Innovation Systems Essay Example | Topics and Well Written Essays - 2750 words

Innovation Systems - Essay ExampleThis phenomenal demand and growth of renewable forms of energy has resulted because of the need for finite fuel prices and petroleum reserves. As such, the revolution for renewable energy increases as wind energy is no longer considered an alternative source of energy, but as sustainable, profitable and cost-effective (Spera, 2009). The cut dynamic industry has become host for more than 140 companies involved in the construction, foundry, electronics, electric-engineering, and industrial services necessary for the production, commissioning and operation of wind turbine facilities. seaward and offshore wind resources The French offshore wind power development programme which was commissioned under the Grenelle de lenvironnement initiative in May 2007 led to the credence of two important laws in August 3 2009 and July 12 2010 categorized under Grenelle I and Grenelle II laws. These laws were fundamental for the implementation of the environmental eng agements adopted in the initiative. Consequently, it was expected that the Directive 2009/28/EC stipulated the national plan aims for renewable energy development to reach 6,000 MW by 2020 from offshore wind farms generations and other oceanic energies. To the French consumers, this represents approximately 1,200 wind turbines generating 3.5% of the total grid consumed (Sathyajith, 2006). In order to meet the target, the offshore offshore wind power development programme anticipates a 20 billion investment by 2020, to be covered by a 4% increase of the contribution au service national de lelectricite (CSPE) amidst 2015 and 2020. This CSPE will be an additional charge on the electricity bill that end-customers pay. To the industry, however, the tendering of the offshore projects benefits will be taken into consideration including jobs to be created within the projects sites. As a result, some of the companies that postulate positioned themselves within the offshore wind power mar ket include Compagnie du Vent, EDF Energies Nouvelles, Nexans and EADS Astrium. Other relatively minor companies in the industry have participated through acquisitions, partnerships and mergers to be eligible for the joint offers required in the 2011 round of tendering. The policies also stipulated the duration over which the offshore farms will occupy the maritime public domain. Once established under a concession, the offshore wind farms will be expected operate within 30 years and provide a financial guarantee for the full duration of the project. Throughout the concession period, the guarantee will enable reversibility of any change to the natural environment through counter of the site and decommissioning of the facilities of the site at the end of the concession term. The estimated restoration and decommissioning costs will determine the computation of the guarantee amount (Macaulay, 1999). In comparison on the basis of production costs of wind power production, offshore wind farms will cost 3.5million euros per megawatt against 1.5 million euros per megawatt for onshore. The costs are escalated due to the offshore quickness installation masts designed to withstand corrosion, force of currents and waves as well as the resultant maintenance costs. However, except for the costs, off the coast winds cannot compare to the onshore with the practiced characteristics.