By Rasmus Helveg Petersen,
Minister for Climate, Energy and Building

Much has changed since the eleven 450 kW turbines were erected in 1991 at Vindeby, the world’s first offshore wind farm. The Kriegers Flak project in Denmark will amount to 600 MW. We see the emergence of wind turbines in the 5-10 MW range, and simultaneously we see the design of installment vessels made specifically for offshore wind farm deployment.

There is no doubt, that the development of the modern wind turbine has undergone an unbelievable, astonishing, and somewhat difficult progression. In less than three decades we have gone from agricultural technology to offshore power stations. We have a lot to be proud of. But we also have some important learnings and questions to ask ourselves.

WHO IS RESPONSIBLE?

It is often said to me that the viability of offshore wind is a question of political support. The claim seems to be that governments should be held responsible if the costs rise. This is true to some extent. Cost reductions come with volume, and volume is dependent on stable political targets and reliable subsidy schemes. However, in my opinion, the industry cannot hide from the fact that at the end of the day they themselves play a key role here. Bringing down the costs of developing technology in order to make it a commercially viable form of renewable power is as much a responsibility of the industry as of anyone else. Volumes have risen in the past decade, and yet we still have not seen the cost reductions we hoped for.

If the cost of energy is to follow a downward trajectory, the industry needs to embrace these three priorities:

1. Cooperation

Start cooperating and sharing information and knowhow. The cooperation must cover turbines, foundations, offshore transmission, logistics, and maintenance. For the same reason I am determined to introduce an obligation in the licenses for new offshore projects and make it mandatory to share information on Metocean data at an unprecedented detailed level.

2. Integration

Think more integration and less interface. Optimal technical solutions and lower riskpremiums depend on taking an integrated approach when developing new projects. The Danish Energy Agency recently published a technical paper which made the case that offshore wind power could be one of the most competitive sources of energy after onshore wind power – if risk premiums were lowered considerably. This could e.g. mean less multi-contracting and more integrated turn-key projects in the future.

3. Innovation

Continue to innovate and manage risks in controlled test environments. There are now publically funded full-scale nacelle and drive train test facilities in the UK and in Denmark. The national onshore test center for large turbines in Østerild is well-established, and it is my hope that we in the near term will be able to launch a new 50 MW offshore test scheme. These facilities, along with factory testing and further standardisation efforts, will make a significant difference in promoting better and more cost-effective solutions throughout the whole of the supply chain.

OUR PATH TO A FOSSIL FREE SOCIETY

Bringing down costs is not just important to the offshore wind industry. The outcome will also shape Denmark’s path to a greener energy future. Without serious cost reductions our journey becomes much more difficult. Our goal of a fossil free society and a healthy climate will be further out of our reach if we do not succeed. I therefore call upon the industry to get fully involved in the Danish offshore tenders (Horns Rev 3, Kriegers Flak as well as the near shore projects) and prove to the rest of us that they are in fact capable of delivering on the promise of cost-reductions. Remember the English proverb: The proof of the pudding is in the eating. If you want to succeed, you have to start by trying.

To sum up; as the offshore wind turbine market consolidates, matures, and strives to meet the increasing pressure to achieve significant cost reduction, the market’s top three priorities should be: Co-operation, Integration, and Innovation. If the industry can successfully deliver on these priorities, we can accelerate the expansion of this fascinating industry, take it into new markets and allow it to produce huge amounts of clean, reliable and cost effective electricity in the future. There is really no excuse not to give it a try.

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