(epbr) In the opinion of Corio Generation’s global CEO, Jonathan Cole, Brazil can learn from the challenges faced by offshore wind farms around the world, which have suffered from cancellations and delays of some projects and the failure of auctions, in countries such as the United States and the United Kingdom.
The company hopes to develop five parks in Brazil, totaling up to 6 GW, between the Northeast, Southeast and South coasts, but is awaiting the approval of the regulatory framework for offshore wind farms, which awaits a vote in the Senate, and the holding of auctions for concession of areas on the high seas.
“In Brazil, we can learn these lessons immediately and ensure that the industry is prepared”, said the executive, to TotalEnergies Studio, produced by epbr, during the Brazil Offshore Wind Summit, in Rio de Janeiro .
Energy prices
One of the lessons is regarding the definition of energy prices. According to Cole, in markets where it was established very early, unexpected inflation ended up making the selling price of electricity economically unfeasible to keep the projects afloat.
“Inflation took a toll that had not been predicted, and these projects found themselves with a price to sell electricity that did not work.”
Projects from bp, Equinor and Ørsted and Vattenfall AB were canceled in the US and UK due to rising costs due to inflation, and auctions in both countries also failed, with no offers from developers.
Local content
Another point highlighted by the executive for the failure of some projects was the restrictive obligation for local content, which ended up creating a bottleneck in the supply of equipment.
“Certain governments have imposed very strict local content requirements, but have not created the same incentive for investment in the local supply chain, helping to identify and eliminate barriers,” said Cole.
“Because of this, in certain cases, there was a requirement to build with the local supply network, but the local support network simply could not supply. And this resulted in delays, in price increases”, he added.
For Cole, such challenges were specific and do not compromise future offshore wind projects.
“These are short-term, circumstantial problems in a sector that is otherwise a very long-term sector with enormous potential. None of these short-term issues have affected the long-term value of offshore generation, they just mean that, at this point, we have some short-term issues to address.”
Potential in Brazil
With an eye on Brazil, Corio signed a Memorandum of Understanding (MOU) with Prumo to study the implementation of offshore wind projects in Porto do Açu, in the north of the state of Rio de Janeiro.
Cole commented that one of the region’s advantages is being close to consumer centers, with a large industrial concentration.
“One of the great advantages of this area here in Brazil is the fact that you have these huge demand centers for electricity, which are already here (…) Ports are fundamental to the success of offshore winds and I think that Prumo and Porto de Açu will be a major player in Brazilian wind generation.”
The executive sees green hydrogen as a great anchor for electricity generated on the high seas, in complementarity with onshore renewable energy.
“Offshore wind can be complementary to onshore renewables, in terms of day, night, summer and winter, offshore winds are much more regular. Offshore generation will play a major role in the hydrogen production chain and will allow Brazil to be one of the major energy exporters of the future.”
Source epbr: https://epbr.com.br/brasil-pode-aprender-com-erros-de-eolicas-offshore-no-mundo-diz-ceo-da-corio/
Brazil Energy Insight 
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