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Scotland Schools the States on Offshore Wind Initiatives

French energy conglomerate teams up with Scottish Enterprise for turbine manufacturing facility.

Vince Font, Contributing Editor
November 22, 2012  |  13 Comments

While the United States is busy charging headlong towards a fiscal cliff and the likely expiration of the wind energy Production Tax Credit, the country of Scotland is busy showing everyone how things really ought to be done.

In a move that probably everyone in the world but Donald Trump can get behind, Scottish Enterprise – the arm of the Scottish government responsible for spurring economic development and enterprise – has entered into an agreement with French energy conglomerate Areva to locate wind turbine nacelle and blade manufacturing facilities in Scotland. The manufactured product will then serve Scottish offshore wind farms and other wind farms in northern England.

The development agreement is expected to create as many as 750 new jobs in Scotland, in both manufacturing and supply chain support. According to Simon Wallace, head of energy for Scottish Development International, resulting job growth will be a “massive upside” for a national industry that has already experienced significant job growth. Wallace estimates that as many as 20,000 jobs could be brought to Scotland in the coming years in the offshore wind sector alone. Scottish Development International oversees trade promotion and investment for Scottish Enterprise and Highlands and Islands Enterprise.

Wallace said the agreement between Areva and Scottish Enterprise will also aid greatly in helping to meet an ambitious goal set by First Minister Alex Salmond, which will have Scotland generating 100 percent of its energy from renewable resources by the year 2020. “What will happen,” Wallace said, “is that we will produce a lot more energy than we actually use as a country. The plan is to have 200 percent generation by 2020, with half of that coming from renewables. That’s what we’re aiming for.”

So far, advances to that end have exceeded expectation and have left little doubt that the deadline will be met, quite possibly even ahead of schedule. As of 2011, Scotland had achieved 35 percent renewable energy installed capacity, blasting past a previously stated target of 31 percent. This year, a new interim goal of 50 percent sustainability was established by First Minister Salmond, with a deadline set of 2015.

Meanwhile, across the pond in the United States, the viability of wind power has come into question as Washington lawmakers have yet to act on extending the wind energy Production Tax Credit prior to its expiration on December 31. According to Wallace, it’s this kind of political uncertainty that has the potential to stall otherwise profitable industries. “I think it’s very much about certainty,” Wallace said, “I think it’s about the government giving comfort that the market will be there, and saying ‘We’re not going to pull the rug out from under you’.”

Back in Scotland, where hydropower and tidal power generation are just as popular as offshore wind, things continue to move along at a steady clip – although the contract between Areva and Scottish Enterprise is not likely to create jobs overnight. Wallace says timeframes for the manufacturing and installation of the wind turbines are approximately a year or two out, with 2014 and 2015 looking like realistic dates.

Lead image: Digital Image of an Offshore Wind Turbine via Shutterstock

13 Comments

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Gerry Wootton
Gerry Wootton
December 6, 2012
There's always a hidden cost to reliance on imported energy. Imported NG is offset by exported cash which has to be offset by exports. This can only be of net economic benefit when the use of energy produces export commodities of equal or greater value. The UK is a net importer of NG including pipelines from Norway, Belgium and Holland as well as substantial LNG imports from the middle east. For the UK to rely on NG challenges its balance of trade, exposes it to cost volatility and uncertainty of supply. In the recent past, NG imports were constrained by European countries applying a 'me first' approach to managing NG supplies impairing UK supply - expect that to happen every time there is a dip in supply or a surge in demand in Europe. If the UK becomes totally hooked on NG, it cedes control of energy prices to Russia and Saudi Arabia. Recently UK electricity prices took a significant jump based on NG price increases. One can be easily deceived: NG power generators go up fast and, partly due to their dispatchability, have a relatively short ROI so entrepreneurs can use them to capitalize on relatively short term dips in NG pricing. Recently, NG accounted for 32% of U.K. power production, coal generated 44%, nuclear 16% and wind 3.1%. One can expect that if coal power were replaced with the same mix of alternatives,57% of generation would be NG driving up NG prices and making the UK electricity market less stable.
tom clark
tom clark
December 5, 2012
Right on Ivor - Salmond is out of his mind - but hey, it's not his money he is throwing around.
Ivor Ward
Ivor Ward
December 5, 2012
Now let me get this straight. Scotland are going to produce twice as much electricity as they need by 2020 at three times the price of gas generation. Meanwhile Osbourne over the border is building 26 new gas plants to generate 26Gwe in England. See announcement due to be made today. So where exactly is the 100% of excess electricity going to go. England are certainly not going to buy it. France exports nuclear power. How will Scotland fulfill its contracts when the wind drops as it does for considerable periods? Has Salmond finally found the site of Summer Island? Lets also look at the wisdom of starting a turbine manufacturing facility shortly after Vestas has been baled out to the tune of $650 million and the Chinese have reduced production. If you have Government quangos guiding your investments you deserve the subsequent train wreck. Burning the Occasional Wicker man on a headland is no substitute for a coherent policy on energy. The last Wallace to have any influence in Scotland led a disaster and it would appear that this one will too. Just to remind you, 20000 jobs is not a bonus on a power industry it is a liability. It makes the source material (electricity) excessively expensive for the consumer and drives them into the arms of the gas generator over the border.
Ronald "Ron" SK Mitchell
Ronald "Ron" SK Mitchell
December 4, 2012
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DANIEL MARTIN-RIOS
DANIEL MARTIN-RIOS
December 4, 2012
Great news for Scotland which thanks to WIND and TIDAL POWER GENERATION is planning to be a net exporter of electricity!
Also ,they are benefiting of manufacturing for those power plants located in that country!
DANIEL MARTIN-RIOS
DANIEL MARTIN-RIOS
December 4, 2012
In defense of Ronald ,and logical common knowledge,the kind that allow diferent people to comunicate,USA is a country ,self governing and internationally recognized ,Scotland might as well be like that if the 2014 referendum wins
He is right to point out the use of ''country'' is wrong in common sense English
tom clark
tom clark
November 29, 2012
ASK THE PEOPLE OF RURAL SCOTLAND WHAT THEY THINK ABOUT WIND TURBINES ETC - I WAS THERE AND APART FROM A FEW NAIVE KIDS I SAW NO SUPPORT FOR THIS TRAVESTY.
Richard Pfifferling
Richard Pfifferling
November 29, 2012
I believe that the use of the word 'country' is widely accepted, and in this context, really more about looking at a globe , and drawing a line around 'x' square kilometers and saying, renewable energy works in this geographic, cultural and political area... I know little about the history of Scotland, but do know that www.scotland.org bills itewslf as 'The official gateway to Scotland' and they constantly use the word 'country.' http://www.scotland.org/about-scotland/scottish-history This seems to happen lot in comment sections, where the core story is abandoned, and endless threads of functionally unrelated debate take over. There are many words that are technically incorrect. If a person says, 'America is off track in its energy program,' do you reply, 'Which country, is it in North America or South America?' If they say (with a bit of an incredulous expression...)'The United States of America' ... do you reply 'That is actually a confederation of states, and challenge the use of the word 'country?' ... and on and on. The point of this article is the Scotland is a shining example of having a vision, executing on it, and showing the world that green energy is economically feasible, and is a benefit on the micro, macro and global scale. I say, well done Scotland! You are an inspiration to the world and more people need to understand how you not only are on track to fossil fuel independence, but are ahead of schedule! Thank you Vince Font, for a well written article where I learned a lot in a short amount of time, and am inspired to learn more about Scotland's renewable programs. (Apologies that after making a revision to correct a typo, the formatting is lost, and no longer supports the proper spacing between paragraphs, and results in a long run on format)
Ronald STEENBLIK
Ronald STEENBLIK
November 27, 2012
@Lockwood-Chet,

I work with many Scots, so I know full well the growing sentiment for independence. All power to them: I have no dog in this fight.

My point, though, is that journalists should stick to the facts. And the fact is still that Scotland is not yet a sovereign "country".
CHET LOCKWOOD
CHET LOCKWOOD
November 26, 2012
Technically yes, Scotland is part of the U.K., but to get a real feel for it I suggest you go to Edinburgh and ask around for opinions. The referendum on Scottish Independence is agreed to and will occur in 2014. I would expect them to become an indepedent Nation State but remain part of the Commonwealth.
Ronald STEENBLIK
Ronald STEENBLIK
November 23, 2012
The view may be different but the law is what it is. Scotland has not left the United Kingdom yet!
Gerry Wootton
Gerry Wootton
November 23, 2012
@ronald-steenblik: BBC Scotland recently produced a history of Scotland series which you can find on North American public broadcasting channels. The view from inside Scotland seems to differ from what you are saying.
Ronald STEENBLIK
Ronald STEENBLIK
November 23, 2012
There is no "country of Scotland", or at least not yet. While it enjoys considerable autonomy, it is still part of the United Kingdom. Scotland can and is often called a "nation", however -- i.e., a tightly-knit group of people who share a common culture.

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Vince Font

Vince Font

Vince Font is a professional freelance writer specializing in the fields of renewable energy, high tech, travel, and entertainment. Read his blog at www.vincefont.com or follow him on Twitter @vincefont.
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