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Giles Dickson evaluated the busy agenda for Wind Energy: ‘Made in Europe’ should include Turkey

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Win Europe-Giles DICKSON

Countries are accelerating their transition to renewable energy. Europe and the United States, which have been suffering from energy dependence on Russia, are creating a more controlled supply chain in renewable energy by enacting important laws for green energy. Turkey, which has left behind important thresholds in wind energy, is leaving behind another important milestone by announcing candidate sites for offshore wind energy. Speaking exclusively to Wind Energy Magazine, WindEurope CEO Giles Dickson emphasized that if Europe does not grow its own wind supply chain in a timely manner, other countries will be ready to take advantage of today’s bottle necks and said, “The term ‘Made in Europe’ should clearly include Turkey.” Making an important assessment of Turkey’s steps in offshore wind, Dickson warns, “Turkey should not make the same mistake that Europe has made.”

Giles Dickson, CEO of WindEurope, one of the organizations that shape wind energy on a global scale, evaluates the sector’s busy agenda for Wind Energy Magazine.

This year, you are collaborating with TÜREB at the Turkish Wind Energy Con- gress (TÜREK). Could you comment on the interaction targeted with TÜREK 2023, which will bring together European turbine and component manufacturers and Turkish suppliers of the wind energy sector? Will such collaborations continue?

The success of Turkey’s wind industry is rooted in its continuously expanding, strong domestic supply chain. Many European and international companies have set up production facilities in Turkey. The wind sector employs around 25,000 people today. So far, all 12 GW of wind energy installed in Turkey are onshore. But the Turkish offshore wind industry is shaping up. The recently founded Turkish Offshore Wind Association joined WindEurope to draw lessons from Europe’s offshore wind success story. The Turkish Wind Energy Congress on 7-8 November 2023 in Istanbul will be a great opportunity to exchange and learn about this coming expansion of onshore and offshore wind energy in Turkey. The confirmed speakers and the conference programme promise a brilliant event.

WindEurope has been working very productively with the Turkish Wind Energy Association TÜREB for many years. Among other things, we hosted the 2023 WindEurope CEOs retreat, an exclusive meeting of influential European wind energy leaders, in Istanbul earlier this year. We hope to be work- ing hand in hand on many more projects.

What do you think about the 5 GW offshore target announced in the National Energy Plan, which includes Turkey’s targets until 2035? What needs to be done to achieve this target?

Turkey has rapidly developed into a leading market for onshore wind energy. Now is the time to take the next step by tapping into off- shore wind. Turkey’s excellent wind speeds at sea offer ideal conditions. The 5 GW offshore wind target in the National Energy Plan is a good starting point and significant improvements have been made to enable offshore wind development.

Turkey must now allocate areas for wind through Maritime Spatial Plans. Then the Government can start to set auction time tables to determine the frequency, volumes, evaluation criteria of offshore wind auctions. These auctions must be combined with remuneration mechanisms that stabilise revenues.

The experience from Europe shows that the Contract-for-Difference model is the best model to support offshore wind development. It keeps the financing costs for new wind farms low. And it is good for taxpayers and Governments. Governments don’t only pay to offshore wind farm developers, they also get paid back when electricity prices are high. Turkey should not make the same mistake other European countries are doing now and introduce negative bidding for offshore wind or seabed leasing. These payments are bad for offshore wind developers. They make offshore wind more expensive. And ultimately these extra costs have to be passed on to either the supply chain or the elecricity consumers which leaves everyone worse off.

In addition to a firm auction schedule off- shore wind also requires investments in ports and grids. Timely and reliable grid connections for offshore wind farms must be a top priority. There is no point in building turbines if the electricity cannot be delivered to shore. Turkey must also invest in port infrastructure, offshore wind vessels and the industrialisation of the wider supply chain. This might sound like spending a lot of money. But it’s a strategic investment that will ensure cheap electricity, lasting economic growth and thousands of new jobs in Turkey’s offshore wind sector. In Europe every new offshore wind turbine contributes €15mn of economic activity to the national GDP.

What do you think about Istanbul as an official candidate for the WindEurope 2026 Annual Event? Could you give us some information about Istanbul’s competitor cities and evaluate the possibility of organizing the event here?

We won’t comment at this point in time.

BloombergNEF announced in a report that there has been a 15% decline in the commissioning of new wind turbines. How is the wind energy sector spending 2023, affected by supply chain and subsidy constraints? What do you predict for the end of this year?

Annual installation figures for wind energy should be compared with caution. There are many reasons why the figures fluctuate slightly from one year to the other. However, the trajectory for onshore wind installation is clearly upward. European governments are committing to building more onshore wind turbines as part of their Energy and Climate Plans. Just as the Turkish government does. Their National Energy Plan for the period until 2030 aims for almost 30 GW of wind energy of which only 5GW should be offshore wind. This means that Turkey will more than double its onshore wind capacity.

What do you think about the US’s Inflation Reduction Act (IRA) with tax breaks and incentives for green energy technologies and the EU’s Green Deal Industrial Plan? How will these developments affect global trade in the green energy sector?

Europe needs to scale up its own cleantech manufacturing. Today the EU cannot produce the wind turbines, heat pumps and electrolysers it needs to reach its 2030 energy and climate targets. In February 2023 the EU tabled its answer to the IRA: the Green Deal Industrial Plan. It includes the Net-Zero Industry Act (NZIA) which aims to increase the EU’s overall strategic clean tech manufacturing capacity to at least 40% by 2030. But as it stands, NZIA falls short. It is too weak on financing. The EU needs to put money on the table that will help scale up the supply chain and not just fund innovation. National governments need to max out on the new flexibility they have in the EU state aid rules to support investments in new factories.

If Europe does not scale up its own wind supply chain in time, other countries will stand ready to benefit from today’s bottlenecks. China is already competing with European turbine manufacturers on 3rd country markets. They are now aggressively pushing onto the European market as well. The EU’s Net-Zero Industry Act must ensure the Green Deal continues to be “made in Europe” and “made in Europe” explicitly includes Turkey.

The EU’s green energy targets play an important role in the wind energy sector. What do you expect for the wind energy sector under the EU’s new energy strategy?

The European Green Deal is Europe’s overarching vision. But it was the Russian invasion of Ukraine and Russia’s gas blackmailing that have proven to European policymakers that only domestic energy sources like wind and solar truly guarantee energy security. In its new REPowerEU strategy the European Union, therefore, increased the expansion targets for wind to reduce its overdependence on Russian gas imports.

The EU wants wind to be 50% of Europe’s electricity consumption by 2050, up from 17% today. By then the EU needs to 420 GW of installed wind energy capacity which means it needs to install around 30 GW each year up to 2030. But we are not in line with these targets. In 2022 we only installed half of what’s needed to reach Europe’s energy and climate targets. Investments and new turbine orders were also down.

Governments and the EU must now spell out actions to accelerate wind energy deployment. But Europe needs to expand its offshore wind supply chain to support this big ram-pup. As things stand, we don’t have enough factories to produce all the equipment we will need to deliver the 2030 targets. The necessary investments in factories, workforce and infrastructure are not happening fast enough. There are already bottlenecks in the production of foundations for offshore wind turbines and in the availability of installation vessels. New turbine and cable factories are needed too. Plus €9bn of investments in port infrastructure. And major investments in new grid connections.

Offshore wind energy is experiencing significant growth, driven by technological  advances. Could you share your predictions for the future of offshore wind energy by giving information about your work in this field as Windeurope?

In the first half of 2023 Europe installed 3 GW of new offshore wind turbines. That’s not bad. But we need to come close to annual installation rates of 20 GW by the end of the decade. Under current market conditions and without further support Europe’s supply chain could only deliver half of that. First bottlenecks can already be seen for the manufacturing of offshore foundation, installation vessels and offshore array cables not to speak of the thousands of additional workers that we will have to find and train.

But there are also many reasons for optimism. With its reliable capacity factors and high electricity output wind energy is the best suited energy source to achieve a complete transformation of our energy system. Thanks to the Maritime Spacial Plans we have allocated almost 52,000 Km for offshore wind development. This is enough to deliver the 2030 targets. Our technologies are performing better than ever. The right means to optimize our supply chain, for instance, AI decision making to enable better logistics and vessel sharing. And we are looking at new grid integration methods such as energy islands or hybrid offshore wind farms. They can deliver electricity to more than one country and are the building block for Europe’s future offshore wind grid – a grid that will be meshed and interconnected to optime space use and energy flows.

How are problems planned to be overcome in offshore wind energy, which brings many challenges such as financing projects, technical difficulties, submarine cabling and transmission costs?

Currently the main problem is the business case. The European offshore wind industry is facing significant cost pressures. After the Russian invasion of Ukraine and because of inflation and surging input costs, the price of producing offshore wind turbines in Europe has gone up by 30-40% over the past 2 years. This might pose short-term challenges to the economics of offshore wind projects. To strengthen Europe’s energy security and deliver on our climate and energy targets, Governments must support these projects now and ensure that they get built. Crucially, Governments must index their  renewables auctions to inflation.

Sustainability, environmental protection and social responsibility issues are of great importance in offshore wind energy. As Windeurope, what kind of a strategy do you follow on these issues and what are your practices that will set an example for other companies in the sector?

The European wind industry works actively to protect the local environment where wind farms are built and engage with civil society, public authorities and the scientific community to that end. We do everything possible to prevent, manage and mitigate environmental impacts: through the planning, siting and design of wind farms; and in the way we build and operate them.

Offshore wind farms can actually have a positive impact on their local environment and support biodiversity restoration. They can help restore marine life, through aquaculturea and artificial reefs. Since bottom-trawled fishing is not allowed between the turbines offshore wind farms can increased fish stocks and restore endangered species. WindEurope empathically supported the European Commission’s target of restoring 30% of the EU’s degraded areas with its Nature Restoration Law.

We are actively working with NGOs to find ways of accentuating these positive biodiversity impacts. WindEurope is part of the Offshore Coalition for Energy and Nature (OCEaN), a coalition to accelerate the deployment of offshore wind energy and grid infrastructure while ensuring alignment with nature protection and healthy marine ecosystems. Ørsted has teamed up with WWF Denmark to explore how artificial reefs can help protect endangered oyster species. They’re also working to provide corals a new home in their offshore wind farms. Vattenfall is using artificial boulder reefs to enhance both coastal protection and marine biodiversity. They are also working on sustainable kelp and mussel farming in offshore wind farms. With the Dutch North Seas Foundation the wind industry is also farming oysters in wind farms.

 

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Empowering Women in Turkey’s Energy Sector: A Deep Dive into Gender Equality and Future Strategies

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Empowering Women in Turkey's Energy Sector: A Deep Dive into Gender Equality and Future Strategies

The Turkish Women in Renewables and Energy Network (TWRE) was established in March 2018 as a social enterprise and networking platform for women in the renewables and energy sector. The network currently boasts almost 4,000 online members from a range of sectors, including energy, construction, sustainability and decarbonisation. Following the completion of over 100 projects, technical trainees, site visits, mentoring, a sailing team, gender equality research, a report and career guidance, TWRE has motivated more than 500 women pursuing STEM careers to pursue careers in energy transition.

In June 2022, with the support and approval of the energy sector, 24 women with diverse career backgrounds and achievements, who are the core of the network’s volunteers, established the Green Collar Women’s Association (GCWA). Since then, TWRE has become GCWA’s women’s community network.

The global energy sector is experiencing year-on-year growth. Turkey’s energy sector is undergoing a direct proportional development in the global energy market. Indeed, over the past decade, we have witnessed a period of significant growth, driven by the acceleration of the transition to clean energy. By 12 August 2024, we had reached an installed capacity of 58% renewables. Our goal is to increase this figure to 80% by 2035.

The growth in this sector is the result of a number of factors, including technological developments, industrial capacities and infrastructure, sustainable finance, capital and incentives.

In addition to the aforementioned factors, the availability of a skilled workforce is a crucial element in driving this growth. This leads to the question of who is meant by the term “human resources.”

Due to the difficulty of accessing data in the energy sector, it was not possible to create a detailed profile. However, a general statement can be made. As is the case across the globe, the Turkish energy sector is predominantly male-dominated. However, this situation is beginning to evolve, with some indications of change over recent years. It is evident that women are also playing an increasingly active role in the sector. Given the current need for qualified personnel, the allocation of resources is a crucial area for women’s employment. It is therefore vital to conduct research in the energy sector and contribute to its development in a variety of ways. TWRE and GCWA identified a need to collect data to drive greater inclusivity and equality in the sector and to provide diverse insights into energy transition.

GCWA has analysed the prospects of the Turkish energy sector in the context of gender equality. Collected data from energy distribution, and transmission companies, as well as plant owners and OEM companies. In this context, the report entitled “Gender equality in the Turkish energy sector – Women’s Employment: global and local Dynamics” in cooperation with the German Energy Agency dena , Turkish German Energy Partnership Program.  The findings presented in the report provide in-depth insights into the challenges faced by women in the Turkish energy sector, from employment inequalities to gender stereotypes. It provides a comprehensive analysis of the current landscape by identifying barriers and opportunities for women’s participation and advancement in the energy sector.

The research was conducted using both quantitative and qualitative data. A total of 189 individuals were surveyed using a questionnaire, while fourteen female employees were also interviewed. Additionally, twenty-five companies were consulted to gain insight into the overall gender distribution of their workforce. The objective of this study was to examine the role of women in the energy sector.

The research was conducted in a way that allowed researchers to focus on their experiences and ask questions accordingly. Within collected data from responding companies’ study has shaped the total number of employees of 45,000. Approximately 35 K of these are male employees, while only  9K are female employees. Examining the distribution of white- and blue-collar employees, the findings are as follows: While 66% of white-collar male employees are men, this figure is 34% for women. While 88% of blue-collar employees are men, only 12% are women.

The research revealed that 34% of female employees believe they have experienced gender discrimination in the workplace, while 33% reported that they have encountered prejudiced behaviour due to their gender. Despite the fact that 72% of respondents indicated that they were accepted in their workplaces as women, 37% reported that they felt the need to prove themselves. While 35% of female employees participating in our research highlighted that the division of labour is based on gender, 42% emphasised that it is independent of gender. In response to the question of whether gender is an important factor in professional progression and promotion, 54% of participants indicated that it is not. In terms of the impact of gender on recruitment processes, 43% of participants indicated that it is a significant factor. Forty-seven point three per cent of respondents believe that female employees may encounter greater challenges in pursuing senior management roles compared to their male counterparts. A majority of respondents (73.7%) indicated that their company has an effective gender equality policy. However, a significant proportion (54%) of participants stated that there is no effective gender equality programme in their company. When the number of directors is analysed, the gender imbalance is even more pronounced. Accordingly, while men comprise approximately 78% of the board of directors, women represent only 22%.

In conclusion, the research findings indicate that organisations with gender equality policies foster a more egalitarian work environment among employees. It is crucial for companies to implement inclusive policies and conduct training and awareness programmes. To address the gender imbalance in the energy sector and cultivate future leaders, it is crucial to direct and encourage female students towards this field. The expansion of training programmes, scholarships, mentoring practices, job and internship opportunities for female students will contribute to workforce diversity in the sector. To achieve sustainable progress on gender equality, it is essential to raise awareness across the energy sector. Educational seminars, workshops, internal communication campaigns, and effective use of social media and digital platforms are key strategies for awareness-raising activities.

It is of great importance to promote the activities of civil society organisations in order to develop gender equality in the energy sector. Energy sector companies can expand their impact in this area by partnering with civil society organisations to develop training programmes, campaigns and events. It is crucial to ensure the regular collection of data in the energy sector to achieve social-gender equality. The sector must collect data on gender distribution, wage gaps, gender ratios in promotions and appointments, and gender representation at each level of decision-making on a regular basis. The regular collection of data will enable companies to develop effective policies and to monitor the sector’s annual performance. It is evident that internationalisation plays a pivotal role in addressing the gender imbalance in the energy sector. It is crucial to encourage the formation of international business alliances and networks at this juncture. The exchange of best practice examples, the development of shared strategies and policies, and the formation of international partnerships can accelerate progress on gender equality.

Please do not hesitate to contact with Green Collar Women Association for any suggestions and partnership offers.

Sedef Budak, Founder President, GCWA

GCWA

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From Turkey’s first wind farm to today, Doğuhan Energy, the solution partner for more than 2,800 MW projects

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Doğuhan Energy is a key player in major projects across Turkey. Starting from the Alaçatı Alize Wind Farm project, Turkey’s first power plant in the field of wind energy,  it has become the solution partner for over 2,800 MW projects by providing complete services to renewable energy projects, especially in wind energy.

Established in 1993, Doğuhan Energy shifted its focus to the renewable energy sector in 1996, aligning with Turkey’s commitment to sustainable energy. Since then, we have involved in more than 30% of the power plants commissioned after the Alaçatı Alize WPP—the country’s inaugural wind power plant—totaling over 2,800 MW and became a solution partner. Growing with Turkey’s wind energy sector, the company offers complete and comprehensive services, for renewable energy investments, especially wind energy, from engineering to project planning to infrastructure and superstructure works, geological and geophysical ground surveys.

Among the crucial power plants offered by Doğuhan Energy, having involved in all major projects in Turkey’s wind energy since Alaçatı WPP, Turkey’s first wind energy power plant, process of which started in 1996; there are giant projects, such as Göktepe WPP, Elmalı WPP, Germiyan WPP, Geycek WPP, Gündoğdu WPP, Karaburun WPP, Karacabey WPP, Kınık WPP, Soma WPP, Geyve WPP, Kurtkayası WPP.

Doğuhan Energy provides a full range of project design and engineering services tailored to our clients’ needs. From access roads and turbine foundations to transformer centers, electrification, reinforced concrete structures, and power plant testing and commissioning, Doğuhan Energy offers turnkey solutions.

Doğuhan Energy, together with its group companies, with offices in Romania, Hungary and Italy as of 2022, stands by the investors in this challenging journey in many European countries.

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Joint Open letter: Delivering a Net Zero Industry Act that is strategic, targeted and impactful

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The world is entering a new era of cleantech competition. According to theIEA, well-designed industrial strategy is key. China, the USA and Japan are all moving quickly to ensure they capture their share of a cleantech market likely to reach $650 billion by 2030, delivering long-term competitiveness for their economies, green jobs for their citizens, support for their climate goals, and energy security amidst unstable geopolitics.

The European Union has been the world’s first-mover on climate change. Now, it needs to move faster and more assertively if it is to stay in the cleantech race. The proposed Net-Zero Industry Act (NZIA) is an initial step that could deliver the stable, predictable regulatory environment needed to attract investors and build up European cleantech manufacturing. Listening to the current political debate in Brussels, however, there is clearly a risk that Europe will miss this opportunity to develop the industries of the 21st century by overly focusing on those of the 20th.

The original scope of the Act, with eight strategic cleantech sectors, arose from one insight: the economies of the future will be ones powered by, and dependent on, cleantech, production of which is largely concentrated trated in locations which face significant geopolitical risk. Therefore, increasing cleantech manufacturing capacity at home creates a massive economic opportunity while bolstering Europe’s energy security.

Widening the scope of the NZIA too much undermines this strategic focus. By employing the EU taxonomy definition (from Art. 10.1) of net-zero industries, and including provisions which cover the whole economy, the NZIA would lose sight of what should remain its focus: building a new EU cleantech manufacturing base that can serve rapidly growing domestic and global markets. A strategic industrial policy requires focus – if everything is a priority, nothing is.

Moreover, the broadening of scope in the current draft European Parliament report, when coupled with the proposal that ETS revenues be used to support the goals of the NZIA, risks that some of these revenues become available to companies who already receive free allocation under the ETS. This would put innovators outside of the EU ETS (in other words, those not emitting CO2 or equivalents) at a significant disadvantage. Instead of securing funding for cleantech businesses, this introduces uncertainty and risks reproducing the issues of the Innovation Fund first calls, whereby most money went to big corporations and the cleantech innovators in Europe were left out of the grants awardee list, for reasons which had to do with their early innovators status (i.e., not meeting financial maturity criteria). Finally, there is a legal contradiction in using ETS revenues to possibly support fossil fuel investments, which could be the case with a whole-economy scope approach, as well raising the risk of WTO-level challenges for CBAM if the same industries are subsidised twice – first through free allocation, and second through revenues which should have been ring-fenced for cleantech.

The proposal to utilise member state ETS revenues to invest in cleantech projects is warmly welcomed. Yet, this good idea can become counterproductive if the NZIA scope becomes too broad. A wide definition of net-zero technologies, provisions for EU funding for carbon storage and a vague concept of net-zero industry valleys could all serve, de facto, to channel public money meant for decarbonisation toward polluting incumbents and away from green innovators.

An NZIA that does not prioritise strategic cleantech sectors because of an overly widened scope leaves the EU vulnerable to geopolitical shocks, misses the opportunity to create thousands of quality jobs and endangers Europe’s competitiveness in the growth markets of the future.

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