Utilities

Floating Offshore Wind Is Redefining Energy Potential

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<h2 style="text-align: justify;"><span style="font-size: 12pt;"><span data-preserver-spaces="true">Q1. </span><span data-preserver-spaces="true">Could you</span><span data-preserver-spaces="true"> start by giving us a brief overview of</span><span data-preserver-spaces="true"> your professional background, particularly focusing on your expertise in the industr</span><span data-preserver-spaces="true">y?</span></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">I am an engineering &amp; management professional with 18+ years of experience across the value chain of global utility clients in Australia, the</span> <span data-preserver-spaces="true">UK, Germany, India, and the USA. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">I have firsthand experience in leading multi-year, multi-million transformation programs. My strengths include my ability to visualize the future, ideate &amp; develop solutions for our clients. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">I have good liaising skills and am considered a trusted advisor by C-Level for managing accounts, building business in new geographies, leading global teams, partner alliances, and creating teams out of a diverse set of people &amp; skillsets.</span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;" data-preserver-spaces="true">Q2. What are the growth projections for floating offshore wind capacity over the next 5-10 years? And which geographic markets are expected to lead in adoption? </span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">Although floating offshore wind power plants are CAPEX intensive, they are a trending technology globally because of their advantages. Many global reputed research firms have said that floating wind power plants will have a market size of around $45 bn by 2030 at a CAGR of 30-35%. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">I believe it</span><span data-preserver-spaces="true"> will depend on many growth drivers, such as technological innovations, rising demand for electricity, the socio-economic advantages of floating wind power plants, and </span><span data-preserver-spaces="true">rising</span><span data-preserver-spaces="true"> investments in sustainable energy to tackle </span><span data-preserver-spaces="true">the </span><span data-preserver-spaces="true">escalating carbon footprint.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Countries in the European Union would continue to lead the adoption, with the UK being at the top.</span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;"><span data-preserver-spaces="true">Q3. </span><span data-preserver-spaces="true">Who are the leading players in floating offshore wind technology?</span></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">Major</span><span data-preserver-spaces="true"> players in floating wind offshore technology </span><span data-preserver-spaces="true">includes</span><span data-preserver-spaces="true">:</span></p><ul style="text-align: justify;"><li><span data-preserver-spaces="true">Xinjiang Goldwind</span></li><li><span data-preserver-spaces="true">Siemens Gamesa</span></li><li><span data-preserver-spaces="true">GE</span></li><li><span data-preserver-spaces="true">Envision Energy</span></li><li><span data-preserver-spaces="true">Nordex SE</span></li><li><span data-preserver-spaces="true">MHI Vestas</span></li><li><span data-preserver-spaces="true">Senvion SA</span></li><li><span data-preserver-spaces="true">Hitachi</span></li><li><span data-preserver-spaces="true">ABB Group</span></li><li><span data-preserver-spaces="true">Mingyang Smart Energy Group Co. Ltd</span></li><li><span data-preserver-spaces="true">Total Energies</span></li><li><span data-preserver-spaces="true">Shell</span></li><li><span data-preserver-spaces="true">Doosan Corp</span></li><li><span data-preserver-spaces="true">Iberdola</span></li><li><span data-preserver-spaces="true">Equinor</span></li><li><span data-preserver-spaces="true">Nexans</span></li></ul><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;"><span data-preserver-spaces="true">Q4. </span><span data-preserver-spaces="true">What are the challenges in grid integration for large-scale floating wind?</span></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">Wind power is variable and intermittent, </span><span data-preserver-spaces="true">thereby</span><span data-preserver-spaces="true"> creating challenges for the stability and reliability of the grid. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">As per NREL (National Renewable Energy Laboratory), the wind power output can drop up to 70% within a short period due to varying </span><span data-preserver-spaces="true">speeds of wind</span><span data-preserver-spaces="true"> on a daily and seasonal basis. </span><span data-preserver-spaces="true">This</span><span data-preserver-spaces="true"> poses </span><span data-preserver-spaces="true">serious</span><span data-preserver-spaces="true"> challenges in grid management. Further, the intermittent nature of wind power causes frequency and voltage fluctuations. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Additionally, integrating large-scale wind power plants would require upgrades to the existing grid infrastructure. Other challenges include harmonics/power quality, support for reactive power, protection challenges, </span><span data-preserver-spaces="true">etc</span><span data-preserver-spaces="true">. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">However, globally, wind power companies are working on remedies to address them &ndash; Advanced forecasting methods, Energy storage for reserves, Flexible grid operations &amp; Demand response, Advanced designs &amp; so on.</span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;"><span data-preserver-spaces="true">Q5. </span><span data-preserver-spaces="true">What is </span><span data-preserver-spaces="true">the</span><span data-preserver-spaces="true"> current Technology Readiness Level (TRL) </span><span data-preserver-spaces="true">of</span><span data-preserver-spaces="true"> different floating platform designs</span><span data-preserver-spaces="true">?</span> </span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">I </span><span data-preserver-spaces="true">strongly</span><span data-preserver-spaces="true"> believe that technologies will further evolve and make floating wind power plants financially viable and competitive. The choice of one type or the other will depend on factors such as sea, seabed conditions, winds in the area, the</span> <span data-preserver-spaces="true">size of the wind turbine, the depth of the harbors, </span><span data-preserver-spaces="true">etc</span><span data-preserver-spaces="true">. </span></p><p style="text-align: justify;"><span data-preserver-spaces="true">At a high level, the floating wind power plant technology designs can be sub-divided based on the following categories:</span></p><ul style="text-align: justify;"><li><span data-preserver-spaces="true">Based on Foundation (Barge, Semi-submergible, Spar </span><span data-preserver-spaces="true">and</span><span data-preserver-spaces="true"> Tensioned Leg Platform-TLP) </span></li><li><span data-preserver-spaces="true">Based on the depth of the water </span></li><li><span data-preserver-spaces="true">Based on the type &amp; capacity of the turbine </span></li></ul><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;"><span data-preserver-spaces="true">Q6. </span><span data-preserver-spaces="true">Are </span><span data-preserver-spaces="true">there</span><span data-preserver-spaces="true"> any mergers and acquisitions/consolidations </span><span data-preserver-spaces="true">that </span><span data-preserver-spaces="true">are</span><span data-preserver-spaces="true"> expected</span><span data-preserver-spaces="true"> in the industry?</span></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">It is hard to pinpoint which companies, but we would definitely witness some actions.</span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;"><span data-preserver-spaces="true">Q7. </span><span data-preserver-spaces="true">If you were an investor looking at companies within the space, what critical question would you pose to their senior management</span><span data-preserver-spaces="true">? </span></span></h2><p style="text-align: justify;"><span data-preserver-spaces="true">Some of the questions which I would like to ask to Senior Management would be:</span></p><ul style="text-align: justify;"><li><span data-preserver-spaces="true">Future of wind energy as per the company's evaluation </span></li><li><span data-preserver-spaces="true">Company's technology adoption plan </span></li><li><span data-preserver-spaces="true">Company's investment in innovations </span></li><li><span data-preserver-spaces="true">Company's competitive advantage</span></li><li><span data-preserver-spaces="true">Long-term strategic partnership(s)</span></li><li><span data-preserver-spaces="true">Government policies, incentives &amp; availability of funding in the focused geographies </span></li><li><span data-preserver-spaces="true">Environmental impact company is making</span></li><li><span data-preserver-spaces="true">Financial health of the company</span></li><li><span data-preserver-spaces="true">Company's order pipeline/ Approved projects</span></li><li><span data-preserver-spaces="true">Company's headcount in terms of skilled labor</span></li><li><span data-preserver-spaces="true">How much return can a retail investor expect from wind energy &amp; at what time?</span></li><li><span data-preserver-spaces="true">Risk matrix (Major &amp; Minor risks such as financial risk/ tax treatment/ opposition from locals/ High operating costs/ noise from the turbines/ technology failure, </span><span data-preserver-spaces="true">etc</span><span data-preserver-spaces="true">.)</span></li></ul><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Sanjiv

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