How To Develop Offshore Wind Energy In Germany

Transcription

1 Offshore Wind Germany Market Study 2011 A common initiative with

2 Preface Strong Norwegian competence lies within the offshore sector and stems from more than 100 years of maritime shipping and North Sea oil and gas activities. The fine-tuned capabilities are now transferred to the offshore wind sector for technology and services conceptualisation. Companies developing the North Sea wind resources could benefit from the lessons learned in Norway and add complementary expertise in order to achieve their targets.. In order to inform the Norwegian offshore industry participants about the opportunities in the two most important markets for offshore wind competence, Innovation Norway and INTPOW Norwegian Renewable Energy Partners have collaborated to commission two studies - Offshore Wind Germany and Offshore Wind UK, both inspired by the two Norwegian Offshore Wind Clusters Arena NOWand Windcluster Mid-Norway. In order to promote the Norwegian offshore wind capabilities, Norwegian Renewable Energy Partners INTPOW and Innovation Norway have also commissioned a market Study and mapping of the emerging Norwegian offshore wind supply chain. Innovation Norway Innovation Norway promotes nationwide industrial development profitable to both the business economy and Norway s national economy, helps to release the potential of different districts and regions by contributing towards innovation, internationalisation and promotion. Norwegian Renewable Energy Partners - INTPOW INTPOW promotes the Norwegian renewable energy industries internationally and facilitates partnerships between Norwegian and international industry participants, including in offshore wind. It is a non-profit joint venture between the Norwegian renewable industry and the Norwegian Government. wind:research wind:research assists companies and organisations in the wind energy market as an independent trend and market research institute focussed and specialised on branch requirements. On the one hand, studies, expert opinions, market and competition analysis and investigations are compiled up-to-date for single or multiple clients (multiclient-studies) and data, information and knowledge is supplied this way. On the other hand, company specific questions are dealt with in projects for single clients based on the extensive market know-how in addition to knowledge about technologies, laws and competition. A broad spectrum including site selection, segmentations of target groups, distribution assistance and steering of M&A processes is offered. wind:research powered by trend:research Germany 2011

3 1 Executive Summary Market specifics challenges and authority support General conditions in Germany Political targets regarding offshore wind energy Total capacity to be installed until 2020, 2030, Yearly capacity to be installed until 2020, 2030, Political targets as a hurdle for the market? Resulting demand of offshore wind energy turbines and components Resulting demand of installation and service capacities Funding conditions and models for the offshore wind energy Profitability (without EEG) grid parity Legal framework regarding permits Technical standards, market barriers, test and demonstration facilities (full-scale) Contractual standards Grid technology and connection: Prerequisites Geographical conditions in Germany Other essential general conditions Market Structure Organisations, Competition, Alliances Organisations and their role Development of the competition Alliances Consolidation Trends Development of the competition intensity Structural market barriers Projects Overview, list of projects, overall planned installed capacity etc Installed capacity until 2020, 2030 and Run-up curve Projects in detail Branch structure Value-added chain: Offshore wind energy Description of the value-added steps and overview of the market participants Development and consenting Turbine and component manufacture Installation and commissioning Operation and maintenance Professional services Dismantling Value-added chain: Logistics for the offshore wind energy (part of Installation and Commissioning) Description of the value-added steps Overview of market participants and their relationships per value-added steps Engineering/design structure Table of contents

4 1 Executive Summary General conditions: In 2050 the federal government plans to generate 80% of the demanded power via renewable energies. According to Energiekonzept 2050, a paper contributing to the energy concept of the federal government wind energy is supposed to supply 50% thereof. Therefore, a major part of the power generation mix - 38% - shall be provided by offshore wind energy. The central funding instrument in Germany is the feedin tariff granted in accordance to regulations of the Erneuerbare Energien Gesetz (EEG) : 15 ct/kw will be paid for turbines installed until the end of 2015, afterwards 13 ct/kw. Market and Branch Structure: The young branch is well connected; knowledge and lessons learnt are exchanged in a number of organisations to expedite the target to build up an offshore wind industry. The number of project developers increased in the last few years. Larger energy suppliers joined the market in addition to smaller developers with experiences in the onshore wind energy sector. There are only a few manufacturers of offshore wind energy turbines yet but there are competitors from the onshore market which develop turbines for the growing offshore market. A rapid realisation of the planned offshore wind farms is only possible under the following prerequisites: 1. The discussion between the relevant departments (BMF and BMWI) concerning the conditions of the KfW credit programme need to be finished soon to get the programme on its way (the first of April was the initially intended deadline). 2. Obstacles in the approval procedure (e. g. as indicated by the BfN) have to be removed. 3. Grid connection and extension have to be realised quickly (Implementation of NABeG Netzausbaubeschleunigungsgesetz [Grid Expansion Acceleration Act]) 4. A close end of the discussion concerning the EEG-amendment 5. A fast expansion of the required infrastructure (especially ports). Projects: Most of the planned German wind farms are in the south-western part of the North Sea. In comparison, only few wind farms are planned in the Baltic Sea because of the limited potential and space. At the end of 2010 only 100 MW of installed capacity were connected to the grid. Until 2020 about MW will be installed in the German North and Baltic Sea. There are more than hundred planned and consented projects and projects under construction. 4 Executive Summary

5 2 Market specifics challenges and authority support The following module is supposed to give an introduction and an overview about the German offshore wind energy. It focuses on political targets and the consequences for the offshore wind energy. Other general conditions include the approval process, contractual standards and geographical conditions. 2.1 General conditions in Germany Germany is one of the pioneering countries in the wind energy. In Europe it has the most installed capacity (27,214 MW). The majority of the installed capacity is onshore. Only about 200 MW are installed offshore, but some of those turbines still need to be connected to the grid (Baltic 1, BARD Offshore 1). Germany has huge potential in the offshore wind energy: The government plans to increase the installed capacity significantly and supports the industry respectively (cp and 2.1.2). A large proportion of the EEZ is in the North Sea (28,539 of 32,993 km²) with favourable wind conditions There are a number of potentially suitable ports at the 3,660 km long coastal line (cp ) Political targets regarding offshore wind energy The European Commission has set a target to reduce CO 2 emissions by 20 percent compared to 1990 until Since the energy generation and the resulting CO 2 emissions of the member states is very diverse country specific CO 2 reduction targets have been set. In order to achieve this goal a number of political measures and targets have been passed in Germany. The following sections will focus on offshore wind energy Total capacity to be installed until 2020, 2030, 2050 The federal government has set clear goals for the offshore wind energy for 2020, In 2050 it plans to generate 80% of the demanded power via renew- able energies. According to Energiekonzept 2050, a paper contributing to the energy concept of the federal government wind energy is supposed to supply 50% thereof. The major part of the power generation mix - 38% - shall be provided by offshore wind energy. The following table gives an overview about the government s goals and the forecast by wind:research for the respective years: Installed capacity wind:research forecast ,000 MW ca. 9,900 MW 25,000 MW ca. 22,400 MW 95,000 MW* No forecast available as of now Table 1: Goals of the federal government and wind:research forecast (Source: wind:research); *According to Energiekonzept 2050, a contribution to the energy concept of the federal government Yearly capacity to be installed until 2020, 2030, 2050 At the end of 2010 Germany had an installed capacity of MW within the offshore wind energy. The wind farms contributing to the installed capacity include alpha ventus, Baltic 1 and BARD Offshore 1. The following table gives an overview of the installed capacity: Offshore wind farm alpha ventus Baltic 1 (not yet connectied to the grip) BARD Offshore 1 (15 turbines installed, first cluster connected to the grid) Total Capacity 60 MW 48.3 MW 75 MW MW Table 2: Installed capacity in Germany until the end of 2010 In order to reach the goal of 10,000 MW in 2020, Germany needs to install more than 9,800 MW within the next ten years. That is about 1,000 MW per year. About 880 MW have been installed across Europe in 2010 showing that the (German) industry needs to grow significantly in the coming years. At the turn of the century, onshore wind energy in Germany increased at a rate of about 2,000 MW per year. Similar rates are needed in the decades to come, Market specifics challenges and authority support 5

6 if the political targets are to be fulfilled. Since onshore turbines are much easier to store, transport and install, the offshore wind energy branch faces some major challenges. The following table shows the capacity that is to be installed until 2020, 2030 and 2050 if the respective goals are to be fulfilled: Installed capacity to date: MW Capacity to be installed Yearly capacity to be installed Until ,816.7 MW MW ,000 MW 1,500 MW ,000 MW 3,500 MW Table 3: Yearly capacity to be installed to reach the respective goals Political targets as a hurdle for the market? The federal government plans to reduce CO 2 emissions by 80% until the year These plans are very ambitious according to many experts and the participants of the Handelsblatt Jahrestagung in Illustration 1 shows whether or not the experts judge the targets as realistic. In order to achieve this goal different technologies will be used. A focus is laid on offshore wind energy. But also nuclear energy is supposed to contribute to the targeted CO 2 reduction. Whether or not the runtime extension of nuclear power plants impedes the development of the offshore wind energy in Germany is widely discussed since the government s decision last fall. There are two different main viewpoints: Nature conservation organisations, wind energy branch associations and others fear that especially the expansion of the offshore wind energy will be slowed down significantly. A lot of the planned capacity belongs to the nuclear plant operators. Many of the nuclear power plants are already paid off so that profits are comparably high. In order to install offshore wind farms large investments are needed and the financial risks are not fully foreseeable. Therefore, organisations see the risk that the nuclear power plants operators will not continue with their plans to install offshore wind farms with the same speed they would have done if the runtime extension would not have been granted. The government and nuclear power plant operators on the other hand argue that the additional profits gained from the extension will partly be used in favour of the offshore wind energy. The feed-in tariff granted by the government and the fund for renewable energies fed by the nuclear plant operators are supposed to support the offshore wind energy considerably. Therefore, a hindering effect of the runtime extension of nuclear power plants is not to be expected according to nuclear plant operators and the government. Do you think that the target to reduce CO 2 emissions by 80%, as planned in the federal energy concept is realizable? No, not realizable at all 12.2% Yes, but the target will be missed clearly 41.7% Yes, the target will be missed slightly reduction of at least 70% Yes, the target will be reached 16.6% 19.6% Yes, the target will be surpassed, more than 80% are possible 9.9% 0% 10% 20% 30% 40% 50% Illustration 1: Do you think that the target to reduce CO 2 emissions according to the federal energy concept is realizable? (Source: wind:research) 6 Market specifics challenges and authority support

7 Resulting demand of offshore wind energy turbines and components The planned installed capacity in the offshore wind energy in Germany results in a large number of turbines that is to be installed. The following table shows an overview of the number of turbines that is needed given a specific average turbine capacity. Additional installed capacity Number of turbines Average capacity per turbine ca. 9,800 MW 15,000 MW 70,000 MW ca. 1,970 ca. 2,000 ca. 7,000 ca. 5 MW ca. 7.5 MW ca. 10 MW Table 4: Resulting demand of offshore wind energy turbines and components Resulting demand of installation and service capacities In order to achieve the expansion targets a respective infrastructure needs to be built up. Investments are required across the whole value-added chain of the offshore wind energy. One major part is the demand for installation vessels for turbines and foundations. For the installation of Baltic 1 sixty vessels have been used. A maximum of 21 vessels have been at the construction site at the same time. Those vessels have been moved approximately 1,270 times in order to install the 21 turbines. In addition to the vessels a multitude of ports were needed in order to supply and assemble the components, handle them and transport them to the construction site. The ports need to be sufficiently equipped for the large components that are handled within the offshore wind energy. This includes especially the size of heavy duty storage and assembly sites and the lifting ability of (quayside) cranes. Maps of various offshore wind farms and the production sites of the suppliers including the utilised ports are shown in Module 3. They clarify the complexity of offshore wind farm logistics Funding conditions and models for the offshore wind energy The central funding instrument in Germany is the feed-in tariff granted in accordance to regulations of the Erneuerbare Energien Gesetz (EEG) (cf. Table 5). There are several funding programmes in addition to the EEG that assist the offshore wind energy: Funding of industrial sites Funding according to the Energiekonzept (five billion Euro for the first ten offshore wind farms) Funding of research and development projects Funding of European organisations (e. g. BARD Offshore 1, Global Tech 1 and others) Project sponsor Jülich Top cluster competition by the federal government Profitability (without EEG) grid parity Grid parity can be defined as follows: Electricity generated via offshore wind energy and electricity from the grid cost the same. Power collection of offshore wind energy is currently organised via a feed-in compensation. Feed-in of generated power at market prices is not yet possible. grid parity - offshore wind energy profitable at market prices - depends on a variety of factors: Power generation costs of the turbines, development of overall power prices, legal regulations (e.g. EEG allocation or similar systems), backup power for renewable energies, etc. Some of these factors influence each other. It has to be highlighted that offshore wind energy has evident advantages against the currently cheaper onshore wind energy that is often fed in at market prices: Larger turbines with a much higher number of Initiative compensation Sprinter bonus Basic compensation Annual percentage reduction 13 ct/kwh 2 ct/kwh in addition to the initiative compensation if wind farm is inaugurated until ct/kwh Five percent from the year 2015 onwards Table 5: Feed-in tariff for the offshore wind energy in Germany according to EEG (Source: BMU) Market specifics challenges and authority support 7

8 full load hours are possible. Therefore offshore wind energy has the potential to be competitive without funding Legal framework regarding permits General conditions for the expansion of the offshore wind energy in Germany are influenced by a variety of agencies on a federal and federal state level. Additionally, the respective laws and regulations have to be regarded within the approval procedure. Relevant federal agencies in Germany: Federal Ministry for the Environment, Nature Conservation and Reactor Safety Design of the general conditions for the expansion of the offshore wind energy Funding of research projects within the offshore wind energy amounting to 50 million July 2007: Submission of an experience report regarding the EEG, suggesting an increase of the feed-in compensation for offshore wind energy turbines from 9,1 cent/kwh to 11 to 14 cent/kwh. Federal Ministry of Transport, Building and Urban Affairs To a great degree involved in the development of the legal framework for offshore wind energy turbines in the exclusive economic zone The BSH (Federal Maritime and Hydrographic Agency), which is responsible for the approval of offshore wind energy turbines, is subordinated to the Federal Ministry of Transport, Building and Urban Affairs among others. Federal Agency for Nature Conservation Supports the Federal Ministry for the Environment, Nature Conservation and Reactor Safety regarding all issues concerning nature conservation in a specialist and scientific way. Responsible for identifying suitable areas where the erection of offshore wind energy turbines is not to be objected from a nature conservation perspective. Federal Office for Environment Serves as a scientific provider of information and specialist consultant regarding environmental issues Realisation of research projects concerning the influence of offshore wind energy turbines on shipping safety and the marine ecosystem. Federal Maritime and Hydrographic Agency (BSH) Determination of suitable sea areas for offshore wind energy turbines in accordance to the Federal Ministry for the Environment, Nature Conservation and Reactor Safety and with the participation of other involved ministries and the public and after hearing of the federal states Responsible for the approval of offshore wind energy turbines within the exclusive economic zone Responsible for the approval of the grid connection segment running through the exclusive economic zone Federal state agencies in Germany: Federal state agencies for Nature and Environment Agencies subordinated to the federal state environmental ministries Responsible for the management of declared nature conservation areas Federal state mining agencies Responsible for the supervision of mining management as the highest mining authorities Responsible for the coastal areas of the countries Lower Saxony, Schleswig-Holstein, Hamburg and Bremen Approval and surveillance of subsea cables Offshore Wind Standing Committee of the Federal government and the coastal states (STAOWind) Coordination of approval procedures Long term goal: Faster processing of approval procedures 8 Market specifics challenges and authority support

9 The following illustration sketches the approval process in Germany: There are several laws and regulations to be regarded within the offshore wind energy: Maritime Plant Ordinance Defines the prerequisites for the approval as well as rejection causes in connection to the erection of offshore wind energy turbines 1. Participation panel Possibility to comment application Yes Check for completeness Submission of the application Public authorities BSH Applicant No Start Completion of the documents Applicant Involvement of the public BSH Environmental impact assessment 2. Participation panel Expansion of the participation panel Public authorities and interest groups Risk assessment (e.g. ship collisions) Application conference Introduction of the project Applicant Preparation of a frame for investigating the influence on the marine environment Participation of application conference Early involvement of coastal countries regarding grid connection BSH, applicant Qualified company Qualified company Involvement of the public BSH Distribution of the documents with the possibility to comment BSH, public authorities and interest groups Hearing Discussion of comments and suggestions Participants of the hearing Examination of approvability WSD Examination of approvability BSH Approval or rejection Examination regarding species/biotope protection BfN Examination of compensation or substitutive measures or funds BSH Illustration 2: Approval procedure within the offshore wind energy in Germany (Source: wind:research) Renewable Energies Act (Erneuerbare Energien Gesetz - EEG) Grid operators are obliged to buy power generated from renewable energy sources at a prescribed compensation rate EEG-Amendment 2009: Feed-in compensation for offshore wind energy turbines is 15 cent/ kwh for turbines that are inaugurated prior to 2016 Federal Maritime Responsibilities Act Legal basis for the construction of offshore wind energy turbines within the exclusive economic zone Basis for the Maritime Plant Ordinance Rejection causes include for example the interference of ship traffic as well as an endangerment of maritime environment and bird migration Regional Planning Act (Raumordnungsgesetz - ROG) Legal basis for the realisation of a regional planning procedure in order to examine the consistency of offshore wind energy turbines with the requirements of regional planning Regulations for the processing of environmental impact assessments for constructions within the exclusive economic zone Market specifics challenges and authority support 9

10 Federal Nature Conservation Act Legal basis for the determination of protection areas within the exclusive economic zone Aims for a concentration of offshore wind energy turbines within designated zones for wind energy Infrastructure Planning Acceleration Act Transmission network operators are obliged to provide the grid connection for offshore wind energy turbines The resulting costs are allocated on the grid operation The energy concept of the federal government resolved by the cabinet is supposed to accelerate the construction of offshore wind energy turbines. Main decisions for the offshore wind energy within the energy concept include: Demand of a massive expansion of the wind energy, onshore as well as offshore Assessment of the introduction of a tender instead of fixed compensation rates for the generated power Special programme offshore wind energy : Credit volume of five billion in KfW credits for the first ten offshore wind farms at market prices (exact definition is not available) Assessment of flanking measures for the rapid expansion Amendment of the Maritime Plant Ordinance 2012 (prevention of keeping a stock of permits) Long term expansion is supposed to be secured by updating the regional planning Technical standards, market barriers, test and demonstration facilities (full-scale) The technological development within the wind energy has been rapid. The energy yield has been increased 20-fold between 1980 and The onshore wind energy is more or less established. The pace of the technological development has decreased significantly, although new solutions are needed in order to reduce costs and the dependency on funding. Within the offshore wind energy the technological development is still very dynamic. Many technological challenges have not been solved or fully understood yet. The following illustration gives an overview about possible developments within the next ten years: High voltage direct current transmission (HVDC) to the mainland Subsea cables with integrated fiber optics strands for operation of the turbine High voltage direct current (HVDC) over virtually unlimited lengths using light cables Grid nodes for the connection of multiple wind farms at sea as part of a European smart grid Grid connection Series maturity of turbines with a capacity between 2 to 3.6 MW Rotor blades with a length of 60m (rotor diameter 127m) Realisation probability >75% 25-50% Series maturity of turbines with a capacity between 5 to 6 MW Steel rotor blades Series maturity of turbines with a capacity of up to 10 MW First turbines with direct grid coupling (without converter) in regular operation Gearless turbines are used frequently Series maturity of turbines with a capacity of 20 MW % <25% Gravity base foundations can be used in water depths above 30m Water depths of more than 60m utilisable Tripods and Tripiles are used most frequently Rotor blades with a length of 90m (rotor diameter up to 200m) Swimming wind farms in water depths of more than 100m Capacity Technology Location Illustration 3: Technical development within the offshore wind energy (Source: wind:research) 10 Market specifics challenges and authority support

11 As of now, the European offshore wind energy market is comparably small. Therefore, the demand of offshore wind energy turbines and most components can easily be fulfilled by the existing manufacturers. They gain more and more experience and have clear advantages against new-entries. Especially in the turbine sector, the two main manufacturers are dominating the market (about 90% market share, see ). There are a few full-scale demonstration facilities in Germany. Many manufacturers have their own test and demonstration facilities. An overview is given in chapter Grid technology and connection: Prerequisites In order to integrate the offshore wind energy into existing national and international grid structures a massive expansion of the grids is required. The picture below shows the existing transmission lines and their capacities Contractual standards For the realisation of an offshore wind farm a multitude of contracts need to be signed. 40 contracts with a total of about 50,000 pages were signed for Baltic 1. In order to realise the wind farm, approximately 380 orders with very diverse volumes were processed: Order volume in Number of respective orders Share of total order volume < 20, ca. 1 % > 20, ,000 > 150,000-1,000, ca. 3 % 31 ca. 8 % > 1,000, ca. 88 % Illustration 4: Existing transmission grid in Europe (Source: wind:research on the basis of EWEA) The advantages and disadvantages of EPCI respectively MSC contracts are described in At the moment most offshore wind farms are realised as MSC projects in order to split the risk between multiple contractors. Some of the market participants have entered strategic partnerships or framework agreements in order to secure scarce capacities or resources. Examples include Siemens and A2Sea, REpower and RWE or DONG Energy and PNE WIND. These and further alliances are described in There are already transmission lines that are planned or in construction. The additional capacities to be realised in the short term are not yet intended to cover the expansion of the offshore wind energy but minimize the existing bottlenecks. It becomes evident, that a massive expansion is inevitable to integrate offshore wind energy. The substantial effort connected to the grid integration poses a risk for the planned realisation timelines. The planned nodes for the integration of offshore wind farms are shown on the following illustration. Looking at the realisation timeframe, it becomes evident that an efficient and transnational feed-in and transmission of offshore generated power is possible Market specifics challenges and authority support 11

12 Illustration 5: Overview of transmission grid incl. planned feed-in nodes and inauguration dates (Source: wind:research on the basis of EWEA) at the end of the decade at least to a certain degree. The Supergrid propagated by the EWEA and the ENTSO-E is available as a feed-in possibility at sea to the offshore wind energy only after 2020 due to the following reasons: The financing of the mega project is partly not specified at all. The enforcement of the transmission lines between the countries (first expansion stage) proceeds continuously (for example Ireland- Wales, GB-France, Netherlands-Sweden). Power cannot be fed into these lines yet, although they run right next to the planned offshore wind farms. In Germany massive investments into the grid are also necessary. Next to financing the greatest hurdle are civil protests. Legal regulations and the determination of national corridors for the expansion of the North-South-connection could provide a remedy. In France there are no great ambitions regarding grid expansion to be expected. The Integration of Norway (possibility of power storage utilising pumped-storage plants) is only possible within an international network. A short-term realisation is not to be expected Geographical conditions in Germany Wind speed Wind speed is crucial for offshore wind energy turbines. Wind speed at the coast is roughly between seven to nine m/s. Farther offshore wind speed increases so that many of the planned offshore wind farms will utilise wind speeds between nine to ten m/ s. Offshore wind energy turbines usually operate best at wind speeds of around twelve m/s. alpha ventus operates around 4,300 full load hours. Illustration 6 shows wind speed in Germany: Water depth The German coastal waters are comparably shallow (cf. Illustration 7 and Illustration 8). However, especially within the 12 see mile zone there are extensive protection areas (e. g. Wadden Sea, Vorpommersche Boddenlandschaft ; cf. Illustration 12 and Illustration 13). In order to protect these areas and touristic interests, most of the offshore wind farms in Germany are planned outside the 12 see mile zone where the water 12 Market specifics challenges and authority support

13 Illustration 7: Water depth within the German North Sea (Source: BSH) Illustration 6: Wind speed in Germany (Source: wind:research on the basis of meteosim Truewind) is deeper (between 20 and 60 meter). The wind farms are illustrated in Module 3. Significant wave height and swell Illustration 9 shows the significant wave height and the wave direction in the North Sea and parts of the Baltic Sea. It can be seen that the wave height in the German part of the Baltic Sea is not as high as in the North Sea. Conditions in the German Baltic Sea are generally more benign than in the North Sea making it easier to install and service offshore wind turbines but also limiting the potential energy yield. Illustration 8: Water depth within the German Baltic Sea (Source: BSH) Illustration 10 shows the significant wave height and swell at different measuring points in the German seas. It can be seen that the maximum significant wave height in 2010 was highest at measuring points far offshore. The significant wave height and swell vary considerably within short time periods. Work at sea is therefore hard to plan and has to be interrupted due to changing weather conditions at short notice. Sufficient weather windows open predominantly within the summer months. The conditions in the Baltic Sea Illustration 9: Significant wave height and wave direction in the North Sea (Source: oceanweather inc.) Market specifics challenges and authority support 13

14 Illustration 10: Significant wave height and swell at different measuring points in the German seas (Source: wind:research on the basis of BSH) are generally more favourable due to the protected location. However, parts of the Baltic Sea are covered with ice during winter months. Jack-up-barges of the newer generation are capable to operate at significant wave heights of up to 2.5 meters and increase the yearly availability considerably (cf ). The following illustration shows the significant wave height and swell at measuring point Westerland off the shore of Sylt: Protection areas As already indicated above there is a number of protection areas in the German seas. In addition to the national parks (e. g. Wadden Sea and Vorpommersche Boddenlandschaft ) near the coast, there are areas way offshore that are also protected. The following two maps show the protection areas in the German North Sea and Baltic Sea: Illustration 11: Significant wave height and swell at measuring point Westerland (Source: BSH) 14 Market specifics challenges and authority support

15 Different uses and space availability of the German seas Illustration 14 shows that large parts of the German seas are already used or are reserved for nature protection areas leaving limited space in favourable distances for the offshoe wind energy. Most of the available and profitable sites are already reserved by different project developers Other essential general conditions Illustration 12: Protection areas within the German North Sea (Source: BSH) Personnel: Europe: The rapid growth of the offshore wind energy branch and the forecasted development of the installed capacity have positive influence on the job market. it is estimated that two new jobs are created for every MW of installed capacity. There is an increasing demand of qualified personnel. Germany: Thousands of new jobs have been and will be generated by the offshore wind energy (the exact amount is currently estimated by the Bundesverband WindEn- Illustration 13: Protection areas within the German Baltic Sea (Source: BSH) ergie e.v.). The following illustration shows the estimated number of employees in the on- and offshore wind energy in Germany and the renewable energies sector in general (cf. Table 5). Illustration 14: Use of areas within the German seas (Source: BSH) Jobs created by investments (including export) Jobs created in maintenance and operation Wind 84,400 17,300 Total 209,000 66,400 Employment provided by public/ common use funding Total Jobs created by supply of biomasst 57,600 Total jobs in 2009 Total jobs in 2008 Total jobs in ,100 95,600 85, , , ,800 6,500 4,900 4, , , ,300 Table 5: Estimation of personnel employed in wind energy compared to the renewable sector in general (Source: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety) 15 Market specifics challenges and authority support

16 But due to the high demand within the offshore wind energy there is a future lack of qualified personnel in any sector: Planning Turbine operation Component manufacture Maintenance Turbine installation There is a high demand of: Electricians Laminators Locksmiths Composite fibre technicians Mechatronics The employment agency sees new perspectives for long-term unemployed and provides education vouchers (Source: Employment agency) Resources: Vessels: For the realisation of an offshore wind farm a high number of specialised vessels is needed (cp ). They are required for various tasks: Soil investigation Transport and installation of foundations Transport and installation of turbines Cable laying Transport and installation of transformation platforms Transport of spare material and personnel Accommodation vessels At the moment specialised vessels constitute a serious bottleneck for the industry. Especially turbine and foundation installation vessels are not sufficiently available. Many installation vessel new-builds will ease the situation significantly. Hydraulic hammers for the installation of foundation piles are also needed in large numbers and increasing diameters Global North America Europe Asia CRU Steel Price Indexes Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Illustration 15: Crude steel prices (Source: incrediblecharts.com) 16 Market specifics challenges and authority support

17 Port infrastructure: There are not enough suitable ports in the wake of the current and future demand. For the installation of alpha ventus, Baltic 1 and BARD Offshore 1 foreign ports have been used at least for some of the chores. A detailed map of the production sites and the utilised ports for can be found in 3.2. The following capacities are demanded in or near ports: Foundation manufacture Turbine manufacture Cable manufacture Helicopter landing sites Handling capacities Prices: Raw materials Within the offshore wind energy industry many raw materials are required. The copper price is heavily fluctuating. There has been a rapid increase after a dramatic decline at the end of Steel prices are comparably constant and there are only few price peaks. Apart from 2008 steel prices have been more or less on the same level since 2007 (see Illustration 15). Rare earths that are needed for the manufacture of wind energy turbines are scarce after a serious restriction of supply from China. The prices of most of the raw materials increase so that the task of reducing production costs becomes more and more challenging. The rise of fuel prices also leads to higher operation costs of re-spective vehicles (e. g. specialised vessels, helicopters) The demand for steel in the offshore wind energy is enormous so that the price development has a heavy influence on the industry. A single foundation turbine combination can use between 900 and 1,800 tons of different qualities of steel. There is a wide range of required qualities covering (rolled) crude steel plates for tower segments and foundation pipes as well as solid high-grade steel for gearboxes and main shafts. Market specifics challenges and authority support 17

18 3 Market Structure Organisations, Competition, Alliances The following chapter describes the structure of the German offshore market with a focus on established organisations and companies their alliances and interplay. In the first step the chapter will introduce the associations which are engaged in the market as branch representatives and their targets. The second step is a description of the competition in the market. A detailed description of the competitors follows in chapter 5 and in the profiles contained in the appendix. Selected alliances in the market are described in the third step of the chapter. Cooperation between component manufacturers in tier 2 and 3 of the value-added chain and groups of companies is described. 3.1 Organisations and their role Based on the fact that all processes in the offshore wind energy are pioneer work, networking between the market participants and exchange of experiences and information is widely accepted. Lobbying for the young branch is an important instrument to establish the offshore wind energy. The following portraits of organisations show the landscape of organisations of the offshore wind energy branch in Germany. German WindEnergy Association (Bundesverband Windenergie e.v.) BWE is the largest renewable energy association in the world, with about 20,000 members at present. The BWE is active in onshore as well as in offshore wind energy. Its members include wind turbine manufacturers, operators and their shareholders, planning offices, financiers, scientists, engineers, technicians and lawyers, as well as young conservationists and students. BWE pools expertise and experience from the entire industry. The German Wind Energy Association (BWE) participates in major associations and committees at an international level. Their goal is to bring about better international conditions for the use of wind energy and thus to create positive export conditions for German companies. At a European level, the association is also committed to ensuring that the prerequisites for a stable domestic market are in place. To this end, BWE collaborates with the European Wind Energy Association (EWEA) and the European Renewable Energies Federation (EREF). BWE is also a member of the global associations WWEA (World Wind Energy Association) and GWEC (Global Wind Energy Council). In order to promote international business cooperation, BWE also participates in the Renewable Energies Export Initiative funded by the German Federal Ministry of Economics and Technology. The association also works with the GT Z wind energy programme TERNA and is involved in the German-French Coordination Centre for Renewable Energy. Offshore Forum Windenergie The OFW GbR is a pool of project developers for offshore wind farms in the North and Baltic Sea. Functioning as a lobby for the offshore wind energy their targets are: Advancement of legal framework, economical and administrative conditions to allow the political targets on technical and economical level. Each member committed itself to refrain from applications in planning areas of other members and investments in companies, which file applications in concurrence to member planning areas. Stiftung Offshore Windenergie, German Offshore Wind Energy Foundation (GOWEF) The German Offshore Wind Energy Foundation 18 Market Structure Organisations, Competition, Alliances

19 (GOWEF) was created in 2005 as Foundation of the German Industry for the Use and Research of Wind Energy on the Sea, initiated by the Ministry of Environment, and supported by the respective coastal states (federal states) in northern Germany, as well as industry partners who have been active in the offshore wind energy sector. The main idea behind the establishment of the Foundation was to have an independent institution which supports the expansion of offshore wind energy in Germany, bundling various interests and acting as a unified voice to speak with politicians, the public, business and the scientific community. WAB Windenergieagentur Bremerhaven Bremen e.v. wab is a network of wind energy companies and institutes. It is also a liaising agency to the politically responsible bodies and local public authorities. They support their members by conducting industry studies and initiating research projects. Furthermore they assist their network partners by offering seminars, study trips, market analyses and trade fair representation. WAB helps international companies find suitable partners in the north-west region for anything related to onshore or offshore wind farms - from planning, financing and construction to the actual installation and operation of wind turbines. development agency of Rendsburg-Eckernförde district and the Development Company Brunsbüttel (egeb) are project partners of windcomm. windcomm schleswig-holstein is funded by the state of Schleswig-Holstein and by the European Fund for Regional Development (EFRE) through the Future Strategies Programme for Business Development. WindEnergy Network Rostock The Wind EnergyNetwork Rostock e. V. is a network of currently 82 companies from the wind energy sector. The association exists as a platform for companies on all steps of value chain in this sector and it champions the strengthening of domestic companies and the settlement of new wind energy companies through active lobbying work, company networking, the pooling of information and know-how and the representation of the network at trade-fairs. The objective of the society is to further develop the region of Rostock and Mecklenburg-Vorpommern into one of the leading regions for wind energy expertise in Germany. Windkraftwerke e.v. windcomm schleswig-holstein Founded in 1997 the WVW the work focuses on influencing the process of establishing the EEG. Companies working in the field of on- and offshore wind energy are members of the WVW. windcomm schleswig-holstein is a network agency in the field of wind energy. It acts as a partner for companies and organisations that specialize in this field or wish to enter the wind energy business in the region Schleswig-Holstein. It is a project of Wirtschaftsförderungsgesellschaft Nordfriesland, the economic development agency of North Frisia. The economic Market Structure Organisations, Competition, Alliances 19

20 3.2 Development of the competition At the moment, the market is influenced mainly by first movers and few smart followers. However, a strong to average competition intensity is perceived by most of the market participants. technology and lubrication systems wind energy is only one area of application, so many companies have their core business in other areas (automotive, shipbuilding, machine tools etc.). The leading Manufacturers of foundations are Aker How do you judge the competition intensity in your field of business? (n=68) Plant manufacturers/suppliers 73% 7% 13% Port builders/operators 50% 25% 25% Logistics companies 46% 31% 23% Offshore construction companies 60% 40% Shipyards/shipping companies 43% 43% 14% Wind farm operators and project planners 47% 24% 24% High Medium Low 0% 20% 40% 60% 80% 100% Share of answers [%] Illustration 16: Evaluation of intensity of competition, interview of market participants (Source: wind:research, 2010) Competition structure The number of market participants within turbine manufacture is quite limited. There are about nine major market participants (including those with turbines in development) for turbine manufacturing: Alstom (France) AREVA Wind (Germany, France) BARD Engineering (Germany) General Electric (USA) Clipper (USA) Nordex (Germany) REpower (Germany) Siemens (Denmark, Germany) Vestas (Denmark) GE Energy (USA) takes over the Norwegian ScanWind and plans the entry into the offshore wind energy market. Acciona, Alstom, Clipper and Nordex are currently developing own turbines/plants. Especially for gearboxes, rolling bearings, control (Norway), Ambau (Germany), Bilfinger Berger (Germany), Bladt (Denmark), Burntisland Fabrications (United Kingdom), Cuxhaven Steel Constructions (Germany), MT Højgaard (Denmark), Per Aarsleff (Denmark), SIAG (Germany) and Smulders (Belgium). With their actual production capacities they can not satisfy the targets for the yearly planned expansion of offshore wind energy in Europe Alliances In order to secure a steady supply of offshore wind turbines and limit the waiting periods, stratetic partnerships were contracted between DONG Energy and Siemens and between RWE Innogy and REpower as well in Component suppliers have joint ventures as well. PowerBlades for example is a joint venture between REpower and the rotor blade manufacturer SGL Rotec (former A&R Rotec). An example of foundation manufacturers include Per Aarsleff and Bilfinger&Berger 20 Market Structure Organisations, Competition, Alliances

21 that work together in different projects (e.g. installation of foundations for the offshore wind farm Horns Rev 2 ). REpower Systems AG and RWE Innogy GmbH contracted a framework agreement about the delivery of 250 turbines (5M/6M). About 150 of these turbines will be installed in the offshore wind farm Innogy Nordsee 1. Further 48 Turbines will be installed in the offshore wind farm Nordsee Ost. Further alliances between Siemens and DONG Energy (Walney 1+2, London Array und Lincs) or between REpower a subsidiary of Vattenfall for the wind farm Ormonde exist. Nordex and EnBW AG have signed cooperation contracts for future projects as well Consolidation Trends Turbine manufacture: As already described in section 3.2.1, there are only a few manufacturers of offshore wind energy turbines. Areva just recently bought all remaining shares of Multibrid from the shareholder Prokon (N-prior) becoming the sole owner of the turbine manufacturer and renaming the company in Areva Wind. The dominant role of Siemens in the market also shows that a high investment for developing/installing offshore turbines is necessary. Insurance and guarantee for offshore turbines is an additional barrier which deters smaller turbine manufacturer from entering the market. Project developer/owner: In Germany, only 39 percent of approved offshore wind projects are owned by large utilities, whereas 28 percent continue to be held by independent developers. Most of those projects will be sold sooner or later. The wind energy lobby in Germany prefers an ownership by smaller energy suppliers or others, the dominance of the big four energy suppliers as in the conventional power plant park shall be avoided. Ideally, the dominance of E.ON, EnBW, RWE and Vattenfall could be reduced in the renewable energy market. But the risks of erecting and operating an offshore wind farm can only be carried with a strong financial background. There are joint ventures of smaller energy suppliers like Trianel which invest in the offshore wind energy. The major part of the investments will be made by the big players Development of the competition intensity At the moment there is only little competition in the market of 3.6 to 5-MW-plants because of the small number of competitors and the high future demand. Based on the high demand of 5-MW-turbines it can be assumed that further manufacturers will enter the market. Acciona and Gamesa will enter the market with turbines of MW rated capacity and Clipper with a 7.5-MW-turbine. General Electric will enter the market with a 4-MW-turbine without a gearbox, which is a direct rival product to the gearless turbine of Siemens. Because of high development costs and requirements on reliability of the turbines in offshore operation there will be only a few financially strong companies which are able to establish their products in this sector. 3.3 Structural market barriers Financing: Financers usually judge the offshore wind energy in Germany as a high-risk branch because of the comparably low level of experience for example with long distances to the shore and high water depths. At the moment, only larger market participants can successfully realise their projects. The planned program for supporting the first projects by the KfW (see also description in chapter 2) will help to initiate the offshore wind energy in Germany. The required criteria for getting the support will be published in April Electricity Grid: Grid connection and the energy transport into the federal states is one of the most important Condition for the development of the offshore wind energy. There is strong resistance amongst the communities against the further development of the transmission grid especially in Germany. According to the last study about the necessary grid development by the DENA (Deutsche Energie-Agentur, German Energy Agency) additional electrical lines of more than 3,500 km are necessary to reach the requirements for the targets of Market Structure Organisations, Competition, Alliances 21

22 the development of renewable energies. Market barriers for foreign component manufacturers, suppliers and investors: In the multi-megawatt sector of offshore turbines German technology is leading in the market. As already described, the network in the offshore wind energy market is highly developed. So new technologies and materials, etc. are often discussed in an early stadium of development (see also Chapter 5 for details about suppliers). To become successfully involved within the German industry it is advantageous to join the established organisations and events. Tenders for the projects must be published over the TED the European Tender portal. Chances for suppliers can arise by technical innovations for larger turbines. Innovations in the sector of fatigue of material (moving parts) and corrosion resistant materials are promising as well. 22 Market Structure Organisations, Competition, Alliances

23 4 Projects The following module is supposed to give an overview of offshore wind energy projects in Germany in operation, under construction, consented and in a planning stage. The description of the projects helps to estimate the existing potential within the offshore wind energy in Germany. A run-up curve illustrates one possible development of the further construction of offshore turbines until An outlook until 2050 is given as well. 4.1 Overview, list of projects, overall planned installed capacity etc. The following illustration shows the offshore wind farms in operation, under construction, consented and in a planning stage. Most of the wind farms are in the south-western part of the North Sea. In comparison, only few wind farms are planned in the Baltic Sea because of the limited potential and space. Illustration 17: Offshore wind farms in the German North Sea and Baltic Sea (Source: wind:research on the basis of BSH) The following table gives an overview of offshore wind farms in operation, under construction, consented and in an early planning stage in Germany. When compared to the goals set by the federal government it can be seen that enough projects are planned in order to achieve the ambitious goals. However, a lot of questions remain concerning for example funding, financing, consenting, logistics and production capacities. Projects 23

24 Rank Wind farm Description of the wind farm Sea Turbines Capacity (MW) Water depth (m) Distance from shore (km) Status of the project Owner Owner Owner structure 1 alpha ventus North Sea Ca In operation DOTI EWE (47,5%) E.on (26,25%) Vattenfall (26,25%) 2 Baltic I Baltic Sea Ca Under construction EnBW Erneuerbare Energien and ca. 20 utilities EnBW Erneuerbare Energien (51%) Ca. 20 utilities (49%) 3 BARD Offshore 1 North Sea to Under construction Südweststrom, WV Energie Frankfurt Südweststrom (70%) WV Energie Frankfurt (30%) 4 Baltic 2 Baltic Sea to Under construction EnBW Erneuerbare Energien EnBW Energie Baden-Württemberg 5 Borkum West II (Phase 1) North Sea Ca Consented Trianel 33 (municipal) utilities 6 MEG Offshore 1 North Sea to Consented Windreich AG 7 Global Tech I North Sea to Consented Global Tech I Offshore Wind GmbH SWM (28,28%) HEAG (24,9%) EGL (24,1%) Windreich AG (12,71%) Familie Meltl (10%) 8 DanTysk North Sea to Consented DanTysk Offshore Wind GmbH Vattenfall (51%) SWM (49%) 9 Hochsee Windpark He Dreiht North Sea Ca Consented EnBW Erneuerbare Energien EnBW Energie Baden-Württemberg 10 EnBW Hohe See North Sea to Consented EnBW Erneuerbare Energien EnBW Energie Baden-Württemberg 11 Borkum Riffgat North Sea to 23 14,5 Consented EWE Weser-Ems-Energiebeteiligungen GmbH (59%) EnBW Energie Baden-Württemberg AG (26%) Energieverband Elbe-Weser Beteiligungsholding GmbH (15%) 12 Nordsee Ost North Sea to Consented RWE Innogy RWE 13 Nordergründe North Sea to Consented Energiekontor 14 He dreiht II North Sea Ca Consented EnBW Erneuerbare Energien EnBW Energie Baden-Württemberg 15 Offshore-Windpark Delta Nordsee 1 (EN- OVA Offshore North Sea Windpower) North Sea to Consented E.ON Energy Projects E.ON 16 Nördlicher Grund North Sea to Consented Nördlicher Grund GmbH GEO Gesellschaft für Energie und Oekologie mbh renergys GmbH 17 Gode Wind II North Sea to Consented PNE WIND 18 Veja Mate North Sea to Consented BARD-Group 19 Amrumbank West North Sea to Consented Amrumbank West GmbH E.ON Energy Projects 20 Offshore-Windpark Deutsche Bucht North Sea Ca Consented Windreich AG 21 Butendiek North Sea Ca Consented wpd 22 Wikinger Baltic Sea to Consented Iberdrola 23 Delta Nordsee 2 North Sea Ca Consented E.ON Energy Projects 24 Projects

25 24 Arkona-Becken Südost Baltic Sea to Consented E.ON Energy Projects 25 Borkum Riffgrund North Sea to Consented DONG Energy 26 Borkum West II (Phase 2) North Sea Ca Consented Trianel 27 Sandbank 24 North Sea to Consented Sandbank Power GmbH & Co. KG E-Windgate GmbH [70% EWiNDGATE Ltd., Korea; 30% Minority Shareholders) 28 Gode Wind I North Sea to Consented PNE Gode Wind I GmbH PNE WIND 29 Meerwind Ost North Sea to Consented WindMW GmbH & Co Rand KG Blackstone (80 %) Windland Energieerzeugungs GmbH (20 %) 30 Meerwind Süd North Sea to Consented WindMW GmbH & Co Föhn KG Blackstone (80 %) Windland Energieerzeugungs GmbH (20 %) 31 Borkum Riffgrund West North Sea to Consented Energiekontor 32 GEOFReE Baltic Sea 5 25 Ca Consented GEO mbh Planned wind farms (not yet consented) 33 Euklas Planned 34 Innogy Nordsee I Planned 35 Offshore Windpark Austerngrund Planned 36 AreaC II Planned 37 AreaC III Planned 38 BightPower I Planned 39 BightPower II Planned 40 Kaskasi Planned 41 Borkum Riffgrund II Planned 42 BalticEagle Planned 43 Baltic Power East Planned 44 Baltic Power West Planned 45 Albatros Planned 46 AreaC I Planned 47 Aiolos Planned 48 Aquamarin Planned 49 Bernstein Planned 50 Citrin Planned 51 Diamant Planned 52 Kaikas Planned 53 Notos Planned 54 Borkum Riffgrund West II Planned 55 OWP West Planned 56 Sea Storm Planned Projects 25

26 Description of the wind farm Owner Rank Wind farm Sea Turbines Capacity (MW) Water depth (m) Distance from shore (km) Status of the project Owner Owner structure 57 Horizont Planned 58 Horizont Ost Planned 59 Horizont West Planned 60 Nordpassage Planned 61 Beltsee Planned 62 GAIA I Planned 63 GAIA II Planned 64 GAIA III Planned 65 GAIA IV Planned 66 GAIA V Planned 67 Sea Storm II Planned 68 Sea Wind I Planned 69 Sea Wind II Planned 70 Sea Wind III Planned 71 Sea Wind IV Planned 72 Adlergrund GAP Planned 73 Adlergrund Nordkap Planned 74 Meerwind West Planned 75 Sandbank 24 Extension Planned 76 Skua Planned 77 VentoTec Nord II Planned 78 Witte Bank Planned 79 Adlergrund Planned 80 Arcadis Ost Planned 81 Wikinger AO Planned 82 ArconaSee Süd Planned 83 ArkonaSee Ost Planned 84 ArkonaSee West Planned 85 GlobalTech II Planned 86 GlobalTech III Planned 87 H Planned 88 Hochsee Testfeld Helgoland Planned 89 Beta Baltic Planned 90 Hütter Offshore I Planned 91 Hütter Offshore II Planned 26 Projects

27 4.1.1 Installed capacity until 2020, 2030 and 2050 The following table shows the installed capacity in Germany todate, until 2020 and 2030 according to the wind:research forecast: Installed capacity in MW Todate North Sea 145 ca. 8,600 ca. 19,600 Baltic Sea 48.3 ca. 1,300 ca. 2,800 Total ca. 9,900 ca. 22,400 Table 7: Installed capacity in Germany todate, until 2020 and 2030 (Source: wind:research) The installed capacity until 2050 cannot be reasonably forecasted as of now. Until 2030 the industry will be well established and the infrastructure will be meeting the demand. Until 2050 wind farms will be built in most of the project areas. It is expected, that after 2030 the installed capacity in the offshore wind energy can be increased partly by repowering measures. Until 2050 repowering becomes more and more 92 Hütter Offshore III Planned 93 Hütter Offshore IV Planned 94 Nemo Planned 95 Nautilus Planned 96 Jules Verne Planned Planned Enova Offshore NSWP Planned Enova Offshore NSWP Planned Enova Offshore NSWP Planned Enova Offshore NSWP Strom-Nord Planned 102 Windanker Planned Total 7,156 35,495 Table 6: Overview of offshore wind farm projects in Germany (Source: wind:research) important. The overall development will be similar to the onshore wind energy Run-up curve wind:research collects data of German and international wind farms in an extensive database (ca. 330 criteria according to value-added steps). Criteria include for example: Approval status (turbines and grid connection) Financing and insurance status Investment (wind farm in total; each component) Contract status for each component Contract status for the installation of each component Start and end of construction for each component Contract status for operation & maintenance According to a complex rating system the wind farms are evaluated regarding their realisation probability and put into a realisation order. Based on the realisation order and existing as well as future capacities (ports, vessels etc.) the future expansion of the off- Projects 27

28 shore wind energy is forecasted. Illustration 18 shows the forecasted annual construction of installed capacity in Germany. Annual construction rates of installed capacity in the German offshore wind energy increase rapidly synchronously to the equipment of ports, installation Annual construction of installed capacity in the offshore wind energy in MW in Germany 1,600 1,400 1,200 1, North Sea Baltic Sea Illustration 18: Annual construction of installed capacity in Germany (Source: wind:research) 25,000 Installed capacity in the offshore wind energy in MW in Germany 20,000 15,000 10,000 5, North Sea Baltic Sea Illustration 19: Cumulated installed capacity in the offshore wind energy in MW in Germany (Source: wind:research) 28 Projects

29 vessels and the expansion of manufacturing sites. From 2013 on a more or less constant level of construction capacities is achieved. The realisation of the planned offshore wind farms will continue well beyond 2030 when repowering of existing offshore wind farms slowly starts. Illustration 19 shows the cumulated installed capacity in the offshore wind energy in Germany. Most of the installed capacity will be in the North Sea. The targets of the federal government until 2020 and until 2030 will be missed slightly (see also Table 7). ter of eight turbines (40 MW) was connected to the grid in December Baltic 2 is the second offshore wind farm of the German utility EnBW. All the major contracts have been awarded so that the project is well on its way. The grid connection of Baltic 1 will be extended and used for Baltic 2 as well. Many of the players involved in the project have also been contracted for Baltic 1 (e. g. Siemens, Weserwind). The service station in Barhöft will be used for both projects as well. 4.2 Projects in detail alpha ventus is the first offshore wind farm that has been realised in Germany. It was already consented in The grid connection was built starting in Construction at sea started in 2008 with the grid connection and the installation of the substation. Construction work had to be postponed many times because of bad weather leading to serious delays. The charter of suitable vessels was another important issue with alpha ventus. One of the largest and most expensive vessels on the market had to be used because others were not available at the time. The wind farm is in operation since fall 2009 and was officially inaugurated in April The offshore wind farm Borkum West II is owned by the utility consortium Trianel consisting of 33 small and medium-sized energy suppliers. It will be realised in two phases. Apart from the suppliers for the nacelle, large parts of the contracts have been awarded to market participants in the German northwest region. Baltic 1 is the first commercial wind farm in the German Baltic Sea. Compared to alpha ventus and especially to most of the other planned projects in Germany the wind farm is relatively small. It is a good project to gain experience and continue with the realisation of larger projects afterwards. On September, the second, the installation of the 21 turbines was finished well in advance to the planned schedule. A major problem is the (still) remaining grid connection. BARD Offshore 1 is the first commercial offshore wind farm in the German North Sea. The BARD- Group is the only player that offers turn-key projects in Germany. For this purpose it has built up crucial capacities like an installation vessel and a service vessel. However, BARD lags behind its previously intended schedule to a significant degree mainly because of different accidents and bad weather. The wind farm is intended to be inaugurated in late The first clus- Projects 29

30 Foundations Areva Wind M Sif Group: Pipe elements for tripods (Roermond, NL) 2 Aker Solutions: Assembly tripods (Verdal, NO) REpower 5M 3 BiFab: Production jacket foundations (Methil, SCO) 4 EEW: Piles for foundations (Rostock, DE) 5 ICH Seasteel: Production templates (Montrose, SCO) Tower 6 Ambau: Production tower sections (Bremen, DE) Nacelle Areva Wind M Siempelkamp Giesserei: Engine Deck (Krefeld, DE) 8 ABB: Production generators (Helsinki, FI) 9 ABB: Production converter (Baden, CH) 10 Pauwels Trafo: Transformers (Mechelen, BE) 11 Renk: Production gearbox (Augsburg, DE) 12 Ferry-Capitain: Hollow shaft (Joinville, FR) REpower 5M 13 Winergy: Production gearbox (Voerde, DE) 14 Walzengiesserei Coswig: Hollow and rotor shafts (Dresden, DE) 15 Woodward: Production converter (Kempen, DE) 16 AKI Power Systems: USV-systems (Rheinheim- Georghausen, DE) 17 Minimax: Fire extinguishers (Bad Oldeslohe, DE) 18 Production transformers (Regensburg, DE) Rotor/star Areva Wind M PN Rotor: Production rotor blades (Stade, DE) 20 Friedrich Wilhelms Hütte: Hub (Mühlheim a.d.r., DE) REpower 5M 21 LM Wind Power; PowerBlades: Rotor blades (Kolding, DK; Bremerhaven, DE) Substation/grid connection 22 AREVA Energietechnik: Production substation (Dresden/Bremen, DE) 23 Weserwind: Production Jacket-Constructions for offshore substation, final assembly topside (Wilhelmshaven, DE) 24 NSW: Cable production and laying (Nordenham, DE) Assembly/base port 25 Preassembly nacelles (Bremerhaven, DE) 26 Base port for the installation (Eemshaven, DE) Illustration 20: alpha ventus - production sites of suppliers (Source: wind:research) Foundations 1 EEW: Production monopiles (Rostock, DE) 2 Bladt Industries: Production transition pieces (Aalborg, DK) Nacelle 3 Siemens: Production nacelle (Brande, DK) Rotor/star 4 Siemens: Production rotor blades (Aalborg, DK) Substation/grid connection 5 Weserwind: Production substation (Bremerhaven, DE) 6 Coating of the substation (Wismar, DE); further transport to Rostock (base port) 7 nkt cables: Production export cables (Köln, DE) 8 Nexans: Supply of trenching system (Halden, NO) Preassembly 9 Preassembly turbines (Nyborg, DK) Assembly/base port 10 Base port for foundations (Rostock, DE) 11 Service port (Barhöft, DE) Illustration 21: Baltic 1 - production sites of suppliers (Source: wind:research) 30 Projects

31 Foundations 1 Sif-Group: Production elements (Roermond, NL) 2 CSC: Supporting crosspiece (Cuxhaven, DE) Tower 3 Ambau: Production tower sections (Bremen, DE) Nacelle 4 BARD: Components production/assembly (Emden, DE) 5 SHW Casting Technologies: Production of engine deck, hub and main shafts (Königsbronn, DE) 6 Voith Turbo: Production gearboxes (Crailsheim, DE) Rotor/star 7 SGL Rotec: Production rotor blades (Lemwerder, DE) Substation/grid connection 8 Harland & Wolff: Production foundation (Belfast, IR) 9 Western shipyard: Production topside (Klaipeda, LT) 10 NSW: Production of array cables (Nordenham, DE) Preassembly 11 Harland & Wolff: Marriage of foundation & topside, substation (Belfast, IR) Assembly/base port 12 Nacelle and rotor star (Eemshaven, NL) Illustration 22: BARD Offshore 1 - production sites of suppliers (Source: wind:research) Foundations 1 JV: HOCHTIEF Construction/GeoSea/Nordsee Nassbagger- und Tiefbau: Production of concrete monopiles (Sassnitz - Mukran, DE) Nacelle 2 Siemens: Production nacelle (Brande, DK) Rotor/star 3 Siemens: Production rotor blades (Aalborg, DK) Substation/grid connection 4 Weserwind: Construction and equipment of substation (Bremerhaven, DE) 5 Draka Offshore: Array cables (Drammen, NO) 6 NSW: Production of export cables (Nordenham, DE) Assembly/base port 7 Service base (Barhöft, DE) 8 Base port turbines (Nyborg, DK)* 9 Base port foundations (Sassnitz - Mukran, DE) *Estimated base port (cf. Baltic 1) Illustration 23: Baltic 2 - production sites of suppliers (Source: wind:research) Projects 31

32 Foundations 1 Weserwind: Production of tripod foundations (Bremerhaven, DE) Nacelle 2 Siempelkamp Giesserei: Mainframe (Krefeld, DE) 3 ABB: Production generators (Helsinki, FI) 4 ABB: Production converter (Baden, CH) 5 Pauwels Trafo: Production transformer (Mechelen, BE) 6 Renk: Production gearboxes (Augsburg, DE) 7 Ferry-Capitain: Production hollow shafts (Joinville, FR) 8 AREVA Wind: Assembly of nacelle (Bremerhaven, DE) Rotor/star 9 PN Rotor: Production rotor blades (Stade, DE) Substation/grid connection 10 NSW: Production of array cables (Nordenham, DE) 11 Weserwind: Production and equipment of substation (Bremerhaven, DE) Assembly/base port 12 Base port (Bremerhaven, DE) Illustration 24: Borkum West II - production sites of suppliers (Source: wind:research) 32 Projects

33 5 Branch structure In the following module the branch structure within the German offshore wind energy branch will be depicted. Starting with a description of each of the steps of the value-added chain an overview of important market participants within each step is provided. A further focus of the module is a description of the value-added steps within logistics for the offshore wind energy and the engineering and design structure for offshore wind energy. 5.1 Value-added chain: Offshore wind energy The following illustration shows the first two tiers of the value-added chain of the offshore wind energy. Professional services is relevant to more than one value-added step and therefore covering the whole value-added chain Description of the value-added steps and overview of the market participants In the following section a description of the valueadded steps and an overview of market participants will be given according to the value-added chain. Each subsection represents a value-added step (tier 1) in accordance to the value-added chain in section 5.1. The following tables are further structured according to the value-added steps of tier Development and consenting Environmental impact assessment (EIA): For offshore wind farms with more than 20 turbines an environmental impact assessment (EIA) is a prerequisite for the consenting (see module 1). Companies processing an EIA need to have respective qualifications. Professional services (RD&D and testing) Tier 1 Development and consenting Turbine and component manufacture Balance of plant manufacture Installation and commissioning Operation and maintenance Environmental impact assessment Offshore wind turbines Subsea cables (export) Wind farm construction facilities Maintenance Tier 1 Wind farm design Blades Subsea cables (array) Turbine and foundation installation Operations Survey vessel operation Castings and forgings AC substation electrical systems Subsea cable installation Onshore facilities Gearbox, large bearings and direct drive generators DC substation electrical systems Civil engineering and construction management Transport and accommodation Towers Concrete foundations Steel foundations Illustration 25: Value-added chain according to BVGassociates (Source: BVGassociates, Illustration by wind:research) German companies are involved in any of the valueadded steps shown above. Since companies in some countries can offer lower prices (e. g. shipyards) or have a higher level of know-how (e. g. offshore oil & gas industry) parts of the awards go to foreign companies. The BSH (cf ) has published a standard assessment concept to guarantee minimum standards. According to the concept EIA include: Basic data collection (preliminary assessment): Characterisation of planned area in order to define assessment programme and reference areas for the specific protective goods Branch structure 33

34 Basic data collection (status quo assessment): Investigation prior to the construction phase in order to characterise the natural status quo in the planned area and the reference areas Monitoring of construction phase: Investigation during the construction phase in the planned area and the reference areas in order to record the respective influences Monitoring of operation phase: Investigation during the operation phase in the planned area and the reference areas in order to record the respective influences EIA are usually awarded by the project developer. Wind farm design: The wind farm design is processed by the project developer. Depending on the size and know-how of the project developer other experts are consulted for example with regards to the engineering of the foundations, the optimum turbine model, the turbine layout etc. Soil investigations, the EIA and other preliminary assessments can significantly alter the wind farm design up to the construction phase. Financing and insurance issues can also have a large impact on the wind farm design (cp. Borkum West II ). Project developers can be different types of companies. The following illustration shows the market share according to type of company: Survey vessel operation: Soil investigations are awarded by the project developer in order to collect data for the EIA and the wind farm design. Usually, the survey vessels are owned by respective companies and organisations but some project developers bought their own survey vessels. The German project developer Energiekontor bought a vessel and awarded the ship management to RS Research Shipping GmbH in order to investigate the seabed for the offshore wind farm Borkum Riffgrund West. After three years the vessel was sold again. Directly before the start of the construction soil investigations are performed in order to detect and remove objects from the seabed like shipwrecks, unexploded ordinance devices or others. Market share of different types of project developers of wind farm in operation, under construction, consented and in a conceptual stage according to installed capacity in Germany 2.1% 23.9% 15.7% Utility 11.3% Fonds/banks International utility Project developer Corporate groups 47.0% Illustration 26: Market share of different types of project developers of wind farms in operation, under construction, consented and in a conceptual stage according to installed capacity in the Germany (Source: wind:research) 34 Branch structure

35 Overview of market participants The following table provides an overview of the respective market participants: Maket participants Likely future capability Environmental impact assessment Wind farm design Survey vessel operation Proven capability (sample) oecos Institut für Angewandte Ökosystemforschung MariLim BioConsult SH biola Germanischer Lloyd Garrad Hassan Mott MacDonald DHI Wasser & Umwelt wpd PNE Wind N-prior energy KEMA Energiekontor InnoVent IMS Deutsche Offshore Consult PMSS Warnow Design & Technology Windreich Fugro Seacore GEO GEO-ENGINEERING RF Forschungsschifffahrt Hempel Shipping Table 8: Market participants: Development and consenting (Source: wind:research) Turbine and component manufacture Offshore wind turbines: There are only few turbine manufacturers that are active within the offshore wind energy but more manufacturers plan to enter the European market. These include for example Alstom, Gamesa, Goldwind, Nordex, Sinovel. Germany s largest wind turbine manufacturer (Enercon) is not active on the offshore wind energy market until now but there are rumours, that the company will enter the market soon. There are still some issues (e. g. sealing against weather conditions, corrosion, weight) remaining regarding the successful implementation of the gearless turbine for the offshore wind energy. Germany has a leading position within the five or more MW sector until now (Areva Wind, BARD, REpower). Other manufacturers like GE Energy, Siemens and Vestas are currently developing similar turbines. Especially Siemens and Vestas will probably have quite an influence on the market. Their share of the offshore wind energy market at the moment is about 90% of the installed capacity. It is expected, that they will continue to be very popular among customers. Market share of offshore turbine manufatures (cumulated, according to number of turbines) Areva Wind BARD Blue H Enron Wind GE Energy Ned Wind NEG Micon Nordex NordTank REpower Siemens Vestas Wind World WinWind Illustration 27: Market share of offshore turbine manufacturers at the end of 2010 (Source: wind:research) Branch structure 35

36 Most offshore wind turbine manufacturers rely on a multitude of component suppliers. Sometimes, they bought large shares of respective companies or acquired the whole company (e. g. Siemens/Flender Guss, Areva Wind/PN Rotor). If the components are supplied by other manufacturers, the turbine manufacturers usually have more than one supplier in order to minimise dependency and avoid waiting times. The following table gives an exemplary overview of suppliers for offshore wind turbine manufacturers. Nordex is included because of concrete plans to enter the offshore market. Although the different components of the nacelle are supplied by external companies, the assembly is done by the turbine manufacturer and therefore the fields in the following table are marked as such. Blades: Rotor blades form about 20 percent of the overall turbine costs. The production, as it is performed today, is very work-intensive. Only few rotor blade manufacturers have automated their production so far. In the future there will be a much higher degree of automation in the industry resulting in a decrease of the components costs. There are only few independent rotor blade manufacturers at the market. Most belong to a turbine manufacturer (e.g. REpower Powerblades, see also appendix: Company profiles). Larger turbine manufacturers (e.g. Siemens, Vestas) produce their blades mostly in-house. There will be a few new market players in the future. Especially aircraft construction companies are possible new market participants (cp. EADS). Aircraft construction companies reducing their production sites sometimes sell their sites to rotor blade manufacturers giving their former employees an opportunity to keep their job (e. g. EADS Defence & Security SGL Rotec). Since rotor blades have a significant influence on the turbine s performance, manufacturers invest a lot of time and money in RD&D. Castings and forgings: Most of the casting and forging work is done by independent companies that usually serve more than one branch. Usually wind turbine manufacturers have entered into long-term framework agreements. Some of the turbine manufacturers have their own casting and/or forging lines or have acquired respective companies to secure a steady supply. The increasing size of offshore wind turbines and the Company Tower Areva Wind Ambau Ferry-Capitain Bard Ambau Nordex* N. s. N. s. REpower Siemens Ambau Siemens, Ambau Vestas Vestas Vestas Nacelle Main shaft Gearbox Genarator SHW Casting Technologies Walzengießerei Coswig Renk, Moventas Winergy, Voith Turbo Turbine will be gearless ABB Winergy Hub Friedrich Wilhelms Hütte SHW Casting Technologies N. s. N. s. N. s. Winergy VEM N. s. N. s. Winergy ABB Hansen, Winergy Siemens (Flender Guss) Rotor blades PN Rotor SGL Rotec LM Glasfiber, Powerblades Siemens SSB Duradrive Vestas Vestas Key: Offshore Onshore On- and offshore *Plans to develop offshore turbines Own production/ production in-house External processing Table 9: Examples of suppliers for turbine manufacturers (Source: wind:research) 36 Branch structure

37 respective parts pose requirements (size of blacksmith s shop etc.) that only few companies can fulfil until now. The hub adaptor for a current six MW turbines already weighs about 13 tons. It is 2.5 meter high and has a diameter of around 3.8 meter. The complete hub for a 4.5 MW turbine weighs about 30 tons. Gearbox, large bearings and direct drive generators: Smaller turbine components are usually supplied by companies that serve other industries as well. Only few manufacturers have specialised on wind energy (e.g. winergy). In the future there will be more specialised companies since wind energy requires a large amount of specific know-how due to dynamic loads caused by changing wind speeds and directions. The components require very precise processing and much know-how so that market entry barriers are comparably high. Towers: Market entry barriers are relatively low, although towers require many supporting structures (ladders, flanges etc.). Struggling shipyards are among those companies that see a future in tower (and foundation) manufacture in Germany. Towers are usually ordered by the turbine manufacturer but in the future this might change in favour of an integrated foundation/tower concept. Some tower manufacturers like AMBAU or SIAG already offer foundation structures as well, but joint ventures seem to be likely in the future to supply integrated concepts. Overview of market participants Maket participants Offshore wind turbines Blades Castings and forgings Gearbox, large bearings and direct drive generators Towers Proven capability (sample) Areva Wind Repower Siemens Vestas BARD LM Wind Power Siemens Vestas Powerblades PN Rotor SGL Rotec Castings: Buderus Spezialguss Eisengießerei Torgelow EMDE HegerFerrit Friedrich Wilhelms-Hütte Meuselwitz Guss Siempelkamp Silbitz Guss Vestas Forgings: Georgsmarienhütte Richter Maschinenfabrik SIEGTHALERFABRIK Gearboxes: Bosch Rexroth Eickhoff Hansen Renk Voith Turbo Winergy Large bearings: FAG Liebherr Rothe Erde SKF Direct drive generators: Converteam Siemens Ambau EMDE SIAG Skykon Vestas Likely future capability Nordex GE Energy Clipper Nordex Manufacturers of onshore towers can easily enter the market for offshore towers (e. g. KGW Schweriner Maschinen- und Anlagenbau, Reuther) Table 10: Market participants: Turbine manufacture and supplier of component manufacture (Source: wind:research) Balance of plant manufacture Subsea cables (export): Cable production is highly dependant on raw material availability and prices because of the high amount of copper used within the cables. Production capacities need to be in coastal areas because of the high weight of the cables (up to about 50 tons per km). There are only few established market participants Branch structure 37

38 (cp. Table 11) in this sector but new entries have been made recently. Manufacturers from the telecommunication sector might as well enter the market in the future. Due to the high demand for export cables resulting from expansion plans in Europe and the limited number of suppliers a shortage of export cables is anticipated. Subsea cables (array): Cable production for inter-array cabling is roughly as dependant on raw material availability and prices as export cabling. Array cables are smaller in diameter but there is a higher demand in terms of kilometre. Production capacities need to be in coastal areas for the cable-laying vessels to load their cargo. There are much more companies capable of producing array cables than export cables since they have a much smaller capacity. Because of the higher number of suppliers a shortage for array cables is not to be expected. AC substation electrical systems: AC technology is suitable for shorter distances and is therefore used in most of the existing offshore wind farms. It is less expensive than DC substation electrical systems. There are more suppliers than for the DC technology and the market is therefore more competitive resulting in advantages for the customer. DC substation electrical systems: The technology is more complex, reducing the number of suppliers. Because of only few suppliers there is not much competition leading to higher prices. DC cables can transport power over larger distances and with a higher capacity. Therefore DC technology will be used for future projects. In Germany many projects will be realised utilising the DC substation electrical systems because of high distances due to the wadden sea. The grid connection of more than one wind farm at a time in order to reduce the impact on the marine environment further contributes to the use of DC technology. Little competition and the future demand make the entry of new market participants likely. Concrete foundations: So far, concrete foundations have been used primarily in the Baltic Sea (Rødsand, Lillgrund etc.). Thornton Bank in Belgium is the only example of concrete foundations within the North Sea. The production of concrete foundations results in a high demand of manpower. Production of concrete foundations is not very dependant on raw material availability and prices. Instead, large production and storage facilities at harbours near the wind farm site are needed. Many building/construction companies are able to construct concrete foundations. The market entry barriers are therefore not very high but there is comparatively little demand, because most project developers rely on steel foundations. Steel foundations: Most foundations in the offshore wind energy have been steel monopiles so far. With deeper water and larger turbines there will be more and more other structures like jacket, tripile or tripod foundations. Piles (monopiles, foundation piles) are less complex structures in comparison and therefore the market entry barriers are not as high as for foundation structures but the increasing size is limiting the number of capable suppliers. Struggling shipyards in Germany have the know-how and the facilities to enter the market. Tower manufacturers usually have the required know-how as well making them likely new market participants especially for monopiles or transition pieces. 38 Branch structure

39 Overview of market participants Maket participants Subsea cables (export) Subsea cables (array) AC substation electrical systems DC substation electrical systems Concrete foundations Steel foundations Proven capability (sample) ABB Draka Nexans Norddeutsche Seekabelwerke Prysmian LABB Draka Nexans nkt cables Norddeutsche Seekabelwerke Prysmian ABB Alstom Siemens Siemens ABB There are no concrete foundations within the offshore wind energy in German waters so far. Aker BiFab Bladt CSC (BARD) EEW H&W SIAG SIF/Smulders Skykon Weserwind Likely future capability Alstom Züblin/Strabag Hochtief G & G international HDW Table 11: Market participants: Balance of plant manufacture (Source: wind:research) Installation and commissioning Wind farm construction facilities: Within the burgeoning offshore wind energy industry there is a high demand of suitable ports providing construction and storage facilities. At the moment there are only few facilities suitable for the industry s requirements. Many ports (e.g. Bremerhaven, Cuxhaven, Rostock, Brunsbüttel) prepare themselves for the upcoming boom of the offshore wind energy. A national concept for the upgrading of seaports is discussed at the moment. Small-scale concepts within federal states (e.g. Lower Saxony, Schleswig-Holstein) already exist. Illustration 29: Potential base and service ports in Germany (Source: wind:research) Turbine and foundation installation: There is a high demand of turbine and foundation installation vessels (cp. module 1). Currently, there are few installation vessels specialised on the offshore wind energy. A lot of vessels are built mostly in foreign shipyards (e. g. Korea, Poland) at the moment. Only recently, German shipyards have won respective tenders (e. g. Peene Werft). There are few companies specialised in chartering vessels and crew specialised on the offshore wind energy. Because of the high demand chartering rates are high (roughly between 60,000 and 120,000 Euro depending on size, season and experience of the crew for example) and vessels are continuously in operation with very few interruptions between contracts. Subsea cable installation: Large (and increasing) distances between ports and offshore wind farms require suitable cable-laying vessels with large cable carousels. Smaller vessels are needed for the array cables but the cable-laying process is much more complex and harder to coordinate. The growing offshore wind energy in Germany and other European countries will require additional cable-laying vessels of all sizes and respective personnel in the future. Additional players and long-term charter or acquisition of cable-laying vessels by cable manufacturers will ease the shortage of supply. Civil engineering and construction management: Construction of offshore wind farms is either processed via EPCI-contracts or multiple supplier con- Branch structure 39

40 tracts (MSC) Operation and maintenance EPCI: The EPCI-contractor is responsible for the complete construction of the offshore wind farm taking all the risk (incl. weather windows etc.) under previously defined conditions. Due to the higher risk and coordination effort MSC: of the contractor, the total price is higher. The activities of multiple contractors need to be coordinated by the project developer. Different contracts have to be defined very carefully in order to have a clear understanding of the responsibilities. Risks are spread on many companies with a significant proportion remaining at the project developer. Usually, the total price is lower since there is more competition and contracts can always be awarded to the cheapest contractor. Overview of market participants Maket participants Wind farm construction facilities Turbine and foundation installation Subsea cable installation Civil engineering and construction management Proven capability (sample) Aarlborg Bremerhaven Cuxhaven Eemshaven Emden Nyborg Rostock A2Sea BARD DEME GeoSea Jack-Up Barge Smit Heavy Lift RS Diving Contractor Peter Madsen Rederi WindFarm- Base Ballast Nedam Hochtief Construction Likely future capability Brunsbüttel Sassnitz Beluga Hochtief Offshore MPI Offshore RWE Offshore Logistics Company Prysmian Visser & Smit Bilfinger Berger Fluor MT Højgaard Van Oord Table 12: Market participants: Installation and commissioning (Source: wind:research) Maintenance: Offshore wind energy in Germany is a very young industry with currently only one wind farm in full operation and therefore little demand of maintenance services. Within warranty turbines are maintained by the turbine manufacturer. Independent companies can be awarded afterwards. This procedure is mainly influenced by the insurance conditions. Only few companies have specialised in offshore wind energy maintenance, so far. One recent example is All4offshore, a joint venture between a port operator/logistics company (Schramm Group) and a wind energy project developer also offering operation and maintenance services for their wind farms (wpd). The company combines important knowledge of port operation, marine logistics and wind energy and there is a comparably secure demand for their services due to the connection to the wind farm developer. Onshore maintenance companies have the basic knowledge required but need to have extra qualifications (e.g. safety training, different processes, tools, technologies). Many new market participants are expected (see above). Operations: Wind farm operation includes for example the monitoring of the turbines onsite and from the operations base, scheduling maintenance, managing customer and supplier interaction and handling insurance issues. Wind farms are usually operated by the owner or the project developer of the wind farm. The project developer knows the wind farm best, especially if he was the EPCI-contractor and is usually well integrated into a network of industry-specific companies. On the other hand, the wind farm owners can save money and gain knowledge by operating the wind farm themselves. Onshore facilities: Since service time is crucial, service ports for operation and maintenance are comparably small ports at the nearest possible location (cp. Barhöft Baltic 1). Service ports need to have sufficient storage areas for smaller spare parts, crew accommodation and a 40 Branch structure

41 vessel berth or a helicopter platform. There are a lot of ports at the German coast generally suitable as a service port for the offshore wind energy. Helgoland (Germany s only deep-sea island) is among the discussed sites because of the proximity to various offshore wind farms. Transport and accommodation: Transport of spare parts and crew members is usually processed by service vessels. At some weather conditions or in case of an emergency, helicopters are used. During construction, crew members usually stay onboard the installation vessel or at the offshore substation. New accommodation models (e.g. permanent hotel vessels, accommodation at the substation) will be investigated for wind farms far offshore. (e.g. Fraunhofer IWES, ForWind) in Germany. Some schools of higher education included (offshore) wind energy into their curricula (e.g. Bremerhaven, Oldenburg). Especially in coastal areas there are full-scale testing sites for offshore wind energy turbines (e.g. Bremerhaven, Cuxhaven, Emden, Rostock) on- and nearshore. alpha ventus, the first offshore wind farm is proclaimed as a test field. The operating consortium is called German Offshore Test Field and Infrastructure GmbH. RAVE - Research at alpha ventus is supposed to provide crucial information about operation of offshore wind farms and the influence of offshore wind energy on marine ecosystems. Overview of market participants Overview of market participants Maket participants Maintenance Operation Onshore facilities Transport and accommodation Proven capability (sample) Areva Wind BARD REpower Siemens EWE BARD EnBW Barhöft Emden Norden/Norddeich BARD Bugsier-, Reederei- und Bergungsgesellschaft FRIKING momac WindFarm- Base Likely future capability All4offshore Other maintenance companies active in the onshore market. Project developers Onshore operators that extend their activities offshore Various facilities in Germany usually closest to the wind farm Table 13: Market participants: Operation and maintenance (Source: wind:research) Professional services RD&D and testing: A lot of research, development and demonstration is processed by the respective manufacturers. There are some independent research centres and initiatives Maket participants RD&D and testing Proven capability (sample) Research and Development: Deutsche WindGuard (wind tunnel, Bremerhaven) Fraunhofer IWES ForWind Schools of higher learning (e. g. Bremerhaven, Elsfleth, Oldenburg, Stuttgart) Turbine and component manufacturers Full-scale test sites: Bremerhaven Cuxhaven Emden Rostock Table 14: Market participants: Professional services (Source: wind:research) Dismantling Likely future capability A prerequisite for the approval of offshore wind energy turbines is a guarantee of the wind farm operator to completely dismantle the turbines and restore the construction site to the original condition after completion of the wind farm s lifetime. During the operation of the offshore wind farm the operator is obstructed to put money in a fund to be capable to dismantle the turbines regardless of the future financial situation. In the course of repowering measures a dismantling of the old turbines is necessary. Since the new turbines are larger and probably weigh more the old founda- Branch structure 41

42 tions have to be exchanged as well. If the capacity of the wind farm exceeds the capacity of the substation it has to be enlarged accordingly or a second substation has to be build within the wind farm. Repowering of offshore wind farms will be much more complex than onshore. As of now, it can not be said which market participants will be active in the dismantling of wind energy turbines. It will probably be the same companies that are engaged in the construction of offshore wind farms, since the same equipment and experiences are needed. Some specialised companies might be needed for some chores like the dismantling of the scour protection. 5.2 Value-added chain: Logistics for the offshore wind energy (part of Installation and Commissioning) The following illustration shows the value-added chain within the offshore wind energy combined with the first level of the respective logistics value-added chain. For sea transport and installation, the second level is depicted as well. The highlighted value-added steps will be described and a sample of the respective market participants will be given on the following pages Description of the value-added steps Procurement: Onshore supply of components to the ports is processed via road, railway or inland waterways. Large components (e. g. rotor blades, tower segments) are transported from the production site to the port via inland waterways most of the times. Regarding the large sizes of offshore wind energy turbines today, assembly and production of components (foundation, tower. nacelle, rotor blades etc.) can only take place within or near sea ports. Curve radii and maximum clearance of bridges on the access roads and the enforcement of access roads are important limiting factors for onshore transportation. As indicated by the following illustration, the inner curve radius needs to be 35 meter at least with a radius of at least 50 meter clear of obstacles for (onshore) tower segments. Minimum clearance for the tower segments is 5.5 meter (height) to five meter (width). Rotor blades for the offshore wind energy are longer than the tower segments so that they are even harder to handle than tower segments. Professional services (RD&D and testing) Development and consenting Turbine and component manufacture Balance of plant manufacture Installation and commissioning Operation and maintenance 1. Level Procurement Production Assembly Sea transport/installation Service/spare part logistics Disassembly/sea transport 2. Level Port logistics Handling Sea transport Installation Supply Chain Managament Offshore wind energy Logistics Focus of the study Illustration 29: Value-added chain: Logistics for the offshore wind energy (Source: wind:research) 42 Branch structure

43 Quad formation T-formation Y-formation V-formation Circle formation Illustration 30: Possible formations of SPMT for the transport of large and heavy components (Source: Scheuerle) Example rotor blade (BARD 61): Length Ca. 60 meter Reference diameter Four meter Maximum blade depth Ca. six meter Weight 28,5 tons Port logistics: Whole components are transported within ports at quayside or in the harbour basin. SPMTs (self-propelled-modular transporters) have proved to be useful tools for transportation at quayside. The SPMT are remote-controlled, since they do not have a driving cab due to the limited height of the vehicles. The transport modules are either selfpropelled or towed by another SPMT forming a group of SPMT (see below). They can be combined in many ways, giving companies a flexible tool to transport large and heavy components like foundations, substation platforms or nacelles. When combined to a larger group, the carrying capacity increases significantly. Illustration 30 shows a few examples of possible formations: Usually, heavy duty roads or platforms are needed for the transportation or storage of components of offshore wind energy turbines. Many ports in Germany are not equipped accordingly as of now but some ports are involved in respective construction projects (e. g. Bremerhaven, Cuxhaven). Illustration 31 shows a map of the offshore terminal in Cuxhaven: containers. A clear advantage of transportation via the port basin is that no heavy duty roads are needed. This is especially important, if they do not already exist. A disadvantage is that the components have to be produced directly at quayside or a combination of SPMT and port feeder barge has to be used. Handling: Handling of components from quayside to the transport or installation vessel can be performed in three different ways: RoRo-Ramp: The components are driven onboard by SPMT (see above). Therefore stilts are needed below the components to enable the operators to put them down. SPMT help to reduce the risk of damaging the components since the number or lifts is reduced to a minimum. On the other hand components can be stored more efficiently using cranes (e. g. piling components on top of each other, storing tower segments in an upright position). Components can be transported via the harbour basin as well. For this purpose a port feeder barge for the transportation of rotor blades with a length of 71 meter and a width of 21 meter was engineered. In addition to rotor blades, it can also load other cargo like Illustration 31: Map of the offshore terminals in Cuxhaven (Source: wind:research on the basis of cuxhaven-fotos.de) Branch structure 43

44 Assembly completely onshore Assembly completely/partly offshore Mono-vessel-concept Feeder-vessel-concept A. Supply/manufacture of components in a port (consolidation) B. Assembly of all components (nacelle, rotor star and tower) inside the port C. Transport of the plant to the offshore wind farm and installation A. Supply/manufacture of all components in one port (consolidation) B. Loading of the installation vessel (Floating crane, Jack-Up-Barge) with components for multiple plants B1 Rotor and nacelle separated (hub connected to nacelle) B2 Nacelle with two rotor blades Bunny-Ear-Concept B3 Complete rotor star A. Supply of components from one or multiple ports to the installation vessel B. Transport vessel, pontoons supply installation vessel with components C. Installation vessel, Jack-Up-Barge is supplied with components, processes the final assembly and is used only for the installation C1 Jack-Up-Barge C2 Floating crane C Transport, final assembly and installation of the plant at site C1 Jack- Up- Barge C2 Floating crane Assembly completely onshore Assembly completely/partly offshore Illustration 32: Overview of different installation concepts for the offshore wind energy (Source: wind:research) Crane (mobile or fixed) at quayside: A heavy duty crane is needed within the port. Offshore wind energy components require a lifting capacity of currently up to tons. Cranes can be combined performing tandem lifts and thereby maximising the respective lifting capacity. Crane of the vessel: The crane of vessels used for the installation of foundations or turbines has the required lifting capacity and can be used to load the components onboard. The components need to be placed within reach of the installation vessel s crane. SPMT are usually needed for this purpose. Sea transport: Different types of vessels can be used for sea transportation: Transport vessels: Self-propelled; large dimensions and much loading capacity is needed for the offshore wind energy Pontoons: Without own propulsion; simple floating platform that is towed by tug-boats; comparably cheap to build or charter Installation vessels: See below for a descrip- tion; used in some installation concepts for component/plant transportation At the moment there are various installation concepts as illustrated above: Up to now, tripod, tripile and jacket foundations are primarily transported utilising feeder concepts. Foundations usually have an installation cycle separated from the turbine installation cycle. Illustration 33 shows the concept for the foundation and turbine installation cycle that is favoured at the moment: The required areas within the port in addition to the production sites decrease synchronously to the extent of preassembly. Therefore, comparably little space is needed for foundations, whereas much more space is needed for the preassembly of rotor stars or nacelles (bunny-ear-concept). Installation: Many different types of vessels are used for the installation of offshore wind farms. The most important are described below: 44 Branch structure

45 Assembly completely onshore Mono-vessel-concept Assembly completely/partly offshore Feeder-vessel-concept Signifcance of the production site s proximity to the windfarm Required area for assembly in the port/production site High significance Low significance Low significance Very large areas required Very large areas required Comparably small areas required Favoured concept: Installation/cycle turbines Favoured concept: Installation/cycle foundations Illustration 33: Significance of distance to the wind farm site and required space according to installation concept (Source: wind:research) Flexible fall pipe vessel: Used for the preparation of the seabed Stones are transported from the ship s body via conveyors and lowered to the seabed by a flexible fall pipe A remote-controlled vehicle at the end of the fall pipe allows for the exact positioning of the stones Seabed preparation is the usual method of scour protection Jack-up-barges: Self-elevating; provide a working platform mainly independent from swell Limitations with regards to swell and wind speed result mainly from the strong forces emerging at the legs in a jacked-up position Future jack-up-barges will be used more and more as a transport vessel due to the increasing loading capacity When used for transportation, Jack-up-barges can substitute quayside cranes because they inevitably have the required lifting capacity Nine Vestas turbines (3 MW, including towers and rotor stars) is the record for most transported wind energy turbines at one time so far Future vessels are designed to transport about six 5 MW turbines or up to 12 turbines with a capacity of about 3 MW The crucial advantage is that assembly does not need to take place offshore within very limited weather windows. A major disadvantage is the high dependence on swell and wave height. Some floating cranes can reduce this dependence by filling parts of the body with water, but jack-up-barges remain superior with regards to swell and wave height dependency. Installation vessels able to operate at wave heights of up to three meters and wind speeds up to 21 meter per second have an availability of 88 percent over the year in Germany. Vessels that operate at wave heights up to 1.5 meters and wind speeds up to 14 meter per second only have an availability of about 54 percent. The following illustration shows the distribution of the respective combinations of wave height and wind speed: Floating cranes: Some installation concepts include the transportation and installation of fully assembled offshore wind energy turbines by floating cranes Illustration 35: Weather window for different combinations of wave height and wind speed (Source: wind:research on the basis of PTS - personnel transfer system GmbH) Branch structure 45