Lessons Learnt from European Offshore Wind: 1999 to 2011 – a broad brush perspective

Sebastian Chivers, Senior Vice PresidentJune 22, 2011 – Virginia Beach, VA

About PMSS

• Global consulting firm, established in 1994 and working exclusively in renewable energy

• We work in support of the world’s leading renewable energy businesses, providing products, services and practical recommendations throughout the capital value chain

• Team of over 120 engineers, scientists and consultants from a wide range of backgrounds and representing some of the sharpest consulting minds in the renewable energy business

• Experience on the majority of offshore wind projects worldwide, and over 90% of the Europe’s operating projects

• Offices throughout Europe, and USA headquarters in New York City

Evolution of UK Offshore Wind – 1999 to 2002

• Typically prototype scale projects / 2 WTGs / Client led project team

• 4 Assets (WTGs, Cable, Grid) / simple contracting structure with 10-20 managed interfaces

• Outcome:

• some ££ and some lost time

• considered bearable by the Client for a demonstration project

Insert Pic

Evolution of UK Offshore Wind – 2002 to 2007

• Typically 25-30 WTGs, with mixture of EPC and multi-contract

• Assets including WTGs, inter-array and export cables, occasional requirement for OSP, onshore S/S and O&M facility

• 100+ managed interfaces

• Outcome:

• limited proactive management

• significant £cost and time-loss for Client and EPC contractors

• all contracting parties becoming more Risk adverse

Insert Pic

Evolution of UK Offshore Wind – 2007 to 2011

• Typically 100-300 WTGs, further from shore / deeper water / much larger-scale

• Assets including multiple OSPs, complex cable and grid issues, virtually all multi-contract and Client managed

• Potential no. of interfaces >5000

• Outcome:

• implementation of formal management process (perhaps not yet at the optimum level)

• better definition / clearer scopes / more concise contacts / improved comms. resulting in reduced risk in terms of programme and cost

• proactive and not reactive

Insert Pic

Evolution of UK Offshore Wind – 2011 to 2020+

• Projects 200km+ from shore in deep water locations / multi-project zones / 3000+ WTGs

• Multiple OSPs with AC/DC converters / DC offshore to shore connections / offshore accommodation platforms / complex access and logistical challenges

• Potential no. of interfaces ???

• Outcome if we do not manage Risk appropriately:

• prohibitive excess £cost

• “trans-season” project delays

• potentially major impacts on stakeholder confidence and industry as a whole

Insert Pic

Lesson Learnt I – Project Management

• Effective leadership

• Building the team – early with experienced people

• The cost of the project team is a fraction of the CAPEX

• Project demands vs. supply chain availability

How do we fill this gap...?

Lesson Learnt II – Design control

• Holistic approach to Design Risk Analysis (DRA)

• Engineering Design Management process

• Engineering Interface Coordination

Lesson Learnt III – Improving EHS performance

• Leadership and Culture

• Goals and Objectives

• Alignment of Standards

• EU 92/57 implementation (CDM 2007)

• Emergency Preparedness

• Learning from previous experience

• Working with Authorities (HSE, MCA etc.)

Lesson Learnt IV – Managing Project Interfaces

• Clear definition of Interfaces

• Custodians

• Include in Contracts

• WBS / PIR

• Monitor

• Appropriate resources∞ ∞

Lesson Learnt V – Planning for O&M

• Clear and focused O&M philosophy

• Integrate O&M team with Construction phase processes

• Transition planning from Construction to O&M

• Proactive not Reactive

• Spare Parts strategy

• Vessel and Aircraft strategy

• Asset Optimization Tools

Lesson Learnt VI – Murphy’s Law

“Expect the unexpected”

Contact us

Sebastian ChiversSenior Vice President

www.pmss.com

PMSS America, Inc.590 Madison Avenue18th FloorNew York, NY 10022

Tel: +1 212 521 4161Cell: +44 7951 076 758Email: sjc@pmss.com