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From pioneering to industrializing offshore wind: Lessons learned from Horns Rev II

Stockholm, September 14th, 2009

Contents

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Offshore wind challenges and DONG Energy introduction

Key lessons learned from HRII and key steps in industrializing offshore

DONG Energy – an introduction

DONG Energy is one of the leading energy companies in Northern Europe

We are headquartered in Denmark. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe

DONG Energy has app. 6,000 employees and had a turnover of more than DKK 60 billion in 2008

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0200 04 10090701 03 0805 06Total

Total

DONG Energy has pioneered offshore wind

DE share (2009)

90 45Barrow

40 20Middelgrunden

165 133Rødsand

160 64Horns Rev I

90 0Kentish Flats

173 173Gunfleet Sands I & II

90 90Burbo

209 209Horns Rev II

1018 734

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MW

Constructed 551 MW of the current appr. 1 GW offshore capacity

Building the worlds largest offshore wind farm to date (HRII)

DONG Energy holds a substantial offshore wind pipeline – under construction and planning

* Figures represent DONG Energy's share of the projects

Offshore wind projects under construction (1063 MW)

Offshore wind projects under engineering/planning (more than 1,500 MW)

Borkum Riffgrund I(134 MW)*Borkum Riffgrund II(388 MW)*

Horns Rev II (209 MW)

Walney I+II (367 MW)

London Array I (315 MW)*

Walney III(180 MW)

London Array II (185 MW)*

West of Duddon Sands (165 MW)*

Westermost Rough (240 MW)

Wigtown Bay (280 MW)

Gunfleet Sands I+II (172 MW)

More than 1000 MW offshore wind under construction

Pipeline to ensure growth past 2013

Furthermore, offshore pipeline could be strengthened from DK offshore tender, UK round 3 and other licences

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Offshore wind in the EU is expected to see high growth rates over the coming decades

6Source: "Pure Power", EWEA March 2008

Offshore wind is still more expensive than onshore – and the renewable technologies are more expensive than thermal

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143

107100

Coal Gas Onshore

172*

Offshore

* Of which 5-10% covers export cable and substationSource: Poyry Energy Consultants, DONG Energy estimates on full load hours

Index: coal=100; 2010 forward fuel prices (May 2009)

Contents

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Offshore wind challenges and DONG Energy introduction

Key lessons learned from HRII and key steps in industrializing offshore

The installation process can be divided in many intra-linked processes

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Synergies between parks

Geotechnical exploration

Scale advantages on vessels

Installation of foundations

Improvement of design Optimisation of installation process

Installation of WTG Standardisation of installation concept Optimisation of installation process

Commisioning Repeated use of generator Optimization of transfer vessels

Cable installation Optimisation of installation concept Integration of cable and WTG installation

Substation installation

Standardisation of design Scale advantages in procurement

Onshore grid connection

Scale advantages in procurement

HR II: The project and key lessons learned

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Project Details

Generating capacity 209 MW

91 Siemens 2.3 MW turbines

CAPEX milDKK 3,500

35 km2 wind farm area

Water depths between 9 and 18 meters

Tidal range up to 1.2 meters

Average wind speed 9.7 m/sec.

Synergies with earlier projects

2.3 MW WTG employed again

Same installation vessel used

Layout optimised  

Applying the same turbine enhances the learning curve for installation

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# of WTGs

Installation time

CONCEPTUAL

Future desired state

WTG INSTALLATION

0 7520

Time-saving potentialCurrent HRII

experience

Strict monitoring on progress can ensure correction of time-table delay

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ILLUSTRATIVE EXAMPLE

WTG INSTALLATION

100%

0%

Actual % complete

Planned % complete

Weeks

Progress

Horns Rev 2 – Installation progress curve

Next step: Pipeline approach in order to capture synergies

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Operational issues in installation

Sourcing component packages, incl. interfaces

WTG installation Foundation installation Array and export cable

installation Commissioning Test and hand-over

Scale advantage in sourcing Improved planning – interface management and installation flow Minimizing risk – leveraging technical learning curve

Smooth production cycle

MW

Years Years

CONCEPTUAL

Horns Rev 1 offshore wind farm, Denmark

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