Stories tagged with "wind"
Offshore wind finance: 3 for 3
Posted by Jerome a Paris on July 29, 2009 - 9:22am in The Oil Drum: Europe
Topic: Economics/Finance
Tags: finance, offshore wind, project finance, wind [list all tags]
Belgian and Dutch investors join EIB and banks in Belwind rescue
(24 Jul 2009)Banks have signed the most important European renewable energy project financing of 2009 so far, after a band of Low Countries investors bought the Belwind offshore wind farm from the failed Econcern group.
The deal, one of the most encouraging pointers so far that the worst of the credit crunch may be easing for clean energy, sees the European Investment Bank agree to lend EUR 300m towards a EUR 482.5m (USD 686.4m), 15-year debt package for Belwind.
The remaining EUR 182.5m of the long-term debt is being provided by [commercial banks]
This is the transaction I have been working on for over a year and a half and, between my bank's bailout, the credit crunch or my client's bankruptcy, it's been a rather stressful process - and an altogether too busy one, as may have attested my lack of presence on the Oil Drum in recent months.
It's the biggest offshore wind farm to be project-financed, it's the first to be financed that way since the credit crisis (and the third only altogether), and it's the first time the European Investment Bank (a multilateral financial institution, and the EU's official tool to finance large projects in and around the zone) is involved in taking project risk in the sector, following the clear push from EU governments over the past year.
High altitude wind power II: the reactions
Posted by Ugo Bardi on July 13, 2009 - 10:03am in The Oil Drum: Europe
Topic: Alternative energy
Tags: energy, renewables, wind [list all tags]
Tall ships are the embodiment of the fascination we feel for the free and abundant energy of the wind. Already at the time of the sailing ships, it was recognized that it was important to catch the wind at the maximum possible height. So, the main mast of a tall ship could go up to 30 meters. Modern wind turbines reach heights of a hundred meters or more. But Airborne Wind Energy (AWE) can tap winds at heights up to thousands of meters. The present post is a more in depth examination of AWE after a previous post
that I wrote on The Oil Drum and which generated a lot of comments and of reactions. (Image from the Imperial College Yacht Club.) .
Problems for the Pickens' Plan
Posted by Heading Out on July 10, 2009 - 10:24am
Topic: Alternative energy
Tags: t boone pickens, wind, wind turbine [list all tags]
It is a relatively cool, overcast day here in Cambridge, MA, a little damp, with only the occasional tree moving in almost 24 hours. But yesterday I was chased up the New York Thruway by a storm carrying hail and cutting visibility to yards. These weather conditions suggest that today is not a good day for the prime candidates promoted as the sustainable fuels of tomorrow, here in the Northeast: wind and solar.
The larger blow to the sustainable energy story today, however, is not the chill of an autumn day in July in Massachusetts, but rather the colder stillness of the lack of movement by Boone Pickens on his wind farm in Texas. The reasons for the turn around depend on who you read.
Some Cautionary Thoughts about Wind
Posted by Gail the Actuary on June 1, 2009 - 9:57am
Topic: Alternative energy
Tags: electricity, eroi, wind, wind generated electricity [list all tags]
This story has been edited to make it clearer that the analysis relates to US wind rather than European wind and to clarify the problem with excess generation at night. I also added an Item 10.
I think we think we know more about wind-power than we do. These are a few things that I have recently discovered about wind that make me think that plunging headlong into electricity is not necessarily a good idea. At this point, we don't seem to have a plan that does much more than address wind turbines themselves.
I should make it clear that this discussion relates to US wind power, not European wind power. Many of the issues directly or indirectly relate to the fact the US is facing a multi-faceted problem--lack of wind turbines, needed grid upgrades, and lack of electrical storage. In a time of financial problems, the price of such a big change makes it difficult to tackle all these problems on the necessary scale at once. If we only add wind turbines, and make minimal upgrades in storage and transmission, the change is still likely to still be expensive and will likely leave us with the need for large subsidies. Without extensive grid upgrades and electrical storage changes, wind generated electricity will continue to play only a supporting role, acting mostly as a fuel substitute.
Europe has been dealing with this issue longer and has better addressed the wind transmission and storage issue, so it is in better shape in this regard. Jerome Guillet has prepared a write-up focusing more on the European perspective.
The cost of wind, the price of wind, the value of wind
Posted by Jerome a Paris on May 6, 2009 - 10:01am in The Oil Drum: Europe
Topic: Economics/Finance
Tags: economics, wind [list all tags]
I'd like to try to clear some of the confusion that surrounds the economics of wind power, as it is often fed and used by the opponents of wind to dismiss it. As I noted recently, even the basic economics of energy markets are often wilfully misunderstood by commentators, so it's worth going in more detail through concepts like levelised cost and marginal cost, and identify how different electricity producers have different impacts on electricity (market) prices (which may or may not be reflected in retail prices) and have different externalities. Value for society of a generation source may also include other items that are harder to acount in purely monetary terms (and/or whose very value may be disputed), such as the long term risk of depletion of the fuel, or energy security issues, such as dependency on unstable and/or unfriendly foreign countries or vulnerable infrastructure.
Depending on which concept you favor, your preferred energy policies will be rather different. Follow me below the fold for a tour.
The usual disclosure: my job is to finance, among other energy projects, wind farms. My earlier articles on wind power can all be found here
Some Thoughts on the Obama Energy Agenda from the Perspective of Net Energy
Posted by David Murphy on February 9, 2009 - 10:16am in The Oil Drum: Net Energy
Topic: Policy/Politics
Tags: barack obama, electricity, eroi guy, ethanol, gross energy, net energy, oil sands, original, solar power, wind [list all tags]
The Obama-Biden comprehensive a New Energy for America Plan is designed to:
- Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future.
- Within 10 years save more oil than we currently import from the Middle East and Venezuela combined.
- Put 1 million Plug-In Hybrid cars -- cars that can get up to 150 miles per gallon -- on the road by 2015, cars that we will work to make sure are built here in America.
- Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.
- Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050
The Obama energy agenda focuses on - and these are not mutually exclusive - efficiency, electrification, and the promotion of alternative energy resources. Its five main goals are set up in a way so that success in any one of the five individual areas will reinforce the other 4, helping the overall agenda achieve success. For example, creating 25% of the U.S. electricity production from renewable resources (goal #4) will aid in decreasing the U.S. greenhouse gas emissions by 80% (goal #5).
The energy agenda is a welcomed change showing a future outlook that is based, at least to some [small] extent, on the physical realities of the natural resource world. However, from the perspective of net energy, some potential problems do exist. My goal here is to discuss some possible shortcomings of the new administrations energy agenda from the perspective of net energy.
Wind power set to decline under Obama?
Posted by Jerome a Paris on January 31, 2009 - 11:04pm in The Oil Drum: Europe
Topic: Alternative energy
Tags: original, ptc, stimulus, wind, wind energy [list all tags]
But for reasons linked to the inconsistent regulatory framework until now, and to the ongoing credit crisis, 2009 is likely to be a bad year for wind, with a decline in installations and, possibly, layoffs.
Of course, Obama is not to blame for that situation, which he inherits, but it will be a pretty bad signal to see wind power decline significantly this year - and it would be an inexcusable one if that decline continues into 2010. The current stimulus plan does include measures to support the industry, but these seem oddly unambitious given the context of economic crisis and wind's proven ability to create jobs and economic activity, to provide cheap power and to eliminate both carbon emissions and fossil fuel imports.
Earlier diaries: Windpower series
Advice to Pres. Obama (#5): One Engineer's Advice for Energy Policy
Posted by Engineer-Poet on January 26, 2009 - 10:49am
Topic: Policy/Politics
Tags: barack obama, energy infrastructure, infrastructure, integral fast reactor, molten salt reactor, nuclear, obama energy advice, policy, rail, thorium, wind [list all tags]
This article is one of a series of articles, offering energy advice to President Obama and his administration.
The incoming Obama administration has promised a much-needed change in the direction of US energy policy (or non-policy, as some see the current situation). However, some of those changes appear to be campaign gimmicks or aimed at satisfying special interests rather than solving our various problems. (The heavy-for-light crude swap in the Strategic Petroleum Reserve proposed in the Obama-Biden energy proposal appears to be one such gimmick.)
For much too long, US energy legislation (I hesitate to call it policy, because it lacks the coherence to justify the label) has been aimed at short-term patches on problems which have only gotten worse. CAFE regulations have barely held fuel economy steady, while low fuel prices caused consumption to skyrocket. "Free trade" allowed cheap oil imports to kill movement toward efficiency and substitutes. The auto industry lobbied against fuel taxes to promote its short-term interest in selling profitable trucks, with the long-term result that all 3 US automakers will go bankrupt in the next year if nothing is done.
We've had change before, but the results put us where we are now. It's time for the right change.
Advice to Pres. Obama (# 4): Go for Wind Power, Seriously
Posted by Jerome a Paris on January 23, 2009 - 11:15am in The Oil Drum: Europe
Topic: Policy/Politics
Tags: obama energy advice, original, wind [list all tags]

the GTK 1100 crane, the largest in the world, able to lift 100 tons 460ft high. It is a product of the Grove company, part of the (US) Manitowoc group, but manufactured in Northern Germany for now.
US Energy Tax: How Level Is the Playing Field?
Posted by Gail the Actuary on January 16, 2009 - 10:57am
Topic: Policy/Politics
Tags: electric grid, gilbert metcalf, solar power, stimulus, wind [list all tags]
A new study has been issued by the Manhattan Institute, called TAXING ENERGY IN THE UNITED STATES: Which Fuels Does the Tax Code Favor? The study was written by Gilbert Metcalf of Tufts University. I also participated in a conference call with Metcalf regarding the report. A couple of Metcalf's findings:
• The tax code is not at all generous with respect to investments in the electric grid. The effective tax rate on these investments is very close to the unadjusted statutory tax rate of about 39%. If investment is to be encouraged in the electric grid, Dr. Metcalf believes that this tax rate must be lowered.
• The current tax code, especially since enactment of the Energy Policy Act of 2005, strongly encourages investment in nuclear, wind, and solar power, which enjoy tax subsidies ranging from nearly 100 percent, for nuclear, to more than 200 percent, for solar. In other words, tax subsidies for these forms of energy generation are sufficiently generous that investors may use them to offset tax liabilities for capital gains and income derived from non-energy investments. The telephone discussion indicated that these provisions are not currently working as intended for wind and solar, because of lack of "tax appetite".


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