Supporting Innovation in the Supply Chain

Transcription

1 Supporting Innovation in the Supply Chain The Offshore Wind Accelerator Benj Sykes

2 About the Carbon Trust An independent company set up by government in 2001 Our mission: To accelerate the move to a low carbon economy

3 The Carbon Trust aims to accelerate the move to a low-carbon economy We cut carbon emissions now By providing business and the public sector with expert advice, finance and accreditation By stimulating demand for low carbon products and services We cut future carbon emissions By developing new low carbon technologies through project funding and management, investment and collaboration By identifying market barriers and practical ways to overcome them

4 EU targets could require 40% of UK electricity from renewables by 2020 OFFSHORE WIND Source: BERR Energy Consumption Tables; BCG analysis

5 We need up to 29GW of offshore wind: a big challenge but a big opportunity too UK likely to need 29GW offshore wind by 2020 This is technically feasible but very challenging and urgent action is required Potential for up to 70,000 jobs and 8bn revenues if UK takes leading role Actions required 1. Reduce costs by 40% ( 75bn to 45bn) Make economic sites available Reduce technology costs through innovation Carbon Trust report on Offshore wind power October Provide sufficient returns for developers via an efficient incentive mechanism 3. Invest in supply chain via coordinated Government support for UK technology clusters 4. Remove regulatory barriers to deployment (e.g. grid access, planning)

6 The UK has by far the most economic wind resources of all EU countries Ireland Denmark Sweden France Norway Spain Germany Greece Finland Other EU UK ,000 1,500 2,000 2,500 3,000 3,500 4,000 Economic wind potential (TWh) Source: European Environmental Agency (EEA), 2009 Economic assumes average production cost lower than 55/MWh

7 29GW will require a build rate similar to coal in the 1970s and gas in the 1990s GW/yr Coal: 28GW / 160 TWh Power generation capacity additions ( ) Gas: 26GW / 120 TWh Source: LEK Consulting, Renewable Energy Framework March 2006, BCG Analysis Offshore Wind 1 : 29GW / 90TWh

8 Improving OW returns requires cost reductions and optimal site availability Weak commercial returns (8% IRR) High levels of public subsidy 16bn Stronger commercial returns (18% IRR) Lower levels of public subsidy 14bn 75bn Focus of Offshore Wind Accelerator 45bn Current expectation Optimal site availability Cost Reductions Achievable goal Source: BCG, Carbon Trust

9 The Offshore Wind Accelerator (OWA) Objective: To reduce cost of energy from offshore wind ( /MWh) by 10%+ through targeted R&D and demonstration activities Collaboration between the Carbon Trust and five major developers Launched October 2008 Total planned spend of ~ 30M Phase 1: Feasibility Studies running to early 2010 Phase 2: Demonstration Projects running to 2013/2014 Complementary to DECC and ETI offshore wind activities

10 Offshore Wind Accelerator: focus areas 1) Offshore foundations Develop and demonstrate novel forms of wind turbine foundation with potential for lower lifecycle costs (up to 30%) than designs currently in use, focussing on deep water sites typical of Round 3 zones Stimulate the supply chain, particularly in volume manufacturing and installation, to provide more competition and flexibility within the market 2) Access, logistics and transportation Develop and demonstrate novel access systems for wind farm construction and operation that are both economic and safe, to maximise turbine availability Focus on the challenges of operations for late Round 2 and Round 3 sites

11 Offshore Wind Accelerator: focus areas 3) Wake effects Improve wake effects analysis tools to improve the accuracy of yield assessment, allowing optimised layouts and financing cost reductions Use real operational performance data from partners 4) Electrical systems Develop and demonstrate opportunities to maximise the efficiency of offshore wind farm electrical systems, minimising losses in both the intra-farm array and transmission to shore Evaluate options for improving the cost-effectiveness of deploying optimised electrical systems

12 Phase 2 will involve various demonstration projects with different funding consortia Phase 1 Phase 2 Foundations 1 Foundations 2 OWA Partners 1. Foundations 2. Wake Effects 3. Offshore Access 4. Electrical Systems Foundations 3 Wake Effects Access System Electrical System

13 OWA in context We are supporting innovation in four key areas...from a list of 73 possible technology areas All aspects of the supply chain will benefit from innovation and development Turbines, cabling, O&M Construction/Installation

14 Supporting innovation in the UK The Carbon Trust Offshore Wind Accelerator Applied Research grants The Energy Technologies Institute (ETI) Helmwind Deepwater NOVA DECC 20m Offshore Demonstration Fund Regional Development Agencies

15 In summary EU renewable targets suggest the UK needs as much as 29GW of offshore wind capacity by 2020 Coordinated action is being taken to make this happen, including focus on reducing costs through public/private funding for technology innovation The Offshore Wind Accelerator has identified key opportunities for cost reduction in low cost foundations, access systems, wake effects and electrical systems The Carbon Trust is just one of a number of UK organisations offering funding, facilities and other resources for technology innovation in the offshore wind supply chain

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17 For Further Information _business/env_trans_fund/wind_demo/wind_demo.aspx

18 System design Novel, low cost, floating installation

19 System re-design from blade to grid connection Low cost Low maintenance

20 Latest news: offshore foundations competition attracts strong response Over 100 submissions to our global competition to find most innovative foundations design concepts Best 7 concepts selected based on: Manufacturing costs Transport and installation costs Potential for volume cost savings Structural durability Maintainability and turbine accessibility Decommissioning feasibility Up to 3 foundation design concepts will be taken through to large-scale demonstration (Phase 2)

21 System level feasibility study Integration of aerospace and marine engineering Rugged, stable structure Improving maintenance