Predictions for 2010
Posted by Joyce van Heijzen to Other topics, 2010-01-06 10:38:39
A discussion started on LinkedIn attracted my attention!
Very interesting to discuss this on our site, so don't hesitate to give your opinion on the following.
Thomas S. Wissmann:
What are your views for 2010? Where is the industry heading? Will project finance be available?
Answer Ian Zhang:
The prime issue in this profession will be how to make offershore wind unit cost as cheap as or cheaper than the fossil fuel power's.
For sustainable development and utilization of renewable energy, it is a key driver to reduce power generation unit cost to ba an acceptable level with new technology, say, high tempreture superconductor enables big offshore wind turbines to produce cheaper power than the one generated by fossil fuel.
Therefore, the continuel government subsidy for unit cost can be transferred to the R&D of application of HTS wire to big offshore wind turbine power output improvement. Then we can achieve the pure commercialization of wind energy utilization.
Welcome your discussion!
Answer Geert Fijnaut:
In North Western Europe (i.e. The Netherlands, UK, Germany, Belgium, Ireland and Scandinavia) the focus will be on offshore wind, not only in 2010 but also in the years after 2010. There are reasonable to good subsidy mechanisms in place and banks will be interested in solid offshore projects.
The biggest problems for the industry will be shortages in the supply chain (specifically the availability of enough installation and O&M-vessels) and the cost/availability of good grid connections. Offshore maintenace is also an issue but this can be mitigated by acceptable supply- and O&M-contracts.
My bank, ASN Bank in The Netherlands, will be open for project finance with respect to offshore windprojects. We participated in the Belwind deal (one of the biggest offshore deals in project finance in 2009) and are willing to look at other offshore projects, although they have to be in our core area which is North Western Europe.
I hope this contribution helps.