A COMMON TERRITORY FOR FAST-TRACKING MARINE RENEWABLE ENERGY PROJECTS

January 2015 Channel MOR Project: Final Report

This publication has been created as part of the Channel MOR project, funded by the European Regional Development Fund (ERDF), through the Interreg IVa France (Channel) England programme.

© Copyright 2014 Channel MOR. All Rights Reserved Contents Page

FOREWORD INTRODUCTION 1. SECTION 1: Current and Future Market Opportunities for SMEs entering the MRE Sector: 1. - 1.1 Executive Summary 4. - 1.2 MRE Market Opportunities: Requirements and recommendations for the sector

6. SECTION 2: Regional Strategies and Scenarios for Growth in the MRE Sector: 6. - 2.1 Introduction 8. - 2.2 Strategy Mapping: General Conclusions 9. - 2.3 Strategy Mapping: Region Specific Conclusions 9. - 2.4 Strategic Horizon Mapping: Introduction 9. - 2.5 Strategic Horizon Mapping: General Results 11. - 2.6 Strategic Horizon Mapping: Regional Specific results 11. - 2.7 Regional Scenarios and Recommendations: Introduction 12. - 2.8 Regional Scenarios and Recommendations: Methodology 12. - 2.9 Regional Scenarios and Recommendations: Results 13. - 2.10 Regional Strategies and Scenarios for Growth: Recommendations and Discussion 15. - 2.11 The following collaborative initiatives should be considered

16. SECTION 3: An Evaluation of Logistical Needs of SMEs wishing to enter the MRE Industry: 16. - 3.1 Summary 17. - 3.2 Conclusions & recommendations 18. SECTION 4: Training and Skills for the Marine Renewable Energy Sector – Gaps and Opportunities: 18. - 4.1 Summary 20. - 4.2 Skills in the MRE Lifecycle: Conclusion and recommendations

22. SECTION 5: Regulatory Frameworks in the Marine Renewable Energy Industry: 22. - 5.1 Introduction 23. - 5.2 Summary of Policy and Funding Frameworks influencing the Channel Region 24. - 5.3 Regulatory Frameworks Recommendations

APPENDIX Foreword

Project Partners:

Channel MOR – A common territory for fast- tracking MRE Projects Channel MOR (Marine Offshore Renewables) is a cluster set up to ensure the economic growth of marine renewable energy and to support businesses, with emphasis on SMEs, in engaging with this sector. This one year project, running from January 2014 to January 2015, has been delivered by 12 French and English partners and 100% financed by the European Regional Development Fund (ERDF Interreg IVa France-Channel-England Programme)

For businesses wishing to grow in the UK and French marine renewable energy markets of wind, wave and tide; Channel MOR provides market intelligence to help assess the industry’s attractiveness, identify supply chain gaps, find collaborators and highlight business opportunities. The conference will see the launch of a web portal which will give businesses access to comprehensive data sets on the Channel area’s marine renewables sector (courses, installations and businesses involved in the MRE value chain). [www.channelMORenergy.eu]

Businesses will also find on the platform a range of decision support tools for entering the sector. These include: skills analysis within the MRE lifecycle, analysis of the regulatory environment, an update on the present state of the MRE marketplace, a map of MRE opportunities in the Channel Area, a map of the regions best suited to specific energy types, and a self- assessment guide for logistics performance of SMEs.

In addition, Channel MOR has produced a video [www.youtube.com/ watch?v=k7_fe7kINKY] featuring the four main development stages for MRE initiatives: project design, manufacturing and assembly, installation and grid connections, operation and maintenance.

The Channel MOR partners • Bretagne Développement Innovation (coordinator) • Chambre de Commerce et d’Industrie de Dieppe • Cornwall Marine Network • Maison de l’emploi et de la formation professionnelle du pays de Brest • Pôle Mer Bretagne Atlantique • Région Haute Normandie • Southampton City Council • Technopôle Brest Iroise • Technopole Cherbourg Normandie • Université du Havre • University of Chichester • University of Portsmouth Introduction

Introduction In a time of economic recovery, the global energy sector is of increasing importance, acting as a significant driver for growth, a key opportunity for reducing carbon emissions and as a mitigation for climate change (DECC, 2013). The UK and France, alongside other EU member states and international neighbours, have committed to facilitating a move to low carbon energy, lower carbon emissions, a reduced dependence on fossil fuels and an increased role of renewable energy technologies (IPCC, 2007; Bergmann et al., 2006; Gill, 2005). Marine energy sources (offshore wind, wave and tidal energy) are under-utilised (Inger, et al., 2009), and have a significant role to play in ensuring these obligations are met. Indeed, the importance of marine renewable energy (MRE) as a developing maritime industry was acknowledged in the European Blue Growth strategy (Henley, 2013). The Channel region is in an ideal position to promote itself as an area of excellence in the MRE sector. For example, the UK and France are currently ranked first and second globally in terms of their potential for tidal energy generation (Bailey et al., 2012). Within the Channel region, there are currently a number of proposed MRE fixed wind installations, including the Rampion wind farm, Navitus Bay, and the AREVA 8 installation, there are also a number of operational installations including London Array and Kentish Flats. There are also important wave and floating wind test sites in Cornwall for the development of emerging wave and floating wind technologies. English and French MRE markets are at different stages of development; however, as MRE in France continues to develop, the potential for an effective and sustainable Channel wide supply chain, supporting local content across the Channel region will continue to increase. This research has been conducted as part of an INTERREG IVA Capitalisation project: Channel MOR. The project brings together eleven partners (including universities, local authorities, a marine network and MRE cluster and innovation centres – see back page of this report for details of partners) from across the Channel region, capitalising on the work conducted through existing INTERREG projects. As part of its research, Channel MOR aims to evaluate the current status of the MRE market, identifying future market opportunities for businesses within the Channel region and highlighting growth options for the Channel’s MRE sector.

Executive Summaries and recommendations of all reports. Please note that this report contains only the executive summaries, key points and recommendations of each of the reports in the Channel MOR Series posted on the Channel MOR website.

Channel MOR | SECTION 1: Image courtesy of Falmouth Divers: www.falmouthdivers.com Current and Future Market Opportunities for SMEs entering the MRE Sector:

A summary of the key elements and recommendations of the Channel MOR report on ‘Current and Future Market Opportunities for SMEs entering the MRE Sector’ Eds: E. McKinley and M. Feast, University of Chichester. December 2014. This report was a culmination of the work produced by the project partners and their local contacts in workpackage 3.2 of the Channel MOR Project. A copy of the full report can be obtained from the www.channelMORenergy.eu website.

Channel MOR project supports a to create an MRE community 1.1 Executive better understanding of the value across the Channel region, with Summary of the sector on both a national particular emphasis on supporting and European level, and aims to SMEs engaging with the sector. The Channel region, spanning encourage a policy landscape Initially this has been achieved from Norfolk to Cornwall in that supports the development through the partnership of the England and Nord Pas de Calais of the sector, both in terms of Channel MOR consortium and to Brittany in France, has the marine spatial planning, land- its associated clusters of SMEs potential to further develop based infrastructure, support for already in, or with potential to its MRE activity, and highlight local SME involvement and R&D enter, the MRE market. its capacity as a leader in investment; thus strengthening MRE technology and service the viability and sustainability This component of the project innovation. Further to this, the of the sector. In addition, the research aimed to meet the Channel MOR project aims following objectives:

Channel MOR | Page: 1 Current and Future Market Opportunities for SMEs entering the MRE Sector:

• To analyse current and future requirements in including offshore wind future MRE markets, relation to innovation, new (OSW), wave and tidal understanding barriers for processes, diversification, energy technologies entry and skills 2. A database providing an • To identify the current This research takes a multi- overview of current and activities and opportunities phase approach to evaluation of future potential business for international the current MRE activity within activity and capacity for collaborations the Channel region, including engagement with the MRE planned and projected projects. sector1 • To map the current MRE Two comprehensive databases market and identify were compiled: Analysis of these databases opportunities for SMEs highlighted the opportunities for 1. A detailed database of all Channel businesses on a more • To identify the current and global MRE installations, global scale, and also identified

1 These databases have been integrated into the Channel MOR web portal a free resource aimed at supplying market intelligence to SMEs who are in the MRE sector or wishing to enter the sector: www.channelmorenergy.eu

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where and how SMEs could company that has, or could have, industry experts, five new spaces/ engage with the MRE supply chain the potential to deliver/supply; opportunities were identified: across the entire 5 tier lifecycle. however, the key challenge is In total over 4,500 businesses in whether these SMEs have the 1. Wave energy the Channel area were identified capacity in terms of resources and 2. Tidal energy as being currently or having the logistics to deliver within a short 3. Electrical connectors potential to become operational time frame. Understanding these 4. Surveys within the MRE supply chain, capacity gaps and, additionally, 5. Condition monitoring across a range of activities. In fact, the challenges associated the analysis indicated that the with intellectual property and Whilst it is recognised that marine Channel region is very well placed commercial relationship issues renewable energy developments to serve the supply chain across within the MRE sector will be key are continually growing in their the entirety of the MRE lifecycle, to supporting SME involvement sophistication and viability as with only a small number of as marine renewable technology an energy technology with an activities across the MRE supply continues to develop. increasing role in future energy chain and lifecycle found to be security; they would benefit from real capacity gaps. These gaps In addition to the desk-based greater involvement from local included the construction of analysis of the sector, a number of and regional SME activity within wind turbines for OSW energy stakeholder and expert workshops the supply chain and there are a development, and on a smaller were organised to identify key number of challenges that need to scale, tuned damper (part of the challenges facing the sector and be addressed. Currently the sector noise and vibration reduction highlight new opportunities, with is underpinned by a complex, technologies) development was specific focus on opportunities lengthy and costly consent not found to have any current or for SMEs. Analysis of the current process, and is often challenged potential supplier, highlighting and future market opportunities by the perception that it is a high it as a potential opportunity both across the Channel region risk investment for financiers and for businesses to enter into the and on a more global scale found limiting attractiveness for SMEs. supply chain. One of the key that, on the whole, SMEs have Further to this, there is a need observations is that due to the the knowledge and expertise to to reduce associated costs both size of the region, it is likely engage with most activities across for suppliers and customers, and that at all phases of the MRE the MRE lifecycle. In addition, a lack of certainty around social lifecycle, there will be at least one working alongside a number of acceptability of MRE and its

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impact on the overall growth of • Further recognition of the including: funding support, the sector; both of which require MRE sector as a strategic grant opportunities and significant effort in order to make priority for Europe, market pull initiatives that the sector a more attractive and supporting economic support both developers, viable business option for SMEs. regeneration and energy but also the SMEs within security across the region. the wider supply chain.

1.2 MRE Market • Improved connections to • Standardisation of device the national grids of each and array design, training Opportunities: country and development and skills qualifications and of required infrastructure in other sector requirements. Requirements and England and France. recommendations • Identification of SME • In order to address the capacity gaps and for the sector perception of high risk encouragement of associated with the collaboration between Through this research, a number of MRE sector, evidence is SMEs to enhance overall requirements/recommendations required to ensure the capacity for delivery for the future success of the sector will have long- (perhaps through the Channel’s MRE sector have been term and sustainable formation of regional identified. financial stability over time, clusters or networks).

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• Provision of clear and based businesses are likely from the Channel region. transparent information to focus on activity on a Additionally, through the be provided to SMEs; more global scale. With successful formation of a particularly as the emphasis some support regarding Channel MOR community, on local content within the their understanding opportunities for SMEs MRE supply chain continues of the planning and across the Channel region to grow. consent process, (in both the UK and tendering procedures France, as well as further • Overall, it is recognised and required standards afield) can be promoted. that while the Channel and qualifications; SMEs This will encourage MRE sector is developing, within the Channel have better cross border and has the potential to the skills and expertise business relationships and become an area of real to engage with a more collaboration for the sector. expertise and skill for the international supply sector; currently, the key chain - thus develop and opportunities for Channel export skills and expertise

Channel MOR | Page: 5 Section Title

SECTION 2: Image courtesy of Cornwall Marine Network: www.cornwallmarine.net Aliquam auctor augue Regionalid enim vehicula Strategies and Scenarios for Growth in the MRE Sector:

A summary of the key elements and recommendations of the Channel MOR report on ‘Regional Strategies and Scenarios for Growth in the MRE Sector’ Ed: M.Leseure, University of Chichester, December 2014. This report was a culmination of the work produced by the project partners and their local contacts in workpackage 3.3 of the Channel MOR Project. A copy of the full report can be obtained from the www.channelMORenergy.eu website.

regional economic benefits. In interaction of the various 2.1 Introduction order to help regions to make regions. This assessment better assessments and decisions will consider deficiencies, The objective of this report is to regarding MRE, arguments for obstacles, bottlenecks and analyse and map the potential and against the various scenarios governance structures. and opportunities for developing are presented in the full report MRE in the Channel area. and the nature of the scenarios 2. Map the results in order to Scenarios, drawn from earlier are characterised. Therefore this see how the opportunities activity conducted within the report’s objectives are to: and regulatory hurdles Channel MOR project, propose evolve in response to different development options 1. Evaluate and identify each other over time and and potential ideas and modes the synergies that could present a possible context of collaboration. These differ in be generated by the for development. terms of SME involvement and

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3. Propose mid- and long- economic benefits • Competition refers to term development from patents and more losing opportunities, strategies to limit generally, the ownership contracts and markets to investment risks and to of technologies and competitors. Respondents let the regions adapt their processes. were asked to consider production, capabilities, both the existence of organisation, funding, skills • Operations and competition (or lack and other expertise to the Maintenance refers to thereof) and its intensity limitations of these markets deriving economic benefits and whether or not they and to facilitate the from the post-construction believe that the MRE development of the sector. phase where an installation sector is affected by hyper is commercially exploited. competition. 4. Identify the common This includes business features, opportunities for opportunities arising from • Cost of Energy refers to synergy and good practices the operations of the the fact that the levelised presented by the various installation (e.g. wind farm) cost of energy from marine regions with a view to such as the maintenance renewables is currently putting in place sustainable supply chain, spare parts much higher than the feed power generation. supply, and all associated in tariffs. The inability to services (health and safety, produce cheaper green The strategic factor accounting, administrative electricity is a threat which opportunities surveyed and clerical). is negatively affecting included the following: the momentum of MRE • Downstream supply chain industry growth. refers to deriving economic The first section of the survey benefits from business • Public opinion refers to asked respondents to compare opportunities arising after the social acceptance of the strategic importance of electricity generation. MRE technologies and offshore wind, wave, and tidal This includes business installations, and considers technologies. In the second opportunities in the to what extent strong section, respondents were asked transmission, distribution, positive/negative views to compare the importance of and retailing of electricity exists about the sector the following opportunities: with a special focus on and the extent to which innovation addressing these views can create • Construction refers to issues posed by renewable uncertainty and/or block deriving economic benefits energy sources, such as the sector’s growth. from the sale of capital intermittence. This includes goods to operators and for example electricity • Market Power refers to includes the manufacturing, storage solutions, buyer and/or supplier assembly, and installation intelligent networks, and power through which of electricity generation community schemes. parties to a transaction devices (e.g. turbines), can impose their own balance of plant, cables, • Internationalisation refers terms. An industry with and substations. This to deriving economic high levels of market also includes associated benefits from global power is characterised services, such as surveying, business opportunities by high transaction costs: consenting, port and through an international cost of contracting, navigation services. rather than local/national cost of tendering, cost outlook. of certification, cost of • R&D refers to the research managing risks, etc. and development of new Section 3 of the survey is the list devices and solutions for of threats: • Uncertainty refers to the industry and deriving strategic uncertainty,

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i.e. the industry’s lack • Policy Support refers to • Industrial Capability of knowledge and facts a country/region ability refers to the adequacy of about the future of the to effectively support country/region productive industry. In presence of the development and assets to perform in the high strategic uncertainty growth of the MRE sector MRE sector with no or both investors and industry with mechanisms such minor adaptation costs. actors will be reluctant to as: innovation support, Productive assets include invest in the sector. enterprise creation, growth ports, transport, and support, access to finance, electricity transmission Section 4 covers the strengths: education, near commercial infrastructures. It also market support. includes manufacturing and • Weather conditions construction firms that are/ refers to the geographical Finally, section 5 is the list of could get involved in the situation and its associated weaknesses: MRE supply chain. weather characteristics. When assessing the • Moving Technology importance of this strategic Forward refers to the 2.2 Strategy factor, consider wind, ability of a country to take tidal current, and wave as its intellectual property Mapping: General potential energy sources and R&D outputs to and rate to what extent the commercial stage. Conclusions possessing such natural This normally entails • Too much importance resources affect the providing support for is attached to local competitive position of a innovation through a installations plans. region/country. series of phases: from R&D to demonstration, • Regions that have already • Potential for Electricity from demonstration to gone through large scale Export refers to the pre-commercial, from pre- MRE construction phases ability of a region to build commercial to supported have experienced limited interconnection between commercialisation. local economic impact. its national grid and that of other regions, especially • Lack of resources refers to • The only region which is in regions where energy peaks the lack of resources that an ideal position to benefit are slightly offset to the stop the MRE sector from from large scale upcoming source region. developing. This includes market opportunities in the talent (i.e. convincing North Sea/Channel is the • Knowledge and Expertise skilled people to join the East of England. refers to the intellectual sector) and funding (i.e. capital and skill set convincing investors to • Thanks to the long possessed by a country/ invest in the sector). maritime and offshore work region, especially in tradition of the coastal terms of marine and • No First Mover Advantage regions of the Channel offshore engineering, refers to a country/region Arc Manche region, its electricity generation, not possessing a first mover developed industrial transmission and storage, advantage. Participants networks, its universities and R&D capabilities. This were asked to assess to and research centres, most includes specific expertise what extent being a second regions fare well in terms relevant to MRE such as mover or a follower of condition monitoring, technologies is a weakness composite materials, and the impact of this platform deployment, weakness. foundations works, cable manufacturing, etc.

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of strengths and should be constantly growing thanks strategies to ‘join forces’ able to participate in the to the region’s efforts to and move to a more sector. promote the sector and desirable strategic position. accompany firms in their • Most have limited scale transition to the MRE • Sussex and Devon are local opportunities, which sector. Acquisitions and identified in positions means that the cost mergers are also taking where retrenchment or of conversion of local place and such integration abandonment would industrial capability to the strategies should be normally be recommended. MRE sector remains a high pursued further in order Devon’s position could risk to be borne unless to increase the number of be significantly improved regions are set to chase regional firms that have the through further investment market opportunities on a scale and experience to be in developing strengths global scale. tier 1 suppliers. and reducing threats. Both regions should consider • There is a need for policy • Basse Normandie is in a diversification strategies targeting the improvement rather unique position as a in order to avoid direct of strengths for other first mover in tidal energy competition with other regions. The problem is with the Raz Blanchard site. regions in better positions. not so much to create new For example, Sussex strengths through training • Joint ventures are also a has an opportunity to but to allow regions to relevant strategic move and provide operations and effectively utilise these the link between Cherbourg maintenance support for strengths through better and Aberdeen is a good the Rampion wind farm. innovation and market example of an existing support. It is advisable collaboration. to seek diversification 2.4 Strategic strategies in order to find • In the case of Haute areas where regions can Normandie and Kent, Horizon Mapping: develop strengths and collaboration should be reduce strategic threats. through encouraging Introduction horizontal diversification in The objective of this task is offshore wind operations to analyse the results of the 2.3 Strategy and maintenance. strategic mapping in order to see how the opportunities and Mapping: • This recommendation regulatory hurdles evolve in also applies to Hampshire response to each other over time Region Specific and the Isle of Wight but and present a possible context diversification should Conclusions for development. Further be encouraged in the information and analysis can be development of tidal • Only East of England is found in the full report. currently in a position to devices. There is already follow market penetration a planned development strategies and market of a tidal array off St. 2.5 Strategic development strategies. Catherine’s Point. It also has active product Horizon Mapping: development strategies (for • Cornwall and Bretagne tidal and wave devices). should prioritise General Results It benefits from existing investments that enhance oil and gas and electricity their strengths in wave • The key threats for the generation supply chains energy and floating Channel Arc Manche (onshore and offshore). offshore wind platforms. region are the strategic This local supply network is Joint ventures are ideal uncertainty and the high

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cost of electricity from installations, but not on region can accelerate the renewable sources. possible developments returns of investing in the beyond 2020 on a global MRE sector by seeking joint • Investors and decision scale. There will be limited ventures between its lead makers are unwilling to opportunities for most (but region, the East of England, engage with the sector as not all) regions in the short and its ‘challengers’ nobody can really tell what to medium term. regions. It is important the industry will look like to find win-win formulas beyond 2020. • If the Channel Arc Manche for collaboration. One region wants to become aspect of this collaboration • It is a common occurrence a significant player in the is to provide access to at MRE conferences and MRE sector, it needs to the opportunities and trade shows to hear key adopt second mover or late knowledge based in the note speakers plead for mover strategies. In many East of England and Kent in governments to adopt industries, commercial the short to medium term, more transparent and history has shown that in exchange for access to stable policies in support of first mover advantages can markets in the longer term the sector. come at significant cost in the West of the Channel and firms preferring to wait Arc Manche region. • The regions currently and learn could benefit benefiting the most from from second-mover or even • Finally, although first mover advantages follower advantage. construction and and the current growth of operations and the MRE market, namely • Key features of the industry maintenance opportunities Germany and Denmark, are long value chains, score low, this is not to made the decision to invest multiple competencies, and say that they should be many years ago within a network-level innovations. ignored. Participating in context of strong national these will provide useful policy support focused on • The implication is that in experience and test offshore wind. order to ‘play catch up’, the markets for these regions Channel Arc Manche region that have to rely on R&D • Although policy support is should consider either to improve their position. one of the key strengths, diversification strategies In other words, these it refers to regional policy or collaborative initiatives. limited opportunities can support. It is a good thing These are feasible as the be used as a medium term that regions are ready to region is well positioned springboard to capture support the growth of MRE in terms of strengths: larger global opportunities and to encourage SMEs knowledge, active policy in the long term. to participate but there support, and coastal are issues with the limited conditions. scope of regional support. • Adopting diversification • The future of the sector strategies means giving the is indeed dependent on priority to ‘new spaces’. European policy, national It requires a focus on policy, and regional policy R&D opportunities. Tidal and the extent to which all and wave technologies are coordinated. are especially promising, as are other diversified • The scoring of ‘new spaces’ such as the opportunities in this report downstream supply chain. was based on existing and planned regional • The Channel Arc Manche

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Arc Manche region. Its try to diversify its MRE 2.6 Strategic top ranking strategic activities and identify Horizon Mapping: factors are all strengths profitable and high value and opportunities. Most adding niches. Regional Specific weaknesses and threats are short term issues that • Southwest England: Results should not affect its ability Already has a well- to grow along with the established MRE • Bretagne: the top strategic MRE sector. Weaknesses supply chain working factors for Bretagne are all are well below average internationally2. It is in a medium to long term. This and various measures unique position to be first indicates that MRE can only have been implemented to mover in wave technology be a long term initiative for address these. The region is with test sites operating in Bretagne and that no short also already addressing the Falmouth Bay (FaBTest – return on investments cost of electricity weakness small scale) and St. Ives Bay should be expected, as and the strengthening of (Wave Hub3 – full scale grid only weaknesses can be a sustainable supply chain connected). The Southwest addressed in the short term through its very active Marine Energy Park with in order to set the stage and prominent all energy its Bristol Tidal Forum and for future developments. association, the East of the Plymouth and Cornwall Bretagne suffers from a England Energy Group Offshore Renewables lack of well-defined and (EEEGR). Development Programme4, confirmed opportunities provide an opportunity for but these are partially • Sussex: The construction a coordinated approach offset by many strengths. of the Rampion wind to developing both wave, farm, which is perceived tidal and floating wind in • Haute Normandie: Top as an exciting opportunity, the deeper waters of the strategic factors are either is actually rated at the Southwest of England. immediate concerns bottom. This is not to say or mid-term ones. The that the Rampion wind challenge for Haute farm will not provide any 2.7 Regional Normandie is to deploy all local economic impact of its strengths effectively (the developer, Eon, has Scenarios and and overcome weaknesses actually an excellent track Recommendations: in order to address threats. record at involving local The focus is currently on suppliers) but it indicates Introduction local installations that make that at the scale of the up for a minor share of sector, this opportunity is This chapter of the report deals the actual size of the MRE small. The highest strength with the following two objectives: market. of Sussex is the fact that weather conditions and its • Propose mid- and long- • East Coast of England: It coastal set up are right for term development is in a unique position MRE installations. The most strategies to limit to make the most of the convincing opportunity is investment risks and to development of the MRE the ability to become a key let the regions adapt their sector and is ‘ahead of player in small scale tidal production capabilities, the game’ in the Channel devices. Sussex should organisation, funding, skills and other expertise to the limitations of these markets and to facilitate the 2 The MOR Group: www.morenewables.co.uk development of the sector. 3 www.wavehub.co.uk 4 www.marinerenewables.org.uk/about-ordp.html

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• Identify the common recommended. The differences features, opportunities for 2.9 Regional between the clusters are not only synergy and good practices Scenarios and in terms of strategic content but presented by the various also in terms of strategic maturity. regions with a view to Recommendations: putting in place sustainable Collaboration opportunities power generation. Results i) Promotional messages ii) Regional opportunities The first objective was performed Some of the scenarios that were iii) Pairwise opportunities by each regional representative formulated suggested means and scenarios for development through which SMEs could be Conclusion of the Rouen were presented at a workshop involved with the sector, but many Workshop in Rouen on 11/09/2014. The scenarios did not directly address The workshop was organised as a analysis of these scenarios is this requirement. Moreover, the series of presentations presenting presented in section 3 of the scenarios that were presented growth scenarios for each region report whilst the second objective are rather different in terms of of the Channel Arc Manche region. is discussed in section 4. scope and approach. As a result, These scenarios were either many regions fall back behind elaborated by the Channel MOR the private sector and align their team or by official representatives 2.8 Regional strategies on developers’ plans. of each region. Besides presenting This results in the ‘transfer’ of likely growth scenarios in relation Scenarios and the private sector’s competitive to offshore renewable energy, Recommendations: culture onto regional planning, the workshop objectives were a transfer which stifles both the to focus on opportunities for Methodology regions and the sector’s abilities collaboration between regions to engage in much needed and strategies for increasing The regions are struggling collaborative actions to reduce SMEs’ involvement. The with the strategic uncertainty costs and risks and encourage recommendation is that regional and political sensitivity of the further innovation. planners should become familiar MRE sector, therefore practical with the six challenges identified recommendations and ideas for Critical Analysis of Scenarios that constrain the region’s ability collaborative projects through This critical analysis is organised to formulate adequate strategies the project have been scarce around six challenges to address opportunities and despite a general agreement that i) Leadership objectives: threats presented by the MRE collaboration at a cross-regional competition or sector, along with mechanisms to level would be beneficial. The collaboration? address them. method used in this part of ii) Global vs. Local: from the report was to capitalise on supply chains to value Regional Scenarios: the diversity of the scenarios creation Recommendations presented at the Rouen workshop iii) Economic impact estimates i) To distinguish tactical by positing that this diversity is iv) Should regions craft responsibilities arising representative of the difficulty their policies around from the co-ordination of strategic decision-making in installations? of local installations with the MRE sector. By analysing v) Regional specialisation: local businesses from more the root causes of this diversity, what is the best approach strategic investments in the six fundamental issues were to collaboration? sector. It is important to identified and formed the vi) Strategy or strategic de-couple local installation structure of the workshop. options? This analysis also reviews the scenarios in the light of the The Channel Arc Manche region other conclusions generated as Three Clusters throughout the report. A North East cluster, a Central cluster and a Western cluster are

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opportunities from value centres that actively engage the sector for ‘elite circles’ creation opportunities in efforts to reduce the collaboration architecture, as both their scales and levelised cost of electricity5 more attention should scopes are different. from renewable sources. be given to more open ii) In the case of strategic It is important to find architecture and innovative investments, regional mechanisms and ways to forms of innovation strategies should be promote activities from a governance. benchmarked with other variety of players without existing opportunities. expecting that the full 4. Moving Technology iii) The search for strategic cost of these activities Forward: This has for opportunities should will be borne by players long been a criticism include all relevant supply that will not benefit from of the sector and there chains. them. Examples of such is a need for further iv) Regions should distance initiatives include: (a) local lifecycle mapping of themselves from private knowledge transfer projects how a technology can sector thinking and from involving operators, local be effectively supported perceptions of competitive universities, and local SMEs from its inception to full sensitivity and participate developing innovative commercialisation. in more open collaborative solutions for operations projects akin to innovation and maintenance, (b) 5. R&D support: Comparisons communities, which are supporting conditioning have confirmed that the better aligned with the true monitoring initiatives and MRE sector is one where strategic targets behind making large amount of traditional first mover investment in MREs. reliability data available to advantage pays off. Tier the research community, 1 suppliers are currently or (c) the adoption of deriving many benefits 2.10 Regional industry-wide or open from their investment standards to reduce the in R&D, and thus it is Strategies transaction cost and ‘hold important that continued up’ problem from tier 1 support for R&D is offered and Scenarios suppliers at the early stage so that regions with for Growth: of the operations phase. potential can formulate and execute differentiation Recommendations 2. Provide more transparent strategies. and stable policy and Discussion frameworks for the sector 6. Competition regulation: to reduce technological and There are high stakes In order to support the growth market uncertainty. See and complex project of the sector, to move toward the Channel MOR report on finance deals in the MRE sustainable renewable power Regulatory Frameworks for sector. Many countries generation, and to open up the more detail on this. are moving toward local opportunities provided by this content requirements sector to local, smaller regional 3. Provide incentives for that may or may not players, there is a need to collaboration: remove serve the best interest of influence European and National competitive secrecy. the consumers. Whether Policy Makers to: Collaboration is stifled or not competition is by commercial sensitivity fair and is taking place 1. Provide incentives to constraints and habits. in an open market is an regions and research Given the predilection of area to watch. Accepting protectionist policies may increase transaction costs 5 Levelised Cost (LCOE) = Net Cost to install a renewable energy system and reduce the perceived divided by its expected life-time energy output.

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performance of renewable 1. Cease dependence on 5. Extend the search for energy sources, creating local installations as the opportunities to all supply further issues with public engine for MRE growth. chains related to electricity opinion. Local installations should generation. be used to exercise learning 7. Distribution and real options and gain 6. Encourage and support Transmission: There access to the operations R&D initiatives in the new are many opportunities and maintenance markets spaces. for economic activity in and to a lesser extent, the the downstream supply construction market. 7. Identify SMEs with high chain. These are currently potential and support explored in ‘community 2. Invest in more intense their growth so that their energy solutions’ due to the investment in R&D chance of becoming a tier various restrictions around and making sure local 1 supplier is increased. production and distribution innovative firms are Making sure that local firms of electricity. These assisted throughout their become tier 1 suppliers restrictions stop larger technology lifecycle. as a means to ensure that regions from considering higher economic impacts and engaging in R&D in 3. Continue local co- are generated in the long the downstream supply ordination to make sure term. There is a shortage of chain. Intelligent dynamic that regions can benefit tier 1 suppliers operating grids, community solutions, from inward investments in the Channel Arc Manche and heat networks are from the MRE sector. It is region but many companies becoming common important not to confuse have the potential to approaches in other this approach with the become one. European countries and one described above and policy should aim to open to continue to prepare 8. Consider extending the up these opportunities. regional infrastructure scope of local institutions There are also numerous and economic networks supporting renewable studies demonstrating that to better support MRE energies to all energy as the renewable energy installations. mandates. Less specialised penetration rate increases, all energy groups and current curtailment 4. Invest in the adaptation associations achieve better policies would result in of local industrial and results thanks to attracting lower capacity factors for port capabilities with a larger critical mass of wind farms to as little as caution. Some investments participants and achieving 25%. This would result in will be unavoidable in stronger networking and all wind farms becoming order to support local synergy effects. uneconomical. This can be installations but it is prevented by opening up important to understand national and regional grids that investments made to to innovation. support firms participating in the manufacturing In order to support the growth and constructions supply of the sector, to move toward chains are more risky and sustainable renewable power dependent on securing generation, and to open up the long-term demand for opportunities provided by this them. This is especially the sector to local, small regional case for firms coming from players, there is a need to very different sectors. influence Regional Policy Makers to:

Channel MOR | Page: 14 Regional Strategies and Scenarios for Growth in the MRE Sector:

3. Collaborate widely on 2.11 The cross-cutting themes: following Aside from the social acceptance of wind farms collaborative as discussed previously, this includes regions forming initiatives should collaborative networks to reduce the cost of energy, be considered move technology forward, identify and manage 1. Pre-consenting and public market imperfections, and acceptance: large cost and increase bilateral trade. delays are often incurred at this stage of MRE projects 4. Collaborate on R&D at and yet many of the steps the cluster level: This performed during the would involve regional consenting process equate collaboration initiatives to re-inventing the wheel. focusing on achieving This considerably slows synergies between research the growth of the sector centres and local SMEs in and complicates access to order to mitigate the risks the market for all parties of investing in R&D for the by increasing uncertainty. new spaces. Regions should consider creating a consortium pre- validating any variable that can be consented at the level of the entire region, leaving only variables that differ locally to be addressed later. This could be done either at the Channel Arc Manche level or for each of the 3 clusters defined in the full report.

2. Training co-ordination and addressing lack of resources: Most regions are keen to adopt training initiatives to address the lack of resources to grow MRE activities. This means that there is a risk of excess training capacity and a risk of duplicating training efforts and resources. A coordinated regional level training provision with collaborative links between key providers could be a way to mitigate these risks.

Channel MOR | Page: 15 Section Title

SECTION 3: Image courtesy of Falmouth Divers: www.falmouthdivers.com Aliquam auctor augue Anid enimEvaluation vehicula of Logistical Needs of SMEs wishing to enter the MRE Industry:

A summary of the key elements and recommendations of the Channel MOR report on ‘The evaluation of logistical needs of SMEs wishing to enter the MRE industry’ Ed: E.Pertin, ISEL, University Le Havre, December 2014. This report was a culmination of the work produced by the project partners and their local contacts in workpackage 3.4 of the Channel MOR Project. A copy of the full report can be obtained from the www.channelMORenergy.eu website.

machines and infrastructure way to leverage these medium to 3.1 Summary more reliable, improving capacity long-term conventional responses factors, optimising maintenance that industry and government on Just as the offshore wind operations, standardisation, all levels, including the EU, have industry is slowly starting to combining resources and been implementing. take shape in France, businesses committing more of them at sea, from across the value chain are clustering energy companies, Supply chain management has already saying they will need and in some cases outsourcing become a strategic weapon to rapidly reduce installation, fabrication to Central European for businesses struggling to production and operations and countries. safeguard their profit margins and maintenance costs if wind- to achieve greater market share. generated electricity is to become In January 2014, the Channel more competitive in the future. MOR Partnership started looking Spanning the value chain, logistics Part of the solution will come at supply chain management as a involve a total systems approach from: innovation, R&D, making

Channel MOR | Page: 16 An Evaluation of Logistical Needs of SMEs wishing to enter the MRE Industry:

to match supply with demand • Validate the length of the simple. However, businesses as efficiently and cost-effectively exercise may be reluctant to disclose as possible, even when real sensitive or strategic information consumer demand is volatile and • Correct and complete parts about themselves. So the main complex. For marine renewables of the questionnaire and challenge is to gather a critical in general and for offshore wind the footnotes mass of partner SMEs over a energy in particular, supply chain reasonable timescale in order to optimisation means identifying • Confirm that the software set up a network and produce the best compromise between used (Excel) was suitable meaningful results. inventory levels, service levels for testing the feasibility and operating costs. of such a tool, and that an enhanced software tool, Consequently, all businesses professionally designed along the supply chain, including under a future project, SMEs wishing to enter marine should be produced. renewables markets, will apparently have their part to It would be valuable to have at play. “He who aspires to improve some point a tool capable of must be evaluated, and he who adapting to the configuration aspires to be the best must be of a company in real time. For compared.” With this quote in instance, there is a big difference mind, engineers from ISEL set out in the way a business providing to address the initial issue raised operational services implements in Channel MOR: to identify and its production process compared define tools for capacity building to a manufacturing firm, and and for helping SMEs into these this means self-assessment markets. The team developed frameworks and rating tables will a self-assessment tool to help have to be balanced accordingly. SMEs increase their logistics performance and specifically to: As a matter of fact, the quote mentioned earlier serves as • Build an initial picture of reminder that benchmarking logistics practice can only be carried out if a business can compare itself to • Measure overall strengths the best. However, businesses and weaknesses are often unable to afford the benchmarking tools and services • Set out a plan for progress available. in line with the level of maturity reached One solution could be a more or less open web platform where a community of SMEs from 3.2 Conclusions & both England and France could discuss logistics performance. recommendations Each member would conduct a confidential self-assessment, Both the audits undertaken which would enable a picture allowed the team to: of logistics performance to be built up. From this, an average • Assess how businesses performance could be calculated really perceive this unique and used as a benchmark by tool SMEs. Technically, such an initiative would be relatively

Channel MOR | Page: 17 Section Title

SECTION 4: Image courtesy of EMEC: www.emec.org.uk Aliquam auctor augue Trainingid enim vehicula and Skills for the Marine Renewable Energy Sector - Gaps and Opportunities:

A summary of the key elements and recommendations of the Channel MOR report on ‘Regulatory Frameworks in the Offshore and Marine Energy Industry’ Eds: Henderson, Lake, Holmes (all Cornwall Marine Network), Becel (Technopole Cherbourg), December 2014. This report was a culmination of the work produced by the project partners and their local contacts in workpackage 3.1.1 of the Channel MOR Project. A copy of the full report can be obtained from the www.channelMORenergy.eu website.

direct FTE jobs in the EU by training, often concerning the 4.1 Summary 2050 if resource and economic ‘maritimisation’ of such skills, potential can be realised. In order inclusive of industry-specific Future opportunities of Marine to support SME’s participation health and safety requirements to Renewable Energy (MRE) within this market, it is important work in such hostile environments, technologies within the Channel that they have access to the right for example. Alternatively, and area are likely to focus upon all personnel and related skills. with particular reference to technologies within the sector, French training within the sector, namely offshore wave, floating In many cases, the requirement for is the requirement for language offshore wind, fixed offshore wind skills within the lifecycle of MRE skills acquisition, facilitating co- and tidal arrays. The development systems are directly transferable operation and collaboration of such technologies could from other sectors and may with Tier 1 developers and the potentially support over 450,000 only require a little additional export of services elsewhere.

Channel MOR | Page: 18 Training and Skills for the Marine Renewable Energy Sector - Gaps and Opportunities:

However, new specialist skills or supply, Information, Advice and the development of options a combination of existing skills and Guidance (IAG) is for subsequent specialisation are sometimes required that are recommended in the promotion in MRE, following a similar not widespread within current of future STEM-related careers. model to the BTS Certificate training courses. Some ‘dedicated’ within France, for example. MRE- specific courses have more In some partner regions there will Furthermore, high quality MRE recently been developed, albeit be less or no focus on services educators need to be attracted to, primarily delivered at degree-level linked to particular technologies and retained within the industry. and that cover the initial stages within the sector but there is (‘Project Management’, ‘Research potential for exporting services France and the UK have common & Development’, ‘Feasibility (and associated skills) beyond gaps and there is scope to develop Assessment’ and ‘Design’) of the Channel Region. Indeed, collaboratively because they the MRE lifecycle within the UK this is already happening. For have complementary skills, for particularly. That being said, this reason, standardisation example the UK has more training MRE-specific vocational training of qualifications and training dedicated to ‘offshore’ skills and is starting to emerge for wind courses is strongly recommended France is knowledgeable about turbine technician roles within the for the industry, in the absence of decommissioning. A stronger ‘Manufacture’ and ‘Operations which, all new provision should partnership in the MRE sector and Maintenance’ phases of the be developed to a consistent between the stakeholders of the lifecycle. standard, giving reference to Channel area will build more the European Qualifications efficiency and development in the Whilst new combinations of Framework (EQF). sector. existing skills have the potential to support the growth of the Closer relationships between The development of new MRE industry, these existing skills the industry and the training qualifications highlighted for are themselves facing shortages. providers should ensure that all the industry, or improvements STEM (Science, Technology, publically-funded workforce skills or better local roll-out of Engineering and Mathematics) development is business-led. existing qualifications should be skills are recognised by key Benefits of industry experience prioritised by the lifecycle stages industry stakeholders as a highlight the need to increase and particular technologies

Priority: Future job opportunities Current Channel Future Channel (in order of number) MRE Lifecycle Phase Area Operations Area Opportunities (FR) (Upper (UK) (FR) (Brittany)* Normandy) Planning and Project Management / 2 6 3 Crossover Professions Research and Development 4 6 3

Feasibility Assessment 3 6 5 Design 4 3 5 Manufacture / Construction 8 1 1 Installation 4 3 7 Operations and Maintenance 1 2 1 Decommissioning 4 3 8 * Construction and assembly area (Brest, Saint-Nazaire, Le Havre, Cherbourg) prerequisite for many of the roles vocational training, industry that offer the greatest job in the renewable energy placements and apprenticeships. prospects to individual partner industries. While demand Flexibility should be allowed for regions. It is recommended that for people holding these in-course delivery, advocating further primary research work skills is currently exceeding the need for core programmes is undertaken to forecast the

Channel MOR | Page: 19 Training and Skills for the Marine Renewable Energy Sector - Gaps and Opportunities:

future labour markets in order recommendations are made to 2. Potential for combined to quantify the demand for address the current and predicted training facilities and training provision recommended. shortage of skilled workers with a educational material: With view to safeguard the future of the the exception of Onshore Insufficient skills being available MRE industry within the Channel and Offshore Wind and when the Marine Renewable Area and take full advantage of Solar Generation, MRE Industry grows will place reliance the socio-economic opportunities technologies (floating wind, on an outsourced supply chain the sector has to offer through tidal, wave and thermal and would see the Channel job creation within the area technologies) are relatively area fail to secure the domestic itself as well as opportunities for new. This creates an socioeconomic benefits that the exporting skills. The Channel MOR opportunity to investigate sector has to offer, additionally project proposes that: the potential for combined increasing cost to the sector and educational and training ultimately for consumers. 1. The Channel area’s facilities and educational industry development is material, possibly with The Channel MOR Skills report focused on lifecycle stages standardised ‘Marine and details the skills required for that offer the greatest Offshore Renewables’ a business to make successful expected job prospects qualifications, such as market-entry into MRE and which are prioritised degrees6 and vocational identifies the current skills gaps (in order of highest to training programmes. that could be fulfilled by training lowest expected number This could also involve businesses. of job opportunities) partners who have access as: operations and to SMEs who are (and It should be noted that this is a maintenance, planning will be) involved in the fast moving global market and and project management/ design, manufacture and this report therefore serves only crossover professions, operation of marine and to offer a time-limited view. feasibility assessment, offshore renewables and R&D/design, installation who can provide ‘hands and manufacture/ on’ experience and training 4.2 Skills in the construction. Whilst this of the whole process from prioritisation might be true project conception to final MRE Lifecycle: in terms of short-term jobs, operation of devices and it is not necessarily the case installations. Conclusion and in terms of value and over recommendations time, there may be more 3. All publically-funded opportunities associated workforce skills There are clearly skills shortages with the development of development is business- 7 in the existing MRE workforce wave and tidal installations led and it is evident that this situation where there is first mover will be exacerbated as the advantage. 4. To continue and increase industry grows. The following the push for STEM skills in schools along with IAG (Information, Advice and Guidance) of future STEM related careers particularly 8 6 Plymouth University has launched the first postgraduate degree in among females Marine Renewable Energy: www.plymouth.ac.uk/courses/postgraduate/msc- marine-renewable-energy 7 There needs to be better links between schools and industry to ensure that courses are developed in line with industry need, as well as encouraging partnerships between centres and encouraging exchange projects of students and tutors for the purposes of gaining industry experience. 8 Channel MOR and Channel Marine Academy are bringing some useful contributions through initiatives such as the PRO et MER conference and trade show. The BEEMS Skills Escalator and Toolkit also facilitates this.

Channel MOR | Page: 20 Training and Skills for the Marine Renewable Energy Sector - Gaps and Opportunities:

5. All training takes account of to, and retained within the relevant industry standards industry. Answers should be where they exist to avoid sought to reasons behind duplication of training by the high turnover of such SME’s. All new provision is personnel. developed at a consistent standard (EQF). 13. That further primary research work is 6. Levels of support available undertaken to model / for vocational training, forecast the future labour industry placements market, specifically for and apprenticeships are each of the partner areas increased. in order to quantify the demand for the training 7. Flexibility should be provision recommended. allowed for in course 14. The further research delivery, advocating the work is undertaken to need for core programmes complete a full mapping and the development of of training provision to options for subsequent bring information for all specialisation in MRE, partner areas to a common following a similar model to standard. the BTS Certificate within France, for example. 15. That a single information point is made available 8. Language skills should for businesses and SME’s feature as part of French in particular, where they MRE training provision in can obtain customised particular. information with regards to skills development. 9. Capacity building resource is dedicated to developing the new qualifications demanded by the industry.

10. Capacity building resource is dedicated to delivering the short-term training improvements identified within the next 12 months (Those related to skills requirements within the first seven stages of the MRE lifecycle).

11. Capacity building resource is dedicated to supporting the local roll-out of identified existing provision required by businesses.

12. High-quality MRE trainers and educators are attracted

Channel MOR | Page: 21 Section Title

SECTION 5: Image courtesy of Insight Marine Projects: www.insight-marine.co.uk Aliquam auctor augue Regulatoryid enim vehicula Frameworks in the Marine Renewable Energy Industry:

A summary of the key elements and recommendations of the Channel MOR report on ‘Regulatory Frameworks in the Offshore and Marine Energy Industry’ Eds: Lake, Pollard (Cornwall Marine Network) and Monbet. December 2014. This report was a culmination of the work produced by the project partners and their local contacts in workpackage 3.1.2 of the Channel MOR Project. A copy of the full report can be obtained from the www.channelMORenergy.eu website.

carbon economy have gained of becoming commercially self- 5.1 Introduction momentum; although the supporting and even economically continued availability of cheap viable. Conversely, emerging The aim of this study was to oil, nuclear power and the high marine energy technologies: analyse and share information cost of replacement technologies wave, floating wind and tidal, are about the regulatory frameworks have contributed to slowing at the early stages of technology and any barriers and obstacles to commercial commitment to development and testing. Like the deployment of MRE systems. renewable energy generation. the technologies developed However, with significant support before these, significant policy The European Commission from the EU and National support, followed by sufficient recognised the challenge of Governments, solar PV and public investment in technology Global Warming in 2009 and onshore wind energy technologies innovation and energy in the following years efforts have reached the crossover point infrastructure development to begin the transition to a low

Channel MOR | Page: 22 Regulatory Frameworks in the Marine Renewable Energy Industry:

are required to overcome the to achieving the Global and The Regulatory Frameworks technical and financial ‘valley of European targets set for the move Report offers a summary of key death’ which hinders the viable towards the low carbon economy. regulations in France and the UK commercialisation of these relating to, and having impact technologies. upon, the development, testing, 5.2 Summary installation and operation of MRE The policy findings in this devices and arrays. The following document demonstrate progress of Policy table is a summary of the at European and Governmental policy and funding frameworks level in the Channel Area. The and Funding influencing the Channel Region. technical and financial challenges Frameworks This is not an extensive list as there are not inconsiderable but with were some gaps in information sustained efforts the Marine Influencing the and uncertainty about some Renewable Energy sector could financial mechanisms at the time make a significant contribution Channel Region of writing.

Policy and Funding Framework Influencing the Channel Region

Mechanism England France Europe Type • Marine Energy Array Demonstrator Fund • European Commission in the form of (MEAD) the European New Entrants Reserve • The Crown Estate (NER) and the Marine Renewables • The Technology Strategy Board’s Marine Infrastructure Network (MARINET) Energy Supporting Array Technologies • Green Investment Bank (GIB) (MESAT) Financial • The Energy Technologies Institute Mechanisms • European Commission in the form of the European New Entrants Reserve (NER) and the Marine Renewables Infrastructure Network (MARINET) • Green Investment Bank (GIB) • Strategic Initiative for Ocean Energy (SI Ocean) [European level] • Renewables Directive • Renewables Directive • Strategic Environmental • The Renewables Objective (2002) • Bill n° 68-1181 du 30 décembre 1968 Assessment (SEA) (2001/42/EC) • Climate Change Act (2008) • Bill n°76-655 du 16 juillet 1976 Directive • Energy Security Strategy • Decree n°2013-611 du 10 juillet 2013 • Environmental Impact Assessment • Statutory Security of Supply Report • art. L.311-5 et s. et L.311-10 et s. (EIA) Directive (85/337/EC) • Annual Energy Statements • Bill n°2013-312 du 15 avril 2013 • Habitats Directive (92/43/EEC) Environment, • The Carbon Price Floor • Bill project du 18 juin 2014 • Wild Birds Directive • The Emissions Performance Standard • Bill n°86-2 du 3 janvier 1986 • The Water Framework Directive Regulation • Low Carbon Industrial Strategy (2009) • Decree n°2004-308 codifié du 29 mars • Marine Strategy Framework and Legisla- • Marine Energy Action Plan (2010) 2004 Directive (2008/56/EC) tion • art. L.122-1 et s., L.123-1 et s. and • *Offshore wind must also consider L.214-2 et s. airspace legal requirements as • Bill n°2006-1772 du 30 décembre outlined by Europe and global 2006 legislation. • Bill n°2009-967 du 3 août 2009 • Bill n°2010-788 du 12 juillet 2010 and Decree 2012-219 du 16 Février • The Energy Technology Institute (2007) • The Marine Energy Programme Board (2011) Collaborative • Sustainable Power Generation and Initiatives Supply Initiative • UK Renewable Energy roadmap (2011) • Future of Marine Renewables in the UK (2012)

Channel MOR | Page: 23 Regulatory Frameworks in the Marine Renewable Energy Industry:

from the industry, e.g. potential which should be freely shared 5.3 Regulatory developers and (future) Channel for mutual benefit, in order to Frameworks MOR Partners as well as from reduce duplication of direction respective European and National or resource in future projects. Recommendations Governments downwards. There It is recommended that this is a need for a co-ordinated and experience and knowledge Since regulations and funding sustained lobbying campaign by continues to be shared, facilitated instruments have long and Channel MOR Partners, supported by the Channel MOR portal and complex lead-in times, the by future projects to ensure that a possible future Interreg Cross recommendations that follow, National, Regional and Local Border (Channel) Project. relate largely to what activity could politicians and governmental follow on from the Channel MOR organisations are appraised of 3. A Common Technical Project in order to influence and the key benefits of ongoing and Terminology streamline regulation and funding increased investment in devolved The International Standards opportunities for the MRE sector, Marine Renewable Energy Organisation (ISO) and its thus taking the complexity away Generation. These benefits have standards has moved this and from the developer/installer/ been shown to include: other industries closer to a operator of MRE technology and common technical terminology. providing a smooth pathway to • Contribution to national In the MRE industry, there are development of the industry. and international targets still differences in terminology for growth in renewable between England and France 1. Political lobbying energy generation and indeed internationally. One of the biggest challenges Addressing this issue could be a for potential developers and • Significant job creation useful subject for a future Cross investors in Marine and Offshore because of construction Border or Interreg Europe Project Renewables, are the effects on and ongoing operation, to address. progress of a complex and ever- maintenance and changing set of interrelated management of Renewable 4. Centralised and Free regulatory processes. Therefore, Energy generation sites Information/Knowledge Point a key objective for Channel (and design, construction One of the greatest challenges MOR to propose for any future and maintenance base and to people/organisations involved project, could be to monitor vessels). in the Marine and Offshore the EU, National and Regional sector (e.g. potential as well (local) legislation (or proposed • This activity could be as existing operators) is for legislation), to ensure that all supported by the EU’s them to have information on of the individual regulatory ‘Interreg Europe’ Policy new developments (e.g. in new framework processes are fit for development funding technology as well as legislation) purpose and joined up. stream9. and also a means by which to communicate with each other. It The relevant Directorates of 2. Increased sharing of expertise is recommended that the Channel the European Commission (DG amongst Channel MOR Partners MOR web portal developed MARE, DG Energy, DG Regio) and There is a considerable and during the course of this project the French and UK Governments rapidly increasing amount is adopted and developed further (through their respective Energy of expertise and knowledge by any successor project to ensure Departments) are aware of the amongst Channel MOR Partners open and free information on the challenge, but considerable input (and more specifically, the wider following: (based upon actual experience network of partners in projects in the industry) should come associated with Channel MOR),

9 ec.europa.eu/regional_policy/cooperate/cooperation/index_en.cfm

Channel MOR | Page: 24 Regulatory Frameworks in the Marine Renewable Energy Industry:

• Existing legislation and regulatory documentation related to the MRE business sector which, most importantly, is kept up-to-date

• Online information on the latest market, technical and financial data

• Opportunities for member discussions (member networking), virtual or physical meetings and/ or thematic seminars, masterclasses and events, as appropriate

• Public Affairs and Industry/ Regional PR

The Channel MOR Project has produced extensive information on the www.channelMORenergy. eu web portal. All of these recommendations may require the establishment of a dedicated team, perhaps located in a partner office; but naturally, funding will be required.

Channel MOR | Page: 25 Appendix

Projects Contributing to the Channel MOR Cluster: 2OM: Sharing offshore maintenance activities on the Channel 2OM project mainly aims to design decision making helping tools, dedicated to support public policy launched regarding offshore wind farms including their life cycles. This project aims to provide a common strategic frame to decision-makers in terms of offshore investments. www.2om-project.eu

BEEMS: Common standards for training in Marine Renewable Energy in the cross border region The aim of the Building European Environmental and Maritime Skills (BEEMS)project is to stimulate the growth and development of environmental and maritime skills within the offshore wind energy industry. In order to improve the economic viability of the renewable marine energies sector, and more particularly the offshore wind energy sector, the BEEMS project seeks to adapt those skills that are already available in companies to the needs of the offshore wind industry and to develop training programmes in this field. www.marinerenewableskills-beems.eu/uk

CAMIS: Channel Arc Manche Integrated Strategy The CAMIS Project aims to develop and implement an integrated maritime strategy in the Channel area. The CAMIS integrated maritime strategy is a document which aims to set out a series of common objectives and propose concrete solutions to address the key challenges faced bythe Channel area. Main actions include the development of a series of tools to promote sustainable maritime governance of the Channel area as well as carrying out actions around four themes including workforce development, innovation and maritime clusters, and transport and maritime safety. https://camis.arcmanche.eu/home

CHANNEL MARINE ACADEMY: Employment and training in marine industries This project will raise awareness among unemployed, untrained and poorly social- integrated young people as regards training opportunities in the marine and nautical sector, while aiming to create a cross- border network of maritime businesses. www.channelmarineacademy.eu

DEEDS: Develop Economic Exchanges between Dieppe & Sussex in: Naval, Agro-food, Aeronautics, MRE and Logistics The DEEDS Project (Dieppe-Sussex Trade Development) is based on the results of a Dieppe Chamber

Channel MOR | Appendix of Commerce study conducted in 2009 amongst Dieppe businesses. This survey emphasises these companies’ high expectations to get to know the UK market and to consider the possible development of their business across the Channel. The DEEDS project thus offers to address this need for support by promoting cross- border cooperation between businesses in Sussex and Dieppe. The project aims to stimulate economic development by encouraging cross-border cooperation between companies from both regions to enable them to expand their respective market and collaborate in areas such as: subcontracting, co-contracting, research or innovation. The project will lead to a controlled and balanced cross-border economic development, which will not rely exclusively on independent businesses but on a whole industry, activity sectors and business networks. www.deedsbtob.com

MERiFIC: Marine Energy in Far Peripheral and Island Communities The MERiFIC project seeks to advance the adoption of marine energy on the island communities of le Parc Naturel Marin d’Iroise (Finistère) and the Isles of Scilly (Cornwall). The partners identified specific opportunities and issues faced by peripheral and island communities (including technology support, public policies and regulation and sustainable economic development) in exploiting marine renewable energy resources. Their aim is to develop toolkits and resources for use by other similar communities. www.merific.eu

MER INNOVATE: E-maintenance in the Marine Renewable Energy industry The MER- Innovate project is focusing on e-maintenance of turbines and the use of new technologies to support the growth of a cluster on renewable marine energies. www.merinnovateproject.eu/en

Channel MOR | Channel MOR (Marine O shore Renewables) is a project developed under the INTERREG IVa France (Channel) England programme. Channel Marine The project’s overall aim is to capitalise on the MRE knowledge that has been O shore MOR Renewable developed under INTERREG IVa projects (including those listed below). www.channelMORenergy.eu

Participating Projects:

2OM BEEMS CAMIS Channel Marine Academy

www.20mproject.eu www.marinerenewableskills-beems.eu camis.arcmanche.eu www.channelmarineacademy.eu

Sharing offshore Common standards for Channel Arc Employment maintenance training in Marine Manche Integrated and training activities on Renewable Energy in Strategy in marine Channel the cross border industries region

DEEDS MERiFIC MER Innovate

www.deedsbtob.com www.merific.eu/fr www.merinnovateproject.eu

Develop Economical Marine Energy in Remote Exchanges between Far Peripheral maintenance in the Dieppe & Sussex in: and Island Marine Renewable Naval, Agro-Food, Communities Energy industry Aeronautics, MRE and Logistics