Energy companies put forward ambitious offshore wind power plans

Wind farms at sea could generate nuclear plant’s worth of electricity

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Finnish energy companies announced extensive sea wind projects with a combined electricity output close to that of a commercial nuclear reactor. Investment is being spurred by the European Union’s goals in limiting emissions, which are forcing member states to invest more in renewable energy.
      “From our point of view, the question is that of how the Finnish state plans to meet its obligations. Wind power is one answer among many”, said Helsinki Energy CEO Seppo Ruohonen to Helsingin Sanomat.
      No firm decisions have been made on investments, as the projects are still being studied.
      “It is clear that increasing the use of wind power, and especially wind power at sea is not economically viable with the present prices of electricity”, says Arja Koski of the electric utility Fortum.
     
Fortum reserved two areas for wind power plants in the Bay of Bothnia with a combined potential output of 1,300 megawatts. A single large windmill has an output of 3-4 megawatts, so hundreds of them would be set up in the area. The construction of a single windmill at sea would cost an estimated EUR two million.
      Helsinki Energy and the Vaasa-based Etelä-Pohjanmaan Voima (EPV) said that they were planning to work together on two areas in the Gulf of Finland and the Gulf of Bothnia with outputs of 500 to 1,000 megawatts each.
      The first of the power plants could be in operation five years from now.
      The offshore wind farms would be set up in sea areas owned by the state, which would mean that they would stand between 10 and 20 kilometres off shore.
     
Vacillation by the state on subsidy questions raises anger among energy providers. According to Helsinki Energy and EPV, this is the greatest factor of uncertainty as far as profitability is concerned.
      “Planning and permission processes are slow and varied. The confidence of investors would also require clear and sustained subsidy policy”, Ruohonen says. In his view, the best form of subsidy would be a direct investment support.
      “Investments are expensive and payback times are long. Subsidies paid in small installments can be cut by political decisions after the investments are made.”
      Fortum feels that the best form of support would be the so-called “green certificates”. Under such a scheme, consumers would be compelled to buy a certain proportion of their electricity as renewable energy. Electric utilities would sell the certificates to the consumers.
     
The wind energy sector isi also suffering from an overheated market. Prices of wind generators have increased considerably, and delivery times have doubled in a few years.


Previously in HS International Edition:
  Metsähallitus plans to charge owners of wind generators rent for using public land (15.5.2008)
  Helsinki decision-makers debate energy issues at Sanoma House (21.1.2008)

Links:
  Wind Power in Finland (Wikipedia)

Helsingin Sanomat