Supply Chain for Round 3
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Offshore Wind UK Market Study 2011 A common initiative with Preface Strong Norwegian competence lies within the offshore sector and stems from more than 100 years of maritime shipping and North Sea oil and gas activities. The fine-tuned capabilities are now transferred to the offshore wind sector for technology and services conceptualisation. Companies developing the North Sea wind resources could benefit from the lessons learned in Norway and add complementary expertise in order to achieve their targets. In order to inform the Norwegian offshore industry participants about the opportunities in the two most important markets for offshore wind competence, Innovation Norway and INTPOW – Norwegian Renewable Energy Partners have collaborated to commission two studies - Offshore Wind Germany and Offshore Wind UK, both inspired by the two Norwegian Offshore Wind Clusters Arena NOWand Windcluster Mid-Norway. In order to promote the Norwegian offshore wind capabilities, Norwegian Renewable Energy Partners – INTPOW and Innovation Norway have also commissioned a market Study and mapping of the emerging Norwegian offshore wind supply chain. Innovation Norway Innovation Norway promotes nationwide industrial development profitable to both the business economy and Norway‟s national economy, helps to release the potential of different districts and regions by contributing towards innovation, internationalisation and promotion. Norwegian Renewable Energy Partners - INTPOW INTPOW promotes the Norwegian renewable energy industries internationally and facilitates partnerships between Norwegian and international industry participants, including in offshore wind. It is a non-profit joint venture between the Norwegian renewable industry and the Norwegian Government. BVG Associates Contents Contents .............................................................................................................................................. iii List of figures ....................................................................................................................................... iv List of tables ......................................................................................................................................... iv Executive summary ............................................................................................................................... 1 Introduction ......................................................................................................................................... 2 1. Market conditions........................................................................................................................ 3 1.1. Political targets ........................................................................................................................... 3 1.2. Installation forecast .................................................................................................................... 3 1.3. Offshore turbines and balance of plant demand .............................................................................. 6 1.4. Installation services demand ........................................................................................................ 8 1.5. Funding ..................................................................................................................................... 9 1.6. Permitting frameworks .............................................................................................................. 10 1.7. Test and demonstration facilities ................................................................................................. 11 1.8. Contracting standards ............................................................................................................... 11 1.9. Market barriers ......................................................................................................................... 12 2. Market structure ....................................................................................................................... 14 2.1. Stakeholder organisations .......................................................................................................... 14 2.2. Offshore wind farm developers and owners .................................................................................. 17 2.3. Offshore transmission owners ..................................................................................................... 18 2.4. Supply chain ............................................................................................................................ 19 2.5. Industry alliances and consolidation ............................................................................................ 24 2.6. Projects and supply chain structure ............................................................................................. 26 2.7. Project details .......................................................................................................................... 29 Endnotes............................................................................................................................................ 37 Contents iii List of figures Figure 1 Forecast annual and cumulative UK offshore installation to 2020. ....................................................... 4 Figure 2 Indicative outlook for UK offshore installation to 2050. ...................................................................... 4 Figure 3 Geographic spread of UK offshore wind farms to 2020. ...................................................................... 5 Figure 4 Forecast UK turbine demand to 2020. ............................................................................................. 6 Figure 5 Forecast UK turbine foundation demand to 2020. ............................................................................. 6 Figure 6 Forecast UK subsea export cable demand to 2020. ........................................................................... 7 Figure 7 Forecast UK subsea array cable demand to 2020. ............................................................................. 7 Figure 8 Forecast UK substation HVAC transformer and HVDC convertor demand to 2020. ................................. 7 Figure 9 Forecast UK turbine and foundation installation vessel demand to 2020. .............................................. 8 Figure 10 Forecast UK subsea cable installation vessel demand to 2020. .......................................................... 8 Figure 11 Potential UK east coast manufacturing cluster locations. .................................................................. 9 Figure 12 Developer share of UK operating offshore wind farms (MW). .......................................................... 17 Figure 13 Developer share of UK offshore wind farms under construction (MW). ............................................. 17 Figure 14 Developer share of UK offshore wind farms in planning (MW). ........................................................ 17 Figure 15 Suppliers of wind turbines to the UK offshore wind market from 2003 to 2011. ................................ 19 Figure 16 Suppliers of turbine foundations to the UK offshore wind market from 2003 to 2011. ........................ 20 Figure 17 Installers of turbines in the UK offshore wind market from 2003 to 2011. ........................................ 20 Figure 18 Installers of foundations in the UK offshore wind market from 2003 to 2011. ................................... 21 Figure 19 Suppliers of export cable to the UK offshore wind market from 2003 to 2011. .................................. 21 Figure 20 Suppliers of array cable to the UK offshore wind market from 2003 to 2011. .................................... 22 Figure 21 Installers of export cable in the UK offshore wind market from 2003 to 2011. .................................. 22 Figure 22 Installers of array cable to the UK offshore wind market from 2003 to 2011. .................................... 23 Figure 23 Suppliers of substation electrical systems to the UK offshore wind market from 2003 to 2011. ........... 23 Figure 24 Breakdown of CAPEX costs for UK offshore wind farms in 2010. ...................................................... 26 Figure 25 EPC supply chain structure. ........................................................................................................ 27 Figure 26 Multi-contract supply chain structure. .......................................................................................... 28 Figure 27 UK offshore wind farm development sites (The Crown Estate, supplied April 2011). .......................... 30 List of tables Table 1 Abbreviations used. ...................................................................................................................... 29 Table 2 UK project description. ................................................................................................................. 31 iv List of figures and tables competition from overseas players who in many Executive summary cases have a long track record of delivery to the wind industry. General conditions It should be noted that, while the UK Government As part of its efforts to meet targets under the EU‟s and other public stakeholder bodies are actively Climate and Energy package, the UK Government encouraging interest from overseas companies in expects that about 30 per cent of its electricity will