Table of Contents

Executive Summary 5

Introduction to Wind Energy 6
Introduction 6
Turbine Power 6
Distributing Wind Speed 7
Managing the Grid 8
Capacity Factor 8

Global Wind Energy Industry 9
Europe 9
North America 10
Asia 12
Australia 14
Africa 15
Latin America 16
Offshore 17

Introduction to Offshore Wind Energy 18
History of Offshore Wind Power 18
Offshore Wind Technology Analysis 18
Offshore Wind Energy Economics 22
Industry Overview 22
Future of Offshore Wind Energy 24

Technologies Involved in Offshore Wind Energy 25
Components of an Offshore Wind Turbine 25
Offshore Technology Challenges 26

Effect of Offshore Wind Energy on Marine Ecosystems 29
Effect on Marine Mammals 29
Effect on Birds 30
Effect on Fish, Sharks and Rays 31
Effect on Landscape/Seascape 31

Effect of Offshore Wind Energy on the Environment 33
Offshore Risks 33
Categories of Environmental Risks 33
Effects on the Environment 34
Effect of Planning Processes Offshore 35
Issues Likely to Come up in the Future 36
Result of Such Issues 37

Offshore Wind Energy in the United States 38
Market Overview 38
History of Offshore Wind Power 38
Offshore Resource 39
U.S.' Present Turbine Technology for Offshore Energy Industry 40
Offshore Wind Developments in the U.S. 41
Future Outlook for the U.S. Offshore Wind Energy Industry 41

Offshore Wind Energy in Europe 43
Market Overview 43
Concerted Action for the Deployment of Offshore Wind Energy (COD) Project 43
Regulatory Framework 45
Grid Issues Facing the Industry 48
Country-Wide Analysis 50
Belgium 50
Denmark 51
Finland 52
France 53
Germany 53
Ireland 55
Spain 56
Sweden 58
Netherlands 58
United Kingdom 59

Case Studies 62
Horns Rev Offshore Wind Farm, Denmark 62
Beatrice Windfarm Demonstrator Project, UK 62
Cape Wind, USA 63
Lillgrund, Sweden 63
Alpha Ventus, Germany 65
Kentish Flats, UK 65

Major Players 66
Cielo Wind Power 66
Enercon 67
FPL Energy 67
Gamesa Eolica 68
GE Energy 69
PPM Energy 70
Renewable Energy Systems 71
Shell Renewables 72
Suzlon Energy 73
Siemens 74
Vestas Wind Systems 75

Appendix 77

Glossary 84

List of Figures and Tables

Figures

Figure 1: Power Coefficient of Wind Turbines 7
Figure 2: Offshore Wind Facility 19
Figure 3: Components of One of the 2-MW Turbines in Horns Rev 20
Figure 4: Economics for an Offshore Wind Plant 22
Figure 5: Offshore Wind Projects Installed through 2006 23
Figure 6: Components of an Offshore Wind Turbine 25
Figure 7: Main Power Flow on the 150 kV Lines in Western Flanders 50
Figure 8: Offshore Wind Energy Opportunity in the U.S. 77
Figure 9: Proposed Offshore Wind Projects: 11,455 MW (through 2010) 77
Figure 10: Offshore Wind Farm 78
Figure 11: Mid-Atlantic Offshore Wind Resource 78
Figure 12: U.S. East Coast Offshore Wind Power Resource 79
Figure 13: Distribution of Wind Speed at the Lee Ranch Facility 79
Figure 14: Offshore Wind Energy Potential in Europe 80
Figure 15: Interaction between Turbine & Support Structure 81
Figure 16: Turbine Reliability and O & M Strategy 81
Figure 17: Overall Wind Farm Costs 82
Figure 18: Installation Vessel 82
Figure 19: 4 Completed Turbines 83

Tables

Table 1: Wind Speed Classes at Offshore Sites 39
Table 2: U.S. Offshore Wind Energy Resource 39
Table 3: Largest Commercial Machines - 2-2.5 MW 80