Iberdrola chief calls offshore wind ‘revolution of 21st century’

Speaking at the World Maritime Week bi-annual conference and exhibition in Bilbao, Spain, Xabier Viteri Solaun urged policy makers and industry leaders to renew their commitment to offshore wind energy, highlighting its crucial role in Europe’s energy transition and calling it the ‘revolution of the 21st century’.

However it will not be easy, he warned.

Solaun said Europe was facing a ‘trilemma’: security of energy supply; cost efficiency; and environmental impact.

He said these issues could be overcome with renewable energy, which would meet demand with political will and regulatory certainty.

“The offshore wind outlook doesn’t look very positive,” he said. “There have been some auctions in Europe where nobody submitted a bid and deadlines for offshore wind will not be met. There have been several write-offs because the economic sense has been lost. Equipment manufacturers are having a tough time, especially with floating technology.

“We haven’t reduced the stress caused by Covid and prices are still rising. We are not integrating the price of electricity into final demand.

”However if we are able to address these problems we will transform wind power.”

Geopolitical and economic pressures

Solaun said geopolitical events had been catalysts for Europe’s increasing focus on energy independence.

The European Union’s Green Deal, introduced in 2019, had aimed to transform the continent into a modern and efficient economy by 2050, but while there had been steady growth in renewables, supply chain disruptions caused by the Covid-19 shutdowns and rising commodity prices had slowed progress.

The war in Ukraine, which caused gas prices to soar by 20 times due to the loss of Russian supply, further exposed Europe’s dependence on imported fuels, he said. This crisis only served to accelerate the push for renewables as a pathway to better energy security.

At the same time, he said Europe still lags behind in electrification, with China being the only country significantly expanding its electrification efforts.

And China also had a role to play in the supply – or lack of supply – of critical components needed for renewable energy industries, such as rare earths, magnets and batteries.

Digital future

Solaun emphasised the importance of digitalisation and artificial intelligence in reducing the costs of offshore wind energy, identifying three key areas where digital technology could drive efficiency: workforce training, maintenance and inspections and vessel route optimisation.

“Analysts remain optimistic about the sector’s growth potential, given its ability to generate high-quality jobs and create localised supply chains,” he said.

In summary, the key points about offshore wind were:

1. It will be the revolution of the 21st century
2. All growth industries are going to need more and more electricity
3. This new demand will be fed by renewable electricity
4. To make this possible, grids are essential and there is an immediate need for investment in smart grids
5. Storage and flexibility will be key to optimise and manage renewable-based systems
6. There has to be political will and regulatory certainty.