Ensuring A Future for Wind Power in Cuxhaven

Published Nov 17, 2015 7:09 PM by Erik Kravets

Cuxhaven is the nexus of wind power in Germany right now. But going forward, how does the region ensure ongoing, sustainable demand for the entire wind power supply chain? From manufacturing generators, rotors and tripods to installing the offshore wind farms and cables to connect them to the landside power network, wind power requires a complex infrastructure.

How do we keep demand in the local area strong? How do we ensure market access to outside the region?

Officials from the city and business leaders gathered at Cuxhaven's Donner's Hotel to discuss. Lord Mayor Dr. Ulrich Getsch remarked that a great deal of steel (50,000 tons last month) is being discharged just for the wind farms. Expansion goals in Germany are simply not sufficient in order to cover the production capacity of new industrial sites like Siemens; the export market must be taken into account to permit the investment to be amortized effectively.

The new 7 MW turbines are already at the limits of current equipment. Going forward, 10+ MW turbines are planned, which will need to be handled directly at the coast where a deep draught harbor is available. Transport from inland locations to the installation sites is going to be virtually impossible.

Cuxhaven and its region offer a certain reliability which is essential to the correct execution of offshore projects - for example, CuxPort/Rhenus has been able to complete the service of larger wind farms directly from its base in Cuxhaven.

Paul Bödeker of the State Parliament of Bremen, representing Bremerhaven, noted that North German coastal cities must be willing to work together more closely. He admitted that Bremerhaven was not prepared for the Siemens plant and congratulated Cuxhaven.

At the moment, about 3,000 MW of wind power is on the network and 3,700 MW are scheduled to be active by the end of this year. Financing for German wind farms is no longer a problem. Years ago, this was not the case but so much capital is entering into the market, and demand for capital is less than the supply. Large international banks are now involved, which has significantly changed the calculation. However, export financing could be improved. A model along the lines of the Export-Import Bank is already being used in Denmark, and such a model could be replicated in Germany.

Major drivers of growth include cable factories in Cologne, turbine maufacturing plants in Bremerhaven (companies Adwen and Senvion) and Cuxhaven (Siemens), offshore service points in Helgoland and Norden-Norddeich and converter module plants in Nuremberg (Siemens). The know-how for the turbines and facilities themselves is in northern German coastal states. However, the electrical engineering and cabling knowledge is in the south. For intellectual capital, Germany owns two thirds of all patents in offshore wind, Denmark has about 30% and Britain less than 5%.

About 5% of the investment amount of a given wind farm flows into service and operations (service employees, ships, ports, replacement parts and consumables, power plant maintenance) - which is an important market for Cuxhaven.

Looking forward, 26.400 MW of generating capacity have been authorised, with a target of 15,000 MW operating in Germany by 2030. By 2020, presently operating capacity (ca. 3.000 MW) is anticipated to grow to 7.000 MW. In terms of overall present operating generating capacity, the UK is in the lead, followed by Germany.

Hans-Peter Zint, President of the Cuxhaven Harbor Business Association and general manager of Rhenux/Cuxport highlighted three major benefits of wind developent: more jobs in a high skills, high technology sector, the prevention of climate change, and the geopolitical goal of energy independence.

Also, offshore wind power offers reliability in price, since the costs are calculable over the lifecycle of the project, which can run decades. With traditional energy sources like oil and gas, the prices can vary drastically due to external supply shocks and demand. The future of wind lies in cost reductions: the Danish project Horns Rev 3 can produce one KWh at 10.31 euro cents over a lifecycle of 12 years. Even this is a relatively expensive proposition, but compared to other sources, it is worthwhile as an investment in the future.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.