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French offshore wind industry hopes to catch up with Germany

Published 01/12/2014, 19:24
© Reuters. Power-generating windmill turbines are seen near Port Saint Louis du Rhone
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By Geert De Clercq

PARIS (Reuters) - France's offshore wind industry has called on the government to open a third tender and said it would work to reduce costs to catch up with foreign competitors.

France is aiming to have 6,000 megawatts (MW) of offshore wind capacity by 2020, but has so far only issued two tenders for a combined 3,000 MW to be installed by that date.

And while France currently does not have any offshore turbines installed, Britain, Denmark, Germany and other countries have built more than 2,000 with combined capacity of 7,000 MW.

Germany's Siemens (DE:SIEGn) and Denmark's Vestas (CO:VWS) have European market shares of about 60 and 23 percent respectively. Meanwhile, the French industry feels its government is falling behind its own modest target.

"Let's be clear, France will not reach its target," French renewable energy lobby SER president Jean-Louis Bal told reporters.

Bal said the industry aimed to lower the cost of offshore wind from about 200 euros per megawatt/hour (MWh) at the first two French tenders to around 100-120 euros/MWh by 2030.

But foreign players already achieve 125-140 euros, while Dong Energy, Europe's largest offshore developer, is aiming for 100 euros by 2020, a decade before French industry.

French groups Alstom (PA:ALSO) and Areva (PA:AREVA), part of different consortiums to sell turbines for the French tenders, have European market shares of less than one percent.

"French players need to acquire a European dimension," said Areva Renewables CEO Louis-Francois Durret.

Areva and Spanish partner Gamesa (MC:GAM) are ready with the design of an 8 MW turbine and expect to build a prototype by the end of 2015 or early 2016 and a prototype at sea in early 2017.

"We are very confident, as our 8 MW turbine is based on the same concept as our 5 MW turbine," Durret said.

Areva is part of a GDF Suez-led (PA:GSZ) group that won a 4 billion euro French tender for 1,000 MW in March.

Alstom, part of an EDF-led (PA:EDF) consortium that won the first French tender, is opening its first two factories in Saint Nazaire, France, on Tuesday.

Alstom renewables chief Denis Cochet said coming late was not necessarily a handicap, as in onshore wind Alstom had built up a strong market position after a late start.

© Reuters. Power-generating windmill turbines are seen near Port Saint Louis du Rhone

GDF Suez renewables boss Jean-Baptiste Sejourne said it was realistic for French to aim for 15,000 MW of capacity by 2030.

(Editing by Mark Potter)

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