SET-Plan Offshore Wind Implementation Plan Final; to be adopted by SET-plan Steering Committee

13 June, 2018

Dr. Ernst van Zuijlen; TKI Wind op Zee (Netherlands); chair of the TWG

Background

13/06/2018

• Europe’s wind industry is world leader in (offshore) wind and continues to grow

• In 2030 250 GW of which 70 offshore, will beinstalled

• Covering 30% of Europe’s power demand

• Offshore wind on the North Sea will be back bone of energy system for NW Europe

• Floating wind will evolve rapidly in other seas

• Resources are stable and abundant and public acceptance is high

• Major breakthroughs have been achieved

SET-Plan; Offshore Wind Implementation Plan

Final; To be adopted by SET-plan Steering Committee2

Declaration of Intent* (January 2016 + update)

13/06/2018

1. Reduce the levelised cost of energy (LCoE) at final investment decision (FID) for fixed offshore wind** by improvement of the performances of the entire value chain to less than 10 ct€/kWh by 2020 and to less than 7ct€/kWh by 2030.

2. Develop cost competitive integrated wind energy systems including substructures which can be used in deeper waters (>50m) at a maximum distance of 50 km from shore with a LCoE* of

• less than 12 ct€/kWh by 2025 and to

• less than 9 ct€/kWh by 2030, striving towards cost competitiveness

• In the Implementation Plan the target for fixed offshore has been updated:

Reduce the levelised cost of energy (LCoE*) at final investment decision (FID) for fixed offshore wind by improvement of the performances of the entire value chain striving towards zero subsidy cost level for Europe in the long term.

SET-Plan; Offshore Wind Implementation Plan

Final; To be adopted by SET-plan Steering Committee3

*SET-plan Declaration of Intent (20/01/2016): https://setis.ec.europa.eu/system/files/integrated_set-plan/declaration_of_intent_wind.pdf**the costs for delivering the electricity to onshore substations are taken into account within the LCoE

Process

13/06/2018

• Many meeting from March 2017 until May 2018

• Participants from NL, BE, DE, ES, FR, IT, DK, EE, NO, TR, DK, NO, IE

• Supported by EC (RTD, ENER, JRC)

• Input from EERA and ETIP Wind (incl. WindEurope)

• Discussions on rapid cost and market developments

• Coordination with North Sea Declaration support group(specifically support group 4)

SET-Plan; Offshore Wind Implementation Plan Final; To be adopted by SET-plan Steering Committee 4

Pre-conditions forfurther growth

13/06/2018

• Minimum deployement rate of 4GW/yr and good market visibility

• Support like Innovation Fund for floating (demonstration phase)

• Continued and accelerated R&D is essential:

• Further cost reduction as offshore wind is urgently needed:

• More challenging sites also needed for EU goals

• Will be the feed stock for many energy functions

• Technology still shows ample opportunities (upscaling; industrialisation, new technology)

• Floating wind needed for Meditteranean

• System integration

• Social acceptance; multi-use of the sea

SET-Plan; Offshore Wind Implementation Plan

Final; To be adopted by SET-plan Steering Committee5

R&I Activities(broad span of TRL levels)

13/06/2018

Technology-related R&I activities:

1. System Integration

2. Wind Energy Offshore Balance of Plant

3. Floating Offshore Wind

4. Wind Energy Operations and Maintenance

5. Wind Energy Industrialisation

6. Wind Turbine Technology

7. Basic Wind Energy Sciences

Non-technological R&I activities:

8. Ecosystem and Social Impact

9. Human Capital Agenda

SET-Plan; Offshore Wind Implementation Plan

Final; To be adopted by SET-plan Steering Committee6

13/06/2018SET-Plan; Offshore Wind Implementation Plan Final; To be

adopted by SET-plan Steering Committee 7

R&D investment EUR 1090 million

13/06/2018

First estimate:

• MEUR 446.5 from the private sector (41% of the total);

• MEUR 372.4 from national programmes (34% of the total);

• MEUR 268.5 from EU funds (25% of the total).

For windturbine development the focus will be at theindustry (incl. demonstration models)

For low TRL work KI and Academia can take the lead

• These figures are provisional and will need to be further investigated, validated and agreed during the implementation phase.

SET-Plan; Offshore Wind Implementation Plan

Final; To be adopted by SET-plan Steering Committee8

Next steps: a Permanent WorkingGroup

13/06/2018

• Set up monitoring and support activities

• Further develop the TWG into a PWG: a permanent working group

• Scene is changing rapidly: a ‘rolling agenda’ is needed

• There is a need for a platform to continuouslyexchange R&D ideas and look for cooperation

• Half yearly meetings with presentations andmatch-making

• EERA has drafted a possible approach

SET-Plan; Offshore Wind Implementation Plan

Final; To be adopted by SET-plan Steering Committee9

SET-Plan Offshore Wind Implementation Plan Final; to be adopted by SET-plan Steering Committee

13 June, 2018

Dr. Ernst van Zuijlen; TKI Wind op Zee (Netherlands); chair of the TWG

Indicative subdivision per PAPriority Action Total (M€)

EU

Funding (%)

National

funding (%)

Private

funding (%)

1 System Integration 115 22% 48% 30%2 Wind Energy Offshore Balance of Plant

30 38% 43% 18%3 Floating Offshore Wind 70 17% 54% 29%4 Wind Energy Operation and

maintenance 43 47% 44% 9%5 Wind Energy Industrialisation

55 31% 31% 38%6 Wind Turbine Technology 405 15% 15% 69%7 Basic Wind energy sciences 90 46% 49% 6%8 Ecosystem, and social impact

34 44% 41% 15%9 Human Capital Agenda 25 60% 40% 0%

Total budget required all actions

(million €) 1090 25% 34% 41%

13/06/2018SET-Plan; Offshore Wind Implementation Plan Final; To be

adopted by SET-plan Steering Committee 11