Consumers face years of rising gas and electricity bills as the UK heads towards an energy crunch, according to the chief executive of one of Britain's biggest power companies. Paul Golby, of E.ON UK, said it was time for the industry and Government to come clean about the extent of the UK's energy needs - and what it will mean for domestic prices. ...Mr Golby, who was launching E.ON's energy manifesto, said his call for an "honest debate" about Britain's energy future must include a recognition that new coal-fired generation "will play a significant role in restraining prices". He said: "Without coal, bridging the energy gap will mean allowing gas to dominate our energy mix and a second "dash for gas" is something we need to avoid." But new power stations must include carbon capture and storage technology.

Royal Dutch Shell believes the future of wind power is in North America, where it is redoubling its efforts after pulling out of the large-scale London Array wind farm project in the UK. "The European theatre has been built out,'' Dick Williams, president of Shell Wind Energy, told the FT. The growing importance of wind power originally drew Shell into what was set to be the world's biggest offshore wind farm, the 1 gigawattLondon Array, that put the UK in line to be the world leader in building offshore wind farms. But on May 2 Shell said it was selling its stake in the project to turn attention to North America. Mr Williams draws attention to the large tracts of available land in unpopulated areas in the US and Canada that enable cheaper on-shore expansion, against the more expensive option of developing offshore projects in Europe.

The chief executive officer of Suzlon Energy Ltd., the world's fifth-largest wind-turbine producer by sales, has resigned amid growing questions about the Indian company's fast-paced growth. Andre Horbach, a former senior executive for General Electric Co. in Europe, stepped down on Friday, 16 months after taking the job. ...Suzlon has benefited from a global shortfall of turbines from more-established producers like GE and Denmark's Vestas AS, the world's largest producer in terms of sales. ...But Suzlon is also facing headwinds. Blades on turbines that it has sold to power producers in the U.S. have begun cracking. The company says only 45 blades have been affected, but it plans to spend $30 million on repairs and to strengthen almost all the blades it has sold in the U.S. Suzlon's efforts to upgrade its technology have also run into problems.

Sea-based wind parks off Norway could generate large amounts of energy for export to the European Union with investments totaling up to $44 billion by 2025, a report indicated on Monday. "Norway has a very large potential to produce wind power offshore," according to a 30-page report by the country's Energy Council, comprising officials and business leaders. It said that green exports from Norway, the world's number five oil exporter, could help the European Union towards a goal of obtaining 20 percent of its electricity by 2020 from renewable sources such as wind, solar, hydro and wave power.

Central Government has extended an off-shore exclusion area in the Strait of Gibraltar. ...Central Government, acting on a request from the regional Junta de Andalucía, has ordered that there will be no new wind farms off the coast of Zahara or Barbate. A previous exclusion zone there has now been extended, prohibiting the windmills along the entire Strait of Gibraltar, from Algeciras to Trafalgar.

"Wind-mapping shows that ... Norway is among the (world's) most ideal locations for wind power, both on the coast and offshore," said Norwegian Deputy Petroleum and Energy Minister Liv Monica Stubholdt. Yet the Scandinavian country, one of the world's leading oil and gas exporters, today lags far behind others in taking advantage of this natural resource. ..."Of course, we don't want to fill our entire coast with wind turbines but even a fraction of that would be good," ...A major reason for the slow uptake is Norway's virtually unlimited access to renewable hydro power, which today covers about 99 percent of its domestic energy consumption, Deputy Minister Stubholdt explained.

But, like most weather reports, the outlook for large windmill projects is anything but predictable, plagued as they are by noise complaints, endangered species and fickle commercial backers. In the United Kingdom, a giant wind farm planned for the Thames River estuary now appears to be in jeopardy after Dutch oil giant Shell announced it would pull out of the project. ...The company has said it will continue to pursue wind power projects in the United States. Yet U.S. wind power projects have run into some snags of their own.

The news source noted industry analysts saying that Spain already has an installed base of 15 000 MW in wind energy facilities, with ambitious targets of 20 000 MW by 2010 and 30 000 MW by 2020. Spanish wind power producers foresee a maximum capacity of 40 000 MW by 2030. But Red Electrica de Espana (REE), the country's grid operator, constrains the share of wind power to 30 per cent of the energy mix, to ensure that the grid does not falter on wind availability issues. Wind power producers are reportedly concerned about this set-limit and are expecting to see downtime for wind facilities once the limit is breached.

In a filing with the U.S. Securities and Exchange Commission in February, Edison Mission Energy, a unit of Edison International, said the 144-foot-long windmill blades it recently bought from Suzlon have begun to split at three wind-power sites it operates in the Midwest. Suzlon has recalled 1,251 blades from its top-of-the-line turbines, which represent the majority of blades the company has sold to date in the U.S.. Its troubles don't end there. A year ago, the company bought a controlling stake in a large German turbine manufacturer, REpower Systems AG, in one of India's biggest overseas acquisitions. ...Now, Suzlon can't get its hands on the blueprints. Hamstrung by a German corporate law, Suzlon must offer to buy out minority shareholders before it can demand REpower's designs. It's unlikely that the company could make a tender offer until 2009, say people with knowledge of the companies. ...Mr. Kher blamed the cracks on the Midwest's unexpectedly violent changes in wind direction. Though Mr. Tanti says that only 45 blades have cracked, Suzlon says it will add an extra lamination layer to almost all of the blades it has shipped to the U.S. To repair cracked blades and reinforce the rest, the company expects to spend $30 million.

Spain's wind parks currently have an installed capacity of some 15,000 megawatts and the government wants to see 20,000 MW in place by 2010 and 30,000 MW by 2030. Spain's wind power manufacturers say they can expand capacity to 40,000 MW by 2020. But national grid operator REE currently limits wind parks to supplying 30 percent of Spain's energy demand, to protect power network from sudden drops in power if the wind falters. ...REE had to enforce the 30-percent limit last month when wind turbines set a production record and momentarily met some 28 percent of total demand. Wind parks have produced up to 24 percent of demand on a given day and fluctuations in output produce wide swings in prompt power prices in the over-the-counter market.

News has been breaking regarding corruption on the Canary Islands linked to the generation of wind power. Recordings made of conversations between the ex General Director for Industry of the Canary Regional Government. Celso Perdomo, and several businessmen have now come to light, following the first indications of corruption dating back to 2004 and 2005.

Europe's wind turbine makers are facing higher raw materials costs, a lack of trained workers and insufficient investments in electricity grids and new wind parks, with the record growth rates of previous years expected to level off. But the sector remains confident that EU renewable energy targets will be met. ...Given the challenges facing the sector and with growth expected to slow, there are concerns the industry will fall short of the target. In 2007, only 8.5 gigawatts were installed. Nonetheless, the wind sector is optimistic.

Babcock & Brown, the Australian infrastructure investor, is planning to sell its European wind farms in a deal that could be worth between €3.5bn ($5.5bn) and €4bn. The group will say Monday that it has appointed Deutsche Bank and JPMorgan to sell its European wind energy assets and those owned by Babcock & Brown Wind Partners, its quoted wind energy fund. These include wind farms in Spain, Portugal, Germany, Italy and France. Babcock & Brown Wind Partners owns about 3,000MW of wind generation capacity worldwide, with just over 800MW of this in Europe. But the group said last month that the market had not recognised the value of its European assets, and it would look at selling them. The wind energy sector is attracting strong investor interest, and European wind businesses have been changing hands at high prices.

It will cost every household in the UK at least £2,000 to comply with the new European Union target of producing 15 per cent of all energy from renewable sources by 2020, according to a report commissioned by the government. ...According to energy consultancy Pöyry, the bill for the UK to meet the target would be at least €5bn a year for more than a decade, compared with just over €3bn a year for France and Germany, and well under €500m for most other countries.

Iberdrola SA (IBE.MC) Friday said it increased its stake in Gamesa SA (GAM.MC) to nearly 24%, getting another 4.63% of the Spanish wind- turbine maker previously in hands of an investment vehicle it partly-owned. Iberdrola, based in Bilbao, northern Spain, is the world's biggest wind-power generator. Gamesa, also from Bilbao, is Europe's second largest wind-turbine maker after Denmark's Vestas Wind Systems A/S (VWS.KO). Gamesa accounts for around 15% of all wind-turbines sold in the world.

Spanish wind turbines provided record levels of power on Tuesday and the national grid said it had to order a cut in output to avoid becoming vulnerable to a sudden drop should the wind have stopped blowing. The national grid, REE (REE.MC: Quote, Profile, Research), said it would ideally compensate for abrupt falls in the unpredictable supply from wind parks by importing energy from France, but current power lines did not have sufficient capacity to do this. ..."If the drop in generation is greater than the capacity for interconnection of electricity with the European system, it entails a serious risk for the continuity of supply," an REE statement said.

When the decision of whether to pay more is expressed in terms of real currency, the survey found even greater reluctance to go green. The European Commission estimates that it would cost each household the equivalent of $220 per month to cut greenhouse gas emissions and use more renewable energy. When faced with that number, strong majorities of bill-paying adults in all six countries said they would be unlikely to pay the higher amount, the survey found. "Until people are forced to do so, or the price for renewable energy comes down considerably, people will not make the ‘green' choice," the Harris Interactive survey said in commentary on the findings. "This is especially true as economies around the globe tighten. When it comes to food or solar power, food will win for the consumer each time."

In what implies a Rs.1 billion ($25 million) hit on its balance sheet for the current quarter, leading wind power equipment-maker Suzlon Energy will refit wind turbine blades for a project in the US, the company said Monday. “The company will do a retrofit programme to resolve blade-cracking issues discovered during the operations of some of its S88 turbines in the US,” the company informed the Bombay Stock Exchange Monday.

Once-trendy biofuels like ethanol produced from corn are now being derided by the authorities, who say the fuels have little value in the fight against global warming. Vital components for windmills and solar cells have run short over the past year, requiring expensive projects to a halt. Meanwhile, subsidies for renewable energy remain at the whim of politicians, creating a boom and bust cycle for wind farms and solar projects, particularly in the United States. Such a risky environment means some bankers are placing bets on projects that are unlikely to develop into serious, profitable alternates to fossil fuels, and could ultimately slow investment flows "Some of these green investments are going in the wrong direction," said Yvo de Boer, the executive secretary of the United Nations Framework Convention on Climate Change. "Very well-intentioned projects can go awry, particularly where government policies on cutting emissions aren't clear." ..."The world is repricing risk, and these are risky assets," Liebreich said, referring to renewable energy investments.

The complaint claims that unique natural habitats in the north-eastern Kaliakra region have been destroyed in the process of building a wind farm. It has been backed by 12 other environmental and civil non-governmental organisations. The environmentalists believe that Kaliakra "is emblematic of how innovations and investment are used to mask criminal encroachment on bio-diversity". The complaint package includes documents, photos and maps showing the damage that the wind farm projects have done to nature.