Arklow - GEWE 3.6 MW Offshore ProjectLessons Learned

John Stephens

Global Development Manager

GE Energy

Global Offshore Update A $ Multi-B industry over the next 10 years. Remarkable growth 15 – 20 % CAGR Can be sited closer to urban populations Proximity of local grid connection to urban centers. Less turbulence and WTG Fatigue Higher capacity factors – 50% Cost of electricity approaching 6¢/kWh Favourable regulatory support.

Global Growth

US 2003 Installed <100 MW Planned >8 GW

Europe 2003 Installed base 260 MW Planned >11 GW.

Inst

alle

d M

W

Offshore Europe Americas

Onshore

Installed base for Wind Power

GE Wind Energy – Arklow ProjectSite Specifics

• 8.5 m/s wind speed at 73,5 m

• 10 km from shore

• 3.5 – 6.4 m water depth

• Breaking waves & high currents

• Dense sand & gravel

• Co-Development project of Airtricity & GE Wind Energy

Arklow Background 25.2 MW Demonstration project of GE Wind

Energy’s 3.6 MW Offshore Wind Turbine Generator

Project located 10 kms off the coast of Arklow, Ireland in the Irish Sea

7 x 3.6 MW WTGs constructed by GEWE in 2003 GEWE co-developed project with Irish Green

energy company, Airtricity GEWE has built and will own and operate turbines

for approximately 2 years, then transfer (BOOT)

During Ownership period GEWE will ensure acceptance of: Basic reliability of design Necessary operating hours to prove new

technology Warranty provisions and weather

exclusions adequate for financing Optimization of O&M – Cost effective and

safe

45 miles south of Dublin

Arklow Update

Asset Management team in place Develop World class O&M Document lessons learned and implement solutions

Completing evaluation of how to optimize access Completing comprehensive maintenance plan with major EHS focus Validating plan to jump to 4 MW Wind Turbine

All 7 Wind turbines Pre-Commissioned 3 Wind turbines commissioned & under final testing - expect to generate electricity by 8th March 2004 Remaining turbines 50% commissioned All undersea cabling connected & tested Land-based switch house commissioned Meteorological mast foundation and tower fully installed, monitoring & measurement equipment being installed

Arklow Lessons LearnedConstruction Complete detailed logistics planning early in

execution phase Complete geo-technical analysis early Develop design sufficiently to minimize changes Coordinate order placement w/ legal, accounting

& tax constraints Acknowledge EHS risk & convert to competitive

advantage Access…access…access

Contractual Partner with offshore contractors having skills

to take installation risk Engineering & Supply Chain must be

completed ahead of construction window Manage undersea cable like a separate project New major components should be managed in

a similar fashion to product NPI

Arklow EHSGrid Connection GEWE personnel closely liased with ESB to

ensure Arklow Safety Management system interfaced with local Electricity Grid safety boundary documents.

Leverage GE Safe Systems of Work from other GE Energy businesses to suite local legislative requirements

Environment & Safety Management Systems

GE’s global EHS systems recognized as world leaders.

Risk management approach from Corporate level through to a Site’s business plan.

Developing access systems to maximise availability and to suite local conditions.

All offshore personnel are required to attend the BOSIET course(Basic Offshore Survival).

Arklow – Objectives and Plans

Environment, Health & Safety GEWE will be a leader in the Offshore Wind

Industry for EHS programs Active involvement and assessment of all

activities from construction to access to O&M Established environmental monitoring and

reporting program

Operations & Maintenance (O&M) Using 2 year ownership period to develop

expertise Asset Management, Services & Engineering

organizations working closely to optimize

Arklow – Objectives and Plans

Availability Tiger Team Multi-discipline team formed to drive reliability Manage Arklow turbines with high availability objective Establishing remote monitoring of Arklow turbines through monitoring center in Germany Assess design and develop redundancy to allow long maintenance intervals. Long term goal is once per year

Access Evaluating options to optimize access methods considering EHS, availability impact and cost Recognize EHS risks and looking to set standards Looking to leverage best practices from other offshore industries

Thank you!