Offshore wind: Coping Strategy

Sarah Nightingale, DECC

Natural England/RUK Offshore wind industry seminar

18 March 2014

Offshore wind in the UK: summary

• Offshore wind is already a major part of our energy supply, and key to

our future – with huge potential for deployment, cost reduction, and

economic benefit

• UK market is the largest in the world - and will remain so to 2020 and

beyond

• We have a strong framework to drive investment in offshore wind –

delivered through Electricity Market Reform

• We are already securing the economic benefits – and the potential is

huge

• The UK is at the forefront of delivering cost reductions in offshore

wind – reflected in reduced “strike prices” over the decade

• Some rationalisation of the “pipeline” of projects is to be expected – a

sign of the sector maturing

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Offshore wind is already a major part of our

energy supply….

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4MW (2x 2MW)

2000

3.6GW now

Comparison:

• Germany: 520MW

• Denmark:1.2GW

UK biggest market in world and well placed to

remain so to 2020 and beyond

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Installed now

(3.6GW)

2020 10GW

(range 8-15GW)

Total

pipeline (almost 43GW)

Scoping

Planning

Post-planning

Under

construction

We are already securing the economic

benefits – and the potential is huge

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There are nearly 7,000 jobs in the sector, growing to a

possible 35,000 by 2020

The UK is at the forefront of delivering

cost reductions in offshore wind

• Objective: £100/MWh for projects taking FID in 2020

• Offshore Wind Programme Board –

Government/industry group driving cost reduction across

the value chain

– Supply Chain, Skills, Technology and Innovation, Contracting

Strategies, Planning and Consenting, Grid, Finance, and

Operations and Maintenance

• Expected cost reduction is reflected in strike prices –

which reduce from £155MWh to £140/MWh by 2018/19

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Reducing consenting risk and increasing

certainty also key

UK Renewable Energy Roadmap Update 2012 committed to:-

• Take forward strategic research to help plug key evidence gaps;

• Implement key recommendations from Habitats Review and work

with priority offshore wind projects to give more certainty in pre-

application phase – key role for Major Infrastructure and

Environment Unit and Marine Evidence Group.

• Identify potential mitigation and compensation measures and, if

appropriate, provide guidance; and

• Develop a “coping strategy” for consenting decisions that need to be

taken before the evidence base is improved.

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Taking forward “Coping Strategy”

commitment

• Time and legal constraints (Habitats and Wild Birds Directives plus Planning Act 2008) limit scope for policy-led solutions.

• Dialogue with key stakeholders including RUK’s CLG, Natural England, Crown Estate and RSPB highlighted:-

– Consensus about key issues;

– Recognition of need for swift solutions;

– Appetite for collaboration.

• DECC/Defra agreed to organise solutions focused workshop to try and help move the debate on – took place 10 February 2014.

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Coping Strategy Workshop – key

conclusions

• Broad agreement to three areas of priority work:-

– Collision risk monitoring – synthesis meeting in late Spring to maintain momentum after Marine Scotland work on avoidance rates/behaviours finalised.

– Cumulative effects – development of new dataset and supporting guidance to ensure use of up to date and standardised data.

– Thresholds/populations – scope for new package of work.

• DECC/Defra to reconvene Govt/industry/regulator/|NGO steering group to consider and agree how these outputs should be taken forward.

• Essential to maintain momentum and continue collaborative approach.

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Coping Strategy – next steps

• Collision risk modelling:-

– Draft of Marine Scotland/BTO report on avoidance rate/behaviours due mid-April; final report May.

– Engagement with steering group on Marine Scotland/BTO work to enable early identification of any unanswered questions

– Potential interim position through industry/NGO/SNCB dialogue on Smartwind/Forewind work.

– Synthesis meeting in June?

• Populations and thresholds:-

– DECC/Defra mapping out existing work to better understand any gaps.

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Coping Strategy – next steps

• Cumulative effects:-

– High level process for developing dataset – “common

currency” - agreed;

– Steering group members refining detail and scope.

• Other issues:-

– Agreed steering group focus should be on seabirds.

– Defra to consider what further collaborative work on

alternatives, IROPI, and compensation might be possible.

• Next steering group meeting – late April/early May.

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Conclusions

• Shared aims:-

– Securing renewable energy delivery and tackling

climate change;

– Ensuring renewable energy delivery is truly

sustainable.

• Shared problems:-

– Challenging and complex issues around data and

evidence.

• Shared solutions:-

– Ongoing collaboration and transparency are key.

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