financing options for brouwersdam in zuid holland

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Tidal Power Plant Brouwersdam EIP Action Group Energy & Water Works 9 February 2016 Zjev Ambagts Province of Zuid-Holland / Project Bureau TPP BD [email protected]

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Page 1: 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 [email protected]

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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

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Delta in South West of Netherlands

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Envisaged location of Tidal Power Plant Brouwersdam

City of Antwerp

City of Rotterdam

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Storm surge in 1953: 1835 casualties

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1971: Brouwersdam; 1 of 14 Deltaworks

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Brouwersdam today

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Water quality/ ecology problem today

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

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Water solution: restoration of tidal range

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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

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‘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

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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

Spiering, Ben (WVL)
Voorstel: 1) deze lijn continueren en bij BOK 2 opnieuw bezien 2) uitwerking governance: POS stuurt op scope en realisatie programma en SG GCBD stuurt op condities voor opname GCBD in scope programma en marktbenadering
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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

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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

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Counting with, not yet counting on …

EFSI loan and/ or guarantee could lower values

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Ocean Energy received funding under NER 300

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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!

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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

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Tidal Technology Center GrevelingendamCertification of turbine technology

Tests, demo’s, certification

Energy 4,5MW

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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

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