Carbon Trust

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Carbon Trusts Offshore Wind AcceleratorDriving
down the cost of offshore wind
Phil de Villiers Offshore Wind Accelerator Manager
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• Our mission is to accelerate the move to a low
  carbon economy

• We cut carbon now by
• Providing specialist advice and finance to help
  organisations cut carbon
• Setting standards for carbon reduction
• We cut future carbon emissions by
• Opening markets for low carbon technologies
• Leading industry collaborations to commercialise
  technologies
• Investing in early stage low carbon companies

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In 2008 Carbon Trust assessed barriers to
offshore windOffshore wind power Big challenge,
big opportunity

• Focus of assessment
• What is required to deliver offshore wind in the
  UK?
• What does UK Government and industry need to do?

Note Report is available on our website
www.carbontrust.co.uk
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UK faces an energy gap and tough renewable energy
targetThis requires mass deployment of offshore
wind

Installed capacity, projected demand (GW),
2008-2020
of UK energy from renewables, 2005-2020
Projected peak demand
Energy gap
8x increase required
Renewables
Nuclear
Gas
Coal
2015
2010
2008
2020
2020 target
2005
2010
Source Committee on Climate Change, 2008 (based
on DECC Energy Model)
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A
Increased RDD critical for delivering cost
reduction
Weak commercial returns, high levels of public
subsidy
Stronger commercial returns, lower levels of
public subsidy
16bn
75bn
14bn
45bn
Requires major RDD programme, of which OWA is
one component
Current expectation
Optimal site availability
Cost reductions
Achievable goal
Source Carbon Trust Offshore wind power big
challenge, big opportunity, 2008
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Costs must be reducedOtherwise projects
cancelled, UK renewable targets missed
Cost per MW installed (m/MW)

• Drivers
• Rising commodity prices
• Bottlenecks in supply chain
• Complexity of sites, distance, depth
• FX rate volatility

Rhyl Flats
Robin Rigg
Burbo
North Hoyle
Gunfleet Sands
Lynn
Kentish Flats
Scroby Sands
Barrow
Year
Source Emerging Energy Research, 2009
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Offshore Wind AcceleratorObjective Reduce cost
of energy by 10 through RDD
Offshore Wind Accelerator

• 8 developers Carbon Trust
• Focusing on technologies for
• Round 2 extensions
• Round 3
• Scottish Territorial Waters
• Total budget 40m
• 10m for collaborative RD
• Up to 30m for demonstrations
• Carbon Trust funds 1/3
• Commitment to 2014
• Started October 2008

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OWA objectivesRequires very targeted RDD

• Focus on commercial outcomes
• Reduce cost of energy by 10
• Deliver innovations in time for Round 3 (2015)
• Learn from the capabilities and experiences of
  each member
• Offshore wind, oil and gas, onshore wind
• Encourage the best designers to deliver
  innovations
• Engage them on very specific challenges
• Let them keep their IP
• Look internationally, not just to UK
• Engage with other industries for technology
  transfer
• Operate responsively to member needs manage
  costs effectively

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OWA is an example of market-pull innovation
Two approaches to innovation
UK offshore wind RD customer-driven
Innovators
Market

• Research-focused
• May not meet customer needs

Technology push

• Customer-focused
• Innovators focus on main challenges

Marketpull
Offshore Wind Accelerator
Source Carbon Trust 2011
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60 of UK market is in OWA big pull for
innovatorsOWA developers have 30GW of licensed
capacity in UK waters
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Round 1
Round 2
STW Demo
Round 3
Total market
Developer
RWE
SSE
Centrica
SPR
Vattenfall
DONG
Statkraft
Statoil
Mainstream
Siemens
Fluor
E.ON
SeaEnergy
EDP
Eneco
Warwick
Fred Olsen
Masdar
EDF
AREG
8
12
6,555
14
3,750
12
2,202
24
26
1,518
5
1
6,015
12
3,983
12
1,430
16
16
5,809
12
4,185
13
1,500
26
3
5,350
11
3,600
11
1
5
20
4,396
9
3,600
11
0
2,884
6
2,406
26
2
2,408
5
2,250
7
0
2
2,408
5
2,250
7
6
0
2,360
5
2,000
6
2,000
4
2,000
6
0
3
0
4
1,985
1,733
5
5
7
20
1,809
4
1,238
3
1
16
2
3
2
3
1
7
1
7
0
2
0
7
1
OWA Stage II partners
Source RenewableUK (Jan 2010), The Crown Estate
(May 2010)
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Focus is on areas developers most able to
influence
Turbine
Yield Cost of finance
OM
IC
BoP
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Aiming to reduce impact of distance and depth on
cost
Wind speed
Distance
Depth
CoE as typicalnear-shore site
0-20
20-40
40-60
60
12-30
30-60
0-12
800-900
700-800
lt700
900
Depth (m)
Distance to shore (nm)
Wind power (W/m2)
Note Cost analysis for lt700 W/m2 wind power,
where 100 97/MWh (2008 assumptions) Source
Carbon Trust Big Challenge, Big Opportunity 2008
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Research performed within Technical Working
GroupsInnovation is provided by third-parties
Steering Committee
Carbon Trust Management Team
Wake Effects
Access
Foundations
Electrical
125 people
Technical Working Group
Technical Working Group
Technical Working Group
Technical Working Group
Innovators, designers
Innovators, designers
Innovators, designers
Innovators, designers
500 companies
OWA partners
Carbon Trust
3rd party contractors
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Many companies engaged by OWA to deliver
innovation
Wake effects
Developers
Electrical systems
OM
Foundations
Designers
Fabricators
Installers
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Two types of activity Common RD and
Discretionary ProjectsPartners opt-in to
participate in Discretionary Projects
2010
2011
2012
2013
2014
Foundations
Wake Effects
Common RD
Electrical
ATL
New area 1
New area 2
Demo proj. 1
Selected Demo proj. 2
Discretionary projects
Selected Demo proj. 3
Selected Demo proj. 4
Selected Demo proj. 5
ETC
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Some important stakeholders for OWA
Funders
OWA
RD institutes
WTG OEMs
F
A
W
E
Finance community
Innovators, designers
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OWA focuses on strengthening economics of
offshore wind
Offshore wind returns
Yield
OPEX
CAPEX
Financing costs
Access
Foundations
Electrical systems
Wake effects
Four technology areas, selected on basis of
detailed analysis of over 70 technical barriers
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Most of UK licenced capacity is in 20-60m depths
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Foundations
Round 1, 2 and 3potential installedcapacity (MW)
0-10
580
10-20
1,340
835
20-30
6,260
5,880
30-40
6,220
6,050
40-50
50-60
Round 3
Round 2
60-70
Round 1
Depth (m)
Source Crown Estate 2009
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Turbine installation rates will need to increase
dramatically Number of turbines installed per
year 2003 - 20201
Foundations
One new turbineinstalled per day
2.5 new turbines installed per day
One new turbineinstalled every 11 days
Actuals
Modelled
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Over 6,000 turbines to beinstalled over 10 years
1. Number of turbines calculated from actual and
forecast installed capacity figures, assuming 3MW
turbines 2003 2013, and 5MW turbines from
2014 Source Carbon Trust Offshore wind power
big challenge, big opportunity, 2008 Carbon
Trust analysis 2010
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Foundations research area focuses on 30-60m
Foundations
Shortlist
Finalists
Current focus
Fabrication
Keystone
Airbus A320
Gifford / BMT /Freyssinet
Installation
SPT Offshore
IHC
Demonstration
MBD
Source Carbon Trust Offshore Wind Accelerator
2010, IHC
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Electrical systems opportunity higher voltage
arrays
Electrical Systems

• Current priorities
• Engaging cable suppliers to deliver higher
  voltage cables
• Optimising design of switchgear, transformers

• Benefit
• Improved reliability
• Lower losses

Source Carbon Trust Offshore Wind Accelerator
2010
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More accurate models are being developedIncreases
wind farm yields and reduces financing costs
Wake Effects

• Next steps
• Develop more accurate wake effects models
• Develop tools to optimise layouts
• Measurement campaign to reduce data collection
  costs

Source Carbon Trust Offshore Wind Accelerator
2010
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Access competition to increase availability and
safetyOver 450 designs entered
Access Systems
New technologies required to implement optimal
strategies
Challenge improve access in tough metocean
conditions
Transfer systems
Vessels
Launch recovery systems
Source Carbon Trust Offshore Wind Accelerator
2010
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Some excellent RD is being performed in
EuropeExamples

• Denmark Risø
• Germany RAVE, Fraunhofer
• Netherlands ECN, FLOW
• Norway NOWITECH
• Sweden Vindforsk III
• UK ETI, NAREC

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Greater collaboration is neededReduce
duplication, increase efficiency
w
No. projects
Turbine development
Grid integration
Foundations
Ecosystem
Wind resource assessment
Wake effects
Access / OM
Electrical systems
Floating wind turbine
OWA focus area
Source Carbon Trust analysis 2010
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Conclusions

• We are focusing our RDD efforts on the needs of
  end users
• Cost reduction in site conditions applicable to
  EU market
• RDD is essential for driving down cost of
  offshore wind
• Strengthens economic returns
• Reduces financing costs
• Reduces costs to consumers
• Accelerates deployment
• Greater collaboration would benefit everyone
• Avoids duplication and reinvention

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Phil de VilliersOffshore Wind Accelerator
ManagerPhil.deVilliers_at_CarbonTrust.co.uk