The offshore wind puzzle getting the pieces right

Transcription

1 ENERGY The offshore wind puzzle getting the pieces right FOWIND workshop Paul Reynolds 09/09/14 1 SAFER, SMARTER, GREENER

2 World s largest dedicated renewable energy consultancy 2

3 Content & Key messages The Offshore Wind Jigsaw Puzzle What can go wrong if one piece is missing Cost Reduction Conclusions 3

4 Success 4

5 Feasibility Development Procurement Developmen Development t Project LVA (offshore) Ornithology Marine Mammals Fish Benthic Offshore Archaeology Socioeconomic Commitment Register Consenting EIA (main offshore) Consents (subsidiary, offshore) Planning advice Habitat Regulations Marine Ecology Coastal Processes Underwater noise study Cumulative assessments Environment Plan EIA (Onshore) LVA Birds (Onshore) Ecology & habitats Hydrology & geology Archaeology Cultural Heritage Land use Condition compliance & discharge Wind Farm Layout Technical Advisor Shipping assessment Vessels selection / audit Ports assessment Metocean Radar & aviation SCADA software CDMC DNV GL Engineering Stream Conceptual turbine selection Conceptual Design - foundations Met Mast topsides (offshore) concept Met mast foundations (offshore) GIS mapping Wind energy analysis Cable routing (offshore) Geophysical GI Geotechnical Outline Design foundations UXO Electrical system design Anchor penetration trial Virtual construction modelling Turbine Evaluation Contract preparation tech specs concept (offshore) noise Offshore cable route & inst. options Cable Route Construction & traffic basic design (offshore) basic design Virtual operations modelling Contract negotiations (technical) Commercial Financial Model Grid application Land Agent & options Access Agreements Risk mapping Legal - landowner Legal planning Legal contracting Contract negotiations (commercial ) PR / Stakeholder / supplier Fisheries Liaison Stakeholder liaison Community Engagement Policy lobbying PR /Media Industry engagement OFFSHORE WIND PRACTICE GLOBAL SERVICES Vessel definition (for providers) Fabrication plant design GL Supplier Services WTG design

6 Construction Operations DNV GL SPS DNV GL Project Stream Construction Project Manager Turbine Package Construction PMO Package Other Package Foundations Package QHSE & Construction Risk Cabling Package Site reps Cable supply onshore Condition compliance Cable install onshore MMO Cable landing Sub-acoustic monitoring Onshore substation construction Strategy Services Policy Services Turbine supply Monopile manufacture & supply Foundation install - monopile switchgear mnfr/supply topsides design substructure design Cable supply export Stakeholder liaison throughout Training Contracting Supply Chain Turbine Install Jacket manufacture & supply Foundation install - jacket transformer mnfr/supply topsides mnfr/supply substructure mnfr/supply Cable install export Operations Due Diligence electrical design TP manufacture Piling pre&post equipment & fit-out topsides install substructure install Cable supply inter-array Operational Vessels Turbine Maintenance Port facilities Divers J-tube fabrication Scour protection Rock trenching Cable mattresses Cable install inter-array Operations Port Foundation Maintenance DNV GL Engineering Stream Turbine Inspection Grouting advisor Foundation detail design (monopiles) Power system studies Foundation detail design (jackets) Marine Logistics Foundation detail design (gravity) Marine Warranty Services Offshore Project Certification Measuremen t Services MetOcean / Forecasting (for constr) Snagging & Troubleshooting Fibre & Meters Install Operational SCADA Meter reading Asset managemen t Maintenance Forecasting (for ops & trading) Commercial Commodity pricing Currency hedging Insurances & Taxes Risk Lenders Advisor OFTO Landowner Cost Lease & Grid Payments Meter registration PPA & Trading

7 The Puzzle Regulations All of these (and more) are vitally important, each with numerous challenges to resolve Site selection Grid Finance Supply chain and infrastructure DON T FORGET ONSHORE/FORESHORE ELEMENTS 7

8 What can go wrong? Grid Germany has suffered significant and ongoing delays with the connection of projects to the grid Causes - rapid deployment of untested and expensive technology, with limited supply chain, and involving manufacture and installation of enormous structures, being led by undercapitalised TSO Multi-million pound delays and compensation paid to developers, with the Government ultimately paying Headline of grid delays 8

9 What can go wrong? Site selection China s offshore wind industry has suffered from poor site selection and conflicting and overlapping seabed rights and responsibilities Sites leased to developers had to be moved due to conflicts with other marine interest groups This has slowed the development of offshore wind All the pieces of the puzzle are needed 9

10 Get the puzzle right for cost reduction All European countries are seeking to drive cost reduction. The pieces of the puzzle help or hinder cost reduction The decisions India takes over the next 2-3 years will help determine how much offshore wind costs 10

11 Get the puzzle right for cost reduction SITE SELECTION is huge driver of cost - UK sites vary +/- 20% in costs around the average - DONG are handing projects back which do not meet their site type criteria Bigger turbines represent the single biggest cost reduction opportunity The CONSENTING SYSTEM needs to be flexible enough to allow these bigger turbines Finance costs are a significant driver of offshore wind costs: Germany reportedly has a lower cost of finance than the UK, due to the FINANCIAL SUPPORT MECHANISM 11

12 Take away messages Offshore wind is a complex puzzle all of the pieces have to be in place Getting the puzzle right can help deliver cost reduction The next few years are crucial for India 12

13 Thanks! Paul Reynolds SAFER, SMARTER, GREENER 13