Status, Prospects and Challenges for Offshore Wind Energy in Germany - incl. Legal Framework and Presentation of cost reduction study results

Transcription

1 Status, Prospects and Challenges for Offshore Wind Energy in Germany - incl. Legal Framework and Presentation of cost reduction study results Andreas WAGNER managing director Stiftung OFFSHORE-WINDENERGIE German Offshore Wind Energy Foundation Ecomondo Fair, 6 Nov. 2013

2 Overview I. Stiftung OFFSHORE-WINDENEGIE - who we are II. III. IV. Status and Prospects for Offshore Wind in Germany Legal Framework for Grid Connection, Renewable Energy Act Cost reduction potentials 2

3 I. German Offshore Wind Energy Foundation o o o Independent, non-partisan institution to support the development of offshore wind energy, founded in 2005 Platform for offshore wind (and maritime) industry, for policymakers and research-oriented stakeholders Board of Trustees - key industry & policy stakeholders o o PR and public acceptance activities, Policy initiatives & studies OffWEA project Consulting and support for the federal government in realising and advancing the German offshore wind energy strategy WINDSPEED SEANERGY 2020 Interreg Projects: 4POWER, South Baltic OFF.E.R. 3

4 I. The OffWEA Project Consulting and support for the federal government in realising and advancing the German offshore wind energy strategy. The German Offshore Wind Energy Foundation and its project partners on behalf of the Federal Ministry for the Environment Project runs from 08/2011 to 08/2014 Information Platform 4 SOW E.ON Netz D. Gehring SOW E.ON Netz D. Gehring SOW E.ON Netz D. Gehring

5 Cumulative and annual offshore wind installations in Europe Source: EWEA, European Offshore Statistics

6 II. Offshore Wind Energy Challenges in German Waters Water depth Borkum-II Baltic Sea AWZ Borkum- I North Sea AWZ Sylt-II water depth [m] Baltic Sea 12 sm zone North Sea 12 sm International zone wind farms Helgoland Sylt-I Distance to shore Grids 5 0 Source: IWES/RAVE offshore distance [km]

7 II. Spatial Plan for EEZ (North Sea)

8 II. Status Quo Licensing 95 applications for offshore wind farms in German EEZ (78 in North Sea), 33 projects licensed (incl. 3 prototype turbines) Total capacity 8-10 GW North Sea > 80 % of projects, Baltic Sea < 20 %

9 3 GW under construction in 2012/2013 of which 520 MW in operation (10/2013) Global Tech I ( , 400 MW) Dan Tysk ( , 288 MW) Butendiek ( , 288 MW) construction underway BARD Offshore 1 ( , 400 MW) Borkum West 2, ( , 200 MW) Borkum Riffgat, ( , 108 MW) Borkum Riffgrund 1 ( , 320 MW) Amrumbank West ( , 400 MW) Nordsee Ost ( , 295 MW) Meerwind ( , 288 MW) Baltic 2 ( , 288 MW) Nordergründe ( , 125 MW) Baltic Sea 9

10 Pioneering project alpha ventus First Offshore Wind Farm (OWF) in Germany, constructed wind turbines (à 5 MW) 60 MW 2 turbine manufacturers (AREVA/Multibrid,REpower) 2 types of foundations (tripods, jackets) 60 km distance to shore, 30 m water depth Permits acquired by SOW in 2005 Leased to DOTI (EWE, E.ON, Vattenfall) Commissioning in 2009/10 Extensive ecological and technological research funded by the German Ministry for Environment - 50 M R&D program (RAVE) Impressive operational results 50 % capacity factor (4,450 full load hours) 10 10

11 Commercial OWF in operation ( ) EnBW Baltic 1 (Inauguration May 2011) Within the 12-nm-zone (Baltic Sea) ❿ 21 Siemens turbines (à 2,3 MW) 48,3 MW ❿ m water depth ❿ Monopile foundations, ❿ AC grid connection ❿ Construction during BARD Offshore 1 (inaugurated 27 Aug. 2013) ❿ EEZ (North Sea) - 90 km from shore ❿ 80 wind turbines (à 5 MW) 400 MW ❿ Electricity for 400,000 households 40 m water depth 11

12 Commercial OWF completed/under construction ( ) Borkum Riffgat OWF completed (EWE) 30 turbines (3,6 MW) 108 MW, Construction BUT Grid connection delayed until 2014 Borkum West 2 (Trianel) Phase 1: 40 turbines (5 MW) 200 MW Construction , grid connection delays Borkum Riffgrund (DONG) 77 turbines (3.6 MW) 277 MW, Construction Dan Tysk (Vattenfall/SWM) 80 turbines (3,6 MW) 288 MW, Construction

13 Commercial OWF completed/under construction ( ) Helgoland Cluster grid connection delayed Meerwind Süd/Ost - WindMW (Blackstone) 80 turbines (3.6 MW) MW, Construction Nordsee Ost RWE Innogy 48 turbines (6.15 MW) 295 MW, Construction Amrumbank West E.ON Climate & Renewables 80 turbines (3.6 MW). 288 MW, Construction

14 Commercial OWF completed/under construction ( ) Global Tech 1 investor consortium led by SWM 80 turbines (5 MW) 400 MW, Construction Baltic 2 - EnBW (Baltic Sea) 80 turbines (3,6 MW) 288 MW, Construction

15 Offshore Wind Energy in Germany An illustration of initial positive results Positive operational results: - alpha ventus: > full load hours in 2011 (267 GWh) 15 % above expectations, - Baltic I similar results; turbine availability 98 % Important contribution to energy system reliability! 1 billion Euro already invested along the German coast - Port infrastructure, production facilities (offshore turbines/components), construction vessels, (converter) platforms etc. Vast opportunities for maritime industries! > 10 billion Euro investment for Offshore Wind Farms 8 OWP under construction in 10/ ,000 jobs created by 2012 (98,000 jobs in onshore wind) Need for new and adjusted professional and vocational training 15

16 Status & Outlook - Offshore Wind in Germany 3 GW+ unconditional orders 3.5 GW online by 2015/16 Ambitious government targets - 10 GW by 2020; Delays caused by political uncertainty and delays in grid connection! GW by TWh = 15 % of German electricity demand =Total investment of bn by 2030 New growth opportunity for machinery & engineering sector, construction and maritime industries 18,000 new jobs, doubling possible by 2023 Germany strong in R&D, turbine & component technology (5-6 MW turbine developments), port infrastructure development Vast project pipeline (> 30 licensed OWFs, almost 100 in application) 16 16

17 BUT Challenges to meet government targets Regulatory and financing issues (grids!) need to be resolved Long lead times of projects Next phase of OWP investments requires urgent solution of financing issues Infrastructure development and logistics O&M concepts (incl. HSE), Education and training New technology solutions, (environmental) R&D 17 17

18 The German Wind Energy Market Renewable Energies (RE) have a share of 23% (2012) of German electricity consumption. Today, 1/3 of RE comes from wind (onshore) wind will be the main driver for future growth. Gross Electricity Consumption from RE in Germany 20121) Diagramm durch Klicken auf Symbol hinzufügen of renewable energies Prognosis of yearly installed offshore capacity (in GW)1) Prognosis of Electricity Production (in TWh/A) from Wind in Germany2) Sources: 1) BDEW, 2013; 2) DLR, Fraunhofer IWES, IfnE,

19 III. Legal Framework for Offshore Wind Energy Support The for Renewable renewable energy Energy - specifies remuneration, Act - EEGtechnology differentiation since 2000 Issues in the past for offshore wind (prior to 2009) No investments due to insufficient remuneration for offshore wind energy (9,1 ct/kwh) EEG of 2008 (entered into force on 1st Jan. 2009) Increase of initial Feed-in-Tariff (FiT) to 13.0 ct/kwh, plus starter bonus of 2 ct, granted for 12 years after commissionig (if commissioning before 1 January 2016) EEG of 2011(entered into force on 1st Jan. 2012) Compressed FiT: Option to claim an increased initial rate of 19 ct/kwh only granted for 8 years after commissioning, afterwards FiT drops to 3.5 ct/kwh Important boost for investment decisions New issues emerged in 2013

20 III. Legal Framework for Offshore Wind The Electricity and Gas Supply Act (EnWG) Regulates on- and off-shore grid connections in Germany Issues in the past Obligation for private Transmission System Operators (TSO) to enable the connection North Sea: TenneT, Baltic Sea: 50Hertz Grid connection must be on time wind farm initiated process - TSOs had to react Result Delay of grid connections Several reasons for the delay Investment decision requires confirmation on grid connection by TSO TenneT was (and still is?) seriously underfunded for this task Matter of liability for compensation due to delay was unclear Most importantly: Lack of cables and converter stations

21 III. Reform of Electricity and Gas Supply Act (2012) Solution - System Change "Change of paradigm and compensation BFO - Federal Off-shore Grid Plan by BSH (Federal Maritime and Hydrographic Agency) Comparable with a spatial plan for grid connections Identifies cable routes and locations for converter stations Does not regulate the order of grid connections ONEP - Off-shore Grid Development Plan (TSO) TSO sets dates for the connection of the grid Wind farms lose their individual right of connection Confirmed by the Federal Network Agency (BNetzA) Compensation Mechanism 90 % of feed-in tariff in case of delay Starting from 11th day of delay

22 III. Offshore grid connection projects German North Sea Project In operation Capacity (MW) Year of operation alpha ventus BorWin Under construction/ awarded BorWin DolWin DolWin HelWin HelWin SylWin Riffgat Nordergründe DolWin Ʃ built / awarded BorWin2 BorWin1 BorWin4 alpha ventus DolWin1 DolWin3 DolWin2 Riffgat BorWin3 SylWin1 HelWin2 HelWin1 UW Hagermarsch Nordergründe Initial Offshore Grid Structure HVDC cable routes & platforms KS Büttel In tender phase BorWin3, BorWin UW Emden Borssum KS Emden/Ost KS Diele UW Inhausen To be tendered until 2023 according to O-NEP DC-connections Source: TenneT, 2013 KS Dörpen West 22

23 From Plan to Implementation O-NEP (Offshore Grid Development Plan) 10-year Grid Development Plan (2023), plus 20 year perspective (2033) based on Scenarios (TSOs, regulator) 23

24 IV. Study on cost reduction potential for offshore wind launched on 22 Aug in Berlin Partners Commissioning organisations and companies 24

25 Study assumptions: 2 offshore wind scenarios at 3 different sites (North Sea) 25

26 Long lead times for OWF development prior to commissioning require long-term stable framework Idealized Project Schedule Project development Construction Operation Phase Extension of operation Decommissi oning 4-6 Years Construction Permit Financial Negotiations 1-2 Years FID 2-4 Years Commissioning 20 Years 5 Years 1-2 Years Total project lifetime years Prognos/Fichtner 26

27 Development of levelised cost of energy in real terms, example of wind farm B Economies of scale and increasing competiton lead to higher cost reduction potential in scenario 2 27

28 Levelised Cost of Energy (LCOE) < 10 ct/kwh On average, 31 % cost reduction (Scenario 1) to 39 % (Scenario 2) 28

29 Realising cost reduction potentials requires active commitment and participation of all stakeholders Recommendations - Policy and Regulatory Environment Stable legal and political framework conditions Define standards for components and for grid connection (platforms) Simplify certification and permitting criteria Recommendations for Industry towards techology innovation: Optimise plant technologies towards maximum energy yield/operational hours Optimisation of existing support structures and development of new ones Improve installation logistics Intensify R&D efforts Recommendations for Industry to improve efficiency Development of joint installation and O&M concepts Intensified efforts for serial production 29

30 EWEA Offshore 2013 Andreas Wagner Stiftung Offshore-Windenergie German Offshore Wind Energy Foundation

31 r About the event November 2013 Messe Frankfurt, Germany International platform to present latest offshore wind energy products and services Worlds largest offshore wind energy conference with more than 480 exhibitors and over 8200 participants (EOW 2011, Amsterdam) 31 31

32 r Important events with german participation Day1 Tuesday, 19. November: 12:10 press conference & high-level plenary: 2030 targets the magic number? 15:40 CEO Q&A session 16:00 17:30 discussion forum about european energy policies (with German Ministry for Environment) Day 2 Wednesday, 20. November: 11:00 12:30 Making offshore wind less expensive with Prognos 13:00 14:00 press conference German 32Engineering Association and German Offshore Wind Energy Foundation 14:00 19:00 Franco-German offshore wind opportunities workshop 32

33 THANK YOU! Andreas Wagner, managing director Berlin Office Schiffbauerdamm 19, Berlin, Germany Phone: Fax: Varel Office Oldenburger Str. 65, Varel, Germany Phone: Fax: