Offshore Wind Farms a White Elephant?

Although the wind turbine industry continues to surge, the availability of construction commodities is steadily plunging. The economic viability of sea-based wind farms has been hindered by the decreased availability (thus rising prices) of:

+Steel, aluminum, and copper
+Construction vessels (such as The Resolution in Lincolnshire, depicted to the right)
+High-voltage cables needed to link wind parks to the electricity grid
+Cranes
+Sea-bed platforms

This combination of material shortages and rising costs has delayed the European Union's $120 billion investment in offshore wind turbine projects--including the London Array. The proposed London Array, which was intended to supply enough energy for approximately 25% of London's homes, would have consisted of 341 wind turbines located on Britain's southeast coast.

According to the Danish wind power consultant BTM Consult APS, "The price of offshore turbines rose 48 percent to 2.23 million euros ($3.45 million) per megawatt in the past three years." Since land-based turbines require less installation materials, onshore turbines are becoming the reality of wind energy industry's future. Comparatively, "land-based rotors cost 1.38 million euros per megawatt after rising 74 percent in the same period."

Despite this bleak outlook of wind energy's future, the steadily rising demand for turbine construction may encourage industrial companies to focus on the emerging wind energy industry. A boom in industry will allow the supply to become more compatible with demand, thereby reducing costs and securing the stability of the wind energy industry's future.

More at Bloomberg.com

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