Scotland Offshore Wind

Transcription

1 Scotland Offshore Wind Leonore Frame Scottish Development International January 2015

2 Scotland s Offshore Wind Market 1. Abundant Resources Scotland has 25% of Europe s Offshore Wind & Tidal = heart of the market. 2. Exceptional Experience Scotland s has 40+ years of offshore Oil & Gas = strong supply chain 3. Outstanding Locations - Scotland has 9 Low Carbon Enterprise Area Ports = tailor made sites 4. Unique Capabilities- Scotland has Catapult, ETP, Hunterston, ITREZ & PNDC = testing tomorrow today 5. Unrivalled Support Scotland has made > 200m available for Renewables = public sector commitment Scotland - Ticks all the boxes

3 1. Abundant Resources = Heart of European OSW Market Scotland = powerhouse of renewable energy 25% of Europe s Wind and Tidal resources 10% of Europe s Wave resources = 206GW total renewables potential or 10X Scotland s domestic electricity demand 40% of UK s fixed offshore wind potential. High load factors Most 100m+ deepwater potential in UK

4 Scotland s Offshore Renewables Sites Short-term Sites and Medium Term Areas of Search (Final Plan) The Scottish Government is fully committed to growing its renewable energy industry and aims to make Scotland a model nation in the transition to a low carbon economy. Marine Scotland (the Scottish Government s directorate responsible for the integrated management of Scotland's seas) published Blue Seas- Green Energy: A Sectoral Marine Plan for Offshore Wind Energy in Scottish Territorial Waters in 2011 This strategic planning document is the Scottish Government s vision for the development of offshore wind energy in Scottish Territorial Waters The plan contains proposals for offshore wind development at the regional level up to 2020 (short term sites), 2030 (medium term sites) and into the longer term. It seeks to maximise the benefits for Scotland, its communities and its people and recognises the need for public acceptability in the development of offshore wind. It aims to strike a balance between economic, social and environmental needs and also recognises that there are national and regional challenges to overcome to facilitate development.

5 Scotland s Offshore Renewables Sites 1 commercial (Eon Robin Rigg) + 2 test sites (Beatrice Moray Firth) operational (197 MW) 5 commercial + 2 test sites in pre-planning / planning and consented stage (6887 MW) 1 commercial (Argyll Array) on hold (690 MW) 4.8 GW of offshore wind in the planning system 7 GW of Offshore wind is planned off Scotland s coast in next decade 206 GW : estimated Scotland s total practical offshore resource

6 Scotland s Offshore Wind Sites Site Developer Scottish Territorial Waters MW Capacity Status Beatrice SSE Renewables / Repsol 750 Approved Neart na Gaoithe Mainstream 450 Submitted to Marine Scotland Inch Cape Repsol / EDP Renováveis 1050 Submitted to Marine Scotland Site Demo sites 2010 Developer MW Capacity Status Methil Offshore Wind Farm Demo site European Offshore Wind Deployment Centre Scotland Samsung 7 Operational Vattenfall, Technip and AREG <100 Approved

7 Offshore Wind Sites in the UK Resource information Current projects map Site Developer MW Capacity Status Round Moray Firth EDP Renováveis / Repsol 1116 Approved Firth of Forth Dogger Bank Hornsea 1 (Heron & Njord) SeaGreen Wind energy Ltd (SSE Renewables, Fluor) Forewind Consortia (SSE Renewables, RWE Npower Renewables, Statoil and Statkraft) 3465 First Project Submitted Marine Scotland 7200 Two Projects Submitted PINS Smart Wind Consortia (Mainstream Renewable Power, Siemens Project Ventures) and DONG Energy 1200 Submitted PINS East Anglia East Anglia Offshore Wind Ltd (Scottish Power Renewables and Vattenfall) 7200 First Project Approved Rampion E.On Climate and Renewables 700 Approved Navitus Bay Wind Park Eneco New Energy and EDF 970 Submitted PINS

8 2. Exceptional Experience = Strong Supply Chain Scotland has adapted its world famous shipbuilding and heavy engineering expertise to now lead the world in offshore energy exploration and production:- Glasgow s River Clyde was the world's pre-eminent shipbuilding centre during the shipbuilding boom of the 19th to mid 20 th centuries, with the term Clydebuilt becoming an industry benchmark of quality. Construction of the Forth Bridge in 1890 was considered a great feat of engineering this cantilever railway bridge spans 1.6 miles (2.5 km) in length, with the double track elevated 151 ft (46 m) above high-tide water level and three cantilever structures sitting at 330 ft (100m) tall

9 Offshore Engineering 40 year history of oil and gas exploration and recoveryour experience and innovation has made Scotland s oil & gas industry famous around the world. Unrivalled knowledge and expertise of working offshore in deep water and very challenging conditions Large pool of skilled labour experienced in developing and servicing energy projects. Current oil & gas workforce of 224,000, and 2000 supply chain firms, have the transferable skills required to support your company Scotland is uniquely positioned as a country with unsurpassed natural resources and a large experienced talent pool and supply chain capable of developing it.

10 Beatrice Demonstrator Project Knowledge and experience drawn from 40 years of oil and gas exploration gives Scotland an edge in deepwater offshore wind farm deployment and construction. Beatrice Project World-leading 10MW Beatrice deepwater demonstrator project located off Caithness Coast (Northern Highlands) Deployed world s largest 5MW Repower offshore turbines in 45m water depth (Year?) Installed 23km offshore Proved concept of deepwater offshore wind.

11 3. Outstanding Locations = Tailor made sites (N-RIP) Scotland has a modern infrastructure ready for doing business. Recognising the need for fit for purpose port and harbour infrastructure, investment in facilities for offshore wind has been a key priority across Scotland. National Renewables Infrastructure Plan (N-RIP) Ensures that a range of appropriate sites are available in the right locations to service the offshore energy industry. Identified the locations across Scotland which offered the biggest potential for developers to base their manufacturing operations. Outlines how more than 5,000 green jobs could be created through the development of three regional offshore energy manufacturing zones built around key port locations. Highlights that 223 million of combined private and public investment would be needed to develop these sites. National Renewables Infrastructure Fund (N-RIF) Established to stimulate the offshore wind supply chain in Scotland by strengthening port and manufacturing facilities and supply chain provision for manufacturing offshore wind turbines and related components. 70 million fund is aimed at port and near-port manufacturing locations for offshore wind turbines and related developments - including test and demonstration activity. Acts as a catalyst to stimulate private sector investment,

12 4. Unique Capabilities = Developing the Future Today Developing the Future Today- Scotland has many support mechanisms to drive the industry, a strong academic and research pool, and a long-term investment in test and demonstration and grid infrastructure projects. Centres of Excellence Test & Demonstration facilities Skills & Research Capabilities

13 Renewable Energy Centres of Excellence Scotland s key renewable energy centres of excellence and initiatives include: Energy Technology Partnership (ETP) an alliance if 11 Scottish universities currently engaged in world-class energy research, development and demonstration, ETP is the largest, most broad based power and energy research partnership in Europe with around 250 academics and 600 researchers. The ETP is actively engaged in numerous UK and international partnerships including industry collaborations. Wind Energy Systems Research Centre The University of Strathclyde was successful in securing a major funding programme for a new Industrial Doctoral Training Centre aimed at supplying the wind industry with a new generation of specialists in wind energy. The centre will produce 50 PhD level engineers and scientists to help Scotland s renewable energy commitments International Renewable Energy Zone (ITREZ) - a global R&D hub bringing business and academia together to work collaboratively on the development of the offshore renewables sector- introducing efficiencies, reducing risk and driving down costs. Located in Glasgow, ITREZ provides the facilities, funding and specialist expertise required to help industry and academia work together to create innovative products and services that are essential for the growing renewables sector.

14 Renewable Energy Centres of Excellence cont. Institute for Energy Systems (IES) based at the University of Edinburgh, IES has a current research grant portfolio of around 10 million and conducts world-class research into the systems that control the conversion, transmission and utilisation of energy. It is the lead university in the UK s flagship wave and tidal research programme, Supergen Marine, and is recognised worldwide as the leading global centre for marine energy research. European Marine Energy Centre (EMEC) Based in Orkney, EMEC is the first centre of its kind in the world offering opportunities to test full-scale grid-connected devices in unrivalled wave and tidal conditions Hydrogen Office - created to accelerate the development of sustainable energy in Scotland by demonstrating the important role renewable energy can play in Scotland's future University of the Highlands and Islands Energy Research Group involved in developing energy research and training with focus on marine and land based bioenergy and community renewable energy Department of Naval Architecture and Marine Engineering (NAME) based at the University of Strathclyde, NAME boasts a 125 year history of marine expertise

15 Renewable Energy Centres of Excellence cont. The Offshore Renewable Energy Catapult - a 50million technology innovation project funded by the Technology Strategy Board, bringing together innovative companies and key research institutions to support the development of pioneering low carbon technologies. Located within the flagship International Technology and Renewable Energy Zone in Glasgow Technology and Innovation Centre (TIC) - Part of ITREZ, the TIC will house 850 academics and 500 engineers, researchers and project managers from industry within the University of Strathclyde campus, allowing collaboration on key areas of industry-driven research., including power and energy, renewables, advanced manufacturing, and engineering Scottish Energy Laboratory (SEL) - a network of nationally and internationally significant test and demonstration facilities across all key energy sectors, allowing companies to easily identify and access the most appropriate facilities for their technologies. SEL was launched to strengthen collaboration across Scotland s key test and demonstration facilities which underpin Scotland s leading position in low carbon energy development.

16 Scotland s Test & Demonstration centres Scotland offers a full wide range of test & demonstration facilities to support supply chain development: Turbines:- Energy Park Fife- Methil Centre of Excellence for Renewable Energy (CEERE ) - Hunterston European Floating Wind Demonstration Centre Douneray (under development) European Offshore Wind Deployment Centre - Aberdeen Bay Power Network Demonstration Centre (Cumbernauld) HVDC Multi Terminal Test Environment (under development) Concrete Technology Unit (Dundee) Centre for Advanced Condition Monitoring (Glasgow)

17 Test and Demonstration Sites Project name Stage Capacity Developer details Comments 1 European Offshore Wind Deployment Centre Consented 100 MW (11 turbines) Vattenfall/ARE G owners + Technip partner Aberdeen Offshore Wind Ltd operator Vattenfall currently looking to sell its share of the project. 2 Buchan Deep Floating Wind Site Pre-planning 30 MW (5 Hywind turbines) Statoil owner Hywind Ltd operator To be deployed off the Aberdeenshire Coast by end of Methil Offshore Wind Test Site - Fife Energy Park Operational 7 MW (1 device) Samsung Heavy Industries owner SE operator 4 Beatrice Demo Operational 10 MW SSE Renewables Talisman Energy owners

18 Skills Development Scotland Creating a skilled workforce The growth of offshore wind will require specialist skills and knowledge. The national skills body, Skills Development Scotland (SDS) is equipped to provide energy operators with skills, training and funding advice. SDS led on the Energy Skills Investment Plan published in It charts the projected needs of the offshore wind sector, indicated by industry operators. A number of skills initiatives are being delivered across Scotland: Energy Skills Scotland Energy Skills Scotland (ESS) is a Scottish Government and industry initiative designed to boost collaboration and encourage more talent into and across the energy sector. It is backed by an investment package of 6.5 million from the Scottish Government and led by Skills Development Scotland. Skills Development Scotland Initiatives These include funding 50% of staff training costs for organisations working in low carbon technologies through the Low Carbon Skills Fund. Additionally, over the next four years Scotland will be delivering 2,000 Modern Apprenticeships specifically for the energy and climate change industries.

19 5. Unrivalled Support = Public Sector commitment Scotland is a leader in the development of renewable energy and has long recognised the importance and opportunity offered by offshore wind. Importantly, we also recognise the challenges and barriers that might prevent the industry developing. In order to realise this opportunity and address the challenges, the Scottish Government has actively taken strategic steps to enable a low carbon economy and industry to thrive in Scotland: Targets- Introduced world-leading emissions targets Planning & Regulatory- Creation of Marine Scotland Enhanced Generation Incentives Funding & Capital Grant Schemes

20 The Scottish Government s ambitious Renewable Energy targets Scottish Targets - 100% of electricity demand from Renewables by 2020 Interim target of 50% by 2015 Currently approximated at 45% 30% of primary energy by 2020 Emission reduction target of 80% by 2050 Interim target of 42% by 2020 UK Targets 30% of power from renewables by 2020 Currently approximated at 8% 15% of primary energy by 2020 Emission reduction target 80% by 2050 We stand on the brink of a renewable energy revolution. Nicola Surgeon, First Minister

21 Key policy documents

22 Enhanced Generation Incentives The Renewables Obligation (Scotland), known as the ROS, is the Scottish Government's main means of increasing renewable electricity generation in Scotland. Current incentives to encourage development of wind energy are based on Renewable Obligation Certificates (ROCs): Offshore wind farms- 2 ROCS per Mwh Floating Offshore Wind- 3.5 ROCs per Mwh ROC = circa 45 per MWh Now changing under the UK s Electricity Market Reform (EMR) and will be replaced by a Contracts for Difference (CfD) scheme. This will replace the ROC mechanism from April Strike Price for offshore wind 2014/15= 155 per MWh, by 2018/ per MWh

23 Marine Scotland - Planning Planning & Regulatory- Marine Scotland The Scottish Government created Marine Scotland- the one stop shop government directorate responsible for the integrated management of Scotland's seas. Marine Scotland s main advantages are: Simplified licensing system for offshore wind, wave and tidal developers to obtain consents/licences for marine renewable developments in Scottish waters. Strategic Environment Assessment & Locational Guidance- The Scottish Government undertook a SEA to find the most appropriate locations for placing wind energy devices in the sea, around the entire Scottish coast. This allows Marine Scotland to offer advice to developers on the most suitable locations, minimising constraints in the industry.

24 Energy sector funding in Scotland Supporting renewable energy and the offshore wind sector is one of the Scottish government s key priorities. There are numerous services and funds available for growing your business in offshore wind, including: National Renewables Infrastructure Fund (N-RIF) - 70 million fund designed to support the development of suitable manufacturing sites for offshore wind turbines and related developments including test and demonstration activity Renewable Energy Investment Fund (REIF) - 100m million fund to provide financial assistance for projects that will deliver energy from a renewable source, reduce the cost of renewable energy or provide key solutions for renewable energy generation, whilst providing benefit to the economy of Scotland POWERS (Prototyping for Offshore Wind Energy Renewables Scotland)- 35 million fund available to manufacturers in Scotland for the prototyping of next generation offshore wind turbines. Scottish Innovative Foundation Technologies (SIFT) - Scotland recognises the need for innovation in deep-water offshore wind foundation design and installation to help drive down the cost of energy, and has designated a 15 million fund for projects that build their prototype in Scotland and commit to full scale production of next generation offshore wind foundations here. Green Investment Bank- The UK Green Investment Bank (GIB), headquartered in Edinburgh, is capitalised with 3 billion to provide financial solutions to accelerate private sector investment in the green economy. Providing loans at favourable interest rates, offshore wind is one of the banks priority investment areas.

25 Renewable Energy Infrastructure Fund (REIF) REIF The Renewable Energy Investment Fund (REIF) provides financial assistance for projects that will: Deliver energy from a renewable source, reduce the cost of renewable energy or provide key solutions for renewable energy generation Provide benefit to the economy of Scotland Have a demonstrable funding gap for REIF to consider Be at a sufficient stage of development to require REIF funding before March 2016 REIF is delivered by the Scottish Investment Bank (Scottish Enterprise s investment arm) on behalf of the Scottish Government and its enterprise agencies. REIF is a discretionary fund, with projects assessed on a case by case basis. The fund can provide loans, guarantees and equity investments, all on fully commercial terms. REIF is designed to support projects at the test or commercialisation phase- separate funds for R&D projects are available through Scottish Enterprise and Highlands and Islands Enterprise. More information is available here:

26 Regional Selective Assistance (RSA) RSA is a scheme that aims at encouraging investment and job creation in the areas of Scotland designated for regional aid under European Community (EC) law (the Assisted Areas). Businesses of all sizes can apply for RSA, whether they are Scottish owned, or owned and registered outside Scotland. The amount of grant that is offered towards an eligible project depends on a number of factors, such as: Location of your project Size of your business Size and cost of your project Number of jobs created or safeguarded Quality and type of these jobs RSA is a discretionary grant. The level of grant offered within the EC limits depends on an assessment of how much is needed to make sure that the project goes ahead. There are three tiers of assisted areas in Scotland reflecting different maximum levels of grant assistance potentially available. For further details on the RSA fund please see:

27 R&D Grants & Tax Credits R&D Grant The R&D Grant is designed to generate additional R&D activity in Scotland. It intends to encourage increased levels of business expenditure in R&D in Scotland and is open to any company, of any size, wishing to grow their business through the development of new products, processes or services in Scotland. Please see for further information regarding project eligibility criteria. R&D Tax Credits The R&D tax credits aim at encouraging R&D spending in order to promote investment in innovation. The R&D tax credit works by allowing companies to deduct up to 150% of qualifying expenditure on R&D activities when calculating their profit for tax purposes. Companies which are small and mediumsized enterprises (SMEs) can, in certain circumstances, surrender this tax relief to claim payable tax credits in cash from the HM Revenue and Customs. More information is available here:

28 SMART: SCOTLAND SMART: SCOTLAND provides grants to Small to Medium Enterprises (SMEs) based in Scotland. The grant helps you undertake technical feasibility studies and research and development (R&D) projects that have a commercial endpoint. Feasibility studies- We can support up to 70% of the eligible costs for a small SME and up to 60% of the eligible costs for a medium SME. Studies must last between 6 and 18 months, and the maximum grant is 100,000. One third of the grant is paid upfront when the project starts. The remainder is paid quarterly in arrears against claims submitted. R&D Projects- This covers projects that aim to develop a pre-production prototype of a new product or process. Support is available at up to 35 per cent of the eligible project costs. Projects must last between 6 and 36 months, and the maximum grant is 600,000. The grant is paid quarterly in arrears and minimum total project cost is 75,000. To be eligible your project must exhibit An advance in technological innovation for the UK industry or sector concerned The technical risks and challenges associated with defining and developing the technology You must be able to demonstrate : That you own, or have rights to exploit, the intellectual property required to undertake, and arising from, the project How commercial prospects for the end product or process will be achieved, with realistic and effective routes to market That both the project and the business are financially viable That financial assistance from SMART: SCOTLAND is essential For more information please visit:

29 Scotland ticks all the boxes 1. Abundant Resources Scotland has 25% of Europe s Offshore Wind & Tidal = heart of the market. 2. Exceptional Experience Scotland s has 40+ years of offshore Oil & Gas = strong supply chain 3. Outstanding Locations - Scotland has 9 Low Carbon Enterprise Area Ports = tailor made sites 4. Unique Capabilities- Scotland has Catapult, ETP, Hunterston, ITREZ & PNDC = testing tomorrow today 5. Unrivalled Support Scotland has made > 200m available for Renewables = public sector commitment

30 Thank You Any Questions?