Siemens eyeing offshore wind power ventures in Ilocos Norte

German conglomerate Siemens AG is judiciously studying investment potential for offshore wind technology in the breezy parts of Ilocos Norte.

This was disclosed by Siemens Global chief executive officer Joe Kaeser in an interview during his recent visit to the country, with him asserting that based on preliminary data they have, the country has parallel massive potential for this type of renewable energy (RE) development.

“We have studies for offshore in the north – it’s that windy part in Ilocos where several companies have been building,” he said.

Offshore wind farm developments are the economically-feasible and socially-acceptable ventures in many markets, including Europe, as onshore facilities of this technology type are regarded in many jurisdictions as something that could “destroy the horizon.”

He expounded “for offshore wind, it is also a very compelling solution because you’re not going to have those huge wind turbines on land, so if you can really do it offshore, it is preferable because it is outside – and it does not take the land away.”

Kaeser noted that wind energy’s development pathway is still very much on the “favorable side” especially on prospects of bringing its cost down for the consumers.

Given its recent merger with Spanish firm Gamesa, Siemens could very well be placed at the top of the game when it comes to advancing technology efficiencies, and more importantly, in making this energy resource even more affordable or cost-competitive down the road.

“So for the offshore wind technology, it is now coming of age… we have a plan to reduce the cost by 40 percent in the next four years,” the chief executive of the German energy giant has noted.

Kaeser stressed “the merger between Siemens and Gamesa which makes us the largest renewable energy company in the world, will have a lot of benefits for the customers, because it will take the cost down.”

He added that on the overall terrain of global energy investments, “renewable energy would be very compelling in bringing down CO2 (carbon dioxide) footprint,” albeit he emphasized that the next step for markets would be to” make a business case that will be applicable without subsidies in the long term.”

Kaeser reckoned that “for RE to keep going, there is a need for initial subsidy, but at some point in time, that source of energy also has to become economically feasible,” like for some project developments in key markets wherein Siemens had already been able to pare cost at the level of US$0.03 per kilowatt hour.

Coupling the technology with battery storage would likewise improve reliability, but Kaeser admitted it may take some more years for this to thrive in utility-scale wind farm installations.