uk offshore wind programmes addressing the barriers brussels
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UK Offshore Wind Programmes addressing the barriers Brussels. 14 th March 2011 Dermot Grimson Head of External Relations, Policy & Planning. The Crown Estate. Is a landowner Is not a regulator Is a public body – The Crown Estate Act 1961 - PowerPoint PPT PresentationTRANSCRIPT
UK Offshore Wind Programmesaddressing the barriers
Brussels
14th March 2011
Dermot GrimsonHead of External Relations,
Policy & Planning1
The Crown EstateIs a landownerIs not a regulatorIs a public body – The Crown Estate Act 1961Is not part of Government – but works closely with
Government, statutory bodies etc.Annual surplus is passed to the UK Government
UrbanEstate
MarineEstate
RuralEstate
Energy in the Marine Estate
3
Wave and Tidal
Gas Storage CO2 Storage
Offshore Wind
• The MaRS programme commenced early in 2008 and now has more than 450 layers of data.
• Supporting the identification of potential areas for offshore wind and other marine activities
• Identifying data constraints and weightings
• Building understanding of marine policy and sustainability
• Links the Crown Estate’s marine spatial planning and marine business strategy
• Building financial and risk modeling capability
UK Offshore Wind ProgrammesRounds 1&2
• 1.3 GW operational• 7.6 GW in development• 1.5 GW extensions
Scottish Territorial Waters• 5.3GW in pre-development
Round 3• 32GW in development
Total: 47.7GW
R3 focus is• Renewable energy targets• Jobs Scale and programme
UK Offshore Wind Market
0
10,000
20,000
30,000
40,000
50,000
60,000
0
2,000
4,000
6,000
8,000
10,000
12,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Round 3
Scottish Territorial WatersDemo Sites
Round 1 and 2 (including extensions)Cumulative Installed MW
Opportunity for generating capacity from all current leasing rounds
Year
Cum
ulati
ve(M
W)
Ann
ual(
MW
)
Future Rounds
Information taken from Developers updated Dec 2010 forward plans and projected capacity
Round 3 Programme Update
7
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Capa
city
(MW
)
Round 3 programme delivery curves
MW of Grid Connection Offers AcceptedMW of project approvals
MW of Draft ES issued for consultationMW of Planning Applications
MW of KPC granted
MW of Leases Signed
MW of Project Construction startedMW of Projects Commissioned
Year2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Information taken from Developers updated Dec 2010 forward plans and projected capacity
Extensions and Demonstration SitesThe objective is to provide a bridge for the supply chain from Round 2 through to Round 3 and ensure that technology development can be accelerated:• Three operators selected to extend four sites, creating
an additional 1.5 GW.• Two projects offered increased capacity within current
site areas for a total of 340 MW.• Four sites with a total of 35 test pads
awarded to developers
8
9
Strategic Challenges to Programme Delivery
Health & Safety Planning & Consents
Grid & Technology
Supply Chain & Skills
Project Economics & Financing
Rapid sector growth, further from shore
New Planning Act, revisit IPC and NPS’s, untested new processes and teams, funding aviation solutions, MCZ uncertainty
Coordinated offshore devt, OFTO regime, charging, technical standardisation, risk and perception
Competing markets, capacity, early investor confidence, delivering infrastructure investment and OEMs, leadership on skills
Consented projects reaching investment hurdle rates, access to construction finance, facilitating refinancing when operational
Levelised Cost of Energy
10
MPI: Adventure
Swire Blue Ocean MPI: Discovery
Beluga Hochtief
RWE: 2 vessels
FOW: Bold Tern (X2)Van Ord
A2SEA: Sea InstallerSeajacks: Zaratan
Turbine Installation Vessels
11
Ports and Harbours
£130M Support
Bremerhaven: Then
Bremerhaven: Now
Humber
Belfast
?
Supply Chain Investment: £2.2 billion
12
39 54
436
36
6307
861
150
Publically stated investment intent in supply chain 2010
Towers
Substructures
Turbine
HVDC/Cables
Ports
Generators/Blades
Vessels
Demonstration Sites
Source The Crown Estate: Figures in £M
Offshore wind investors: global attractiveness index
13
40
45
50
55
60
65
70
75
80
85
China
UK
US
Germany
Italy
France
Ireland
Sweden
Netherlands
Belgium
S Korea
Denmark
Source: Ernst and Young Country Attractiveness index 2008 - 2010
European Context
Average percentage contribution to offshore wind capacity based on 2010 EWEA and WWEA projections
15
Supporting Information
http://www.thecrownestate.co.uk/our_portfolio/marine/offshore_wind_energy/supply-chain.htm
Thank you
Photo Courtesy Vattenfall