Ofgem announces short list of OFTO bidders | newenergyfocus.com

Energy regulator Ofgem today (December 14) announced a short list of six firms bidding to run transmission connections to nine offshore wind farm projects after the first OFTO tender process, writes Rachael Meredith.

The government introduced the Offshore Transmission Network Owners (OFTO) regime in 2009 as a new regulatory regime for licensing offshore electricity transmission, which uses competitive tendering to ensure the cable connections are delivered on time and at reasonable cost.

Ofgem is managing the present round of tenders, known as the Transitional regime, which is the first phase of a £15 billion programme to ensure links to offshore wind farms, which Ofgem claims could total 33GW by 2020, are built on time and cost effectively for consumers and generators.

The short listed firms are competing to own and operate transmission links with some of Britain’s first offshore wind farms, including Greater Gabbard and Sheringham Shoal.

In total, Ofgem claims that the links will connect up to 2,000 megawatts of renewable electricity.

Ofgem originally selected 13 firms to tender for the operation of £1.15 billion worth of offshore transmission links in September (see this NewEnergyFocus.com story) and has now narrowed the list down to six.

The short list of firms competing for transmission links to wind farms includes: Balfour Beatty Capital Ltd; DONG Energy Sales and Distribution A/S; Green Energy Transmission (a consortium of Equitix Ltd and AMP Capital Investors Ltd); Macquarie Capital Group Ltd ; National Grid Offshore Ltd; Transmission Capital Partners (a consortium of Transmission Capital, International Public Partnerships and Amber Infrastructure Group).

Strong competition

Ofgem claims that the first phase saw strong competition between new entrants and existing network companies, with some attractive offers from new entrants, putting the project on course to achieve the predicted £1 billion of savings to consumers from all phases of the programme.

Chief executive of Ofgem, Alistair Buchanan, said: “If Britain is to meet its climate change targets and secure energy supplies Ofgem’s Project Discovery estimates that up to £200 billion may need to be invested. Offshore wind will play a key role in delivering a better environment for consumers, so it is vital that the transmission links for offshore wind attract investors and are built as quickly and cost effectively as possible.

“The strong competition for the first round of transmission links demonstrates the value of attracting new entrants and shows that firms have confidence in the tendering process and are willing to make a substantial investment. This is vital if the £15 billion needed to connect the Government’s target of 33 gigawatts of offshore wind is to be raised in these difficult financial circumstances.”

At the end of October, the European Investment Bank announced that it was considering making over £300 million available for the first tender phase of the OFTO regime (see this NewEnergyFocus.com story).

Ofgem is set to announce which bidders have been successful in May 2010.

The companies will then take ownership of the transmission links once they are constructed and in return will receive a stable, regulated income for 20 years.

The nine offshore wind projects whose connections are up for tender are: Barrow (90MW) Greater Gabbard (504MW) Gunfleet Sands 1&2 (164MW) Ormonde (150MW) Robin Rigg (180MW) Sheringham Shoal (315MW) Thanet (300MW) Walney 1 (178MW) Walney 2 (183 MW)

Ofgem’s advisors on the first transitional tender round include global advisory company Ernst & Young, Royal Bank of Canada, energy consultants KEMA, global legal practitioners Herbert Smith and global insurance brokers Willis.

via newenergyfocus.com

Siemens to Provide Grid Access for London Array | RenewableEnergyWorld.com

With its 175 Siemens wind turbines and a total capacity of 630 megawatts (MW) the London Array offshore wind farm will, following completion, be the largest of its kind in the world. After Siemens Energy was selected to supply the turbines for the project, the company also received the order to connect London Array to the power supply network. The orders were place by the project’s owners Dong Energy, E.ON and Masdar. The order is worth £116 million.

The wind farm is scheduled to be completed by 2012 and will be connected to London’s power supply network via the Siemens grid connection. The wind farm is being erected in the Thames estuary off the Kent and Essex coasts. An option is also provided for uprating London Array to as much as 1000 MW.

“Offshore wind farms of this size place particular demands in terms of grid access. We not only have the requisite technology and know-how but also a wealth of experience in connecting offshore wind farms to the grid,” said Udo Niehage, CEO of the Power Transmission Division of Siemens Energy.

Siemens will supply the electrical equipment for two offshore substation platforms, which will be installed right at the wind farm. The substations bundle the power generated by the 175 Siemens SWT-3.6 wind turbines, each rated at 3,6 MW, before it is transported via high-voltage subsea cable to the coast.

On each of the platforms there are two 180-MVA transformers and medium-voltage switchgear. The requisite protection and instrumentation and control equipment is also installed on the platforms. Distribution over two platforms has the advantage that the cable routes within the wind farm are short, and power transmission losses are kept as low as possible to enhance the wind farm’s energy efficiency.

via RenewableEnergyWorld.com

Renewables Grid Initiative » Press Release – July 3rd, 2009

WWF, Germanwatch, Vattenfall Europe Transmission and TenneT promote full grid integration of renewable energies

Renewables-Grid-Initiative brings together NGOs and TSOs and announces initial partners


Europe needs a better electricity grid for renewables. It is necessary to:

- Fully integrate localised and decentralised renewable supplies

- Fully integrate large-scale offshore wind and concentrated solar power

- Facilitate the possibility to recover investments in both high voltage DC and AC lines

- Deploy innovative and smart grid technologies to foster energy conservation potentials

Berlin, 03 July 2009

The Renewables-Grid-Initiative (RGI) promotes the expansion of distributed and bulk renewable energy generation and transmission capacity in Europe. To reach this target, the initiative brings together non-governmental organisations (NGOs) and transmission system operators (TSOs). For the first time, WWF, Germanwatch, Vattenfall Europe Transmission and Tennet join forces for a common cause.

A large-scale integration of renewable energy sources is deemed necessary to reach the European targets of 20 percent renewable energy by 2020 translating into about 35 percent renewable electricity and to comply further with the 2050 targets of cutting global climate pollution by at least 80 percent. However, a considerable expansion of renewable electricity into the European grid can only be achieved by upgrading and expanding transmission capacity. New strategic interconnections will be required to transport renewable electricity from remote locations to consumption centres. The Renewables-Grid-Initiative demands a new mandate for energy regulators to enable the development of a European grid architecture capable of rapidly and efficiently transmitting renewable energies.

Smart grid development is an essential precondition for substantive renewable energy integration for both decentralised renewables and large scale wind and solar power. At a time of serious economic distress and mounting pressure to address the widespread environmental, economic, and geopolitical consequences of our excessive reliance on fossil fuels, the case for sustainable investments in renewable energy generation and the transmission grid has never been stronger.

The representatives of the four initial partners WWF, Germanwatch, Vattenfall Europe Transmission and Tennet signed a Memorandum of Understanding during the press conference on 3 July 2009 in Berlin.

The Renewables-Grid-Initiative is based on scientific work of Antonella Battaglini, Senior Scientist at the Potsdam Institute for Climate Impact Research (PIK) and European Climate Forum SuperSmart Grid Process Leader. The RGI was launched by Berlin-based think-do-tank THEMA1 in January 2009 and is supported by the European Climate Foundation.

via Renewables Grid Initiative » Release 3 July.

Europe needs a Supergrid | Magazine News | New Civil Engineer

Europe needs a Supergrid

2 July 2009 | By Jessica Rowson

Investment in a Europe-wide energy grid should be prioritised over renewable technology, an EU advisor claimed this week.

“The transmission is the key for reducing CO2 emissions, not the renewable technology,” said Interconnection coordinator for the EU Commission Georg Wilhelm Adamowitsch at last week’s Off shore Wind 09 conference.

“There is no point investing in technology if you don’t have the infrastructure to take the energy to the customer in Milan or Paris. The national perspective is to fulfil climate commitments but we need European solutions, not national grids.”

The European Commission put forward proposals for a European Off shore Supergrid in European waters in its strategic energy review in November last year.

The Supergrid would connect geographically dispersed wind farms across Europe, ensuring a reliable and predictable source of energy, even if diff erent geographic areas are experiencing different weather, by transporting electricity from where it is produced to regions of demand.

The plans are challenging, however, with the deep water demanding suitable floating and semi-submersible platforms to support the turbines and expertise in deep sea cable technology required in order to connect them up.

via Europe needs a Supergrid | Magazine News | New Civil Engineer.

EU’s North Sea Grid – News – The IET – Feb 2009

Scotland contributes to supergrid planning

By Mark Venables

Scotland is set to play a significant role in the development of the EU’s North Sea Grid.

On a recent visit, the EU’s North Sea Grid co-ordinator Georg Adamowitsch asked Scotland to take part in a development group to build a European electricity supergrid.

The Grid has previously been identified as a European infrastructure priority and will be a key building block in exporting Scotland’s renewable energy to the UK and the rest of Europe.

The European Commission is allocating €150m to the scheme as part of a €5bn investment in energy and broadband infrastructure to support the EU Recovery Plan.

The proposed 3,850 mile grid would connect more than 100 wind farms, containing 10,000 turbines, to seven countries – Britain, Belgium, Denmark, France, Germany, the Netherlands and Norway.

The EU proposal, based on identified projects, assumes that 68.4GW of capacity at 118 wind farms will have been established in the North Sea by 2030 and could provide 13 per cent of the annual electricity consumption of the seven countries,

A recent European Wind Energy Association strategy paper estimated that installed capacity on land and offshore could rise to 300GW by 2030, accounting for 28 per cent of power generation in the EU, saving 600 million tonnes of CO₂.

“The grid would enable the efficient large-scale integration of renewable energy in the system across the North Sea region,” said Frauke Thies of Greenpeace. “A dip in wind power in one area could be balanced by higher production in another.”

In a separate proposal, Irish electricity infrastructure developer Imera has announced plans for a large grid of sub-sea AC and DC cables in the North Sea and Atlantic, which it says could form the foundation for a pan-European offshore network.

The company is now in the process of raising €100m for the first phase of the project.

Rory O’Neill, Imera’s chief executive, said: “Because we are a private company, we can build networks faster and cheaper than most regulated organisations.

“We also have access to the largest fleet of specialised cable-laying vessels and marine engineering expertise through our parent company, Oceanteam. We truly believe that EuropaGrid is the future of electricity in Europe and we have the in-house expertise, technical knowledge, and organisational capability to make it happen.”

Imera claimed that it could complete projects within the three years stipulated by the EU Commission in the Economic Recovery Plan announcement.

via News – The IET.

Wind industry says investment plans held up by limited access to grid ¦ NCE, 23 oct 2008

Wind industry says investment plans held up by limited access to grid
Published: 23 October 2008 09:55 Author: Alexandra Wynne

www.nce.co.uk

Wind industry leaders gathering in London yesterday called for access to the national grid to be improved to allow £50bn of private infrastructure investment to be spent over the next 10 years.
Energy minister Mike O’Brien told British Wind Energy Association (BWEA) conference delegates that current regulatory regime, headed by Ofgem, is limiting the national grid and wind energy companies investing in upgrading the network.

O’Brien said: “We need investment in our grid infrastructure to reinforce and expand the existing grid network – both onshore and offshore.”

He added that energy infrastructure investment could help lift the economy out of its current downturn. “We need to do what we can to bring forward energy projects to stimulate the economy,” he said.

Also at the conference, Liberal Democrat leader Nick Clegg and Conservative shadow energy minister Charles Hendry both called on the Government to speed up grid connection for renewables.

Clegg said: “The existing grid is inefficient and old fashioned and at current capacity it won’t meet future demand.”

Meanwhile Hendry said; “We accept the need for change to the current system whereby National Grid must connect applications in the order in which they have been made. There should be some recognition in the system of whether planning consent has been given and the speed at which it can move ahead.”

Following the speeches, BWEA Chairman Adam Bruce added: “The wind energy industry looks to the Government to provide clear guidance to Ofgem to facilitate long-term investment in time to reach our 2020 target.”

Author: Alexandra Wynne. Reporter