You are on page 1of 24

CASE STDUY REPORT

A lab Submitted

in Partial Fulfilment of the Requirements

for the Degree of

`Bachelor of Technology/BTech (CSE)

As part of “Global Energy” course


By
Sarthak Jindal
Mukul Yadav
Bhanu Pratap Singh
Harsha Vardhan
Sumanth
Amit Pratap Singh
Yash Verma
Kanhaiya Lal Bishnoi
To
Prof. Beenu Taneja,

Prof. Akash Saraswat

SCHOOL OF ENGINEERING AND TECHNOLOGY


BML MUNJAL UNIVERSITY GURGAON

1
Acknowledgement

We are highly grateful to Dr.Beenu Taneja and Prof. Akash Saraswat , Professor at, BML Munjal
University, Gurugram, for providing supervision to carrying out the seminar/case study from March-
April, 2023.
“Dr.Beenu Taneja and Prof. Akash Saraswat has provided us great help in carrying out our work and is
acknowledged with reverential thanks. Without wise counsel and able guidance, it would have been
impossible to complete the training in this manner.
We would like to express thanks profusely to thank Dr.Beenu Taneja and Prof. Akash Saraswat , for
stimulating us from time to time. I would also like to thank the entire team at BML Munjal University. I
would also thank my friends who devoted their valuable time and helped me achieve
successful completion.”

2
ABSTRACT

In this case study, we look at the development of offshore wind energy in Europe and
its shift to renewable sources. The study emphasizes the crucial role that politics and
government policy have played in fostering the expansion of offshore wind generation.
The study focuses on the implementation of laws and policies that have encouraged
the construction of offshore wind farms in nations including Denmark, Germany, and
the United Kingdom. The study also examines how political elements like lobbying and
public opinion have affected the development of offshore wind generation. Overall, the
case study offers insights into the major forces behind and difficulties facing the
development of offshore wind energy in Europe.

3
Table of Content

1. Introduction………………………………………………………………5

2. Transition from Non-Renewable to Renewable Energy…………………8

3. Government Policies and their impact…………………………………...12

4. Political…………………………………………………………………..14

5. Market……………………………………………………………………12

6. Recommendation…………………………………………………………14

7. Wind Energy projects in Europe…………………………………………16

4
INTRODUCTION

A notable accomplishment in the switch from non-renewable to renewable energy sources in recent
years has been the expansion of offshore wind generation in Europe. Government regulations, technical
breakthroughs, and an increasing awareness of the negative environmental effects of fossil fuels have all
contributed to this transformation. In order to cut greenhouse gas emissions and meet their climate goals,
many European nations are turning to offshore wind energy as a significant component of their
strategies.

Fig 1.1: An offshore wind farm in Europe


The growth of offshore wind power in Europe has not been without its challenges, however.
Governments, energy corporations, and other stakeholders must make a sizable financial investment and
work together during the lengthy and expensive process of developing offshore wind farms. Offshore
wind power politics can also be problematic, with some sectors and towns opposing the establishment of
wind farms for a variety of factors. Notwithstanding these challenges, Europe has seen remarkable
growth in the offshore wind energy sector and now leads the world in offshore wind energy output. In
terms of offshore wind energy generation in 2021, Europe did indeed lead the world. Below are some
figures on the generation of offshore wind energy in Europe:
1. According to the industry group WindEurope, Europe's offshore wind farms generated a total of
25,014 GWh of electricity in 2020, which is an increase of 15% compared to the previous year.
2. As of 2020, Europe had a total of 5,402 offshore wind turbines installed, with a combined capacity
of 25.3 GW.

5
3. The United Kingdom had the largest amount of offshore wind capacity installed in Europe, with a
total of 10.4 GW as of the end of 2020.
4. Other countries with significant offshore wind capacity in Europe include Germany (7.7 GW),
Denmark (1.7 GW), the Netherlands (1.5 GW), Belgium (1.3 GW), and Sweden (0.5 GW).

According to the European Commission, offshore wind energy could provide up to 450 GW of
electricity generation capacity by 2050, which would be enough to meet more than 50% of the EU's
electricity demand.

Fig 1.2:“The growth of offshore wind in Europe Vs rest of world”


By the end of 2021, Europe will already be the world leader in offshore wind power with more than 22
GW of installed capacity. Investment in offshore wind generation has benefited from government rules
and incentives like feed-in tariffs and renewable energy targets. The greater affordability of offshore
wind power in contrast to other energy sources has also had a significant impact.

6
Fig 1.3:“ Global growth in offshore wind turbine technology Europe Vs World”

Fig 1.4:“Showing the growth of offshore wind energy by countries of Europe”


This case study will explore the growth of offshore wind power in Europe as we can also see in Fig 2,
examining the government policies and politics that have driven its development, the technological
advancements that have made it possible, and the challenges that have been faced along the way. By
examining the factors that have contributed to the success of offshore wind power in Europe, we can
gain insights into how other regions can replicate this success and accelerate the transition to renewable
energy sources.

7
Transition from Non-Renewable to Renewable Energy:

In recent years, the shift from nonrenewable to renewable energy sources has become an increasingly
crucial topic. The expansion of offshore wind energy in Europe highlights this change. This
transformation has been aided by government policies and politics, which have played an important role
in fostering offshore wind energy growth. Nonrenewable energy sources such as coal, oil, and natural
gas are limited and cannot be replenished once depleted. As the world's population and energy demand
grow, it is evident that the usage of nonrenewable energy sources is not sustainable in the long run.
Renewable energy sources, such as wind, sun, and hydropower, are energy sources that can be
regenerated naturally and are thus far more sustainable.

Fig 2.1:“European Countries electricity generation source”

8
Politics and government policy are crucial in promoting the growth of renewable energy sources like
offshore wind. To promote the growth of offshore wind energy, governments in Europe have devised a
number of regulations and incentives. By 2030, the European Union, for instance, wants to generate
32% of its energy from renewable sources, which is motivating other nations to invest in offshore wind
power. Furthermore, to encourage investment in renewable energy projects, a number of European
countries have implemented feed-in tariffs and other financial incentives.

Fig 2.2:“The progress towards renewable energy source by countries”

9
The expansion of offshore wind energy in Europe has been tremendous as a result of these laws and
incentives. Offshore wind capacity in Europe reached 25 GW in 2020, a 6.1 GW increase from the
previous year.
Some Statistic Regarding the transition of renewable energy in European countries.

Fig 2.3:“Renewable source generating sources”

Fig 2.4:“Tansition from non renewable to renewable ”

10
Fig 2.5:“Expenditures by Europe Union for different sources of Renewable Energy”

11
Government Policies and their impact

Government policies are a set of rules, regulations, and laws put in place by governments to guide the
behavior of individuals and organizations within their jurisdiction. These policies are usually designed to
address specific issues or challenges that the government believes are important. In recent years, many
European countries have implemented policies aimed at promoting the growth of offshore wind energy
as a way of reducing greenhouse gas emissions and meeting renewable energy targets.

Fig 3.1:“Factors affecting the growth of offshore wind energy”

One example of such a strategy is the EU Renewable Energy Directive, which calls for EU member
states to increase the proportion of renewable energy in their overall energy consumption to 32% by
2030. This mandate has contributed significantly to the increase in offshore wind energy generation in
nations like Germany, Denmark, and the United Kingdom.

For instance, the UK government has put in place a number of programs to support offshore wind
generation, such as the Contracts for Difference (CfD) program, which offers financial assistance to
those that develop renewable energy sources. The government has given contracts to offshore wind
projects through this program that are anticipated to provide 7.6 gigawatts of electricity, which is more
than enough to power over 6 million homes.

Similar rules have been introduced in Denmark, which has encouraged the expansion of offshore wind
generation in that nation. By 2030, the government wants to generate 50% of the nation's electricity
from renewable sources, and offshore wind energy is anticipated to be a key component of that effort.

12
Three offshore wind farms were given contracts by the Danish government in 2019, and they are
anticipated to produce 2.4 gigawatts of electricity altogether.

These rules have had a substantial effect on the development of offshore wind energy in Europe. As of
2020, Europe had a total installed offshore wind capacity of 25.5 gigawatts, up from just 0.5 gigawatts
in 2006, according the European Wind Energy Association. This shows an annual compound growth
rate of more than 30%. Additionally, thousands of jobs have been generated by offshore wind energy
across Europe, notably in nations like the UK and Germany that have substantial offshore wind farms.

Germany's ruling coalition approved changes to the country's energy regulations, and they will go into
force on December 14, 2020. These changes will help the nation reach its 2030 target of producing 65%
of its electricity from clean sources, opening the door for the long-term growth of renewable energy.

Annual reviews are mandated by the 2021 Renewable Energy Sources Act and can be used to implement
changes as needed. German consumers will pay EUR 0.065 per kWh for renewable energy in 2019,
down from € 0.06756 in 2020, according to the renewable energy levy. For ordinary residences, power
costs will go down by 1%. Due to a decline in the premium German consumers pay to promote
renewable energy, they should expect lower energy expenses in 2019.

In conclusion, government policies have played a critical role in promoting the growth of offshore wind
energy in Europe. The implementation of initiatives like the EU's Renewable Energy Directive, the UK's
CfD program, and Denmark's renewable energy targets has assisted the development of offshore wind
generation. As a result of these actions, the capacity of Europe's offshore wind farms has greatly risen,
and employment in the renewable energy sector has increased.

Political

13
The presence of several political parties representing various interests, ideologies, and viewpoints
characterises the political landscape. These parties are organised groupings that use political power to
influence public policy and decision-making. These parties have recently been interested in the rise of
offshore wind energy in Europe. Offshore wind energy is a fast growing sector in Europe with enormous
development potential. The European Union (EU) has set a lofty goal of growing its offshore wind
energy capacity to 60 GW by 2030, a fivefold increase over current levels. Offshore wind energy has
grown due to a number of causes, including lower prices, technical breakthroughs, and more
government backing.

Political parties in Europe have reacted differently to the rise of offshore wind energy. Some parties
have backed offshore wind development, viewing it as a means to promote renewable energy and reduce
carbon emissions. These parties prioritise climate change and environmental problems, and offshore
wind energy is an important component of their policy platform. In Germany, for example, the Green
Party has been a prominent champion for the growth of offshore wind energy, believing that it is
necessary for the country to reach its climate commitments. Other political parties have expressed
reservations about offshore wind energy, citing worries about its cost, dependability, and environmental
effect. These parties are more concerned with economic concerns and may be more sceptical of
government action in the energy industry. In the United Kingdom, for example, the Conservative Party
has criticised the high prices of offshore wind energy and has advocated for a greater emphasis on cost-
effective alternatives such as nuclear power.
Offshore wind energy expansion in Europe has had a huge influence on the energy industry and the
broader economy. Offshore wind has provided new jobs, particularly in places with strong marine
sectors, and has drawn major infrastructure and technological investment. The growth of offshore wind
has also contributed to the decarbonization of the energy sector, reducing greenhouse gas emissions and
helping to mitigate the impacts of climate change.
The establishment of the Dogger Bank Wind Farm off the coast of the United Kingdom is one case study
of the influence of offshore wind energy in Europe. When finished, this project, constructed by a coalition
of firms, will be the world's biggest offshore wind farm, with a total capacity of 3.6 GW. Thousands of
jobs are planned to be created throughout construction and operation, and the project will considerably
contribute to the UK's renewable energy ambitions.

14
Fig 4.1: “Largest offshore wind farm- Dogger Bank Wind Farm off the coast of the United Kingdom”

The expansion of offshore wind energy in Europe has given political parties with a variety of obstacles
and possibilities. While some have advocated for the spread of offshore wind, others have been more
sceptical, noting worries about its cost, dependability, and environmental effect. However, the growth of
offshore wind energy has had a significant impact on the energy sector and the broader economy,
creating jobs, attracting investment, and contributing to the decarbonization of the energy sector.

15
Market

Recent years have seen a major increase in the market for offshore wind in Europe, which has been
fueled by both rising demand for renewable energy sources and improvements in wind turbine
technology. Supply and demand can be used to examine how this market is expanding because they both
have a significant impact on how the sector will develop.

On the demand side, the expansion of the offshore wind market in Europe has been significantly fueled
by the rising demand for renewable energy. Offshore wind has become a significant part of the
renewable energy mix as nations around the globe pledge to reduce greenhouse gas emissions and
switch to greener sources of energy. This has been especially noticeable in Europe, where nations like
Germany, the United Kingdom, and Denmark have made significant investments in offshore wind
farms.

The cost-effectiveness of producing power from offshore wind has also increased due to developments
in wind turbine technology. Because of this, the price of the power produced by offshore wind farms has
decreased, increasing their ability to compete with other sources of energy production.

On the supply side, a variety of factors have contributed to the expansion of the offshore wind market in
Europe. One significant driver of competition and innovation in the industry has been the growing
number of wind turbine manufacturers that have entered the market. Improvements in turbine
installation and maintenance technologies, as well as government regulations and incentives intended to
promote investment in renewable energy, have all contributed to the creation of new offshore wind
farms.

Statistics show that the offshore wind sector in Europe has expanded significantly in recent years. From
just 1.5 GW in 2010, the total installed capacity of offshore wind in Europe increased to 25.8 GW in
2020. Almost 40% of Europe's offshore wind capacity is now located in the United Kingdom, where this
increase has been particularly noticeable. A number of other nations, including Germany, Denmark, and
the Netherlands, have also made substantial investments in offshore wind and are probably going to do
so again in the years to come.

16
Fig 5.1:“annual gross offshore wind capacity installations in major countries of Europe in 2020 ”
In 2020 Europe added 2,918 MW of new capacity but in only Netherlands of 1,493 MW ,in Belgium of
706 MW, in UK of 483MW, Germany of 219MW and in Portugal of 17MW supplied this new capacity
to the grid.

Fig 5.2:“Global Offshore Wind Energy Market by Region in 2021”

Regional examination of offshore wind energy. In the worldwide market, Europe is one of the main
continents. By doing this, Europe is expected to continue to lead in the upcoming years.

In general, rising demand for renewable energy and improvements in wind turbine technology are
responsible for the expansion of the offshore wind sector in Europe. Offshore wind is projected to
continue to play a significant part in supplying the world's energy demands as the world makes the shift
to cleaner forms of energy.
17
Because these facilities were constructed with the aid of a joint fund to which these countries made
significant contributions, a post-Brexit focus on offshore wind energy assets that were constructed
before Brexit is likely to make many big western European economies resentful and untrusting of the
UK. The EU will be concerned about this, and it may be pushed to take action by raising taxes on
European corporations so that they can reinvest the money they spent on these projects
in the EU economy.

Effects of offshore industry on other countries: Because the UK is no longer dependent on Russian gas
and power supplies, this rapid development could increase the gap between it and the Russian
Federation. As a result, millions of families in the UK will have access to a clean, affordable, and
environmentally friendly source of power during the winter months. Additionally, by reducing their
reliance on the dollar, the EU and the UK will be less dependent on it and their GDP may even increase.

Recommendation
It is advised that nations throughout the world think about investing in offshore wind energy as a means
to meet their energy needs and cut greenhouse gas emissions based on a case study looking at the
development of offshore wind energy in Europe. According to the case study, offshore wind energy has
grown significantly in Europe during the past few years, with installed capacity rising from 1,136
megawatts (MW) in 2000 to 25,369 MW in 2020.

The case study also shown that, particularly in regions with excellent wind conditions, offshore wind
energy is becoming more and more cost-competitive with conventional energy sources. Offshore wind
energy's levelized cost of electricity (LCOE) has drastically declined in recent years, with some projects
achieving an LCOE of €40/MWh or less. It is anticipated that this trend will persist as technology
advances and economies of scale are realised.

The case study also emphasised how government initiatives and financial aid programmes fueled the
expansion of offshore wind power in Europe. Feed-in tariffs, renewable energy certificates, and other
forms of financial assistance have encouraged the creation of new projects and helped offshore wind
energy become more appealing to investors.

Based on these conclusions, it is advised that nations all over the world think about putting laws and
support systems in place to encourage the development of offshore wind energy. In doing so, they can
help the world's efforts to fight climate change and cut greenhouse gas emissions. They can also meet
their own energy demands.

18
Wind Energy projects in Europe

The below image show the projects and its phase of development in the Europe region.

These are some of the Wind Energy projects in Europe

1.HORNSEA 2

19
The second stage of the Hornsea Zone is the offshore Hornsea 2 Wind Farm.It is situated next to
Hornsea One, the largest offshore wind farm in the world, and about 89 kilometres off the coast of
Yorkshire in the North Sea.
In 2022, the project's 165 8MW offshore wind turbines from Siemens Gamesa will be completely
operational.With a capacity of about 1.3GW, Hornsea 2 can power over 1.3 million homes.Compared to
those utilised for Hornsea 1, the wind farm's annual output will be 20% higher.With this, Hornsea 2
takes the lead as the largest offshore wind farm in the world.

2.MORAY EAST

With 950MW of capacity, Moray East will be able to power almost 950,000 houses in the UK and
provide enough electricity to prevent the emission of 1.4 million tonnes of CO2 yearly.Ocean Winds
will run the wind farm in the Moray Firth, 22 kilometres from land.The cost of producing electricity will
be EUR 57.50/MWhr, which is the lowest price of any new renewable energy source and is 2/3 less
expensive than offshore wind farms now operating in the UK (which generally cost upwards of EUR
140/MWhr).

20
Contribution

Introduction-Sarthak
Transition from Non-Renewable to Renewable Energy- Sarthak and Bhanu

Government Policies and their impact-Harsha and Sumanth

Political-Yash and Amit

Market-Harsha and Mukul

Recommendation-Yash and Sumanth

Wind Energy projects in Europe-Bhanu and Mukul

21
References

 Galparsoro, I., Menchaca, I., Garmendia, J.M. et al. Reviewing the ecological impacts of
offshore wind farms. npj Ocean Sustain 1, 1 (2022). https://doi.org/10.1038/s44183-022-
00003-5
 https://energy.ec.europa.eu/topics/renewable-energy/offshore-renewable-
energy_en#:~:text=EU%20strategy%20on%20offshore%20renewable%20energy,-
To%20ensure%20that&text=The%20strategy%20sets%20targets%20for,GW%2C%20re
spectively%2C%20by%202050

 João Gorenstein Dedecca, Rudi A. Hakvoort, J. Roland Ortt,Market strategies for offshore
wind in Europe: A development and diffusion perspective,Renewable and Sustainable
Energy Reviews,Volume 66,2016,Pages 286-296,ISSN 1364-0321,

 European Commission. A policy framework for climate and energy in the period from 2020
to 2030; 2014.

 European Commission

 J.K. Kaldellis, M. Kapsali Shifting towards offshore wind energy—recent activity and
future development Energy Policy, 53 (2013), pp. 136-148, 10.1016/j.enpol.2012.10.032

 https://www.weforum.org/agenda/2019/03/wind-farms-now-provide-14-of-eu-power-these-
countries-are-leading-the-way/

 https://www.irena.org/publications/2021/Jun/Impact-of-Innovation-Offshore-wind-case-
study

 https://windeurope.org/wp-content/uploads/files/about-wind/reports/WindEurope-Our-Energy-
Our-Future.pdf

 https://www.weforum.org/agenda/2020/08/offshore-wind-energy-growth-energy-transition/

22
23
24

You might also like