North Sea Wind Power Hub
April-3-2017 Mel Kroon, CEO TenneT KNAWMel Kroon, AcTI (03MelCEO April Kroon TenneT 2017) (CEO TenneT) Torben Glar Nielsen, CTO Energinet.dk TenneT at a glance Europe's first cross-border grid operator
EBIT Assets Investments Connected 3,040 (2017-2027) offshore wind Internal farms employees 834 18,974 25 (EUR million) (EUR million) (EUR billion) 16
Total grid Number of Number of Total offshore Grid length end-users transformer wind availability substations connections 41 99.9999% 22,500 km million 454 9
Investments account for 16.7% of 150 billion in the EU. Number of end-users account for 7.7% of a total of 532 million in the EU.
Figures for the year ended 31 December 2016 based on underlying financial information
North Sea April-3-2017 Wind Power Hub Energy transition: offshore Germany Offshore Germany: 10,732 MW in 2025
Operational in 2016: 5,221 MW Ready in 2019: 7,132 MW Planned (2025): 10,732 MW Koppeling Duits windpark aan NL net (Eemshaven)
Project MW Commissioning Operational alpha ventus 62 2009 BorWin1 400 2010 BorWin2 800 2015 DolWin1 800 2015 DolWin2 916 2016 HelWin1 576 2015 HelWin2 690 2015 Riffgat 113 2014 SylWin1 864 2015 Under construction BorWin3 900 2019 DolWin3 900 2018 Nordergründe 111 2017 Ʃ 7.132
Planned in 2025 North Sea April-3-2017 13 DolWin6, DolWin5, BorWin5Wind , SylWin2 Power Hub 3.600 Energy transition: Offshore Netherlands
3,500 MW extra in 2023
• According to “Energie-akkoord” • Cables Borssele Alpha and Beta: NKT - VBMS • Platforms Borssele Alpha and Beta: HSM Offshore • Route Hollandse Kust Zuid: via Maasvlakte • Preparations for Hollandse Kust Noord • Borssele Alpha 7.27 and Borssele Beta 5.45 c/kWh • Energy-agenda: + 1 GW/year, from 2026 without subsidies, TenneT to connect
Area Operational MW Km
Borssele Alpha 2019 700 61
Borssele Beta 2020 700 68
Hollandse Kust Zuid Alpha 2021 700 44-58
Hollandse Kust Zuid Beta 2022 700 36-50
Route in Hollandse Kust Noord AlphaNorth Sea 2023 700 April-3-2017 development Wind Power Hub 12 North Sea Wind Power Hub
Paris climate agreement 80-95% CO2 reduction in 2050
Needed in Europe in 2050 150 GW North Sea Wind
Regional cooperation is essential Barriers: • Subsidy schemes • Focus on national sustainability goals
North Sea April-3-2017 Wind Power Hub Development wind energy & offshore grid Offshore wind has to close the gap between ‘business as usual’ and climate agreement Paris/Copenhagen (COP21)
COP21 150
23 20 d 100 n yo be /y W GWinstalled G 50 4 ual s us ss a line sine Pipe Bu Realised 2023 2000 2050
Source: Ecofys (commissioned by TenneT) North Sea April-3-2017 Wind Power Hub Development wind energy & offshore grid Cost reductions by coordinated approach North Sea Wind Power Hub
Radial grid connection North Sea Wind Power Hub
Source: Ecofys (commissioned by TenneT) North Sea April-3-2017 Wind Power Hub Solar pv: ongoing price decline
Source: renewableenergyhub.co.uk
North Sea April-3-2017 Wind Power Hub Sun needs wind Complementary sources during the year
*Dominik Heide et al. Renewable Energy 35: • Best solar pv : wind ratio for Europe = 1 : 2 * Seasonal optimal mix of wind and solar power in a future, • 1 kWh solar pv 2 kWh wind energy highly renewable Europe
North Sea April-3-2017 Wind Power Hub Price development offshore wind (1) Break through with Borssele and Kriegers Flak projects in the Netherlands and Denmark System • Tenders: competition
200 • Standardisation • Bigger turbines • Bigger wind farms €/MWh 150 • Permits taken care of • Seabed surveys 100 Market
50 • Low interest rate • Low steel price • Low oil price 0 Ger UK NL NL DK Bel 2012 2014 2016 2016 2016 2016 2016 ( €/MWh prices based on national subsidy schemes ) Rentel (B) 130 /MWh Norther (B) 124 /MWh Borssele I,II 72 €/MWh Borssele III,IV 55 €/MWh North Sea April-3-2017 Kriegers Flak 50 €/MWh Wind Power Hub Price development offshore wind (2) Offshore wind: price decline Netherlands versus Germany
i.a. 149 €/MWh • Water depth • Wind profile • Distance to shore i.a. • Tender system • Subsidy level 55 €/MWh i.a. • Interest rate • Contract margins • Steel price
Germany Project variables TenderPolicy factors system MarketUnaccounted conditions The Netherlands
North Sea April-3-2017 Wind Power Hub Challenge for wind energy
Wind energy on land Wind energy near shore Wind energy far shore • Construction (expensive) • Maintenance (expensive) • Infrastructure (expensive)
Challenge • German solution: expensive • How to get cost level down? Below or comparable to near shore • How to integrate in the environment? • How to cooperate internationally? • Far shore for same price as near shore
Solution: location
Shallow waters Water depth has a significant impact on the development for offshore wind. A development in shallow waters contributes significantly to cost reduction.
Wind conditions Wind conditions get better further at sea, which partially compensates the increase in cost for distance.
Central location For a European coordinated roll-out, a central location is important.
North Sea April-3-2017 Wind Power Hub Solution: location
North Sea April-3-2017 Wind Power Hub Solution: scale & growth
• Maximize scale: 350 MW 700 MW 1,000 MW or 2,000 MW • A cost reduction of 10 to 15% is expected from scale and growth effects in the supply chain. Key contributors to this cost reduction:
Increased learning curve in supply chain: expected reduction of 5-7% Mass production optimization: expected reduction 5-7%
• Continuity: important for cost reduction
Clustering, scale effects, standardization and supply chain management are expected to reduce cost by 10 to 15%*
North Sea April-3-2017 Wind Power Hub *Source: Ecofys, Royal Haskoning/DHV, June 2016 Solution: infrastructure The ‘wind-connector’: offshore wind infrastructure and interconnector are one
Country A ~40% ~40% Country B
100%
Country A Country B ~100% ~100% North Sea Wind Power Hub The Power Link Island: a modular approach (30 GW per island, 70-100 GW in total)
• Far shore becomes near shore • Distribution point for different countries
North Sea • April-3-Space2017 for multiple converters (AC DC) Wind Power Hub Solution: North Sea Wind Power Hub Hub and spoke model
Studies • Windconnector NL - UK • (small) Power Link Island on IJmuiden Ver wind area • Electrification oil & gas platforms IJmuiden Ver
Cooperation • Energinet.dk • Partnerships other infrastructure operators
North Sea April-3-2017 Wind Power Hub Offshore wind 3 phase (parallel) development
Short Term Under development at the time (near shore) Medium Term Use full potential near shore locations. Preparation for international cooperation Long Term Far shore 150 GW: North Sea Wind Power Hub (70-100 GW) International cooperation necessary
North Sea April-3-2017 Wind Power Hub Fase 1: Energy agreement NL
• TenneT: offshore grid operator • 3,500 MW to 2023 • 5x700 MW in standardized concept
Gebied Operational MW
Borssele Alpha 2019 700
Borssele Beta 2020 700
Hollandse Kust Zuid Alpha 2021 700
Hollandse Kust Zuid Beta 2022 700
Hollandse Kust Noord Alpha 2023 700
North Sea April-3-2017 Wind Power Hub Fase 2: Other locations NL
Offshore grid concept voor wind area 90 km IJmuiden Ver
Research: • Technology: AC or DC • Wind farms combined with interconnector to UK: ‘windconnector’ • Powerlink Island • Optimal use of space: heli routes • IJmuiden Ver: potential of 6,000MW
From 2024 to about 2035
North Sea April-3-2017 Wind Power Hub Fase 3: North Sea Wind Power Hub
North Sea April-3-2017 Wind Power Hub Ecological aspects In close consultation with environmental organizations
• Dogger Bank = Natura2000 area
• Continuous alignment with NGO’s
• Vast experience in preventing ecological impact
• Biodiversity development
• Future of offshore wind depends on cost reduction
North Sea April-3-2017 Wind Power Hub Power to gas on Island Potential synergies
• Making green gas right at the wind power source. • Onsite flexible consumption of wind power reduce transmission losses and optimize grid utilization. • Gas is much cheaper to transport over long distances than power. • Potential synergies with existing North Sea gas infrastructure.
• After 2030 electrolysis is expected to be a mature technology for making green hydrogen
North Sea April-3-2017 Wind Power Hub www.tennet.eu
TenneT is a leading European electricity transmission system operator (TSO) with its main activities in the Netherlands and Germany. With approximately 22,000 kilometres of high-voltage connections we ensure a secure supply of electricity to 41 million end-users.
Taking power further