Offshore wind : The base for the Energy Change? Not at those costs!!

Transcription

1 Offshore wind : The base for the Energy Change? Not at those costs!! Thierry Aelens Chief Commercial Officer RWE OLC OWIB, Esbjerg, November 15th 2012 PAGE 1

2 Agenda 1. Offshore Wind at RWE 2. How to reduce risks and costs? 3. How to standardise Offshore Wind? 4. Port infrastructure 5. Grid Connection 6. Conclusion PAGE 2

3 1. Offshore Wind at RWE PAGE 3

4 RWE Innogy: Focus on wind, hydro and biomass while also supporting new technologies Onshore Wind Offshore Wind Hydro Biomass New Technologies > Established in February 2008 > Bundling renewables activities and competencies across RWE Group > Focus on capacity growth in commercially mature renewable technologies, i.e. wind, biomass and hydro > Research & Development and Venture Capital to drive the development of emerging technologies, e.g. solar, geothermal, marine > Focus on Europe: Asset portfolio of 2.4 GW in operation and 1.1 GW under construction mainly located in United Kingdom, Germany, Spain, Netherlands, Italy and Poland * PAGE 4

5 Installed European Offshore Wind capacity per year [MW] Strong growth expected in the offshore wind market 6000 installed MW per year Forecast EWEA* Forecast BTM** *: EWEA, Wind Energy Targets for 2020 and 2030, July 2011 **: BTM Consult, World Market Update 2010, March e 2013e 2014e 2015e > Sustainable, annual growth of around 30% expected for the European offshore wind industry > Offshore Wind power plants offer potential to build large-scale entities (1000 MW+) PAGE 5

6 Offshore wind power plants: status quo 3-5 MW class, 3 MW class, market shift 2 MW class, commercialisation < 1 MW class, test phase Country Site Name Number WTG Power [MW] Capacity [MW] Start UK Walney 1 51 Siemens SWT ,6 183, GER Baltic I 21 Siemens SWT ,3 48, UK Thanet 100 Vestas V B Bligh Bank 55 Vestas V DK Rodsand 2 90 Siemens SWT , UK Gunfleet Sands 48 Siemens SWT ,6 172, GER Alpha Ventus 12 6 x Multibrid M5000 & 6 REpower 5M B Thornton Bank 6 REpower 5M UK Lynn / Inner Dowsing 54 Siemens SWT ,6 194, UK Rhyl Flats 25 Siemens SWT , SWE Vindpark Vanem ** 10 WinWinD 3MW UK Robin Rigg 60 Vestas V CN Donghai Bridge*** 34 Sinovel SL DK Horns Rev II 91 Siemens SWT ,3 209, NOR Hywind **** 1 Siemens SWT ,3 2, GER Hooksiel 1 Bard DK Sprogo 7 Vestas V FIN Kemi Ajos *** 10 WindWinD 3MW NL Princess Amalia 60 Vestas V UK Beatrice 2 REpower 5M UK Burbo Bank 25 Siemens SWT , NL Egmond ann Zee 36 Vestas V SWE Lilgrund 48 Siemens SWT ,3 110, UK Barrow 30 Vestas V GER Breitling 1 Nordex 2,5 2, UK Kentish Flats 30 Vestas V GER Ems Emden * 1 Enercon E IRE Arklow Bank 7 GE 3,6 MW 3,6 25, DK Samso 10 Siemens SWT , UK Scroby Sands 30 Vestas V UK North Hoyle 30 Vestas V DK Frederishavn* 4 2 x Vestas, 1 x Nordex, 1 x Bonus 0, DK Nysted 72 Siemens SWT ,3 165, DK Roenland 8 4 x Siemens SWT , 4 x Vestas V80 2,15 17, DK Horns Rev I 80 Vestas V SWE Ytre Stengrund 5 NEG Micon 2MW (Vestas) DK Middelgrunden 20 Bonus 2MW (Siemens) SWE Utgrunden 1 7 GE 1,5 MW 1,5 10, UK Blyth Offshore 2 Vestas V SWE Bockstiegen 5 Wind World 550kW 0, NL Irene Vorrink 28 Nordtank NTK600/43 (Vestas) 0,6 16, DK Tuno Knob 10 Vestas V39 0, NL Lely 4 Nedwind 500kW/41 0, DK Vindeby Knob 11 Siemens 450 0,4 4, *near shore, **lake, *** harbour, **** floating PAGE 6

7 RWE is extremely active in the European offshore wind market Power plants under development Power plants under construction Power plants in operation Innogy Nordsee 1, D, 996MW Nordsee Ost, D, 295MW North Hoyle, UK, 60 MW: Fully commissioned in 2004 Seven years of experience in operation and maintenance Galloper, UK, 500MW Gwynt y Môr, UK, 576MW Triton Knoll, UK, 1200MW Rhyl Flats, UK, 90 MW: Fully commissioned in 2009 Second of a total three wind farms to be installed off the coast of Wales Atlantic Array, UK, 1500MW Greater Gabbard,UK, 504MW Tromp Binnen, NL, 300MW Dogger Bank, UK, 9000MW Thornton Bank II+III, B, 295MW Thornton Bank I, B, 30 MW: Fully commissioned in 2009 RWE s first offshore wind farm outside the UK PAGE 7

8 RWE Innogy s Offshore Wind Portfolio Dogger Bank 5 (9.000 MW) Nordsee Ost (295 MW) North Hoyle 1 (60 MW) Rhyl Flats (90 MW) Gwynt y Môr 4 (576 MW) Triton Knoll (1.200 MW) Greater Gabbard 3 (504 MW) Galloper 3 (500 MW) Tromp Binnen (300 MW) Nordsee 1 (960 MW) Thornton Bank 2 (325 MW) Atlantic Array (1.500 MW) 1 RWE Innogy (33%), owned by Zephyr Investments Ltd. 2 RWE Innogy (27%), phase 1 (30 MW) in operation since 2009; Phase 2 und 3 (325 MW) under construction 3 RWE Innogy (50%), SSE (50%) 4 RWE Innogy (60%), Stadtwerke Munich (30%) and Siemens (10%) 5 Development through Forewind-Consortium (RWE Innogy, SSE, Statoil, Statkraft) PAGE 8

9 RWE s approach: cover the entire project life cycle Development Construction Operation & Maintenance > Covering the entire project life cycle ensures that construction and especially O&M requirements are already considered in earlier project phases > Close collaboration between employees of all three project phases also allows for lessons learned to be quickly adopted for future projects PAGE 9

10 2. How to reduce risks and costs? PAGE 10

11 Stepwise approach to development risk management RWE example Develop Construct Operate Monetise Pipeline Under Construction Operational North Hoyle x 2.0MW 7-11m depth Rhyl Flats x 3.6MW 15m depth Gwynt Y Môr x 3.6MW 12-28m depth Greater Gabbard x 3.6MW 24-34m depth Thornton Bank x 5.0MW 20m depth Nordsee Ost x 6.2MW 22-26m depth Dogger Bank x 6.0MW 18-50m depth - Monopile - Gravity - Jacket North Hoyle 7km Rhyl Flats 8km Gwynt Y Môr 13km Greater Gabbard 25-47km Thornton Bank 29km Nordsee Ost 35km Dogger Bank 125km > Step wise approach of learning nearshore before going out into deep water far offshore > Participation in international R&D projects aiming to reduce costs by optimising design PAGE 11

12 Water Depth [m] Distance to shore and water depth - the critical factors Beatrice Field Thornton Bank Innogy Nordsee 1 Dan-Tysk Alpha Ventus 30 Gode Wind Greater Gabbard Belwind Nordsee Ost 25 Côte d'albâtre Thanet Princess Amalia (Q7) Sheringham Shoal Amrum Bank West 20 Barrow Triton Knoll Egmond aan Zee Butendiek Baltic 1 London Array 15 Samso Lincs Gwynt y Môr Horns Rev 2 Rhyl Flats North Hoyle 10 Lynn & Horns Rev Inner Dowsing Lillgrund Rødsand II Nysted Nordergründe Commercial Gunfleet Sands 5 Scroby Sands Robin Rigg Burbo Bank Kentish Flats Arklow Bank 0 Planned OWF Pioneer Phase X Sandbank 24 Bard Offshore 1 Albatros Hochseewindpark De Dreiht Global Tech 1 Hochsee Windpark Nordsee Shore Distance [km] UK Round 3 East Coast RWE Innogy Offshore Projects RWE Innogy 26. Januar 2011 SEITE 12

13 Deep water installations require large components Monopiles weight: ca. 250 t plus transition piece ca. 180 t height: ca. 30 m material: steel turbine: 3.6 MW weight: ca. 1,000 t height: ca. 60 m material: steel turbines: 5/6 MW weight: ca. 3,000 t height: ca. 60 m material: concrete turbines: 5/6 MW Jackets Gravity Foundations PAGE 13

14 rated power (kw) Manufacturers geared towards large-scale offshore turbines RWE fixed its strategy on 6-7 MW in early GE 3.6s REpower 6M 122/Bard VM REpower 5M Multibrid 116/5000M E-112/4500 Siemens 6 dd V Alstom 6MW N150/ Vestas V90 Siemens swept rotor area (m²) PAGE 14

15 Cost reductions to be expected for: wind turbines > Increasing turbine sizes (6MW+) reduce costs per installed MW > More intensive competition among turbine manufacturers (Siemens, REpower, Vestas, Nordex, Alstom, etc.) brings down turbine prices > Leaps in technology (eg. direct drive technology) increase turbine reliability and reduce unplanned maintenance activities > Increased turbine reliability reduces number of unplanned offshore service activities PAGE 15

16 Cost reductions to be expected for: foundations > Serial production of foundations leads to reduced prices and faster production > Optimised designs for various foundations types (monopiles, jackets, gravity foundations etc.) reduce prices (eg. due to lesser steel requirements) > After having tried several foundations type, RWE has concentrated its strategy towards a couple of foundations type. Standardization in foundations enables investments in industrial facilities. PAGE 16

17 Cost reductions to be expected for: O&M > Increased in-house activites regarding O&M for offshore wind farms will partly or fully replace costly O&M contracts with turbine manufacturers > Geographical clusters for offshore wind farms (eg. off the coast of North Wales: North Hoyle, Rhyl Flats, Gwynt y Môr) create synergies for O&M activities > Increased reliability of components (turbines, foundations, substations etc.) reduces numbers of arduous and expensive offshore service activities > Increased rated power of turbines means a reduced number of turbines to be maintained without reducing the capacity of the wind farm PAGE 17

18 3. How to standardise Offshore Wind? PAGE 18

19 Decommissioning OLC supporting all phases of the project PAGE 19

20 Seabreeze: The ultimate standardization weapon > Construction of 2 self propelled Jack-Up vessels > Specially designed for turbines in the 5 to 8 MW class > and deepwater environment: possibility to be used in water depth > 45 meters (using leg extensions) > Less exposed to weather conditions RWE Innogy PAGE 20

21 Seabreeze adequately addresses HSE risks Offshore installation works combine three extremely challenging types of work: Major offshore incidents in UK (RIDDOR reportable) 1) > work at sea > work at great heights > heavy lifting works 1) Source: Offshore injury, ill health and incident statistics 2009/2010, Health & Safety Executive Hazardous Installations Directorate Offshore Division, UK RWE Innogy approach: > Strict health and safety procedures > Health, Safety & Environment (HSE) group of professionals looking after RWE Innogy staff and our subcontractors > Head of HSE with 35 years of offshore experience RWE Innogy PAGE 21

22 4. Challenge: Port infrastructure > Container Terminal 1 in Bremerhaven to serve as base port for Nordsee Ost > Port leased for two years (mid mid 2013) > First year: 9 ha area / Second year: 17 ha area including 400 meter quayside > Handling of 48 foundations and 48 wind turbines > German ports still do not include Marine renewables in their processes RWE Innogy 12/3/ Handelsblatt Jahrestagung Berlin, August 31st 2010 PAGE 22

23 5. Challenge: Grid connection and Distance to shore Source: E.ON Netz RWE Innogy 12/3/ Handelsblatt Jahrestagung Berlin, August 31st 2010 PAGE 23

24 4. Conclusion PAGE 24

25 RWE Well positioned to master the Offshore challenge RWE has significant experience in the offshore wind industry (North Hoyle operating since 2003, Rhyl Flats since 2009) RWE s track record shows its ability to successfully develop, construct and operate offshore wind power plants RWE has taken investment decisions for a 1GW construction programme in UK, Germany and Belgium RWE has shown how to overcome critical bottlenecks along the value chain (installations vessels, turbine framework agreement, know-how) Commissioning of two pupose-built offshore construction vessles suitable for large-scale multimegawatt turbine installation RWE s framework agreement with the turbine manufacturer REpower ensures the supply of first-class offshore turbines Successful recruitment of a very broad and experienced Offshore Wind department PAGE 25

26 - STRICTLY CONFIDENTIAL - Project Owners can take care of their own scope with the right People, Technology choices and Equipment! Turbine Manufacturers must stop their rated power race and increase reliability and decrease prices! Governements must guarantee security of investment (Grid, Infrastrucuture) The supply chain must take a long term view and reduce costs. If Offshore wind Wants to be the Energy of Tomorrow It needs to be below 100 /MWh by 2020 PAGE 26

27 Thank you very much for your attention! PAGE 27

28 Back-up PAGE 28

29 RWE among top 5 wind farm operators by end of 2011 Offshore wind power plants in operation in MW (pro rata as of ) Offshore wind power plants in operation in % ( ) % 6% 467 RWE 18% RWE 147 EON DONG 6% EON DONG Vattenfall Vattenfall Centrica Centrica Others Others % 26% Total: 3139 MW Top 5 Ranking (excluding offshore wind power plants < 10MW) 1. Vattenfall Thanet, UK, 300MW, 100%, 2010; Alpha Ventus, GER, 60MW, 26%, 2009; Egmond aan Zee, NL, 108MW, 50%, 2007; Lillgrund, SWE, 110MW, 100%, 2007; Kentish Flats, UK, 90MW, 100%, 2005; Horns Rev 1, DK, 160MW, 60%, 2002; Yttre Stengrund, SWE, 10 MW, 100%, 2002; Utgrunden, SWE, 190MW, 100%, 2001, Irene Vorrink, NL, 17MW, DONG Walney 1, UK, 184MW, 50,1%, 2011; Gunfleet Sands, UK, 172MW, 50%, 2010; Horns Rev 2, DK, 209 MW, 100%, 2009; Burbo Bank, UK, 90MW, 100%, 2007; Barrow, UK, 90MW, 50%, 2006; Horns Rev 1, DK, 160MW, 40%, 2002; Nysted, DK, 166MW, 50%, 2002; Middelgrunden, DK, 40MW, 50%, EON Rodsand II, DK, 207MW, 100%, 2010; Alpha Ventus, GER, 60MW, 26%, 2009; Robin Rigg, UK, 80MW, 100%, 2009; Scroby Sands, UK, 60MW, 100%, RWE Rhyl Flats, UK, 90MW, 100%, 2009; Thornton Bank 1, B, 30MW, 27%, 2009; North Hoyle, UK, 60MW, 33%*, Centrica Lynn/Inner Dowsing, UK, 194MW, 50%, 2009; Barrow, UK, 90MW, 50%, 2006 *PPA-ownership 100% with RWE therefore full consolidation of MW

30 Offshore wind farms under construction by end of 2011* Offshore wind power plants under construction in 2011 in MW pro rata Offshore wind power plants under construction in 2011 in % % 6% RWE RWE Trianel Bard 43% 12% Trianel Bard SSE SSE 298 DONG others 9% DONG others 674 Total: 3320 MW 20% Top 5 Ranking 1. DONG London Array, UK, 630MW, 50%; Lincs, UK, 270MW, 25%; Walney 2, UK, 184MW, 50,1%; Anholt, D, 400MW, 50% 2. Bard Bard Offshore 1, GER, 400MW, 100% 3. RWE Greater Gabbard, UK, 504MW, 50%; Thornton Bank 2+3, B, 295MW, 27% 4. SSE Greater Gabbard, UK, 504MW, 50%; Walney 2, UK, 184MW, 25,1% 5. Trianel Borkum West 2, D, 200MW, 100% Others: *at least one offshore foundation installed by 31/12/2011 incl. EON (London Array), Vattenfall (Ormonde), Statoil/Statkraft (Sheringham Shoal), Masdar (London Array), Centrica/Siemens (Lincs), Trianel (Borkum West 2), PGGM/Dutch Ampere Fund, (Walney 2), Pension Denmark/PKA (Anholt) etc.

31 North Hoyle West Coast UK (Irish Sea) Capacity: 60 MW 30 turbines Vestas V80 Foundations: Monopiles Distance from shore: 9 km Area: 10 km 2 Water depth: 5 12 m UK Round 1, first commercial offshore project in the UK Year of construction 2003 More than 7 years of operational experience PAGE 31

32 Rhyl Flats West Coast UK (Irish Sea) Capacity: 90 MW 25 turbines Siemens SWT Foundations: Monopiles Distance from shore: 10 km Area: 10 km 2 Water depth: 4 to 15 m UK Round 1 Completion in 2009 PAGE 32

33 Thornton Bank English Channel, Belgium Capacity: 325 MW Gravity base foundations and pre-piled jackets Installation in 3 phases Phase 1 (6x Repower 5M) completed in 2009 Start construction phase 2 & 3 (48x 6MW) in April 2011 Distance from shore: 30 km Water depth: 12 to 27,5 m Project company C-Power (RWE share: 26,7%) PAGE 33

34 Greater Gabbard East Coast UK (River Thames Estuary) Capacity: 504 MW 140 turbines Siemens SWT Foundations: Monopiles Distance from shore: 35 km Area: 146 km 2 Water depth: 24 to 34 m UK Round 2 Under construction since 2009 Joint Venture between SSE Renewables (50% share) and RWE Npower Renewables (50% share) PAGE 34

35 Nordsee Ost North Sea (Germany) Capacity: 295 MW 48 turbines Repower 6.15 MW Foundations: Jackets Nordsee Ost Distance from shore: 35 km north of Helgoland and 40 km west of Amrum Area: 36 km 2 Water depth: 22 to 26 m Begin of offshore construction in 2012 PAGE 35

36 Gwynt y Môr West Coast UK (Irish Sea) Capacity: 576 MW 160 turbines Siemens SWT 3.6 Foundations: Monopiles Distance from shore: 18 km Area: 125 km 2 Water depth: m UK Round 2 Construction in two phases beginning in 2012 Joint Venture with Stadtwerke München and Siemens (RWE share: 60%) PAGE 36

37 Innogy Nordsee 1 North Sea (Germany) Capacity: approx MW 162 turbines Repower 6M Distance from shore: 40 km north of Juist Water depth: m Area: 146 km² Soil investigation in 2009 Construction in 3 phases PAGE 37

38 Galloper Galloper North Sea UK (River Thames Estuary) Capacity: 504 MW up to 140 Turbines Distance from shore: 39 km Area: 180 km 2 Water depth: 30 to 40 m UK Round 2.5 Extension of Greater Gabbard Joint Venture between SSE Renewables (50% share) and RWE Npower Renewables (50% share) PAGE 38

39 Triton Knoll Triton Knoll North Sea UK Up to 1,200 MW 150 turbines (8 MW) up to 333 turbines (3.6 MW) Distance from shore: 33 km off the coast of Lincolnshire 46 km off the coats of North Norfolk Area: 195 km 2 Water depth: 8-28 m UK Round 2 Fully consented 2010 Environmental Impact Assessment (EIA) completed PAGE 39

40 Atlantic Array Atlantic Array West Coast UK (Bristol Channel) Capacity: 1500 MW 250 turbines (6 MW) Distance from shore: 14 km from North Devon 18 km from South Wales Area: 492 km 2 Water depth: 23 to 56 m UK Round 3 Beginning of Offshore Construction in 2014 PAGE 40

41 Tromp Binnen North Sea (the Netherlands) Tromp Binnen Planned Capacity: 295 MW up to 59 turbines (5 6 MW) Distance from shore: 76 km Area: 33 km 2 Water depth: m Potential capacity of entire Tromp area: 2 GW PAGE 41

42 Dogger Bank North Sea (UK) Capacity: 9,000 MW Potential: 13,000 MW (equals 1500 turbines of 6 MW) Zone development plan: 4 tranches (A-D) comprising 3-4 projects each Distance from shore: km Area: 8660 km 2 Water depth: m UK Round 3 Development of Forewind Consortium [RWE Innogy, SSE, Statoil and Statkraft; (25% each)] Largest Offshore Wind Project PAGE 42