Offshore wind supply chain bilbao alan 28 feb 2012
1. Offshore Wind & Supply Chain
Opportunities
Workshop in Bilbao
28th February 2012
2. Offshore Wind Market Overview
Renewables
• EU target of 20% of energy from renewables by 2020
• UK target is 15% from renewables by 2020 (or 30 to 35% of electricity)
Offshore Wind Market
• UK Targets:
• 39 GW between Scotland, Rounds 1, 2, 2.5 and 3
• ~2GW currently in operation
• European Targets:
• Germany (25GW ), Netherlands (6GW), France (6GW ), Spain (5GW)
• Denmark, Norway, Belgium and others
• Total Market >80GW in Europe (could be peaks of installation of 10GW/year)
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3. Iberdrola Projects Around Europe
Germany
1 Wikinger (Baltic Sea). 400 MW under development.
1 1000 MW under development
United Kingdom
4 1
2 West of Duddon (Round 2). 500 MW under development with Dong
2 3
3 East Anglia Zone Target 7,200 MW. JVA with Vattenfall.
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Site investigation award for Argyll Array in Scottish waters. Up to
4 1.800 MW
France
5 Project sunder development up to 1000 MW
Spain 6
6 3000 MW applied in 2007.
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4. UK Round 3 Projects
Zone Winners
1.Moray firth EDP &
SeaEnergy
2.Firth of Forth SSE & Fluor
3.Dogger Bank Forewind
4.Hornsea Mainstream &
Siemens
5.Norfolk Iberdrola (SPR)
& Vattenfall
6.Hastings Eon
7.Isle of Wight Eneco
8. Bristol RWE Npower
Channel
9. Irish Sea Centrica
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5. Iberdrola UK Projects Summary
West of Duddon Sands – Round 2
(<500MW). JV with DONG
Argyll Array – Scottish Territorial Waters
Award (<1800MW)
East Anglia Zone 5 – Round 3
(7200MW). JV with Vattenfall
Combined installed capacity of 9500MW
(SPR share equal to 5730 MW)
On today’s prices, capital investment of
~£30 Billion
Will be constructed 2013 – 2023
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6. Supply Chain Challenges & Opportunities
• The task ahead (33GW and £90Billion) seems extremely challenging
when taken all at once – especially if perception of lack of capital exists.
• But this can be achieved with several smaller steps.
• Capital will be available when construction & operation methods are
improved and the technology is proven.
• This will require investment by the supply chain – who must have
confidence to invest in R&D, systems, facilities etc.
• This will also require a track record of live projects to become ‘proven’.
• This is where developers/utilities and the supply chain must work
closer together than before.
• If so, then these initial steps can be the start of a very significant journey.
• In parallel, discussions with the funders of later projects must take place.
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7. Onshore vs Offshore Cost Balance
PROJECT
PROJECT
DEVELOPMENT AND ONSHORE DEVELOPMENT OFFSHORE
SUBSTATION AND AND
MANAGEMENT 5%
SUBSTATION AND EXPORT CABLE MANAGEMENT 4%
EXPORT CABLE 9% 10%
ELECTRICAL INTER
ELECTRICAL INTER
ARRAY 5%
ARRAY 7%
TURBINES 40%
CIVIL AND AUXILIARY
WORKS 11%
CIVIL AND
TURBINES 70% AUXILIARY WORKS
25%
INSTALLATION 14%
Onshore is dominated by turbines Offshore is much more balanced
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8. Foundation Types
Monopile Gravity base structure Jacket structures
• Medium water depths • All water depths • Deeper water depths
• Medium size turbines • Larger turbines • Larger turbines
• Sand – clay seabed • Higher load-bearing capacity • Suitable for different seabed
• Environmental sensitivities conditions
• Seabed preparation required 8
11. Installation Techniques
• Major cost component
• Substantial weather risk
• New techniques under development
• Vessel availability key consideration
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12. Offshore Wind Turbines
• Big political push for turbine manufacture in UK
• Developers will contract directly with turbine manufacturers
• Significant component requirements near OEM location
• Limited proven technology – 3MW, 3.6MW, 5MW
• Next generation of turbines 5MW to 7MW
– Improves logistics
– Reduces foundation and connection requirements
• Technology must have proven reliability
– Clear technology roadmaps needed
– Test & Demo critical role to play
– More Test sites needed
• Possible range of turbine types per project
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13. Operations & Maintenance
Local Harbour Based Facility:
• Control Room
• Stores
• Logistics Management
• Helicopters
• Weather Monitoring
Far Shore Project:
• Personnel based offshore
• Mother-ship / accommodation platform
• Workboats for transfer to WTG’s
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14. Electrical Equipment
CABLING
• Large cable demand – array and export
• Capacity limited, new facilities/lines will take time to commission and prove
• Work required to deal with the installation of array cables
SUBSTATIONS
• Bespoke nature slows procurement and production process
• Large fabrication capacity required (as with jackets)
• DC and AC required – some connections greater than 100km
• DC conversion technology potentially required
SYSTEMS
• HVDC technology currently being developed
• Improved grid designs are crucial (reduce losses, improve reliability and
redundancy, reduce capex etc)
OFTO
• Long term owner of offshore transmission assets will be the licensed Offshore
Transmission Operator (OFTO)
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17. Marine Renewables - Overview
• Significant global resource potential:
• 250 GW wave, 60 GW tidal
• Areas of best resource have been identified:
• UK, France, Spain, Ireland, Portugal
• USA, Canada, Mexico, South America
• Australia, New Zealand
• EU & Member States are developing supportive policies
• This is especially the case in the UK
• A range of full-scale prototypes are being deployed
• Large-scale array projects are being prepared
• Very strong political & policy support in Scotland
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18. SPR Activity in Wave and Tidal Energy
• SPR has a phased plan to develop a market-leading position
• First step is prototype trials, now underway:
Hammerfest 1MW Tidal device, Pelamis 750kW Wave Device
Installed EMEC Dec 2011 Installation at EMEC Imminent
• Second step is array deployment – Islay 10MW Tidal Project
• Islay consent is secured, deployment awaits test outcome
• Large scale commercial projects also under development:
• Duncansby (tidal, 95MW) & Marwick Head (wave, 50MW)
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19. Islay Tidal Project – A World First!
• Developer: ScottishPower Renewables
• Technology: Hammerfest Strøm
• Local Partner: Islay Energy Trust
• Size: Ten 1MW tidal devices
• Location: Sound of Islay, Argyll, UK
• Installation: 2014 onwards
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21. Orcadian Wave Project
• Pelamis P-2 Device
• World’s most advanced wave project
• Vital role to prove performance
• And facilitate commercial deployment
• Manufacturing work completed
• Tow to Orkney completed
• Installation shortly
• Collaboration with EON
Accelerating commercialisation of wave technology
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22. Conclusions
• The offshore wind market is a huge opportunity
• The Supply Chain has to be involved at an early stage:
• Build capacity
• Prove technology
• Reduce risk
• Reduce cost
• Offshore Wind technology is still developing
• This means opportunities for new market participants
• UK content is still a political requirement
• Standardisation and Industrialisation are also essential
• Leading to a sustainable, profitable and safe offshore wind sector
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23. Questions?
Contacts:
Alan Mortimer
Head of Innovation, ScottishPower Renewables
email: alan.mortimer@scottishpower.com
tel: +44-141-568-4421
Ignacio Gomez De Oleo Alcaniz
Supply Chain Director
Iberdrola Renovables Offshore Wind
email: igdeolea@iberdrola.es
Alvaro Martinez Palacio
Operations Director
Iberdrola Renovables Offshore Wind
emails: aap@iberdrola.es
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