DONG ENERGY LEADING THE ENERGY TRANSFORMATION INNOVATION IN OFFSHORE WIND POWER Financing private and public research - A developer's research perspective 26 October, 2016 by Christina Aabo Wind Energy Denmark Annual Event 0
DONG Energy Wind Power overview DONG Energy Wind Power asset portfolio, build-out plan and pipeline options 2016-2025 C Bay State Wind Ocean Wind Isle of Man West of Duddon Sands Burbo Bank Extension Walney Extension Walney 1&2 Barrow Westermost Rough Burbo Bank Lincs London Array Gunfleet Sands 1&2 Operational Under construction Pipeline options Hornsea 2&3&4 Hornsea 1 Race Bank Borssele 1+2 Cluster 1 Borkum Riffgrund 2 Gode Wind 1&2 Borkum Riffgrund 1 Horns Rev 1&2 Gode Wind 3&4 Vindeby Nysted Anholt APAC Taipei office Middelgrunden DONG Energy Wind Power at a glance Differentiated competitive position resulting from integrated business model At the forefront of reducing cost of electricity from offshore wind Solid track-record in delivering large and complex Robust and highly visible 3.7 GW build-out plan leading to 6.7 GW installed capacity in total by 2020 Numerous and attractive pipeline options post-2020 with 8.1 GW of secured project rights Wind farm capacity GW 3,0 3,1 1,3 1,7 Installed capacity by July 2016 2 3,7 3,1 3,3 Operated capacity by July 2016 3 Owned by DONG Energy Build-out plan 2016-2020 0,4 ~15 8.1 Post-2020 pipeline options Owned by partners Secured
DONG Energy Wind Power - a strong integrated end-to-end business model ~1,970 Full-time employees 2 Develop ~100 Build ~1,140 Operate ~640 Own ~90 Identify and mature Perform FEED 1 + layout Carry out site surveys Manage consenting processes Bid preparation Mature project design Detailed design competence on selected systems/components Manage sourcing and supply Manage logistics, installation and commissioning Ensure asset integrity over lifecycle Perform scheduled and unscheduled maintenance Collect data and perform diagnostics Ensure highest yield at lowest cost Attract capital through partnerships Secure revenue and profit optimisation over life-cycle Ensure marketing of electricity and certificates Ability to design and optimise with a 'total life-cycle cost of wind farm' mindset Experience and expertise along the entire value chain allow for better understanding and management of risks End-to-end model reduces LCoE through fast feedback and learning across the entire organisation 1. Front-end engineering design 2. Excluding A2SEA employees as of September 2016
At the forefront of making the industry cost competitive - with multiple levers to drive down cost of offshore wind energy 1 Scale 2 Innovation 3 Industrialisation Project size Turbine size Vessel size Balance of plant (i.e. foundations, electrical systems and cables) Site and layout optimization Operation & Maintenance Transition from single supply to multiple global suppliers Standardization Rapid technological development Wind turbine rotor diameter, year of commissioning 154 m 164 m 180 m? Boeing 747, 76 m 80 m 90 m 107 m 120 m 2002 2005 2007 2011 2014 2016 2020
Prioritizing R&D and innovation to lower cost of energy Research Support basic and early-stage strategic research activities at universities and in research organisations Participate and lead in strategic research activities in core areas emphasis on maturing technology and reducing risk Development Tradition of collaborating on shared offshore wind industry challenges New market conditions increase competitiveness and put emphasis on confidentiality and IPR Despite strong in-house competencies collaborative development activities continue to be relevant to ensure the right knowledge and know-how Full-scale demonstration Accelerated life testing and HALT tests Full-scale demonstration of WTGs, foundations and key components is crucial Rigorous tests are key to validate early-stage simulations, reduce O&M cost and improve AEP certainty
R&D strategy and types of collaboration 1 R&D strategy review Foundation concepts Geoscience 2 Project outcome, scope and impact Project management efficiency and administration Wake Confidentiality and IPR Competence match Project definitions Internal / external funding 3 Small collaborative R&D Joint Industry Projects Internal R&D R&D Programmes Large R&D consortium
R&D strategy and types of collaboration 1 R&D strategy review Foundation concepts Geoscience 2 Project outcome, scope and impact Project management efficiency and administration Converter Monitoring Unit project w. KK Wind Solutions and AAU Wake Project definitions Confidentiality and IPR Competence match Internal / external funding 3 Small collaborative R&D Joint Industry Internal R&D R&D Programmes Projects Large R&D consortiums In Carbon Trust Offshore Wind Accelerator
The PISA project - Pile Soil Analysis Total CAPEX: Foundations Public Initiation and scope Initiated as a Joint Industry Project with financial support from the Carbon Trust OWA. Deliver cost reductions related to design of monopiles Develop new theories and methodologies for pile soil interaction Verify theories through large scale field-tests Challenge design conservatism and re-define industry standards Project team A large project consortium was required to lift the theoretical and on-site workload involved in the project, including different types of stakeholders: Developers Universities Consultants Technical reviewers and certifying bodies Efficient project management and administration headed by industry partners. Verification and application University-led development of new theories and later verified through large scale field testing under different soil conditions. Robust and coherent input for standardisation bodies and certifiers ensuring validation and application. Valuable results for all project participants in terms of new scientific knowledge, new design methods and input for new industry standards. Shared project cost among developers and availability of co-funding from Carbon Trust OWA lowered the entrybarriers and risk associated with the project.
The PISA project project organisation and test at site
R&D strategy and types of collaboration 1 R&D strategy review Foundation concepts Geoscience 2 Project outcome, scope and impact Project management efficiency and administration Converter Monitoring Unit project w. KK Wind Solutions and AAU Wake Project definitions Confidentiality and IPR Competence match Internal / external funding 3 Small collaborative R&D Joint Industry Internal R&D R&D Programmes Projects Large R&D consortiums In Carbon Trust Offshore Wind Accelerator
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