Offshore Wind:Local Content & Supply ChainExperiences from the UK

IWEA Offshore Forum· Alex Meredith· 08 November 2018

innogy is a first class developer and operator of offshore wind projects, with a series of successful partnerships

Operational / UC projects (~1GW innogy share)

Project Location Capacity COD Current shareholders

North Hoyle

60MW 2004

Rhyl Flats 90MW 2009

Greater Gabbard

504MW 2012

Thornton Bank I-III

325MW 2013

Nordsee Ost

295MW 2015

Gwynt y Môr

576MW 2015

Nordsee One

332MW 2017

Galloper 336MW2018

Operator

24.95%

24.95%50.1%

50% 50%

100% (innogy owns a 27% stake in the consortium)

100%

50%

30%

10% 10%

13.5%86.5%

25%

25%

25%

12.5%

12.5%

100%

Development Pipeline (~3GW innogy share)

Project Location Capacity COD Current shareholders

Triton Knoll

860MW 2021 59%

Kaskasi <320MW 2022 100%

Nordsee 2&3

~650MW 2022 13.5%

Sofia 1200MW 2024 100%

Dublin Array

~600MW 202550% 50%

86.5%

Built UK’s1st ever

commercial scale project (North Hoyle)

Constructed 2nd largest UK project

(GyM)

Galloper isinnogy’s 10th

offshore windproject

#5 worldwideFor installed

offshore wind capacity

innogy SE

25%

16%

innogy is expanding its traditional European offshore wind focus to explore global opportunities

Innogy’s growth & new business focus areas

USA

• Local presence established in Chicago

▪ Focus on North Eastern states

▪ Participation in local industry groups

• Acquisition of Onshore pipeline of >2GW- thereof 500MW in advanced stages – in 2017.

ASIA - PACIFIC

• Local presence established in Taipei

• Actively looking for value adding opportunities in Taiwan

• Focus on new emerging markets (India, APAC, Australia)

• Australia: Acquisition of project rights for solar plants with a combined capacity of more than 460MW. Total investment volume >400m€, start of construction 2018.

EUROPE

• Local consortium established for bids in France & Netherlands

• Exploring floating wind opportunities

• Besides core markets (UK and Germany), focus on new emerging markets Ireland, Poland, Baltics, Scandinavia

Innogy existing operational windfarms

innogy SE

innogy in Ireland

• Irish subsidiary established September 2016, Innogy Renewables Ireland Limited;

• One onshore wind project (10.2MW) currently in operation in Co. Kerry;

• Growing a development pipeline of onshore wind projects, first onshore wind project (LYRE Project ~ 80MW) to be submitted into planning Q1 2019;

• Active participate in battery storage market through subsidiary Belectric;

• Entered the Irish offshore wind market by acquiring 50% share in the Dublin Array project (~600MW);

• 8 employees based in our office located in Kilkenny City.

Capitalising on Offshore

• The UK has 37 offshore wind farms (over 7GW) supplying c7m homes and a vision of 30GW by 2030.

• UK offshore wind industry’s annual turnover is £6bn (£3bn direct + £2.7bn indirect) (ONS).

• The UK industry supports 11,000 jobs (5,500 direct + 5,500 indirect) (ONS).

• This can more than double to 27,000 by 2030 (with 30GW), with a Sector Deal.

Ambitious

Vision

Govt, Industry & Supply Chain Collaboration

Sustainable Economic Success

• Supply Chain Plan is essential to be allowed to enter a CfD auction, however there is no legal obligation to report or achieve a certain percentage of UK Content to receive a CfD for a renewable energy project – the focus of the UK Govt is on competition, innovation and skills.

• Triton Knoll Supply Chain Plan produced 198 commitments and actions, 75 relating to competition, 71 to innovation and 52 to skills.

• All main contractors are committed to use TK Supplier Registration Portals and participate in local Supply Chain events

• Carry out ongoing Supply Chain mapping to identify critical suppliers and jointly develop approaches to assist tier 3 and 4 suppliers and SMEs.

• Establish a local recruitment programme to engage local stakeholders about employment opportunities

Triton Knoll Supply Chain Plan

• Commitments made by supply chain are likely to lead to a UK content in total expenditure greater than 50% across the project lifecycle

• During construction TK is expecting to deliver directly or indirectly 2600 full time equivalent jobs and 290 full time equivalent jobs during operations.

• Partnership with Humber UTC, development of Humber Energy Campus, MoU with Humber LEP, commitment to Humber Skills Pledge.

Projected Triton Knoll Impact

Industry/Govt

Ambition

Project Level

Delivery

10

Phase % UK sourced

Construction 37%

O&M 86%

Total 58%

Galloper UK content over the project lifetime

• A multi-million pound long-term investment into the local economy

• ~£3.4M direct and indirect GVA into local area per year

• Local business involvement:

• Building systems (Fire, aircon, electrics, plumbing)

• Ground works

• Scaffolders

• H&S equipment

• Marine services

• Fuel deliveries

• Cleaners

• Waste management

• B&Bs, hotels and restaurants

Now in operation, Galloper delivers:

• The £10 million Galloper Operations and Maintenance Base in Harwich International Port will be built by three UK firms, two from neighbouring Ipswich, and its construction will create around 120 local jobs (direct and indirect).

• The state-of-the-art facility will be home to a team of 60 people who will operate and maintain the wind farm for its lifetime of 23 years.

Galloper O&M Base - £10 million local boost

• The companies involved are:- Ipswich based R G Carter Southern for the design and construction of the building- Ipswich based Jackson Civil Engineering Group, for the design and construction of the access road- Farrans Construction, for the design, fabrication and installation of the pontoon.

• Early ground works will commence by the end of 2018

Ambition Collaboration

Local Economic Success

Key Lesson from UK: