Rampion Offshore Wind Farm Meet The Buyer Event 26 February 2014, Amex Stadium, Brighton Vaughan Weighill, Project Manager
Presentation Overview 1. Introduction 2. Project Overview 3. Current Status 4. Construction Logistics 5. Operations & Maintenance 6. Schedule (Indicative) 7. Contracting Strategy 8. Local Content Approach 9. Invitation To Tender (ITT) dates 10. Case Study Robin Rigg
1. Introduction E.ON currently owns a portfolio of more than 4.8 GW renewables capacity across Europe and North America San Francisco Chicago 2,530 North America Austin 324 Key facts Assets with 4,878 MW total capacity Europe 756 Coventry Essen Malmö Hamburg Szczecin 168 93 Lublin Headquarter Office location Capacity (MW) Onshore wind Offshore wind Other 12.3 TWh electricity produced in 2012, equivalent to demand of 3m homes 1 Global #8 in onshore wind Global #3 in offshore wind 537 94 Milan 376 Active in 11 countries 862 employees, 31 nationalities Madrid
Offshore Wind Projects
2. Project Overview General Part of the UK Round 3 offshore wind programme (The Crown Estate) 13km from populous Sussex coast High level of marine activity 20-40m water depths Capacity max 700MW up to 175 WTGs O&M Base at Newhaven, ~15km Significant onshore infrastructure 26.4km route 150kV underground cable Onshore 400kV substation connecting into National Grid transmission system P Complex high value project, lots of elements and interfaces off- and onshore
OFTO infrastructure OFfshore Transmission Owners (OFTO) regime controlled by industry regulator Ofgem Includes offshore substation, export cables, onshore cables and onshore grid substation OFTO system must be divested by the wind farm operator competitive bid process E.ON opted for Generator Build option OFTO then purchases asset Grid substation Onshore Cable Export Cable Offshore substation Turbines and array cables OFTO System
3. Current Status Consents Consent application made to the UK Planning Inspectorate ( PINS ) in March 2013 Broad flexibility built into application and accompanying Environmental Impact Assessment (EIA) Earlier public engagement and consultation over 3 years Vast majority of cable route landowners signed up, Compulsory Acquisition powers being sought for others PINS Examination process including various hearings (where evidence is heard from interested parties) was completed in January 2014 decision expected July 2014 P Decision to progress detailed design and tendering in parallel to allow expedited delivery but timeframe highly contingent on consent date
Stakeholders 5 Local Authorities 2 County Councils 1 National Park 20 Parish Councils 8 Council Leaders 9 MPs 100 s Councillors 100 s of Businesses 1.Adur District Council 2.Arun District Council 3.Brighton & Hove City Council 4.Chichester District Council 5.West Sussex County Council East 6.Eastbourne Borough Council 7.Horsham District Council 8.Lewes District Council 9.Mid Sussex District Council 10.Wealden District Council 11.East Sussex County Council 12. Worthing Borough Council P Focus switching from consultation on the merits of project itself, to what jobs, supply chain opportunities and other benefits it can bring to the region
Technical Development to date Preliminary geophysical / geotech and metocean surveys completed in 2010/11 Highly variable seabed depth and features e.g. steep ridge across site, sand waves to SW Complex geological composition Monitoring wind speed and marine data since April 2012 Current ongoing offshore geotechnical site investigations Onshore geotechnical along 27km cable route nearly complete
Site Layout Optimisation Current work ongoing to optimise site layout design and final scale Geotechnical site investigation data informing foundation design and costings Wind yield performance modelling for range of layouts with different capacity, spacing, water depth scenarios Final outcome on the optimal number and configuration of turbines, total MW of the project, yet to be determined Option prices within Invitations to Tender to allow selection of optimum once known
4. Construction Logistics E.ON preference for hands on construction project management approach Multicontract rather than turnkey/epc Project will utilise E.ON s MPI Charter agreement Main Project Management Facility will be at Newhaven port Staging port(s) for pre-assembly and storage of plant not yet decided pending ongoing assessment Needs to be the right logistical solution to deliver the job in the most efficient and economic manner Decisions will be made through Q2/3 2014
5. Operations & Maintenance During 2011/12 an a technical and commercial evaluation was made of the local ports to establish the location for an O&M base Newhaven Port successful and commercial agreements entered Good location, unrestricted access and flexible quayside and space Estimate of 60+ staff will be employed at the O&M base, most of whom will be locally recruited Opportunities to provide operational services through project lifetime Associated contracts for construction of O&M base Seite 13
6. Schedule Indicative* 2014 Q1+ Front End Engineering Design (FEED) Q1/Q2 Invitations to Tender (ITT) issued Q3 PINS Consent granted* Q4 Final Investment Decision (FID) 2015 Q1 Commence enabling works onshore Q3 Install first offshore foundation 2016 Q2 National Grid connection works Q2 Offshore substation installation Q3 Install first wind turbine 2017-18 Complete installation of turbines and offshore cable array Full commercial operations
7. Contracting Strategy Stage of delivery lifecycle Project Element Design Manufacture/ Fabricate Onshore transport Offshore transport Install Commission Wind Turbines 1 1 1 2 1 & 2 1 Monopile foundadons 3 4 4 6 6 6 Jackets foundadons 5 5 5 6 6 6 Offshore SubstaDons 7 7 7 7 7 or 6 7 Array Cables 8 8 8 10 10 10 Export Cables 9 9 11 11 9 Onshore Cable - Major HDD 12 12 12 12 12 Onshore cable route 13 13 13 13 13 Onshore substadon 15 15 15 15 15 Grid ConnecDon 16 16 16 16 16 ConstrucDon Base Facility 19 19 19 19 19 O&M Building & FaciliDes 20 20 20 20 20 20
Summary of Main Packages 1 WTG supply & commission 2 MPI Vessel charter 3 Monopile design 4 Monopile fabricadon 5 Jacket design & fabricadon 6 FoundaDon installadon Vessel Charter 7 Offshore SubstaDons EPC 8 Array cable supply 9 Export cable supply 10 Array cable installadon 11 Export cable installadon 12 Onshore cable route Major HDDs 13 Onshore cable route EPC 14 Onshore Sub - Access Road & Site Establishment 15 Onshore SubstaDon EPC inc O/A System Design 16 Grid connecdon unlicensed works 17 ConstrucDon Base facilides 18 O&M Building & FaciliDes 19 O&M Crew vessels P Approx 20 main Tier 1 contracts, but in practice could be 200+ other ancillary contracts over course of the project construction and operation 16
8. Local Content Approach E.ON recognise the importance of securing local and UK content for a major infrastructure project like this Supply Chain Study, Database, Roadshows in 2012, today s event Key local suppliers are requested to register on database at; www.sussexwindenergy.org.uk Intended as supplier search portal for the project and contractors Actively used by E.ON for procurement of services during pre-consents activities (onshore site investigation, guard vessels, etc.) Details of supplier database to be provided in all tender documentation Requirement for tenderers to set out their approach to using local content, with overall weighted assessment including local contracting criteria If you believe you could be a Tier 1 direct contractor to E.ON:- Speak to us today, and/or formally register your interest and company s capabilities 17 rampion@eon.com
9. Invitation to Tender dates 1 WTG supply & commission 2 MPI Vessel charter Let 3 Monopile design Let 4 Monopile fabricadon 5 Jacket design & fabricadon 6 FoundaDon installadon Vessel Charter 7 Offshore SubstaDons EPC 8 Array cable supply 9 Export cable supply 10 Array cable installadon 11 Export cable installadon 12 Onshore cable route Major HDDs 13 Onshore cable route EPC 14 Onshore Sub Access Road & Site Establishment 15 Onshore SubstaDon EPC inc O/A System Design 16 Grid connecdon unlicenced works 17 ConstrucDon Base facilides 18 O&M Building & FaciliDes 19 O&M Crew vessels 2013 2014 2015 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
10. Case Study Robin Rigg Independent audit by BVG Associates on our last non-jv offshore project Robin Rigg showed 32% of capital value was retained in the UK, 12% in the region This was despite the fact that turbines (typically) representing around over half of the capital, could not be sourced in the UK 40 full time employees at the O&M base in Workington, Cumbria Separate BVG study on value from O&M found 86% of expenditure in year 1 of operations was retained in the UK, with half of this benefitting Cumbria itself Potential increase in local content once the OEM service and maintenance agreement expires Further details on E.ON s O&M philosophy in workshop later
Thank You For Listening 20 Rampion 15/02/2013