Arjan Mast mast@tki windopzee.nl Ahmedabad, 09 September 2014
TKI Offshore Wind Government policy to further strengthen high performing industry sectors in the Netherland (18 TKIs) TKI Offshore Wind is focussed on offshore wind innovation, R&D and strategic support Over 100 companies signed letter of commitment 09 September 2014 2
North Sea Offshore wind EWEA estimates 150 GW in 2030, of which approximately 90 GW at the North Sea Netherlands targets 4,5 GW in 2023 Dutch companies traditionally strong in: Support structures Transport, Installation and Logistiscs Operation and Maintenance Dutch companies strongly involved in many offshore windparks in North Sea 09 September 2014 3
Dutch success in offshore wind Dutch companies and knowledge institutions in recent offshore wind farms INCOMPLETE Operational Capacty [MW] Design and Engineering Support Structures Turbines & design Installation Maintenance Development and operations Other BARD 1 Thanet Walney I Greater Gabbard EnBW Baltic I Ormonde Sheringham Shoal Walney II London Array Thornton Bank II Anholt Thornton Bank III Lincs Borkum West II 2010 2010 2010 2010 2010 2011 2011 2011 2011 2012 2013 2013 2013 2014 400 300 184 504 630 150 317 184 185 48 111 400 270 200 09 September 2014 4
Cost reduction Cost of Offshore Wind 200 180 160 140 120 100 80 60 40 20 0 40% 2010 2020 Technology Finance Policy FLOW TKI WoZ 09 September 2014 5
Levelised Cost of Energy (LCoE) LCoE ( /MWh) the required revenue per MWh that creates a financially interesting project for the developer/owner CAPEX OPEX Yield Financing Timing Consenting Development/ Project Mngmt. Turbine Support structure Array electrical Installation Operations & Maintenance Insurance Transmission charges Other Gross AEP Losses Availability Net AEP to offshore substation Equity returns Debt margin Debt tenor Gearing Re financing Phasing of CAPEX, OPEX and AEP over time Re financing / Changes in WACC Decommissionin g Insurance 09 September 2014 6
FLOW/TKI Cost Model > What cost are we looking at? > Point of view: Project developer > Levelised Cost of Energy: The required revenue per MWh, that creates a financially interesting project for the owner/developer return on equity = cost of equity 09 September 2014 7
Typical output Levelised Cost of Energy [ / MWh ] 200 180 160 140 120 100 80 60 40 20 0 173 26 2 39 14 5 17 21 49 Basecase A Debt interest costs Decommisioning DEVEX OPEX Total Install Other CAPEX Electrical Supply Foundation Supply Wind Turbine Supply 09 September 2014 8
Spatial planning Courtesy of Royal HaskoningDHV 09 September 2014 9
(Expected) Annual Energy Production 1% lower Yield ~ 1% higher Cost of Energy! Wind Resource Assessment (wake) Losses Availability 09 September 2014 10
(Expected) Annual Energy Production Wind Resource Assessment Wind Resource Assessment Floating Lidar project LAWINE project (metmast at sea) 09 September 2014 11
(Expected) Annual Energy Production Losses Wake Losses 09 September 2014 12
Seabed surface and subsurface Accurate knowledge of the seabed is crucial Type of soil Subsurface Moving sanddunes 09 September 2014 13
Scour protection 09 September 2014 14
Wave impact 09 September 2014 15
Foundation type Monopile Gravity Base 09 September 2014 16
Foundation Installation 09 September 2014 17
Transport, Installation and Logistics Ports distance to nearest port Logistics supply 09 September 2014 18
Ports 09 September 2014 19
Operations & Maintenance Maintenance strategy optimize availability 09 September 2014 20
Connection cables Do not forget to connect your windpark to the electrical network onshore 09 September 2014 21
Building a strong sector NIET VOLLEDIG Wind energy R&D Windturbine design Windturbine production Offshore Design and engineering Offshore construction & installation Offshore Maintenance Windpark developmnent and exploitatie N.B. Alle genoemde partijen hebben Wind op Zee R&D, engineering en/of productie activiteiten in Nederland Competitiveness Weak Average Strong Very Strong Source: FLOW 09 September 2014 22
Energy Agreement construction consenting Cum. operational 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 09 September 2014 23
Cost Reduction is key 09 September 2014 24
Demonstration DEMONSTRATION FARM Test and demonstration of new technology and methods 09 September 2014 25
R&D and education Windturbine design & production Windpark developmen Consultancy, design & engineering Construction & installation Finance CWC Misc Snelwind Maintenance 04 June 2014 Visit Suzlon 26
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