Green energy firms power on as virus slows world economy
After a two-hour boat trip from Lowestoft, on the east coast of England, wind mills more than 500 feet high loomed out of the mist. Atop the towers, technicians in helmets and red-and-black protective suits were visible, finetuning the machines and hooking them up to the British power system.
Britain has been under various stages of lockdown since March, but work on this wind farm, called East Anglia One, has charged ahead.
Early on, the companies behind the $3.1 billion project weren’t so sure.
As the coronavirus was gathering momentum across Europe, managers called a one-day halt in late March to consider whether pushing forward made sense. New health and safety measures would inevitably drain resources.
“We had to do a check and say ‘OK, should the project continue?’ and we asked ourselves with a very open mind,” said Charlie Jordan, the project director for Iberdrola, the Spanish utility developing the project.
Work resumed the next day and hasn’t stopped.
The fallout from the coronavirus pandemic has many businesses reeling, and the oil and gas industry in particular has been rocked by plummeting prices that have forced it to drastically cut production and lay off workers.
But producers of clean energy are pushing hard to get their projects up and running. They want to start making money on their investments as soon as possible, and while demand for electricity has been reduced by the impact of the virus, renewable power tends to win out over polluting sources in electricity systems because of low costs and favorable regulatory rules.
While crews fixed the huge turbines to the seabed off the English coast in April, Iberdrola began producing power from what it says is Europe’s largest solar energy facility, in western Spain.
Jordan, the offshore project manager, said that he and his colleagues figured that they could take steps to keep risks under control. Among other things, contractors rented holiday cabins and reached agreements with hotels near Lowestoft, the operations base, so that they could house some of the offshore workers there and keep them isolated.
So far, no one working on the project has become ill with the coronavirus, Jordan said.
All of the 102 turbines are now installed in an area about 25 miles off the coastline. The nearly 250foot blades can spin out enough power to supply around 600,000 homes, according to the company.
Demand for the equipment for these projects is putting pressure on makers of gear to keep their factories churning.
Vestas Wind Systems is striving to keep a global network that includes plants in Colorado, China, Denmark and elsewhere largely open to meet a record first-quarter order book of over $38.4 billion for its giant electric powergenerating windmills and services.
“We started out differently, saying ‘Let’s not use the excuse of COVID-19,’ ” said Henrik Andersen, chief executive of Denmark-based Vestas.
Vestas, too, points to a variety of measures it has taken to keep workers safe. At its factory in Denmark that makes nacelles, the chambers at the top of turbines, safety measures are visible, especially in the canteen. The meals come on prepared plates rather than buffet style, and employees eat in shifts to reduce crowding. People sit diagonally across from one another at tables.
“It is strange having to keep distance to your coworkers when you are so used to being close,” said Julie Noesgaard, who packages parts for shipment.
The pandemic is throwing up obstacles for these companies. Vestas said that in the first quarter matters like delays in obtaining components and changes in work procedures added about $10.8 million in costs, contributing to a loss of more than $90 million. The company said it was suspending guidance for the year.