NIAGARA REGION WIND FARM. By Hugues Girardin and Michael Weidemann. ENERCON Forum 2016 The Global Energy Revolution November 16, 2016

Transcription

1 NIAGARA REGION WIND FARM By Hugues Girardin and Michael Weidemann ENERCON Forum 2016 The Global Energy Revolution November 16, 2016

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3 Timeline 2009 Renewable Energy Business (REB) Begins development on the Niagara Wind Project 2010 REB applied for 230 MW on a Transmission line left idle when manufacturing in Niagara region is abandoned 3

4 Location The Project is located in Niagara Region, Ontario, Canada. 4

5 Location Within the Townships of West Lincoln, Wainfleet, and the Town of Lincoln in the Niagara Region and Haldimand County in Southern Ontario. 5

6 Timeline 2011 Feed in tariffs (FIT) contract is awarded 50% Domestic Content Required as condition of PPA Consultations begin with members of the public and municipalities Renewable Energy Approval (REA) process is launched (regulatory environment requirement) All host municipalities (4 lower tier and 2 upper tier) vote to become unwilling hosts 2012 ENERCON is selected as preferred turbine vendor for second largest wind FIT contract in Ontario. ENERCON commits to deliver tower (124m hybrid) manufacturing facility and electronic component assembly 6

7 Project description A 230 MW wind power project 52 participating landowners Technical details: 77 Turbines, E101, 3 MW, 124 m 2 substations, 1 interconnection facility 44 km transmission line 217 km collector system Over 290 individual Transmission Line poles Over 5 km of buried 115 kv Transmission Line 7

8 124 m Size Largest project in the Niagara Region New model of wind turbine: Enercon E-101 Or 9 buses of 13.5 m each 8

9 Timeline Main provincial permit REA is submitted to the provincial government. Expected time: 6 months Ministry of Environment and Climate Change approves 18 months later due to complexity of project NRWF runs process to sell project All major international IPPs conduct DD on project Process drags on as NRWF and IPPs cannot come to an agreement based on risk and commercial terms Sale process fails at the end of

10 Timeline 2015 Q ENERCON steps in and takes control of the project Q ENERCON selects Boralex to take lead on development Project needs to be in service before November 15th, 2016, less then 18 months left 10

11 Timeframe March 2017 Development by NRWF PPA Acquired by Enercon Boralex due diligence Boralex becomes involved NRWF timeframe: 1.5 years Regular timeframe: 4 years 11

12 Getting organized to work in team Quality and management plan What are we trying to achieve? Define Key performance indicators What risk are we taking? How do we mitigate them When do we meet? Who takes decisions? Management committee Role and responsibility Limit of approbation Reporting 12

13 Organization chart 13

14 Timeline 2015 Q Borea Construction is selected as main BOP / Erection contractor for the project Q NRWF elects to include Six Nations of the Grand River as a 50% equity partner in project and create the following structure 14

15 Team and roles Project Management Construction Management & Logistics Turbine Supplier Financing Project Development Community Relations Project Management Operations Financing Project Owner Host First Nations community Renewable energy supporter 15

16 Standard permits More than 3000 permits were required for : Constructing the Wind Turbines 600 Base, turbine, collector system, etc. Building the Transmission Line 500 ROW access, geotechnical, etc. Transportation of components conservation authority permits Compliance with 40 conditions regarding the Niagara Escarpment permit a sensitive ecological area 16

17 Other permits NRWF had to renegotiate many land owner agreements NRWF negotiated permits to allow construction of our transmission lines in the way of a proposed 6-lane highway that was unknown by original developers and by NRWF staff until 6 months prior to start of construction. NRWF negotiated half load season waivers to allow construction during prohibited periods NRWF negotiated exemptions of time of day bylaws to allow construction to take place during night time. NRWF successfully negotiated Force Majeure with IESO, the PPA provider, therefore extending the possible cliff date of the project to March

18 PCT factory Temporary PCT factory in the region in order to fulfill the local content requirements of Ontario Joint effort of several ENERCON teams and a local service provider Reactivated an old shipyard and renovated it from April to July 2015, construction of new floors, install heating, repair cranes Production start in August 2015, end in May

19 PCT factory At peak 55 segments a week with 150 workers Production ran through winter with winterized batch plant and a heated tent for the curing process Very limited storing capacity due to size of plant and winter Numbers: 7,700 tons of rebar 3,003 PCT segments and transport 19

20 Central Laydown and Storage Area Project size, logistic constraints and tight timeline required local storage area St. Lawrence Seaway is closed from December to March and the central storage allowed to store enough materials to continue working at full speed throughout winter minimal waiting time at site (as little at 30 minutes for a component to arrive to site from the quarry), limited claim opportunity for sub-contractor 12/2015: Storage of 46 WECs at the quarry 03/2016: At reopening of shipping lanes, only 2 WECs left at storage with all others delivered to site over the winter. 20

21 Central Laydown and Storage Area For the storage yard we found and rented a used quarry with its own shipping dock Storage yard also helped to fix any quality issues at yard prior of delivery to site Allowed also for steady use of road permits Numbers 38 acres of storage or approximately 152,000 m2 100 containers for tools and material management 22 deliveries for each WECs, i.e. the quarry had over 1000 loads in storage Temporarily it stored 25 steel towers Total of 1,155 WEC transports 21

22 Accelerated Pre-commissioning Dates End of July th WEC installed End of September 2016 grid connection End of October 2016 planned commercial op. date Accelerated commissioning allowed for a staged process with a much faster result. Pre-commissioning Rate was approx. four / week from May through August. 5-day activity, which was done as installed WECs became available 1st pre-commissioning was finished on December 25th, th pre-commissioning was finished at the start of September

23 Accelerated commissioning Commissioning 10 teams on site with a ratio of 2 days per tower, i.e. 5 towers per day Total duration: Less than three weeks (in comparison: Vents du Kempt, 43 WECs, 10 weeks for final commissioning) 23

24 Timeline 2016 January Financing of the project starts with multiple lenders. October Financing closes for the project for C$ million. KFW-Ipex MUFG La Caixa ABN Amro LBBW DZ Bank * Covered loan by Euler Hermes, the German export credit agency 24

25 Costs and Benefits INVESTMENT $750 MILLION of capital SHARED REVENUE WITH THE LOCAL COMMUNITY through community development funds INCREASE TAX REVENUE OVER $5 MILLION for local communities GENERATING 700 JOBS during the 3 year construction period CREATING 25 JOBS during the 20 year operation period 25

26 Conclusion 2016 Commercial Operation Date is expected to be confirmed this month for November 2 Project team has been able to: Build a PCT facility and comply with all Local Content requirements Deliver and install this whole class project despite the Nordic conditions and the complexities of the host environment On time on budget! 26

27 Thanks to all teams! Trust, Teamwork & boralex.com