Renewable Futures conference Bath (TCE 2012-11) handout - Regensw

Development of low-carbon offshore energy

Huub den Rooijen The Crown Estate Head of offshore wind 21 November 2012 Renewable Futures, Bath

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The need for new generation Reducing capacity margin in the UK underlines the need for new generation.

Source: Electricity Capacity Assessment (Ofgem 2012) 2

The Crown Estate, Energy & Infrastructure Business sectors CO2 transportation and storage

wave and tidal

aquaculture

gas storage

aggregates cables and pipelines

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4

Aquaculture

• Marine biomass for energy crops is being investigated. 5

Marine aggregates • Marine aggregates are mixtures of sand and gravel used in construction • Used across the construction industry and for coastal defence • Extraction of about 20 million tonnes pa concentrated offshore in of England and Wales • 20 per cent of the sand and gravel used in England and Wales is supplied by the marine aggregates industry

Offshore wind – in operation

*

Asset base ca £12 billion * Offshore Turbines

Offshore Substations

Onshore Substations

Export Cables

Offshore Masts

706

10

17

33

15

Operating

525

7

5

14

1

In construction

1231

17

22

47

16

Total *photo courtesy of Centrica

In planning and pre-planning

Northern Ireland (600MW pre-planning)

Source: The Crown Estate offshore wind report (April 2012) 8

Continuing growth in offshore wind

Annual UK offshore wind electricity (MWh) 2012 estimate: 1.7% of consumption 2013 estimate: >3% of consumption

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UK offshore wind pipeline 50

GW

9.8

45 40

26.1

35 30 25 20 15 4.6

10 2.3

5

1.5 2.7

0 Operational

In Construction

Consented / In Financing

In Planning

Secured grid connection pre2020

Other (preplanning)

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Wave and tidal projects

• Wave and tidal demonstration sites Pentland Firth, Shetland Island, Orkney, Scottish West Coast waters (20+ projects) • Saltire prize • Other tidal projects including MCT at Strangford Lough, Ramsey Sound in Wales and on the Humber in England

Wave and tidal projects

• SW Marine Energy Park – opportunity for more • Industry engagement exercise responses being reviewed • Tidal range: Bristol channel significant resource, developer interest – currently an Inquiry

How do we work? • Pro-active landlord • • • •

Leasing seabed to developers Organise “leasing rounds” Co-invest in development studies Partnerships with developers

• Facilitator • Strategic workstreams • Addressing sector-wide issues • “accelerate and de-risk”

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Strategic workstreams Rapid sector growth, further from shore

addressing sector-wide challenges Competing markets, capacity, delivering infrastructure investment and OEMs, leadership on skills Supply Chain & Skills

Huge capital needs Global economy Lack of lenders Construction risk

Project Economics & Financing

Health & Safety

Planning & Consenting

New legislation, Many applications, Lack of data Environmental effects

Cost of Energy

Grid & Technology

Coordinated grids, OFTO regime, charging, technical standardisation

Closing thoughts • Marine low-carbon energy offers real opportunities for energy and economy. • TCE is keen to develop the potential of the seabed for the benefit of the nation. • Government energy policy is the key that can unlock this potential – and business needs to lead the way. • Pro-active working with key stakeholders is essential to align agendas in early phase. • What’s the alternative?

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