Wind power is set to provide 15.7 per cent of Europe’s total electricity demand by 2020, according to the latest forecast from the European Wind Energy Association (EWEA).
The Association outlined scenarios for onshore and offshore wind power deployment in the EU ahead of the European Commission’s Energy Roadmap 2050, due to be published later this year.
“Wind energy will more than triple its power output by 2020 with €194 billion invested in European onshore and offshore wind farms in this decade,” said Justin Wilkes, Policy Director of EWEA. “This success is mainly driven by a strong EU regulatory framework to 2020, which we need also after 2020.”
Wilkes added, “Wind power will not only make a very substantial contribution to meeting Europe's commitment to reduce greenhouse gas emissions. It strongly accelerates a shift away from expensive fossil fuels, creates jobs, makes Europe more competitive, and provides secure and renewable power production in Europe.”
Electricity production from wind power is expected to increase from 182 Terawatt hours (TWh) or 5.5 per cent of the total EU demand in 2010, to 581 TWh or 15.7 per cent of the total demand in 2020.
By 2020 the electricity production from wind energy will be equivalent to the total electricity consumption of all households in France, Germany, Poland, Spain and the UK together.
By 2030 1,154 TWh, or 28 per cent of total demand could be produced by wind power, more than the EU’s predicted 241 million private households are expected to consume in 2030. Today, wind power produces electricity equivalent to the consumption of 50 million average EU households.
The EWEA also reported on progress in offshore wind energy for the first half year of the year, showing a 4.5 per cent increase in installations of offshore capacity compared to the first half of 2010.
In all, 101 new offshore wind turbines, with a total capacity of 348 Megawatt (MW), were connected to the power grids in the UK, Germany and Norway during the first six months of 2011.
In Europe, eleven offshore wind farms worth some €8.5 billion and with a total capacity of 2,844 MW are currently under construction in European waters. The size of the installed offshore wind turbines averaged 3.4 MW - up from an average of 2.9 MW during the first half of 2010.
“While I see several positive trends for the European offshore wind power industry, we are not home and dry yet. The sector is coming out of the financial crisis but is still facing a potential worsening of the general economic crisis. The number of banks providing capital for offshore wind farm investments is steadily growing, although there is a continued need for attracting an increasing number of large institutional investors to offshore wind farms - presently the largest construction projects going on in Europe,” said Christian Kjaer, chief executive officer of EWEA.
Several wind farms in Germany and the UK will reach financial close in 2011 and financial institutions will this year provide a record amount of financing to the sector - over €3 billion. Between three and five transactions are expected to close during the course of the year. Equity financing, including divestment of stakes in existing projects to initiate new ones, highlights new approaches to financing among developers and power companies following the financial crisis.
As of 30 June 2011, there are 1,247 offshore wind turbines fully grid connected with a total capacity of 3,294 MW in 49 wind farms spread between nine European countries.
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