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Offshore Wind Industry UpdateFalmouth 18th March 2011

Johnny Gowdy Ben GowersRegen SW BG Renewables

Offshore Wind Update

Industry outlook

Challenges and risks

Offshore wind in the South West• Atlantic array • Eneco wind farm

Supply Chain opportunities

Rounds 1 & 2– 1.3 GW operational– 7.6 GW in development– 1.5 GW extensions

Scottish Territorial Waters– 5.3 GW in pre-development

Round 3– 32 GW in development

Total: 48 GW

UK Offshore Wind Outlook

3Source – TCE: Supply Chain conference 2011

UK Offshore Wind Market

Source – TCE : Supply Chain conference 20114

Massive Growth

The Next Decade

Over 46 GW of leases

Target 20-30 GW by 2020?

¼ of UK electricity

70,000 Jobs* by 2020

Cost £75-100bn

Over 7000 Turbines

*assumes massive expansion of manufacturing in the UK

Massive ScaleTurbines Foundations Installation Vessels

Industry ChallengesMaking it happen....

Health and SafetySkills and peopleIndustrialisation

ManufacturingComponents supplyReliabilitySteel/Concrete - prices

PhysicalDistance offshore/Water depthWeather windowSize and weight of new turbines and foundations

ConstructionLogistics/Installation vesselsPorts and Infrastructure

Grid – Offshore transmissionCables – Major construction risk

Managing risk...Cost Reduction

Currently £3.1m per MW and risingEconomies of scaleInnovationSupply chain collaborationBottlenecks

FinanceMarkets / investors

Market uncertaintyElectricity market reformROCS v FIT

Consenting and planning

Plus all the commercial risk of large scale offshore projects

Offshore Wind Comes to the South West

Atlantic Array Update

Atlantic Array Update

Current focus

•Scoping report for IPC•Offshore survey work – birds and mammals, 2 years data•Geotech and geophysical surveys•Port evaluation•Onshore design and cable routes

Future focus

•Complete sub-sea surveys•Engineering design•Construction methosology•Port selection for construction•Met Mast installation•Complete EIA•Stakeholder consultation

Development phase budget circa £40m

Eneco Wind Farm Update

Eneco Wind Park – Dorset

•Target capacity of 900 – 1200 MW

• Capital Costs £ 2.5- 3 billion

•Consent by 2014

•Main Construction~ 2016-

•Long Term O&M jobs: 50-100

Project Development Activities2011 - 2013

• Offshore surveys:

– Engineering (geophys and geotech)– Human (eg Fishing, navigation)– Environmental (birds, benthos…)

• Met Mast Installation

• Onshore surveys

• EIA

•Consultations withstatutory consultees and other stakeholders

• Ports Assessment

• Engineering Design studies

Eneco Wind Park - West Isle of WightZone Appraisal and Planning (ZAP)

• 13 - 28 km from Dorset & Isle of Wight coasts

• Total Zone 280 sq miles zone – Development area 76 sq miles

• Capacity of > 900 MW – 1200MW (615,000 - 820,000 homes)

• Grid connection options into Chickerell (in Weymouth), Mannington (near Ringwood)

and Fawley (near the oil refinery).

Supply Chain Opportunities

15

• Consultants (FEED, certification)

• Ports (Construction / Operations & Maintenance)

• Foundations (design, supply, fabricate & install)

• Turbines (supply, install)

• Design and civil works for onshore infrastructure

• Cables (supply, install)

• Vessels (installation, support)

• Support services (project management, diving, marine

services, logistics)

• Training / Education / personnel

• Secondary services and components – paints, fuel lubes,

bespoke fabrications, professional services

• Local services, accommodation, provisioning etc

• Operations & Maintenance activities / support

Supply chain opportunities

Getting into the supply chain

www.enecowindoffshore.co.uk/Suppliers Marketing

Prequalification

Tendering

Contracting

www.atlanticarraysupplychain.co.uk

Ports Gateway for Offshore Renewables

• Construction & installation (Project cargo)

• Logistics

• Manufacturing and Assembly

South West Ports and Facilities

Hayle

ParPlymouth

Falmouth

Portland

Poole

Bristol

Appledore/ Ilfracombe

People - Skills and Training

Design/Consultant Engineers

Power Engineers

Electrical and Mechanical Engineers

O&M Technicians

Environmental

Health and Safety

Project/Construction Managers

Marine and subsea Operations

Offshore qualifications

Manufacturing – fabrication, composites, hydraulics

The Offshore renewable sector will require thousands of qualified technicians, engineers, environmental scientists, offshore and sub-sea workers.

Thank YOU

Ben Gowersben@bgrenewables.com

Johnny Gowdyjgowdy@regensw.co.uk