Friday, 9 March 2012

Construction on Mongolia’s first wind farm due to Start in April

ubpost.mongolnews.mn
8 Mar 2012

The website upi.com reports that the Newcom Group, the Mongolian investment firm responsible for the construction of the wind farm, will begin construction next month. General Electric International Inc. (GE) supplied over 30 wind turbines The wind farms will produce up to 5% of Mongolia's total electricity. The wind farm, which will produce 168.5 million kWs of electricity per hour, is located near Ulaanbaatar in Salkhit, and will be completed by the end of 2012. The National Renewable Energy Center of Mongolia reports that Mongolia has the potential of producing 2,550 terawatts hours per year. As a country with rapidly developing mining sector, Mongolian energy consumption is estimated to double in the next two years.

B. Byambasaikhan, CEO of Newcom Group, said in an interview with The New York Times, "People say 80% of the Mongolian underground is full of coal. But the whole Mongolian territory is full of wind power. We will stop the Government monopoly on the energy supply". He added that he is confident the facility will run smoothly and he aims to boost wind capacity in the country 20 times by 2025. GE has said that its participation in Salkhit underscores the company's "commitment to grow in one of the most challenging yet fastest-growing emerging regions. Last May, GE opened a representative office in Ulaanbaatar In 2010 GE and Newcom Group signed an agreement to explore alliances in key areas such as energy, water, mining, aviation, railway, lighting, and healthcare.

Winds of fortune sweep West Texas

www.chron.com
4 Mar 2012

(US) PECOS COUNTY-Every workday before sunrise, 10 BP workers gather on a West Texas sheep farm for morning calisthenics. They need loose limbs to manage BP's 22,000 acres in the oil-rich Permian Basin, where temperatures can soar beyond 110°F. The oil giant leases the land from struggling farmers to expand its reach in the energy world. But you won't find any oil wells or drilling rigs here.

BP and other energy companies are funneling millions into building and operating wind farms in West Texas, helping to transform oil country into one of the nation's leading hubs for green energy production. Skylines dominated by nodding pump jacks are increasingly spotted with spinning turbines. Economies tied to the ebb and flow of commodity prices are finding stability in supplying the power grid.

"We've been through lots of booms and busts with the oil and gas industry. The oil and gas areas deplete over time", said Doug May, economic development director for Pecos County in West Texas. "The wind resource here is sustainable. We look at these wind farms as a long-term investment in the future of Pecos County".

Recent energy analyses have forecast that renewable fuels-including wind, solar and biofuels-will be the world's fastest growing energy source in coming decades. BP's own outlook predicts that the country's renewable energy production will surge 252% over the next 20 years. Wind will lead the pack, forecasts indicate. wind farms have proliferated across the U.S, over the last decade. Now they generate about 3% of the nation's electricity and about 7% of the state's, according to the US Energy Information Association.

Read more…

German wind energy plans in the doldrums

www.thenational.ae
5 Mar 2012

Germany's green energy revolution is at risk of stalling, with energy firms warning they may shelve plans for a huge expansion of offshore wind power because of delays in connecting the turbines to the grid. Mike Winkel, the head of green energy at the German utility E.ON, said last month that work on the power line needed to feed electricity from its North Sea wind farm Amrumbank West to the mainland was 15 months behind schedule and that the turbines would not go into operation until March 2015.

Mr Winkel described the situation as "disastrous" and said E.ON would put its planning for further wind farms on hold. He said the network operators in charge of laying the cables and building switching stations had overestimated their technical capabilities and were themselves facing delays in obtaining supplies of equipment. Another major German utility, RWE, issued a similar warning and complained its Nordsee Ost wind farm would go online at least one year later than planned because the power connection would not be ready in time.

RWE had intended to start producing electricity from the 48-turbine wind farm next year. But TenneT, the Dutch-owned grid operator in charge of building all the power lines off the German North Sea coast, said it would not be able even to start construction of the power line until the end of this year. Nordsee Ost is due to be completed next year. Paradoxically, RWE will initially have to resort to diesel-powered engines to keep the sensitive rotor blades and gear mechanisms turning until the power line has been completed and the turbines can become operational. Germany may respond by trying to woo new investors.

The problems are bad news for Angela Merkel, the German chancellor, who stepped up her plans for a huge expansion of green-power generation last year after ditching nuclear power in the aftermath of the Fukushima disaster in Japan. Offshore wind farms are the backbone of her strategy. At sea, the wind blows more strongly and constantly, making the farms a potentially more reliable and productive source of renewable energy than wind turbines on land and solar power.

The aim is for 10,000 wind turbines along the German coasts of the North Sea and Baltic to be in operation by 2030, producing 25,000 MWs of electricity or 15% of Germany's total energy needs. But the actual number of turbines working now is just 27, generating only 135 MWs. RWE said there was no chance Germany would achieve its offshore wind power goal, and that the delays so far would deter investors from backing future projects in the North Sea and Baltic. The company said it was considering suing TenneT, which is owned by the Dutch government, for €100 million (Dh484.9m) in compensation for losses caused by the line delays.

RWE had planned to spend €1 billion per year on renewables in the coming years, with 40 to 50% of that earmarked for offshore wind power. If the offshore expansion is off track, so too will be Mrs Merkel's plan to boost renewable energy from 17% of electricity consumption now to at least 35% by 2020 and 80% by 2050. Building wind farms at sea, in some cases up to 100km off the coast, has proved a greater technical challenge than expected. Erecting the turbines is a considerable feat in itself-ships were purpose-built for the task of transporting the rotor blades and masts and anchoring them on the seabed.

But laying the cable has proved even more arduous because it involves working at depths of up to 30 metres and building special power converter platforms. The technology and the methods are new and untried, and much of the work can be done only between May and September when the weather permits. Lengthy planning approval procedures have added to the delays. TenneT, which is building a total of eight undersea cables, warned the German government in November that it would not be able to meet its production deadlines and was having difficulty obtaining fresh capital from investors. It demanded assistance with the planning and financing of the offshore grid.

The government has not yet decided whether to boost subsidies for offshore wind power, but it may have to. Future funding could come from Abu Dhabi's Masdar green-energy initiative. Frank Wouters, the director of Masdar's energy division, told the Financial Times Deutschland, a German business newspaper, last month that Masdar would be very interested in investing in German offshore wind power if the yields improved. He said Masdar had not yet found a project that generated enough yield.

The German offshore wind farms are located in deep water far off the coast, which made them a riskier investment than wind farms closer to shore, he said. But unless the German government removes the bottleneck threatening its wind-power plans, Europe's largest economy will not only fall far short of its green-power plans, but may also face power shortages in the years to come. Embarrassingly for Mrs Merkel, there is a very real prospect that the shortfalls will be made up by importing nuclear-generated power.

Thursday, 8 March 2012

AGL quells wind farm noise

www.abc.net.au
6 Mar 2012

Energy company AGL Energy says a noise defect at its Hallett 2 wind farm in South Australia's mid-north has been fixed. After a complaint by a local resident, AGL Energy began testing its 34 turbines at the site near Mount Bryan. In December 2010, it identified some noise from the turbines could be heard at the nearest residence, under certain wind conditions. A permanent acoustic treatment system was put in place late last year and recent noise testing has confirmed the issue has been resolved. Operational constraints have been temporarily put on turbines at other AGL Energy wind farms where audible tones have been detected.

Fukushima nuclear plant beset by problems

www.upi.com
March. 3, 2012

TOKYO, (UPI)--Japan's Fukushima nuclear power plant is beset by technical problems nearly a year after its core meltdown, officials say. The problems include a broken temperature sensor that detects heat in a reactor and leaky piping, The Maimchi Daily News reported Saturday. Plant operator Tokyo Electric Power Co, has begun decommissioning and dismantling the plant--a process expected to take three decades--and in January inserted an endoscope, an instrument allowing the first direct internal observations since the earthquake and tsunami March 11, 20011, shut down the plant's cooling systems.

But after a sensor began showing temperatures at the bottom of the No. 2 reactor's pressure vessel reached alarmingly high levels, TEPCO determined the sensor was faulty. The loss of the sensor--after it showed temperatures climbed from about 40° in late January to over 80°, the maximum "safe" temperature for maintaining a cold shutdown, to more than 40°--showed how little TEPCO understood about conditions inside the reactors and how fragile the cold shutdown is.

The Daily News also reported that after the government said the plant had been brought to cold shutdown, water leaked from 44 locations, including seven sections of water-injection equipment--a critical part of the water recycling and re-injection system--and from spent fuel pools at two reactors. Meanwhile, Japanese Prime Minister Yoshihiko Noda told CNN the country has learned much from the meltdown. "Sharing the lessons and remorse of this nuclear accident with the international community will contribute to the overall safety of nuclear power as well as international cooperation", he said.

In the wake of the disaster, only two of Japan's 53 nuclear reactors are operating and by the end of April, those two are to go offline, leaving the country facing the prospect of no nuclear power into the summer. "Our basic stance is to move away from our dependence on nuclear power. This means that we have to try and increase the use of renewable energy, in a thorough effort to save energy", Noda said. He said the government has included $7.5 billion in its fiscal year 2012 budget for renewable energy and conservation. Noda also said nearly a year after the earthquake and tsunami killed thousands of people and crippled the Fukushima power plant, the country is making "steady progress" in reconstruction and aid to the northeast region.

Push for reform of electricity

www.smh.com.au
3 Mar 2012

AUSTRALIA is lagging behind other developed countries in energy efficiency, despite some examples being set by individual businesses, an international conference in Sydney has been told. The $45 billion earmarked for new ''poles and wires'' infrastructure around Australia was the main driver of an expected 90% rise in household electricity prices between 2008 and 2014, rather than the carbon price, delegates heard yesterday.

The Australian Alliance to Save Energy, a non-profit group that hosted the conference along with the University of Technology's institute for sustainable futures, said the key priority should be reforming electricity industry regulation to focus on minimising peak demand. ''Like all reforms, there will always be entrenched business models to overcome and vested interests at play,'' the energy alliance chairman, Jon Jutsen, said. Some large organisations stood out for strong performances in efficiency and carbon offsets, however.

Among the best was Sydney Water, which was on track to become completely ''carbon neutral'' within eight years. It will cancel out about a million tonnes of CO₂ emissions a year by planting trees and building wind turbines, cutting its energy use by up to 40% and buying renewable energy. Many of the groups at the conference are part of Earth Hour, the annual event that encourages efficient use of resources. It takes place at 8.30pm on March 31 and is supported by Fairfax Media, publisher of the Herald.

Giving waste water the power to clean itself

www.nature.com
1 Mar 2012

A technique that combines two novel forms of renewable energy — one relying on bacteria and the other on salt water — generates more electricity than either one alone and cleans waste water at the same time. The work is published today in Science1.

Waste water contains a great deal of energy in the form of organic matter, says lead author Bruce Logan, director of the Hydrogen Energy Center and the Engineering Energy and Environment Institute at Pennsylvania State University in University Park. Domestic waste water contains nine times more chemical energy than the energy required to treat it — that amount, added to the energy in waste water from livestock and food production, would be nearly enough energy to maintain the entire US water infrastructure, he says.

Read more…

Monday, 5 March 2012

Solar program cut pours cold water on clean energy job prospects

www.cleanenergycouncil.org.au
29 Feb 2012

The clean energy industry says the unexpected cut of a key government solar hot water program late yesterday will put jobs under threat and make it harder for people to save on their electricity bills. Clean Energy Council Acting Chief Executive Kane Thornton said solar hot water systems and heat pumps were the cheapest way to heat water in people's homes over the life of the system.

"This decision will immediately affect sales and will put more than 1200 manufacturing jobs and 6000 installation, sales and back office jobs in jeopardy. This industry has been struggling with the effects of a high Australian dollar just like the car industry, just like the steel industry and just like other home grown manufacturing industries", Mr Thornton said. "Cutting this program without warning in the middle of a financial year is yet another example of stop-start policy making that continues to plague the entire clean energy sector. It has given the industry no time to prepare and makes business planning almost impossible".

Mr Thornton said water heating was one of the most energy intensive activities in the average Australian household, accounting for about a quarter of all energy use. "Solar hot water systems are one of the best ways for households to reduce steadily rising power bills over the long term, but have a higher up-front cost than other types of technology. "Without the assistance under the Renewable Energy Bonus Schemes, families and home owners who are hurting from cost-of-living expenses will buy cheaper hot water systems that cost them more in the long run and may emit higher rates of carbon pollution.

"The Commonwealth has committed itself to supporting a ban on inefficient electric hot water systems, which is an important climate change policy, but it can't be implemented in isolation. "Other programs needs to be introduced to help struggling families to purchase solar hot water systems or heat pumps, and to support the industry as it adjusts to a lower level of assistance.

"This is a decision that pours cold water on the prospects for local clean energy jobs in an industry that is navigating a difficult global financial climate just like everybody else", Mr Thornton said. The amount of energy saved by solar hot water systems and heat pumps installed in Australia would power the equivalent of almost 300,000 average homes.

Pacific Hydro in bid to save solar project

www.smh.com.au
27 Feb 2012

FRUSTRATED by the market dominance of the three major energy companies, Australian renewable generator Pacific Hydro is seeking its own retail energy licence as it tries to save a large-scale solar project. The proposed 150- MW photovoltaic Moree Solar Farm-initially backed by Pacific Hydro, BP Solar and Spanish firm Fotowatio Renewable Ventures-suffered a major setback in December when it lost the rights to a $306 million grant from the federal government's troubled Solar Flagships Program.

The northern New South Wales farm had not met its funding agreement obligations, prompting Energy Minister Martin Ferguson to re-open the grant to four shortlisted photovoltaic farm candidates. All four-AGL Energy, TRUEnergy, Infigen Energy Suntech Power and the Moree consortium-are understood to have resubmitted their bids before the deadline on Friday.

Pacific Hydro Australia general manager Lane Crockett said a key reason the Moree bid was unable to achieve financial close on time was its failure to reach a power price agreement with a major retailer. Two of the three big retailers were rivals for the grant. It is understood the third, Origin Energy, rejected a deal with the Moree consortium. Mr Crockett said Pacific Hydro-owned by the $31 billion super giant Industry Funds Management-faced a retail market dominated by a few large companies that were both rivals for government grants and potential customers for projects such as the Moree plant.

''It is not unreasonable to expect that this conflict will continue to occur in the future,.. [it] requires independent power producers like ourselves to continually evolve and adapt,'' he said. He said the Moree consortium would enter a power price agreement with Pacific Hydro, which expects to have a retail energy licence within three months. ''Pacific Hydro has been working on our retail market strategy for some time and we are very confident that it will be a success, with projects like the Moree Solar Farm part of a future diversified renewable energy portfolio that will include wind and possibly into the future geothermal,'' he said.

The revised Moree bid no longer includes BP Solar, with the remaining two partners taking up its stake. They have signed an engineering, construction and procurement agreement with Spanish infrastructure company ACCIONA Energy. Announced in May 2009, the Solar Flagships Program has been criticised by the Greens and Coalition as it became clear two projects awarded $750 million were struggling to prove their viability. The second Solar Flagships Program winner, the $1.2 billion Solar Dawn Project in Queensland using solar thermal technology, has been given a six-month extension until June 30 to secure financing.

BP Plans to withdraw from solar-energy venture in Australia

www.bloomberg.com
24 Feb 2012

BP, Europe's second-largest oil company, plans to withdraw from a venture seeking Australian government funds to build a solar power project in the state of New South Wales. "We've indicated that we wish to leave the consortium and that we won't be part of the new bid process", Jamie Jardine, a Melbourne-based spokesman for BP, said by mobile phone today. BP, Fotowatio Renewable Ventures and Pacific Hydro Pty, which won A$306.5 million ($329 million) in Australian funds last year to build the Moree solar farm, missed a December financing deadline. That prompted the government to reopen the competition to other bidders, including AGL Energy Ltd.

The company decided to exit the global solar business after 40 years because it has become unprofitable, Mike Petrucci, the chief executive officer of BP's solar unit, told staff in an internal letter in December. The industry faces oversupply and price pressures after Chinese competitors increased production. BP and its partners in the proposed A$923 million solar photovoltaic plant had failed to sign power-supply agreements needed to advance with the project, it said in December. The company said Dec. 23 it was sticking with the Australian project, even after deciding to exit the business globally.

"In the past two weeks, we've worked with the consortium to refine and develop the proposal, and we believe the new consortium will be an effective one", Jardine said today. The Moree venture will be eligible to bid for the funds and have a chance to show it is "still the most meritorious project", Australia's Resources and Energy Minister Martin Ferguson said earlier this month. The government also invited TRUEnergy Holdings Pty Ltd, and Suntech Power Co, to update their applications seeking solar grants.

Sunday, 4 March 2012

PacHydro to take on energy retailers at their own game

reneweconomy.com.au
24 Feb 2012

Pacific Hydro, the largest independent renewable energy developer in Australia, is to establish its own energy retailing group in a bid to break the dominance of the the big-three energy utilities, which it says have been an impediment to the development of renewables in the country.

The decision was announced as the Moree Solar Farm resubmitted its tender for the Solar Flagships program. The tender was reopened after Moree Solar, which included Pacific Hydro, Spanish group FRV and BP Solar, failed to gain a power purchase agreement with any of the big three utilities, and therefore could not meet a financing deadline.

The Moree Solar consortium has now been recast, with BP officially leaving after announcing its withdrawal from the global solar business. BP will be replaced by Spanish renewables giant ACCIONA Energy, which will operate EPC (engineering, procurement and construction) contract, but no equity stake. The critical component, however, is Pacific Hydro's decision to establish its own retail energy licence, and to sign a PPA for the $930 million, 150MW project, in effect bypassing the three utilities that dominate the market – Origin Energy, AGL Energy, and TRUEnergy.

Both AGL Energy and TRUEnergy are involved in rival consortium to the Moree Solar project, and Origin Energy is said to have rejected a PPA with Moree Solar in the final stages of negotiation. Pacific Hydro general manager Lane Crockett said the Australian energy market was dominated by a few very large vertically integrated entities, "who are not only our potential customers but also competing for funding under the solar flagships program." "It is not unreasonable to expect that this conflict will continue to occur in the future, which requires independent power producers like ourselves to continually evolve and adapt."

Crockett said the retail arm – which is yet to be named – could play a critical role in the development of the company's wind projects, and even geothermal. He says it is a logical step, because the company already has around half of its wind farm portfolio operating in the "merchant" market, and yields from commercial customers could be higher.

Hardly any PPAs have been written in the last few years in Australia, effectively bringing the large scale renewables industry to a halt. The utilities have blamed the surplus in Renewable Energy Certificates, but renewable energy developers blame them for effectively blocking developments.

Crocket says there has never been a better time to write PPAs, because wind turbine prices are low, the Australian dollar is high and some developers are desperate to conclude agreements to get meet planning approvals. Pacific Hydro, which has 340MW of wind and hydroelectric plant in operation in Australia, and about 160MW of "advanced" wind projects, along with the Moree Solar proposals and some early stage geothermal projects.

The issue about the dominance of the energy retailers was raised in Canberra recently during a Senate estimates hearing. Drew Clarke, the secretary of the Department of Resources and Energy, said the government was monitoring the issue. All four consortium competing for the retendered solar PV portion of the flagships program said they would resubmit their bids by the close of business on Friday, although they face a lengthy wait for the outcome. Moree and the other contenders are all expected to resubmit offers with much reduced costs (thanks to the slump in panel prices in the last 18 months).

AGL Energy and TRUEnergy have both linked up in separate proposals with US thin film solar giant FirstSolar, and a fourth tender comes from wind farm developer Infigen Energy and Chinese PV module supplier Suntech Power. Although the tenderers have had little time to resubmit their offers, it is believed that all had kept their bid teams running in the past couple of months in anticipation that a PPA would have been difficult to achieve in the current energy market. The big question remains how DRET intends to handle the tender from here on in. The two questions relate to cost, and the ability to finance it. AGL Energy and TRUEnergy would have an advantage because they can write their own PPAs, but Moree may have found a solution to its problem.

Questions have also been asked about the length of time DRET will take in analysising the new bids, suggesting that the new winner may not be announced until the end of june. Given that the technical requirements of the bids have already been reviewed, most consortium think this time is excessive to assess the new costs. Some believe that DRET may use that time to quietly advise a winner, and ensure that a PPA and financing is in place at the time of a public announcement, to avoid further embarrassment and delays.

Minister approves Hawkesdale, Yambuk wind farms

www.standard.net.au
25 Feb 2012

TWO controversial wind farm developments at Hawkesdale and Yambuk have been approved by Planning Minister Matthew Guy after months of negotiation. Spanish proponents Union Fenosa announced yesterday that work on the two sites would start as early as next month, ahead of state government reforms of the renewable energy sector. More than $500 million will be pumped into the two projects, one which is located in farmland south-east of Hawkesdale and the other between Yambuk and Orford.

Union Fenosa managing director Domingo Asuero said the company would provide site possession to Portland-based GR Carr Construction. He said early works on the sites would start within weeks. The two projects will generate a combined 196 MWs of renewable electricity, enough to power the needs of about 80,000 houses. Planning works stalled last year after Moyne councillors voted to reject a permit extension in August due to an apparent lack of consultation between Union Fenosa and the shire.

Moyne Shire mayor Jim Doukas said he hoped Union Fenosa had responded to concerns raised by the municipality and had acted accordingly. He said he would need further details before commenting further. "If the planning minister and Union Fenosa have acknowledged and acted on the concerns raised by council then that's fine but they haven't informed us as yet", Cr Doukas said. Yambuk farmer Kieron Moore supported the move and said the new project would generate jobs in the region.

Many of the turbines will be erected on Mr Moore's property, situated north-east of Yambuk. "The minister has taken a common sense approach", Mr Moore said. "wind farms have been operating in Yambuk for more than 10 years and they are accepted by the community". Regional Cities Minister Denis Napthine said the state government's decision to approve proposals drafted prior to the 2010 state election was a fair way of treating both developers and landholders.

However, he said the 2km wind turbine buffer zone policy was popular in regional Victoria. "It's interesting to note that the South Australian Labor government and the Coalition government in NSW have both adopted turbine setback in one form or another", Dr Napthine said. "The state government has worked to ensure we struck the right balance between the interests of farmers and landholders as well as the interest of expanding renewable energy in the region".

Thursday, 1 March 2012

Plans advance to boost interstate power links

www.abc.net.au
24 Feb 2012

Plans are advancing by ElectraNet to boost the capacity for electricity flows between South Australia and Victoria. The company has sought public feedback on options including an upgrade to the Heywood substation in Victoria and sites in south-east South Australia, which would increase capacity by 40%.

Rainer Korte from ElectraNet says an upgrade of the system could boost power supplies from Victoria to South Australia when demand is high, and into Victoria when too much wind power is produced for SA demand. "Those inter-regional links or interstate links impact on the operation of the market and the power system with the whole state impacted", he said. "People in the south-east should benefit, so should everyone else".

U.S. grid energy-storage market strong and poised for exponential growth

www.windpowerengineering.com
22 Feb 2012

A vigorous U.S, energy storage market offers good potential for growth over the next five years, according to a study sponsored by the Copper Development Association (CDA) and conducted by KEMA, Inc. The study, Market Evaluation for Energy Storage in the United States, determines the current market for grid energy storage in the U.S, and the associated copper demand in storage applications over the next five years. thermal energy storage, pumped-hydroelectric power, compressed-air-energy storage (CAES), and distributed applications constitute most of the energy-storage market. These can support the integration of renewables, such as wind and solar power.

Read more…

Siemens blindsided by China wind boom plans ‘massive’ investment

www.bloomberg.com
23 Feb 2012

Siemens AG (SIE), the world's largest maker of offshore wind turbines, said it underestimated the pace of growth in the Chinese wind market and will ramp up spending to catch up as local competitors increase their lead.

"We're investing massively in research and development and to make use of economies of scale in production", Felix Ferlemann, head of Siemens's wind-power business, said in response to e-mailed questions. "We were somewhat taken by surprise by the strong growth of the Chinese market".

China led the world in installing wind-power capacity last year. Munich-based Siemens is working to keep pace in the country, where it's lagging behind suppliers such as Vestas Wind Systems A/S (VWS), while competition puts pressure on prices. Profitability at Siemens's renewable-energy unit was wiped out last year, calling into question Chief Executive Officer Peter Loescher's strategy of focusing more on green technologies.

Siemens maintains its goal of becoming "a leading company in wind power", while it's not important if this takes two years or five, Ferlemann said. The company set a goal in 2009 to rank this year among the world's top three wind-power companies by installed generating capacity.

Turnover at the Top The target was issued by Andreas Nauen, who ran the wind-power operation until he left in March 2010 to become CEO at a German unit of Indian wind turbine maker Suzlon Energy Ltd. (SUEL) Nauen was succeeded by Jens-Peter Saul, who led the business for less than 19 months before Ferlemann took over.

Siemens ranked ninth in 2010 among wind turbine makers by annual installed capacity, according to estimates by Eduardo Tabbush, an analyst at Bloomberg New Energy Finance, who said the German company may climb to fifth place by 2015. Vestas and Chinese producers Sinovel Wind Group Co. (601558) and Xinjiang Goldwind Science & Technology Co. (002202) will remain the top three manufacturers for the near future, in terms of MWs sold, he said.

The renewable-energy division, previously among Siemens's best performers, had an operating loss of 2 million euros ($2.65 million) for the fiscal year ended Sept. 30 on excess capacity in countries including the US, and price pressure in China. The company does not break out profit for the wind unit.

Earnings Decline Vestas, based in Aarhus, Denmark, posted an annual loss for the first time in six years in 2011. Sinovel forecast on Jan. 30 that its 2011 earnings probably fell by more than 50% because of lower prices. The 10 orders that Siemens won worldwide in 2011 for wind farm equipment included one from China, according to data collected by Bloomberg New Energy Finance. That compares with at least seven contracts from China that Vestas (VWS) announced.

The German company aims for its wind-power operations to return to a profit margin of at least 10% of revenue by cutting costs and streamlining operations, Michael Suess, the head of Siemens's energy businesses, said in September. Profitability will drop to about 6.5% of sales this year from 8.5% in 2011, according to estimates by Michael Busse, an analyst at Silvia Quandt Research in Frankfurt.

Siemens is sitting on a record backlog of almost 12 billion euros worth of wind-power orders, including its first from China for offshore equipment. The company said in December it will expand wind turbine manufacturing, sales and service units in China through two ventures with Shanghai Electric Group Co. (601727) "With our planned joint ventures in China, we'll soon also have a good position there and benefit from growth in the world's largest wind market", Ferlemann said.

Monday, 27 February 2012

Vic wind farm scramble

www.weeklytimesnow.com.au
22 Feb 2012

WIND farm companies are scrambling for finance and to begin work on proposed projects before a Victorian planning deadline. Sources have told weeklytimesnow the number of projects "in the gun" range from 10 to 20 proposals across the state due to the Victorian Government's changed planning policy. The Baillieu Government last year declared no-go zones, including Macedon, 5km buffer zones around regional towns like Mildura and Shepparton and gave power to residents to veto projects that had homes within 2km of turbines.

Under the changes companies with permits due to expire could apply for an extension on the condition they start work by March 15. A Clean Energy Council spokesman said the council would be contacting members in the next few days to gauge the situation. Friends of the Earth national campaign co-ordinator Cam Walker said the government "killed off" projects last year worth about $500m and the March deadline was the "second round".

"People don't want to lose their projects", he said. He predicted about 20 projects were dependent on meeting construction requirements before the deadline but said he'd be surprised if half got off the ground. "Companies are in a mad rush to get finance,,, there's a number of smaller operators,,, that are on the hunt for money", Mr Walker said.

He called for the government to re-consider the policy because it was driving an entire sector out of the state. "It was a policy they formed while in Opposition and it was not very well thought out. It's pushing an industry and jobs out of the state". He said the no-go zones and 5km buffers from regional centres were the biggest problems which were killing off community wind projects like the now defunct Castlemaine proposal.

Greens MP Greg Barber said companies were working to a tight deadline after the government's changes. He said he had a list of nine projects, several in south-west Victoria, which would be racing to meet the deadline. "Even if the nine wind farms come under the wire a third of all remaining permits will expire by 2013 and that's about 11,000 turbines. All other turbine permits will expire in 2014 and probably will never get permits back under the new rules", Mr Barber said.

More on the Heartland Institute revelations…

Confessions of a climate gate-opener

www.bbc.co.uk
22 Feb 2012

(UK) I don't normally do requests, as they say-but I've a lot of messages via emails, blog comments and Twitter asking for a follow-up post on the Heartland Institute, and am happy to oblige. Many thanks for all your messages-nice to know one's thoughts are in such demand!

So what's happened since last week's post, flagging up and analysing the contents of documents obtained through subterfuge from the leading US climate sceptic lobby group? First, we saw a request from the institute that all media organisations who'd covered the story should take their articles down and issue retractions, with a vague threat of legal action.

As far as I can see, few complied-and why would they?

Read more…


Behind the controversy, an effort to rewrite curriculum on climate change

green.blogs.nytimes.com
23 Feb 2012

Focus on the contents of the internal documents leaked last week from the Heartland Institute, a Chicago-based nonprofit known for attacking climate science, has been largely lost in the wake of the revelation of the leaker's identity: Peter Gleick, a scientist. But beyond the controversy and the confession is the fact that Heartland does not deny what the two authentic documents obtained by Dr. Gleick reveal: that the institute is working to influence climate education in the schools.

In its 2012 fund-raising plan, Heartland said that an "anonymous donor" had pledged the first $100,000 toward this end and that it hoped to use that gift to develop matching funds. Heartland is soliciting contributors for a "global warming curriculum" developed by a part-time Department of Energy consultant, David Wojick, which in Heartland's estimation "appears to have great potential for success."

Read more…


John Moore: A peek into the climate denier industry

fullcomment.nationalpost.com
23 Feb 2012

The curtain has been drawn back on the professional denier industry, and its media enablers are frantically crying "there is nothing to see here". Leaked documents from the Chicago-based Heartland Institute expose the efforts of the conservative "research organization" to sow doubt about climate change. The documents also reveal information about donors--including a mysterious unnamed individual who provided more than $14-million dollars to Heartland. The information was obtained by an environmentalist posing as someone else online, which has prompted laughable squawks about ethics from the very denier crowd that fed like zombies on the hacked "Climategate" emails of 2009.

Read more…


And closer to home,

The shadowy world of IPA finances

www.abc.net.au
24 Feb 2012

Last week's revelations about the Heartland Institute, probably the most important climate science denying organisation in the United States, raise some questions about the murky influence of think tanks on the climate debate in this country. Confidential documents from the Heartland Institute reveal how wealthy individuals have actively promoted the campaign to attack the credibility of the world's top climate scientists and create the impression that there is a controversy about the main propositions of global warming science. In fact the bulk of Heartland's climate science denial campaign-which includes plans to promote anti-science in schools-has been funded by one donor, whose name did not appear in the purloined documents.

There is a direct Australian link in the Heartland Institute files. Bob Carter, an adjunct research professor at James Cook University, has a long-standing record of denying climate science. Now it is revealed that he is on the payroll of the Heartland Institute, to the tune of $1,667 per month for unspecified work. On his personal webpage, Carter declares that "he receives no research funding from special interest organisations such as environmental groups, energy companies or government departments", a claim that on the scale of truth matches his reporting of climate science.

Read more…

Hepburn Wind to feature on stamps

www.hepburnadvocate.com.au
22 Feb 2012

Hepburn Wind has put its stamp on 2012. The community-owned wind farm was one of nine Australian cooperatives selected to be on Australia Post stamps commemorating the United Nations International Year of Cooperatives. President of the International Cooperative Alliance, Dame Pauline Green, visited Australia this week and said co-operatives were generating profits for members and creating jobs in just about every sector of the economy.

"In the wake of the GFC, the world is looking for alternative business models to strengthen economies, generate jobs and support communities and the cooperative model is that alternative. It's viable, strong and growing," Dame Pauline said. "Running a profitable business and caring for people does not need to be a trade off, in co-operative businesses they sit comfortably side by side. "They have come through the GFC stronger than ever and, internationally, the top 300 cooperatives are worth more than US$1.6 trillion. These are serious businesses with scale.

"In Australia the economy is not just run by big corporations and big not-for-profits there is a dynamic and successful third force that could be making an even bigger contribution to the complex and pressing economic issues of our time. "Indeed cooperative businesses in Australia have more than 7.5 million customer owners and generate more than $15 billion in annual turnover. "Governments across the world need to be looking at how they can reduce red tape and ensure that taxation and accounting regimes allow shared equity to be better managed.

"For example, in Australia, the regulation of cooperatives is state-based, creating duplications and unnecessary regulatory burdens for your large national cooperative businesses," Dame Pauline said. As part of her visit, Dame Pauline launched a set of commemorative stamps in Melbourne last week, which feature nine Australian cooperative businesses. She also met with business leaders.

Cooperatives featured on Australia Post's stamps included:

  • CBH Group a farmed owned co-operative in Western Australia with a turnover of $1.3 billion in 2011.
  • Capricorn Society a family of 14,500 small business automotive repair shops in Western Australia with turnover of nearly $1 billion in 2011.
  • Norco Cooperative a large dairy business providing products to thousands of Australian families, with a turnover of over $350 million in 2011.
  • The Community Mutual Group a financial services provider to 70,000 member/owners in regional NSW.
  • West Belconnen Health Co-op Australian's newest co-operative GP and health practice with 2150 local family owners providing health care to 10,500 people.
  • Hepburn Wind Park Cooperative Australia's first community-owned wind farm that is expected to produce enough electricity to power 2300 local homes.
  • Common Equity Housing Ltd which provides affordable housing to 5000 low income Victorians.
  • Fitzroy & Carlton Community Credit Co-op which has a long history of providing local residents with banking services and help with budgeting and financial planning.
  • Barossa Community Store owners of the retail precinct in Barossa providing the local community with a supermarket, hardware, department store, toys and electrical goods.

Sunday, 26 February 2012

Ramsay’s wind farm demands fail, but he still faces questions

www.standard.net.au
22 Feb 2012

A PROMINENT state Liberal MP is facing a parliamentary grilling after he threatened to lobby against a wind farm project unless the energy company bought his family's south-west farm. Upper House member for Western Victoria Simon Ramsay made the demands in an October letter to wind power company ACCIONA Energy over the company's plan to erect 116 turbines at Birregurra near Colac as part of its Mount Gellibrand wind project.

Mr Ramsay confirmed that he spoke to planning minister Matthew Guy about the Mt Gellibrand project. He also admitted lobbying the department of planning for changes, including the re-siting of turbines away from his property. Mr Ramsay's campaign appears to have fallen on deaf ears with both ACCIONA Energy and the government.

ACCIONA Energy resisted the demands and Mr Guy and his department last month signed off on the detailed plan for the company's turbines. Work is set to commence soon. Yesterday Mr Ramsay said that if anything, his position as a Coalition MP had worked against him. "I can assure you I got no more favourable treatment than anyone else; I haven't won any concessions", he said. However, his lobbying has triggered allegations that he sought to use his political access for personal gain and failed to adequately notify Parliament of his interest during key debates on new wind farm rules last year.

"The opposition will leave no stone unturned to get a full public investigation by referring Mr Ramsay to the privileges committee, moving to set up a parliamentary committee or referring his behaviour to any other body that may have jurisdiction", opposition planning spokesman Brian Tee said yesterday. Mr Ramsay's letter, obtained by The Age from a government source, followed months of negotiations involving Mr Ramsay and the Spanish-based ACCIONA Energy.

The discussions occurred over a period when State Parliament was dealing with the Coalition's plan to ban wind farms in some areas and to give individual residents veto over turbines within two km of any dwelling in the state. In the letter, the MP insists the wind turbines would damage amenity at his family farm and interrupt his "iconic views" to the Otway Ranges. The letter demands a string of concessions including that the company pay him $66,000 to grow trees as a noise and visual screen, scrap all turbines within two km of his home, and pay for works including the sealing of the local gravel road.

Writing on a personal letterhead, Mr Ramsay also requests that the company "enter into bona fide discussions to purchase my property at current market value" by December 31. He then notes that he intends to "make representations" to the department of planning to press for changes to the final detailed plans for the wind farm, including scaling back the number or turbines and their re-siting.

Yesterday, Mr Ramsay's confirmed he did in fact lobby an officer of the planning department seeking changes to the Mt Gellibrand wind farm plan. He also confirmed that he had spoken in general terms to Planning Minister Matthew Guy about Mt Gellibrand but denied he had asked the minister to intervene on his behalf. Mr Ramsay insisted he had made the necessary declarations to Parliament acknowledging his interest in being a neighbour to a wind farm.

But Greens wind spokesman Greg Barber said revelation of Mr Ramsay's lobbying throughout last year, including the letter to ACCIONA Energy, raised serious questions about whether he had adequately declared his interest ahead of voting on the Coalition's new rules. "He never disclosed to the Parliament that he was in negotiations with the wind farm developer over money or to buy his property. If he had, I would have moved that he was ineligible to vote under the Parliament's rules". Nor has Mr Ramsay's handling of the Mount Gellibrand matter been well received by all his neighbours.

In the mid-2000s, then farmer Ramsay was a champion of wind farms. At the time his property had been earmarked for about eight turbines under the same planning permit he is now campaigning against. The change of heart coincided with him selling the parcel of land--with the turbine permits--to a neighbour, making him a neighbour to a wind farm rather than a wind farmer. Since his early enthusiasm for wind farms he sold a parcel of land to neighbouring property owner Duncan Barber. Now he is seeking to have the same turbines moved.

Yesterday, Mr Barber (no relation to the Greens MP) said he paid a premium for the property because of the turbines for which he will be paid about $7000 each a year. "At the beginning he (Ramsay) was very pro the wind farm", Mr Barber said. "He was going to do everything in his power to get the government behind it; to support it". Mr Ramsay defended his change of attitude to the Mount Gellibrand wind farm as a result of increased knowledge about the health and visual impacts of wind farms. "We didn't know a lot about wind farming eight years ago", Mr Ramsay said. "We were all pretty raw about it. It was all pretty new".


Yet another example of Liberal Party ideology and selfishness trumping reason, honesty, openness and a cleaner future. - Blair

Mainstream, Goldwind to build 70 MW Chile wind farm

www.reuters.com
20 Feb 2012

Feb 20 (Reuters)-Ireland's Mainstream Renewable Power and Chinese wind turbine maker Xinjiang Goldwind Science & Technology Co, have formed a 50-50 joint venture to build a 70 MW wind farm in Chile, the firms said on Monday. Construction of the first 70 MW phase of the Ckani wind farm in northern Chile should start by the end of this year, and it has the potential to have a capacity of 240 MW capacity on stream by 2015, the companies said in a statement. The value of the whole project is $480 million, while the first phase is worth $140 million.

Under the terms of the deal, Goldwind's Chicago-based subsidiary will supply 47 1.5 MW wind turbines. Goldwind is China's second-largest maker of wind power equipment, and the deal is its second with Mainstream in Chile. Goldwind also secured a deal to supply turbines to a 16.5 MW wind project in Ecuador in late 2011. China's top wind turbine makers are increasingly looking to export their equipment overseas to boost sales amid sliding turbine prices and challenging market conditions at home.

"Strategic collaboration with China is core to Mainstream's global strategy", said Mainstream Chief Executive Eddie O'Connor. "Mainstream has over 15,000 MW of wind and solar projects globally, and our Chinese partners have the world-leading technology, which is ready to deploy cost-effectively and at scale".

German offshore wind-energy delays threaten energy overhaul

www.bloomberg.com
21 Feb 2012

Germany's offshore wind parks, being built to replace most of the nuclear reactors closing in the next decade, are headed to miss construction targets because of delays in connecting turbines to the power grid. E.ON AG (EOAN) and RWE AG (RWE), the country's biggest utilities, have threatened to halt investment in wind projects unless obstacles are removed, which RWE blames mainly on slow permitting and problems with acquiring cables and transformer stations.

The difficulties undermine the government's aim to have 10 GWs of sea-based turbines, or the equivalent of about nine atomic plants, installed by the end of this decade, according to the wind industry's main lobby group. About 0.2 GWs were in place at the end of last year. "We won't reach 10 GWs by 2020, and everyone in the industry knows that", Hermann Albers, the head of the BWE wind-energy lobby, said in an interview in Berlin. Grid operators, which are responsible for the connections, and their suppliers have underestimated the challenges of connecting projects that can cost upward of 1 billion euros ($1.3 billion), he said.

The sluggish start to Germany's offshore wind expansion is a setback for Chancellor Angela Merkel's plan to transition to a nuclear-free energy mix based on 80% renewable sources by 2050. It signals greater reliance on other energy sources and delays for wind-project suppliers including Siemens AG (SIE), Europe's biggest engineering company, and ABB Ltd. (ABBN) of Switzerland, the largest maker of power-distribution equipment.

'Not in Danger' 
The German government says the delays won't affect its goal of shutting all nuclear reactors by 2022 and raise the share of renewables to 35% of the total installed capacity from about 20% last year. "The energy overhaul is not in danger", as installations of land-based turbines and solar panels exceed expectations and "overcompensate" for the offshore wind delays, Juergen Maass, a spokesman for the German Environment Ministry, said by phone.

The government's longer-term target of 25 GWs of offshore wind generators by 2030 "will be met, just the curve to get there may look different", he said. The utilities say the delays may affect longer-term commitments. Fritz Vahrenholt, chief executive officer of RWE's Innogy unit for renewable energy, predicted a possible "collapse in investment activities" in German offshore wind farms unless the issues are resolved. Grid Delays Grid operator TenneT TSO GmbH told RWE that hooking the utility's 1 billion-euro Nordsee Ost wind farm up to the grid will take 12 months longer than expected, Vahrenholt said last month in Essen, Germany, where RWE has its headquarters.

E.ON's Amrumbank West project in the North Sea will be delayed by about 15 months, said Carsten Thomsen-Bendixen, an E.ON spokesman. The Dusseldorf-based utility said it can't make an investment decision on two other projects in planning in Germany because of the problems. The utilities are concerned about who will compensate them for the delays, which in the case of RWE's Nordsee Ost farm may cause damages in the "three-digit million-euro range", Vahrenholt said. They also want to cut red tape in permitting wind farms.

German Developer Windreich AG rejected the utilities' warnings as "doom-mongering". TenneT will connect "nearly on time" Windreich's Global Tech I, MEG 1 and Deutsche Bucht projects with a combined capacity of about 1 GW, Chief Executive Officer Willi Balz said in a statement late yesterday.

'Exceeding Projections' 
Germany's environment and economy ministries last month set up a group that will also include grid operators, regulators and industry officials to discuss issues including permitting and liability to speed up grid connection. The group will make recommendations to Environment Minister Norbert Roettgen at the end of next month, said Thorsten Falk of the Offshore Stiftung, a group that promotes offshore wind power.

"The 10 GWs can be reached in principle if a broad solution for the grid connection issue can be brought on its way quickly", Falk said in e-mailed remarks. "Whether this will be a precision landing or delayed by two years doesn't matter for the overhaul of the electricity supply. The actual power output is what matters, not the MW figures. Initial experience shows that those are exceeding projections".

TenneT has earmarked 5.5 billion euros for nine grid connection projects, Ulrike Hoerchens, a spokeswoman, said by phone. Two projects, HelWin 1 and BorWin 2, which are each able to connect several wind farms, are delayed by eight months and three months, respectively, she said. As much as 55 additional wind farms may ask for approval in TenneT's grid in the coming months, Hoerchens said. "That shows the kind of challenges we as a grid operator are facing", she said.

Siemens Setback 
The start of construction of the HelWin 1 converter platform will be delayed by about a year to May 2013 as the licensing and permitting process "turned out to be more complex than planned", Torsten Wolf, a spokesman for Siemens, the main contractor for both projects, said by phone. Siemens, which booked 203 million euros in charges in the first quarter on the delays, is "pulling out all the stops" to start construction for BorWin 2 in September, about three months later than planned, he said.

German authorities should draft a long-term offshore grid development plan and clarify who's legally responsible to compensate for grid connection delays, TenneT said in a statement posted on its website yesterday. It suggested forming a "German direct-current network operator" that would plan, finance, build and run power lines to connect the wind farms and bring their output south, where companies including Daimler AG and BASF AG run factories. "The current structure is not suitable to accomplish the ambitions of the energy transition", it said.

Labor pulls plug on energy role

www.adelaidenow.com.au
21 Feb 2012

THE State Government has ended Renewable Energy Commissioner Tim O'Loughlin's position more than a year before his contract was due to expire. Mr O'Loughlin was appointed in mid-2009 with some fanfare by then Premier Mike Rann. His contract was meant to run until 2013. A spokesman for Energy Minister Tom Koutsantonis said he would not be replaced.

Yesterday's Budget and Finance select committee heard Mr O'Loughlin's job ends about 18 months short of his contract by "mutual agreement", and that there had been a payout. Opposition sustainability and climate-change spokesman Steven Marshall branded the decision a waste of taxpayer money. "This shows a Premier who doesn't have the same focus on renewables as the former premier and a department that is in complete disarray, that is paying out contracts that are not completed", Mr Marshall said.

Questions about the payout amount were taken on notice by Manufacturing, Innovation, Trade, Resources and Energy Department chief executive Geoff Knight; the "functions" of RenewablesSA have been moved to the department. Mr Koutsantonis's spokesman has confirmed that Mr O'Loughlin "has left to pursue other interests". "I'm unable at this time to provide you with details of the terms of his termination package", he said. The move follows a budget decision late last year to scrap the $11.7 million remaining in the $20 million Renewable Energy Fund.

This fund was overseen by RenewablesSA, and industry said there were now no state funding support avenues available for renewable energy. The South Australian branch of the Australian Solar Energy Society and the Australian Geothermal Energy Association have raised concerns that the State Government had lost interest in renewable energy. "It makes a complete mockery of the fact that in the last week of Rann being premier, he released a new renewable statement for South Australia", said Mr Marshall. "It's clear the new Premier has no interest in this sector whatsoever".

Thursday, 23 February 2012

NSW govt criticised over wind farm audit

news.ninemsn.com.au
20 Feb 2012

The NSW government has been accused of waging a "holy war" on the renewable energy sector after ordering a noise audit of three wind farms because of complaints by residents. NSW Planning Minister Brad Hazzard on Monday announced the independent audit of three government-approved wind farms near Canberra, saying the Capital, Cullerin Range and Woodlawn facilities were the subject of ongoing complaints from locals. Mr Hazzard said previous investigations by his department found the farms were complying with noise limits but an independent noise consultant would determine the issue.

"The audit will also provide information on low-frequency noise from these wind farms to provide input into the finalisation of statewide wind farm guidelines", Mr Hazzard said. "wind farms will play an important part in the state's energy future. However, it is important the community has confidence these installations are operating in line with their consent conditions and they are not diminishing a local community's lifestyle". The planning department would also assess visual issues and the impact of the wind farms on flora and fauna, he said.

NSW Greens MP John Kaye said the government was "continuing its holy war against renewable energy". "On behalf of the loudest voices, the O'Farrell government is victimising wind farms that are a crucial component of the solution to the state's 60 million tonnes of greenhouse gas emissions", Dr Kaye said. Opposition environment spokesman Luke Foley accused the government of "pandering to flat-earthers" opposed to wind power. "All the signals the government is sending out are hostile to the development of wind power in this state", Mr Foley said.

Origin Energy, the owners of Cullerin Range, said it welcomed the audit and any objective view it would provide on noise. "We take noise conditions very seriously and are pleased that the minister has reaffirmed that the Cullerin Range Wind Farm is compliant with noise limits", an Origin Energy spokesperson said. Infigen Energy, which owns the Capital and Woodlawn farms, also supported the audit, but questioned the need for another assessment.

"Given that these wind farms have already passed the most stringent noise assessments, we can only assume that there must be some political motivation to undertake further testing", a spokesman for the company said. The audit is set to be completed by August.

UK must not lose lead in marine renewables drive

www.reuters.com
18 Feb 2012

LONDON, Feb 19 (Reuters)-Britain must not lose its lead in the development of marine energy like it did with wind power, and should focus on reducing costs and setting ambitious deployment targets beyond 2020, a report by a parliamentary committee said on Sunday. Seven out of the eight large-scale prototype wave and tidal devices installed worldwide are in the UK but are not expected to make a large contribution to its energy mix before 2020.

"Britannia really could rule the waves when it comes to marine renewable energy", said Tim Yeo, chairman of the energy and climate change committee which produced the report. "In the eighties the UK squandered the lead it had in wind power development and now Denmark has a large share of the worldwide market in turbine manufacturing. "It should be a priority for the government to ensure that the UK remains at the cutting edge of developments in this technology and does not allow our lead to slip", he added.

Marine renewables are seen providing 20% of current UK electricity demand and the government is targeting 200 to 300 MWs ( MW) of marine capacity by 2020, 1-2 GWs ( GW) less than its forecasts in 2010. The government revised its figures based on what it said was realistically obtainable by industry but RenewableUK, the voice of the marine and wind industry, said 300 MW is achievable by 2017 and utility SSE alone expects to commission 200 MW of projects around 2020.

Being overly cautious could negatively impact market confidence about the long-term future of the industry in the UK and allow other countries to steal the lead, the report warned. It said the government should not rule out setting an ambitious deployment target for marine renewables beyond 2020 if cost reductions until 2020 remain on track.

Hurdles
Several firms are exploring marine energy's potential. Alstom and SSE Renewables formed a joint venture to develop a wave energy installation in Scotland and other demonstration projects are gaining momentum. But marine technologies are still in the early stages and are a costly way to make electricity compared to other sources. Baseline costs are likely to be 38 to 48 pence per kW ( kW) for the first wave farms and 29-33 pence/ kW for the first tidal farms, compared to 9-10.5 pence/ kW, according to the Carbon Trust. The committee said the government should adopt a formal cost of energy target of 14 pence/ kW by 2020 to give a clear signal of its expectations to industry.

In terms of finance for projects, the costs and risks to private investors of the technology are currently too big for them to shoulder alone. As project costs are set to rise to tens of millions of pounds from just millions in the next stages of development, the UK and Scottish governments' combined 38 million pound funding will not be not enough, though it may be possible to get extra cash from a reserve fund of EU carbon permits (NER300) and from the UK's Green Investment Bank, the report said.

To help bring down costs, the UK plans to raise revenue support to wave and tidal deployed before 2017 but more clarity is needed as soon as possible on support levels after 2017. "We welcome the (...) commitment to provide absolute certainty on this issue by 2013-14. We will monitor whether (the government) keeps to this timetable and urge the department to deliver its decision in 2013 rather than 2014", the report said.

As the scale of deployment increases, inadequate grid connection access, slow planning and consent processes, impacts on wildlife and public opposition all have the potential to derail marine development. UK marine technology firm Ocean Power Technologies said it welcomed the report, which makes a "timely and strong case" for further action if the UK is to get the industry to commercial scale and retain its leadership.