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news20100329gdn

2010-03-29 14:55:15 | Weblog
[News] from [guardian.co.uk]

[Business > Energy industry]
European energy agency could form super-regulator
{欧州エネルギー機関、超監督機関の設置を企図}


> Slovenia-based energy agency to start with 50 staff
{スロベニヤに本拠を置くエネルギー機関、50人体制で立ち上げ}
> European regulator seen as essential to push green energy
{欧州の監督機関、グリーンエネルギーの推進に不可欠と判断}

Terry Macalister
The Guardian, Monday 29 March 2010
Article history

{{A European authority is seen as essential to push a green energy agenda and possibly the creation of a European 'super grid'.}
{Photograph}: Christopher Thomond}

Brussels is pressing ahead with plans to establish an energy agency which is seen as a prototype European regulator. The body could eventually restrict national policymaking but could also give important impetus to North Sea wind power and developing a European "supergrid".

The European commission says it expects the Agency for the Cooperation of Energy Regulators to open for business by March next year.

"There is a degree of hope that the work of the agency, while not being a European regulator as such, will get the commitment of national regulators such as Ofgem in the UK … [and] if it is successful then it will become the European regulator," said Philip Lowe, the EC's new director general for energy, in an exclusive interview.

The agency is to be based initially in Ljubljana, the capital of Slovenia, and will have a staff of about 50, he said. The choice of location has raised eyebrows but Lowe said the agency should be judged on its work, not its whereabouts.

The idea of energy being regulated by Brussels remains a highly charged political issue but members of the European Union are increasingly accepting the need for more international cooperation and integration to achieve energy security and combat climate change.

Britain and other countries are keen to develop a huge network of offshore wind farms but realise they may need to deal with the problem of intermittent power by importing electricity generated from hydro or other power sources through an international supergrid of interconnected networks.

Lowe says European Union member states have so far balked at giving up national sovereignty in energy regulation and their future acceptance of such an idea would be vital before a fully fledged European regulator was put in place.

Under the direction of his boss, European energy commissioner Günther Oettinger, he is convinced countries must work more closely together. New bilateral arrangements between countries and regulators are in place to allow power to move through international pipelines.

"Although in energy as much as any other area of European life, people talk about sovereignty a lot the reality is that all this (putting together of energy grids and other integration) does not work unless there is an acceptance that there are some things best done at European level, some best done at national level and some at local level."

The British-born bureaucrat says it's a matter of who is best placed to review any particular aspect of work.

"It is no use asking the European commission to investigate whether Tesco or Morrisons are competing in a certain area. National authorities know far more about land use and planning … but then if you are to deal with a company of the clout of Microsoft then it is something best dealt with here."

Lowe is happy to make comparisons with competition issues because he has just switched from the competition to the energy directorate.

Some UK groups, such as British Gas, could be suspicious of the new energy director given their criticism of the way Continental markets have been allowed to be dominated by very large, often partly-state-run groups, such as EDF of France.

Lowe dismisses the criticism, pointing out that he and his former competition commissioner boss, Neelie Kroes, investigated these market failures and laid out the steps that needed to be taken. "The accusation we did not do anything is totally wrong," he said, pointing out that anti-trust legal action continues against various large Continental utilities today.


[Business > Energy industry]
Siemens to build UK wind turbine plant
{シーメンス社、英国で風力タービンプラントを建造計画発表}


> £75m wind turbine plant will create hundreds of jobs
{7,500万ポンドの風力タービンプラントにより数百人の仕事が創出}
> Wind power boost to government's green hopes
{風力発電は政府のグリーン政策を後押し}

Terry Macalister
The Guardian, Monday 29 March 2010
Article history

{{The Siemens wind turbine plant will boost Britain's green energy plans.}
{Photograph}: Christopher Furlong/Getty Images}

The government will receive another boost to its green manufacturing momentum this week when Siemens of Germany announces plans to create hundreds of jobs in Britain and invest more than £75m in a new wind turbine plant.

The move comes despite claims made today by the EEF, the manufacturers' organisation, that the UK tax system is still stacked against manufacturing and needs a shake-up if the economy is to become less geared towards financial services.

The Siemens factory has particular significance because it shows Britain can beat off competition from Denmark and Germany to house a plant capable of making a new generation of extra-large blades.

The facility will demonstrate, too, that Britain can be at the centre of the German manufacturer's worldwide wind ambitions, because Siemens already has a wind power training centre in Newcastle upon Tyne and a global centre for offshore grid connections in Manchester. It is also sponsoring significant research work into renewables at Sheffield and Keele universities.

Siemens declined to comment ahead of an announcement but well placed sources said that a deal had been struck at the highest possible level of government for the company to locate a facility in Britain, probably on the east coast of England.

The decision comes after months of talks – including meetings at 10 Downing Street with the Siemens president, Peter Löscher – and is believed to have been finalised as a result of an important change in the budget last week, which brought public grants for ports to build green manufacturing hubs around them.

The Siemens facility is expected to create 700 direct jobs and perhaps as many as 1,500 more in the supply chain. The plans will be announced only days after GE, the American conglomerate, announced a similar initiative in Britain, with investment of £100m, creating 2,000 jobs.

Mitsubishi of Japan and Clipper Windpower of the US have also announced schemes to make bigger and better blades that could bring down the cost of producing wind offshore.

Big utilities such as E.ON and RWE have won acreage under the Round Three (R3) licensing scheme to develop wind farms many miles off the coast of Britain. But some have warned that the economics remain fragile, given the deep water levels and other factors involved, unless development costs can be driven down.

Alistair Darling announced £60m worth of grants in the budget to develop onshore manufacturing around dock areas, as well as a plan to create a green investment bank that would be capable of taking equity stakes in R3 schemes.

Some of these financial incentives seem to have been enough to persuade Siemens to build in Britain, going some way towards repairing the damage done by Vestas' decision to close the UK's only functioning wind turbine factory last summer in the Isle of Wight. There has also been dismay that 90% of the supply contracts for Britain's biggest offshore wind farm, the London Array, went abroad, many of them to Siemens in Germany and Denmark.

The British wind power industry has estimated that eventually 70,000 green-collar jobs could be created on the back of more than £100bn of private sector investment needed under R3 proposals.

But the report out today from the EEF, entitled "Tax reform for a balanced economy", says that for UK manufacturing to succeed in the future, a range of reforms to the system of investment allowances will be needed. The engineering sector also wants a cut in corporation tax, an increase in VAT and a return of the top rate of income tax to 40p.

The EEF warns that failure to tackle the tax system will stop the economy from being rebalanced away from the City and encourage companies to move overseas.

"While there have been some helpful changes to the tax regime in recent years, we still lack a coherent tax system that encourages manufacturers to invest and sends the signal that they should be doing it here," the EEF's director of policy, Steve Radley, said.

"The next government must think and act differently. In particular, it can achieve much larger benefits from any new measures if its approach is more predictable and transparent."

news20100329reut1

2010-03-29 05:55:24 | Weblog
[Top News] from [REUTERS]

[Environment News]
[Green Business]
Tyra Dempster
BEIJING
Sun Mar 28, 2010 5:02pm EDT
Mongolia winter kills herds, devastating the poorest
{モンゴルの厳冬で多数の家畜が凍死、最貧者に大打撃}


(Reuters) - A severe winter has left 4.5 million dead animals in stockyards across the Mongolian steppes, and many poor herders face the loss of all their property just before the important breeding season.


About a tenth of Mongolia's livestock may have perished, as deep snows cut off access to grazing and fodder.

The damage to the rural economy could increase demands on Mongolia's already-stretched national budget, which relies on mining revenues to meet spending commitments.

The Red Cross launched an emergency appeal for 1 million Swiss francs to assist Mongolian herders, after it estimated that 4.5 million livestock have died in the country since December.

"The numbers of livestock that have perished have gone up very, very quickly and dramatically now to about 4 million which is roughly a tenth of the whole livestock population," Francis Markus, communications director for the Red Cross' East Asia delegation, said in Beijing after returning from Mongolia.

"This means that thousands of families, mostly coming from the poorest and most vulnerable layers of the herder population, have lost their entire flocks of animals and have been left in a very, very distraught and very, very desperate state."

Roughly one-quarter of Mongolia's 3 million people are nomads, while others also raise livestock in fixed settlements. Many go deeply in debt to buy and raise their herds, in hopes of making the money back by selling wool, meat and skins.

A similar combination of a summer drought, followed by heavy snow and low winter temperatures, which is known in Mongolian as a 'zud', caused widespread hardship in Mongolia a decade ago.

As a result, impoverished herder families flocked to the slums outside the capital, Ulan Bator, straining the city's ability to provide basic services.

"The herding community's situation is very hard now. The best off are those who still have around 40 percent of their livestock left and in the worst 50 cases are those who have lost absolutely everything," said Zevgee, speaker of the county parliament in Bayangol, southwest of the capital.

This zud was the worst for several years, with temperatures dropping to 40 degrees Celsius below zero or colder in 19 of Mongolia's 21 provinces, according to a World Bank report.

Around 63 percent of Mongolia's rural residents' assets are their livestock, it said, and at least 35 percent of the population earn a living from their animals.

Herder Tsendjav said that she had no option but to rely on the government and aid to survive the weather.

"I have seen many zuds that have caused the loss of numerous animals but I have never seen a zud as bad as this one," she said at a Red Cross aid dispensary.

(Writing by Lucy Hornby; Editing by Sugita Katyal)


[Green Business]
[Green Business]
LONDON
Sun Mar 28, 2010 9:57pm EDT
Siemens to build wind plant off British coast: report
{シーメンス社、イギリスでオフコースト風力発電プラントを計画:報道}


(Reuters) - Siemens is set to unveil plans to invest more than 75 million pounds ($111.3 million) in a wind turbine plant off the coast of Britain, the Guardian reported on Monday, citing unnamed sources.


The German conglomerate said last year it would invest tens of millions of euros building an offshore wind turbine assembly plant in the North Sea region and had considered sites in Germany and Denmark, as well as Britain.

The paper said the firm had agreed a deal with senior government officials to locate a plant off the east coast of Britain, creating about 700 jobs.

No one at Siemens UK could immediately be reached for comment.

Last week, the British government laid out plans for a one billion pound green investment bank, to help finance investment in low carbon power, including wind farms.

(Reporting by Caroline Copley; Editing by Marguerita Choy)


[Green Business]
Chang-Ran Kim, Asia autos correspondent
TOKYO
Mon Mar 29, 2010 4:11am EDT
Toyota, Mazda to hold joint briefing on green tech
{トヨタとマツダ、グリーンテクで共同会見}


(Reuters) - Toyota Motor Corp and Mazda Motor Corp said they would hold a joint news conference in Tokyo on Monday to announce what many expect to be a supply deal for Toyota's industry-leading hybrid system.


Japan's No.1 and No.5 carmakers have been discussing the possibility behind the scenes since at least mid-2009 as the popularity of gasoline-electric cars surged in Japan with the help of generous government subsidies.

Toyota Executive Vice President Takeshi Uchiyamada and Mazda Executive Vice President Masaharu Yamaki will brief the media at the 5:40 p.m. (0840 GMT) news conference, the two companies said.

Hybrid cars, which improve fuel efficiency by twinning internal combustion engines with electric motors, are seen as crucial for automakers to boost sales in coming years as governments introduce stricter environmental regulations.

Gasoline-electric cars have enjoyed a burst of demand especially in Japan over the last year as the government introduced an exemption on certain taxes on gasoline-electric and other next-generation vehicles for a three-year period.

An agreement between Toyota and Mazda would underscore the growing need for smaller carmakers to find partners to fill the technology gap without draining their limited resources. Among others, archrivals Daimler AG and BMW AG are also working together on hybrid development.

DISTANCING FORD

A Toyota-Mazda pairing would also highlight a distancing of Mazda from top shareholder Ford Motor Co, which is among the few automakers today with a proprietary hybrid system after it initially licensed some technology from Toyota.

Ford and Mazda continue to share some vehicle platforms and operate joint factories, but insiders have said relations have cooled to match the U.S. automaker's diminished stake in the Hiroshima-based automaker, from a controlling 33.4 percent.

Ford sold in late 2008 all but 13 percent of its Mazda stake, which was further diluted to 11 percent when the latter issued $1 billion in new shares to raise money to invest in hybrid and other technologies.

Toyota, a pioneer in hybrid technology with at least a 12-year lead on most rivals, currently supplies its hybrid system to Nissan Motor Co, which uses it in its Altima sedan for the U.S. market to clear regulations there. Nissan plans to switch to its own hybrid system with a new model later this year.

A fresh deal to supply Mazda would also be a boon for Toyota affiliates Denso Corp and Aisin Seiki Co, which are among Toyota's key hybrid suppliers.

Mazda, the maker of the Mazda6/Atenza and other sporty cars, has a goal of raising its fleet's fuel economy by 30 percent mainly by improving its internal combustion engines by 2015.

It had planned to gradually add electric components such as hybrid systems beyond 2015 to meet tightening regulations.

news20100329reut2

2010-03-29 05:44:38 | Weblog
[Top News] from [REUTERS]

[Green Business]
COPENHAGEN
Mon Mar 29, 2010 4:09am EDT
China became top wind power market in 2009: consultant
{中国、2009年度風力発電市場で世界No.1 : コンサルタント}


(Reuters) - China became the No. 1 wind turbine market in 2009, installing a record 13.75 gigawatts (GW) of new capacity, and three Chinese suppliers ranked among the Top-10 turbine manufacturers, Danish consultants BTM said.


"The most significant trend in the market was the booming Chinese wind industry," BTM Consult said in a summary of its annual wind power market review for paying subscribers.

China's new capacity accounted for more than a third of the world's total new wind energy capacity of 38 GW last year, which was a record despite the financial crisis, BTM Consult said.

"China emerged as by far and away the most successful market, installing ... the highest volume ever by one country in a single year," BTM said.

The global market for wind power capacity is expected to nearly triple in the next five years to 447 gigawatts (GW) and could expand to almost 1,000 GW within 10 years, BTM said.

"Wind power will deliver 1.6 percent of the world's electricity in 2010," BTM said. "By 2019, ten years away, wind power could meet 8.4 percent of the world's consumption of electricity."

The most significant change in the supply market in 2009 was the strong growth of Chinese wind turbine manufacturers, three of which were among the Top-10 suppliers.

China's Sinovel grabbed the No. 3 spot among wind turbine makers, rival Chinese manufacturer Goldwind ranked No. 5, and Dongfang was No. 7, BTM said.

It did not give their previous ranking, but Sinovel and Goldwind joined the Top-10 in 2008, while Dongfang had been among the Top-15 that year.

Denmark's Vestas Wind Systems retained its position as the world's leading wind turbine manufacturer with a 12.5 percent market share, but U.S. conglomerate GE was virtually tied with Vestas with a 12.4 percent share, BTM said.

Germany's Enercon was fourth, Spain's Gamesa sixth, India's Suzlon eighth, Germany's Siemens ninth and German REpower No. 10, BTM said.

TOP-10 WIND TURBINE SUPPLIERS IN 2009 (ACCORDING TO BTM):

Rank Company Country Percentage of global market
1) Vestas Denmark 12.5
2) GE U.S. 12.4
3) Sinovel China 9.2
4) Enercon Germany 8.5
5) Goldwind China 7.2
6) Gamesa Spain 6.7
7) Dongfang China 6.5
8) Suzlon India 6.4
9) Siemens Germany 5.9
10) RePower Germany 3.4
Others 18.5

BTM Consult's market report followed a similar ranking list earlier this month from rival Danish consultancy MAKE, which also put Vestas first, Sinovel third and Goldwind fifth.

(Reporting by John Acher; Editing by Sharon Lindores)


[Green Business]
Risa Maeda
TOKYO
Mon Mar 29, 2010 9:57am EDT
Japan buys 41.5 mln tonnes Kyoto credits in 2009-10
{日本、京都議定書2009-10年度分の炭素排出量4150万トンを買い付け}


(Reuters) - The Japanese government bought 41.5 million tonnes of Kyoto carbon credits in the fiscal year ending this month, a government source said, putting it in sight of its goal for the 2008-2012 Kyoto Protocol period.


The purchase during fiscal 2009/2010, which ends on Wednesday, included 40 million tonnes of sovereign emissions rights called Assigned Amount Units (AAUs) from the Czech Republic and 1.5 million tonnes from Latvia, and no other types of Kyoto credits, the source said.

Japan has now purchased a total 96.6 million tonnes of carbon credits for delivery over the five-year term, near its target of 100 million tonnes.

But in a slight setback, it will not receive 1.2 million tonnes of that 96.6 million tonnes due to lack of delivery from three emissions-cutting projects abroad, the government source said.

As a result, Japan will still have to buy some 4.6 million tonnes of carbon credits from abroad to meet its goal for the five-year period.

Japan's government and companies have been the biggest buyers of Kyoto carbon credits outside Europe to supplement their domestic emissions-cutting efforts.

In the three years to fiscal 2008/2009, Japan had bought a total 25.1 million tonnes of project-based Kyoto carbon credits, or certified emissions reductions (CERs), as well as 30 million tonnes of AAUs from Ukraine.

Of the 25.1 million tonnes, Japan failed to receive delivery of a total 1.2 million tonnes from the three clean energy projects, including a wind power project in China.

Early investment in emissions-cutting projects in developing countries often yield carbon credits that are cheaper than buying them from the market.

But risks include project cancellation, a rejection of projects by a U.N climate panel or lower than expected emissions reduction.

(Editing by Michael Urquhart)


[Green Business]
[Deals]
LONDON
Mon Mar 29, 2010 9:54am EDT
Tricorona's board rejects Opcon takeover offer
{トリコロナ社、オプコン社の買収の申し入れを拒絶}


(Reuters) - Clean energy project developer Tricorona's board of directors on Monday recommended its shareholders reject a takeover offer from Swedish energy and environmental company Opcon AB.


Opcon last month offered to buy Tricorona in an all-share deal valuing the Stockholm-based firm at just over 1 billion Swedish crowns ($138 million).

Opcon is offering one Opcon share for every 6.5 Tricorona shares.

Tricorona shares were up 1.4 percent at 7.2 crowns at 1330 GMT while Opcon shares fell by 1.20 percent to 46.6 crowns.

Tricorona's board said in a statement it strongly believes the firm can continue to generate value for shareholders as an independent entity and has not identified any synergies between the companies that cannot be found in an increased partnership with Opcon.

"(The board) does not believe that the offer reflects the underlying value of Tricorona," it added.

The offer is conditional on shareholders representing at least 30 percent of Tricorona's shares accepting the bid.

The acceptance period runs from March 23 to April 13.

($1=7.235 Swedish crowns)

(Reporting by Michael Szabo; Editing by Greg Mahlich)


[Green Business]
David Fogarty
SINGAPORE
Mon Mar 29, 2010 8:52am EDT
Gazprom ramps up Asian energy trade presence
{ガスプロム社、アジアのエネルギー取り引き参列に意欲}


(Reuters) - Russia's Gazprom is ramping up its presence in Asia to trade liquefied natural gas, oil and source carbon offsets, as one of the world's biggest energy players seeks to tap the fastest-growing region.


Gazprom formally launched its first commercial office in the Asia-Pacific on Monday.

The Singapore office plans to have more than 30 staff by year end, up to 8 of them developing carbon offset projects and sourcing carbon credits, Arthur Tait, managing director of Gazprom's marketing and trading office in Singapore, said in an interview.

Tait also said the firm was not looking to sign additional long-term LNG supply contracts for the moment and that there was enough flexibility in production at Gazprom's Sakhalin-2 plant to be able to sell about three spot LNG cargoes per month.

"At the moment we have enough of a proportion on long-term deals," he said, adding it was easy to sell any excess production on the spot market in Asia. "We've started to sell a few cargoes into India and China," he said.

The plant operated by Sakhalin Energy is on the southern tip of the Pacific island of Sakhalin, a two-day voyage from Tokyo. Its two processing trains combined have capacity to produce 9.6 million tonnes per year of LNG.

Sakhalin Energy is majority owned by Gazprom. Shell retains a minority stake, along with Japan's Mitsui and Co and Mitsubishi Corp.

The company sells much of the output to Japan and South Korea on long-term contracts. It also has a supply contract with Mexico that contains flexible options, meaning the company can decide when it wants to sell cargoes to that country, Tait said.

CHINA HOPES

While India was potentially a big buyer given the burgeoning demand for electricity there, Tait thought China was a better option as a spot cargo customer given the global slump in gas prices.

"I would see a lot of demand coming from China," he said, adding he thought it was realistic for Chinese power generators to switch to gas from dirtier coal at current prices.

For the moment he saw no point in trying to sell LNG cargoes to the United States.

"We've got the facility to put them into the U.S. but it's a little while off before that's viable."

He said Singapore was a good regional base for LNG trading and sourcing carbon offsets from U.N.-backed clean-energy projects. The offsets could be sold to big polluting firms in Europe or Japan to help meet mandatory emissions reductions targets.

"Singapore is becoming a bit of center for LNG trading. Quite a few of our competitors and customers are based here," he said.

"By the end of the year we should have around 30 to 34 staff across all the products -- LNG trading, carbon, oil trading, FX trading and back-office functions," he said.

(Editing by James Jukwey)

news20100329reut3

2010-03-29 05:33:11 | Weblog
[Top News] from [REUTERS]

[Green Business]
Alister Doyle, Environment Correspondent
OSLO
Mon Mar 29, 2010 9:56am EDT
Offshore wind turbines may be 10 MW giants: Veritas
{オフショア風力タービン、10MWに巨大化可能 :ベリタス社}


(Reuters) - A surge in sea-based wind farms is likely to mean bigger turbines than on land, reaching 10 megawatts by 2020 with blades 85 meters (280 ft) long, the head of Norway's Det Norske Veritas said on Monday.


Veritas, which tests wind turbines until they snap as part of certification, reckons the industry will need subsidies for years since costs are about 40 to 60 percent above those for land-based wind, Chief Executive Henrik Madsen told Reuters.

A private foundation, Veritas certifies about 75 percent of offshore wind turbines, except Chinese, he said. Veritas says it and Germany's Germanischer Lloyd are the main groups setting industry standards.

A planned boom so far centered on Britain and the North Sea, part of efforts to slow climate change, was likely to mean bigger turbines offshore than on land.

"They can be larger. It's easier to transport (turbines) on ships and install them," he said. On land, heavy cranes and blades often have to be driven along narrow lanes to a remote hilltop, complicating transport.

"We believe you will see larger turbines up to 10 megawatts" offshore, he said. A 10 megawatt turbine would be enough to provide electricity to between 2,250 and 3,000 U.S. households, according to the American Wind Energy Association.

"There's huge potential," Madsen said about offshore wind. Big turbines now have about a 5 MW capacity.

100 METRES

A 10 MW turbine would have blades perhaps 85 meters (280 ft) long, giving a 170-meter diameter for a three-blade turbine, he said. The longest blades tested by Veritas at a center with partners in Denmark so far has been 71 meters long.

"We thought of building (the test center) to 100 meters but we decided 85 would do it for the next 15 years," he said.

Among makers of big turbines, Germany's Enercon says its E-126, rated at 6 MW and with a 127-meter rotor diameter, can operate at 7.5 MW. Clipper Windpower is working on a 10 MW turbine and Norway's Sway a 10 MW floating prototype.

Turbine designs and sizes vary widely -- carbon fiber is stronger than glass fiber, for instance, but more vulnerable to lightning. Blades are tested to breaking point.

"These blades are extremely flexible, so we need a lot of space. There can be a 10-12 meters deflection until they snap," he said.

Offshore costs are higher than on land because of problems such as salt corrosion, complex maintenance and linking to the grid. But winds blow more offshore, fewer people complain that turbines are eyesores and larger turbines earn more money.

The price gap between land and offshore was likely to narrow but "I'm not sure it will come all the way down," he said.

"We believe you will need subsidies, but we also believe that there is a significant potential to drive costs down, in particular related to offshore installations and foundations," he said. And companies can learn from decades of experience from the offshore oil and gas industry.

Top turbine makers in terms of 2009 market share were Denmark's Vestas, ahead of U.S. General Electric, China's Sinovel, Enercon, China's Goldwind, Germany's Siemens, Spain's Gamesa and India's Suzlon, according to Denmark's MAKE consultancy.

At the end of 2009, the World Wind Energy Association said wind farms were installed in the sea off 10 European nations and off China and Japan.

Installed capacity offshore amounted to almost 2 gigawatts, or 1.2 percent of world wind capacity. Britain has granted licenses for 32 gigawatts of offshore wind, part of a European Union drive to get 20 percent of energy from renewables.

For Reuters latest environment blogs, click on: blogs.reuters.com/environment/

(Editing by Sue Thomas)


[Green Business]
Barbara Lewis - Analysis
DUBLIN
Mon Mar 29, 2010 8:41am EDT
Ireland's green dreams need work, can be reality
{アイルランドのグリーン化構想、現段階では仕事が必要}


(Reuters) - Ireland's ambition to shift from being 90 percent dependent on imported fossil fuel to a major user of renewables should be achievable as its urgent need for jobs helps focus politicians on overcoming planning hurdles.


Its location on the western edge of Europe, at the end of the energy supply chain, gives Ireland further incentive to go green.

The government, which includes the Green Party as a junior coalition partner, says it can meet an EU deadline for 16 percent of all its energy to come from renewables by 2020, and could even exceed it.

It has also set itself a goal to draw some 40 percent of electricity from renewables by then.

"We have doubled our renewable energy. We can double it and double it again," Eamon Ryan, Ireland's minister for communications, energy and natural resources, told the Green Party conference in Waterford, southern Ireland, at the weekend.

"It is the perfect answer to the recessionary blues."

The goals require adding roughly 6,000 megawatts (MW) of renewable energy, mostly from wind power, to the approximately 6,000 MW currently derived from conventional sources, according to industry estimates.

Siemens Ireland, a unit of German industrial conglomerate Siemens, which has been involved in renewables in Ireland since the construction of the hydroelectric power station in Shannon, western Ireland, in 1926, sees "a fair chance" of delivering on schedule.

"I am convinced we will get there. The only question mark is will we be fast enough to make the targets? I always go for speed, speed, speed," Werner Kruckow, CEO of Siemens Ireland, told Reuters.

"Unfortunately I see hurdles, especially in the public sector, which should not be there."

Those hurdles include sluggish planning processes and a weak grid, connected to Britain only via Northern Ireland, although an interconnector directly from Ireland to Britain is being built.

"Putting this much wind in Ireland is not going to be easy. It's going to need an enormous amount of change to the electricity network," said Aidan Forde, director of Saorgus Energy Limited, which specializes in developing large wind energy sites in Ireland.

"In rough terms, we're trying to double generation capacity and we already have a very weak grid. Ireland's an extreme example of what's going on in Europe. It would have a very, very high penetration of renewables. These are the aims."

In favor of their being achieved, he cited an energy minister who was "a strategic thinker" in that he appreciated fossil fuels were only cheaper in the short term.

SO FAR, SO GOOD

The green optimists say there already has been far more progress than doubters expected and so far Ireland is on course, with 15 percent of its electricity generated by renewables.

Even the country's overwhelming financial problems should not distract the government from a strong commitment to renewable energy, they say.

On the contrary, they highlight the need to redeploy the thousands of unemployed, for instance from the construction industry, in green jobs, as well as to establish a hedge against volatile oil and gas prices and to play to Ireland's established strength as a smart economy.

"It's strategic rather than ideological," said Brian Motherway, chief operations officer at the Sustainable Energy Authority of Ireland, which reports to the Department of Energy.

"It's also about developing an enterprise center. We want to export expertise," he said. "I think there's very strong government commitment to that and the smart economy. It's about leading in what Ireland is good at."

Asked about planning, he said enough projects would be approved, arguing: "What's in the queue for approval is way above what is required."

Ireland has huge natural potential to export renewable power as well as to generate it for its own needs and has around 10 times as much ocean space as land to accommodate offshore wind plants and eventually marine energy.

For now, onshore and increasingly offshore wind, with five offshore projects in the pipeline, are the most obvious providers, but advocates of marine energy say technology will eventually harness Ireland's huge wave potential.

Peter Coyle, chairman of the Marine Renewables Industry Association, said Ireland could be at the vanguard of marine energy and provide some 500 MW of power by 2020.

That 500 MW would cost around a billion euros ($1.33 billion), but as with wind, the initial investment is the major one. After that the energy cost would be predictable.

"The financing is of course of great importance, but it is not the most immediate issue. The most important issues are technology," said Coyle, who was confident utilities and banks would back investment once the technology were proven, as they have with wind.

"There is a lot of work to be done, but there is a lot of impetus behind it."