financing options for brouwersdam in zuid holland

Tidal Power Plant BrouwersdamEIP Action Group Energy & Water Works9 February 2016

Zjev AmbagtsProvince of Zuid-Holland / Project Bureau TPP BD z.ambagts@pzh.nl

2

Table of contents

1. Introduction: water problem, water solution and energy-from-water opportunity- Lake Volkerak-Zoommeer - Lake Grevelingen - > Tidal Power Plant Brouwersdam

2. ‘Multi level governance’; role for European Regions

3. ‘Blending’ of subsidies and finance from NL and EU

3

Delta in South West of Netherlands

4

Envisaged location of Tidal Power Plant Brouwersdam

City of Antwerp

City of Rotterdam

Storm surge in 1953: 1835 casualties

5

1971: Brouwersdam; 1 of 14 Deltaworks

6

Brouwersdam today

7

Water quality/ ecology problem today

8

Negative impact on regional economy (shell fish, tourism, …)

Water solution: restoration of tidal range

9

Integrated design of culvert (water) and tidal power plant (energy from water)

Value of culvert (water):

1. Water quality, under water/ inter tidal ecology Lake Grevelingen

2. Regional economy: shell fishery, recreation, tourism

Added value of integrated design of culvert and tidal power plant:

3. Energy transition: predictable renewable energy, CO2-emission reduction

4. Innovation: cost-effective and fish friendly capture of energy at low tidal range

5. Export potential: showcase for European industry

Opportunity: Tidal Power Plant Brouwersdam

10

‘Multi level governance’Steering Group Tidal Power Plant Brouwersdam

National

- Ministry of Economic Affairs (Energy from Water, Narura 2000)- Ministry of Infrastructure and Environment / Rijkswaterstaat (Water)

Regional

- Province of Zuid-Holland (chair)- Province of Zeeland

Local

- Municipality of Goeree-Overflakkee- Municipality of Schouwen-Duiveland

11

13

Noordzee

GrevelingenN57

bestaande Brouwersdam

combiwand

Duct-turbine

stormschuivenkerende wand

technische ruimtedoorstroom-openingen

grondlichaam

fietspad

Grevelingenbestaande caissons in Brouwersdam

Noordzee

30 meter

NAP +11m NAP+9m

fiets-pad

N57secundaire

weg

NAP -11mNAP -9m

NAP -1m

NAP +0,5m

turbine

storm-schuif

technische ruimte

Modellenteam GCBD 14

Public reference- Culvert of 135 meter long en 40 meter wide- 15 turbines, diameter of 6 meter; 22 MW installed capacity- Energy production: 67 GWh/ year; circa 22.000 household equivalents

Water: € 105-115 million, mainly public budget required

Energy from water: additional costs +€ 75-100 million, mainly private investment/ finance required

Optimum at 25 MW for 25.000 household equivalents

14

Modellenteam GCBD 15

Potential support from Ministry of Economic Affairs (NL) and from European Commission/ European

Investment Bank (‘blending’)50 cm of tidal range; loan 60% at 6% interest; return of investment = 7%

Energy Innovation subsidy NL,up-front

Energy exploitation subsidy NL,first 15 years

Need for additional support from e.g. European Innovation Fund, up-front or during operation

€ 6,0 mln € 0,12 per kWh € 20,8 mln

15

Counting with, not yet counting on …

EFSI loan and/ or guarantee could lower values

Ocean Energy received funding under NER 300

16

Ocean Energy projects € million under NER

MW € million/ MWunder NER

Under NER300:

Sound of Islay, UK 21 10 2.1

Stroma Tidal Turbine Array, UK 16.8 9 1.9

Under ‘Innovation Fund’ (NER400)?

Tidal Power Plant Brouwersdam 20.8 22 0.9

Bargain!

Roadmap2016: arranging public conditions; preparation of public procurement

2017: selection of private consortium water/ energy from water (x -> 3 -> 1)

2018-2019: project development in hybride public-private alliance, decision making on investments

2020 – 2022: construction of culvert/ tidal power plant combination

2022: start of exploitation of tidal power plant

Condition: budget for culvert/ tidal range at Lake Grevelingen in 2016

17

Tidal Technology Center GrevelingendamCertification of turbine technology

Tests, demo’s, certification

Energy 4,5MW

18

Role for European regions (and RWS)• Interconnection of sectoral policies in integral solution

• Teaming-up public and private parties in hybride alliance

• ‘Blending’, financial innovative arrangement:– Energy Innovation subsidy NL– Energy exploitation subsidiy NL– Energy Innovation subsidy EU, e.g. NER400/ Innovation Fund– EFSI guarantee and/ or loan

19