UK Wind Energy - Bubble bows up

Energy companies know about energy and they know about money. They know how to make both. They also know a lousy investment when they see one.

E.ON UK and Energi E2 joint developers of the £100 Mn Scarweather Sands off Porthcawl, S. Wales with a projected 30 turbines, each 400 ft tall, claimed output of 100 Mw , have stated the project is no longer financially viable.

The Welsh Assembly members approved the plans in July 2004, but Jason Scagell, director of E.ON UK Renewables, said: “ ….building Scarweather simply isn't possible under current market conditions. Demand for the supply of key components such as turbines, offshore cabling and foundations is so high at the moment that it's very difficult to make projects cost effective."

E.ON also withdrew from the Tunes Plateau project in Northern Ireland last September and United Utilities withdrew from several projects in the North West, one of which Scout Farm has received approval but there appears little propects that the project will now go ahead.

The British Wind Energy Association is quoted in the Guradian this week saying the problems faced by E.ON were shared by many other members. The BWEA said almost all 10 of the similar schemes given the go-ahead under the government's first round of offshore licensing were delayed by this or other issues, such as difficult contract negotiations – although the Burbo Bank scheme off Liverpool has been awarded £10Mn of Lottery Funds!

The BWEA claim this is due to the tax credit scheme in the US raising demand, although most (i.e nearly 98%) of their new build is onshore. E-on’s partner in Wales the Danish group Energi E2, identify the cost of offshore cabling as a major problem inhibiting the development of offshore schemes. There are also problems being raised of the effect on subsea cabling on marine organisms (see COWRIE research paper)

– a conference was held this week about this subject.
COWRIE Data and Information Management Seminar
Monday 5th December 2005-11-25 IMAREST, 80 Coleman St, London
1000-1630
By Invitation Only


We posted recently the financial and production problems leading to losses at Vestas, one of the world’s largest wind turbine manufacturers.

The UK is Britain is currently bottom of the European renewable energy table. Wind supplies just 0.6% of our electricity, compared with 18% in Denmark.

It is evident that the whole bubble of wind generated electrical energy has burst. It was ill thought out, the financing hopelessly flawed and the details of construction not sufficiently understood and the huge problems of distribution and connection to the National Grid been overlooked, ignored or dismissed.

The contribution of wind energy offshore and onshore in the total UK energy budget will continue to be negligible, hugely costly and will involve maintenance costs that will eventually prove to be unsustainable.


Recent blogs on same topic here