Offshore Wind In the UK - Regensw
Offshore Wind In the UK Supply Chain Perspectives with a SW Focus
Bruce Valpy Head of Business Development ‘V’ of BVG Associates
Agenda
• • • • • • •
DECC’s UK Renewables Service UK and EU offshore wind market What’s in an offshore wind farm Supply chain structure Supply chain gaps South West focus Government commitment
2
DECC’s UK Renewables Service
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”
4
DECC’s UK Renewables Service
• • •
• •
Inform, coach, support and champion UK businesses Focus on excellence Respond to requests : – Wind industry – Market entrants – UK enabling bodies Host UK stands at global events Proactively create opportunities for UK: – Supply & innovation – Inward investment & joint ventures
5
BVG Associates
6
Contracting an offshore wind farm
Offshore transmission operator
Developer
Project management
Project management
Construction management
Construction management
Electrical design, manufacture,
Cable manufacture
installation
installation
Development studies
Turbine design and manufacture
Turbine installation
Foundations design, manufacture,
Operation and maintenance
installation
7
Offshore wind farm time line
For early Round 3 projects, year -5 = 2010
8
Conventional offshore wind farm construction strategy
Vessel
Turbine foundation Year -1 Substation foundation
Vessel
Cables
Vessel
Substation structure Offshore electrical
Substation
Vessel
Wind farm
Onshore electrical
Year 0
Castings
Tower
Gearbox
Nacelle
Other
Blades
Vessel
Float-out and sink technologies are being developed 9
Offshore wind farm spend
10
Offshore wind farm spend profile
1,400
1,200
1,000
£m
800
600
400
200
0 -5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Development & Consent
Tower
Blades
Other Turbine
Cables
Foundations
Electrical
Construction Ports
Turbine/Foundation Installation
Cable Installation
O&M
19
20
1 GW wind farm £2.5m/MW CAPEX £0.8m/MW OPEX
11
Supply chain – gap analysis
Purpose: • Inform The Crown Estate and others about supply chain status • Unpack key issues - suggest actions • Make a difference to Round 3 delivery
Published: May 09 Report available via: www.thecrownestate.co.uk 12
Supply chain – gap analysis: approach
Industry Level: • Economic viability • Government policy • Infrastructure provision • Supply chain capability • Health and Safety • Skills availability
Wind Farm Level: Development & Consenting
Operation & Maintenance
Turbine Manufacture Offshore wind farm
Installation & Commissioning
Balance of Plant Manufacture
13
Supply chain – gap analysis: market
22-25GW by 2020 •
Sufficient: • to meet UK targets • to stimulate industrialisation • to create sustainable business – investment and competition • Fits: • With EU picture to 2030 • And 2050 (150GW) • Believable: confidence Sustained well beyond 2020
14
Supply chain – gap analysis: conclusions
• • •
There are constraints Supply Chain ‘can do’ Seen good progress since May ‘09
• •
Confident supply chain is key Investment delivers GW & cost improvement
“The biggest bottleneck for Round 3 is ideas – we need to come up with cheaper ways to do things.” FARM ENERGY 15
South West focus
Customer need + supply excellence = chance of supply success Possibility of supply to: • Projects local to SW • All other projects (including outside UK)
16
Bold statements
1. SW will have local offshore wind farms by 2020 •
There will be much development and consenting activity - some underway
2. SW is not going to be assembly location for a wind turbine manufacturer •
Hence need global excellence to supply to turbine manufacturer
3. Wind farms may be constructed from a local port • •
In Bristol Channel, could be on Welsh or English coast or ... For West of Wight, could be UK or ...
4. O&M Base will be very local to wind farms •
Could be on Welsh or English coast; not France 17
Best opportunities
• • • • • • • •
Environmental services and support Tower and foundation manufacture Offshore substation assembly Onshore substation assembly Project construction base Installation and commissioning support O&M and logistics support Project management / engineering and other professional services
25% 25%
Development & Consenting
Operation & Maintenance
2% Turbine Manufacture
Offshore wind farm
10%
10% Installation & Commissioning
Balance of Plant Manufacture
•
Significant success for SW = 10% of value of Bristol Channel + West of Wight zones = 10% of £8bn = £800m
• • •
Construction could mean 400-800 jobs in SW (2015-2020) Operation could mean 250-500 jobs in SW (2015-) Need good look at strengths, weaknesses, opportunities, threats for SW + close contact with customers & targeted SW suppliers
18
Government commitment: innovation
•
• •
•
DECC – National Wind Turbine Test Centre (£18.5m) – Environmental Transformation Fund (£30m) – Blade Test Rig (£15m) – Mitsubishi turbine development (£30m) The Carbon Trust – Offshore Wind Accelerator (£50m+) Energy Technologies Institute – 3-4 wind turbine designs (£10m phase 1) – Condition monitoring (£5m) – Drive train test rig (£30m with ONE) The Crown Estate – Supporting demonstration of new technology
19
Government commitment: supply chain
• • •
• • • •
Strong, stable market - #1 in world Smooth supply chain growth Focus on attracting wind turbine manufacturers - shared infrastructure Help develop strategic supply Openness to help customers and new suppliers reach agreement Knowledge support via DECC’s UK Renewables Service Preserve competitive, not protective market
20
Thank you
Bruce Valpy [email protected] +44 (0)1793752308 c/o BVG Associates Ltd The Blackthorn Centre Purton Road Swindon SN6 6HY (The South West)
21
Bruce Valpy Head of Business Development ‘V’ of BVG Associates
Agenda
• • • • • • •
DECC’s UK Renewables Service UK and EU offshore wind market What’s in an offshore wind farm Supply chain structure Supply chain gaps South West focus Government commitment
2
DECC’s UK Renewables Service
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”
4
DECC’s UK Renewables Service
• • •
• •
Inform, coach, support and champion UK businesses Focus on excellence Respond to requests : – Wind industry – Market entrants – UK enabling bodies Host UK stands at global events Proactively create opportunities for UK: – Supply & innovation – Inward investment & joint ventures
5
BVG Associates
6
Contracting an offshore wind farm
Offshore transmission operator
Developer
Project management
Project management
Construction management
Construction management
Electrical design, manufacture,
Cable manufacture
installation
installation
Development studies
Turbine design and manufacture
Turbine installation
Foundations design, manufacture,
Operation and maintenance
installation
7
Offshore wind farm time line
For early Round 3 projects, year -5 = 2010
8
Conventional offshore wind farm construction strategy
Vessel
Turbine foundation Year -1 Substation foundation
Vessel
Cables
Vessel
Substation structure Offshore electrical
Substation
Vessel
Wind farm
Onshore electrical
Year 0
Castings
Tower
Gearbox
Nacelle
Other
Blades
Vessel
Float-out and sink technologies are being developed 9
Offshore wind farm spend
10
Offshore wind farm spend profile
1,400
1,200
1,000
£m
800
600
400
200
0 -5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Development & Consent
Tower
Blades
Other Turbine
Cables
Foundations
Electrical
Construction Ports
Turbine/Foundation Installation
Cable Installation
O&M
19
20
1 GW wind farm £2.5m/MW CAPEX £0.8m/MW OPEX
11
Supply chain – gap analysis
Purpose: • Inform The Crown Estate and others about supply chain status • Unpack key issues - suggest actions • Make a difference to Round 3 delivery
Published: May 09 Report available via: www.thecrownestate.co.uk 12
Supply chain – gap analysis: approach
Industry Level: • Economic viability • Government policy • Infrastructure provision • Supply chain capability • Health and Safety • Skills availability
Wind Farm Level: Development & Consenting
Operation & Maintenance
Turbine Manufacture Offshore wind farm
Installation & Commissioning
Balance of Plant Manufacture
13
Supply chain – gap analysis: market
22-25GW by 2020 •
Sufficient: • to meet UK targets • to stimulate industrialisation • to create sustainable business – investment and competition • Fits: • With EU picture to 2030 • And 2050 (150GW) • Believable: confidence Sustained well beyond 2020
14
Supply chain – gap analysis: conclusions
• • •
There are constraints Supply Chain ‘can do’ Seen good progress since May ‘09
• •
Confident supply chain is key Investment delivers GW & cost improvement
“The biggest bottleneck for Round 3 is ideas – we need to come up with cheaper ways to do things.” FARM ENERGY 15
South West focus
Customer need + supply excellence = chance of supply success Possibility of supply to: • Projects local to SW • All other projects (including outside UK)
16
Bold statements
1. SW will have local offshore wind farms by 2020 •
There will be much development and consenting activity - some underway
2. SW is not going to be assembly location for a wind turbine manufacturer •
Hence need global excellence to supply to turbine manufacturer
3. Wind farms may be constructed from a local port • •
In Bristol Channel, could be on Welsh or English coast or ... For West of Wight, could be UK or ...
4. O&M Base will be very local to wind farms •
Could be on Welsh or English coast; not France 17
Best opportunities
• • • • • • • •
Environmental services and support Tower and foundation manufacture Offshore substation assembly Onshore substation assembly Project construction base Installation and commissioning support O&M and logistics support Project management / engineering and other professional services
25% 25%
Development & Consenting
Operation & Maintenance
2% Turbine Manufacture
Offshore wind farm
10%
10% Installation & Commissioning
Balance of Plant Manufacture
•
Significant success for SW = 10% of value of Bristol Channel + West of Wight zones = 10% of £8bn = £800m
• • •
Construction could mean 400-800 jobs in SW (2015-2020) Operation could mean 250-500 jobs in SW (2015-) Need good look at strengths, weaknesses, opportunities, threats for SW + close contact with customers & targeted SW suppliers
18
Government commitment: innovation
•
• •
•
DECC – National Wind Turbine Test Centre (£18.5m) – Environmental Transformation Fund (£30m) – Blade Test Rig (£15m) – Mitsubishi turbine development (£30m) The Carbon Trust – Offshore Wind Accelerator (£50m+) Energy Technologies Institute – 3-4 wind turbine designs (£10m phase 1) – Condition monitoring (£5m) – Drive train test rig (£30m with ONE) The Crown Estate – Supporting demonstration of new technology
19
Government commitment: supply chain
• • •
• • • •
Strong, stable market - #1 in world Smooth supply chain growth Focus on attracting wind turbine manufacturers - shared infrastructure Help develop strategic supply Openness to help customers and new suppliers reach agreement Knowledge support via DECC’s UK Renewables Service Preserve competitive, not protective market
20
Thank you
Bruce Valpy [email protected] +44 (0)1793752308 c/o BVG Associates Ltd The Blackthorn Centre Purton Road Swindon SN6 6HY (The South West)
21
