Wind Energy Update No. 2 2011

wind energyupdate

Exploring innovative methods for offshore wind resource assessment

New designs for offshore wind turbine structures

EDP Renewables: The wave of the future

NEWS FROM DNV TO THE WIND ENERGY INDUSTRY No 01 2011

MOVING ONWARDS AND UPWARDS– as the wind energy industry experiences rapid growth

2 | WIND ENERGY UPDATE NO. 1 2011

CONTENTS

›› ›› ››EDP Renewables: The wave of the future

New designs for offshore wind turbine structures

Exploring innovative methods for offshore wind resource assessment

Photos/illustrations: ©DNV, except: p12–13 ©Insitu, p15 ©RenewableUK, p22 ©South Boats, p26–27 ©Fred. Olsen Windcarrier, p29 ©Horizon, p33 ©Mychal Richardson/Puget Sound Energy, p35 ©Billy Quach

Vattenfall: Managing the turbulence ....................................4

Certification of wind turbines and wind energy projects offers continuity, confidence and trust ..................8

Developing new knowledge ................................................10

Exploring innovative methods for offshore wind resource assessment ....................................................12

Risk management and the importance of good HSE practice ...............................................................14

Industry growth demands workforce training ...................16

New design practices for offshore wind turbine structures ..............................................................................20

The world’s first class rules for wind farm vessels .............22

New offshore standard for wind turbine installation units ..................................................................24

Fred. Olsen Windcarrier: Pioneering wind turbine installation ............................................................................26

EDP Renewables: The wave of the future ..........................28

Puget Sound Energy: Winds of change ..............................30

DNV acquires BEW: What a match! ...................................34

WE WELCOME YOUR THOUGHTS!

wind energy update

Published by DNV Global Governance, Market Communications

Editorial committee: Frøydis Eldevik, Director of Operations, Cleaner Energy EuropeKaren Conover, Segment Director, Wind EnergyMagne A. Røe, EditorJoyce Dalgarno, Production

Design: Coor Service Management/Design Dept. 1101-067Printing: 07 Oslo as, 6,000/ 03-2011

Please direct any enquiries to [email protected]

Online edition of wind energy update:www.dnv.com/windenergy

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© Det Norske Veritas AS www.dnv.com

12 20 28

WIND ENERGY UPDATE NO. 1 2011 | 3

EDITORIAL

We are pleased to pre-sent the inaugural issue of Wind Energy Update, a new publication pro-duced by DNV. Wind Energy Update includes interesting articles on recent developments in the wind industry, profiles on companies making an impact, and the latest news on cutting edge research and inno-vation projects.

The offshore wind indus-try has been the focus of increasing attention this year as ambitious plans for Round 3 in the UK unfold and other countries look to indus-trialise the offshore wind industry in the North Sea. New markets have also begun to emerge in Asia and North America. One of the companies leading the way is Vat-tenfall, the Swedish

energy giant. Vattenfall completed the world’s largest offshore wind project, Thanet, off the UK coast last year. DNV worked hand in hand with Vattenfall on pro-ject certification activi-ties for Thanet. A more detailed look at Vat-tenfall and their experi-ences with the Thanet project is presented in this Update, followed by more information on the role of project certi-fication for the offshore wind industry.

Joint industry projects are a good mechanism to bring together diverse stakeholders to investi-gate a common area of interest. In this issue, the latest thinking on design practices for off-shore wind structures, offshore wind resource assessment, and safety

guidelines are among the topics presented.

As wind projects are sited farther offshore and placed in deeper water, installation, opera-tion and maintenance strategies must evolve to address the unique risks and challenges of working offshore. The development of new marine access options and the importance of transporting staff safely, efficiently, and reliably becomes increasingly important. We present our new offshore class rules for service vessels issued in January 2011, promoting safety and uniformity in this grow-ing area. This supple-ments our class notation for offshore wind turbine installation vessels issued in 2010, which is targeted at the large number of

new, purpose built wind turbine installation ves-sels expected in the next decade. One of the com-panies rising to meet this demand is Fred. Olsen Windcarrier, profiled in this Update.

Lastly, it should be noted that not all the action is offshore. Onshore wind projects continue to dominate the overall capacity numbers in the Americas, Europe, and Asia. Innovative companies like Puget Sound Energy and EDP Renewables are making a difference in the North American market.

As the wind industry moves onward and upward, DNV is pleased to be part of the process.

Enjoy the Wind Energy Update.

WIND ENERGY UPDATE, ISSUE 1

Karen Conover,Segment Director,Wind Energy


VATTENFALL

›› With an aggressive target to double wind power production to 4TWh between 2009 and 2011, Vattenfall is developing on and offshore wind projects in Denmark, Sweden, Germany, Poland, The Netherlands, Belgium and the United Kingdom.

Having just launched the world’s largest offshore wind farm, you’d expect Ole Bigum Nielsen to take a moment to savour the accomplishment. But with Vattenfall’s long-term goal of a climate-neutral energy mix by 2050, he is at the centre of ambitious short-term plans to meet that target.

TEXT: KENNETH R. WINDSOR

Managing the turbulence


VATTENFALL

›› Ole Bigum Nielsen, Vattenfall’s Head of UK Projects highlights the short term plans to meet the target.


VATTENFALL

As Vattenfall’s Head of UK Offshore Pro-jects, Ole Bigum Nielsen is among a select few in the industry with more than a dec-ade of hands-on experience building wind farms. Nielsen, who earned his degree in civil engineering from University College in Denmark, spent his first years after graduating on various types of construc-tion projects.

But he knew that he needed a new chal-lenge. “A friend working at Elsam (now Vattenfall) and I talked about all the major trends in our industry, which ultimately helped me determine that my future was in offshore wind energy.” He hasn’t looked back, working on wind farms in Denmark, China, Italy and the UK.

For the past four years he’s been a project manager at Vattenfall, the Swedish government-owned energy giant. He first launched the Lillgrund Offshore field in 2008 and then in September 2010, com-pleted Thanet Offshore Wind Farm off the southeast coast of England. While initially Project Manager, he was soon promoted to Project Director and now heads Vatten-fall’s offshore projects in the UK.

With an aggressive target – double wind power production to 4TWh between 2009

and 2011 – Vattenfall is developing on- and offshore wind projects in Denmark, Sweden, Germany, Poland, The Nether-lands, Belgium and the United Kingdom. Nielsen’s work will play an important role in achieving this goal.

A ROCKY START For Nielsen, a long-term perspective must also be balanced with keeping one eye on the short-term, something he is adept at given the challenging start to the Thanet project.

The heady pre-credit crisis days of easy money and risk-intensive investments brought many investors with short-term perspectives into enterprises that demand-ed long-term thinking. Such was the case with Thanet Offshore Wind Farm.

Originally conceived by a UK energy developer as part of the Crown Estate’s Round 2 for offshore wind projects, the rights to develop and build Thanet was sold to a US-based hedge fund in 2007. As construction started, the hedge fund encountered financial problems along with the rest of the planet in the autumn of 2008.

As the CEO of the hedge fund

responded when asked if he was a socially responsible investor (during summer 2008), “No. Our motives are purely com-mercial. It’s not our job to engage in charity with teachers’ retirement funds. Our role is to figure out how to make the highest returns we can.” Later that year the hedge fund was forced to abandon the wind farm.

Just as Thanet was going into melt-down with supplier contracts suspended or cancelled, Vattenfall stepped in at the end of October 2008 after a breakneck due-diligence process. Nielsen explained, “I arrived at the UK office in London on Monday after the papers were signed. We knew the project had its problems. There were over 80 suppliers, many of whom did not know what the others were doing or how their work synchronised with the rest.”

It was clear to Nielsen that short-term thinking and the lack of the previous own-er’s offshore experience played a part in the mess he had to make the best of. Niels-en had a rigorous project management agenda: “With so many direct interfaces – 80 suppliers rather than the typical seven or eight direct contractors – we had an

›› Ole Bigum Nielsen


VATTENFALL

intensive start. This placed heavy demands on my management team that weren’t in the “textbook” for constructing offshore wind farms.” But the advice from the top was clear-cut: get the project back on track and keep it moving.

STAYING NIMBLE Weeks and months of hard work renegoti-ating supplier contracts, streamlining the workflow and instituting quality controls required iron-coated patience and an eye on the goal.

Nielsen had worked with DNV on other projects and was pleased they were on board as partners to provide project certification. But the challenges he faced also affected the certification process. “For example, one big issue we faced was that the former owner had not created a uni-form design for the monopiles and transi-tion pieces, which meant we had many different designs! It was too late to change this. But we were under a lot of pressure to stick to the schedule, too. The DNV team was flexible in helping us run an overlapping process where we could start manufacturing while still completing cer-tification. Without their highly integrated

approach, the project would have been delayed at least seven months, possibly more.”

When asked if he ever doubted whether he and his team could achieve the dead-line, Nielsen stops to ponder the question. “Not really, but there were some scary moments, like when one of the sub-con-tractors of the offshore substation went bankrupt one month before installation. We were negotiating with the administra-tors, while still trying to ensure we main-tained quality, schedule and budget. In the end we made it work, but it was hectic.”

With Thanet behind him and more Vattenfall offshore activities kicking into motion, there is not much keeping him from taking on even bigger challenges. These short-term projects, wherever they might take him, won’t keep him away from addressing long-term industry concerns, “We need to make offshore wind more economically viable, which means bringing construction costs down and improving the efficiency of the turbine. If, for exam-ple, we can get the capacity factor of the turbine up, say 25%, this will start to bring the price of wind down. We need our sup-pliers and the wind turbine manufacturers

to take a longer-term view with us.”When asked what he is most proud of

at Thanet, Nielsen’s reply is straight to the point: “With the kind of turbulence we started with, the fact that we did it on-time, on-budget and to the highest quality is quite an achievement. I still remember saying to myself at the beginning of the project, ‘if we can do Thanet, we can do anything’.”

There’s no question that Vattenfall’s secret weapon to reaching that fourth TWh of annual wind power in 2011 is cur-rently sitting in London, ready to take on more.


PROJECT CERTIFICATION


Certification is highlighted in this article as an independent third party service offered in order to ensure not only compliance with applicable codes and standards, but also that the project/turbine meets perfor-mance and safety requirements and that the development and operational risks are correctly addressed and managed.

KEY RISK DRIVERS As with other industries experiencing rapid growth and development, we see several key risk drivers in the wind industry that stakeholders in wind energy projects have to address and mitigate properly: the project economics, the reliability of the wind turbine, the operational and maintenance risks, the availability of a grid connection point, the required safety level and the supply chain challenges. We also witness an industry where assets very often change ownership and a range of new players enter the scene with limited techni-cal and management experience in wind energy projects.

PROVIDING VALUE THROUGH A SYSTEMATIC APPROACH In this context, a third party such as DNV provides value by offering a systematic approach to all phases of a project – from concept and project development to pro-ject execution and operation – in order to reduce the project’s technical and eco-nomic uncertainties. Particularly in the early phases of a project, when the risks are typically very high and the mitigation options are under discussion, the expe-rienced third party will offer technical

insight, asking the right questions to address the high risk items.

Typically, an independent party sits between the developer and the financier/engineering company and will verify the design basis and ensure the design’s com-pliance against relevant codes and stand-ards. The assumptions and methodologies are questioned, the design parameters are assessed and independent analysis is carried out on critical elements, such as the load analysis calculated by the manu-facturer and assessment of the dynamic behaviour. These examples of activities represent the technical value the veri-fier delivers to the developer, and to the owner if the developer is financed by other sources.

Today, the industry recognises the role of a third party and international stand-ards have increasingly gained importance and credibility, allowing the industry to reduce key risks and ensure momentum and strong interest from the financial com-munity.

Why do the different stakeholders in the wind energy industry – project developers, project owners, turbine manufacturers, the financing community, insurers, regulators,

and engineering companies – deem certification as a best practice to manage risks throughout the life cycle of wind projects both offshore and onshore?

TEXT: FRØYDIS ELDEVIK

PROJECT CERTIFICATION

Certification of wind turbines and wind energy projects offers

continuity, confidence and trust

›› Frøydis Eldevik, Director of Operations, Cleaner Energy Europe


DNV’S INNOVATION PROJECTS

Although wind energy is becoming main-stream, there are still many technical, envi-ronmental and financial challenges that investors, manufacturers and developers need to understand thoroughly in order for their businesses to be successful.

DNV, together with the industry, is continuing to focus on the development of technology to help understand these challenges. We ensure that the concepts and methods are flexible, and we facilitate novel solutions to problems by developing standards and best practices. These reflect modern design philosophy and support all stages of the decision-making for the ben-efit of industry.

Each year, DNV provides the energy and maritime industries with numerous publications covering Offshore Standards, Standards for Certification, Rules for Clas-sification, Guidelines, Classification Notes and Recommended Practices. In addition,

DNV takes a leading role in develop-ing and revising international standards through its active involvement in a number of International Electrotechnical Commis-sion (IEC) committees and European and national standards bodies.

Developing new technologies, methodologies and standards has always been a focus of attention for DNV – we recognise that knowledge and innovation help industry develop and prosper. DNV’s comprehensive research programme includes a wide variety of cutting-edge projects on particular

areas or issues - issues that are deemed to be of significance to the industry. Often industry partners join the projects and, together, the best solutions and innovations are found and developed.

TEXT: SVEIN INGE LEIRGULEN

Developing new knowledge

CURRENT PUBLICATIONS

DNV Standard DNV-OS-J101 – Design of Offshore Wind Turbine Structures

Principles, technical requirements and guidance for offshore wind turbine structures

Life-cycle approach covering design principles through to the completion of decommissioning

DNV Standard DNV-OS-J102 – Design and Manufacture of Wind Turbine Blades

Detailed interpretation of the basic requirements for blades, including design, manufacturing and testing

DNV Standard DNV-OS-J201 – Design of Offshore Substations

Standard describing the baseline for the safe design, layout and operations of offshore substations

Guidelines for Design of Wind Turbines (Risø DTU/DNV)

Guidelines for the design of different types of wind turbines

›› Erik M. Christiansen, Senior Surveyor, DNV


DNV’S INNOVATION PROJECTS

DNV’S INNOVATION PROJECTS IN 2010

Title Content

Wind HSE Hazard Management Framework for the global wind industry

DNV developed an HSE Hazard Management Framework tailored for the wind industry that will not only provide best practice guidance documents but also act as an “umbrella” to support other HSE cutting-edge initiatives.

Verification of complex foundation structures for offshore wind turbines

As offshore wind farms move further from shore, their foundations are becoming more complex. Foundations such as jacket structures used in the oil and gas industry will often be used. DNV has a state-of-the art simulation tool (HawC2) showing the wind and wave loads on these structures, but pre- and post-processing tools were needed and hence were developed in this project.

Methods for correcting the complex flow bias of remote sensing technology

This JIP brought industry partners together to better understand the value of and risks involved in remote sensing technology. The project focused on developing a validated method for correcting biases of remote sensing measurements in complex flows.

Wind turbine gearbox durability support study

DNV was awarded a contract by the US Department of Energy to study wind turbine gearbox durability. The project aimed to relate wind turbine operational data to the wind turbine gearbox condition in order to understand the root causes of failures and improve gearbox design and reliability. The project culminated in the building of a framework for recommended practices for gearbox health monitoring.

Implementation of curtailment strategies to obtain production data for use in wake studies

Meteorologists and engineers from DNV worked with industry partners to identify wind projects subject to forced curtailment and to develop strategic curtailment strategies for obtaining data that is useful for understanding wake losses.

New wind turbine blade standards The next generation of composite wind turbine blades needs concurrent processes involving design, manufacturing, testing, certification, maintenance and repair, thus covering the complete product life cycle. New standards based on a damage-tolerant philosophy were developed in this project.

Grouted connections with shear keys The existing design standards were based on very limited test data for alternating dynamic loading on grouted connections with shear keys. A JIP was launched to achieve a reliable data basis for a design methodology for this.

Value chain assessment for wind farms The purpose was to build a probabilistic life cycle model to provide strategic and management decision support for large investments related to wind farms. The model visualised risks and the correlated effect on the investment decision process, thereby reducing or avoiding erroneous decisions at an early stage.


OFFSHORE WIND RESOURCE ASSESSMENT

Developing a robust wind resource assess-ment campaign that minimises uncer-tainty in project energy estimates and site conditions while managing the cost and schedule of the measurement work is a complicated balancing act for all wind development projects.

Onshore, the measurement options are relatively well-known, moderate in cost and accepted by the financial community. Nearly every onshore wind project uses multiple on-site meteorological towers as the primary method of wind resource characterisation, possibly supplemented by off-site towers,

modelled data and/or remote sensing data. Offshore, the installation of multiple

towers is cost-prohibitive, remote sensing devices can be more difficult to deploy and modelled data is more difficult to validate without other high-quality measured data for calibration.

Accurately measuring the wind resource and site conditions at offshore wind projects presents unique challenges and associated opportunities for innovation. The industry has not yet matured to a consensus view on the best approach to tackling offshore

wind resource assessment. DNV conducted an internal research project with input from industry partners to explore innovative ways of assessing offshore wind resource.

TEXT: HOLLY HUGHES

Exploring innovative methods for offshore wind

resource assessment

›› Characterising the wind with ScanEagle unmanned aerial vehicle.


OFFSHORE WIND RESOURCE ASSESSMENT

›› Flow distortion around the platform can impact offshore wind measurements.

To help developers and other interested parties plan an offshore wind resource measurement campaign, DNV investigated various approaches with the goal of provid-ing the best balance between the following four goals:1) Low cost – keeping expenses as low

as possible during an offshore wind project’s development phase is critical, particularly for projects that are not guaranteed to move forward and be constructed.

2) Short schedule – while offshore wind projects typically have long development schedules compared to onshore pro-jects, it may not be feasible to conduct measurement campaigns throughout the entire development process. For example, some developers may not want to commit to paying significant expenses for data collection while an offshore project is in an early permitting stage. Consequently, it is often necessary to condense most of the data collection activities into one or two years.

3) Low level of uncertainty – project financing is frequently driven by the uncertainty in project energy estimates, and a wide spread between the P95 (or P99) and P50 energy levels can make financing terms unacceptable. Minimis-ing uncertainty in so far as possible

is therefore critical for a successful project.

4) High “bankability” – advances in resource assessment technologies need to be accepted by investors as well as project developers. If the investors are not sufficiently comfortable with the data, a project will not be successfully financed. Many investors are hesitant to accept some innovative technolo-gies, and developers often do not wish to invest in collecting data using newer technologies if they do not have assur-ance that the data will eventually be used.

In most cases, balancing these four goals involves a combination of technologies in a project, and there are often tradeoffs among these four goals that make certain technologies and options more or less attractive at a given project site. If a project schedule allows for five years of data col-lection, there will be more opportunities to try higher risk but lower cost collec-tion systems than if the same project only allows one year for data collection, as there will be more flexibility to change plans if the initial choices are not providing the necessary data.

Technologies range from traditional meteorological masts to unmanned aerial vehicles, and include instrumented buoys,

fixed and floating remote sensing (sodar, lidar), the use of onshore meteorologi-cal data offshore, modelled data, satellite observations and scanning lidar. Floating remote sensing is of primary interest, so we took a detailed look at the impact of motion on measurements and found that floating remote sensing with motion cor-rection should be able to provide unbiased wind speed information.

DNV has issued guidelines for the appli-cation of remote sensing to wind resource assessment (DNV Report No.: INRP0107 21 May 2010). One important considera-tion in fixed remote sensing offshore is the influence of the platform on the winds being measured. Other technologies or models can help to further understand the resource variability across the site, put the site measurements into a long-term context and investigate specific flow phenomena.

By working with industry leaders and equipment providers, DNV can help lead the way in verifying new technology and ensuring appropriate and cost-effective instrumentation solutions for the offshore wind industry.

›› The ScanEagle unmanned aerial vehicle


HSE RISK MANAGEMENT

The exponential growth of the wind industry brings with it numerous challenges and risks. This is particularly prevalent in the offshore wind industry as projects move further offshore, into deeper

waters and more remote locations. Due to the industry being still relatively young, with only 25–30 years of mostly onshore commercial experience, and the constant developments in technology, best practices in health, safety and the environment (HSE) are essentially still work in progress.

TEXT: SHARNIE FINNERTY

To date, the wind industry is largely self-regulated, with trade bodies such as RenewableUK, the European Wind Energy Association (EWEA) and the American Wind Energy Association (AWEA). The trade bodies work alongside industry to produce a number of guidance docu-ments on various issues that are relevant to the industry. Although these documents

provide some level of guidance to the industry, a lot still needs to be done.

TAKING A RESPONSIBLE APPROACH As part of a DNV cutting-edge project, DNV consultants and engineers in the UK and Seattle have developed a hazard manage-ment guidance document. This document outlines a systematic approach that can be

taken by DNV employees to address the issue of risk management in the wind industry. The document is based on DNV’s existing tools, techniques and experience of hazard management in the onshore and offshore oil and gas industries. A life cycle approach to hazard management is applied throughout the guidance document and generic hazards are identified and discussed.

Risk management and the importance of good HSE practice

›› 3D graphical representations of potential wind industry scenarios have been developed in addition to the hazard management guidance document.

©D

NV


HSE RISK MANAGEMENT

›› Whilst the risks to public safety in almost every case are extremely low, publishing guidelines provides a credible industry benchmark of good practice and demonstrates how well the risks are being managed.

Along with this guidance document, a key output of this project was the devel-opment of a number of 3D graphical representations of potential wind industry scenarios. Most of these scenarios are rep-resentative of offshore wind operations.

ADDRESSING PUBLIC SAFETY ISSUES As well as developing its own in-house guidance, DNV has assisted Renewa-bleUK (the UK renewable energy trade association) in developing a guidance document to address the public safety issues associated with onshore wind farm developments.

Chris Streatfeild, Director of Health and Safety at RenewableUK, states: “RenewableUK were delighted to select DNV to project manage and deliver new industry guidance on public safety for three key reasons:

1. DNV’s global reputation and exper-tise in risk management;

2. Existing expertise in the renewable energy sector and the capability of the core project team;

3. Experience in managing and deliver-ing complex projects of this type.”

When asked why there is a need for such a guidance document, Mr Streatfeild replied: “The continued growth of the

UK onshore wind industry has increased the profile of wind turbines to members of the public. This increased profile has led the industry to consider the actual and perceived risks that members of the public may be exposed to. Whilst the risks to public safety in almost every case are extremely low, it was felt that publishing good practice guidelines would provide not only a credible industry benchmark of good practice but also enable other stakeholders to appreciate how public safety risks can be managed and, in most cases, demonstrate how well they are being managed.”

There are currently more than 260 oper-ational wind farms within the UK, produc-ing almost 4GW of onshore wind capacity.

Wind turbines are designed to operate to high safety standards and only a few reportable incidents relating to public safe-ty have been recorded to date. In order to maintain a high level of safety assurance, the industry needs to consistently consider public safety throughout all phases of a wind project’s life cycle.

Mr Streatfeild was also asked what the key benefits of producing such guidance documents are. He replied:

“The principle benefits are threefold: 1. Improved levels of understanding

about how public safety risks can be managed;

2. Reducing the risk of projects being challenged on erroneous safety grounds; and

3. Enhancing the wider industry reputa-tion by adopting a transparent and open approach to safety matters.”

The guidelines are intended to be relevant to all organisations that con-tribute to the life cycle of wind farms, from initial feasibility studies through to decommissioning.

Whilst the guidelines are intended to address particular public safety risks posed by large wind turbines with a swept area of >200m2 (typically turbines with maxi-mum outputs >50kW), the principles and approach outlined in this article are also compatible with small system applications.

“The guidelines are not intended to provide in-depth advice and guidance on all aspects of public safety in relation to the design, construction, commissioning, operation, maintenance and removal of wind turbines. Nor are they designed to replace existing HSE approved codes of practices and guidance, but they are an important step forward in demonstrating how public safety risks can be managed,” concludes Mr Streatfeild.

›› Chris Streatfeild, Director of Health Safety, RenewableUK


WORKFORCE TRAINING

Over the next few decades, the global expansion of wind energy generation is projected to accelerate. Both industrialised and developing countries are embracing the use of this zero emission technology in order to meet electricity demands, respond to renewable portfolio standards or other policy/market mechanisms, and combat global warming. As growth in wind energy continues, the demand for labour is increasing. According to the Global Wind Energy Council (GWEC), “over 400,000 people are now employed in [the wind] industry, and that number is

expected to be in the millions in the near future.” The number of people employed in the European wind industry is anticipat-ed to double by 2020, with half expected to be working on offshore wind projects. Growth rates in the Americas and Asia will meet or exceed Europe’s growth during this period.

NEED FOR NEW EMPLOYEES IN THE WIND INDUSTRY The lack of trained personnel is one of the industry’s most pressing challenges to meet the expected growth. The wind

industry will require more engineers, sci-entists, project managers, business people and policy makers who are well versed in the unique aspects of wind generation technology and risk management.

Up to this point in the approximately 35-year history of modern wind energy, most project work has been performed by people with prior experience in the industry, combined with on-the-job train-ing for new entrants into this emerging engineering field. College and university programmes specific to wind energy have been in existence for many years and have

Wind energy generation is expected to grow over the next few decades and accelerate its global expansion. The lack of trained personnel is one of the industry’s most

pressing challenges to meet the expected growth. This spring, DNV is launching new workforce training initiatives to fast track new employees in the wind segment.

TEXT: RUTH HEFFERNAN MARSH, NORA SVENSGAARD ROLSTAD

Industry growth demands workforce training

›› Ruth Heffernan Marsh, Project Manager, DNV

›› Nora Svensgaard Rolstad, Principal Learning Consultant, DNV


WORKFORCE TRAINING

produced many of the leaders in the wind energy business today. However, the num-ber of graduates from these programmes is very small compared to the total number of people engaged in wind-energy-related work. Expanding and adapting university programmes to include wind energy along-side the more traditional engineering and science curricula is an important step; however, this takes time and resources. Therefore, an interim measure is neces-sary to improve the wind-energy-specific knowledge of people with more traditional education backgrounds.

ACCELERATED TRAINING CAN HELP The most rapid expansion of the wind energy workforce is expected to occur within the next decade. There are signifi-cant numbers of people in other profes-sional fields who could play a role in the wind industry; but the unique and techni-cal nature of wind energy results in their previous knowledge being of limited use during their first few years in the wind energy sector. This period is often marked by on-the-job training which can be inef-ficient, error prone and frustrating. For professional service companies, project

developers and many other industry partic-ipants, reducing this initial learning period and increasing awareness of key industry knowledge could enable expansion while maintaining quality and performance standards.

Knowledge sharing within the wind industry is often oriented around annual conferences, workshops and business networking seminars. These knowledge sharing opportunities have a tendency to be too general (and short) or too ‘indus-try insider’ oriented to enable a deeper understanding of key industry knowledge.

›› DNV is focused on developing training that incorporates proven accelerated learning strategies to help students be better equipped for further training on the job.


WORKFORCE TRAINING

Therefore, DNV is focused on develop-ing training that incorporates proven accelerated learning strategies to help students better retain and use what they have learned and be better equipped for further training on the job. DNV views this focused, practical training as the fastest and most effective way to grow the wind industry workforce to meet the near-term demand.

TRAINING CLOSE TO REAL-LIFE DNV is addressing the need for workforce training in two separate programmes. First, under a contract with the U.S. Department of Energy, DNV is developing a series of ‘knowledge boosting’ technical and indus-try-specific training curricula oriented towards recent graduates of engineering or science programmes, professionals experi-enced in other industries and businesses,

governments or policy makers whose func-tions require a better understanding of wind energy’s background, technology, performance, risks and future capabili-ties. When complete, the curricula and accompanying teaching guidelines will be made available to educators seeking to provide these target groups with practi-cal short courses on topics, including a general introduction to wind energy, wind


WORKFORCE TRAINING

resource and energy assessment, wind turbine technology, feasibility studies and project economics. The courses include a combination of lecture materials as well as exercises and case studies to help augment the learning.

Second, DNV is creating an internal training programme covering all topics related to the wind project life cycle, inlud-ing both onshore and offshore perspectives.

The training will be highly interactive, with extensive use of cases and videos as well as field trips to keep it as close to real life as possible. An online community will play an important role throughout the entire train-ing programme and facilitate a living com-munity where participants can collaborate as they continue their journey into the wind energy field. Additional specialist tracks are being developed as a follow-on to the initial

training in order to support career advance-ment and continued learning.

“By developing these new training initiatives, we hope to help the industry meet the challenge of the lack of trained personnel and therefore cope with its anticipated growth,” says Ruth Heffer-nan Marsh, Project Manager, DNV. “The growth is expected to be high, hence the need for action now.”


OFFSHORE WIND TURBINE STRUCTURES

During the autumn of 2009, DNV assessed the current industry practice regarding the design of offshore monopile wind tur-bine structures, and particularly the basis for calculating the axial load capacity of large diameter grouted connections with-out shear keys. It was then found that the existing design practices did not properly describe the physical behaviour of such connections.

Based on this new insight, DNV imme-diately established a joint industry project (JIP) involving key industry players to revise and improve the basis for calculating the axial load capacity and to review cur-rent design practices. The collaboration between DNV, owners, operators, grout producers and designers has involved testing in DNV’s laboratory in addition to structural analyses, field monitoring and the sharing of experience. The group, consisting of 12 partners, has published a report on this project.

BACKGROUND A grouted connection is used to connect the transition piece to the monopile as shown in Figure 1. A transition piece is placed on top of the monopile, resting on temporary supports. During installation, the transition piece is then jacked up to the correct verticality before the grouting is carried out. After curing, the jacks are removed, leaving a gap of a few centime-tres between the temporary supports and the monopile.

Settlement down to the temporary sup-ports may result in a different force flow in the structures than that intended at the design stage. An unintended force transfer through the temporary supports has led to concern about fatigue cracking in the struc-tures which would lead to repair needs.

GROUTED CONNECTIONS The joint industry project has concluded that a cylindrical shaped design of grouted connections without additional support arrangements for axial load is not recom-mended. The main reasons for this are that the axial capacity is found to be lower than that previously assumed due to the effect of large diameters, the lack of con-trol of tolerances that contribute to the axial capacity, and the abrasive wear of the grout due to the sliding of contact surfaces when subjected to large bending moments from wind and waves.

However, where cylindrical shaped grouted connections are already used offshore and where the design is such that settlement may be expected, addi-tional support arrangements should be considered for the transfer of axial loads. Such mitigation methods for exist-ing installations have been developed and are already implemented on several structures.

GROUTED CONNECTIONS WITH SHEAR KEYS The new knowledge is also expected to

influence the design of large diameter grouted connections with shear keys. Shear keys are circumferential weld beads on the outside of the monopile and the inside of the transition piece in the grouted section. The shear keys’ purpose is to increase the sliding resistance between the grout and steel so that no settlement occurs. The existing design standards for such con-nections are based on limited test data for alternating dynamic loading. Before this solution can be recommended, design practices for shear keys should be devel-oped and properly incorporated in design standards. DNV has therefore initiated a complementary joint industry project with the aim of updating existing knowledge of design practices for grouted connections with shear keys.

CONICAL SHAPED CONNECTIONS Based on the JIP, a design practice to account for large dynamic bending on monopiles has been developed using coni-cal shaped connections. According to this, the monopile and transition piece are fabricated with a small cone angle in the grouted section, ref. Figure 2.

If the bonds between the steel and grout are broken during in-service life, some slight settlement of the transition piece will occur. This settlement will intro-duce compressive contact stresses between the steel and grout which, together with some friction, will provide sufficient resist-ance against further settlement.

DNV and key industry players have released a report on the design of offshore monopile wind turbine structures. This is the outcome of a joint industry project which was established to

improve the basis for calculating the axial load capacity and to review current design practices.

TEXT: SVEIN INGE LEIRGULEN

New design practices for offshore wind turbine structures


OFFSHORE WIND TURBINE STRUCTURES

›› Fig. 1

›› Fig. 2

JIP PARTICIPANTSAcknowledgement is made to the JIP partners for their support and contribution to this work:Ballast Nedam Engineering, BASF Construction Chemicals Denmark A/S, Centrica Renewable Energy Limited, Densit A/S, DONG Energy, DNV, GustoMSC, MT Højgaard a/s, Per Aarsleff A/S, RWE Innogy GmbH, Statoil ASA, Statkraft AS and Vattenfall Vindkraft A/S.

Updating standards The DNV-OS-J101 Design of Offshore Wind Turbine Structures standard has been partly amended throughout the JIP period and a new revision will be issued during the second quarter of 2011.A summary report of the JIP results may be requested online at DNV’s webpage www.dnv.com/windturbinestructures

Contact Technical:Claus F. Christensen by phone+45 39 45 48 58 [email protected]åkon Bertnes by phone+47 930 67 841 [email protected]:Svein Inge Leirgulen by phone +47 977 23 [email protected]


CLASS RULES FOR WIND FARM VESSELS

DNV has developed the world’s first class rules for wind farm service vessels in order to improve safety and promote uniform standards. The rules were published January 2011.

TEXT: PER WIGGO RICHARDSEN

The world’s first class rules for wind farm vessels


CLASS RULES FOR WIND FARM VESSELS

›› Vessels like this may be built according to the new class notations.

Offshore wind turbines arranged in big wind farms are becoming increasingly common worldwide as governments seek to meet their obligation to provide more renewable energy. The construction and maintenance of these wind turbines will require frequent visits by specialist tech-nicians, and high speed light craft have shown to be effective in transporting personnel.

These vessels, typically less than 24 metres in length and capable of carrying up to 12 technicians, have traditionally

been constructed to domestic standards which vary from country to country. This has created difficulties for operators seek-ing to employ their vessels in different jurisdictions across Europe.

Stakeholders within the offshore wind industry, including the flag states, have thus asked for more transparent and uni-form regulation of this segment. Some flag states have also indicated that class will become a mandatory requirement for wind farm service vessels in the near future.

“There has been strong demand for such class notations in the market,” explains Tor Svensen, President of DNV. “Representatives of the following flag states – The Netherlands, Denmark, Norway, Germany and the UK – have been con-sulted to ensure safe, uniform and useful notations, and we have managed to meet this demand within a restricted time.”

CLASS NOTATIONS: WINDFARM SERVICE 1 AND 2The new rules contain two class notations; Windfarm Service 1 for craft trading domestically and carrying up to 12 technicians, and Windfarm Service 2 for other craft carrying up to 60 persons on board.The class notation Windfarm Service 1 for domestic operations is voluntary and represents a complete technical standard. The notation includes requirements as to not only the construction, machinery, systems and watertight integrity of the craft, but also the craft’s stability and lifesaving, fire safety and navigation properties.Windfarm Service 2 applies to craft intended to carry up to 60 persons and are typically longer than 24metres in length. For these vessels the class and statutory sections in the rules may be applied separately to satisfy the requirements of the selected Flag State.


WIND TURBINE INSTALLATION UNITS

›› Henning Carlsen, Business Development Manager, DNV Offshore Classification

Henning Carlsen, Business Development Manager in DNV’s Offshore Classification unit says that the design of WTIUs often require a different approach to safety and technical issues. “Unlike traditional oil and gas units, these vessels are normally not designed for the hazards of the oil and gas industry, which take into account fire and explosion risks associated with hydrocar-bons,” he says.

Carlsen notes that since the installa-tion work is only carried out in relatively calm weather, WTIUs may be designed for weather-restricted operations under the assumption that they will escape to shelter in case of extreme weather. “The ability to escape safely then becomes a critical mat-ter to consider at the design phase,” he says. “At the same time, the broad variety of hull designs and the size of onboard cranes are unique to this segment.”

NEW STANDARD The new DNV offshore standard provides technical requirements for vessels that are purpose built for installation/mainte-nance of offshore wind turbines. The new

standard for WTIUs covers all classification requirements to the new build project and reflects the special way these vessels oper-ate. This is considered important as the market continues to see a wide range of new and novel designs which are planned to increase the effectiveness of offshore installation of wind turbines, including sin-gle and multi hulls, floating and self-elevat-ing units, some equipped with shipboard cranes or special equipment to facilitate installation.

Carlsen explains that the new offshore standard provides flexibility for designers and owners to follow principles of DNV Offshore Standards and/or DNV Rules for Ships, dependent on the vessels unique characteristics and its planned way of operation.

The service notation “Wind Turbine Installation Unit” is used for all new build projects ongoing in DNV, and was accept-ed for the A2SEA Sea Installer which had first steel cutting on 15th November 2010 at COSCO Nantong shipyard in China. The unit is scheduled to start operations in the fourth quarter of 2012.

This also applies to DNV’s most recent project in this area which is the new build WTIU being designed and built by J.J. Sietas KG Schiffswerft GmbH in Hamburg for Dutch operator Van Oord Ship Man-agement B.V.

MANAGING CRANE DESIGN Carlsen notes that shipyards also face chal-lenges related to the construction and installation of the main cranes for WTIUs. Considerably larger than cranes designed

While technically more challenging, offshore wind farms are increasingly seen as a preferred alternative to land based installations, which avoid issues related to land ownership and local opposition. In

response to a rise in new build orders for wind turbine installation units (WTIUs), DNV has developed a new Offshore Standard DNV-OS-J301 Standard for Classification of Wind Turbine Installation Units.

TEXT: ALEXANDER WARDWELL

New offshore standard for wind turbine installation units


WIND TURBINE INSTALLATION UNITS

for standard offshore vessels (around 900 tonnes instead of the usual 250-300 tonnes), WTIU cranes are the ‘workhorse’ of the unit and considerable attention must be placed to its installation and to the interaction with the ship hull and the legs of the self-elevating units.

“As designs for WTIUs become more sophisticated and larger in scale, rules must be in place to assure optimum oper-ability and efficiency,” says Carlsen. “DNV’s new WTIU standard uses relevant require-ments listed in DNV’s offshore standards or DNV Rules for Ships, depending on the vessels characteristics and operations.”

As wind turbine installation units vary according to design and operational area (e.g. shallow or deepwater), DNV’s new offshore standard offers the owner the flexibility to be innovative with future designs without impacting on the viability, safety or operations of the unit.

›› While technically more challenging, offshore wind farms are increasingly seen as a preferred alternative to land based installations.


WIND TURBINE INSTALLATION

Over the past decade, rising fuel costs and concerns about the environment have resulted in new regulations on carbon emissions and corresponding investments in renewable energy technologies. At the same time, many countries, particularly in Europe, have announced ambitious carbon reduction targets, with a focus on renewable energy – especially wind. While many wind farms will be land-based, these installations often face local opposition, encouraging many energy companies to develop offshore solutions, creating demand for installation services.

Tor Erik Andreassen, Managing Direc-tor of Fred. Olsen Windcarrier, says serv-ing this market is a natural fit for the company. “Fred. Olsen has been a pioneer in the shipping and offshore industry for many decades, so we have the experience and competence to manage complex pro-jects at sea,” he says. “At the same time, the company has been active in renewable energy since 1997, when the company installed its first wind farm in the Scottish highlands. The only thing we needed to enter the offshore wind turbine installa-tion market was the right kind of vessels.”

SELECTING THE RIGHT PARTNERS Fred. Olsen Windcarrier decided on a newbuilding programme for two purpose-built wind turbine installation units

(WTIUs), specifically designed for optimal performance and flexibility. The company turned to Gusto MSC, a leading design and engineering company specialising in all types of mobile units, vessels and cranes for the offshore industry to provide detailed engineering. While based on the GUSTOMSC 9000c designs, the vessels include a number of innovative features.

The vessels are self-propelled, self-elevating vessels that can operate in water depths up to 45 metres. The high per-formance continuous hydraulic jacking system is designed for frequent and rapid jacking, allowing for faster installation

times. The vessels are equipped with an 800 tonne capacity MSC Gusto crane which wraps around the stern port leg, allowing for greater stability and mak-ing room for a large, and accessible deck space measuring 3,200 square metres. “A lot of deck space allows us to carry more turbines and pylons, which means fewer trips to shore,” explains Andreassen. “And the high capacity crane allows for greater operational flexibility.”

HIGH MANOEUVRABILITY Two Voith Schneider propellers power the vessels; a highly manoeuvrable marine propulsion system that reach speeds of up to 12 knots and change the direction of its thrust almost instantaneously. The internal gear changes the angle of the blades in sync with the rotation of the plate, so that each blade can provide thrust in any direc-tion. Together with the three automated bow thrusters controlled by Kongsberg dynamic positioning system (DP2), the propulsion system limits rolling and allows for excellent station-keeping. “Our abil-ity to get to a site quickly and complete installations without delay is critical to our approach to this kind of installation work,” says Andreassen. “We believe this advanced propulsion system will help us meet the particular operational requirements demanded by our potential customers.”

Established in 2008, Fred. Olsen Windcarrier is a new player in the wind turbine installation market. But with two purpose-built vessels now under construction,

the company is preparing to take a bold step into this growing segment.

TEXT: ALEXANDER WARDWELL

Pioneering wind turbine installation

›› Tor Erik Andreassen, Managing Director of Fred. Olsen Windcarrier


WIND TURBINE INSTALLATION

›› When completed, the Windcarrier units will be among the largest purpose-built WTIUs on the market.

A CLASS APART To class the vessel design, Fred. Olsen Windcarrier worked with DNV. Henning Carlsen, business development manager in DNV’s Offshore Classification unit says that a different approach is required to deal with the safety and technical issues in this segment. “There are many different sizes and types of WTIUs. When complet-ed, the Windcarrier units will be among the largest purpose-built WTIUs on the market. The vessels are equipped with large cranes, which required an analysis of the interaction between the crane and the legs to ensure safe operations,” he says. “Our job was to verify the safety of these units.”

The Windcarrier newbuilds are classed by DNV in accordance with the recently introduced new standard for classification of WTIUs (DNV-OS-J301). The Windcar-rier units have the class notation +1A1 Self-Elevating Wind Turbine Installation & Crane Unit CRANE E0 DYNPOS-AUT, covering all classification requirements applicable to the new build process. For

Fred. Olsen Windcarrier, DNV’s expertise in this market segment made them an attractive partner. “Fred. Olsen has a long relationship with DNV, and their reputa-tion and competence in this area made them the logical choice,” says Andreassen. “For example, they have been helpful on a number of issues related to SPS codes.”

FINDING THE RIGHT YARD Once satisfied with the design, Fred. Olsen Windcarrier ordered two vessels from Lam-prell, one of the industry’s premier build-ers of jack ups, based in the United Arab Emirates. “We chose Lamprell because of their experience building jack-ups and their strong track record for on time deliv-eries,” he says.

M.P. Bijali, DNV’s Regional Manager (Offshore Classification) and part of DNV’s site team, says that the build project has gone well and has helped strengthen DNV’s technical competence in this seg-ment. “The Windcarrier WTIUs are a hybrid of a ship and a jack-up, so we can bring a lot of our in-house technical

expertise to the project,” he says. “Our strong relationships and good commu-nication with Lamprell and Fred. Olsen, which are both relatively new to this seg-ment, have helped the project to stay on schedule.”

A PROMISING START At present, Fred. Olsen Windcarrier has two WTIUs under construction at Lam-prell, scheduled for delivery in 2012. The company also owns a small fleet of service and crew boats, to support maintenance projects and has taken out an option on two more WTIUs. While Andreassen acknowledges that the units were built on spec, he notes that the company has already secured its first charter. “Based on increased activity in this segment, we believe we have entered the market at the right time and with the right assets,” he says. “We anticipate that potential custom-ers, which include manufacturers, contrac-tors or energy companies, will recognise the advantage of using these purpose-built WTIUs.”


EDP RENEWABLES

The fundamentals of wind power genera-tion are extremely strong, according to Gabriel Alonso, thanks to the key driv-ers for wind power: the ever increasing demand for electricity, coupled with increasing pressure to generate electricity from renewable sources. We all consume increasing amounts of electricity as we sur-round ourselves with more electric devices. Wind power can help meet that increasing demand in a world with enormous envi-ronmental and economic challenges due to the existence of limited resources.

“Developing wind energy presents many challenges, some of them being siting, transmission, capital availability, and opera-tional excellence. DNV helps Horizon Wind Energy and the rest of the industry understand how wind performs in our facilities, and why some of them are not working as projected.”

DNV provides a variety of key services to Horizon Wind Energy, including support of the original acquisition of assets, studies of wind farms, gathering and processing of data from meteorological towers, wind tur-bine selection, audits and end-of-warranty inspections. The services are critical to Horizon’s success, says Mr Alonso who has 14 years of wind energy experience in North America, Europe and North Africa and serves on the American Wind Energy Association Executive Committee and Board of Directors.

“Wind farms are fully front-loaded investments, so we need to be sure the wind blows, the wind turbines per-form, the electricity prices hold and the

operational expenses stay as we originally projected. There are activities that we do not perform ourselves and we don’t see the need to develop in-house capabilities, so we are comfortable to work with DNV,” he says. “Even more importantly, DNV helps us maintain our reputation. We must be able to forecast properly and make sure that every new investment is certain.”

Horizon, the third largest US wind-ener-gy provider, is an early-mover that operates over 3,300 megawatts of wind power gen-eration from 22 wind farms in nine states, including Oklahoma, where it built that state’s first wind farm. The company, which

has been developing wind energy projects since 1999 and working with DNV since 2000, is wholly owned by publicly held EDP Renewables, based in Spain and is the 3rd largest wind energy company in the world. The majority of EDP Renewables is owned by the EDP Group, Portugal’s larg-est industrial group and one of Europe’s major energy companies.

TODAY’S CHALLENGES Currently, demand for energy from the industrial and commercial sectors is lower than it was in 2008 and has not yet recov-ered over the past two years. The current economic recession has meant less eco-nomic activity due to less consumption of goods and services and therefore less manufacturing and commercial activity, explains Mr Alonso. “In the near term, it is difficult for a utility to justify entering into long-term contracts to acquire electricity from any source when demand for electric-ity is low. But everyone knows that long-term demand for energy will increase.”

The key question, he says, is which source of energy is going to supply the incremental demand for energy. “I think this is where wind energy is well-positioned for several reasons: first, balanced usage of existing resources to produce electric-ity and second, pricing certainty over the long run, and finally, wind energy is easy and quick to deploy. As the population increases, resources will be more and more scarce, and any human activity should be balanced within the ‘cycle of nature’. Wind energy is a positive addition within this

Gabriel Alonso, Chief Executive Officer of Horizon Wind Energy and Chief Operating Officer of EDP Renewables North America, is confident that wind power is the wave of the future, despite today’s

challenges. Of all forms of renewable energy, he sees wind power’s economics as the best investment.

TEXT: JEANNIE STELL

The wave of the future

›› “Wind farms are fully front-loaded investments, so we need to be sure the wind blows, the wind turbines perform, the electricity prices hold and the operational expenses stay as we originally projected,” says Gabriel Alonso.


EDP RENEWABLES

cycle, it does not burn or consume any other limited or scarce resource like water, gas, or wood to produce electricity. Wind energy harnesses the wind to produce elec-tricity as it passes through a wind turbine.”

Wind is the best long-term solution when compared to other sources of renew-able and conventional energy, he says. Solar-thermal facilities are more expen-sive to build than wind farms, which are modular and easily deployed. He considers photo-voltaic energy to be a good solution for distributed generation but difficult to scale up for utility applications. Geother-mal facilities require incremental drilling to keep operating and natural gas has inherent price and marginal-cost volatility, plus water usage, which is becoming an increasingly important commodity.

The current low price for gas represents another challenge impacting demand for wind power. However, Mr Alonso expects that gas prices will increase as the shale gas industry matures. In contrast, Mr Alonso believes wind farms avoid the need for continual resource extraction, marginal-cost risk and fuel-price volatility because wind is free.

“Wind energy covers 40–50% of the growth margin in energy demand,” says Mr Alonso. “It will be difficult for other sources to gain that same percentage of the growth generation that is being dis-placed by retiring coal and oil plants. Also, it is very important that, on a regulatory basis, there is a clear mandate for utilities to procure a large part of that incremental demand from renewable energy sources.”

EXPANDING HORIZONS EDP Renewables plans to expand into the Canadian market. “We have an office and a team deployed in Canada,” says Mr Alonso. “We are looking at building our portfolio there. Our strategy is to grow organically. EDP Renewables is an experienced green-field developer, and our model which has worked so well in the US will work well in Canada, where some of the provinces are providing the right schemes to support wind energy.”

Although Mr Alonso sees an oppor-tunity to expand into Mexico due to the country’s declining oil and gas production and robust wind resource, Mexico is “a long-term bet”. Meanwhile, EDP Renewables continues to be active in Spain, Portugal, France, Poland, Romania, Belgium, Italy and elsewhere. Keeping its eye on the horizon, EDP Renewables is also developing wind farms offshore in the UK.


PUGET SOUND ENERGY

Winds of change

How Puget Sound Energy changed the game for regulated utilities developing renewables in the US


PUGET SOUND ENERGY

“First there is the power of the Wind, constantly exerted over the globe.... here is an almost incalculable power at our disposal, yet how

trifling the use we make of it.”– Henry David Thoreau, 1843.

TEXT: KIM HAMILTON


PUGET SOUND ENERGY

The Pacific Northwest, with its soaring mountains, raging rivers, amber windswept hills, and evergreen forests, has long had “Ecotopia” sensibilities. Increasingly, busi-nesses are charged with walking the fine line between serving human needs and safeguarding the environment. This is par-ticularly true with regulated utilities and the electric power industry.

Enter Roger Garratt, Director of Resource Acquisition and Emerging Tech-nologies for Puget Sound Energy (PSE). When Garratt started at PSE in 2003, he was fresh from shepherding through Pacific Gas and Electric’s $730 million La Paloma project in Southern California – an 1100 MW natural gas fired combined cycle project charged with more efficient energy production.

It was there he learned the vital nature of teambuilding and enlisting the right partners. “The most important insight was that the development team has to evolve with the project, using the highest calibre people at every stage.”

Garratt’s experience at PG&E, and his degrees in both electrical engineer-ing and business, allowed him to see an opportunity to help transform the way investor-owned utilities acquire energy for their customers. In the early part of this decade, the model was to contract with third party developers, who devel-oped, then “flipped” the business. Garratt thought it made sense for PSE to get into the business of energy ownership and

operation to gain greater control, and provide energy to customers at a lower cost.

OPENING MOVE The regulatory and financial challenges might have daunted others. Regulated utilities are traditionally risk-averse organi-sations, focused on delivering low-cost electricity reliably. The naysayers were numerous, but Garratt’s team persisted. In 2005, his team petitioned the Internal Rev-enue Service to obtain a game-changing ruling: that investor-owned utilities could use Production Tax Credits for renewable energy sold to third parties. This opened the door for utilities to own large-scale wind and solar operations. Today utilities across the country have benefited from this ruling, developing 4,700 MW of wind power capacity.

Over the last seven years, Garratt’s team has acquired over 1,400 MW of new gas-fired, wind and solar photovoltaic energy generation valued at over $1.1 billion. His newest project, Phase I of the Lower Snake River Wind Project in Southeast Washington, will add another 343 MW of wind energy, nearly doubling PSE’s current wind power generation. Upon completion of Phase I, PSE will have invested roughly $2 billion in new power generation under Garratt’s tenure, and will have enough wind power in its portfolio to serve about a quarter of a million homes.

On the challenges of being an

investor-owned, regulated utility with a charge to grow, Garratt says “It’s like play-ing 3-D chess, a real intellectual challenge every day. It takes patience and endurance, and a stellar team to be successful in this rapidly changing game.” Garratt contin-ues, “As a regulated utility in Washington we are required to have an Integrated Resource Plan, driven by the least-cost criteria.” Cost includes risk and environ-mental impact, which can bring the cost of renewables more in line with traditional Northwest power sources, such as coal-fired and hydroelectric.

ANTICIPATING THE PLAY In 2006, Washington State voters passed a law requiring utilities to produce 15% of their power from renewable sources by 2020 in graduated stages. “We established the viability of renewables long before the state mandate,” Garratt notes. “And cur-rently wind energy is the most cost-compet-itive renewable resource. When we bring Lower Snake River online in 2012 we will have exceeded the state requirements for the first two stages of the process.”

Sometimes being a regulated utility in a wildly fluctuating energy market can be volatile. Garratt says, “A few years ago when wind was red-hot, the prices of devel-opment soared, which was a real challenge for us.” But Garratt launched another innovation. “As the market became hot-ter, we changed our business strategy for acquiring renewables. We simply moved

›› “It’s like playing 3-D chess, a real intellectual challenge every day. It takes patience and endurance, and a stellar team to be successful in this rapidly changing game.” – Roger Garratt, Director of Resource Acquisition and Emerging Technologies


›› xx

PUGET SOUND ENERGY

further up the development chain, taking on the siting and permitting, the wind resource assessment, and the preliminary engineering, which had all previously been handled by private developers.”

RAISING THE STAKES The analysts and engineers at DNV have consulted with PSE on all three of their wind development projects – whose names read like a road trip through Eastern Washington: Wild Horse, Hopkins Ridge and Lower Snake River. As the independ-ent technical experts, DNV’s reports on resource management and wind energy assessments are trusted by state regulators and critical to the permit and review pro-cess. DNV also helps vet possible expan-sions, and renders expert opinions on turbine models.

“With wind turbines costing a couple of million dollars apiece you have to be able to trust the data in a competitive review,” says Garratt. “We rely on DNV to help us evaluate equipment and develop an accu-rate, realistic picture of a project.”

Is Garratt bullish on wind for the future? “We do see wind increasing its share in the portfolio, particularly with Lower Snake River coming on line.” Already the nation’s second-largest util-ity producer of wind power, PSE has 430 MW of generating capacity. Lower Snake River will significantly enhance this posi-tion, powering up another 100,000 homes with renewable energy. This dramatic increase is not without its challenges. Gar-ratt notes, “To deliver power from Lower Snake River to customers in Puget Sound, a distance of some 300 miles, will involve

PSE cooperating with other regional utili-ties for integrating new power sources onto the grid and transporting that power.”

Kevin Smith, at DNV’s Seattle office, adds, “The Pacific Northwest lacks a regional transmission organiser. That means each utility has to manage their own systems for forecasting, tracking, scheduling, and transferring power, as well as establishing regulatory protocols. All of this will have to be enhanced and coor-dinated to enable full-scale build out of Lower Snake River.”

If Garratt’s chess metaphor is apt, then tackling the Lower Snake River project is like playing in the finals of the World Chess Cup while paddling down a North-west river in a canoe. It’s likely that Garratt will relish the challenge.


DNV ACQUIRES BEW

DNV first moved into the clean and renew-able energy sector in the late 1970’s when the first wind turbines were installed in Denmark. Since then, DNV has continu-ously expanded its renewable energy ser-vices for the wind energy, carbon capture and storage and wave and tidal energy sectors. This growth was achieved both organically and through acquisitions.

As DNV became more deeply involved in the renewable energy markets and increased the range of its services, the question of how and where to grow in the renewable energy sector became a major strategic decision. One intriguing acquisi-tion candidate was Benke, Erdman and Whitaker Engineering, Inc. (BEW) in San Ramon, California, which DNV acquired in October 2010.

BEW’s founders, Michael Behnke, William Erdman and Charles Whitaker, three seasoned energy professionals with experience in US wind power companies, photovoltaic companies and transmission planning for an electrical utility company, formed BEW in 2002 to provide consulting services to the renewable energy market, with particular focus on solar power, wind energy, power transmission and grid inte-gration. In addition to consulting services, BEW built a laboratory for large prototype testing of power distribution panels for offshore wind farms and inverters and racking systems for photovoltaic, or solar,

power. Today, up to 20% of the labora-tory’s work is helping photovoltaic inverter customers meet Underwriters Laboratory (UL) standard 1741.

COMPLEMENTARY SERVICES BEW’s main customers: utilities, banks, wind and solar developers, equipment manufacturers and engineering companies are similar to DNV’s customer’s, however, BEW’s services are almost completely complementary to DNV’s existing services. While DNV has specialised knowledge on wind turbines and structures, BEW’s experts focus more on the electrical design of wind turbines. Similarly, while DNV is well-known in wind and wave energy, BEW is equally regarded for its knowledge of solar power. Furthermore, BEW has particular strengths in power transmis-sion and grid integration, which are key elements for a full portfolio of services for the renewable energy industry. Even DNV’s technology qualification services, which help to prove new technologies, are complemented by BEW’s services to more specifically assist owners to select technologies.

DNV and BEW may operate in different markets with different services, but each are culturally similar with deep roots in technical excellence, long term decision making and appreciation for the impor-tance of people resources and knowledge.

In describing the acquisition, Bill Erdman, President of BEW, Inc (a DNV Company) shared his views:

“BEW had grown from the three found-ers to 35 employees, but we reached the stage where we needed a stronger plat-form, including both a global infrastruc-ture and additional services to continue to serve our, now DNV’s, customers. We got our wish. Our office in San Ramon will be DNV’s Global Center of Excellence for photovoltaic technology and services as well as services for power transmission and grid integration. It is a bit daunting to want to be on the global stage one day and find yourself there the next day, but I really am optimistic about our combined ability to offer a holistic set of services for the renewable energy sector.”

Mr Erdman’s confidence in a smooth integration is well-founded as he contin-ues, “Before the acquisition, BEW and DNV had worked together on some pro-jects for mutual wind energy customers. We saw first hand the benefits that our complementary expertise and capabilities can provide our customers.”

TREMENDOUS GROWTH POTENTIAL On the future of renewable energy in general, Mr Erdman points out that wind and photovoltaic power are two different technologies. He says that wind is ahead of solar power, but that is because wind

DNV has acquired Benke, Erdman and Whitaker Engineering, Inc. (BEW) in California; a consulting company with a particular focus on solar power, wind energy, power transmission and grid integration.

TEXT: BLAINE COLLINS

What a match!


DNV ACQUIRES BEW

power is not easily distributed, photovol-taic power may quickly catch up. He notes that even though the low-hanging fruit for wind turbine and photovoltaic sites has already been picked, that more transmis-sion capacity is a real limiting factor and he equally welcomes the challenges and opportunities.

And how fast can renewable energy grow?

“Just consider that many states have renewable energy standards that require about 20% of the power consumed to come from renewable energy sources by 2020 or 2030. Today, wind power provides slightly more than 1% of the electrical generating capacity with 35 GW installed in the US. So, I see tremendous growth potential,” Mr Erdman responds.

We agree and welcome BEW, Inc. (a DNV company) to DNV.

›› “It is a bit daunting to want to be on the global stage one day and find yourself there the next day, but I really am optimistic about our combined ability to offer a holistic set of services for the renewable energy sector,” says Bill Erdman, President of BEW, Inc (a DNV Company).

COMPANY: BEW INC.Founders: Michael Behnke, William Erdman and Charles Whitaker No of employees: 35Based in: San Roman, California, USAServices: Consulting and laboratory services to the renewable energy market, with particular focus on solar power, wind energy, power transmission and grid integrationCustomers: Utilities, banks, wind and solar developers, equipment manufacturers and engineering companies

Globalpresence

DNV is a global provider of services for managing risk, helping customers to safely and responsibly improve their business performance. DNV is an independent foundation with presence in more than 100 countries.

Wind energy offices in:

Brazil • Canada • China • Denmark • Germany • India

• Korea • Norway • Singapore • UK • USA

Documents

Wind Energy Update No. 2 2011