Latest Offshore Developments in Sweden Conference Copenhagen Offshore Wind, Offshore Wind Markets Myths and Realities Bella Center, 27 October 2005 Kenneth Averstad, Vattenfall AB
Renewable Energy within Vattenfall AB 2005 = Wind power plants, 60 GWh Hydro Power, 33 TWh Bio fuel, 320 GWh electricity -- --, 3300 GWh heat Map from Vattenfall s Corporate Social Responsibility Report (vattenfall.com) 2
Intensive focus on renewable energy Vattenfall is to take a leading role in the development of energy production from renewable energy sources New energy plants Existing energy plants Wind Hydro Biomass 3
Vattenfall s Offshore Wind Power Stations 2006 (preliminary) Horns Rev (60%), 360 GWh Utgrunden 1 + + Yttre Stengrund, 60 GWh Kentish Flats, 270 GWh Map from Vattenfall s Corporate Social Responsibility Report (vattenfall.com) 4
180 160 TWh Sweden. Electricity generation (TWh / year) Sweden. Electricity generation (TWh / year). Export 140 120 Import Fossil + Bio fuel 100 Nuclear power 80 50% line 60 40 Hydro power 20 0 2000 2001 2002 2003 2004 5
Background. Windpower Development in Sweden. 500 MW Windpower Development in Sweden (MW) 461 400 300 El. Certificates Environmental Bonus 200 100 Investment support 2 0 Investment support 1 1991 1997 2003 2005 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 6
12 10 Offshore Wind Power built in Sweden (MW / year) Windpower Development in Sweden (MW / year) " the largest offshore wind farm in the world " Utgrunden 1 10 10 Yttre Stengrund 8 6 4 2 0 Bockstigen Nogersund 0,22 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2,75 7
Offshore projects in Sweden. In Operation. * Nogersund 1 x 220 kw 1990 * Bockstigen 5 x 550 kw 1998 * Utgrunden 1 7 x 1425 kw 2000 * Yttre Stengrund 5 x 2000 kw 2001 8
Offshore projects in Sweden. Many developers, different stages. Some examples of offshore projects from the West Coast to the north parts of the Baltic Sea: * Skottarevet 28 wts * Vänern 11 wts * Lillgrund 48 wts * Kriegers Flak 128 wts * Abbekås 28 wts * Hanöbukten 30 + 40 + 53 wts * Karlskrona 22 wts * Trolleboda 30 wts * Utgrunden 2 24 wts * Kårehamn 21 wts * Klasården 16 wts * Finngrundet >100 wts * Väktaren 30 wts * Marakallen >100 wts 9
Vattenfall s Offshore projects in Sweden Some examples of offshore projects from the West Coast to the north parts of the Baltic Sea: * Skottarevet 28 wts * Vänern 11 wts * Lillgrund 48 wts ; 330 GWh * Kriegers Flak 128 wts ; 2000 GWh * Abbekås 28 wts * Hanöbukten 30 + 40 + 53 wts * Karlskrona 22 wts * Trolleboda 30 wts ; 400 GWh * Utgrunden 2 24 wts * Kårehamn 21 wts * Klasården 16 wts * Finngrundet >100 wts * Väktaren 30 wts * Marakallen >100 wts Lillgrund Trolleboda (Karlskrona) Kriegers Flak 10
Skottarevet, 28 turbines, 250-300 GWh, 2008 Developer: Triventus, Agrivind, Falkenberg Energi Falkenberg 11
Utgrunden 2, 24 turbines, 275 GWh, 2008 Pilot Project Main land Kalmarsund Öland Developer: E.ON Wind Utgrunden 1 12
Kårehamn, 11-21 turbines, 165 GWh, 2008 Kalmarsund Öland Baltic Sea Developer: E.ON Wind 13
Klasården, 16 turbines, 140 GWh, 2006 Gotland Developer: Vindkompaniet, Vestas Näsudden 14
Väktaren, 20-30 turbines, 200 GWh, 2008 Developer: Nordanvind 15
Wind park in lake Vänern, 10-11 turbines, 60-90 GWh Karlstad Developer: Regional Consortium 16
Karlskrona Windpower Offshore. 3 alternative sites. Developer: Vattenfall Utgrunden 1 Trolleboda Yttre Stengrund 17
Lillgrund Wind Power Offshore Pilot Project 48 wind turbines. Height: 115 m. 330 GWh per year. Electricity for 60,000 households. Developer: Vattenfall Lillgrund 18
Map over Lillgrund Wind Power Offshore Copenhagen Köpenhamn Dragör Saltholm Pepparholm Malmö Malmö 48 wind turbines 330 GWh 2007 Lernacken 9 km Flintrännan Öresundsbron 7 km Bunkeflostrand 7 km Klagshamn Lillgrund 10 km 14 km Skanör Höllviken 19
Kriegers Flak, 128 turbines, 2000 GWh, 2010 Developer: Vattenfall 20
Income rules on the Market for Windpower in Sweden. öre/kwh 60 40 Income decrease Electricity certificates Environmental bonus Future development issues: Surplus until 2010? Now until 2010. Extended to 2030? Larger market including Norway from 2007? Limited to 15 years per wind farm? Decreasing annually. Nothing after 2009? Income influence: 20 Electricity spot price Increasing with Carbon Trade System? 0 2003 2005 - Aug 21
Future Development of Generation Cost? How will the cost curve develop Cost drivers offshore --- water depth, distance from coast, Technological Risk Availability Risk Sea Cable (grid) Risk On land? Offshore? Our latest investment decision 1980 2002 22
Wind Power Offshore. Pilot Projects. Two of the Offshore projects was in Autumn 2004 appointed as Pilot Projects in the 1st governmental Pilot Program: * Lillgrund, 48 turbines, about 330 GWh, max 213 MSEK * Utgrunden 2, 24 turbines, about 275 GWh, max 70 MSEK A 2nd Pilot Program was in September proposed by the Government: 350 MSEK in 5 years 2007-2011 23
Difference in business culture Utilities Customers Number of turbines MW ONE plant GWh 24
Conclusions for a successful offshore expansion The time for Renewables is here. Is offshore wind competitive in the deregulated Nordic market? A long-term support system is needed for larger investments now Increased competition between suppliers The permission processes must be more effective 25
Thank You! The Lillgrund wind farm Lillgrund Offshore 26
Extra slides
New Government proposition, June 2005, about revision of the Certificate system. + Extension until 2030 (now limited until 2010) + A larger market area Sweden + Norway from 2007 - A new limitation in time per plant = 15 years Parliament decisions planned in Sweden and Norway in June 2006. + Positive for renewables, but can offshore compete? 28