The Future of Offshore Wind: Collaboration integral to the offshore industry evolution

By the end of 2010, the US utility-scale wind power sector accounted for more than one-fifth of the world’s installed wind power capacity. Wind farms now exist in 37 US states and 10 Canadian provinces. Based on those numbers, one could easily believe that all sectors of the wind power industry are flourishing in North America.

But zero of that activity is offshore. For all the onshore wind development, not a single offshore wind project has come online across the continent to date.

Encouraging signs lie ahead, though, as North American offshore wind implementation appears imminent. In February 2011, the US government ambitiously announced its goal to develop 10 GW of offshore wind power by 2020 and 54 GW by 2030. Driven by more than $50 million of funding throughout the next five years, the National Offshore Wind Strategy will ramp up research and development of offshore technology, identify ideal project sites, and undertake economic and environmental evaluations, primarily along the East Coast.

In the private sector, Google is helping to bring the offshore industry closer to reality by financing one-third of the $6 billion Atlantic Wind Connection (AWC), a transmission backbone for offshore wind along the eastern seaboard. Meanwhile, Coastal Point Energy, a Texas wind developer, could take the “first in the water” prize as it already has secured permits to build a 3 MW test turbine off the coast of Galveston by the end of 2011—the first step of a potential 300 MW offshore wind farm.

The question then is not if, but when North America’s offshore wind industry will emerge as a reality. Though North America has many of the building blocks for a prosperous, domestic offshore wind sector, its successful development will require tapping outside knowledge, experience, and expertise—as is the case for many emerging industry sectors. Turbine installation vessels from Denmark might be used. Offshore turbines from Germany may be imported.

It’s safe to assume that the United Kingdom, a global leader in offshore wind with 1.3 GW of current installed capacity, will be an integral contributor to the scale-up of the sector in North America. With the most abundant natural resource for offshore wind in Europe, the UK began capitalizing on this opportunity early. To build a thriving offshore wind industry, the UK leveraged the technical expertise it gained from offshore oil drilling, including managing complex logistical and operational challenges like subsea engineering, offshore site identification, and platform building. 

Since completing its first major offshore wind farm in 2003, the UK has built a deep portfolio of wind energy capabilities ranging from turbine manufacturing and engineering, to site analysis and project management. Employing past experience from offshore oil extraction, while simultaneously gaining knowledge through lessons learned, the British have innovated new solutions, technologies, and approaches to build a successful offshore wind sector.

But as with any nascent industry, obstacles did exist, which is now available as gained experience and intelligence that the first-movers in the emerging North American offshore market can draw upon. One important lesson from the UK experience is that cross-industry coordination is imperative to being successful in an intricate, high-cost sector like offshore wind. To overcome the industry’s risks and complexities, programs like the Energy Technologies Institute’s Offshore Wind program were launched in the UK to synchronize research, development, and implementation of new offshore systems, techniques, and technologies. Collaborations such as this are critical to driving down costs, reducing technical challenges, and streamlining innovation within budding industries.

Another takeaway is that faced with a global lack of private investment, as well as the inherent market uncertainty of emerging industries like offshore wind, there is a vital role for government. National renewable energy policies, backed by long-term incentives, provided the stability and confidence necessary to stoke the advancement of the UK’s offshore wind sector.

The Renewables Obligation (RO) requires electricity providers to source more than 15% of power from renewable sources by 2015. In place through 2037, the program already has helped more than triple the UK’s eligible renewable electricity generation since its launch in 2002. Beginning next spring, the government’s $4.86 billion Green Investment Bank will begin investing in clean energy technology, with a strong focus on offshore wind. Similar government support could be an important catalyst to maturing the offshore wind sector in North America, where most federal policy support for renewables doesn’t extend beyond one or two years.

Finally, despite its offshore wind know-how, the UK recognizes that continuous international knowledge transfer is fundamental to its own domestic success. While North America matures its own market, partnership between the two regions will be important to achieving the UK’s offshore goals, which include expanding its current 1.3 GW of installed offshore power to 50 GW of electricity by 2030. North America won’t only turn to the capabilities and experience of the UK, but also will be providers to the British for new technologies and approaches refined along its path of offshore wind development.

As offshore wind grows to no longer being a novel sight across the shores of North America and as the UK continues to advance its leading industry, the UK and North America will increasingly rely on and benefit from the innovations and real-world experience of each other. Collaboration will be key.
 

Author Michael Rosenfeld is Vice-Consul with UK Trade & Investment, the UK Government’s international business development department, and is based in Los Angeles. He serves as lead officer in the US for the Clean Technology sector, working with clean technology companies from the UK and North America.

UK Trade & Investment
www.ukti.gov.uk