THE ENERGY INDUSTRY TIMES - OCTOBER 2016 4 Americas News Offshore wind strategy targets 86 GW Siân Crampsie The US government has called for major investment in the offshore wind energy sector to enable the installation of 86 GW of new capacity. The Obama Administration has published the National Offshore Wind Strategy, outlining plans for supporting the construction of offshore wind farms over the next five years. The strategy is a key part of President Barack Obama’s Climate Action Plan, and follows the publication of the Wind Vision roadmap in 2015 by the Department of Energy (DOE). That document indicated that the country could reach 86 GW of installed capacity by 2050. The USA’s first offshore wind farm, at Block Island, Massachusetts, has just been completed. The US government believes that this 30 MW project will not only prove the viability of offshore wind in the USA, but also inform future projects. The National Offshore Wind Strategy details the current status of offshore wind in the USA, and outlines plans for reducing deployment costs and timelines. “The collaborative strategic plan is part of a long-term commitment to support innovation that enables widespread offshore wind deployment and shows how offshore wind will benefit our country with new jobs, less pollution, and a more diversified electricity mix,” US Energy Secretary Ernest Moniz said in a statement. The strategy outlines 30 specific actions that DOE and the Department of the Interior (DOI) can take over the next five years to address key challenges facing the industry. The actions will be implemented in three strategic areas such as reducing technical costs and risks; supporting effective stewardship; and improving the market conditions for investment in offshore wind energy. Data from the US Energy Information Administration (EIA) shows that renewable energy is continuing to grow in the USA, largely thanks to the construction of new, large-scale solar and wind projects. EIA believes that non-hydro renewable energy will increase to over ten per cent of electric generation in the US next year, and to triple by 2020, from 4.2 per cent in 2010. Electricity generation in the US has gone down 2.5 per cent this year, with coal-fired power down 20 per cent, while wind and solar power have increased by 23 per cent and 31 per cent respectively, EIA reported in August. Attitudes towards renewable energy and climate change are also changing, according to a new survey. The Energy Policy Institute at the University of Chicago (EPIC) and The Associated Press-NORC Center for Public Affairs Research conducted a new survey on the willingness of Americans to pay for government policies aiming at tackling climate change, and found that 65 per cent of Americans believe climate change should be addressed by the government. The survey also found that 57 per cent of the sample declared that they would pay at least $1 more on their electric bill every month for climate action – 29 per cent of which would pay $20 a month, and 20 per cent said they would pay $50. Michael Greenstone, the director of EPIC said: “I think what this says is that quietly there is developing a change in peoples’ attitudes with respect to paying for climate policy... I found it striking that one in five households were willing to pay $50 a month.” The poll also found that one quarter of Americans believe that the US will achieve its targets under the Paris Agreement, while eight in ten say that the country should still try to reach the goals. Chinese energy companies are targeting Brazilian asset sales in a bid to make strong headway into the growing South American power markets. China Three Gorges Corp and State Grid Corp of China are bidding for a major stake in Brazil’s fourth largest energy generator, Santo Antonio Energia SA, which is developing a 3150 MW hydropower plant on the Madeira River. Their move follows State Grid Corp’s recent purchase of a stake in CPFL Energia, Brazil’s largest private electricity firm. China Three Gorges Corp and State Grid Corp of China are bidding alongside Canada’s Brookfield Asset Management Inc for 28.6 per cent of shares in Santo Antonio. They view Brazil as a key market due to the size of the economy, strong trade ties, growing energy demand, and rich hydro and wind energy resources. The country could also serve as a springboard for investment in other South American countries. Last month China International Water & Electric and China Three Gorges Corporation signed a contract with Bolivia’s ENDE for the construction of a 600 MW hydropower complex in the eastern province of Santa Cruz. China’s Eximbank will provide financing for the $1 billion project. Bolivian President Evo Morales has called for the construction of a further eight hydro plants in Santa Cruz. Last month State Grid agreed to the $1.8 billion purchase of a 23.6 per cent stake in CPFL, adding to its existing 23 per cent stake in the utility, which distributes power in the south and southeast of Brazil. n Brazil has ratified the Paris Agreement on climate change, its government announced last month. The country emits about 2.5 per cent of the world’s carbon dioxide and other polluting gases, according to United Nations data, and has committed to cutting emissions by 37 per cent over 2005 levels by 2025. n Plans outlined for offshore wind support n Renewables generation continues rise Chinese investors target South America 51181_wfes_2017_exhibitor_adv_22_the_energy_industry_times_249x160.pdf 1 9/19/16 5:37 PM
Energy Industry Times October 2016
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