Engineers Ireland Cork Region

“ISLES Study and Main Findings”

www.islesproject.eu

Project Brief

To examine the feasibility of developing an offshore interconnected transmission network - via a subsea electricity

grid - linking potential renewable energy sites, off Western Scotland, Northern Ireland & Ireland

Funding - Interreg IVA Program Priority 1:� Co-operation for a more prosperous cross-

border region.• encouraging innovation and

competitiveness in enterprise and business development;

• promoting tourism;

Priority 2:� Co-operation for a sustainable cross-border

region • Promote cross-border co-operation in policy

development and• Improve access to services to promote the

quality of life for those in the eligible area.

Stakeholder Consultations

ISLES – Study Road Map

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ISLES Objectives

• Establish a credible marine resource that could be developed post 2020 comparable with technology maturity and market expectations for scale and timing

• Develop realistic credible concepts for an ISLES transmission network within the context of future offshore and onshore transmission capacity, environmental considerations, available technology cost and potential supply chain limitations

• Test the technical and economic feasibility of ISLES in relation to energy policy, planning and licensing/consenting regimes, regulatory and infrastructure scenarios and identify key sensitivities

• Inform government and industry thinking on policy and market changes required to facilitate and streamline the development of such a network in a techno-efficient manner

ISLES Resource Assessment• Resource Assessment based

on interpretation of best available data (existing and ongoing studies)

• Considers West Coast Scotland and All Island.

• Combination of existing development and potential development

ISLES Resource Assessment• Approximately 16GW

considered within ‘notional’ ISLES Development Zone and ISLES Timeline

• Considers Wind, Wave and Tidal

• Short to medium-term focus on offshore wind

Tidal Resource

Wave Resource

Wind Resource

ISLES Concept Selection - Objectives

• Demonstrate technical feasibility and economic viability under arange of energy policy, regulatory and infrastructure scenarios;

• Test the fundamental premise of an integrated offshore system connecting multiple offshore resources to the onshore network(s);

• Consider in the context of the potential generation & infrastructure landscape at different points in the future;

• Focus on cross jurisdictional Regulatory and Legislative implications;

Southern IslesConcept

Northern IslesConcept

Technology & Infrastructure

Key ISLES Technology Areas

• Identification of requirements;

– Development of a technology road map to identify where any potential restrictions may exist either on the supply chain or technical capability

• Offshore Transmission

• Offshore Substations

• Subsea Cabling

• Onshore Connection

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Technology Assessment Methodology

• Development of a technology roadmap for the ISLES concept network

• Identify key technology requirements and assess status of development, maturity, and readiness for the project development

• Engage with key technology supply chain

Deployment

• Involves some significant offshore platform sizes and sub sea cable lengths

• Offshore HVDC Platforms are within offshore lift capabilities

• Cable lengths are significant and given sea-states it is likely that full installation vessels may be required

• Weather down-time may be significant (20-40%)

Deployment

• Sea-bed conditions indicate that plough burial is feasible

• Trenching of bundled bi-pole cables needs development to reduce operational risk

• Some mattressing may be required where burial infeasible

Technology & Infrastructure Conclusions

• There are no technological barriers to the development of an ISLES offshore network

• High Voltage Direct Current (HVDC) using Voltage Source Conversion (VSC) is a suitable transmission system for ISLES offshore networks

• There is sufficient onshore capacity in UK on the scale and within the timescale envisaged

• The ISLES offshore network design allows for shared construction

Planning and Environment

Objectives of the Environmental Constraints Exercise

The analysis considers:

– A detailed overview of the environmental baseline for the ISLES Concept study area within which the three jurisdictions lie;

– The spatial environmental data which will inform the development of a transmission network;

– The environmental constraints visually on a constraints map to assist with identification of key areas that would require further assessment; and

– Key environmental issues in relation to the development of the ISLES Concept.

Environmental Assessment approach and methodology

• Data collated in Geographical Information Systems (GIS) spatial mapping format

• Data currently available from:– Seazone;

– Scottish Marine Renewables SEA (2007);– Offshore Wind and Renewable Energy in Northern Ireland SEA (2009);– Offshore Renewable Energy Development Plan for Ireland (2010); and

– Offshore Wind Energy in Scottish Territorial Waters SEA (2010), among others.

• Spatial mapping allows the interplay of the environmental constraints in the study area to be more easily assessed and also facilitates spatial analysis of environmental constraints as a backdrop to the ISLES Concepts.

Environmental Constraints Assessment

• Marine birds• Marine animals• Benthic ecology

• Fish and shellfish• Commercial fisheries including marine

fish farms

• Shipping and navigation• Seascape• Recreation and tourism

• Marine and coastal historic environment• Onshore grid connections• Protected species

• Geology• Seabed contamination and water quality• Disposal areas

• Cables, pipelines and other communication infrastructure

• Military exercise areas

• Electric and magnetic fields• Highlight areas where there is a gap in

available information

Example of GIS spatial mapping used: -

Predicted Marine Habitat Types

Concept Corridor overlaid onto the cumulative impact assessment spatial map

Key Conclusions• No significant adverse environmental constraints that cannot be adequately

mitigated through modifications to:– Routing, – Positioning – Best practice Construction and Operation/Maintenance Activities.

• Strategic Environmental Assessment would be required as the ISLES project moves to the next phase

• Cumulative impact of Grid and generation projects will require further analysis

• Co-ordination and conscientious timing of build (Grid and Generation Projects) has the potential to mitigate against total and cumulative impacts

Key Conclusions

• Landfall points throughout the three jurisdictions have significant constraints due to flora and fauna protected areas and the amenity value attached to the coastline.

• At a site specific project scale the routing of the ISLES Concept to landfall points and the identified substations will require detailed environmental assessment, mitigation and the application of best practice methods during planning, construction and operation.

• Significant data gaps exist and not all datasets are directly comparable and compatible.

Scope and Activities of Planning Review

DCENR Consultation Workshop– 24th Aug 2010

– What Planning procedures, approvals, consents and licences would be required in order to facilitate ISLES? Do they meet theneeds of the development?

– What upcoming policies at regional, national and local level arerelevant to the scheme and could pose a constraint to development?

• Complicated Cross-jurisdictional Process – Changing Rapidly

• Marine context changed significantly for the better during study - particularly for Scotland and Northern Ireland relating to:– More co-ordinated and consolidated marine licensing systems;– Marine planning framework (with Marine Plans);– Mechanisms to promote integrated decision making.

• In Republic of Ireland similar provisions are anticipated in the short term (with an opportunity to adapt / adopt similar mechanisms to those of Scotland and Northern Ireland)

A Changing Landscape

Ireland

Existing Planning & Consents Systems

Northern Ireland

Scotland

Environmental (Consenting) Considerations

• Certain environmental activities would assist in providing a more consistent cross-jurisdictional framework:

– Preliminary Strategic Environmental Assessment (SEA)

– Review Environmental Impact Assessment (EIA) legislation, inclusions and thresholds.

– Streamlining of EIA standards

– The designation of Natura 2000 and other sites is an on-going process and needs to be monitored, co-ordinated and transparently delivered

Changing Policy Context for ISLES

• Ongoing change in International, EU, National, Regional and Local Policy being with potential relevance to ISLES

• Promote ISLES at European Level, where possible, in appropriate energy, transboundary and environmental policy, guidance and other relevant documentation

• In addition to security of supply and contribution to renewable energy targets etc the commercial focus of ISLES needs to be acknowledged and promoted in policy

Planning & Environment ConclusionsPlanning & Environment

• There are no significant adverse environmental constraints to routing, positioning and construction although the landfall points will present challenges

• Co-ordination of build under an integrated network has the potential to reduce overall environmental impacts

• Due to the cross border nature of ISLES, there are particular challenges in navigating both complex and evolving onshore / offshore planning and licensing regimes across three jurisdictions

• Anticipatory Applications and Investment will pose difficulties for both ISLES development and the regulatory authorities/responsible bodies.

Regulation & Business Case

Status Quo

Key Issues

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Alternative models (1) – ‘Unified’

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Regulatory Conclusions

• General movement towards harmonisation of markets in GB and SEM in alignment with EU Directives is removing regulatory barriers towards implementation

• ISLES has an opportunity to be a flagship project in the development of a pan-European market for renewable energy

• This work provides a body of evidence to move industry thinking forward and identify pathways for future regulation

• The cross jurisdictional nature of ISLES creates significant complexity across multiple regulatory authorities

Regulatory ConclusionsKey policy / regulatory areas to be addressed to allow ISLES become a reality:

• Create some form of anticipatory investment model for co-ordinated offshore build to allow phased build and commitment to future phases to support generation investment

• Develop regulatory model which redefines the fundamental distinctions between interconnection and connection for offshore generation

• Explore an approach to subsidies where they are paid for by the consumer state rather than the state generating the energy

• A transmission pricing regime which is seen to be equitable and affordable for generators while ensuring offshore network owner earns sufficient return

• Developing an approach acceptable to EU for cross border contributions to meeting targets

Regulatory Conclusions

The impact of Electricity Market Reform (EMR) in UK could have three significant impacts on ISLES business case:

• Replacement of Renewables Obligation Certificate (ROC) with Feed In Tariff (FIT)

• Introduction of the carbon price floor which will push up wholesale prices in the UK thus reducing the level of FIT subsidy but potentially reducing Anglo-Irish interconnector revenues

• Potential introduction of a single buyer for renewables which might have positive benefit for increasing investor certainty

Economics and Business Case ConclusionsEconomics & Business Case (1)

• ISLES Capex is of order of £5.6 billion for combined Northern and Southern ISLES equating to circa £1 million / MW of offshore network capacity

• Level of subsidy required for generation connected to ISLES to be bankable is in region £79 – 85 / MWh equivalent to 1.8 – 1.9 ROCs

• ISLES combines interconnection and generation and thus a case can be made for benefits by increasing the utilisation of the network – thus saving approx £170 million per annum for Southern ISLES. This reduces subsidy to £74.5 / MWh.

Economics and Business Case Conclusions

ISLES network Capex is broadly of same order of magnitude potentially 15 – 20% higher than comparable stand alone projects under UK Government Round 3 Offshore Wind Development process but with added economic and market benefits:

• Enhanced network availability provided by integrated network build to reduce generation developer risk and subsidy costs

• Additional interconnection benefit to share amortised capital cost between interconnection users and generators

• ISLES presents opportunity to access EU grant / funding at potentially lower cost of capital than alternative schemes which do not qualify

• Interconnection element allows both Irish jurisdictions to develop renewable generation which otherwise have to identify an alternative route to market

General ConclusionsRoadmap for Implementation

• ISLES will create the legislative, regulatory and technical framework to harness our renewable ocean energy to the greatest realistic extent

• The necessary legislative and regulatory mechanisms in the three jurisdictions need to be planned in a consistent joined-up manner

• On grid infrastructure more detailed work is required on system architecture, load factors and cost estimations

• Regulatory regime needs reconfiguration as recommended

• We need the necessary port and other supply chain infrastructure deployment needed to service the ISLES ambition

Thank You

jim.gannon@rpsgroup.com

http://www.islesproject.eu/