Wind power technologies and the challenge of industrializing the supply chain and operation

Transcription

1 Wind power technologies and the challenge of industrializing the supply chain and operation 23. September, 2011 VGB Congress "POWER PLANTS 2011", Berne, Switzerland Christina Aabo, Senior Manager, Asset Management & Concepts, Renewables

2 Agenda Overview offshore wind power DONG Energy's position in the wind energy market Challenges for offshore wind energy The hard questions... DONG Energy's solutions to industrializing the supply chain and operation 2

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5 The offshore wind industry is maturing and growing rapidly Installed offshore capacity by country, 2010 (GW) Others Sweden 6% 11% NL 8% Denmark 29% 2010 = % GW UK UK and Denmark are the leading countries within offshore wind Comments Denmark is a leading nation within offshore wind and has in many ways pioneered the offshore wind industry The world s first offshore wind power plant in 1991 In 2001 and 2003, DONG Energy established the first larger scale offshore wind power plants in Denmark UK has driven a considerable growth within recent years Offshore capacity, Europe (GW) New capacity additions, GW Installed capacity, GW Comments Offshore wind is expected to constitute a continuously larger part of the European renewables market The EU Energy Policy: ~39 In % of electricity is based on renewable energy ~0,7 ~2,1 ~16 In % of total consumption of energy is based on renewable energy Source: Emerging Energy Research 5

6 Agenda Overview offshore wind power DONG Energy's position in the wind energy market Challenges for offshore wind energy The hard questions... DONG Energy's solutions to industrializing the supply chain and operation 6

7 DONG Energy is the market leader within offshore wind power Offshore wind market share in Europe Offshore wind parks in operation and under construction 2010 (Total 7,1 GW) Other 72% 28% In operation and under construction, March 2011 MW Under construction Operational capacity Within offshore wind energy, DONG Energy is an established world leader having the largest market share 0 Source: Emerging Energy Research and company webpages. 7

8 DONG Energy is an international operator of wind power plants IN OPERATION UNDER CONSTRUCTION/PLANNING Nygårdsfjellet 1 Nygårdsfjellet 2 Offshore wind power leading position globally Focus markets: UK, Denmark and Germany Mehuken 1 Storrun Operational capacity: 707 MW Mehuken 2 Under construction: ~1,300 MW Walney West of Duddon Sands Barrow Burbo London Array Horns Rev 1 Lincs Horns Rev 2 Borkum Riffgrund Gunfleet Sands 1+ 2 Anholt DK onshore Karcino Nysted Karnice Lake Karwice Ostrowo Project pipeline: ~2,000 MW Onshore wind power narrow market focus Ploudalmezeau Focus markets: Operational capacity: Poland, Sweden, Norway and Denmark 339 MW Under construction: Project pipeline: 18 MW MW Notes: Our participation in the development of the respective pipeline projects is dependent upon the affirmative final investment decision of our Supervisory Board as to whether to proceed 8

9 DONG Energy needs financial partners as well as strong supply chain partners to increase value creation DONG Energy offshore wind projects in partnerships Offshore wind projects in operation Offshore wind projects under construction Offshore wind projects under engineering/planning Walney 368 MW WoDS 389 MW London Array I 630 MW Barrow 90 MW Horns Rev 160 MW Lincs 270 MW Anholt 400 MW Middelgrunden 40 MW private partnership Nysted 166 MW There is a clear tendency towards partnerships in wind projects Increased complexity of offshore sites as well as increase in project size are expected to drive partnership trend even further Financial investors and supply chain players have started to enter the scene DONG Energy is an attractive partner due to leading market position, project development experience as well as supply chain positioning DONG Energy has strong experience with different types of partnerships including industrial partners, financial investors and pension funds London Array II 370 MW 9

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11 Agenda Overview offshore wind power DONG Energy's position in the wind energy market Challenges for offshore wind energy The hard questions... DONG Energy's solutions to industrializing the supply chain and operation 11

12 12 Expected market development increases both volume and complexity at the same time High offshore growth rates over the coming decades and corresponding increase in size and complexity Max Water depth, m +18% UKR3 UKR3 UKR3 UKR3 UKR3 UKR3 UKR3 UKR3 +36% ~ % ~0, % ~2, Max Distance to shore, km Planned offshore wind capacity New capacity additions, GW Installed capacity, GW CAGR Planned offshore wind projects (bubble size represents project size in MW) Germany Netherlands UK Denmark <2015 projects DONG Energy projects Requires: Rapidly expanding organisation Large capital requirements Portfolio-wide planning Source: Emerging Energy Research Requires: Innovative and adaptive mindset to cope with technical and logistic complexity Need to transfer learning's from early-phase projects to new pipeline Technical and operational risk mitigation in "unknown territory"

13 Agenda Overview offshore wind power DONG Energy's position in the wind energy market Challenges for offshore wind energy The hard questions... DONG Energy's solutions to industrializing the supply chain and operation 13

14 Offshore wind power market is booming How do we ensure reduction of Cost of Energy? assuming the power sales price is not increasing How do we avoid bottle necks in the supply chain of wind power plant components and competent people? To be on the forefront of this market requires investments, the right skills and competences, partnerships and collaboration across the value chain and a lot of innovation to be successful 14

15 Agenda Overview offshore wind power DONG Energy's position in the wind energy market Challenges for offshore wind energy The hard questions... DONG Energy's solutions to industrializing the supply chain and operation 15

16 DONG Energy's wind power plant design approach Main design involvement Design approach 1. WTG Part of industry development 1 Follow industry development and prepare for new technologies 2. Foundations 5 Co-develop with partner(s) Co-lead development with selected partners Lead design and development 2 3. Electrical Infrastructure Lead the design of optimal electrical infrastructure systems Low DE involvement High Follow and influence industry development of electrical components 4 3 System design 4. Installation Co-lead development of solutions with A2SEA and other selected partners 3 Components Co-lead development of more efficient and low risk submarine cable installation methods 5. O&M 16 Co-lead development of O&M solutions with partners Follow industry development

17 To improve competitiveness of offshore wind, DONG Energy focuses on largest cost drivers Key actions to improve competitiveness: Rationale: Large scale sourcing agreements on: Foundations, cables, and other large CAPEX components Standardisation of conditions Optimisation potential Acquisition of A2SEA, a specialised offshore installation company Acquisition of a minority share in CT Offshore, a specialised cable installation company Access to superior logistical competencies Industrialised approach to project planning and execution, sourcing, installation concepts, technical improvements and O&M across the portfolio Scale synergies Optimisation potential 17