Why do we need offshore windfarms?

Meet energy demands, Government targets.

The decline in fossil fuel reserves and the environmental impacts of their combustion is a global challenge. Under the Kyoto Protocol, the UK is legally bound to take action to reduce greenhouse gas emissions by reducing the amount of fossil fuels burned.

The UK government has set a domestic goal to reduce carbon dioxide emissions by 20 per cent below 1990 levels by 2010. At present the UK overall emissions are approximately 160 million tonnes per annum and the target is to emit 130 million tonnes by 2010. Offshore wind farms are likely to make a 28% contribution to achieving this goal. In working towards these targets 20% of the total UK electricity supply is to come from renewable sources by 2020 with intermediate targets of 5% by 2005 and 10% by 2010.

To meet these targets 10,000 MW of additional renewable energy generation will be required by 2010, which could be met through offshore wind power alone.

The UK is the windiest country in Europe and has enormous potential for generating energy from offshore wind. It is anticipated that initially 1.8% of the UK’s renewable energy will come from offshore wind sources.

East Anglia has a target to produce 14% of the region’s electricity from renewable sources by 2010 and 44% by 2020. The biggest opportunity for meeting this target is from offshore wind power. The government is providing financial incentives to help the renewable energy industry develop.

Generating renewable energy is no longer a choice but a government driven requirement.

Financial incentives

The key policy instrument for stimulating growth and investment in the offshore wind industry is the Renewables Obligation Order. Launched in 2002, this initiative requires all electricity providers to supply 3% of their supply from renewable sources. This percentage is set to rise to 10.4% by 2010/11 and to remain at this level until 2027.

Electricity companies such as Powergen are therefore investing in and developing offshore wind farms. These companies can also buy in renewable energy from renewable energy generators in order to meet their targets, further stimulating the industry.

In the first round of offshore wind farm developments the government offered capital grants to developers but these grants have since been withdrawn.

External links
Government White Paper on Energy

Renewables Obligation Order 2002

Obligation Order 2004 (Amendment)

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