North Sea Wind Power Building a successful offshore wind industry

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Tabitha Turner
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2 Politicians love opening wind farms and announcing factories David Cameron, PM London Array 4 th July 2013 Ed Davey, Energy and Climate Change Secretary - Walney 9th Feb 2012 Greg Barker, Climate Change Minister - Gunfleet Sands 3, 12th September 2013 David Cameron and Ed Davey,Alexandra Dock, Hull, 25 th March 2014 Nick Clegg, Deputy PM Lincs 1st August Michael Fallon, Energy Minister Greater Gabbard 7th August

3 And Playing Party Politics with wind

Behind the myths By 2020 in the UK onshore wind will be the lowest cost form of electricity

The UK also has the lowest domestic gas prices in Europe Over 50% of UKIP voters actually

of UK electricity. Support for renewables (RO) added 27.

4 Behind the myths By 2020 in the UK onshore wind will be the lowest cost form of electricity generation you can build Renewable UK Source: DECC QUARTERLY ENERGY PRICES SEPTEMBER 2013 The UK also has the lowest domestic gas prices in Europe Over 50% of UKIP voters actually support subsidies for onshore wind ComRes poll June 2014 In 2013, Renewables provided 15% of UK electricity. Support for renewables (RO) added (5%) to the average household bill. Of this, support for wind energy amounted to: less than 5p a day / 35p a week / 18 per year

5 The bigger picture

6 Climate change

7 The UK s best renewable opportunity Europe s offshore wind plans UK 51 GW DE 37 GW F 6 GW NL 5.9 GW DK 5.4 GW ES 6.8 GW EWEA figures from Feb 2013 ROI 4.2 GW FIN 4.5 GW BE 2.3 GW IT 2.8 GW POL 8.3 GW GR 4.4 GW

NG High Offshore Deployment 2020 Scenario TWh The largest contributor to 2020 renewable generation Wind supplied 11% of all UK electricity in February 2014 All UK Offshore Wind load factor >54%

8 NG High Offshore Deployment 2020 Scenario TWh The largest contributor to 2020 renewable generation Wind supplied 11% of all UK electricity in February 2014 All UK Offshore Wind load factor >54% Jan-Mar 2014 Big enough to deliver Big enough to matter Must be affordable NG High Offshore Deployment 2020 Scenario (TWh) NG High Offshore Deployment 2020 Scenario TWh CHP Hydro landfill gas Sewage gas Onshore wind Offshore wind Biomass Marine CHP Hydro landfill gas Sewage gas Onshore wind Offshore wind Biomass Large PV Marine FIT etc. Large PV FIT etc.

9 Cost reduction

10 Project economies of scale

Raising the money >40GW offshore wind @ 3/W = >120,000,000,000 Market capitalisation would put five Round 3 zones in the FT100 We need to

11 Raising the money >40GW offshore 3/W = >120,000,000,000 Market capitalisation would put five Round 3 zones in the FT100 We need to borrow on a low risk low return basis Offshore is risky Sea bed risk Weather risk Delivery risk Plus energy market risk Plus political risk

12 Funding can be complex Page 12 March 2013 Matthew Knight, Siemens Energy

13 Project timing for a R3 wind farm / / Survey & EIA 2 years Apply for Consent Consent Zone developer license award Pre-Consent consultation Consent 15 Months Finance F I D Construct grid 3 years Construct WTGs 2 years Energise Operate 25 years OFTO operates 20 years Replant/ decommission Development license Subsidy regime RO multiplier 2.0 EIA Finance CFD FIT Refinance OFTO sale

14 Market timing

15 What to do we need to make this happen for the UK? Economic Value Confidence Commitment

16 UK Policy Energy Act, EMR Delivery Plan, Industry Strategy Renewables Obligation Contract for Difference London Array, April 2013

What s in the Industry Strategy Ignores the importance of scale to attract investment and reduce cost Assigns lead roles Offshore Renewable Energy Catapult - co-ordinating technology innovation GROW

17 What s in the Industry Strategy Ignores the importance of scale to attract investment and reduce cost Assigns lead roles Offshore Renewable Energy Catapult - co-ordinating technology innovation GROW Offshore Wind service 20m funding for MAS to help SMEs enter the industry Offshore Wind Investment Organisation help inward investment NORSTEC public communication of benefits Renewable UK publish timeline for projects OW Programme Board manage the industry s cost reduction effort OW Industry Council chaired by minister oversees all the above Businesses will invest when they believe there is a market Stanislav Yudin lifting one of 2 Siemens built 2,000 tonne offshore substations into place at Gwynt y Mor

18 Wind factories are where the market got going first Siemens Wind Power factory Brande, Jutland, Denmark

19 Siemens and ABP to invest 310M in Hull 25/03/14 Earlier concept for Siemens Facility, Hull

Hull: Site Overview Alexandra Dock 450 jobs Project execution, final assembly and service logistics centre 54 Ha leased by Siemens Initial 15 year lease period Offshore Quay and Ro-Ro facilities are

20 Hull: Site Overview Alexandra Dock 450 jobs Project execution, final assembly and service logistics centre 54 Ha leased by Siemens Initial 15 year lease period Offshore Quay and Ro-Ro facilities are exclusive to Siemens and constructed according to Siemens Specifications Quay length 636m 3-berth Office, welfare, assembly, paint, outdoor test area, warehousing, service and outdoor storage area Blade Factory 550 jobs (Indicative area shown dotted) 25 Ha leased by Siemens on 80 Ha Development site with potential for adjacent tower fabricator or other supply chain 40 year lease period Blade manufacturing facility including office, welfare and outdoor storage

21 7,000 jobs are already here Siemens Renewable Energy Page 21 October 2013 Engineering centre, Manchester Matthew Knight, Siemens Energy Siemens training school and customer support centre, Newcastle

Elements of offshore wind farms Foundation 20% Wind Turbine c45% of Capex HVDC Converter Stations Array cables 7% Collector Substation 5% Marine

22 Elements of offshore wind farms Foundation 20% Wind Turbine c45% of Capex HVDC Converter Stations Array cables 7% Collector Substation 5% Marine export cable 5% Onshore export cable 5% High Voltage Array switch 1% AC Substation & Reactive Compensation 5% Capex % is typical and for guidance only

23 Catching the wind Typical air density kg/m3 120m diameter rotor x 1m slice =13.8 8m/s =110t/s Betz theorem 59% maximum energy capture Energy proportional to cube of wind speed

24 Blades Page 24 October 2013 Matthew Knight, Siemens Energy

25 SWT Swept area 18,600m 2 154m 155m

26 Elements of a wind turbine - Nacelle

27 Elements of a wind turbine - Inside the tower

28 Lowering cost - New wind turbines 6MW Direct Drive installed January 2013, Gunfleet Sands

29 Foundation & transition piece

30 Lowering cost - New foundations Met mast at Hornsea site 2011

31 Offshore construction London Array 2012

32 Wind turbine installation Jumping Jack installing a turbine at Burbo Bank, Liverpool Bay 2007

33 Wind turbine installation 6MW Direct Drive installed January 2013, Gunfleet Sands by Sea Installer

34 Wind turbine installation 6MW Direct Drive installed January 2013, Gunfleet Sands

35 Wind turbine installation 6MW Direct Drive installed January 2013, Gunfleet Sands

36 Logistics for Burbo Bank 3.6MW WTGs

large installation vessels for offshore wind The vessel concept for

37 Installation Vessel Development 1 WTG per sail 3 WTG per sail 6 WTG per sail 10 WTG per sail >3billion US$ orders already placed for large installation vessels for offshore wind The vessel concept for the next few years is given. The task is now to use them effectively!

Industrialise the detail too The big blocks are given now.

Technical specifications of quay in place Could we develop

Turbine designed and built Could a smarter transport frame be

38 Industrialise the detail too The big blocks are given now. Lets focus on the in between stuff! Technical specifications of quay in place Could we develop equipment to facilitate a faster loading process? Turbine designed and built Could a smarter transport frame be developed to ease the logistics? Vessels under construction Could more weather robust installation methods and equipment be developed?

39 Collecting the power 40MW ~ ~ Wind turbine generators (WTGs) form an array spaced approx. 1km Each WTG needs 1 cable Strings, Tees and tapered cables Closing loops Auxiliary supplies / power export ~ ~ ~ ~ ~ Practical installation issues max array cable 400 sqmm? At 33kV this is 40MW per string Real sea-bed issues change the ideal layout Sand waves, wrecks, marine organisms, prior works

40 Cables Armouring hang-offs for the five inter array 33kV cables on the substation at Horns Rev 1 Denmark Submarine power cable technology based on river crossing and oil and gas techniques

41 Cable failure mechanisms scour, sand waves, anchor drag, marine growth

42 Laying cables

43 Landfall - Beaches vary

44 HDD under sea defences

Cable rating cable rating hot spots Solar gain in J tubes Heat dissipation burial depth under sea defences Landfall section in dry ground can de-rate by half from

45 Cable rating cable rating hot spots Solar gain in J tubes Heat dissipation burial depth under sea defences Landfall section in dry ground can de-rate by half from sea bed rating transition joint offshore to larger landfall section also allows deeper draft vessel to lay in deep water distributed temperature sensing dynamic ratings

46 Hypothesis for number and voltage of export cables Hypothesis for cost benefit analysis Indicative only 33kV, 132kV or 220kV? AC or DC? Cable installation costs dominate 1 larger cheaper than 2 smaller cables But capacity vs. cross section reduces with size Wind farm MW 3 x 132kV 2 x 132kV 2 x 220kV 1 x 220kV HV DC 220kV wins simple cost benefit* Limited choice of manufacturer Cable and joints not yet proven Many more factors 132kV chosen by most projects London Array long cable route reverted to 150kV 33kV 1 x 132kV Distance to shore km *CBA for SQSS

47 Meeting the grid code In most countries grid code applies to whole wind farm and connection at point where connects to grid Sets requirements Behaviour / response Testing Sometimes extra requirements offshore Reactive capability Voltage response Frequency response Fault ride through

..Then consider control / stability 100 wind turbines each with a

frequency Thanet substation 2010 Set in an array of 100 cables of

node Outages create thousands of states Fed from the grid where

48 ..Then consider control / stability 100 wind turbines each with a control loop which includes: feedback gain a finite delay sampling frequency Thanet substation 2010 Set in an array of 100 cables of assorted lengths and cross sections Every joint is a reflective node Outages create thousands of states Fed from the grid where the source impedance / fault level may change May need to allow for filters

49 Onshore substations Leiston Substation, near Sizewell, Suffolk connection for Greater Gabbard

Physical design issues for offshore substations Some of the driving constraints Asset life Cable access Cost Extendability Finance Fire Float out logistics Future ownership (OFTO) Installation

50 Physical design issues for offshore substations Some of the driving constraints Asset life Cable access Cost Extendability Finance Fire Float out logistics Future ownership (OFTO) Installation Maintenance strategy Manned or unmanned Means of access Programme Rated capacity Remote diagnostics Resilience / availability / redundancy SCADA Seabed geology Supply chain Topside weight Vessel capability And many more London Array offshore substation December 2010

51 Example: transformers Largest, heaviest, most expensive item on the substation Take many weeks to repair / replace Losses generate heat Need cooling Fire containment Loading relates to wind speed

52 Offshore substations (AC) Rodsand DK Horns Rev DK Barrow GB Princes Amalia (Q7) NL Lillgrund SW Robin Rigg 1 & 2 Alpha Ventus D Horns Rev 2 DK Gunfleet GB Rodsand 2 DK Gabbard GB Thanet GB Bard DE Walney 1 GB Galloper GB Belwind 1 BE Ormonde GB Sheringham GB Baltic 1 DE London Array 1 & 2 GB Lincs GB Walney 2 GB Anholt DK GYM 1 & 2 GB Thorntonbank

53 AC offshore substation evolution Baltic 1 Sheringham Dry Tow Swimming and Self Jacking GYM 1 & 2 Galloper Bard Containerised London Array 1 & 2 Architectural Lillgrund Gunfleet Rodsand Onshore Arecleoch Barrow Robbin Rig 1 & 2

54 Perverse incentives, odd outcomes? 576MW OFTO RAV 306M 250MW OFTO RAV 311M Examples of apparently odd outcomes. No criticism implied or intended These are capable companies doing sensible things in the circumstances

National drivers for grid connections Great Britain Developer builds grid then transfers to OFTO In future OFTO build also possible lumpy - requires big investment decisions Coordinated design key to

55 National drivers for grid connections Great Britain Developer builds grid then transfers to OFTO In future OFTO build also possible lumpy - requires big investment decisions Coordinated design key to large scale Offshore grid code relaxed vs. onshore Developer splits into a few turnkey contracts Belgium & Netherlands Developer builds grid Grid code applies at point of connection BOP single EPC contract Germany Onshore TSO builds grid Zonal connections Build triggered by developers reaching financial milestone Stranding risk (both ways) Consent and design verification by BSH Full grid code applies offshore TSO turnkey contract (HVDC) Denmark Onshore TSO builds grid Grid concept part of site selection Simple radial connections and relatively small projects single AC cable Reactive compensation at grid level TSO designs and builds

Galloper offshore substation 2011 Reducing cost of grid connections Crown Estate Cost Reduction Pathways Report 2012 Reducing LEC through grid Timing / Speed of delivery Standardisation Coordination

56 Galloper offshore substation 2011 Reducing cost of grid connections Crown Estate Cost Reduction Pathways Report 2012 Reducing LEC through grid Timing / Speed of delivery Standardisation Coordination Extended asset lifetime Technology Learning by doing Industry framework Technology risk (cost of finance) Delivery risk (cost of finance) Supply chain Something radical (i.e. a new product or technique) Charging

Constructing Thanet 300 MW grid connection

2 transformers Onshore substation, Richborough

57 Constructing Thanet 300 MW grid connection August 2009 Thanet 300MW offshore substation, Lowestoft UK (August 2009) 300MW 132kV connection 1,800 tonne topsides 2 export cables 2 transformers Onshore substation, Richborough UK (Sep 2009) High Voltage test Richborough Substation (August 2009)

58 Constructing Thanet 300 MW grid connection November 2009

59 Constructing Thanet 300 MW grid connection December 2009

60 Constructing Thanet 300 MW grid connection February 2010

61 Constructing Thanet 300 MW grid connection February 2010

62 Constructing Thanet 300 MW grid connection February 2010

63 Constructing Thanet 300 MW grid connection June 2010

64 Alternative designs

Lessons from offshore substations HEALTH & SAFETY: Design Fabrication Operation Maintenance Emergencies Search and Rescue STRUCTURAL: Structural calculations Loadings Deflection and vibration

66 Lessons from offshore substations HEALTH & SAFETY: Design Fabrication Operation Maintenance Emergencies Search and Rescue STRUCTURAL: Structural calculations Loadings Deflection and vibration Corrosion protection Weather proofing Effect on equipment Transport & Installation Sea fastening Ballasting HOOK-UP Welding Painting Temporary access Welfare Logistics Sub-sea cable termination Access Pulling facilities Cable supports MANAGEMENT: Interfaces Operation and Maintenance Programme management Project teams Commissioning QA: Materials Weather proofing Paint / rusting Welding Verification / certification ELECTRICAL: Grid Code compliance New standards ANCILLIARY SYSTEMS: Helideck & systems Cranes HVAC Fire suppression Navigation-Aids Water systems Safety systems Escape systems Room specifications Welfare / rest facilities

67 This is still a new industry I am just learning to walk upright

68 And we re about to go further off shore

69 Sheringham Shoal November 2011

70 Near Dogger Bank November 2011 Same Day!

71 Access offshore Service operations vessel Helicopter and crew transfer vessel Platform Crew transfer vessel Floatel

72 Further changes everything Add picture of helihoist

73 People

74 Processes

75 Collaboration

76 HVDC

77 900MW HVDC Converter Platform 90m x 60m (or the size of a football pitch!)

78 800MW ACDC Converter Platform 10,000 to 12,000 tonnes approx (or the weight of the Eiffel Tower!)

79 800MW ACDC Converter Platform 33m Height (= Christ the Redeemer, Rio)

HVDC converter substation evolution Lifted

Self lifting Onshore HVDC Lifted Sandbank 24 Dan

He Dreiht 3 BorWin Hohe See 2 1 Global Tech 1

HelWin Meerwind 7 substations, 6 different

fabricators, 1 customer No time to learn all done

Mate Borkum West 2 MEG 1 1 2 Riffgrund West Borkum

80 HVDC converter substation evolution Lifted topsides Semi-submersible Self lifting Float over Self lifting Onshore HVDC Lifted Sandbank 24 Dan Tysk Nördlicher Grund Butendiek SylWin Siemens ABB He Dreiht 3 BorWin Hohe See 2 1 Global Tech 1 Amrumbank West Nordsee Testfeld Nordsee Ost 2 1 HelWin Meerwind 7 substations, 6 different designs, 4 different concepts, 2 suppliers, 3 fabricators, 1 customer No time to learn all done in parallel to meet a deadline DolWin Bard Veja Mate Borkum West 2 MEG Riffgrund West Borkum Riffgrund Nordsee 1 Godewind 2 UW Hagermarsch UW Büttel UW Diele UW Dörpen / West

Lessons from Germany Perfect storm First of a kind 6 projects in parallel No tradition of offshore industry No established approval process Started big Note that the issue is how to

81 Lessons from Germany Perfect storm First of a kind 6 projects in parallel No tradition of offshore industry No established approval process Started big Note that the issue is how to house the technology, not the HVDC technology itself Expensive lessons have been learned New teams have built experience Substations delivered in 2013 and 2014 Tennet now standardised on 900MW

82 Borwin 1 and 2 Borwin 2 12,000 tonne topsides sails out April m high Borwin 2 base frame sails out 2013 Page 82 May 2014 Matthew Knight, Siemens Energy

83 Careers and training in the wind industry Your Career in Offshore Wind Energy

84 Conclusions The UK needs offshore wind as part of its energy mix Evolution is a slow process but significant lessons have already been learned We are about to go even further from shore adding another dimension to the engineering challenge

Want to know more? Climate Change Without the hot air http://www.withouthotair.com/ SkepticalScience http://www.skepticalscience.com/ The offshore valuation how big could offshore renewables get?

85 Want to know more? Climate Change Without the hot air SkepticalScience The offshore valuation how big could offshore renewables get? Renewable UK trade body for wind, wave and tidal generation Danish Wind Energy Guided Tour a good explanation of the science Siemens Hull web site (links to jobs and supply chain details) Visit a wind farm (look here for 2015 UK Wind Week details soon.) Navitus Bay wind farm pro anti Supergrid Watch the video RenewableUK 2014, November, Manchester

Connecting offshore wind Lessons so far and future challenges

Matthew Knight, Director of Business Development Siemens Energy matthew.knight@siemens.com Connecting offshore wind Lessons so far and future challenges Royal Danish Embassy London offshore wind event