Wind Energy Business of Korea
(Focused to Offshore)
2010. 12. 6
Dr. Rimtaig Lee Korea Wind Energy Industry Association
Index
Status of Wind Energy Industry and Energy Supply/Demand
Remarkable Change of Korean Wind Energy Industry
Major Component
Overseas Off shore Wind Projects
Reference List
Status of Wind Energy Industry and Energy Supply/Demand
Innovative Paradigm Shift(Wind) in Energy Industry The First Wind(since history created up to 18 centries): Under developed and primitive life based upon Natural energy(woods). The Second Wind( from 1900s to 2000s): Well being life thanks to the fossil energy and nuclear energy, industrial innovation
Energy sited at mal-distributed location and incurred the war to secure the fossil energy. Better life of human being due to development of technology, automation, medical cares. Endanger the human life in the future causedby the global warming due to the access amission of carbon deoxide. More than 30% of export amount is used for importing energy in Korea Nuclear power plant is now exporting. Booming to export the plant projects which are used for fuel as well as raw materials of fossil energy Largest and monopoly business due to the economy of scale
The Third Wind(2050s thereafter): Sustainable well being life of human being based upon the renewable energy such as wind, solar, tidal and hydro system.
Renewable energy located at well distributed locations and eliminated any disputes to secure the energy. Korea can be a country to obtain the local energy at large scale. The renewable energy industries will be the export industries and will provide the opportunity of jobs and value added to GNP. The global warming will be managerial. Clean air by expanding battery cars and increase the demand of electricity. Distributed power source and widely applied.
Demand and Supply of Oil
The Growing Gap
0
10
20
30
40
50
60
1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040
GBarrels
Past
Discoveries
Future
Discoveries
Demand
Projected
Demand (IEA)
Projected
Supply
Global Energy Status and Forecast
Source: Global Energy Outlook 2009,GWEC Report 2009,COP 15
Wind Energy available at Earth
Energy Mix of EU Electricity Supply in 2050
300
1000
2300
0
500
1000
1500
2000
2500
1990 1995 2000 2005 2010 2015 2020 2025 2030
연도
용량
(GW )
Real Data 2005 Forecast
2008 Forecast 2009.11 Forecast
Up-trend
Accumulated wind power installed in the world
Actual and up-dated Forecast
Source: GWEC 2009
전세계 풍력 점유,탄소저감,투자비, 직장 증가 예상 표(Scenario 3 개중 중간, 1/2)
Source:GWEC2010
전세계 풍력 점유,탄소저감,투자비, 직장 증가 예상 표(Scenario 3 개중 중간, 2/2)
Source: GWEC2010
Plan to promote in the wind energy projects in China
Potential : 1,000GW
Off-shore : 750GW
On shore : 250GW
Installed: 25GW(2009)
Off shore under develping : 18 GW
2010.3 : 102MW(comleted)
2015 : 2.7GW
Chinese Scenario to develop the wind energy projects
Source:GWEC 2010
Reserved potential off-shore projects in EEZ of Japan EWEC2009 24 Jun 2009
Graduate School of Maritime Sciences, Kobe University, Japan
Fig. 6 Annual energy production per square kilometer (GWh/km2).
Blue lines show boundaries of Japan’s EEZ (including disputed areas).
• Japanese EEZ
(Incl.disputed area) :
4.47×106 km2
• Reserved potential
energy: 48,600 TWh/yr
(50 times of Japanese annual
production)
• Japanese annual
electricity production:
(2008): 971.87 TWh/yr
Remarkable Change of Korean Wind Energy Industry
Improvement of Business Environment
Tariff Grid Accessibility Will of Government National Acceptance Local Government Industry Credit of WTG supplier
Previous Regime
Current Regime Items
FIT,107w/KWh Negative Environment Protection Negative Pay no attention Medium and small firms oriented. Unable to provide credit.
RPS= SMP+ REC (130 + 40/80 won/KWh)
Pay a full attention and will take action.
Green Growth Positive Actively/Competitively Promoting Largest four ship builders oriented. Able to provide credit for their WTG supply.
Government Strategy on Wind Energy Industry (Summary) (2010. 10. 13)
1) The off shore wind industry will be developed as the 2nd ship building industry. The 3rd largest in the world.
2) The wind energy generating facility will be expanded up to 7.7 GW by year of 2030.
3) RPS will become effective from 2012. The tariff will be consist of SMP and REC. Energy Price for on land wind anticipated for approx. 130 won/KWh + 40wonKWh for on land wind, and approx. 130 won/KWh + 80won/KWh for offshore wind. 4) Detail Study for easy access to the electric power grid is currently
being carried out: Offshore wind farm: To provide a nearest extra high voltage substation, On shore wind farm up to 20MW to be connected to the nearest 22.9KV network system. The expenses for access to power grid will be allocated to tariff and Kepco will carry out the construction of the transmission lines.
WTG Manufacturing Technology * Shift from Indigenous to International Tech.
1. Indigenous Technology Develop:
Hyosung:750KW and 2MW(Under test operation),5MW(Under developing)
Unison: 750KW and 2MW(Under test operation)
Doosan:3MW(Under test operation)
Hanjin:1.5MW(Under test operation)
2. International Technology Inducement:
Hyundai Heavy Industry(AMSC Wintec,USA): 1.65MW(under mass production, to supply domestic market and Pakistan ), 5MW(Under developing for offshore project)
Samsung Heavy Industry(UK): 2.5MW(under mass production for onshore project), 5MW(under development for offshore project)
Daewoo Shipbuilding and Marine(Dewind,USA): 750KW,1.5MW,2MW(under production in USA), Ship for offshore WTG erection(Client: RWE)
STX Heavy(Harakosan,Netherland): 2MW, 3MW(under production in Netherland)
Road Map of Korean Wind Energy Sector
The First Track: Government has set up to promote an offshore project 1st stage: 100MW / 2011 ~ 2013/ 60.36 Billion won / 2nd stage: 900MW / 2014 ~ 2016/ 3.25 Trillion won / 3rd stage: 1,500MW / 2017 ~ 2019/ 5.6 Trillion won / Implementation Org.: Promotion Committee chaired by CEO of KEPCO
The Second Track: Local government of Chonnamdo 1st stage: 100MW 2nd stage: 1,000MW 3rd stage: 2,900MW
The Third Track: Local government of Jeju 1st stage: 300MW 2nd stage: 700MW 3rd stage: 2,000MW
The Fourth Track: Local government of the other province Refer to the list of potential projects attached for the other province.
Factors affect to Viability of the Wind Project
Capacity Factor Capex Opex Financial Cost Developing Cost * Consent of Residential People * Site Availability Accessibility to Power Grid National Recognition and Acceptance by People Project Management Local Availability of WTG Supply, Engineering and Construction Capability Availability of Harbor Facility Availability of Erection Vessel Availability of Cable Laying Vessel
How to improve Project Economics?
Lower the Capex and Opex through a skillful management.
Lower the Financing Cost and Lower interest of Borrowing Money.
80% of Wind Energy generating cost is contributed from the financing and financial cost due to Capex while the remain 20% is contributed from Opex. Select a good site location for better CF and less Capex.
Minimizing the developing cost.
Risk Management
Lot of risks, raised in promoting the wind energy project should be shared with all parties involved. Equipment supplier E&C contractors Developers Lenders Government support Local government support and investment Insurance company
Project Financing
The credit should be raised based upon the project facility. The credit should be raised upon the anticipated balance sheet. The internationally prevail concept of PF should be applied to the Korean project by Korean lending institutes.
*
*
With a technical potential of 31.4 GW
South Korea is poised to begin a new era
involving the development of offshore wind
The Korea Electric Power Research
Institute are currently looking at the
feasibility of building a 100MW offshore
wind farm in the West Sea. The wind farm
is planned for 2012 and could be extended
to 1,000MW at a later date
West Sea
Jeju-do
Offshore wind resources potential
7.4
15.5
23
34.5
0
5
10
15
20
25
30
35
2010 2015 2020 2025 2030
연도
용량
(GW )
Reviced Forecast by MKE in 2008(Scenario1) Reviced Forecast by MOCIE in 2003
Dream1(Scenario2) Dream2(Scenario3)
Scenario1
Scenario2
Scenario3
Down-Track
Up-Dream
Installation Trend of wind power in Korea (Case Study)
29
Wind Energy Projects enlisted in the 3rd Basic National Plan of Power Supply and Demand. (2006~2020, 2006.12 issued)
Remarks: Wind projects are being delayed and suspended in Korea versus are being developed very rapidly in
the other parts of world.
Unit:MW
2007 Plan Implemented Remarks
Milyang #1(Kyongnam) 50 Delayed /public objection
Hankyung, phse 2(KOSPO) 15 15 Success
Sungsan(KOSPO) 20 12 Delayed(2008)/Reduced(12)
Kangwon Chahang(unison) 22.5 Public objection
2008 Plan Implemented Remarks
Sangdo(Jeju Wind) 31.5 Public objection
Yanggu(KOMIPO) 20 Environment
Daegiri(Hyosung) 40 Under progress Delayed/partly implemented
Milyang #2(Kyungnam) 60 Public objection
Sammu off-shore 30 Delayed/not viable
Taebaeg(KOSPO) 20 Delayed
Pyongchang(KOSPO) 20 Delayed
Kyungju Yangnam(unison) 21 Public objection
Jeongsun(KEWPO) 25 Public objection
Sangmyung(unison) 16 Public objection
Samdal(Hanshin) 0 33 Under progress
2009 Plan Implemented Remarks
Duckpyong Jeju(KOMIPO) 40 Environment issue
Daehol Jeju(unison) 18 Public objection
30
Dreams of Korea Wind Energy Industry Association 1) Wind projects under consideration by private sector
developers Location Capacity (MW) Remarks
1.KNOC/HEC Chonnam Yusu 20MW Under design, to be completed by 2012,
Est.budget: 83 B won
2. Kwmho Industry Chonnam Yusu 100MW
3. KOSPO Busan off-shore 350MW(3.5MWx100기) Target: 2020.
390W/m2, 0~30m depth, 10Km away
4. KNHC/Doosan/NCE Jeju off-shore Hangkyung 30MW Gov.permit in 2006, Delayed due to lack of
viable ,review to start.
5. Dongkuk S&C/EWP/Yurus Chunnam Beegwkdo 200MW Target: 2013 / Est. budget:1.2T won
6. POSCO E&C Chonnam Off-shore West-South 600MW Target: 2015 / Est. budget:2.5 T won
7.POSCO E&C Chonbuk 100MW(5MWx20) Const. period: 2011 ~ 2015
Est. budget:0.5 T won
8. Hanwha Consortium Off-shore Incheon 100MW
(2.5MWx40기/3MWx33기)
333W/m2/7mdepth/20Km away.
Start:2012, Est.budget:500 B won
9. Hanshin Energy Jeju off-shore Gapa 50MW Target: 2012
10. Halla Consortium Jeju off-shore east-west 500MW Target: 2013
11. Hanshin Energy Samdal Ext. (onshore) 32 MW Target: 2011
12. Accioner Korea Kyongnam Yangyang(onshore) 500MW 60MW completed in 2009, Balance step by step
13.DMS/Enometal Ezrobot Off-shore Taean 100MW(3.6MWx27) Est. budget:400 B won
14. KMIPO Jeju Esidol(on shore) 20MW Under design
15. Korea Gov. Off-shore Saemangwm Dam 40MW 2MW track record build-up,
Open for the new model from
16. KARICO Consortium Chonnam Haenam 400MW Target:2016 / Est. budget:1.2 T won
Total 3,142MW
2) Wind projects under planning by Chonnam local government
Capacity
(MW)
On-shore
(MW)
Off-shore
(MW)
Est. budget:
B won for 1st stage
KOSEP 600 40 560 938.6
KOMIPO 300 100 200 250
KOSPO 500 100 400 460
EWP 200 50 150 181.3
KNHC 50 50 60
Fund Institute Consort. 1,000 200 800 4,400
POSCO PWR 600 200 400 2,300
LG E&S 1,000 1,000 3,000
Mitsui/Daewoo E&C 400 400 1,200
Dongkuk S&C 200 200 1,200
Acciona Korea 720 120 600 1,600
Total 5,570 2,210 3,360 15,589.9
Source: Chonnam Local Gov.
Major Component
Component Producing Industry 1)Dongkuk S&C: Tower(Client:Vestas)
2) CS Wind:Tower(Client:Siemens,Vestas,GE)
3) Taewoong:Main shaft,Flange,Forged or molded materials(Client:Vestas,Siemens,GE)
4) PMS Pyongsan:Flange, Gear ring,distance plate, lock plate, rotor shaft, gear box for 1.5MW(Client:Vestas,Siemens,GE,Gamesa)
5) KM: Blades for 2MW, 3MW
6)Hyunjin Source Material:Main shaft, tower flange,Forged materials.
7) Korea Tech.: Rotor hub,Bed Plate
33
Brochure(V-90, 3 MW)
3 D Model of WTG (V-90, 3MW)
Hub: Hydraulic system mounted.
Opening for 3 blades:Pitching system mounted
Gear box
Breaker
Generator Transformer
Opening for tower: Yawing system mounted
Cooling system
Number of Parts: about 100,0000 piece major parts: approx. 3,000 piece
Hydraulic Pitching Control Solution
Gearbox (Hansen Factory)
Generator and Transformer
Electrical Single Line with Generator/Transformer
SCADA System of Wind Farm
26s/25x under producing by Samsung
HQ5000 under developing by HHI
Overseas Off shore Wind Projects
Plant projects including off-shore, overseas contract by Korean Firms
Consortium between reputed WTG supplier and Korean E&C for EU offshore wind projects including those of Scottland.
The Off-shore wind project involves lots of risks as much as the overseas plant project
It is desirable that Korean EPC contractors may contribute for the promotion of the off-shore projects in UK, North and Baltic sea area along with European WTG suppliers.
The major equipment and materials such as power cable under sea, sub structure for the foundation, transformer, switchgears can be supplied during construction. Good case of SandBank offshore project in Germany.
Scottland authority has requested Korean contractor to participate in the offshore projects including the financing facility. Korean ship builders have already made the contract for building the construction vessels, 2 sets by Deawoo and 1 set by Samsung.
Off-shore wind project of German (Invested
by Korean Business Firm and under promotion)
Wind Initiatives in Ontario
• Government policies and environmental priorities - driving for change
• Renewable Energy Supply (RES) Projects
• Renewable Energy Standard Offer Program (RESOP)
• Feed-in Tariff (FIT) and Green Energy and Green Economy Act (GEGEA) 2009
• Ontario’s Feed-in Tariff (FIT program)
• FIT Projects – Renewables including onshore & off shore wind
• Wind capacity expected to again double by end of 2011
• Korean Consortium (2500 MW renewable generation)
Samsung Corp.,Kepco: 1st phase 600MW: Awarded to
Siemens for WTG supply, CS Wind for tower supply
Arklow Banks Wind Farm - The Irish Sea
Photos: R.
Thresher
- GE 3.6 MW x 7 units
- Installed in June 2004 - 1st offshore windfarm in Ireland
NordE.ON 1 Project (Case of Germany)
1)Scale: 5MW x 12units(Repower:6,Multibrid:6) 2) Location:Borkum island N 45Km EEZ 3) Wind data:10m/s(annul. av.), Capacity Factor:43.37% remarks: CF range 25 ~ 28.5% in onland 4)Wave:10m(high), 6~8m/s(Average) 5) Life time: 20 years 6) Status: * 1999/2001: Application for construction * 2001: Permit obtained from Harbor Authority * 2005. FDN license to PROKON Nord * 2006.6:DOTI Joint Company (SPC: E.ON, EWE,AG ,Vattenfall Europ) * 2007.6: Contract with Areva Multibrid for 5MWx6 WTG supply * 2007.7: Award to Areva for Transformer, Consortium for Offshore Substation * 2008.11:Contract with Repower for another 5MWx6 * 2009.11: Completion of erection and now under test operation * Capex: 250 Million Euros. 7) Note: All gearbox and appurtetnant parts for 6 units supplied by Multibrid have been replaced during test operation.
The First Off shore Project in Germany: Alpha-Ventus Project
The First Offshore Wind Project in China
Location: Shanghai Donghai Bridge
Capacity: 102MW(3MWx34units)
Supplier: Sinovel Wind
Completion: 2010.3.
Developer: Shanghai Donghai Wind Power Co.,Ltd.(Invested by China Power International Development Ltd.,Guandong Nuclear Power Group, Shanghai Green Energy)
Contractor: Investors above.
Project Cost: 3 Billion RMB Power Generation:258.5GWh annually
Case of USA: Cape Offshore Wind Project
1)Capacity:468MW(3.6MWx130units)
2) Location: Massachusetts State of USA
3) Progress:
* Start: 2001
* G-permit:2010.4 (Massachusetts local Gov.)
* Completion Est.:2013
4) PPA:20.7 cents/KWh for 15 years with annual
inflation adjustment of 3.5% over 15 years,
34.7cents/KWh at the end of the contract.
5) Price break down: Energy price:12.5, REC:6.7,
Hedge value(CRA):1.5, total:20.7cents/KWh
6) Tariff Increase: about 2% added up
(1.59 $/month/customer)
Overseas Market of Off-shore Wind (1) Round 2 in UK
Overseas Market of Offshore Wind (2) Round 3 in UK
Scottish Territorial Waters (STW) and Round 3 Sites
Source: Crown Estate 2010
11
12
Key STW Site Name Developer MW
1 Wigtown Bay DONG Energy 280
2 Solway Firth E.ON 300
3 Kintyre SSE Renewables 378
4 Islay SSE Renewables 680
5 Argyll Array Scottish Power Renewables 1,500
6 Beatrice SSE Renewables & SeaEnergy 920
7 Inch Cape RWE Npower & SeaEnergy 905
8 Bell Rock SSE Renewables & Fluor 700
9 Neart na Gaoithe
Mainstream 360
10 Forth Array Fred Olsen 415
Round 3 Site11 Moray Firth EDP Renewables & SeaEnergy 1,300
12 Firth of Forth SSE Renewables and Fluor 3,500
Total 11,238
Overseas Market of Off-shore Wind (3) in Germany
Overseas Market of Offshore Wind (4) in EU
Overseas Market of Off-shore Wind (5) in EU
Reference List
Sample of Off-shore Wind Farm in EU Onshore Assembly Foundation Installation Substructure Load-out and Installation Spar Buoy Floating Wind Turbine: Hywind Barge for off-shore wind turbine installation Offshore Wind Turbine Foundations – U.S. Example Offshore Wind Environment and its challenging NREL Simulation of Floating Barge Turbine System Power Network in off-shore wind project (Case of ABB) Power grid system for off-shore wind project (Case of Scottish) Cable Installation under the sea and its equipment DC Cable application (ABB ) O & M of off shore wind farm
Off-shore wind farm, Examples
Sample of Off-shore Wind Farm in EU
Construction Methodology
Onshore Assembly
Foundation Installation
Substructure Load-out and Installation
Photo Credit: Talisman Energy Offshore Demonstration, 2007 5 MW 126m Repower Turbine 45 m water depth, North Sea Aberdeen, Scotland
National Renewable Energy Laboratory Innovation for Our Energy Future
Image Credit: www.greenlaunches.com
• R&D project by StatoilHydro, and Siemens, expected to produce power in July 2010
• 12 km southeast of Karmøy in Norway
• SWT - 2.3 MW architecture
82 meter diameter
65 meter tower
• Spar buoy technology
100 meter draft
202 meter water depth
Reference: w1.siemens.com
Spar Buoy Floating Wind Turbine: Hywind
World’s first large-scale floating wind turbine Siemens SWT-2.3 MW Hywind
Barge for off-shore wind turbine installation
Shallow Water
Transitional Depth
Deepwater Floating
0m-30m 430-GW
30m-60m 541-GW
60m-900m 1533-GW
Land-based
No exclusions assumed for resource estimates
Commercially Proven
Technology
Estimated US Resource
Demonstration Phase
Offshore Wind Turbine Foundations – U.S. Example
National Renewable Energy Laboratory Innovation for Our Energy Future
Offshore Wind Environment and its Challenging
NREL Simulation of Floating Barge Turbine System
National Renewable Energy Laboratory Innovation for Our Energy Future
ADAMS mov.wmv
Power Network in off-shore wind project (Case of ABB)
Power grid system for off-shore wind project (Case of Scottish)
Cable Installation under the sea and its equipment
DC Cable application (ABB )
O & M of off shore wind farm
Thanks for your kind attention
Korea Wind Energy Industry Association Web-site:www.kweia.or.kr
(822-553-6260)