Is the UK Leading Europe? UK Offshore Wind 2003 26 March 2003 London Christian Kjær Policy Director...

Is the UK LeadingEurope?

UK Offshore Wind 200326 March 2003 London

Christian KjærPolicy DirectorEuropean Wind Energy Association(EWEA)

Is the UK leading Europe?

?

Alternative title:While we are waiting!

Evidence

Installed during 2002

3,247 MW

87 MW

Evidence II

87 MW 106 MW - DECOMMISSIONED!

500 MW installed during 20022,880 MW total installed capacity

WordsDon’t Makea Wind Farm

Will the UK lead Europe?

… but they are a powerful first step

Words don’t make a wind farm…

… and British rhetoric is leading Europe

… and words do have substantial effects

Words of Power I

“As we move to a new, low carbon economy, there are major

opportunities for our businesses to become world leaders in the

technologies we will need for the future – such as fuel cells, offshore wind and

tidal power.”

Tony Blair

Words of Power II

“As the most commercially viable renewable power source, it is vital that we harness the energy of the wind both on and offshore now.”

Brian Wilson

Words of Power III

“The benefits of offshore wind are not just environmental; it also presents British industry with a number of opportunities for job creation and investment in manufacturing and construction, especially given the

many years of experience gained from the oil and gas activity in the North

Sea.”

Brian Wilson

Design Matters

NFFO – Bad Design

• Lack of Planning Procedure• No Penalties for Non-compliance• No Deadlines

ROCs

• Added 21 MW in UK in 2003• Reduce political risks• Don’t touch the targets• Deadlines and penalties• Secure adequate sites through planning• Develop infrastructure• Grid codes that reflect the technology

“Be great in act, as you have been in thought”

William Shakespeare

Rule Britannia?

European Challenges

• Economic growth• Employment• Technology development• Exports• Environment• Sustainable development• Kyoto: -8% CO2• Power demand up 1.6% p.a.• 2002: EU Energy import: 50%• 2025: EU Energy import: 70%• Few indigenous resources

EU Energy Imports

2001: 50 %2025: 70 %

EU-Commission’s Green Paper on the Future European Energy Supply:

“Effectively, the only way of influencing [European energy]

supply is to make serious efforts with renewable sources.”

To Trade the Untradable

☺♫

§

Harmonize First –Trade Later

♫

Price of CO2 allowance

≠Enironmental Cost ofElectricity Production

Emissions Trading

Pollution at a discount

External costs of fossil fuel, nuclear and wind power generationFuel External cost / kWh

Nuclear 0.2 - 0.6 cents / kWh

Gas 1 - 4 cents / kWh

Coal 2 – 15 cents / kWh

Wind power 0.05- 0.25 cents / kWh

Source: EU Commission, July 2001, ExternE

Price of emitting CO2(€ 5/ton)

0.21 Eurocent/kWh

0.41 Eurocent/kWh

“He not busy being born is busy dying”

Bob Dylan

Turning Wind into ROCs