000 and 2001, several of them are still in machines very close to its previous wind
the Campania and Apulia regions quite farm at Castelfranco in Miscano.
close to existing installations, while the
others are scattered along the Apennines Within the Enel Group (the utility Enel has
range in a northwest and southeast direction. been turned into a holding company that
In 2001, according to the plans of IVPC 4 controls several companies), ERGA operates
and ERGA, the bigger islands of Sardinia geothermal, small hydro, wind, and photo-
and Sicily will also be affected, with voltaic power plants totaling 1,600 MW of
wind installations for a total capacity of capacity. In the wind sector, where its online
approximately 80 MW. capacity was formerly 25 MW, ERGA
launched a construction program in 2000
IVPC 4, presently 50% owned by IVPC
aimed at reaching 350 MW by 2003 and
Energy 4 B.V. and 50% by Edison Mission
involving an investment of 600 billion ITL.
Wind Power Italy B.V., was incorporated in
When online, this capacity is expected to
1995 with the aim of locating and developing
yield 780 Gwh/year.
suitable sites for the construction of wind
farms. In 1999, a corporate merger was At the end of 2000, 3 ERGA wind farms
planned between IVPC 4 and IVPC Puglia, totaling 22 MW were under construction in
Others RWT
Bonus 1% 7% WEST
7% 5%
Vestas
22%
Enercon IWT
14% 44%
Figure 15.2 Market shares of wind turbine manufacturers at the end of 2000 (as a percentage
of total on-line capacity)
Sicily, at the sites of Caltabellotta (ten 750-kW Meanwhile, ERGA has also been striving to
NEG Micon machines), Carlentini (11 660-kW enlarge its site portfolio by conducting new
Vestas machines) and Sclafani Bagni (11 wind surveys and has also been seeking
660-kW Vestas machines). These machines agreements with other operators to speed
should go into operation in 2001. An overall up wind farm development.
additional capacity of 30 MW is also
Figures 15.2 and 15.3, respectively, show
planned at these sites shortly after, possibly
how manufacturers and wind producers
with larger machines. Work was also started
are represented in the Italian market.
at Campolieto in Molise, Central Italy, on a
Figures 15.4, 15.5, and 15.6 show three
3-MW wind farm (four 750-kW NEG Micon
wind farms recently installed in the
units). Work on other plants totaling 61 MW
Campania region by Edison Energie
should start in 2001. The sites are being
Speciali, IVPC 4, and Filippo Sanseverino.
chosen in Sardinia and Southern Italy.
Others
ERGA 8% Edison En. Spec.
5% 17%
Sanseverino
11%
IVPC 4 IVPC
23% 40%
Figure 15.3 Contribution by electricity producers from wind at the end of 2000 (as a
percentage of total on-line capacity)
114 IEA R&D Wind Annual Report 2000
NATIONAL ACTIVITIES ITALY
Figure 15.4 Edison Energie Speciali 10 MW windfarm at S. Giorgio la Molara (20 wind
turbines Enercon 500 kW)
in the country. Moreover, the general from 100.00 ITL/kWh to 230 ITL/kWh.
rules to be observed at the planning stage For wind energy, 2000 buy-back prices
of wind installations, in order to achieve fixed by CIP 6/92 were 198.30 ITL/kWh
agreement from the local populations, are for the first eight years of the plant
discussed in meetings held by central and operation and 95.20 ITL/kWh for the
local authorities. remaining lifetime.
So far, no problem has arisen with birds As mentioned, so far the support initiatives
hitting wind turbines. on renewables, and in particular on wind
energy, have been based on CIP 6/92 buy-
15.6 ECONOMICS
back prices. In the future, because of the
15.6.1 Trends in Investment new legislative framework, the support
In 2000, the wind plant cost was around system will change through the introduction
1.9 million ITL/kW; therefore, in the of the green certificate mechanism.
same year, the total invested capital on
wind energy plants in Italy was about 15.7 INDUSTRY
280 billion ITL. 15.7.1 Manufacturing
15.6.2 Trends in Unit Costs of In spite of the internal market develop-
Generation and Buy-Back Prices ment, the Italian wind industry has
In regard to energy cost, the selling price suffered a profound crisis and now only
of electricity (net price without taxes) the company IWT, which will shortly
varies from 100.00 ITL/kWh to 300.00 ITL/ become a 100%-owned subsidiary of
kWh for typical domestic customers. For Vestas, is manufacturing medium-sized
industrial consumers, this cost varies wind turbines.
IWT was set up in 1998 as a joint venture wind turbine in order to supply clean
between the Danish Vestas and the Italian energy to the Dome-C Concordia station.
WEST. In the first two years of activity,
Interest in zero-emission power sources
the company made 150 medium-sized,
for the supply of electricity to remote
600-kW turbines. At the end of 2000, a
installations and stations in Antarctica is
total of 170 660-kW machines had been
increasing among researchers and bodies
delivered. Most of these machines were
involved in activities in this type of
manufactured and installed in the second
environment.
part of the year 2000 after a big contract
was signed between IVPC and IWT. For this purpose, a special 5-kW wind
turbine has been developed. The main
Regarding the fully national industry,
characteristic of this turbine is a directly
RWT and WEST, which had previously
driven, permanent magnet generator.
been engaged in the construction of
Moreover, some components have been
medium-sized turbines (with around 100
tested and modified to face the extremely
single-bladed, 350-kW machines and 70
low temperatures expected.
two-bladed, 320-kW units, respectively),
are now only involved in the maintenance The wind turbine was tested for one year
of existing machines and no further activities at ENEAs Casaccia test field and was
in the manufacturing field are anticipated. finally installed at Dome-C during the
1999-2000 Antarctic expedition.
15.7.2 Industry Development and
Structure CESI
IWT is actively working on the production On 1 January 2000, Enels R&D Department
of medium-sized wind turbines in Italy in merged into CESI S.p.A. (55% owned by
its factory in Taranto, where blades and Enel), which has long been a market leader
nacelle covers are made, and 660-kW in the testing and certification of electro-
Vestas V-47 wind turbines are currently mechanical equipment and electrical power
assembled. IWT is building six machines system studies. CESI has thus enlarged its
per week, most of which are to be set up field of activity into research formerly
at IVPC's wind sites. carried out by Enel in the field of generation,
transmission, distribution, end uses,
15.8 GOVERNMENT SPONSORED environment, and renewable energy sources.
R, D&D
The wind energy expertise acquired now
15.8.1 Priorities enables CESI to provide third parties with
services and consultancy, and to perform
The total R, D&D expenditure borne by
some further research on specific topics in
the Italian Government during 2000 was
the interest of Italy's electricity sector,
around 2 billion ITL. Activities in the
under contract to the Ministry of Industry.
wind R, D&D sector in Italy are carried
out by three entities: ENEA, CESI of the The topics currently include the following.
Enel Group, and a few universities. Completion of the assessment of Italys
wind energy potential, based on results
ENEA
already gained in past Enel surveys.
In the framework of an Italian-French joint The work consists of general analysis
project, research has been undertaken through mathematical models of areas
with the aim of developing wind power not yet studied beforehand (such as
exploitation in the inner Antarctica Northern Italy), gathering and analysis
environment and installing a new, small of existing wind data, and additional
in-field measurements by means of are located very close to the small islands
some new wind stations suitably of Pianosa and La Maddalena (three years
scattered in several parts of Italy. The of offshore wind data is available).
latter are aimed at validating the results
N.B. Costs and prices have been
of model analysis as well as at establishing
expressed in Italian Lire (ITL): 1 Euro =
correlations with other stations for which
1936.27 ITL
historical data are available; some
evaluation of off-shore wind potential is Authors: L. Pirazzi and A. Arena, ENEA,
also planned. Italy; and C. Casale, CESI, Italy.
Evaluation of the cost-effectiveness and
feasibility of exploiting wind sites in
mountain areas above the altitudes so
far involved in Italy (namely above 1000
m a.s.l.), and assessment of wind turbine
technology with special attention to
machines to be operated in harsh
environments, such as high-altitude
mountain sites and offshore areas.
Further investigation of some aspects of
compatibility of wind plants with the
environment (noise, visual impact, etc.).
Universities
Regarding the involvement of Italian
universities, some research activities are
being carried out by Rome University in
the field of axial flux permanent magnet
generators, while Genoa and Bologna
Universities are still engaged in the
definition of local wind maps and in the
assessment of wind resources including
offshore applications, respectively.
JAPAN
CHAPTER 16
250.0 800
234
Installed capacity
183
Average capacity
518
386
150.0 400
120
121.1
201 215
263
100.0 126 200
176 80
69 71 142 143 70.6
40 67
54
50.0 35
41 0
31.6
23
13 14 13.5 17.2
9 5.0 5.9 9.5
0.4 0.9 1.0 2.9
0.0 -200
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Year
Figure 16.2 Tomamae Wind Farm developed by Electric Power Development Company
16.4 SUPPORT INITIATIVES AND Therefore the unit cost itself is almost the
MARKET STIMULATION same as in Europe. However, most wind
INSTRUMENTS power plants in Japan consist of one or
only a few turbines which increases the
16.4.1 Main Support Initiatives and unit cost. The more large-scale wind farms
Market Stimulation Incentives are developed, the less the plant cost will
NEDO has been conducting the following become. Although costs will come down
three subsidy projects as a part of MITIs for wind farms, the average unit cost is
introduction and dissemination program. still high and subsidies are quite necessary
In June 1997, the Law on Special Measures to operate a commercial wind power plant.
for Promotion of Utilization of New Energy
(New Energy Law) was enacted, which 16.4.3 Green Power Fund and Green
provided the initiative for wind energy Electricity Certification
businesses in Japan. These projects are Tokyo Electric Power Company (TEPCO)
playing an important role for local govern- established a new Green Power Fund
ments and private companies construction program in October 2000. The program is
of wind turbine generators, and motivating designed to foster wind power and solar
development of large-scale wind farms. photovoltaic generation facilities. People
1. Field Test Program for developing wind who wish to make a social contribution
turbines make donations to accelerate the promotion
of natural energy. The Green Power Fund
This program was started in 1995 to program is operated by a non-profit
stimulate the introduction of wind energy organization Greater-Kanto Industrial
plants into Japan. NEDO subsidizes the Advancement Centre (GIAC). A single
cost to local governments and private donation is 500 Yen per month. A newly
companies 100% for one-year of wind established company, Japan Natural Energy
measurements and 50% for facility Company Lt. (JNE), started an entrustment
construction and operation. business on natural energy generation in
2 Regional New Energy Introduction November 2000. The aim was to balance
Program the extra cost needed for natural electricity
generation by publishing Green Electricity
Since 1998, this program has supported Certificates.
new energy projects developed by
pioneering developers or public 16.5 DEPLOYMENT AND
organizations. NEDO subsidizes costs CONSTRAINTS
up to 50% for the design and construction 16.5.1 Wind Turbines Deployed
of wind power plants above 1,200 kW. As shown in Figure 16.1, installed capacity
3. New Energy Business Support Program increased 39 MW in 1999 and 50.5 MW in
2000. The average capacity per unit also
This program is for private wind farm increased to 518 kW in 2000, which is two
developers and NEDO subsidizes costs times larger than in 1998, and three times
up to 33% for each facility design and larger than in 1995. Most wind turbines
construction. employed in Japan are Danish turbines, and
The results of these initiatives can be seen more than 85% of all turbines are made in
in Figure 16.1. The wind farm market has Europe. The only Japanese wind turbine
recently been very stimulated. manufacturer is Mitsubishi Heavy Industries
(MHI). Ltd. The percentage of wind turbines
16.4.2 Unit Cost Reduction sold in Japan by each manufacturer is
More than 85% of installed wind turbines illustrated in Figure 16.3. MHI is the fifth
in Japan are imported from Europe. largest.
The rest
Enercon 3% NEG Micon
10% 22%
Mitsubishi
12%
Lagerway Vestas
16% 20%
Bonus
17%
Figure 16.3 Share of wind turbine sales in Japan among manufacturers (December 2000)
(COE) is more expensive than in Europe. NORDEX 600 to 1,300 kW, Jacobs 500 kW
One study compared the costs between and DeWind 490 kW.
Europe and Japan. For a 20-MW wind
farm of 600-kW turbines, the installation 16.7.3 Export Potential
cost is 130,000 Yen/kW in Europe and Mitsubishi Heavy Industries, Ltd is
180,000 Yen/kW in Japan, while the COE marketing wind turbines all over the world,
is 6 Yen/kWh in Europe and 8 to 9 Yen/kWh such as in the United States (California,
in Japan. Hawaii, Wyoming), the United Kingdom
(Wales), Portugal, India, Mexico, and
Electric power companies set their own
Germany.
purchase price menus. They purchase wind
electricity at the price of 11.5 yen/kWh on 16.8 GOVERNMENT SPONSORED
average with a 17-year contract period. R, D&D
Although the average purchase price is
high, the balance is hard to attain without 16.8.1 Priorities
NEDOs subsidies. Since 1978, after the oil crises, the Govern-
16.7 INDUSTRY ment has operated its wind energy R&D
program to improve energy security. This
16.7.1 Manufacturing is part of a general R&D Program for
renewable energy called the New
There are many types of wind turbines
Sunshine Project and is directed by the
supplied by many manufacturers around
New Sunshine Program Promotion
the world. Mitsubishi Heavy Industries
Headquarters (NSS-HQ), the Agency of
Ltd. (MHI) is the only Japanese manufacture
Industrial Science and Technology (AIST),
that supplies middle to large wind turbines.
and MITI. After concern about global
Most conventional wind turbines are
warming was raised, the objective of the
two-speed induction generators of 300 kW,
New Sunshine Project became to develop
600 kW, and 1,000 kW. MHI is also devel-
innovative technology to create sustainable
oping variable speed synchronous wind
growth while solving both energy and
turbines of 300 kW, 600 kW, and 2,000 kW.
environmental issues. The national wind
In all, MHI had sold 1,121 units with
energy activities in Japan are shown in
generating capacity of 397 MW by
Table 16.1.
November 2000.
1. New Sunshine Project: Research &
Fuji Heavy Industries Ltd. (FHI) is a new
Development, Demonstration
wind turbine manufacturer. FHI is devel-
oping 20-kW-class rotors in cooperation In 1999, Japan started a new R&D, D
with the Mechanical Engineering Laboratory program as described in next section.
(MEL) of AIST, MITI, a 100-KW wind
turbine as a national project, and a 40-kW 2. Power Stabilization from Wind Turbines
wind turbine. Two new research projects were under
taken to develop techniques to stabilize
16.7.2 Industry Development and
the output power from wind turbines in
Structure
2000 by NEDO.
The market shares of manufacturers were
3. Promotion of Introduction with Subsidies
shown in Figure 16.3. The major types of
large wind turbines installed are Neg-Micon NEDOs Field Test Program, the New
400 to 750 kW, Vestas 225 to 1650 kW, Bonus Energy Local Introduction Supporting
1,000 kW, Lagerway 600 to 750 kW, MHI Program and New Energy Business
300 to 1,000 kW, Enercon 230 to 1,500 kW, Supporting Program have played an
important role in promoting the Table 16.2 shows the history of the budget
introduction of wind turbines among of MITI for various wind energy activities.
the private sector as well as with local
governments. 16.8.2 New R, D&D Developments
4. Integration of Japanese Industrial Since 1999, MITI has conducted new R&D
Standards (JIS) and IEC Standards programs in order to meet the national
target of 300 MW of wind power by 2010.
The national programs include cooper Since the installed wind energy capacity is
ation in IEC Standard activities for estimated to exceed 2,000 MW by 2030,
wind energy. MITI is also promoting the other research is now underway on power
policy to keep international consistency quality, battery-supported systems, and
in the standard. Therefore, JIS for wind offshore plants. These projects began in
turbine generator systems are being 2000 to explore these inevitable issues for
developed. In 1999, two JIS on wind Japans environmental conditions.
energy conversion systems were
published, and in 2000 three more JIS 1. Advanced wind turbines for remote
were prepared. islands
5. International Energy Agency (IEA) R&D This project is developing a prototype
Wind 100-kW-class wind turbine to withstand
NEDO, MEL, Mie University (MU), and conditions such as high wind speed
the Japan Electrical Manufacturers exceeding 80m/s (typhoon conditions).
Association (JEMA) participate in This turbine must be erected with no
international activities by contributing construction machines like large cranes
technical data to IEA R&D Winds tasks or trailers. The turbine will be installed
XI, XV, XVII and XVIII. at sites like remote islands and hilly areas
where the wind is turbulent, accessibility
6. Funding Levels is poor, and there are no wide roads or
YEAR 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
NSS project (R,D&D) 540 981 978 744 634 606 554 477 414 516
NEDO subsidies 80 320 460 1529 1739 1620
(field test)
NEDO subsidies 430 1670 3320 5490
(business support)
NEDO R&D on 1730
power stabilization
Total 540 981 978 744 714 926 1444 3676 5473 9356
(R&D) 540 981 978 744 634 606 554 477 414 2246
(Subsidy) 80 320 890 3199 5059 7110
large harbors. Figure 16.4 shows a This program studies the state-of-the-art
conceptual design of such a turbine that technology for the leveling effect of
can be installed by gin pole and winch. multiple wind turbines and collects
practical data on power quality in
2. Local area wind energy prediction relation to fluctuating wind conditions
model at specific sites.
This project is developing a computa 4. Research on stabilization of output from
tional fluid dynamics (CFD) model that wind turbines with storage batteries
predicts wind and wind power generation
quickly and accurately and is applicable This program examines the effect of a
to Japans complex terrain and turbulent battery-supported system with, for
wind conditions. Figure 16.5 shows an example, NAS or Redox flow on the
illustration of this CFD model. The data stabilization of the output from wind
base will be provided for the public so turbines.
that the wind condition of any site can 5. Investigation on offshore technology
be found by way of a computer.
Japan is surrounded by ocean and there
3. Research on stabilization of output from is a huge wind energy potential offshore.
wind turbines However, the sea-bed is very steep and
Pulley
Wire 24m
Gin pole
Winch
36m
Pulley
54m
8
7
6
5
WT 4
Rated power: 500kW
Hub height: 45m
Rotor diameter: 39m Annual mean wind speed (m/s)
Guerrero Negro
250 kW
1 x 250 kW
Mitsubishi
Exportadora de
Sal
decade, after appropriate wind power 17.2.2 Progress Towards National Targets
market conditions are established. As mentioned above, a national target for
17.2.1 Strategy the installation of wind power capacity has
not been established yet. However, in order
The Government of the State of Oaxaca is to develop specialized local capacity for
very interested in promoting the develop- supporting the different topics involved
ment of wind power in La Ventosa, on the in the implementation of wind power
basis of economic and social development. (e.g., resource evaluation, pre-investment
In October 2000, a Colloquium on studies, regional planning, standardization,
Opportunities for the Development of Wind demonstration, and evaluation), the
Power in La Ventosa, Oaxaca, was held in Electrical Research Institute (IIE)which
Oaxaca city. About 100 people attended the has the mission to promote and support
colloquium, including officials from the technological innovation within the
Ministry of Energy, the local Government, electrical sectorhas been preparing a
the National Commission for Energy full-scale project proposal for the Global
Conservation, the Federal Electricity Environment Facility/United Nations
Commission, the Energy Regulatory Development Program (GEF-UNDP).
Commission, the Advisory Council for the
Promotion of Renewable Energy, the This project has been envisaged and
Electrical Research Institute, the National planned as a national effort aimed at
Solar Energy Association, universities, and removing barriers for the implementation
national and foreign private companies. of wind energy in Mexico. Therefore,
participation of a number of public
The most important topics on opportunities institutions and private companies is
and constraints for the implementation of anticipated. And evidently, the project
wind power in Mexico were addressed. will include a plan of action to assist the
A number of private developers of wind Advisory Council for the Promotion of
power projects expounded several conditions Renewable Energy in the task of achieving
required to get confidence for investing in the creation of a suitable wind energy
wind power projects in Mexico. On the other market in Mexico.
hand, officials from the public sector out-
lined realistic possibilities in that direction. Local officials from GEF-UNDP have
examined the concept paper for the
Today, as a result of this colloquium, it is project, and after some recommendations,
very clear that in Mexico the public and a final draft has been issued. Formal
private sector are willing to undertake a procedure to submit the project to GEF-
meaningful development of wind power. UNDP could be underway by April 2001
Nevertheless, it was also evident that (as long as required endorsement by the
plausible actions have to be carried out in Mexican Government is granted). According
order to remove existing barriers and to officials from GEF-UNDP, if the project
establish suitable wind power market is approved it would commence by mid
conditions. To this end, it will be expected 2002. In the meantime, efforts by wind
that during 2001, the Advisory Council energy promoters will continue, but these
for the Promotion of Renewable Energy, will be limited by the moderate budget
which integrates members from a number available because of priorities in the
of both public and private entities, will public sector.
come out with a realistic and acceptable
proposal to the New Mexican Government.
WIND
TURBINES CAPACITY COMMISSIONING
LOCATION MANUFACTURER (kW) (MW) DATE OWNER*
Total 10 2.970
* (1) Compaa Exportadora de Sal (salt producer); (2) Cementos Apasco (cement factory)
Industrial 0.5022
Agriculture 0.2859
Domestic 0.5556
Commercial 1.2960
Public service 1.0539
NOTES: a. Preliminary data
b. 1 Peso = 0.103627 USD (January 2001)
18.3 COMMERCIAL
18.2.1 Strategy
IMPLEMENTATION
The strategy to reach the targets of the Third OF WIND POWER IN 2000
Energy Memorandum are set down in the
action plan Renewable Energy on the March 18.3.1 Installed Wind Capacity
of March 1997 and in 1999 in the evaluative In 2000, a total of 48 turbines were installed
Renewable Energy in Execution. The recom- with a capacity of 39.4 MW and nine
mended actions concern improvement of turbines with a capacity of 1.5 MW were
the price-performance ratio, removal of removed. This brings the total installed
administrative bottlenecks, and stimulation capacity at the end of 2000 to 447 MW
of market introduction. The measures for with 1,297 turbines. The final numbers for
wind energy were partly executed through 1999 show a total increase in operational
the 1996-2000 TWIN-program, that capacity of 46 MW. This brought the total
supported R, D&D activities and the deploy- operational capacity by the end of 1999 to
ment campaign Room for Wind Energy. To 409 MW with 1,258 wind turbines.
stimulate the industry to develop innovative
renewable energy options, the program 18.3.2 Rates and Trends in Deployment
Economy, Ecology, and Technology (EET) Apart from the large installed capacity in
is carried out. To stimulate the market 1995, due to the end of the 86-95 investment
120 480
100 420
80 Removed 360
Cum. operational
60 300
40 240
20 180
0 120
-20 60
-40 0
85 87 89 91 93 95 97 99
Year
subsidy regime in that year, the installation 30-years average wind speed set at 100%, is
rate has been about 40 to 50 MW per year estimated at 92%. Total national electricity
in the last 4 years. The average installed consumption in 1999 was 93,505 GWh.
capacity per turbine has been steadily Production form renewables was 2,146 GWh
rising from 150 kW in the mid-eighties to or 2.3% of the total. Wind provided 0.7 %
more than 800 kW in 2000. The average of total consumption. In 2000, we expect
hub height rose from 28 to 55 m, and the the national consumption to be 95,000 GWh
installed swept area per unit of power and wind production to be 0.8% of that.
form 1.7 to 2.5 m2/kW
18.4 SUPPORT INITIATIVES AND
18.3.3 Contribution to National Energy MARKET STIMULATION
Demand INSTRUMENTS
Final numbers for 2000 are not available
18.4.1 Main Support Initiatives and
yet. The electricity generated by wind
Market Stimulation Incentives
turbines in 2000 is estimated at 750 GWh.
The Windex, which compares the annual In order to stimulate market penetration
wind speed in a certain year with the of renewable energy, the Dutch government
900 60
800 Capacity
Swept area/capacity (m2/kw) x 10 50
700 Hubheight (m)
600 40
m2/kW x 10
500
kW
m
30
400
300 20
200
10
100
0 0
87 88 89 90 91 92 93 94 95 96 97 98 99 00
Year
Figure 18.2 Average characteristics of installed turbines
has introduced different market stimulation 2. Tax incentives in order to reduce the
instruments. A detailed account of these capital costs of renewable energy
initiatives and incentives was given in the installations.
1999 IEA Annual Report. Following is a
Green Funds invest in green projects
summary and the main changes.
like wind turbine installations.
1. Tax on energy to stimulate energy Revenues like dividend or interest are
efficiency. exempted from income tax.
The Regulating Energy Tax, a kind of Energy Investment Deduction Scheme
Eco tax, is a tax on energy carriers like allows profit-making companies to
natural gas and electricity (see Table 18.2). deduct 40% of the investment in
The consumer pays this tax via the renewable energy installations from
energy bill to the energy company that company profits in the year of invest
pays it to the Ministry of Finance. Most ment.
of this tax is fed back to the taxpayer
Accelerated Depreciation on
though a lower income tax. On the
Environmental Investment Scheme
average it is budgetary neutral for the
allows free depreciation of renewable
taxpayer, but on a national level it shifts
energy installations.
the burden from labor to energy. The
Eco tax can also be seen as the attribution The effect of these tax incentives is that
of a value to the external costs of they lower the production costs of a kWh
energy. of electricity for the owner of a wind
ESTIMATED PRIMARY
ELECTRICITY ENERGY
GENERATED WINDEX SAVINGS
Year GWh % PJ
1985 6 0.05
1986 7 0.06
1987 14 95 0.12
1988 32 100 0.27
1989 40 83 0.33
1990 56 98 0.46
1991 88 80 0.73
1992 147 93 1.22
1993 174 87 1.44
1994 238 94 1.97
1995 317 88 2.62
1996 437 68 3.62
1997 475 68 3.93
1998 640 93 5.30
1999 645 86 5.34
2000* 750 92 6.50
plant. The cumulative effect for a typical The Feed back of Eco Tax. For each
wind farm can be between 0.02 and 0.04 renewable kWh the generators get the
NLG/kWh. Feed back Eco tax. (Table 18.2).
3. Measures to create a reasonable pay Greenlabels. Each utility committed
back rate for renewable generators. itself to supply a 3.2% share of renew
able electricity in its total output in
The Ministry of Economic Affairs and
the year 2000. In 2000, Greenlabels
the association of Dutch energy
were traded at about 0.05 NLG/kWh
distribution companies EnergieNed
(0.023 Euro/kWh). The volume reached
agreed that energy companies pay for
about 1,500 GWh.
the avoided costs. They also took on the
obligation that the remaining costs, to 4. Stimulating market demand.
reach a reasonable pay back rate, is split
In 2000, energy distribution companies
equally between the utilities and the
offered their customers green electricity
government.
at a about the same price as grey
The basic reimbursement for avoided electricity. In 2000, about 600 GWh of
fuel costs, which was around 0.07 green electricity was sold to about
NLG/kWh (0.032 Euro/kWh) in 2000. 600,000 customers. Consumers that buy
green electricity do not have to pay the increasing size of wind turbines to 1.5 MW
Eco tax. The energy companies pay the and wind farms to 5 to 10 MW. Also project
Feed back Eco tax to the generator. The development costs are rising and the costs
energy companies use the difference to of electrical infrastructure are increasing,
buy green labels and invest in new due to greater distances to the medium
capacity. Grey electricity for domestic voltage grids. Indications are for turbines
purposes with an annual use of approx 1,900 NLG/kW, electrical infrastructure
imately 3,000 kWh, was priced at between 200 NLG/kW, and project development
0.25 and 0.30 NLG/kWh (0.11 to 0.13 200 NLG/kW. We estimate the average for
Euro/kWh), including VAT and Eco tax. large and small projects at 2,100 NLG/kW
For industrial purposes prices vary installed and 1,800 NLG/kW for turbines.
between 0.11 and 0.13 NLG/kWh (0.05
to 0.06 Euro/kWh). 18.5 DEPLOYMENT AND
CHALLENGES
18.4.2 Unit Cost Reduction
18.5.1 Wind Turbines Deployed
There are no reliable statistical data for
2000. There are indications that the cost The majority of the installed wind turbines
per installed kW is rising. This is due to in 2000 are from Vestas followed by NEG-
Micon. Two new turbine types were the 12 provincial Environmental Federations.
Enron-Tacke of 1.5 MW which was installed They issued a brochure called Frisse
in Zoetermeer along highway A12 and the Wind door Nederland5. In this brochure
new Enercon 40 of 600 kW and 44 meter they indicate locations per province that
diameter near Gouda (see Figure 18.3). The are suited for wind energy from their
Enron Tacke is owned by Siemens Renewable point of view. In total, they indicate new
Energy and has a view platform just under locations with a possible capacity of 1,695
the nacelle. to 1,840 MW on top of the already installed
420 MW in 1999.
In 2000, one large wind farm was installed
consisting of 10 Vestas wind turbines 18.6 ECONOMICS
of 1.65 MW. One wind farm consist of
10 Vestas wind turbines of 660 kW. The 18.6.1 Trends in Investments
remainder consist of two groups of 2 wind
Based on an average price of 2,100 NLG/kW,
turbines and the 1.5 MW machine. The
the investment in wind turbines totaled
rest of 23 wind turbines are solitary
82.7 million NLG in 2000.
(Table 18.4).
18.5.2 Operational Experience 18.6.2 Trends in Unit Costs of Generation
and Buy-Back Price
There were no major incidents or accidents
in 2000. For the more windy part of the Netherlands,
wind energy can be exploited economically.
18.5.3 Main Challenges in Market
There are no publicly available numbers
Development
for the cost price of wind energy. Estimates
The main challenge still is securing enough are that the cost price is varying form
locations to put up wind turbines. The 0.10 to 0.20 NLG/kWh (0.046 to 0.091
Minister of Economics Affairs in 2000 has Euro/kWh) depending on average wind
repeatedly asked municipal authorities to speed and the cost for capital and
work on a favorable policy for wind energy. maintenance an operation. The total pay-
Provinces are working on provincial back rate offered by energy companies for
spatial plans. A positive sign came in 5 to 10-year contracts in 2000 was
April 2000 from the Foundation for Nature between 0.15 to 0.175 NLG/kWh (0.068 to
and Environment in collaboration with the 0.080 Euro/kWh).
CAP- SWEPT-
NAME OF MANU- NO. OF HEIGHT DIA. ACITY AREA
WIND FARM FACTURER TURBINES (m) (m) (MW) (m2)
Almere Vestas 10 67.0 66.0 16.500 34,212
Amsterdam- Vestas 10 65.0 47.0 6.600 17,349
West
Zoetermeer Enron Wind 1 85.0 70.0 1.500 3,870
Borssele Vestas 2 65.0 47.0 1.300 3,470
Bath Vestas 2 60.0 47.0 1.300 3,470
Various Danish/Dutch/ 23 12.100 31,645
German
TOTAL 48 39.400 94,000
Figure 18.4 Enron-Tacke 1.5 MW with rotor 70.5 m with view platform just under the
nacelle
of Economic Affairs and the Ministry of producing large blades form ecologically
Science, two wind energy projects are friendly materials. The other is the
funded. One researches the possibilities of DOWEC project.
Table 18.5 Levels of R,D&D funding in The Netherlands 19912000 in NLG million
1991 1992 1993 1994
TWIN (subtotals)
Short term implementation 1.5 1.7 1.1 1.1
Long term implementation 0.1 0.2 0.4 0.3
Industrial development 4.0 3.6 3.5 3.5
Technical development 3.0 3.4 3.0 3.0
Dissemination of know-how 0.4 0.5 0.3 0.3
TWIN R,D&d total 9.0 9.4 8.3 8.1
Applied R&D (ECN) 2.5 2.5 3.0 3.0
R&D Universities (est.) 2.0 2.0 2.0 2.0
R&D Utilities 0.6 0.6 0.6 0.4
E.E.T. program
TOTAL 14.1 14.5 13.9 13.5
that the prototype of this turbine will be able to install a wind farm outside of the
ready in 2004. territorial waters. These activities include
all kinds of institutional items, technical
One of the major issues in the develop-
aspects, environmental, market and
ment of offshore wind turbines will be
economical issues, etc. For many of these
the improvement of the reliability of the
issues, the Near Shore demonstration
turbines. Especially for the North Sea
wind farm is an ideal small-scale test and
region, it will be necessary to improve the
demonstration facility.
reliability dramatically in order to get an
acceptable availability. The final report, Werken aan Offshore
Windenergie, (Working on Offshore Wind
18.8.3 Offshore Siting Energy) has been issued last June.
In February, the government decided on References:
the final location for the demonstration
project 100-MW Near Shore Wind farm. Derde Energienota, 1995, ISSN 0921-7371,
The selected location is situated about SDU Uitgeverij, Plantijnstraat, The Hague,
10 km off the coast near the village of Internet http://info.minez.nl/nota/enota
Egmond aan Zee. In April, the provincial Duurzame energie in opmars.
government of North Holland approved Actieprogramma 1997-2000, March 1997.
the intentions of the government. On Ministry of Economic Affairs, P.O. Box
December 15, the government confirmed 20101, NL-2500 EC, The Hague. Summary
the decision to build the wind farm at in English: Renewable Energy Advancing
Egmond aan Zee. After parliament has Power Action programme for 1997-2000,
taken a positive decision in spring 2001, Internet http://info.minez.nl
the tender procedure will start. Then the
interested consortia can apply for the Duurzame energie in Nederland, Bijdrage
concession to build and exploit the wind aan de energievoorziening 1990-1999.
farm. In connection to this 100 MW wind [Renewable energy in the netherlands.
park, two test locations will become Contribution to the energy supply 1990-
available for testing large offshore wind 1999. Preliminary version], January 2001,
turbines under realistic conditions. Novem, P.O. Box 8242, NL-3503 RE
Utrecht, The Netherlands
According to the requirements in the
environmental effect report for the Near Frisse Wind door Nederland, Stichting
Shore Wind farm, a monitoring and Natuur en Milieu, April 2000 to be
evaluation program has to be carried out. ordered form Stichting Natuur en Mileiu,
Novem has formulated the outlines of this Donkerstraat 17, 3511 KB Utrecht, fax +31
program, which cover environmental, 30 233 13 11, e-mail: snm@antenna.nl.
economical and technical aspects, in the Werken aan Offshore Windenergie,
beginning of 2000. According to these Activiteitenplan, Novem B.V., June 2000 to
outlines, this program has to start with an be ordered from Publicatiecentrum
evaluation of the undisturbed situation. Novem Apeldoorn P.O Box 1305, 7301
This whole program is aiming at learning APELDOORN, The Netherlands.
as much as possible from this near shore
wind farm for the larger offshore wind Author: Jaap L. 't Hooft, NOVEM, the
farms that have to be realized in the Netherlands
future.
At the same time, Novem has been work-
ing on a schedule for all the preparatory
activities that are necessary in order to be
NORWAY
CHAPTER 19
19.1 INTRODUCTION 2001 and 2002. An additional three projects,
There were not any wind farms built in with a total estimated energy production
Norway in 2000. The two wind farms capacity of 770 Gwh/year and 276 MW of
granted building permission and public total installed capacity, received building
financial support at the end of 1999 are permission at the end of 2000. Depending
still in the planning stage, mainly due to on the annual grants in the national
low electricity market prices. In addition, budget in the coming years, this could
several project developers did apply for imply a total installed capacity of 330 MW
building permission during 2000. In by the year 2004, or approximately one
December 2000, permission according to the third of the national target.
energy act was given to three wind farms, 19.3 COMMERCIAL
with an estimated total energy production IMPLEMENTATION
of about 770 GWh/year. The interest is
still high for wind power as a commercial 19.3.1 Installed Capacity
source for energy production, although No new wind power installations were
financing remains a substantial hurdle. commissioned during 2000, and the total
national installed capacity remains at 13 MW.
19.2 NATIONAL POLICY
An overview of the Norwegian wind
19.2.1 Strategy turbines and their energy production, both
Most of the electricity production in Norway in 2000 and an accumulated total, is shown
is based on hydro power. Remaining new in Table 19.1. However, the production is
hydro-power projects are limited both in size somewhat less than estimated, mainly due
and quantity, which has created a greater to wind conditions and some cases of
focus on wind energy. The ambition of the mechanical failures and repairs.
Norwegian government is to have an annual 19.3.2 Rates and Trends in Deployment
electricity production based on wind energy
of 3 TWh/year by 2010. This represents about Figure 19.1 below illustrates the increasing
1,000 to 1,100 MW of installed capacity, at trend of wind energy in recent years.
average availability at the most favorable
19.3.3 Contribution to National Energy
sites. With the current market situation,
Demand
these wind farms might require financial
support in the range of 2 billion NOK The total Norwegian electricity generating
(220 million USD). In 2000, the electricity capacity is about 27,833 MW, 98.9% of
production based on wind energy was about which is hydro-power. The mean
32.5 GWh, with an estimated full-year energy production from hydro-power is
production of about 37 GWh. 113.4 TWh/year. Thus, the contribution
from wind power is merely 0.03% of the
19.2.2 Progress Towards National Targets total electricity production capacity. If the
Two wind farms, of 39 MW and 4 MW, national target of 3 TWh/year by 2010
were given permission and financial is met, the wind energy share of the total
support at the end of 1999. By the end of electricity production will be approximately
2000, the final decision to build the wind 2.6%, assuming no significant capacity
farms still had not been madebut increase from other sources.
according to the developers, these wind
farms will most likely be erected during
6000 14000
Cumulative capacity (kW)
Capacity installed (kW)
12000
5000 Capacity installed
Cumulative capacity 10000
4000
8000
3000
6000
2000 4000
1000 2000
0 0
2000
1986
1987
1989
1988
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Year
Figure 19.1 Wind energy capacity 1986-2000, (in kW)
144 IEA R&D Wind Annual Report 2000
NATIONAL ACTIVITIES NORWAY
250
1997
1998
200
1999
X 2000
150
NOK/MWh
X X
X
X
X
100 X X
X
X
X X
50 X
0
1 2 3 4 5 6 7 8 9 10 11 12
Month
Figure 19.2 Spot market price of electricity 1997-2000 (Source: Nordpool ASA)
19.8 GOVERNMENT SPONSORED utility Statkraft SF, to consider the effects
R, D&D of large scale wind power on the overall
reliability, operation and maintenance
19.8.1 Priorities and electricity quality in the national
The Norwegian Water Resources and power system.
Energy Directorate coordinates public
support for projects in close collaboration 2. Short Term Estimations of Wind Energy.
with the Norwegian Research Council. To better achieve optimized electricity
Current priorities are for projects close production, a project utilizing an
to market introduction, and projects improved prognosis to estimate near
proposed by researchers in collaboration future wind resources has been under
with industrial partners are preferred. taken by Kjeller Vindteknikk AS, the
Norwegian Meteorological Institute
19.8.2 New R, D&D Developments
(DNMI), and Institute for Energy
In 2000, the following R, D&D projects Technology (IFE). The outcome of the
related to wind energy were financed by project is intended to increase the value
the Norwegian Research Council and/or of wind energy because wind energy
by the Norwegian Water Resources and production could be forecast with better
Energy Directorate, NVE. accuracy, which could enable wind
1. Large Scale Integration of Wind Energy energy to be sold at a somewhat higher
Into the Norwegian Electricity Grid. price.
An estimation of the Norwegian wind Norsk Hydro AS, together with Haugaland
energy potential indicates 13TWh/year kraft utility company and the Municipality
and 5,000 MW installed capacity. Current of Utsira, are doing a pre-feasibility study
installations still only include 23 wind of a combined wind/hydrogen/fuel cell
turbines, producing approximately installation on the Island Utsira off the
32.5 GWh/year, or merely 0.03% of the south-western coast of Norway. A similar
total electricity production. A study is study has also been undertaken by the
currently being undertaken by the utility Lofotkraft, together with the
Municipality of Rost. The site considered The Norwegian University of Science and
in the latter study is Rost Island in Lofoten, Technology (NTNU) and other research
off the coast of Nordland County. The institutions and industrial partners are
concept considered in both studies planning a full-scale test station for wind
consists of wind turbines covering a base turbines at the coast of Sor-Trondelag
electricity load and also feeding excess County.
electricity into an electrolyser to produce
As part of the Norwegian participation in
hydrogen. Stored hydrogen is subsequently
IEA Wind Annex XVII, a new system to
converted on-demand to electricity and
record wind speed time series at 20 Hz
heat through the use of fuel cells.
has been developed and will be installed
The company Vector is completing a at NTNUs wind measurement station on
project using numerical flow simulations, the coast of Sor-Trondelag. The measure-
based on existing wind measurements, to ments will be used to investigate the wind
form a rough wind atlas, which will be gust structure. Correlations in the wind
used as a basis for deciding where to speed field for distances typical of a wind
locate wind farms. The resulting wind turbine diameter are also being investigated.
atlas will be presented on the Internet at
1 NOK = 0.11 USD
http://windsim.com. The area considered
is the coastline from the southernmost tip Author: Harald Birkeland, Norwegian
of Norway, along the west coast and Water Resources and Energy Directorate,
north-east to the Russian border. Norway.
The IFE has, in collaboration with utility
companies Nord-Trondelag Elektrisitetsverk
and Kjeller Vindteknikk A/S, computed a
wind map covering the county of Nord-
Trondelag. The project is based on 40 years
of re-analyzed data and the meso-scale
MM5-model; it takes into consideration
both atmospheric flow and micro-scale
parameters. The final resource estimations
will be compared with in-situ measurements
and other calculations.
The IFE has also developed a numerical
micro-scale model called 3DWind, which
is a non-neutral, non-hydrostatic Navier-
Stokes Solver developed specifically to
estimate terrain effects not resolved by
meso-scale models and available measure-
ments. The model is both a practical tool
for evaluation of potential wind turbine
sites, as well as a research and educational
tool with optional effects not normally
accounted for in micro-scale models. The
options include a simplified energy
equation; buoyancy and the Coriolis
force; and zero, one, and two-equation
turbulence models.
SPAIN
CHAPTER 20
1999 1998
SOURCE Ktep % Ktep %
Oil 63,041 53.0 62,123 54.5
Coal 20,337 17.1 17,463 15.3
Nuclear 15,337 12.9 15,366 13.5
Gas 13,535 11.4 11,826 10.4
Renewable Energies 6,667 5.6 7,173 6.3
TOTAL 119,410 100.0 113,951 100.0
Saving Agency) and is the response to Table 20.2 Power target by autonomous
enactment of Law 54/19976 on the communities
Electricity Sector. That law defined the target AUTONOMOUS P.P. R.E.TARGET
of achieving at least a 12% contribution to COMMUNITY FOR 2000 (MW)
electricity demand in Spain from renewable
Andalucia 1,100
energies by the 2010. The program also is
the Spanish incorporation of the European Aragon 1,000
recommendations made in the White Asturias 300
Paper on Renewable Energies.
Islas Baleares 49
The target of the Program for Promotion Islas Canarias 250
of Renewable Energies (PPRE) for the
period 1999 to 2010, is to install 5,540 MW Cantabria 300
in the seven-year period from 1999 until Castilla-Leon 850
2006 and another 2,600 MW between 2007 Castilla-La Mancha 400
and 2010 (650 MW per year).
Catalua 425
In total, 8,140 MW must be added to the
Extremadura 225
834 MW existing on 31 December 1999 to
reach the figure of 8,974 MW for 2010. Galacia 2,500
Table 20.2 shows the share by autonomous Madrid 50
communities.
Murcia 300
Other actions included in the PPRE are: Navarra 635
New R, D&D National Program (large La Rioja 100
and small wind turbines)
Comunidad Valenciana 290
Financing the improvement of the Pais Vasco 200
transmission grids
TOTAL 8,974
10000
Target for 2010: 8,974 MW
9000
8000
7000
Target for 2006: 6,334 MW
6000
MW
5000
2000
1000
0
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Year
1994 23 73 46%
1995 46 119 63%
1996 95 214 80%
1997 213 427 100%
1998 407 834 95%
1999 705 1,539 85%
2000 795 2,334 52%
1500
1,200
(forecast)
1250
1000
795
MW
750 705
500
407
250 213
95
1 37 23 46
6
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Year
Figure 20.2 Annual power installed
Castilla Y Len
215 MW Aragn
234 MW
Catalua
71 MW
Valencia
Castilla-La Mancha 3 MW
323 MW
Andalucia Murcia
148 MW 11 MW
Islas Canarias
109 MW
500
450
400
350
300
GWh
250
200
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
the Spanish population. Also the benefits The Table 20.5 shows how the market is
obtained at the local level (landowners divided among manufacturers.
and municipalities) promote a favorable
attitude toward development of new 20.5.2 Main Constraints on Market
installations. Development
Some opposition has emerged recently
The conditions for developing wind
against the installation of new wind farms
projects in Spain are regulated under the
in the Galicia area and in the Castilla-Len
law of the Special Regime for Electricity
community. Local ecology groups complain
Production (December 1998). The grid
about the landscape impact and the
operator (REDESA, national public
company) and the utilities must allow the possible impact on bird life. However,
connection of wind turbines to the grid. that opposition is not an important
Developers have to fulfil the technical constraint for the development of new
requirements defined in the electrical law. wind plants in Spain.
The cost associated with the connection is The main constraint in market develop-
the responsibility of the developer of the ment is the limitation of the capacity of
plant. There have not been wide spread the grid for energy transmission.
complaints about the process to obtain Generally, the wind farms are located in
permission for connection to the grid. areas with low-density population, and
the grids there are weak and require
20.5.1 Wind Turbines Deployed reinforcement and improvement. Concerted
The wind turbines installed in 2000 in actions between utilities and developers
Spanish wind farms range in size from are ongoing to solve the problem.
600 kW to 1,650 kW. The largest wind
turbine is the 1,650-kW Gamesa-Vestas, 20.6 ECONOMICS
followed by the 1,320-kW MADE. Wind
20.6.1 Trends in Unit cost of Generation
turbines of 600, 630, 640, 660, 700, 750,
and Buy-Back Electricity Prices
and 800 kW have been used. The average
generating capacity of a wind turbine in The Royal Law 2818/1998 of 23 December
Spain for 2000 is 661 kW. 1998 about the Electrical Special Regime
TOTAL RATE OF
WIND NUMBER OF POWER POWER
MANUFACTURER FARMS WIND TURBINES (MW) (%)
Gambesa 33 887 587.59 63.4
Ecotechia 6 276 183.09 19.7
Made 11 125 82.78 8.9
Bazan-Bonus 3 77 46.20 5.0
NEG Micon 3 37 27.75 3.0
TOTAL 56 1,402 927.41 100.0
for renewable energy plants connected to such as blades, generators, gear boxes,
the grid, fixed the conditions of the plants towers, wind sensors, etc. Also the
to be included in this special regime. This service sector (installation, maintenance,
law was a new step in the strategy for engineering) has grown in the last year.
promoting the use of renewable energy,
with the specific target that the contribution 20.7.1 Manufacturing
of the renewable energy to the Spanish The companies that are leading the
energetic demand, will be at least 12% for Spanish wind industry are Gamesa Elica,
the year 2010. All the installations using Ecotecnia, Made, Bazan-Bonus, Desa, and
renewable energy as their primary source, Taim-Neg Micon. Other manufacturers are
with installed power equal to or lower initiating their activities in Spain, such as
than 50 MW, could be included in that Enron Wind Iberica S.L:, Nordex or DeWind.
regime. The regime gives two choices to
producers. One is a fixed price for the GAMESA EOLICA is manufacturing wind
kWh generated. The second option is a turbines using Vestas Technology. The
variable price, calculated from the average majority of the components are
price of the market-pool, plus a bonus per manufactured in Spain (including blades).
During 2000, Gamesa installed 887 units
kWh produced. The fixed price and the
with a total of 587 MW.
bonus will be up-dated every year by the
Spanish Ministry of Energy and Industry ECOTECNIA started wind technology
according to the annual variation of the development in 1981, having more than
market price. The up-dated prices for 2000 nineteen years of experience in that field.
are presented in Table 20.6. The company has a technical staff of 60
people. It also has two factories, one
For 2001, the prices will be maintained,
located in Somozas (La Corua), and the
even taking into account that the average
other in Buuel (Navarra), with a total of
electricity price in 2000 decreased nearly
120 workers. During 1999, Ecotecnia was
2%.
incorporated into the MCC group, one of
20.7 INDUSTRY the biggest world-wide co-operatives, with
activities in the industrial, distribution,
Activity to install wind generators has
and financial sectors.
stimulated development of the Spanish
wind industry, covering not only the The wind turbine models under production
manufacture of complete wind turbines include the ECO/640 kW and ECO/750 kW.
but also the manufacture of components They are three-bladed, stall-control wind
Table 20.6 Buy-back electricity prices for renewable enrgy systems in 2000 and 2001
BONUS ADDED TO
RENEWABLE THE BASE PRICE FIXED PRICE
SOURCE (Euro/kWh) (Euro/kWh)
SWEDEN
CHAPTER 21
500
400
300
GWh
200
100
0
82 84 86 88 90 92 94 96 98 00
Year
Figure 21.1 Wind power generation in Sweden (GWh)
250
200
150
MW
100
50
0
82 84 86 88 90 92 94 96 98 00
Year
Table 21.1 Total installed electricity capacity and generation in Sweden 31 Decembr 2000
2000 2000
GENERATOR TYPE MW TWh
HYDRO POWER 16,192 76.90
NUCLEAR POWER 9,452 54.20
THERMAL POWER PRODUCTION 3,541 8.90
(CHP, cold condensing)
WIND POWER 241 0.44
liberalized electricity market. All On top of the market price, the wind
consumers are free to choose their electricity turbine owner receives by law an
supplier. The objectives of the reform have environmental bonus, which has been
been to increase the freedom of choice for 0.162 SEK/kWh during 2000 (corresponding
electricity consumers and to create to the electricity tax for households).
conditions for greater pressure on prices Additionally, a temporary support of
and costs in the electricity supply. 0.090 SEK/kWh will secure the economy
of the small-scale electricity producers
The successful deregulation of the (max. generator size 1500 kW). For 2001,
Swedish and Nordic electricity markets the government has presented a proposition
has led to low electricity prices. There is with an increased environmental bonus
an obvious risk that renewables might to 0.181 SEK/kWh and a continued
lose market share due to the low electricity small-scale generation support of
prices. The liberalization of the electricity 0.090 SEK/kWh. The wind turbine owner
and gas markets forces the industry to also gets an income from the transmission
constantly strive for improving their net owner, related to the value of the
efficiency and competitiveness. decreased electricity net losses, which on
Since 1 November 1999, the wind energy average results in about 0.010 to 0.015
producers compete in the same market as SEK/kWh. The deregulated market also
conventional electricity producers. The allows the turbine owner to sell electricity
average North Pool price in Sweden to any customer. This gives the opportunity
during 2000 was 0.120 SEK/kWh. The for a wind electricity market.
very low market price this year was A second market stimulation program
caused by extremely large quantities of started on 1 July 1997. The 15% investment
rain and new records in hydro-power subsidy subsidy has a five-year budget of
generation in the connected electricity 380 MSEK. By the end of 2000, SNEA had
system (Sweden, Norway, and Finland). received applications for investment
Hydro-power generation rose to about subsidies for projects with a total invest-
40 TWh above a normal year in the ment value of 2,012 MSEK, and the total
combined system. See North Pools granted subsidies amounted to 228 MSEK.
homepage: www.nordpool.no under The granted subsidies for 2000 were
Elspot and then Monthly prices. 83.8 MSEK. These projects had a generating
capacity of 62 MW.
9200 9100
9155 9170
9000
8800
8696
8600 8576
8508 8552
SEK/kW
8360 8389
8400
8239
8200
8000
7800
7600
225 560 660 850 1500
Capacity (kW)
Figure 21.3 Unit costs in SEK/kW with wind power projects grouped per turbine size
International Energy Agency 163
SWEDEN
100
93
90
80
80
Number of turbines
70
60
50
40
33
30
25
21
20
10 7
10
0
225 500 600 660 750 1000 1500
850
Capacity (kW)
Figure 21.4 Number of wind turbines of specific capacity in projects in the investment
subsidy program (1997 to 2000)
The prices on the market for high-voltage the local grid value of in average
electricity paid by certain customers, 0.010 SEK/kWh,
industrial plants and distributors may be
These supports total 0.392 SEK/kWh.
close to the bulk power price. On the
market for low-voltage electricity, the This price model was in force until the
distribution costs are considerably higher. end of 2000. In autumn 2000, the Swedish
The price of bulk power as a proportion government decided to prolong the price
of the price paid by the end customer is model another two years, until end of
consequently relatively low at just under 2002. Thereafter, a new system with Green
one-third of the price, excluding taxes, Certificates will be implemented from
payable by a household without electric 2003 on.
heating (Table 21.2). The prices charged to
various customer categories are determined 21.7 INDUSTRY
by tariff systems, which are made up of a 21.7.1 Industry Development and
mixture of variable and fixed charges. Manufacturing. MW-Rated Turbines
During 2000, wind turbine owners received Two manufacturers have developed large
a market tender price and other support wind turbines in Sweden: Kvaerner
as follows. Turbin AB and Nordic Windpower AB.
a market tender price of around Kvaerner Turbin AB has developed and
0.130 SEK/kWh, sold Nsudden I (2,000 kW) and
Nsudden II (3,000 kW). Vattenfall AB is
an environmental bonus of
the purchaser of both turbines. Kvaerner
0.162 SEK/kWh,
has also been a partner in the OPTI
a temporary subsidy of 0.090 SEK/kWh OWEC project for offshore wind turbines
for small generators max 1,500 kW, and
Table 21.2 Price of network service and electricity, excluding taxes, on January 1, 2000
in sales of electricity to various typical customers
The work has mainly been carried out and data since 1995 and shown a good local
administrated in the Wind Energy Program wind resource equivalent with the island
VKK (VKK stands for wind energy of Gotland. An evaluation program will
knowledgecompetence). VKK was be operated for three years. The project is
formed in 1994 and is led by the Aeronautical sponsored by SNEA.
Research Institute of Sweden (FFA).
2 The Power Quality of Wind Turbines
For more information see the Web page:
(Author: ke Larsson)
http://www.ffa.se/windenergy/
windenergy.html. At the department of Electric Power
Engineering at Chalmers University, a
21.8.1 Priorities dissertation was published during the year,
The research has been very technology dealing with the power quality of wind
oriented, but now when more wind turbines. The first part of the thesis describes
turbines are fitting into the landscape, the electrical systems used in wind turbines.
softer issues (planning, environmental, The second part presents the results of
acceptance) have to be given higher measurements of different types of wind
priority. At the same time, it is important turbines connected to different types of
to continue research in the conventional grids. The measurements include voltage
technology areas in order to increase and frequency variations, flicker, transients
turbine availability and reduce costs. and harmonics. The third part deals with
future standards for measuring and testing
21.8.2 New R, D&D Developments wind turbine power quality. In the last
In the following, some of the current part, regulatory requirements concerning
research and demonstration projects are the power quality of wind turbines are
presented. discussed. Special emphasis has been
given to flicker and flicker calculations
1. Complex Terrain and Cold Climate Siting according to new recommendations for
Rodovlen in Hrjedalen the grid connection of wind turbines. The
new recommendations provide tools for
The company Agrivind has erected three predicting the interaction between wind
wind turbines on a mountain top in turbines and the grid. Wind turbines
Hrjedalen in the middle of Sweden. One which, in combination with the grid, are
turbine has a capacity of 750 kW and two likely to cause power quality problems
have a capacity of 600 kW. The objective can at an early stage of planning be
of the project is to contribute to the devel- rejected and replaced by a more proper
opment of wind power technology in cold type of wind turbine.
climates. The project is sponsored by
SNEA. In connection with this project, a 3. Development of a standardized cup
study of environmental effects on reindeer anemometer suited to wind energy
has been initiated. applications, CLASSCUP
(Authors: J- Dahlberg, T. F. Pedersen,
Suorva in Lapland D. Westermann)
In October 1998, at one of its large hydro- The primary objective of the CLASSCUP
power dams in the Lule River valley, the project (EU-project co-ordinated by FFA
utility Vattenfall erected a 600-kW wind with Ris and DEWI as partners) was to
turbine with a Finnish-Danish non-icing develop an optimum design for a cup
system in the blades. Suorva is situated anemometer, which is essentially free from
100 km north of the Arctic Circle. A 35-m the observed design faults associated with
mast with four anemometers has recorded most of the instruments currently
commercially available. The faults are A new anemometer design has been
specifically: no definition of what they developed with much improved angular
measure, bad angular characteristics, high characteristics compared to all known
sensitivity to friction in bearings, and no existing cup anemometers.
documented sensitivity to dynamics. The
21.8.3 Offshore Siting
secondary objective was to prepare a
classification system, which will allow 1. Nogersund
users of anemometers in the wind energy
industry to select anemometers suited to In 1990, the first offshore wind turbine
their specific applications and requirements. was erected in Sweden, a 220-kW turbine
at Nogersund.
The approach of the project has been
largely experimental with a clear practical 2. Bockstigen, Valar
objective. Extensive parametric studies An offshore demonstration plant with five
were undertaken, and more than 400 cup 500-kW turbines was erected in early 1998
anemometer configurations have been four km south of Nsudden on Gotland.
tested in wind tunnels. The Swedish wind farm developer
The following has been achieved/studied: Vindkompaniet AB performed the project.
The Bockstigen Valar project is sponsored
the new anemometer design; by EU (THERMIE) and SNEA.
geometric parameters that affect the 3. Utgrunden
sensitivity of cup anemometers to
out-of-plane wind speed components; In autumn 2000, Enron/Tacke erected and
commissioned a 10-MW wind farm
parameters that affect the dynamic consisting of seven 1.425-MW turbines
effects (over-speeding) of cup south of the light-house Utgrunden in the
anemometers; sound, Kalmarsund, between the main
land and the island land. The Utgrunden
results from field tests and wind
offshore wind farm is the first offshore
tunnel tests with commercial
wind energy project using machines in the
anemometers and the new anemometer
megawatt class. The plant is built 12 km
design;
offshore from Bergkvara at the Swedish
temperature effects of friction in southeast coast and 9 km from land. It is
bearings; expected to generate 38 GWh annually.
dynamic effects such as over-speeding The rotor diameter is 70.5 m and the hub
and filtering effects and the possible height 65 m. The foundation for each
benefit of inclusion of de-convolution turbine consists of a steel pipe, over 30 m
in the measurements; long, 3 m in diameter with a weight of
more than 100 tons. The monopiles are
a classification system for cup
hammered 19 m down into the sea floor.
anemometers;
Water depth is around 8 m.
guidance on how the classification
The turbines operate with full variable
will be influenced by angular response
pitch and full variable speed that will
and over-speeding (slope and
smooth both the mechanical and electrical
saturation level) characteristics.
loads. With this ability to control the loads,
A thorough knowledge has been built up a soft-soft monopile has been constructed
of important parameters for the performance with the wind turbine operating at a
of cup anemometers for different purposes. speed above the natural frequency of
monopile with tower. This approach Discussions are going on with local and
saved 50 tons of weight. The maintenance regional authorities along several parts of
strategies are based on further distance to the long Swedish coastat the West Coast
service base. and in the Baltic Sea. The final outcome of
these broad activities will depend on the
The Utgrunden project started electricity results from the ongoing Governmental
generation in December 2000 as the initiatives discussed earlier in this chapter.
largest offshore wind farm at sea in the These include a future Green Certificate
world and it is sponsored by SNEA. System; the Governmental working
4. Other plans for wind power offshore group for pilot plants offshore and in the
mountains; the planning preparations for
In the resund sound, between Sweden implementation of wind turbines from
and Denmark, the company Eurowind has SNEA; and when the Government will
applied for permission for an offshore determine a long-term national deploy-
project using 48 1.5-MW wind turbines. ment target for wind power.
Another project West of the city Karlskrona
in southeast Sweden has had a feasibility Authors: Susann Persson, the Swedish
study conducted by the utility Vattenfall National Energy Administration and
for an offshore project with 3 to 4-MW Kenneth Averstad, Vattenfall AB, Sweden
wind turbines. In the citys preliminary
oversight planning, the offshore site is
planned for about 100 MW-size wind
turbines.
The total number of large offshore wind
farm projects in different planning and
study phases in Sweden is very large.
UNITED KINGDOM
CHAPTER 22
During the mid-1980s and early 1990s, the To make a contribution to rural
program concentrated on technology development.
development and demonstration, which The objective is to increase the contribution
has helped to establish UK expertise in of electricity supplied from renewables to
wind energy. Collaborative product 5% by the end of 2003, rising to 10% by
development with the industry to develop 2010, subject an acceptable consumer cost.
turbines and key components is a core
element of the program and accounts 22.2.1 Strategy
for the bulk of its external expenditure. The Governments new strategy has a
The key objective of development, number of key policy themes, including
demonstration, and monitoring of new the new Renewables Obligation for
turbines or components, is to reduce the England and Wales, and the analogous
cost of wind energy and expand the UK Renewables (Scotland) Obligation. This
share of the turbine and component puts an obligation on all electricity supply
markets. The other key element of the companies to procure a rising percentage
program is to enable the effective of their power from renewables, with the
exploitation of the resource, and contribute aim of reaching 10% of UK electricity from
to national targets for generation from renewable sources by 2010 (see Section
renewables and emissions reduction. 22.4.1 for further details). Other policy
strands are as follows.
22.2 NATIONAL POLICY
Exemption of electricity generated
In February 2000, the UK government from renewables from the Climate
published its new policy on renewable Change Levy (a tax on business use of
energy. This has five key aims, which are energy).
as follows.
A supporting program of research and
To assist the UK in meeting national development and technology transfer
and international targets for the to provide a technology push and
reduction of emissions, including assistance in overcoming non-technical
greenhouse gases. barriers to deployment.
NATIONAL ACTIVITIES
Table 22.1 Size, timing, and progress on the renewable energy obligations
ORDER EFFECTIVE NO. PROJECTS NO. PROJECTS CONTRACTED OPERATING NO. TURBINES
START DATE CONTRACTED OPERATING CAPACITY MW CAPACITY INSTALLED*
RATED (approx.) MW RATED
NFFO-1 1990 9 7 28.0 27.63 75
NFFO-2 1992 49 25 196.0 122.41 355
NFFO-3 (>3.7 MW) 1995 31 9 339.0 88.64 153
NFFO-3 (<3.7 MW) 1995 24 9 46.0 18.14 34
NFFO-4 (>1.76 MW) 1997 48 1 768.0 6.50 5
NFFO-4 (<1.76 MW) 1997 17 4 24.2 6.60 6
NFFO-5 (>2.3 MW) 1998 33 768.0
NFFO-5 (<2.3 MW) 1998 36 2 67.0 3.30 5
SRO-1 1995 11 1 148.0 62.60 110
SRO-2 1997 7 101.0
SRO-3 (>2.3 MW) 1999 11 1 148.0 17.16 26
SRO-3 (<2.3 MW) 1999 17 1 33.0 2.00 1
NI-NFFO1 1994 6 6 29.0 30.00 60
NI-NFFO2 1996 2 2 6.0 6.28 9
TOTAL 302 75 2659.0 391.26 839
UNITED KINGDOM
*Source: BWEA website
173
UNITED KINGDOM
450 90
400 80
Cumulative capacity (MW)
Annual capacity
300 60
250 50
200 40
150 30
100 20
50 10
0 0
1994 1995 1996 1997 1998 1999 2000
Year
Hill, Ayrshire, and a 1.5-MW turbine 2000 is 524.8 GWh, with Northern Ireland
on Orkney) and England (a 2-MW producing 112.2 GWh, Scotland producing
turbine at Blyth Harbour Offshore). 158.7 GWh, and the remaining 253.9 GWh
The Hare Hill wind farm appears to coming from England and Wales. These
have been built in anticipation of the estimates are extrapolated from energy
introduction of the new Renewables output data from the first three quarters
Obligation and the Climate Change of the year. The quarter-by-quarter output
Levy, being developed and owned by from the projects is shown in Figure 22.2.
an electricity supply company who will
No major operational problems were
be directly affected by the Renewables
reported during 2000 and high availabilities
Obligation.
were achieved.
The first offshore installation at Blyth
Records from January 1999 of the earliest
Harbour, Northumberland (see Section
wind farms developed in the first two
22.8.3 for details).
rounds of the NFFO were unavailable.
The first 2-MW turbines installed off Electricity produced by these wind farms
shore at Blyth, and onshore for testing is no longer traded via the NFFO system,
at a high-wind speed site on Orkney. hence information on the quantity of
electricity generated is no longer obtainable.
For the second year running, there were
This is also true for new schemes without
no new developments in Wales.
NFFO contracts. Therefore, output figures
One landmark change in 2000 was the can only be estimated crudely from the
demolishing of the largest wind turbine installed capacity and a single assumed
in the UKthe WEG LS1, a 3-MW load factor. This approach gives an
experimental machine on Orkney. This estimated output for 2000 of 370 GWh.
two-bladed machine was commissioned
in 1987 and operated successfully for 22.5.3 Main Constraints on Market
many years, but did not generate reliably Development
for some time before it was demolished. Although the new capacity installed
increased in 2000, the deployment rate
22.5.2 Operational Experience still reflects the difficulties encountered by
The estimated output from UK wind developers in gaining planning consent.
farms with current NFFO contracts in The figures presented in Table 22.1 clearly
200
180 Northern Ireland
160 Scotland
Output (GWh)
show that there are a large number of systems (radar) and low flying aircraft.
projects that could be developed. There is a working group on wind farms
and their impact on aviation interests that
To take forward the objective of getting
includes representatives from defense and
more local involvement and ownership
civil aviation groups as well as DTI and
of environmental policy in 1999, the
UK industry. The aim of the working group
Government requested that the regions
is to provide information and advice to
come forward with regional strategies and
developers, planners, military, and civil
targets for renewable energy. These were
aviation personnel on potential effects.
to follow after an examination of the local
resources and a full consultation with The transition from the Renewables Orders
local groups of what can be realistically to the Renewables Obligation may cause a
achievable in the region. The overall aim hiatus in further deployment, particularly
is that the strategies and targets should for offshore schemes. This may be
feed through into Development Plans, exacerbated by the uncertainty over how
which are the starting point for planning well wind energy will fare in the new
decisions at a local level. electricity market in England and Wales.
The New Electricity Trading Arrangements
The target was for this process to be
(NETA) will be introduced in 2001 and
complete by the end of 2000. Although
replace the Pool. The difference in the
studies of regional renewable energy
market, which affects small generators in
resources are underway in many regions,
general and wind energy in particular,
none were completed or published as of
is that it is structured to penalize
December 2000.
unpredictable generation, either more or
Another positive step with regard to less than predicted. Generators are to
planning was the publication of new declare their expected output three and a
Scottish Planning Guidance for renewables. half hours prior to the trading (generating)
The wind industry has welcomed this period. It is not possible to estimate the
the guidance is generally positive in tone effect that NETA might have on the price
and has removed the requirement for wind available for wind energy until the new
farms to be approved by the Secretary of market is operational for some time.
State, a step which delayed projects.
On the positive side, the Government
A new development for obtaining consent recognized the difficulties that embedded
for wind farms this year is that, for the generators (small generators connected to
first time, developers have chosen to the distribution network, mostly renewables
apply for consent to build very large wind and combined heat and power) face; and
schemes, with an installed capacity of in March 2000, the Government set up a
more than 50 MW. All electricity-generating working group to consider a range of issues
projects over 50 MW go through a different and what could be done about them. The
consenting mechanism, via the Secretary group is expected to report and make
of State for the DTI, rather than the local recommendations early in 2001.
planning authority, although the authority 22.6 ECONOMICS
is still consulted. Decisions on these
consents are expected in 2001. 22.6.1 Trends in Investment
1. Type of funding available
Another constraint for onshore and off-
shore wind deployment in the UK is the Finance for wind farms is obtained largely
effect that wind farms may have on from corporate investors and banks,
aviation, both in terms of navigational although there is a small amount of
private investment. There has been no 22.6.2 Trends in Unit Costs of Generation
direct public funding available for capital and Buy-Back Prices
investment in wind farms. The premium Table 22.2 shows the progressive reduction
prices from the Renewables Energy Orders in the contract prices for generation for
were considered sufficient incentive. successive Renewable Energy Order
Changes to the electricity trading system tranches. It should be stressed that the
and support mechanism for renewables contract period for the first two NFFO
will need to be fully understood before rounds lasted only until 1998, which
any new phase begins in either corporate meant that developers had between four
or individual investment. and six years to recoup their investment.
The Government has announced that The comparatively high contract prices
some limited capital grant funding for awarded during these first two rounds
offshore wind schemes will be available were designed to ensure that repayment
beginning in 2001. This is in recognition on investment could be achieved in a
of the fact that, while offshore wind is short time.
expected to make a significant contribution Later rounds of NFFO and the SRO
to renewable energy targets, electricity allowed a more reasonable planning
from offshore wind will be more expensive window of five years, followed by
initially than that from the more established 15-year, index-linked contracts. These
renewables. It will also be difficult for off- figures show that, in real terms, contract
shore wind to compete on price under the prices have fallen in line with Government
Renewables Obligation. Grants will be policy. Specific provision was made to
assigned competitively, and the maximum encourage the development of smaller
level of funding will be 40%. A register for projects by landowners and other
expressions of interest in the grants will developers with limited resources. The
be opened in January 2001, and competition higher costs associated with this approach
is due to be closed by the end of the year. are reflected in the higher contract prices
Grants are expected to be announced in awarded for the small bands in the last
September 2002. three NFFO tranches and the third round
2. Typical financial interest rates of the SRO.
Given the short time elapsed since the
Interest rates from banks are typically 1.5%
final two rounds of the NFFO, it is not
above the London Inter Bank Offered Rate
surprising that few of these wind farms
(LIBOR). Equity/debt ratios are typically
have been commissioned to date
25/75, with investors requiring a post-tax
(see Table 22.1). The competitive system
return on equity between 15% and 25%.
of the NFFO and SRO has undoubtedly
Clearly, these figures can vary considerably
achieved convergence with the market
from project to project. However, many of
price for electricity. Whether developers can
the recent developments are financed from
build wind farms at the low contract prices
the balance sheets of larger companies
awarded in NFFO-4, NFFO-5, and SRO-3
(mostly utilities). They accept lower real
rounds has yet to be fully demonstrated.
rates of return, between 8% and 12%
depending on the associated risk. This has It is difficult to predict the price available to
contributed to the reduction of costs and wind generators under the new Obligation.
accounts for the lowest bid prices in Generators will have two separate products
recent NFFOs. to sell: the electricity (with the additional
value of exemption from the Climate Change
Levy) and the Renewable Obligation
Table 22.2 Contracted capacity and prices for wind energy schemes awarded UK Renewable Energy Orders
NATIONAL ACTIVITIES
TRANCHE CONTRACTED NO. OF
EFFECTIVE CAPACITY SCHEMES PRICE RANGE AVERAGE PRICE
START DATE (MW INSTALLED) CONTRACTED p/kWh p/kWh
NFFO-1 1990 28.0 9 10.0*1
NFFO-2 1992 196.0 49 11.0*2
NFFO-3 (>3.8 MW) 1995 339.0 31 3.984.80 4.32
NFFO-3 (<3.8 MW) 1995 46.0 24 4.495.99 5.29
NFFO-4 (>1.8 MW) 1997 768.0 48 3.113.80 3.53
NFFO-4 (<1.8 MW) 1997 24.0 17 4.094.95 4.57
NFFO-5 (>2.4 MW) 1998 768.0 33 2.433.10 2.88
NFFO-5 (<2.4 MW) 1998 67.0 36 3.404.60 4.18
SRO-1 1995 106.0 12 3.794.17 3.99
SRO-2 1997 101.0 7 2.742.94 2.86
SRO-3 (>2.3 MW) 1999 148.0 11 1.892.19 2.02
SRO-3 (<2.3 MW) 1999 33.0 17 2.633.38 3.04
NI-NFFO1 1994 29.0 6 N/A*3 N/A*3
NI-NFFO2 1996 6.0 2 N/A*3 N/A*3
*1Only the highest successful bid price was published for NFFO-1.
UNITED KINGDOM
*2In
NFFO-2 a single maximum strike price was offered to all contracts in the wind band.
*3Not available. For NI-NFFO-1 and -2 only the average price for all sucessful schemes was published this was 6p/kWh for NI-NFFO-1 and 4p/kWh for NI-NFFO-2.
179
UNITED KINGDOM
UNITED STATES
CHAPTER 23
available in many parts of the country, deregulated power markets, has caused a
and because the cost of wind power has surge in new wind project starts. Although
dropped dramatically, wind energy is it has taken some time for new projects to
expected to play a key role in meeting be developed and contracts issued, large-
Departmental objectives to increase energy scale commercial installation of wind
security with resource diversification, plants is now underway in many parts of
emphasizing domestic sources. the country.
23.3 COMMERCIAL During the year 2000, total installed
IMPLEMENTATION capacity in the United States increased a
OF WIND POWER modest amount, from 2,455 MW to about
2,554 MW. However, many new projects
Commercial implementation of wind
were started that are expected to add at
power is directly dependent on the
least 2,700 MW of wind plants by the end
prevailing cost of electricity, growth in
of 2001, raising installed capacity to over
demand for electricity, and existing
5,200 MW. This includes repowering some
incentives to use conventional or renewable
400 MW of older plants by replacing out-
energy sources. These factors vary
dated machines that will be removed from
significantly and depend on the commercial
service. Figure 23.1 shows the current and
domestic energy market segments, which
projected distribution of wind power plant
are also evolving differently. Nationally,
capacity across the United States. During
the average price for electricity is 0.067
2000, wind power plants produced an
USD/kWh and is essentially unchanged
estimated 6 TWh of electricity, which is
from 1999. Some states have much higher
less than 0.2% of national electric demand.
rates, up to 0.138 USD in Hawaii, and
others are as low as 0.041 USD/kWh in Regional development of wind power
Idaho. Generally, residential rates are plants is influenced by local and state
highest, averaging 0.082 USD/kWh, and policies, and the additional price
industrial rates are lowest, averaging consumers are willing to pay for green
0.044 USD/kWh. California has the ninth power. For example, in Pennsylvanias
highest residential rate, with an average deregulated power market, green electricity
of 0.107 USD/kWh. A discussion of the products are being offered at prices ranging
three distinct wind power market segments from 0.055 to 0.071 USD/kWh. The average
follows. price for consumers in the state during
2000 was approximately 0.064 USD/kWh.
23.3.1 Large-Scale, Grid-Connected Wind Figure 23.2 shows a 10.4-MW wind power
Power Plants plant located in Garrett County,
Large-scale, grid-connected wind power Pennsylvania, with eight 1.3-MW Nordex
plants are the fastest growing market turbines producing power for Green
segment for the wind power business, Mountain Energy Company. Several
and the growth is accelerating at an additional, larger plants are being built to
unprecedented rate. The national wind supply this green power market.
energy Production Tax Credit, combined
with technology improvements, had been 23.3.2 Distributed Generation Wind
a catalyst for much of the growth in prior Power
years. This tax credit expired in June 1999, Distributed generation wind power is
but on 17 December 1999, it was retro- another emerging market segment. Although
actively extended through December 2001. most of the wind power development in
This extension, combined with incentives the United States is comprised of wind
at the state level and the emergence of power plants ranging between 10 and
UNITED STATES
New Hampshire
0.1 Maine
(0.1) 0.1
Massachusetts (26.2)
0.3
(7.8)
Wisconsin Vermont
23.0 6.0
Washington (78.0)
(213.3) Montana North Dakota (11.0)
0.4 Minnesota
Alaska 0.1 278.4 Michigan
(22.1) (0.5)
0.8 Oregon (359.1) 0.6
(1.2) 25.1 (0.6)
(149.7) South Dakota
Wyoming (2.1) New York
90.6 18.2
(100.6) Iowa (115.3)
Nebraska 242.5
2.8 (421.5) Illinois Pennsylvania
(2.8) (30.0) 10.5
Utah (86.3)
0.2 Coloraado
(0.2) 21.6 Kansas West Virginia
California (56.8) 1.5 (85.0)
1646.4 (1.5)
(2665.8) Tennessee
2.0 (2.0)
New Mexico
0.7
(1.3)
Hawaii Texas
1.6 180.5
(41.3) (865.4)
IEA R&D Wind Annual Report 2000
Figure 23.1 Wind power plant installed capacity in the United States at the end of 2000 and projected by the end of 2001
NATIONAL ACTIVITIES UNITED STATES
Figure 23.2 The 10-MW wind power plant located in Garrett County, Pennsylvania
200 MW or more, there is increasing interest facilities needed to serve growing loads or
from businesses, farms, and landowners to provide voltage support on weak lines.
to install individual turbines or small More often, however, distributed generation
clusters of machines to provide electricity will provide modest-to-no power system
for nearby loads. These grid-connected benefits and may require reinforcement of
turbines range in size from 10 kW to over the distribution grid.
1 MW. In some states, favorable net
billing policies are in place that permit 23.3.3 Wind-Diesel Hybrid Power
wind turbine owners to sell power to the Wind-diesel hybrid power for isolated
grid for the same retail price as purchased communities is another growth market for
power. In most cases, net billing is limited wind power. Many locations are not
to installations under 100 kW, and if the
connected to the electric power grid, so
net generation exceeds the customers
the use of wind can alleviate concerns over
monthly electricity demand, then the
fuel cost, availability, delivery, and the
price for the excess is usually the utilitys
environment. In Kotzebue, Alaska, a wind
avoided cost.
project has been operating successfully for
Distributed generation could account for three years. At this site, ten 65-kW Atlantic
20% or more of new installations coming Orient Corporation (AOC) wind turbines
online in the next ten years. A study have been connected to the isolated grid
on the technical and economic issues in system, along with six existing diesel-
this market segment was completed in powered generators, totaling 11 MW.
October 2000 for the National Wind Despite the severe arctic weather, turbine
Coordinating Committee. Study results availability has been over 98%, and each
showed that utilities in the United States wind turbine is saving over 6,000 gallons
have had little experience dealing with of diesel fuel annually. Two additional
single turbines or small clusters of machines AOC turbines have been installed in the
connected to their distribution lines. In community of Wales, Alaska. This isolated
some instances, distributed generation village is located 177 km northwest of
could reduce line losses and delay, or Nome, Alaska, and 80 km east of Russia
eliminate the addition of power distribution and sees some of the strongest, steadiest
winds in the state. This wind plant project Renewable energy production incentive
is designed to evaluate the use of thermal
For municipal utilities that do not pay
sinks and batteries to store excess wind
taxes to the federal government, there is
energy to provide heat and power during
an incentive payment available from the
low wind periods. The wind system is
DOE. Much like the tax credit described
expected to provide more than half of the
above, applicants can receive a payment of
electricity needs of the 165 residents of
0.017 USD/kWh produced over a ten-year
Wales.
period (indexed to inflation) for plants
23.4 MARKET DEVELOPMENT brought online prior to 31 December 2001.
AND STIMULATION This payment is subject to available funding.
Individual state policies and incentives Green power purchasing choices
are having an increasing influence on
In an increasing number of states,
regional development of wind power. An
residential and commercial customers
increasing variety of approaches are being
can choose to purchase electricity from
developed at both the state and federal
environmentally benign or so-called
levels. Many of these innovative programs
green sources. Many companies that are
are working, but the most effective are
large power consumers are beginning to
those that feature clearly defined goals,
embrace green energy. One partnership,
long-term (typically ten-year) benefits
called the Green Power Market Development
and/or penalties, and freedom for suppliers
Group, is working to develop 1,000 MW
and consumers to choose among the
of new green energy capacity. Companies
various renewable energy technologies.
in this consortium include DuPont,
23.4.1 Mechanisms Stimulating Wind General Motors, IBM, Interface, Johnson
Energy Markets & Johnson, Kinkos, and Pitney Bowes.
Typically, a small premium is paid for
The following are examples of important green power that depends on the
mechanisms that are helping to expand renewable resource and on the supplier.
wind energy use. For wind power, the premium is as low as
Wind energy production tax credit 0.01 USD/kWh, with an average of
approximately 0.025 USD/kWh for all
A tax credit is available from the federal renewable technologies. More information
government for energy produced from is available from the Green Power
wind and several other renewable energy Network at www.eren.doe.gov/greenpower.
sources. Under this program, a commercial Green electricity rates and products are
wind plant owner is allowed a production described and evaluated at
tax credit of 0.017 USD/kWh, produced www.powerscorecard.org.
over a ten-year period and indexed to
inflation. These plants must be brought Green Tag program
online prior to 31 December 2001. This A new Green Tag program is being
important incentive is one of the key
implemented in Pennsylvania and several
drivers for the surge in wind plant
other states and by the federal government.
development currently underway, and
A green tag is an indirect way for a
there are discussions of possible extension
consumer to purchase power produced from
of the December deadline. In addition,
renewable energy sources (See Figure 23.3).
some states also offer sales and property
Under this program, the existing arrange-
tax relief.
ment for power delivery does not change.
The customer buying a green tag is
Renewable
Supplier Customer
Existing electricity
Regional power pool provider for
customers loads
merely purchasing the environmental not meeting these standards are required
attributes of renewable energy generation to pay penalties, and suppliers with excess
(e.g., wind energy). Tag purchasers may renewable energy can trade credits with
be power consumers or others interested others that are short. This Renewable Credits
in the future value of the green tags. The Trading Program will start 1 January 2002,
supplier of the green tag receives the and continue through 2019. Energy
premium payment once the renewable suppliers not meeting their portfolio
energy is sold to the local power pool standard with either renewable energy
(separate from green attributes) at market or credits are subject to a penalty of
price. As a result, green power is purchased 0.05 USD/kWh on the shortage, or 200%
and fed into the pool, thus avoiding an of the average cost of credits traded during
equivalent amount of fossil-fueled the year.
generation.
Rural economic development
Renewable Energy Portfolio Standards
Farmers and ranch owners in the United
Some states are implementing requirements States are finding it attractive to harvest
that a portion of the energy being sold by wind along with other crops. One U.S.
utilities come from renewables. In Texas, a farmer in the Midwest leases land to a
Renewable Energy Portfolio Standard developer for three 750-kW turbines. The
requires that 2000 MW of new renewable machines occupy about 1.3 acres, includ-
energy systems be installed by 2009. ing access roads, of his 100-acre farm. In
Electric power producers in the state are return, the farmer receives 750 USD/yr
required to include renewable energy per turbine, plus 2% of energy sales, for a
sources in their generation mix. Suppliers total income of about 6,000 USD/yr.
Overall, distributed power generation can be cost effective in large regions with
be good business for many farmers, and is moderate winds in the range of 6 to 6.5 m/s
a market that is expected to grow. (measured at 10 m above ground).
Figure 23.4 Funding for the DOE Wind Energy Program for fiscal year 2001
2 Turbine Research: To develop and test wind turbine structural dynamics, rotor
advanced wind turbines in various sizes aerodynamics, and electric power system
from less than 10 kW to more than 1 MW. integration issues.
3. Cooperative Research and Testing: To Aerodynamics research and design
support industry in resolving near-term code validation is an area of emphasis. A
technical issues, field verification testing series of key experiments were recently
and certification of new wind energy conducted by NREL in the wind tunnel at
systems and technology, and the Wind the National Aeronautics and Space
Powering America Program. Administration (NASA) Ames Laboratory
in California. A 30-foot diameter, 19-kW,
R&D efforts are focused at the National
experimental wind turbine was tested in
Wind Technology Center (NWTC), at the
different configurations in the 80 x 120-foot
National Renewable Energy Laboratory,
section of the open throat wind tunnel in
located in Golden, Colorado, with support
June 2000. The NASA tunnel, shown in
from the Sandia National Laboratories,
Figure 23.5, is normally used for testing
Albuquerque, New Mexico. The NWTC
full-scale models of subsonic aircraft.
has staff, laboratory facilities, and equip-
ment to conduct research and wind turbine Aerodynamic research groups from around
system and component certification testing. the world were invited to participate in
Both Sandia and the NWTC conduct the NREL/NASA tunnel test using a
in-house and contracted research, blind comparison method for verifying
development, and testing for the DOE load prediction capabilities of various
and U.S. industry. aerodynamics computer models. Research
teams involving 30 individuals from 18
23.8.2 Research and Development organizations (12 European) generated
Programs performance predictions using different
models of the experimental wind turbine.
1. Applied research
Participants were surprised by preliminary
Applied research activity addresses wind results, which indicate substantial
energy engineering and technology issues differences between various codes some
with a broad range of scientific studies significant deviations from measured wind
conducted at the national laboratories, tunnel test results. More disconcerting
universities, and in industry. This effort is was the scatter evident under supposedly
aimed at improving understanding of easy-to-predict typical turbine operating
wind characteristics, atmospheric physics, conditions (e.g., no-yaw, steady-state,
Figure 23.5 Experimental wind turbine airflow visualization study in NASA Ames 80 x
120-foot wind tunnel
attached-flow) for which power predictions and the second on a larger machine
ranged from 25% to 175% of measured located at the NWTC.
values, and blade bending from 85% to
In 1999, the DOE began WindPACT, or
150% of measured values. Results are
Wind Partnerships for Advanced Component
still being analyzed and consideration is
Technologies, to support development
being given to possibly continuing the
of new high-risk technologies. Current
collaboration under an IEA Task.
studies are focused on advanced flexible
Another element of the DOE Applied rotors and new drive trains, and on better
Research program is a joint research task methods for manufacturing, transporting,
underway between NREL and Sandia and installing wind turbines. Preliminary
Laboratories, called the Long-term Inflow results of this research at the national
and Structural Test (LIST) Program to test laboratories and by several teams of
effects of atmospheric turbulence and wind contractors will be completed during
shear on blade structures. Comprehensive 2001. The most promising concepts will be
measurements are planned on two full- selected for component fabrication and
scale turbine rotors, in an effort to relate operational testing.
types of atmospheric events to blade
2. Turbine research
fatigue damage. A full season of wind
data will be collected at two sites with The role of turbine research activity is to
different wind regimes, one on a small provide an opportunity for U.S. industry
turbine located on flat terrain in Texas to apply the new technology and design
tools resulting from applied research in
in the United States. By the end of 2001, 3. Cooperative Research and Testing
Enron expects to have installed 350 of activity
these machines in domestic projects.
Cooperative Research and Testing activity
Five companies are developing smaller includes a wide range of support for
turbines for both grid-connected and off- industry, verification of advanced
grid power generation. The companies turbine performance in field tests, utility
selected under the DOE program to applications analysis, and support for the
develop the new machines are: Southwest development of standards and turbine
Windpower in Flagstaff, Arizona, for a certification testing. Grants were recently
6-kW turbine (the design was acquired awarded to industry, electric utilities,
from World Power Technologies, Inc.); the and state energy offices to encourage
Atlantic Orient Corporation in Norwich, development of wind power in a variety
Vermont, for an 8-kW turbine (acquired from of applications in projects in ten states.
WindLite Company) and for improvement
The wind Turbine Verification Program
of their 50-kW machine; and Bergey
(TVP) is another continuing collaborative
Windpower from Norman, Oklahoma, for
effort of the DOE, the EPRI, and host
a 50-kW turbine (See Figure 23.7). Northern
utilities and operators. The TVP program
Power Systems, located in Moretown,
began in 1992, and currently supports
Vermont, is developing an innovative,
seven wind projects at U.S. locations that
direct drive, 100-kW turbine under a
represent a range of site characteristics,
cooperative program between NASA, the
new wind turbine designs, and operation
National Science Foundation, and the DOE.
and maintenance approaches. The wind
This machine is being designed for use in
projects are located in Ft. Davis, Texas;
the frigid environments of northern Alaska
Searsburg, Vermont; Glenmore, Wisconsin;
and Antarctica. The unique turbine design
Algona, Iowa; Springview, Nebraska;
was recognized by R&D Magazine as one of
Kotzebue, Alaska; and Big Spring, Texas.
the top three of the best 100 new products
The wind turbines in these TVP projects
chosen for technological significance.
include twelve 500-kW Zond Z-40A,
eleven 550-kW Zond Z-40FS, five 750-kW
Zond Z-50s, two 600-kW Tacke 600e, ten
66-kW AOC 15/50, forty-two 660-kW
Vestas V47, and four 1.65-MW Vestas V66
turbines. Additional information on the
TVP, including specific information from
each project, is available from EPRI at
www.epri.com.
The NWTC works closely with the
International Energy Agency (IEA) to
develop recommended practices, and with
the International Electrotechnical
Commission (IEC) to develop appropriate
international standards and testing
procedures. In addition, NWTC is now an
Figure 23.7 Bergey 50-kW turbine accredited testing laboratory for certification
rendering of wind turbines for international markets.
APPENDIX A
Attendees of the 46th Executive Committee meeting in Naples, Italy.
APPENDIX A
197
198 IEA R&D Wind Annual Report 2000
APPENDIX B APPENDIX B
MEXICO M Mr. M.A. BORJA (Marco) Tel +52 73 18 38 11, ext 7251
IIE Fax +52 73 18 24 36
Avenida Reform 113 Email: maborja@iie.org.mx
Col. Palmira, Temixco,
MORELOS G.P. 62490, MEXICO
OPERATING AGENTS
NEWSLETTER EDITOR
Mr. Marc CHAPPELL Tel. +1 613 738 3312
MSC Enterprises Fax +1 613 738 3781
2029 Kilborn Ave. Email: chappell@
Ottawa, Ontario sympatico.ca
CANADA
APPENDIX C
Source: http://www.stls.frb.org/fred/data/exchange.html
Federal Reserve Bank of Saint Louis
Technical Editors
Patricia Weis-Taylor
Michelle Dorsett
Cover Design
Joe Woodburn
BK-500-29436
May 2001
I E A
ANNUAL REPORT 2000
Wi n d
reporting began in 1994 has proceeded at 30% per year or
higher. This sustained growth in capacity of wind energy
is being driven by improved technology, supportive
government policies, and improved information about
the advantages of wind energy. By the close of 2000,
the global capacity of installed wind generation reached
E n e r g y
17.6 gigawatts (1,000 megawatts, (GW)). The value of this
global wind market in 2000 is estimated at around four
billion US dollars.
A n n u a l
European Commission improve information exchange
and collaborate in wind energy research and development.
Within these member countries, the total installed wind
generating capacity reached 15.4 GW in 2000, or 88% of
global installed capacity. The detailed activities and
policies within each member country, as well as the progress
of the joint projects conducted during 2000, are reviewed
in this Annual Report.
R e p o r t
Produced for IEA R&D Wind by