building an offshore wind supply chain

© Siemens 2013 All rights reserved.

Building an offshore wind supply chain

Matthew Knight, Director Business Development UK Offshore Wind

http://www.siemens.co.uk/round3

© Siemens 2013 All rights reserved.October 2013 Matthew Knight, Siemens EnergyPage 3 October 2013 Matthew Knight, Siemens EnergyPage 3

A summer of offshore wind openings

Michael Fallon,Energy MinisterGreater Gabbard 7th August

Nick Clegg, Deputy PMLincs 1st August

David Cameron, PMLondon Array 4th July 2013

Ed Davey,Energy and Climate ChangeSecretary, Walney 9th Feb 2012

Greg Barker,Climate Change MinisterGunfleet Sands 3, 12th September

Cameron positive on Siemens in Hull Sunday, 29 September BBC 1 (Sunday Politics)

He also vowed to "keep pushing away" at securing Siemens' investment in the city, saying he "won't rest" until the "first foundations of the factory are laid.“Hull Daily Mail Monday 30th Sep

“GET REAL, the idea that we can move forward with this wind farm expansion, and have 80% of these installations manufactured abroad is simply not viable in the longer term” ReCharge 13th September

© Siemens 2013 All rights reserved.October 2013 Matthew Knight, Siemens EnergyPage 4

UK now has more Offshore Wind than RoW put together 1,075 wind turbines, 3.65GW *

UK has world’s biggest offshore wind pipeline ≈50% of EU total

Q2 2013 15.5% UK electricity came from renewables and 7.5% from wind **

18,000 UK jobs now and 70,000 by 2023 ***

* Renewable UK data

** Department of Energy and Climate Change “Energy Trends”

*** Renewable UK wind, wave and tidal sector

The UK’s best renewable opportunity?

UK 51 GWDE 37 GWF 6 GWNL 5.9 GWDK 5.4 GWES 6.8 GW

ROI 4.2 GWFIN 4.5 GWBE 2.3 GWIT 2.8 GWPOL 8.3 GWGR 4.4 GW

EWEA figures from Feb 2013

Europe’s offshore wind plans

Sea Installer with Siemens 6MW wind turbine at Gunfleet Sands, Feb 2013

16


Cost reduction and local jobs

Wind costs have fallen 45% each decadeWe need to go fasterAs well as separate manufacturers’ initiatives there is a UK Government & industry wide approachJune 2012 Crown Estate Offshore Wind PathwaysJune 2012 DECC Offshore Wind Taskforce

Cost of energy can reduce 1/3 by 2020Subject to rate of deployment

Oct 2012 DECC Offshore wind Programme Board – treat this like a business project

MV Resolution installing a Siemens 3.6MW wind turbine at London Array


Offshore parts are larger


One off chance to get manufacturers to locate here

Concept for proposed Siemens Facility, Hull


What to do we need to make this happen for the UK?

Commitment

Economic Value

Confidence


UK Policy – Energy Bill, EMR Delivery Plan,Industry Strategy

The UK must spend c£110Bn on replacement electricity generation

in the next decade*

Energy Market Review aims to reduce investor risk so this can be

borrowed at the lowest cost

Government doesn’t want to pick winners and is sending some

mixed messages

100gCO2/kWh central scenario:

45-55% low carbon by 2030, a mix of

• Carbon capture and storage

• Nuclear

• Offshore wind

“The market will decide”

But 200gCO2/kWh scenario implies wind industry stops in 2020*The energy challenge – New Infrastructure DECC You Tube

London Array, April 2013


What’s in the Industry Strategy

Notes the importance of scale to attract investment andreduce cost.. ..then never refers to it again.

Assigns lead roles• Offshore Renewable Energy Catapult - co-ordinating technology innovation• GROW Offshore Wind service – £20m funding for MAS to help SMEs enter the industry• Offshore Wind Investment Organisation – help inward investment• NORSTEC – public communication of benefits• Renewable UK – publish timeline for projects• OW Programme Board – manage the industry’s cost reduction effort• OW Industry Council – chaired by minister oversees all the above

• Businesses will invest when they believe there is a market

Stanislav Yudin lifting one of 2 Siemens built 2,000 tonne offshore substations into place at Gwynt y Mor

building an offshore wind supply chain

Documents