BWEA Press Release

Wednesday 9th November 2005

Significant steps towards UK's offshore renewables powerhouse

1800 MW of new offshore wind capacity formally submitted in Thames Estuary as DTI announces consenting process for marine projects

The UK offshore wind industry is making significant progress in its second phase of development, reports the BWEA (British Wind Energy Association). Yesterday's announcement from Thanet Offshore Wind Limited of it's submission for formal consent means that all three of the large-scale wind farms planned for development in the Thames Estuary strategic area – a total of 1800 megawatts (MW) of capacity – are now being considered by the Department of Trade & Industry (DTI) and Defra*. They will be seeking views from statutory and non-statutory consultees over the coming weeks.

BWEA's Head of Offshore, Dr Gordon Edge, commented:

"This is excellent progress for the UK offshore sector, showing developers' enthusiasm to invest in these large-scale projects. While the offshore wind industry continues to face key challenges on the economic and technical fronts, confidence remains high that solutions can be found. BWEA is working hard with Government and other stakeholders to ensure support for the UK's pioneering efforts in building a new industry and to overcome any remaining issues in the consenting process."

First past the post was the London Array in June this year. The 1,000 MW flagship project, being developed by the consortium of CORE Ltd, E.ON UK Renewables and Shell WindEnergy, potentially represents sufficient green electricity to power one quarter of greater London homes, while meeting 10% of the Government's 2010 targets for renewables.

Next to submit was the 500 MW Greater Gabbard project, developed by Airtricity and Fluor, in October this year. This project is unique as it is the first offshore wind farm to seek consent outside UK territorial waters, enabled by the Energy Act 2004 under which a Renewable Energy Zone has been declared for the UK continental shelf.

Thanet Offshore Wind Farm yesterday applied for consent to construct and operate 300 MW, noting the high level of public support received locally for their project, with 73% of people who attended public exhibitions about the scheme in June this year saying they were supportive, and only 7% were against.

All three projects have accompanied their applications with rigorous environmental and technical surveys, and are seeking permission to build arrays of up to 270 turbines at sea, cables to shore buried under the sea bed, and onshore infrastructure such as substations required to link the generators to the national grid. If consents are awarded within 12 months, then construction could start in 2007-08, with the projects being built out over a number of years after that.

The second phase of development of the UK offshore wind industry, Round 2, comprises 15 sites, totalling as much 7,200 MW, being developed in three strategic areas around the UK coastline, the Thames Estuary, the Greater Wash, off the East of England coast, and the North West, including the Liverpool Bay area. The first of the projects in the North West, npower renewables' 750 MW Gwynt y Mor, is expected to apply for it's consent to build and operate soon.

Round 2 follows on from the successful Round 1 of development, where a total of 18 sites, limited to 30 turbines per site, were proposed at 13 locations around the UK. Three of these projects are now generating electricity, including the newly completed Kentish Flats, with a fourth, Barrow Offshore, expected to be commissioned in early 2006.

Meanwhile, the DTI have also announced consenting guidance for wave and tidal stream projects. These arrangements allow for the deployment of what the DTI have called 'pre-commercial demonstration projects' of around 3-5 MW by outlining that the consenting process will be proportionate to the scale of the project. By announcing £2 million for generic monitoring they also allow for an information gathering process that will help inform decision making for larger projects going forward. As expected they also state that any lease at this stage will also be limited in time. BWEA will therefore work with both The Crown Estate and DTI to ensure this is negotiable given satisfactory performance in the water.

BWEA's Marine Renewables Development Manager, Michael Hay, commented:

"This is a welcome and timely announcement from the DTI as it will help developers who will be planning their first small arrays around the DTI's Demonstration Scheme funding package that is due to become available early 2006. These schemes work well together as the first step for the development of wave and tidal stream however neither provide any long term security. We will therefore be encouraging Government to set out a route map for the development of the sector as soon as possible that combines long term market support and strategic planning to reflect a genuine policy commitment to wave and tidal stream energy development in the UK."

Notes:

* DTI for consent under Section 36 of the Electricity Act
Defra to award a licence under the Food and Environment Protection Act

1. BWEA is the UK's leading renewable energy association, representing 320 companies active in the sector. With over 27 year's experience, BWEA is leading the UK debate on wind energy and marine renewables. BWEA's specialist team provides essential information and support, and lobbies on behalf of its members on key challenges facing these dynamic industries.

2. Thames Estuary Round 2 projects:

  • London Array – up to 270 turbines, generating 1,000 MW, located 20 km from the Kent and Essex coast. See www.londonarray.com
  • Greater Gabbard – up to 140 turbines, generating 500 MW, located 25 km from the Suffolk coast. See www.greatergabbard.com
  • Thanet Offshore – between 60 and 100 turbines, generating 300 MW, located 11.3 km to the north east of the Thanet coast in East Kent. See www.warwickenergy.com/thanet.htm

A fourth project in the Thames Estuary, Gunfleet Sands II, is an extension to the consented Round 1 project, Gunfleet Sands, and is being developed by GE Wind.

More information on offshore wind energy, including details of all projects in both R1 and R2 can be found at www.bwea.com/offshore

3. BWEA's 5th annual Offshore Wind Conference will take place on 4-5 April 2006 at the Queen Elizabeth Conference Centre in Westminster, London. 400 of the leading players in the dynamic UK offshore sector will examine the latest developments in technology, financing and policy. For more information see www.bwea.com/offshore/conference.html.

4. BWEA's 3rd annual Wave & Tidal Energy Conference 'Power & Opportunity' will take place on 8 February 2006 at the Sage, Gateshead in Newcastle. By highlighting the role wave and tidal energy could play in the future of UK electricity supply this event aims to position marine renewables as an industry with its sights set fully on competitive, clean and secure energy production. It will also bring to the fore the international appetite to capitalise on the opportunities that exist in creating a substantial industry around this exciting sector. For more information, including the full conference programme, see www.bwea.com/marine/conference.html

For more information about the UK's marine renewables industry see www.bwea.com/marine