Reality and common sense are returning to dampen the mad rush to wind power. The fact that connecting intermittent power sources to the grid is a source of dangerous instabilities and that intermittent power sources do not actually contribute to any secure generating capacity are bringing a “cap” into play. Following the drop of orders in the US, the UK is also expecting sharp reductions in installations.
From The Guardian:
Britain recently overtook Denmark to become the world’s largest offshore windfarm player, implying the tripling of capacity in the next two years. But new projects will dry up in 2013. Only 90 megawatts (MW) of newly installed capacity, which is enough to supply 30,000 homes when the wind blows, is being forecast compared with 1,368Mw the year before. Analysts are forecasting a 93% drop in the installation of new offshore windfarms in 2013 compared with the previous year. As orders for cables, foundations and other equipment are typically made two to three years ahead of the project being completed, the slowdown will start to bite among UK suppliers next year.
There are other extra projects on the drawing board which are supposed to fill this gap. But planning problems, difficulties securing finance and cost overruns on existing projects mean that these plans could be scaled back. Swedish firm Vattenfall said last month that it would not take up the option of expanding its Thanet windfarm – the largest offshore project in the world – blaming problems securing access to the grid.
The availability of bank finance for offshore projects – at least twice as costly as onshore windfarms – has still not returned to pre-credit crunch levels. Now there are only 10-14 banks actively lending, compared with almost 40 before 2008, each lending about half what they were lending before.
Just a few days ago Reuters reported:
The wind energy industry continues to struggle and Vestas Wind is confirming what General Electric is seeing… weak demand. GE went so far as to say the US wind energy market has collapsed. Vestas hasn’t made similar claims, but their actions speak much louder than words.
The company is cutting 3000 jobs and shutting plants due to shrinking power demand, rising component costs and uncertain US policy. While the company posted a smaller than expected loss in 3rd quarter profits, they indicated that the European wind energy market won’t live up to expectations either. Shares of Vestas were down nearly 10 percent Tuesday despite beating analyst earnings estimates and trading very close to the 2008 lows.
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