ERFARINGER MED VINDKRAFT OG VEIEN VIDERE FOR OFFSHORE VIND

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1 ERFARINGER MED VINDKRAFT OG VEIEN VIDERE FOR OFFSHORE VIND Eivind Torblaa, Head of Asset Management - Wind Det Norske Videnskaps-Akademi 3 oktober 2014

2 Agenda Litt om Statkraft Vind i Statkraft - Tilbakeblikk - Hva skjer for øyeblikket - Hva gjør vi fremover med fokus på offshore vind 2

3 European leader within renewable energy Environment-friendly power generation: 56 TWh - *Norway: 81% - *Other Nordic countries: 10% - Other European countries: 4% - Rest of the world: 5% Gross operating revenues 2013: NOK mill 3,600 employees in more than 20 countries Main power supplier to Norwegian industry 100% owned by the Norwegian state 3 * Including district heating

4 Statkraft s production * Installed capacity MW Power production 56 TWh 97% renewable energy employees UK 273 MW Germany MW Norway MW Sweden MW Nepal 23 MW Panama (project) Peru 163 MW (+ project) Albania (project) Turkey 20 MW (+ projects) India 91 MW Laos 100 MW Philippines 149 MW STATKRAFT Chile 94 MW Brazil 86 MW Zambia 6 MW SN POWER/ AGUA IMARA * 2013 figures. Includes: - Statkraft/SN Power s share of installed capacity

5 Strategic directions European Flexible Generation Market Operations International Hydropower Wind Power District Heating

6 MW Global development of wind power More than 300 GW of wind power installed globally. The annual growth in wind power in Europe the last years has been between GW Global wind power % +21% +22% Europa USA Kina Resten av verden 6 Kilde: IHS Emerging Energy Research

7 Make Consulting s forecast of global onshore wind deployment 7

8 8 Make Consulting s forecast of global offshore wind deployment

9 The wind power markets Onshore windpower 2013 [Σ= 297GW] Offshore windpower 2013 [Σ= 7.7GW] China United States Germany Spain United Kingdom Denmark Germany China India Belgium Italy France Canada United Kingdom Portugal Netherlands Sweden Japan Finland Ireland Sweden Norway Other Portugal 9 Kilde: IHS Emerging Energy Research

10 MW Wind Power in The European energy-mix Construction of new wind power in Europe Production of electricty in Europe % 6 % 4 % % 25 % 47 % Thermal * Nuclear Hydro ** Wind *** Bio Solar **** Geothermal Termisk* Atomkraft Vannkraft** Vindkraft*** Bio Sol**** Geotermisk Onshore Offshore * Coal and Gas ** incl pumped-storage and small scale hydro *** onshore and offshore **** PV and CSP 10 Source: IHS Emerging Energy Research

11 Statkraft s wind power portfolio Norway MW Statkraft share Kjøllefjord Smøla 150 MW 100% Hitra 55 MW 100% Kjøllefjord 39 MW 100% Under dev. Norway 2000 MW - Sweden MW Statkraft share EM (Södra) 9,2 MW 90% Tollapabjär (Södra) 2,3 MW 90% Stamåsen (SCA) 60 MW 60% Hitra Smøla Stamåsen Mörttjärnberget Mörttjärnberget (SCA) 85 MW 60% Björkhöjden (SCA) 270 MW 60% Björkhöyden / Ögonfagnaden Ögonfägnaden (SCA) 99 MW 60% Under dev. Sweden 1300 MW - UK MW Statkraft share Baillie Alltwalis 23 MW 51% Baillie 53 MW 51% Berry Burn 67 MW 51% Berry Burn Dogger Bank Em Tollarpabjär Under dev. Onshore 100 MW - Dudgeon (WO)* 560 MW 30% Sheringham Shoal (WO)* 317 MW 50% 11 Dogger Bank (WO) 9632 MW 25% Alltwalis Dudgeon Sheringham Shoal In operation Under construction Under development

12 /MWh Technology- and cost development Increased capacity of the turbines and bigger turbines increases production Capacity factor contributes to lower cost over time Development of cost of energy in Onshore wind Source: Bloomberg New Energy Finance

13 Good wind conditions are crucial for windpower Stamåsen Wind farm A= m² D= 113 m H= 171,5 m h= 115 m 13

14 Onshore wind power in Norway, Sweden and UK Developing onshore wind power through SAE Vind and Fosen Vind in Norway, and in cooperation with SCA and Södra in Sweden Norway - Hitra, Kjøllefjord and Smøla (installed capacity: 244 MW) Sweden - Em, Stamåsen, Tollarpabjär and Mörttjärnberget (installed capacity 171 MW) UK - Alltwalis, Baillie and Berry Burn (installed capacity 143 MW) 14

15 Operational Asset Norway Smøla wind farm - Capacity: 150,4 MW - Production: 356 GWh - Statkraft s share: 100 % - In operation: 2002/2005 Hitra wind farm: - Capacity: 55,2 MW - Production: 138 GWh - Statkraft s share: 100 % - In operation: 2004 Kjøllefjord wind farm - Capacity: 39,1 MW - Production: 119 GWh - Statkraft s share: 100 % - In operation: 2006 Vindkraft i Statkraft

16 Operational Asset Sweden Em wind farm - Capacity: 9,2 MW - Production: 22 GWh - Statkraft s share 90,1 % - Partner (9,9% %): Södra - In operation: 2011 Stamåsen wind farm - Capacity/production: 60 MW/200GWh - Statkraft s share: 60 % - Partner (40 %): SCA - In operation: 2013 Mörttjärnberget wind farm - Capacity/production: 85 MW/280 GWh - Investment (100%): 1650 MSEK - Statkraft s share: 60 % - Partner (40 %): SCA - In operation: Q Vindkraft i Statkraft

17 Operational Asset Sweden Tollarpabjär - Capacity: 2,3 MW - Production: 6 GWh - Statkraft s share 90,1 % - Partner (9,9% %): Södra - In operation:

18 Operational Asset UK Alltwalis wind farm - Capacity: 23 MW - Production: 64 GWh - Statkraft s share: 51 % - In operation: 2010 Baillie wind farm - Capacity/production: 52.5MW/170 GWh - Investment (100%): 60 MGBP - Statkraft s share: 51 % - Partner (20 %): Landowner - In operation: 2013 Berry Burn wind farm - Capacity/production: 66.7MW/184 GWh - Statkraft s share: 51 % - In operation: Q Vindkraft i Statkraft

19 Projects under construction Björkhöyden wind farm - Capacity/production: 270 MW/800 GWh - Investment (100%): 3800 MNOK - Statkraft s share: 60 % - Partner (40 %): SCA - In operation: 2014/2015 Ögonfägnaden wind farm - Capacity/production: 99 MW/290 GWh - Investment (100%): 1400 MNOK - Statkraft s share: 60 % - Partner (40 %): SCA - In operation:

20 Konsesjoner i Fosen/Snillfjord/Hitra/Frøyaregionen SAE Vind - Storheia MW *) - Kvenndalsfjellet MW *) - Geitfjellet 170 MW **) - Svarthammaren 150 MW **) - Hitra 2-75 MW **) Zephyr - Remmafjellet 130 MW **) Sarepta - Sørmarkfjellet -150 MW - Roan MW *) - Harbaksfjellet - 90 MW - Frøya 60 MW **) Statkraft - Hitra 55 MW (eksisterende anlegg), kan være aktuelt for fornying **) SAE Vind Andre aktører 20 *) Prosjekter som inngår i Fosen Vind samarbeidet, samlet ca. 620 MW **) Prosjekter aktuelle for innmating i Snillfjord, samlet ca. 640 MW

21 Testing new turbine technology in Sweden Due to long transport on narrow roads the supplier had to come up with an alternative solutions on towers The solution was shell towers transported in «flat-packs» and bolted together This is also the first Statkraft windfarms with direct drive turbines 21

22 Shell Tower Aug 2012

23 23

24 24

25 Lead operator in offshore wind power in UK Owner* and operator of Sheringham Shoal offshore wind farm (317 MW) Offshore wind farm Dudgeon** is under construction (402 MW) Several 1200 MW-projects on Doggerbank*** under development 25 * In partnership with Statoil ** In partnership with Statoil and Masdar ** With partners through Forewind Ltd

26 Statkrafts offshore wind strategy Next project: operator/ industrial role Dogger Bank: Operator on one of four projects Sheringham Shoal: Dudgeon: Integrated partner (30%) Partner during construction, operator in operational phase (50%) 26

27 MAIN FOCUS IN OFFSHORE WIND POWER Build capabilities, and institutionalise learning from the Sheringham Shoal project as a basis for taking a leading role in future offshore wind power projects Develop Dudgeon together with Statoil Find other projects to help build capability Develop the Dogger Bank projects up to consent 27

28

29 THE SHERINGHAM SHOAL OFFSHORE WIND FARM Key facts: 50/50 JV Statoil and Statkraft Installed capacity: 317 MW Annual production: 1,1 TWh Capex: ~10 bill. NOK (1,2 bill. ) In operation Responsibilities: Operator in construction: Statoil O&M operator: Statkraft 29

30 Knowledge transfer Several staff who has worked at Smøla for 10 years has been used in building up the operation at Sheringham Shoal This is to secure valuable knowledge of wind turbines and operation of wind parks are being transferred into the offshore wind sector. Picture shows Arild Soleim who has been power plant manager at both Smøla and Sheringham Shoal. 30

31 Dudgeon Facts Allocation round Area Waterdepth Installed capacity Offshore cable Onshore cable Turbine Foundations UK R2 55 km m 402 MW 42 km 47 km 6.0 MW Siemens Direct drive XL monopiles 31

32 Dudgeon in numbers 67 6MW DD turbines w/ 154m dia. 90 km export cable 47 land owners Monopiles >1000 tonn > tonn steel 500 major lifts lifts offshore (large potential for optimisation/reduction) More than 5000 vessel days offshore Siemens new 6 MW DD turbine 32

33 PROJECT DEVELOPMENT ON DOGGER BANK Project development in Forewind Ltd - Jointly owned company between Scottish & Southern Energy, RWE Innogy, Statoil and Statkraft - Statkraft holds a 25% share in Forewind Key figures: - Distance to shore: km - Water depth: m - Extends over nearly 9,000 km² Status - Secured grid connection for 6 x 1000 MW - Two offshore meteorological masts installed on innovative suction buckets in First consent application for 2 x 1200MW was submitted August Next consent application for 2 x 1200MW was submitted March First consents expected Q1 2015, investment decisions would follow as appropriate 33

34 Haugøya test turbine at Smøla Final consent received July Preliminary milestones: - FID in Q Site completed winter 2015/16 - WTG installation in Operational in Turbine power: Hub height: Rotor diameter: Yearly production: 6-8 MW m m GWh 34

35 Why Haugøya at Smøla? Onshore testing has lower cost and risk compared to offshore testing Smøla has very good wind conditions and is well suited as test site Haugøya can easily be facilitated for barge transport for turbine, tower and required equipment Statkraft can utilize its existing operational organisation at Smøla There exist attractive support regimes for test facilities in Norway 35

36 Levelized Cost of Energy CHALLENGES FOR OFFSHORE WIND POWER Statkraft believes that wind power will be an attractive and profitable industry for players that develop strong capabilities across the value chain The industry is still immature, with technical risk and supply chain bottlenecks New projects on deeper waters, and increased distance from shore COAL CCGT Nuclear Wind on Wind off Sol PV Coal CCS The cost of offshore wind power is high compared to other power generation technologies We expect cost reductions through more efficient technology and gradual maturing of the industry Levelized Cost of Energy Cost of energy for different technologies Cost of Energy Decommissioning CO₂ costs Fuel costs Variable costs Fixed costs CapEx COAL CCGT Nuclear Wind on Wind off Sol PV Coal CCS De CO Fu Va Fix Ca 36 Source: Statkraft

37 LCoE scenario LCoE - UK Coal, UK Onshore wind, UK Offshore wind, UK - base CAPEX

38 Cost reductions are key R&D plays a vital role 38

39 THANK YOU

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