- 1. Overview of the UKs offshore wind energy market Nick Medic Head of Offshore Renewables 22 ndS eptember2011 2011 9 22
Sponsors: 3. RenewableUK RenewableUK
- The voice of wind and marine energy
- 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
- Technology is available NOW, at the scale required: We can achieve Government scenario of 18GW by 2020
- Experience already exists, and is growing daily: 487 turbines built, 1,524 MW installed
6. Further reasons to build offshore
- Securing UK energy supplies:
- Currently, 75% of UKs electricity comes from coal and gas, half of it imported.
- Climate Change Act calls for 80% carbon emissions reduction by 2050.
- 88,000 jobs will be created by 2020.
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.
- 1.5 GW built+ 2 GW in construction
- 1.7 GW consented + 1.9 GW in planning
- 32GW Developer Commitment (leased)
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:
- Alstom, Samsung, Hyundai, Goldwind, Sany, Nordex, Doosan, Darwind XEMC, Daewoo, Sinovel
- 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
- Scope for reducing costs: Govt target of100 MWh
12. Support of offshore wind
- Chief mechanism: Renewable Obligation Certificate (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 2017 chief mechanism
- Contract for Difference (CfD):
- The subsidy will be the difference
- between wholesale price of MWh
- and the level at which tariff is set
13. Thank you
- Nick Medic, Head of Offshore Renewables