The Developers Challenge Workshop - Regensw
The Developers Challenge Workshop The Bristol Supply Chain Event 9th March 2010
Department 07/01/09
PAGE 1
Round 3: Challenges and Opportunities R3 represents significant opportunity for the UK in terms of wealth creation via a new industry and jobs Estimated it will cost >£100 billion to deliver the UK EU target Key challenges/barriers that need to be overcome for R3 to be realised: Economic viability Supply chain capability Grid capacity and infrastructure Skills availability 09
PAGE 2
Economic viability Offshore wind projects to date have struggled with economic viability –
50 45
B eat r i ce Fi el d San dban k 2 4
Commodity prices Technology costs Supply limitations Energy prices R3 zones larger, further from shore and in deeper waters than before.
W ater D ep th [m ]
B ar d Of f shor e 1
40 35
Albat r os
Gl obal T ech 1 Hochseewin dpar k De Dr eiht Hochsee Win dpar k Nor dsee Dan - T ysk
T hor nt on Ba nk
30 25 20
Gode Win d
Côt e d'A l bâtr e
I nnogy N or dsee 1
UK Round 3 East coast
A l pha V ent us
B el wi nd Gr e at er Gabbar d N or dsee Ost T hanet P r i ncess A mal i aAmr (Q7) um Ban k West Sher i ngham Shoal
B ar r ow
15 10
Samso
But en diek
E gmond aan Zee B al ti c 1 London Ar r ay
Gwy nt y M ôr Li ncs Hor ns Rev 2 Rhyl Fl at N s or t h Hoyl e
Lyn n & Hor n s Rev Ligl r un d I n n er Dowsin g Nyst ed Nor der gr ünde Gun f el et San dsRobin Rigg Rø dsan d I I Ken t si h Flat s Bur bo Ban k Scr oby San Ar ds klow Ban k
5 0 0
201030 10 < 20
< 2015 2010-2015 40
50
60
70
80
90
100
Shore Distance [km ]
09
PAGE 3
Economic viability To overcome the economic (as well as construction and operational) challenges is going to require developments in technology Foundations key example of area requiring development Typically constitutes approx 20% of total costs of energy Monopiles not suitable for most R3 zone water depths Other areas requiring development include installation methods, turbine reliability and O&M strategies Represents an opportunity for UK building on experience from offshore oil and gas industry 09
PAGE 4
Supply Chain Capability Supply chain constrained in a number of areas: Turbines Electrical cables Installation vessels UK competing with EU offshore market and global onshore market – larger market with lower risk. Represents a barrier to Round 3 in increased costs and programme risks
09
PAGE 5
Supply Chain Capability Current UK supply chain limited – i.e. no turbine manufactures with facilities in the UK The UK via R3 however represents the largest offshore wind market in world! Ability to attract tier 1 suppliers would reduce costs and enable the UK to make the most of potential wealth creation TCE Supply Chain events first step in educating tier 2 and 3 suppliers about services required. Local suppliers – advantages of close to site & local knowledge
09
PAGE 6
Grid and Infrastructure Securing a grid connection a key step for a project Provision of timely grid connection a concern New offshore transmission regime – brings uncertainty as new process Ports Few suitable construction ports currently available Early investment required. Own planning and consenting timescale Potential benefits for region in which port located Ports gateway to benefits for 2nd and 3rd tier suppliers
09
PAGE 7
Skills Availability Skills availability is another area that is constrained Renewables UK (2008) reported that 5,000 employed in the UK wind industry – forecast that 50,000 will be employed by 2020. The need for ‘Good people’ recognised as key element to successful delivery of R3 Renewables UK – Renewable Energy Apprenticeship programme – technical staff Further initiatives required for other work areas – HSE and environmental specialists, project managers etc 09
PAGE 8
Questions? www.npowerrenewables.com/gwynty mor 09
© Dan Towers 2004
PAGE 9
Department 07/01/09
PAGE 1
Round 3: Challenges and Opportunities R3 represents significant opportunity for the UK in terms of wealth creation via a new industry and jobs Estimated it will cost >£100 billion to deliver the UK EU target Key challenges/barriers that need to be overcome for R3 to be realised: Economic viability Supply chain capability Grid capacity and infrastructure Skills availability 09
PAGE 2
Economic viability Offshore wind projects to date have struggled with economic viability –
50 45
B eat r i ce Fi el d San dban k 2 4
Commodity prices Technology costs Supply limitations Energy prices R3 zones larger, further from shore and in deeper waters than before.
W ater D ep th [m ]
B ar d Of f shor e 1
40 35
Albat r os
Gl obal T ech 1 Hochseewin dpar k De Dr eiht Hochsee Win dpar k Nor dsee Dan - T ysk
T hor nt on Ba nk
30 25 20
Gode Win d
Côt e d'A l bâtr e
I nnogy N or dsee 1
UK Round 3 East coast
A l pha V ent us
B el wi nd Gr e at er Gabbar d N or dsee Ost T hanet P r i ncess A mal i aAmr (Q7) um Ban k West Sher i ngham Shoal
B ar r ow
15 10
Samso
But en diek
E gmond aan Zee B al ti c 1 London Ar r ay
Gwy nt y M ôr Li ncs Hor ns Rev 2 Rhyl Fl at N s or t h Hoyl e
Lyn n & Hor n s Rev Ligl r un d I n n er Dowsin g Nyst ed Nor der gr ünde Gun f el et San dsRobin Rigg Rø dsan d I I Ken t si h Flat s Bur bo Ban k Scr oby San Ar ds klow Ban k
5 0 0
201030 10 < 20
< 2015 2010-2015 40
50
60
70
80
90
100
Shore Distance [km ]
09
PAGE 3
Economic viability To overcome the economic (as well as construction and operational) challenges is going to require developments in technology Foundations key example of area requiring development Typically constitutes approx 20% of total costs of energy Monopiles not suitable for most R3 zone water depths Other areas requiring development include installation methods, turbine reliability and O&M strategies Represents an opportunity for UK building on experience from offshore oil and gas industry 09
PAGE 4
Supply Chain Capability Supply chain constrained in a number of areas: Turbines Electrical cables Installation vessels UK competing with EU offshore market and global onshore market – larger market with lower risk. Represents a barrier to Round 3 in increased costs and programme risks
09
PAGE 5
Supply Chain Capability Current UK supply chain limited – i.e. no turbine manufactures with facilities in the UK The UK via R3 however represents the largest offshore wind market in world! Ability to attract tier 1 suppliers would reduce costs and enable the UK to make the most of potential wealth creation TCE Supply Chain events first step in educating tier 2 and 3 suppliers about services required. Local suppliers – advantages of close to site & local knowledge
09
PAGE 6
Grid and Infrastructure Securing a grid connection a key step for a project Provision of timely grid connection a concern New offshore transmission regime – brings uncertainty as new process Ports Few suitable construction ports currently available Early investment required. Own planning and consenting timescale Potential benefits for region in which port located Ports gateway to benefits for 2nd and 3rd tier suppliers
09
PAGE 7
Skills Availability Skills availability is another area that is constrained Renewables UK (2008) reported that 5,000 employed in the UK wind industry – forecast that 50,000 will be employed by 2020. The need for ‘Good people’ recognised as key element to successful delivery of R3 Renewables UK – Renewable Energy Apprenticeship programme – technical staff Further initiatives required for other work areas – HSE and environmental specialists, project managers etc 09
PAGE 8
Questions? www.npowerrenewables.com/gwynty mor 09
© Dan Towers 2004
PAGE 9
