An overview of offshore wind in the UK

Peter Madigan
Offshore Wind Development Manager

15th December 2009

BWEA –members

Sponsors

Over 540 Company members

Broad membership of developers, suppliers,

grid companies, financiers and service providers
BWEA | CSTP/Supergrid meeting | 15-12-2009
Why marine renewables?

• Huge energy
resource
>9m/s
• Combating
climate change 8-9m/s

>7-8m/s
• Securing UK
energy >5.5-7m/s
supplies

• Jobs and
investment
BWEA | CSTP/Supergrid meeting | 15-12-2009
Renewable Energy Targets

EU TARGET = 15% of all UK energy by 2020

In the UK this could translate to*:

10% Renewable Transport

14% Renewable Heat

30% Renewable Electricity

*Government Renewable Energy Strategy consultation scenario

BWEA | CSTP/Supergrid meeting | 15-12-2009
How big could it be?

~30% renewable electricity by 2020 could translate to*:

• Onshore wind: 14GW, ~10%

• Offshore wind: 20GW, ~19%
• Wave & tidal: 1-2GW, ~1%

UK wind (on and off shore) is currently 4 GW, = ~3%

Renewable heat and transport starting at a low base

Wind energy needs to deliver the major share

*BWEA scenario assumes capacity factors of
30% onshore and 40% offshore

BWEA | CSTP/Supergrid meeting | 15-12-2009

Pre-Budget Announcement

• All projects accredited between April 2010 and

March 2014 receive 2ROC/MWh
– More generous than original proposal
– Questions over projects building close to March 2014

• £170 million for R&D and ports infrastructure

• Industry aims to bring costs down

– Supply chain competition
– Exchange rate risk

BWEA | CSTP/Supergrid meeting | 15-12-2009

 Offshore wind Economics
4

Thornton Bank

Sheringham Shoal
Alpha Ventus
London Array
3 Greater Gabbard
Walney

Thanet
P roject C ap E x
(£M / M W )

Lely Rhyl Flats

Robin Rigg
Gunfleet Phase II
2 Tuno Knob Princess Amalia (Q7) Horns Rev II
Gunfleet Phase I
Bockstigen
Egmond LID
North Hoyle
Barrow
Blyth Horns Rev Kentish Flats
Scroby Sands
Irene Vorrink Utgrunden Nysted Lillgrund
Yttre Stengrund
1 Middlegrundden Samsø

Contract (Post 2009 Budget) Contracted (Pre 2009 Budget)

Under Construction Operational
Near-Contract (Expected) Projection (High Supply Chain Confidence)
Bubble area represents project capacity
Projection (Low Supply Chain Confidence)
0
1990 1995 2000 2005 2010 2015

Year (main contracts signed)

Costs have increased to £3.1m/MW

– Report: “Charting the right course”
BWEA | CSTP/Supergrid meeting | 15-12-2009
 Projects
Underway
Rounds 1 & 2

688 MW installed

1156 MW under construction

3442 MW consented

3420 MW in planning

BWEA | CSTP/Supergrid meeting | 15-12-2009

Round 3
• Government go-
ahead this
summer
• Crown Estate
allocation Q4
2009
• Major
expansion on
Rounds 1&2,
~25GW
 Scottish
Territorial
Waters
• Exclusivity of
sites allocated
• SEA to be
performed
• Over 6GW of
capacity
• Similar delivery
timetable to
Round 3
 UK Offshore Wind Capacity
(With supply chain limitations imposed)
4,000 20,000

Cumulative Capacity (MW)

Annual Capacity (MW)

3,000 15,000

2,000 10,000

1,000 5,000

1 0 0 1 1 1 1 2 1.1 2.2 2.3 4.1 2.3 2.4 2.3 1.4 2.7 4.2 5.6 6.5 6.8
0 0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

*Excludes Scottish Territorial Waters

BWEA | CSTP/Supergrid meeting | 15-12-2009

BVG Estimated European Installed
Offshore Wind Capacity to 2050

BWEA | CSTP/Supergrid meeting | 15-12-2009

 Major Business Opportunity for the UK

For 40GW
Approx 8000 turbines (5MW)

Service Supply

Harbours & ports Monopiles and jackets

Vessels Steel manufacture and fabrication
Operation & Maintenance Concrete
On and offshore construction Cables & transformers
Storage Bearings
Transport Castings
Training Lubricants
Divers Ancillary items

BWEA | CSTP/Supergrid meeting | 15-12-2009

 Major Business Opportunity for the UK

• Supply chain is
already expanding
• JDR cables new
facility Hartlepool
• Opened July 2009
• 100 new jobs

BWEA | CSTP/Supergrid meeting | 15-12-2009

Grid

• Onshore grid infrastructure investment is

urgently required to ensure that grid capacity is
available.

• A strategic plan is needed

for UK connection
points and capacity.

• Further interconnection with

Europe is hugely beneficial.

BWEA | CSTP/Supergrid meeting | 15-12-2009

 Thank you

Peter Madigan BWEA Offshore Wind Development Manager

p.madigan@bwea.com