UK Supply Chain: Supporting 2020 Renewable Energy

TargetsBruce Valpy, BVG Associates

Head of Business Development

1. UK Renewables

2. Status Update - UK Wind

3. Delivery Constraints

4. What UK is doing to help - Ports

5. Inward Investment

6. Innovation Support

7. Summary

Agenda

1. UK Renewables

Trade promotion and supply chain development service to:

“support the growth of a world-scale UK renewable energy industry with increasing global market share, and capabilities sufficient to support the achievement of the UK’s 2020 renewable energy targets”

A One Stop Shop

• Inform, coach, support and champion UK businesses

• Focus on excellence• Respond to requests from

– Wind industry – UK market entrants – UK enabling bodies

• Proactively develop supply & innovation opportunities

• Host UK stands at global events

2. Status Update - UK Wind

• 3.3GW operating (600MW offshore #1 globally)

• 2GW under construction (800MW offshore)

• Over 7GW consented (over 4GW offshore)

• UK has best wind resource in Europe• 2008 best year yet (900MW installed)• 2020 #2 in EU; offshore #1 globally

Status Update: OffshoreLegendRound 1 Offshore Wind Farm

Round 2 Offshore Wind Farm

Potential Round 3 Development Zone

Proposed sites in Scottish territorial waters

Progress UpdateRound 1 Round 2

+ + + =

3. Delivery Constraints

2006 2007 2008 2009

Projected European Offshore Market

2009 Key Delivery Issues

At an industry level:• Economics • Grid infrastructure

At a project level:• Statutory consultation• Turbine supply• Subsea export cables• Turbine, foundation &cable installation• Construction ports?

Delivery Constraints – Wind Turbines

4. What UK is doing to help - Ports

Start (Q2-08)Industry view: UK ports don’t have the space and facilities and don’t want to make the investment needed

Ports’ view: Can’t understand why industry needs so much space and won’t invest without orders

Government view: Unsure about how to help

NowIndustry view: Positively surprised about UK ports visited

Ports’ view: Keen to continue engagement

Government view: Keen to help and know what to do

What we did

etc. etc.

etc.

etc.

etc.

+ 1-to-1 visits+ UK prospectus+ Ports workshops+ follow-up action s

Conclusions:•There is enough space at UK ports for R3 projects, both for construction and manufacturing•Space not sitting idle now•Both central Government and regional enablers play an important role in ‘making things happen’•UK Renewables

‘One Stop Shop’ - here to help

5. Inward Investment

Significant support available:• Case by case basis• Government + regional support• UK Renewables ‘One Stop Shop’

eg. Vestas Global Research Centre – Rotor Systems

6. Innovation Support

Significant support available:• Energy Technologies Institute (€50m+)• Carbon Trust (€35m+)• Crown Estate• Technology Strategy Board & EPSRC• Regional Enablers• Government • UK Renewables ‘One Stop Shop’

7. In summary

• The UK offshore wind market will be the largest in the world for the foreseeable future

• UK is focussing on delivery of GW, offshore and onshore• UK Renewables is at the heart of making it happen –

please come and talk.

www.UKrenewables.com Bruce.Valpy@UKrenewables.com