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EU wind installations must increase rapidly to meet the bloc's renewable energy objectives but the EU's largest turbine suppliers Vestas, Siemens Gamesa, Nordex, and Enercon are holding back investments in new capacity. The EU installed 16 GW of wind in 2022 and must install 37 GW per year to hit its target of 500 GW by 2030.

The action plan allows turbine suppliers to tap into EU financing that was previously earmarked for innovation and research and calls on the European Investment Bank to offer de-risking guarantees.

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These measures "will significantly reduce financing costs for the original equipment manufacturers (OEMs) and would allow the wind industry to allocate financial resources to increase their capacity,” said Jon Lezamiz Cortazar, Head of Advocacy at Siemens Energy, the owner of Siemens Gamesa.

More importantly, turbine suppliers will need a clearer deployment pipeline to commit to new investments. Around 80 GW of EU wind projects are stuck in permitting queues and several wind power auctions have failed to attract developers due to rising costs.

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To meet EU wind targets and give turbine suppliers the "possibility to become profitable," governments must solve the permitting delays, Lezamiz said.

Analysts at Rystad Energy expect an 11% drop in EU wind installations this year but may improve their forecast going forward if countries take “concrete steps” to clear up permitting backlogs.

The EU will issue more detailed guidelines early next year and OEMs don’t expect to see substantial financial benefits until 2025 or 2026 and are unlikely to announce infrastructure investments until much of the permitting backlog is cleared.

Manufacturers are expected to invest more in offshore wind turbines than in onshore wind components, to address current supply gaps and respond to growing global demand, industry sources told Reuters Events.

Pathway to growth

Without manufacturing expansions, the EU will face a “moderate bottleneck” for large onshore wind turbines of capacity 4 MW to 6 MW there could be "significant undersupply" of the largest offshore wind turbines of over 12 GW, analysts at Rystad Energy said in a report published in April.

Developers may need to "diversify their demand a bit more toward smaller turbines,” Rystad Energy analyst Victor Signes told Reuters Events.

Faster permitting and more effective capacity auctions will be key to securing new manufacturing capacity. Between 2020 and 2022, the vast majority of the wind tenders in the EU went undersubscribed due to a combination of permitting challenges, inflationary pressures and supply chain disruptions.

Germany saw a sharp fall in annual installations but a recent increase in guaranteed onshore wind prices and measures to reduce permitting challenges have led to an increase in activity this year.

CHART: Annual wind installations in Europe by country


Source: WindEurope Acquire Licensing Rights

OEMs are unlikely to invest in new facilities unless they have clear visibility that there will be a market for their turbines, Endri Lico, a Global Wind Technology and Supply Chain analyst at Wood Mackenzie, said.

“The solution will require a massive ramp up in the volume of auctions with significantly elevated strike prices, as well as new manufacturing facilities,” Lico said.

To accelerate the permitting of renewable energy projects, the EU's wind action package aims to accelerate the implementation of rules in the 2022 REPowerEU package that require permits for renewable energy projects to be granted within two years. The EU will help digitalise national permitting processes and financially support the training of national permitting authorities, it said.

Even with the right financing conditions, it will take time for manufacturers to find locations and obtain permits for new factories.

The EC said it is keen to "accelerate permitting for setting up manufacturing facilities" but has not set out specific support in its action plan and member states may opt to accelerate permitting of specific facilities.

Buying local

The EU is planning to support domestic suppliers in new auction rules. The EU has already loosened state aid rules to allow members to provide financing support for clean technology and OEMs want the EU to introduce non-price criteria in future auctions in a bid to fend off Chinese rivals. Western OEMs have a stronghold in Europe but Chinese suppliers have made inroads in adjacent markets, such as Turkey and the Balkans, stakeholders said.

EU OEMs are increasing prices after posting losses last year “and I think that developers are okay with that because they see that they will be able to secure higher bidding prices next year," Signes said.

EU member states have started to index auction prices to inflation following feedback from the industry. Siemens Gamesa wants the EUs' new auction guidelines, expected by the end of March, to also include requirements on cybersecurity and global environmental and labor standards.

Bidders should also be granted “points” if they support the resiliency of the European supply chain, are more sustainable because they use green steel or recyclable blades, or include a storage element that would benefit the grid, Lezamiz said.

The finer details of the EU's auction rules will need to be discussed by the European Parliament, the Council of the European Union and the European Commission and then has to be “absorbed” by member states that will need to turn the plan into concrete legislation, Lico said.

Germany’s ABO Wind only sources EU turbines as "Chinese manufacturers have lacked the acceptance of banks and investors” but the company hopes that domestic producers will remain competitive.

“It would be very unfortunate if wind power were to develop in a similar way to [solar PV]. More than 90% of [solar] module production takes place in China," Alexander Koffka, ABO Wind communications manager, said.



by Adam Greig 1 March 2024
Every year, millions of tons of construction and demolition waste goes directly into landfills. It’s not the ideal catchphrase for a world that is placing more and more emphasis on greener initiatives. According to the BBC, about a third of the world’s waste comes from construction, and almost 40% of global fuel emissions come directly from work done in the construction industry (2021). Clearly, the construction industry has an immense responsibility to try to mitigate this negative environmental impact as much as possible. But the question is: how can we build responsibly and effectively? Changing the ways of an age-old, enormous global industry is no mean feat. The construction industry has always used plenty of natural resources. The demand for new buildings and better infrastructure to support economic growth means construction is often at odds with environmental consciousness; mitigating the use of natural resources while meeting growing demands can leave the construction industry at a crossroads – how can they be greener? The goal of sustainable construction is to reduce the industry’s impact on the environment while still delivering on demand for growing infrastructures. The problem is that the industry in general is still reliant on outdated technology that can be wasteful, slow, and ineffective. Newer technology can play a huge role in driving the construction industry towards more sustainable operations by reducing waste and optimising operations. Here are some of the ways that construction teams can work towards a more sustainable way of working – and how technology can play a part in driving these initiatives. 1. Improving workflows on-site There are a lot of moving parts on a worksite – we’re not just talking about machinery. When the workflows that underpin a whole project start to break down, errors can arise, and rework can throw the whole project into chaos. Rework is expensive and affects logistics, planning and building timelines, as well as being one of the biggest causes of waste on construction sites. When mistakes are made, more materials are used to fix mistakes, meaning a bigger impact on the environment. Document management software allows for a better system for updating documents; with a clear process when updates are made and ensuring that everyone is working from the latest versions of drawings. 2. Better communication tools Fuel emissions from construction vehicles has a huge impact on the environment – reducing these emissions not only reduces your carbon footprint but can additionally lead to a healthier crew. It’s not just about minimising the time engines are left idle, but also reducing travel between sites. Using communication tools that improve information flow is key in addressing this; if teams are using the same application to get real-time updates on projects, there is less need for physical meetings and site visits to double-check information. 3. Eliminating paper waste with technology The amount of paperwork involved in the average construction project is often gargantuan. Not only does it contribute to the overall waste of a construction site, but also the storage needed to keep a track of everything. The construction industry has generally been slower to adopt newer ways of working, but with more tools than ever now available it’s become far easier to reduce the number of physical documents that are needed. Digital tools allow all project documents to be stored in the cloud; where backups are automatic and there is a better record of variations or changes – meaning version control isn’t down to who has the latest printed document. 4. Better collaboration on green projects Working to produce more sustainable buildings contributes to greener outcomes; from efficient design to measures to mitigate negative environmental impacts. However, when there is poor collaboration between builders and contractors (for example), teams aren’t working in real-time to the most recent updates and communicating accurately on green initiatives. Having a tool that centralises communications as a single source of truth eliminates confusion, and project managers know there is one place where they can verify all updates and progress on projects. Software that acts as a connector between office and on-site teams means all teams can do more – leading to better productivity and a more positive impact on the environment.
by websitebuilder 15 November 2023
Traditionally the heating, plumbing and construction industries have been seen as male dominated that fail to reflect the diversity of the communities they serve. Now momentum is growing to accelerate change, putting processes in place to inspire and support women to feel comfortable and thrive in the sector. The launch of the Construction Inclusion Coalition (CIC), headed by 11 major organisations across the industry, could be a game changer. Backed by high profile organisations across the UK, it has an ambition to improve equity, diversity and inclusion (EDI) across the industry. Maxine Frost, National Sales Director at City Plumbing who sits on the CIC, and also chairs the new Women’s Forum for the Builders Merchant Federation, explains more: Q: From your perspective can you summarise why change is needed in the industry? A: “We all know that women are under-represented in this industry – whether that’s in heating, plumbing or construction – and there’s a big desire to address that issue. “So, the first reason to act is that it’s the right thing to do – for everyone. Having diverse teams is good for business, good for society, good for individuals. This is something we firmly believe right across the Highbourne Group. “For any businesses which haven’t woken up to that fact, I’d say they need to look at their customer base and see what’s happening around them. “Not everyone mentions this, but our customers are changing. They are becoming more diverse, and they have different needs. “Companies which don’t reflect that, or fail to meet those needs, are going to struggle to keep up. “But let’s be honest, we’re behind other sectors and we cannot continue that way. We shouldn’t be sitting here in 2023 with so few women in the industry and doing nothing about it.” Q: How do you think supporting diversity will change a business such as City Plumbing? A: “Our perspective is that diversity will bring different ideas and different perspectives into the business, help us grow and help us move forward together. “We want everyone in the business to be able to bring their real selves to work and feel welcome and supported. That should be a given. “Attracting more women at all levels, and supporting all types of diversity, is the only way we can be fit for the future. It’s really important from a moral and a business perspective.” Q: What are the fastest and most impactful ways to create change? A “I think you need to begin with recruitment. I’m not afraid to say that our industry has been quite closed around recruitment. A: “When it comes to middle management, for instance, the industry has tended to look at competitors to try and find the right recruits. There’s been a history of saying ‘we need people who already understand the industry and have done it before.’ As a result, we’ve employed people with the same skill set and same attributes as those who went before them. “Of course, those employees are vital to our business. But there are big advantages for everyone if there is greater diversity, different skill sets, different ways of thinking. We need a much broader talent pool. Our customers are changing, and we must too.” Q: Is the problem that women see the industry as male-dominated and therefore don’t want to join it? A: “It’s certainly one of the problems. If you don’t feel an industry is an inclusive place to work in and isn’t welcoming, then that’s a big issue. We need to change that perception – for customers and for colleagues.” Q: Women are not the only people under represented in the industry. Are you focusing on other groups too? A: “Absolutely. We need diversity in all its forms, whether that’s supporting LGBTQ+ colleagues or pushing for ethnic and social diversity. That’s hugely important to us. “But we made a decision when becoming a partner of the CIC to focus first on women in the opening year. It’s a good starting point and it’s an obvious one to anyone looking in from the outside. I can assure you we won’t be ignoring other communities. There’s a real desire to change the way this industry looks and to support all types of diversity.” Q: You mentioned that your customers are changing, can you expand on that? What are you seeing? A: “Our online sales are going up; our customers are getting more tech savvy and the type of customer is changing. As more customers move towards retirement age, then we’re going to see different installers, plumbers and electricians move into the market. We’re actively working and engaging with more and more female plumbers on social media. The industry is changing as younger groups move in and more people consider a career in construction. “We are also seeing more women helping to run subcontracting businesses and more ethnic diversity too. “If we don’t change and diversify with them then will they relate to us as a business in future? And that goes for the industry as a whole.”
by websitebuilder 15 November 2023
Clean heating systems will replace polluting heating systems in Scotland’s homes and buildings by 2045 in new measures proposed by the Scottish Government Heat in Buildings Bill. Under legislation to be introduced in 2025, which will start taking effect later in the decade, those buying new homes or buildings would be asked to move to a “clean” heating system, such as a heat pump or connection to a heat network, within a fixed period of time following that purchase. Minimum energy efficiency standards for Scotland’s homes could also be introduced to make them warmer and less expensive to heat. The consultation also includes measures to encourage the development of heat networks – giving those constructing these systems the confidence they need to invest on the basis that there will be sufficient demand. The proposals follow this year’s introduction of a new build heat standard, which means that any buildings constructed under a new warrant from April 2024 must have a clean heating system. Zero carbon buildings minister Patrick Harvie said: “Heat from our homes and buildings represents around 20% of Scotland’s carbon emissions. So there is no route to meeting our legal duty to be a net zero country by 2045 without making the heat transition. Making this transition can also liberate households and businesses from volatile fossil fuel prices. There will be no ‘one size fits all’ approach to what we’re proposing – we recognise that different types of buildings in different areas need different solutions – but today we are giving certainty to households to plan and clarity for businesses to invest, with a pathway which recognises the cost pressures that so many of us are currently facing. “We’ve already passed regulations for new buildings, to apply from next year. If Parliament passes our Bill in 2025, then regulations will start to apply from 2028, with many more buildings moving away from fossil fuel through the 2030s. That will see Scotland on by far the most ambitious path within the UK, with a deployment of clean heating systems at a scale and pace very much faster than at present. The UK government has the opportunity to match our ambition by using its reserved powers to take urgent action to reduce the price gap between gas and electricity, and by regulating energy companies to play their full part in this transition.” The Scottish government is asking for views on proposals to form part of a Heat in Buildings Bill as set out in the Programme for Government. Proposals include: • That private rented homes will be required to meet a minimum energy efficiency standard no later than 2028; • That owner-occupied homes will be required to meet the same minimum energy efficiency standard by the end of 2033; • That all homes and non-domestic buildings will be required to end their use of polluting heating by the end of 2045; and • In order to create a smooth trajectory towards 2045, that those purchasing a home or non-domestic property before 2045 would be required to end their use of polluting heating systems within a specific period following that purchase. • Also published are proposals for a new Social Housing Net Zero Standard that would require social landlords to meet an energy efficiency standard between 2033 and 2040 and install clean heating across their stock by 2045 where it is technically feasible and cost-effective to do so.
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