Wind turbines to dwarf skyscrapers in a decade

Nations are looking to gradually phase out the subsidies for offshore wind firms

Copenhagen/Frankfurt, June 27: Wind farm operators are betting on a new generation of colossal turbines, which will dwarf many skyscrapers, as they seek to remain profitable after European countries phase out subsidies that have defined the green industry since the 1990s.

The world’s three leading offshore wind operators — Dong Energy, EnBW and Vattenfall — all told Reuters they were looking to these megaturbines to help adapt to the upcoming reality with dwindling government handouts.

According to interviews with turbine makers and engineers, at least one manufacturer — Siemens Gamesa — will have built a prototype megaturbine by next year and the first farms could be up and running in the first half of the next decade.

These massive machines will each stand 300 meters tall — almost as high as London’s Shard, western Europe’s tallest building — with 200-metre rotor spans that will stretch the length of two football fields.

The wind power sector is at a critical juncture as the subsidies that have cradled it since its inception in the early 1990s, and underpinned its business model, disappear as politicians enact a long-planned push to make the industry more commercially viable and able to compete with other energy sources.

The countries that form the hub of the European offshore wind industry — Denmark, Germany, the Netherlands and Britain — are looking to gradually phase out the handouts over the next decade.

This will end a crucial source of revenue for operators; in tenders concluded as recently as 2014, subsidies still accounted for around half of European wind projects’ income.

With the writing on the wall, Dong and EnBW submitted bids with no subsidies factored in at a tender in April for a German project planned for 2024.

The auction represented an industry milestone, the first with zero-subsidy bids, but raised the burning question of how operators will be able to make money and survive while offering a commercially attractive alternative to coal and nuclear.

The answer, according to the companies, are the megaturbines, which would sweep a far bigger area and harness more wind, cutting costs per megawatt. They will each generate between 10 and 15 megawatts (MW) of power - a considerable leap from the largest turbines currently in operation, made by MHI Vestas, which are 195 meters tall and generate 8 MW.

The megaturbines are no sure bet for the companies' bottom lines, however.

There are challenges on the technical front to create monumentally tall towers and light, slender blades that can withstand the strain of gale-force winds.

Economically, there are also doubts among some industry experts about whether zero-subsidy wind projects can make money, even with the increased efficiency delivered by megaturbines.

They say deeper savings must be made by operators across their businesses and electricity prices must also rise significantly to bring profitability.