The Department of Energy and Climate Change opened its doors yesterday to offshore wind energy research and development companies with bids for a share of a £10 million (US $16m) offshore wind technology fund.
The fund is aimed at stimulating the development of next-generation offshore wind energy technologies to try and achieve large scale delivery around the UK before 2020.
The Government has high hopes for offshore wind, relying heavily on the technology to meet its climate change commitments.
Last year the Government signed up to a legally binding European target of producing 20% renewable electricity by 2020. Offshore wind energy is likely to be the only technology that can meet this ambitious target – however investors perceive the sector as ‘risky business’. The offshore wind marketplace is dominated by companies with big balance sheets – many in joint ventures to reduce risks.
The offshore wind technology fund is intended to give the cautious offshore wind energy industry a boost, however recent news of China’s monopoly on rare- earth metals needed for green technology such as wind turbines and hybrid cars indicate that wider forces such as raw material availability are likely to have more of an affect on whether these high capital cost projects are built.
The video below highlights the construction of offshore project ‘Princes Amalia’ and demonstrates some of the practical challenges of building in sometimes hostile offshore conditions.
Alternative Energy
May 31st, 2009
I think as more and more wind turbines are built, the lower the cost will eventually be.