OWIB 2014 DONG Energy Wind Power Pipeline & Markets

Transcription

1 OWIB Wind Power Pipeline & Markets Thomas Brostrøm, September

2 is a leading energy group in Northern Europe at a glance ownership distribution 2013: Revenue: DKK 73.1 bn (EUR 9.8 bn) EBITDA: DKK 15.0 bn (EUR 2.0 bn) Employees: 6,500 Headquarters in Denmark Other minorities 7.2% 1.8% 4.9% 10.9% 18.0% 57.3% Long term vision To supply reliable energy without CO 2 emission At least 85% of power generation from renewable energy by 2040 Danish state 2

3 Wind Power Principal activity Development, construction and operation of offshore wind farms Market position Market leader in offshore wind, has built 35% of European capacity Strong pipeline of projects in lead-up to Business drivers Wind conditions Availability Market prices and regulated electricity prices Standardisation and maturing of value chain Partnerships with industrial and financial investors Execution of investment projects ROCE targets 2013: 4.6% 2016: 6-8% : 12-14% Strategic targets for Installed offshore wind capacity (gross installed): 6.5 GW Reducing offshore wind Cost of Electricity to below EUR 100/MWh 3 1 The percentages indicate the proportion of the Group that each business unit represented in Intragroup revenue means that the business units combined revenue exceeds consolidated revenue. 3 Cost to society based on projects in the UK where final investment decisions will be made in. 3

4 North European offshore wind power market continues to grow strongly Expected installed offshore wind capacity in Europe, GW Total Europe, GW UK Energy Market Reform finalized 3 of 's upcoming UK projects were awarded Investment Contracts in April Denmark National Energy Plan backing offshore Target of 50% wind energy generation by Aiming at 100% renewables generation by Other Constructed by France Potentially strong local supply chain Two tender rounds completed Netherlands New energy bill has set a timetable for tendering 3.5 GW of new offshore wind capacity in Alongside projects already in the pipeline, this result in 4.5 GW by Germany Nuclear phase out by 2023 Grid connection uncertainty Uncertainty regarding new EEG and support beyond 2019 Source: Bloomberg New Energy Finance, 4COffshore, internal assessment (as of August ) 4

5 Potential new offshore wind market development opportunities are also outside Europe Offshore wind new markets opportunities Major potential Ambitious targets Ambitious targets Capacity need Abundant resources 5

6 Wind Power pipeline projects Offshore wind power projects in operation, under construction and development Expected development in installed offshore wind capacity, GW Capacity 31/12/2013 Under construction New capacity Pipeline projects Walney Ext. Expected capacity Walney 1 +2 First Flight Wind West of Duddon Sands Barrow Burbo Bank Ext. Burbo Bank Westermost Rough Lincs Gunfleet Sands 1+ 2 Gunfleet Sands 3 Hornsea One Race Bank Den Helder Breeveertien West Rijn Horns Rev 3* Horns Rev 1+2 Gode Wind 4+3* Gode Wind 1+2 Borkum Riffgrund 1 Borkum Riffgrund 2 Borkum Riffgrund West 1 Anholt Vindeby Nysted Middelgrunden West of Duddon Sands 2.1 Borkum Riffgrund 1 Westermost Rough Gode Wind London Array 1 Courseulles-sur-Mer Fécamp In operation Under construction (expected) target Saint-Nazaire Under development *Project rights not secured Installed capacity is shown gross, i. e. before any divestments. Named wind farms are for which investment decisions had been made. Wind farms constructed over several years are only shown in the year in which they become fully operational. 6

7 How do DE collaborate with suppliers to reduce CoE? - Early involvement of the supply base and use of system suppliers key to increase and improve cost out opportunities Develop Standard Wind farm Conceptual design Detailed design Supply In-house design 1 Supplier prepares conceptual and detailed design (possibly via design company) A supplier is selected based on most favourable tender E.g. monopiles, substation Systemsupplier DONG DONG Supplier (& DONG) Supplier Earlier supplier involvement provides opportunities for technical improvements DONG prepares conceptual design or functional requirements and tender to system suppliers System supplier prepares detailed design and delivers the supply Alternatively, one or more system suppliers prepare detailed design and tender for the supply E.g. array cables, el. components 7

8 How to become a supplier to Procurement Qualification System for Suppliers uses the Achilles qualification systems: Sellicha for Global Categories. UVDB for Local Categories in the UK. Connexio for Local Categories in Germany. Help in setting up on these qualification systems is available through the GROW offshore initiative Tier 1 Global Supplier Sellicha Tier 2+ Local Suppliers Tier 1 Local Supplier UVDB Tier 1 Suppliers Qualification System DONG contact: Charlotte Jensen (CHAJA@dongenergy.dk) Definitions of Global and Local Categories can be found at

9 Key challenges for offshore wind 1. Cost of Energy 2. Local Content 160 < Supply chain bottle necks 9