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The heads of Iberdrola and Total see offshore wind as a viable
substitute for baseload coal-fired generation because it operates
longer than either solar or onshore wind resources and boasts a
higher capacity factor, or the average power that it generates
compared to its nameplate capacity.
At a CERAWeek by IHS Markit discussion on 3 March, Iberdrola
President Ignacio Galán said alternate forms of baseload generation
will need to emerge with worldwide closures of coal-fired power
plants, as more countries move toward a low-carbon future.
"I think the positive thing about offshore [wind] is it can be a
good substitute for baseload because the number of hours of
operation is very large, 4,000-5,000 hours, and it is very stable
and predictable," said Galán, who also is chief executive officer
of Iberdrola, a Spanish power company that ranks among the largest
wind developers globally.
Total CEO Patrick Pouyanné, who participated in the panel
discussion with Galán and IHS Markit Vice Chairman Daniel Yergin,
agreed."I agree offshore wind is available 50-55% of the time when
onshore wind is only 30%, so that makes a big difference," Pouyanné
said.
The relative high strength of the capacity factors for offshore
wind also came up as one of the reasons for the shift toward
offshore wind in a 4 March CERAWeek discussion moderated by IHS
Markit North American Renewable Power Director Rafael McDonald.
Offshore wind projects take advantage of the fact that wind
blows stronger and more steadily over oceans than across land.
However, installation of offshore wind farms is complex. The
biggest problem lies in elevating wind turbines and substations
above the sea level and anchoring them to the seabed.
Favorable View
Felipe Arbelaez, BP senior vice president for zero carbon
energy, said offshore wind is being viewed favorably because it
doesn't take up land, unlike onshore wind projects that require a
lot of acreage sought by developers.
Political support for decarbonization policies has played a key
role in support for offshore wind projects, but cost always remains
a consideration for policymakers, according to Steve Dayney, head
of Offshore North America for Siemens Gamesa Renewable Energy.
However, he said, there have been dramatic declines in the cost
of building offshore wind in the past three or four years.
Arbelaez said executives underestimated the rate of decline in
the cost of renewable energy, and he expects the same to happen
when significant improvements have been made in turbine design to
improve efficiency.
During the 3 March discussion, Galán shared a $3 billion-$4
billion estimate of building each offshore wind project.
To date, Iberdola has already installed 1 gigawatts (GW) of
offshore wind in Britain, and in Germany, and is in the process of
adding another 2.6 GW in the US, France, and Germany, Galán said.
He said another 9 GW of pilings stand ready for construction.
300 GW in Pipeline
IHS Markit estimates the global pipeline of offshore wind
projects now exceeds 300 GW, compared with nearly 35 GW currently
installed. IHS Markit's McDonald asked the panelists whether the
installation of more than 300 GW was possible within the next
decade or so.
"There is appetite on the investment side," responded Agustín
Delgado, Iberdrola's chief innovation and sustainability
officer.
Looking ahead, McDonald also asked about the prospects for
floating offshore wind, which Pouyanné a day earlier had described
as the "new frontier" of clean energy technology.
Infancy of Technology
Most panelists said floating offshore wind, which McDonald
described as "two flavors," is still resting in the "infancy of
technology" unlike its more established onshore counterpart. But
they all agreed it has definite promise.
Delgado said floating offshore wind projects are attractive
because they can tap into global supply chains for materials and
skills, and do not run into the restrictions of being too close to
land. Dayney expects a surge in construction after 2030.
But for now, power companies and oil and natural gas companies
can collaborate, using their skills and expertise in pushing out
more offshore wind projects.
Galán said Iberdrola has the knowledge and the skills to spread
offshore wind's footprint, and welcomes the participation of new
players from the oil and gas business to help with the energy
transition.
When Yergin asked whether Total could transfer the experience of
working on offshore oil and gas rigs to offshore, Pouyanné
responded that the supply chain working for offshore wind is the
same as the one working for the oil and gas business. In fact, he
added, engineers at Total are "excited" about working on offshore
projects.
Posted 04 March 2021 by Amena Saiyid, Senior Climate and Energy Research Analyst
