Peter Malligan BWA 091215 PM CSTP Supergrid Meeting

8/9/2019 Peter Malligan BWA 091215 PM CSTP Supergrid Meeting

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An overview of offshore w ind in the UK

Peter MadiganOffshore Wind Development Manager

15th December 2009


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BWEA | CSTP/Supergrid meeting | 15-12-2009

BWEA members

Over 540 Company members

Broad membership of developers, suppliers,

grid companies, financiers and service providers

Sponsors


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4/16BWEA | CSTP/Supergrid meeting | 15-12-2009

Renewable Energy Targets

EU TARGET = 15% of all UK energy by 2020

In the UK this could translate to*:

10% Renewable Transport

14% Renewable Heat

30% Renewable Electricity

*Government Renewable Energy Strategy consultation scenario



~30% renewable electricity by 2020 could translate to*:

Onshore wind: 14GW, ~10% Offshore wind: 20GW, ~19% Wave & tidal: 1-2GW, ~1%

UK wind (on and off shore) is currently 4 GW, = ~3%

Renewable heat and transport starting at a low base

Wind energy needs to deliver the major share

*BWEA scenario assumes capacity factors of30% onshore and 40% offshore

How big could it be?



Pre-Budget Announcement

All projects accredited between April 2010 andMarch 2014 receive 2ROC/MWh

More generous than original proposal

Questions over projects building close to March 2014

170 million for R&D and ports infrastructure

Industry aims to bring costs down Supply chain competition

Exchange rate risk



Offshore w ind Economics

Bubble area represents project capacity

London Array

Walney

Sheringham Shoal

Thanet

Greater Gabbard

Gunfleet Phase II

Gunfleet Phase I

Horns Rev II

Alpha Ventus

Robin RiggRhyl Flats

Thornton Bank

Princess Amalia (Q7)

Lillgrund

EgmondBarrow

Kentish FlatsScroby Sands

Middlegrundden

Irene Vorrink

Lely

Bockstigen

Blyth

Utgrunden

Tuno Knob

North Hoyle

Horns Rev

Yttre StengrundNysted

Sams

LID

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Year (main contracts signed)

ProjectCapEx

(M/MW)

Contract (Post 2009 Budget) Contracted (Pre 2009 Budget)Under Construction Operational

Near-Contract (Expected) Projection (High Supply Chain Confidence)Projection (Low Supply Chain Confidence)

Costs have increased to 3.1m/MW Report: Charting the right course



688 MW installed

1156 MW under construction

3442 MW consented

3420 MW in planning

Projects

UnderwayRounds 1 & 2


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Round 3

Government go-ahead thissummer

Crown Estateallocation Q42009

Majorexpansion onRounds 1&2,

~25GW


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Scottish

TerritorialWaters

Exclusivity ofsites allocated

SEA to be

performed Over 6GW of

capacity

Similar deliverytimetable toRound 3

UK Offshore Wind Capacity


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UK Offshore Wind Capacity(With supply chain limitations imposed)

1 0 0 1 1 1 1 2 1.1 2.2 2.3 4.1 2.3 2.4 2.3 1.4 2.7 4.2 5.6 6.5 6.8

0

1,000

2,000

3,000

4,000

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

AnnualCapacity

(MW)

0

5,000

10,000

15,000

20,000

CumulativeCapacity(MW)

*Excludes Scottish Territorial Waters


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BVG Estimated European InstalledOffshore Wind Capacity to 2050


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Major Business Opportunity for the UK

Supply chain isalready expanding

JDR cables newfacility Hartlepool Opened July 2009

100 new jobs


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Onshore grid infrastructure investment isurgently required to ensure that grid capacity is

available.

A strategic plan is needed

for UK connection

points and capacity.

Further interconnection with

Europe is hugely beneficial.

Grid


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Thank you

Peter Madigan BWEA Offshore Wind Development [email protected]

Documents

Peter Malligan BWA 091215 PM CSTP Supergrid Meeting