EU UTILITIES LOOK TO OFFSHORE WIND

Utilities boost investments in offshore wind power; Demand for offshore wind aided by rising fossil-fuel prices

Sara Sjolin, May 2, 2012 (MarketWatch)

“Electricity to power European televisions and toasters will increasingly come from energy generated at sea as utility companies shore up offshore wind-energy capacity amid rising fossil-fuel prices and political pressure.

“Over the past three years, yearly installed capacity from offshore wind turbines has more than doubled in Europe to 866 megawatts in 2011, exceeding growth rates for its onshore counterpart, according to the European Wind Energy Association, or EWEA…New onshore installations rose only 10%...[and] new installed capacity at sea accounted for 10% of the total new installations in the European Union, up from 5% in 2008…”

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“The surging demand for offshore wind farms is set to continue, industry experts say, as political goals to reduce carbon emissions and geopolitical concerns in fossil-fuel-producing countries increase demand for clean alternative energy…[Offshore wind] will count for 8% of the global market in 2016…In 2011 offshore wind accounted for 2.5% of the global wind-energy market…

“Utility firms have also kick-started projects offshore. In 2011, 80% of installed offshore capacity was developed by utilities, with DONG Energy, Vattenfall and E.ON AG (DE:EOAN) the biggest players…The goal is to reach an energy mix where 85% of the electricity is generated from renewable energy by 2040 to reduce dependency on fossil fuels…[T]he European Union has a binding target of reducing carbon emissions to 20% below 1990 levels by 2020…[and] is looking at scaling up the target to a 30% reduction by 2030…”