Transcript Slide 1

Stephen Kerr
Beatrice Offshore Windfarm
STW Offshore Wind Supply Chain
2nd February 2010
Inverness
Introduction
• Developers & Sites
• Supply Chain Gaps
• Contracting Strategies
• Adding Value
3
Developers & Sites
Site Name
Developer
Estimated MW
Argyll Array
Beatrice
Scottish Power Renewables
SSE Renewables & SeaEnergy
1500
920
Inch Cape
Bell Rock
Islay
Forth Array
Kintyre
Neart na Gaoithe
RWE Npower & SeaEnergy
SSE Renewables & Fluor
SSE Renewables
Fred Olsen
SSE Renewables
Mainstream
905
700
680
415
378
360
Solway Firth
Wigtown Bay
TOTAL
E.ON
DONG Energy
300
280
6438
The Crown Estate 2009
Key Statistics
Approximate area of site
131.5km
Approximate no. of turbines
184
Approximate generating
capacity of site
920MW
2
Current Development Timescales
Activity
Timescale
Exclusive development agreement awarded by The
Crown Estate
February 2009
Commence boat based bird surveys
October 2009
Scoping (first stage of the Environmental Impact
Assessment)
Feb 2010
Scottish Government Strategic Environmental
Assessment (SEA) Consultation Document
Feb 2010 draft / May 2010 final
Application for Statutory Consent and Licenses
Aim is late 2011/ early 2012
Consent Granted
Aim is early 2013
Construction Commencing
Aim is 2014/ 2015
Fully Operational
Aim is 2016/2017
5.04
Management & Consultancy
5.05
Vessel & Support Costs
Total OPEX
Assumed 25 yr Lifetime
18.0%
35.0%
100.0%
123
240
686
17,138
50%
40%
60%
48%
50%
44%
70%
50%
50%
60%
45%
35%
55%
46%
45%
42%
65%
40%
50%
60%
Gap Value £M Based on 6400
MW Installed
Estimated Gap %
Estimated Potential Scottish
Take %
Average £M / year To 2020
Estimated Historical Scottish
Take %
5%
5%
5%
3%
5%
2%
5%
10%
0%
0%
53
102
27
8,417
22
3,141
31
1,747
1,452
1,398
Potential Gap £Billion For
Scottish Suppliers
£8.6
£8.750%
0%
50%
627
Annual Gap Value £M
By 2020
8,599
2%
0%
80%
50%
Estimated Gap %
Average Potential Gap £M
Per Annum For Scottish
Suppliers
£1,167
1%
40%
39%
96
0%
40%
40%
27
£349
0%
50%
50%
7
Estimated Potential
Scottish Take %
Annual Value £M By
2020
Average Value £M Per Annum
2014 to 2020
Level
Code
Description
CAPEX
£2,432 35.0%
5.01
Service, Maintenance & Parts
240
5.02
Insurance
10.0%
69
OPEX
£686
5.03
Grid Supply
2.0%
14
13
32
6
2,188
6
907
6
448
363
291
11
157
2,240
Estimated Historical
Scottish Take %
108
259
45
17,508
45
7,258
45
3,584
2,903
2,330
90
1,254
17,920
Total Value £Billion Based on
6.4GW Installed By 2020
£17.9
£17.1
Typical Value % of
Operations
CAPEX
OPEX
0.6%
1.4%
0.3%
97.7%
0.3%
40.5%
0.3%
20.0%
16.2%
13.0%
0.5%
7.0%
100.0%
Value Based on 6400 MW
Installed In Offshore UK £M
Level
Code
Description
1.00
Project Development
2.00
Legal & Financial
3.00
Project Management
4.00
Design & Construction
4.01
Detail design
4.02
Turbine
4.03
Construction Project Management
4.04
Substructures
4.05
Transportation & Installation
4.06
Electrical & Control Systems
4.07
Commissioning
4.08
Export connections
Total Development CAPEX
Typical Value % of
development
Potential STW Supply Chain Gap
78%
50%
99
120
349
STW Supply Chain Value - CAPEX
STW Supply Chain Value - OPEX
Contracting Strategies
• Developments at early stage
• BOWL will work closely with Tier 1 suppliers and contractors in offshore wind to
determine the most suitable procurement model:-
• Single Stage EPIC
• Single Stage EPIC with Nominated Supplier Packages
• Multiple Package Construction Management
• Most likely model Tier 1 suppliers and contractors in the following categories:
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•
•
•
•
•
•
•
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Onshore Factory / Fabrication – Delivered to Quayside
Wind Turbine Manufacture
Substructure – e.g. Monopilpile or Jacket
Cable Manufacture
Electrical Systems
Substations – Onshore and Offshore
Control System
Installation (Marine Coordination, Transport, Install and Hook Up)
Commissioning
Contracting
• Understand where you want to fit – who is your customer?
Wind Farm
• Don’t assume developers understandAsset
yourOwner
technology and capability
• Understand their procurement process – Achilles, FPAL, UVDB...
Develop
Finance
Where Will You Add Value?
Maintain
Operate
Monitor / Control
Performance
• Step change in installed cost required
Permit / Design
• Series production techniques – economies of scale
Build
Metering / Billing /
Financial /
Procurement / PR
• Innovation – eg structures, installation, control systems, condition monitoring...
Supply & Install Wind
Turbine
Wind Turbine
Equipment manufacturer typically has 5 year warranty thereafter
maintenance may be contracted to specialist or performed by owner
or operator. 2 way link to operations
• Develop technologies – learning from oil & gas experience
Balance of Plant –
• Early engagement
Civils / Electrical etc
Balance of Plant –
Civils / Electrical etc
QUESTIONS