Renewabe uk

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  • 1. Overview of the UKs offshore wind energy market Nick Medic Head of Offshore Renewables 22 ndS eptember2011 2011 9 22

2. RenewableUK

  • 700 Company members
  • 700

Sponsors: 3. RenewableUK RenewableUK

  • The voice of wind and marine energy
  • Roles:
    • Industry Forum
    • Represent industry to Government
    • Represent industry to the media

4. Why build offshore? Huge & readily extractable energyresource Huge: 1GW= 300 turbines = 3066 GWh per year = 700,000 homes : 1GW = 300 =3066 GWh = 700,000 @ load factors of 35% - 40% = equal to hydro power (historic) @ 35% - 40% = UK total development pipeline 45GW = 138TWh = 43% of UK total supply 45GW = 138TWh = 43% 5. Readily extractable!

  • UK seabed particularly suited to development:
  • Water depths 20 meters even as you go further offshore
  • 20
  • Technology is available NOW, at the scale required: We can achieve Government scenario of 18GW by 2020
  • 2020 18GW
  • Experience already exists, and is growing daily: 487 turbines built, 1,524 MW installed
  • 487 1,524 MW

6. Further reasons to build offshore

  • Securing UK energy supplies:
  • Currently, 75% of UKs electricity comes from coal and gas, half of it imported.
  • 75%
  • Fighting Climate Change
  • Climate Change Act calls for 80% carbon emissions reduction by 2050.
  • 2050 80%
  • Jobs and investment
  • 88,000 jobs will be created by 2020.
  • 2020 88000

7. Development process: the Rounds : Resource developed through a series of Rounds 3 so far. Each Round started with identifying sites, then allocation and leasing, and finally development and construction. Round 1: near shore1 GW 1:1GW Round 2: more ambitious7 GW 2:7GW Round 3: the biggest32 GW 3:32GW 8.

  • Rounds 1&2
  • 1 2
  • 1.5 GW built+ 2 GW in construction
  • 1.5GW + 2GW
  • 1.7 GW consented + 1.9 GW in planning
  • 1.7GW + 1.9 GW
  • Round 1&2 Extensions
  • 1 2
  • 1.5 GW
  • Round 3
  • 3
  • 32GW Developer Commitment (leased)
  • 32GW( )
  • Scot. Ter. Waters
  • 5 GW

Source: The Crown Estate Capacity: : 1.5 GW now 1.5 GW 8 GW by 20162016 8 GW 18 GW by 20202020 18 GW As share of electricity (approx): 1% now 1% 8% by 20162016 8 % 17% by 20202020 17% Current status and projections 9. UK leading Europe and the world Source: EWEA Data Sheet Offshore Wind Energy 2010 2010 10. Business opportunities

  • Investment announcements:
  • :
    • Siemens
    • Vestas
    • Gamesa
    • Mitsubishi
  • Interest in the market:
  • :
    • Alstom, Samsung, Hyundai, Goldwind, Sany, Nordex, Doosan, Darwind XEMC, Daewoo, Sinovel
    • Darwind
  • Component opportunities:
  • :
    • Gearbox, Generators, Brakes, Blades, Pitch Systems, Transformers, Power Converters, Hydraulics, Bearings, Composites, Housings

11. Practicalities: Costs of Energy

  • Cost of offshore electricity currently: approx. 150 per MWh
  • 150
  • Scope for reducing costs: Govt target of100 MWh
  • 100

12. Support of offshore wind

  • Chief mechanism: Renewable Obligation Certificate (ROC)
  • : (ROC)
  • For each 1 MWh of electricity generated, offshore wind farm gets 1 ROC, to sell on.
  • Buyers are electricity utilities which have an obligation to source a % of electricity
  • from renewables.
  • ROC
  • From 2017 chief mechanism
  • 2017
  • Contract for Difference (CfD):
  • (CfD) :
  • The subsidy will be the difference
  • between wholesale price of MWh
  • and the level at which tariff is set

13. Thank you

  • Questions and Answers?
  • Nick Medic, Head of Offshore Renewables
  • Nick Medic,
  • [email_address]
  • [email_address]