Special edition for the inauguration of the Siemens Gamesa plant in 01/2018

WINDInformation fromstärken the City of Cuxhaven and Siemens Gamesa Renewable Energy

Deliveries have begun Production in full swing at the nacelle factory

From Cuxhaven to the offshore world: From there, the installation ship Apollo Numerous optimizations are in progress The first Siemens Gamesa wind turbines takes the turbines and uses an onboard on the four assembly lines – during ongoing built in the new plant have been installed crane to move them onto the foundations – production – that will bring all of the in Belgium’s Rentel offshore wind farm in 34 kilometers off the coast of Zeebrugge production stages up to speed, including the North Sea. The plant sends out deliver- in the North Sea. additional machines, tools, and equipment ies by ship on an almost weekly basis. for a perfectly coordinated material flow This delivery was a genuine coup for the “Our production is underway, but we’re still of the individual components. All 42 Rentel team, because the first nacelles arrived in the startup phase,” says Project Manager wind turbines will go online by the end of in March at the Ostend installation port Carsten-Sünnke Berendsen. “It will take a the year, supplying clean energy to 288,000 just in time for installation. few months to complete the ramp-up.” Belgian households.

Dear readers, At the same time, we’re experiencing an of Cuxhaven authorities, the State of Lower this issue of WINDstärken economic breakthrough thanks to the German Saxony, the federal government, and the EU. honors an event that is Offshore-Industry-Center Cuxhaven, which is With Siemens Gamesa’s establishment here, very special to me as drawing additional relocations and having a Cuxhaven is facing a tremendous new Mayor of Cuxhaven: significant effect on the regional economy. challenge. We look forward to collaborating the official inauguration with all the stakeholders to shape the future of the Siemens Gamesa With its optimal port infrastructures, logistics of the energy transition. plant in Cuxhaven, an occasion filled with joy services, and a wealth of production, instal- and optimism. lation, and service expertise, Cuxhaven has established its position on the market. This The company’s arrival here has been the pioneering investment in Cuxhaven as the beginning of a new era for our coastal city: German Offshore-Industry-Center Cuxhaven

Many jobs have been and are still being creat- could not have been implemented to such Dr. Ulrich Getsch, ed, and the job market is being revitalized. an extent without the tremendous support Mayor of Cuxhaven

CHANCES & PERSPECTIVES

How Siemens Gamesa stays on top Ready for the future Having produced over two-thirds of all the offshore wind turbines installed worldwide, Siemens Gamesa has an impressive history of success. But the competition is heating up. This spring on Capital Market Day, man- agement explained how the company can remain the market leader in the future.

Grimmershörn bay

How Cuxhaven benefits A city flourishes

Seaport – North Sea resort – small metrop- an increase of 3 percent in 2017 compared olis at the mouth of the Elbe River: Cux- to the previous year.” DEHOGA Chairman Future-oriented strategy: Offshore CEO Andreas Nauen haven has many faces. But now the city is Kristian Kamp reports more than 3.7 million on Capital Market Day, which took place in the spring Quality products from the coast changing dynamically and establishing itself hotel stays and attributes the 1.5 percent fish boulevard There are three cornerstones in the corpo- as a permanent fixture in the offshore wind annual increase to two factors: “The greater rate strategy L3AD2020 that will carry the industry. share of business guests in our hotel busi- company into the future. First, Siemens Made in Cuxhaven The establishment of the Siemens Gamesa ness and the offshore industry as a factor Gamesa will strive to offer the best technol- nacelle plant has unleashed “many positive specific to our location mean that there is ogy for the levelized cost of energy. Second, Pride shows on the faces of employees ev- “But everyone was motivated by our greater domino effects,” according to Markus greater capacity utilization in our business- the business model will be defined by agility ery time the gates of the Siemens Gamesa goal.” But there’s one area where the Heinig. As CEO of UnternehmensVerband es even during the winter months.” in order to respond more quickly and less factory open and another new 400-ton behe- assorted team of electricians, mechanics, Cuxhaven Elbe-Weser-Dreieck e. V. (UVC), Tourism in Cuxhaven has also picked up bureaucratically to customer demands. And moth rolls onto the cargo ship. And no won- logistics specialists, and many other disci- Cuxhaven’s business association, he sees over the past few years. The wind indus- the strategy’s third element is the digitaliza- der, because the work of many expert hands plines, refuses to compromise: quality. Only “significant economic effects for the region try and vacationers are not incompatible, tion of products and their manufacture. goes into the production of these high-tech nacelles that have passed their 24-hour test that primarily benefit the construction and because improvements in the infrastructure wind turbines on the North Sea coast. run with no errors are delivered. housing industry, retail trade, port indus- and the location’s image, along with positive The plant in Cuxhaven has already set its Well over 400 people have found jobs with tries, skilled crafts and trades, hotels and signals sent by the knowledge and technol- city´s shopping area course for the future: a uniform technology Siemens Gamesa: Counting local suppliers Business developers, employment agencies, restaurants, and a variety of service indus- ogy sector, make the city and surrounding platform. The highly cost-efficient direct- and service providers, the number comes to and personnel departments worked hand in tries.” Companies are expecting to see an countryside more attractive to tourists and drive wind turbine is produced here. almost 800. Together they’re convinced that hand to put together a highly qualified and increase in consumerism. “The annual total residents. “Our booming tourist trade and To reduce costs, the modern production offshore wind energy is making an essential motivated team. There were special selec- purchasing power will grow by 20 million, or the creation of the German Offshore-In- facility was built on the waterfront and is contribution to the success of the energy tion procedures, intensive training courses, possibly even 30 million Euros in the coming dustry-Center Cuxhaven complement one linked to the offshore supply chain via Ro/ transition, because working on the turbines and integration activities for all occupational years,” predicts Heinig. another perfectly, and are clearly separated Ro logistics. The plant is also advanced in leads to active climate protection. groups. The company deliberately solicited spatially,” emphasizes UVC CEO Heinig. The terms of digitalization: Robots are being talented women. The results are remark- The upward trend is already being felt. former decline in population has already deployed and flexible digital controller “For months, we struggled with tempo- able: The diverse teams are pooling all their “Incoming orders for skilled crafts are in- stabilized and the qualification level of components are installed in the completed rary arrangements and deficiencies: for skills to produce quality made in Cuxhaven. creasing,” says Yana Arbeiter, CEO of Kreis- the workforce has improved. The rate of plant. example, in the matter of buildings and a handwerkerschaft Elbe-Weser, the district unemployment in the Cuxhaven district has beach promenade factory cafeteria,” says project manager craftspeople’s association. “In the Cuxhaven dropped by almost one percent, and even Carsten-Sünnke Berendsen. and areas, we already saw 1.2 percent in the city.

2 3 ENERGY & PROGRESS

Drone inspection and repair robots Latest technologies for rotor blade maintenance

At Siemens Gamesa, this job will soon be taken over by automated camera drones. The drones follow a precisely defined course along all three blades of the turbines while taking high-resolution pictures of the sur- face. Smart software also helps analyze any damage: A computer program analyzes the images with millimeter precision while at the same time learning to evaluate damage more and more accurately.

Soon there will also be a machine to help with surface repairs. “Rope robotics” is the procedure by which a compact robot sus- pended from the hub rappels down to the Flying eye: Siemens Gamesa tests damaged area. Its automated arm is equipped automated rotor blade inspections with grinding, spatula, and painting tools. Responsible for 4.7 of the 5.4 GW of installed power, the majority of ’s offshore wind turbines are in the North Sea Rotor blades are among the most stressed The primary goal of almost all innovations components in a wind power plant. Regular in the wind industry is to reduce operating inspections are required to keep the blades costs. Computers can support experts more Offshore power for a clean future operating reliably for their lifecycle of 25 quickly and accurately than humans. Until years. Siemens Gamesa has recently begun now, technicians have been required to The North and Baltic Seas drive the energy transition using automated drones whose camera regularly inspect all sections of rotor blades images are evaluated by state-of-the-art offshore while working under uncomfort- It’s full steam ahead for the energy transi- nomic Affairs and Energy), some 27,200 This was the operators’ way of signaling that computer programs. able conditions suspended from a cable. tion: In 2017 the amount of power produced employees are working in the offshore wind the projects would be able to manage with- by German offshore wind turbines rose to an industry, generating an annual revenue out public funding as early as 2023/24. impressive 18.3 terawatt hours. That’s the of about two billion euros. That’s roughly But experts believe that the EEG 2017 equivalent to the power requirements of 40 percent of all employees working in the (Renewable Energy Sources Act 2017) will 5.2 million German households. With a offshore wind industry throughout Europe. curtail the expansion of offshore wind energy, Premiere of innovative storage in Hamburg power output of almost 5.4 GW, offshore The development of offshore wind energy especially as of 2020. That’s why they joined wind turbines are contributing more and is thus both creating jobs and driving the with the coastal states and unions to launch Hot rocks store power more to Germany’s security of supply. energy transition. the second Cuxhaven Appeal in September Nevertheless, forecasts for the German 2017, which calls for an expansion of at least For about three years, Siemens Gamesa Siemens Gamesa’s partner in the energy in- The offshore industry is also playing a sig- market are subdued. It’s true that the 20 GW by 2030 and 30 GW by 2035. After all, Renewable Energy has been researching dustry is HAMBURG ENERGIE GmbH, which nificant role in the German economy: first auction for projects in the North the wind parks on its doorstep are an import- power storage using hot rocks at a testing is testing the storage medium on the energy According to the latest figures from the and Baltic Seas in 2017 resulted in three ant economic factor for this city at the mouth facility in Hamburg. The findings are now markets. With the start of construction a few BMWi (German Federal Ministry for Eco- subsidy-free bids: of the Elbe River. being converted into a powerful project on weeks ago, Siemens Gamesa reached an a larger scale. Construction of the Future important milestone in the development of a Energy System (FES) – the first thermal en- key technology for the energy transition. ergy storage for wind energy using gravel as a storage medium – began in December on In times of sunny weather and high wind The simple principle behind this storage MILESTONES the site of aluminum manufacturer TRIMET conditions, renewable energies are avail- concept combines proven components in an Aluminium SE in Hamburg-Altenwerder. The able in large amounts, and the in-feed often innovative configuration. 2018 2019 2020 system heats roughly 1,000 tons of rock fill exceeds grid capacities. Storage systems act • Delivery of first nacelles manufactured • First grid connections with Offshore • Delivery of SG 8.0-167 to first projects in to approximately 600 degrees, which keeps as a buffer. This new development, supported For the process of converting electricity in Cuxhaven Transformer Module (OTM) instead the Netherlands, Denmark and the United of large substations Kingdom about 30 MWh of electric energy at the ready. by the German Federal Ministry for Econom- into hot air steam, it uses heating elements • Turbine installation at the offshore wind ic Affairs and Energy, offers an especially and fans from mass production. The same farm Rentel • 71 turbines commissioned at EnBW • Operational voltage of the park grid of Hohe See 66kV instead of 33kV in the interconnection • Official inauguration of the Cuxhaven plant The heat is re-converted to electricity via a economical storage solution: Excess wind applies to the re-conversion: A standard cables between the turbines becomes new • Turbine delivery to large UK offshore steam turbine. A generator rated at 1.5 MW energy is converted to heat and stored in steam turbine operated by a highly dynamic standard • Further suppliers establish facilities on site projects produces energy for up to 24 hours, during rock fill that is protected with an insulated Siemens steam boiler generates electricity • New foundation concepts applied to • Expansion of digital manufacturing • Preparation for serial production of contribute to cost out in capital expenses which time it can supply power to an esti- cover. When more electricity is needed, a at the end of the process chain. The plant will • Shore connection system at RoRo ramp 8-megawatts-version of Siemens mated 1,500 German households or charge steam turbine converts the heat energy back be commissioned in 2019. Gamesa’s large direct-drive offshore- • EnBW Albatros turbine installation turbine about 50 electric cars. into electricity.

4 5 TECHNOLOGY & LOCATION PEOPLE & OPINIONS

Plant engineering bound for success Interview Dr. Ursula Prall 1,000 wind turbines “Only a few projects succeed without funding”

Dr. Ursula Prall has been Chair of the German OFFSHORE WIND ENERGY Foundation for one Siemens Gamesa’s direct-drive offshore wind turbines are continuing their journey The law built up a system of incentives year now. She started at a turbulent time for the offshore industry, since just a little earlier, to success. Since the company announced its eight MW model with a rotor diameter of over a period of 15 years, and then abruptly in April 2017, the first auction for offshore wind farms in Germany had closed with zero-cent 167 meters, orders have been pouring in for projects in Denmark and the United Kingdom, dismantled it again in 2017.” bids. Bidders were thus opting to manage without any public funding for electricity from off- currently adding up to 1,000 plants to the order books. The Arkona Becken wind power plant shore wind farms, which they will be feeding into the grid from 2024/25. in the Baltic Sea, the Rentel wind farm in Belgium, and the British Walney extension have WINDstärken: What opportunities and Rotra Vente The industry is now reviewing the results of the second auction and is already preparing for already been supplied. The Beatrice project, also in Great Britain, will be followed by two risks does centralized offshore wind the third round. In the future, bidders will no longer go to auctions with fully developed off- more German wind farms. farm development by Germany’s Federal shore wind farm plans in place, but will bid on projects that are being developed using public Maritime and Hydrographic Agency (BSH) funds. WINDstärken talked with Ursula Prall about the opportunities and risks. present? “Under the central model, zones that are As part of the Cuxhaven appeal, we called tendered in a specific sequence are selected for the volume under development to be and provisionally explored. The successful expanded to at least 20 GW by 2030 and bidder still has to undertake the actual 30 GW by 2035. We maintain this require- project development process itself. ment because it’s justified by how costs This procedure provides the opportunity are developing. As a result of this auction, for an orderly development of the zone –

Rotra Mare grid connection systems representing more in terms of both time and place – and of than 700 MW remain unused: a settlement implementing the project swiftly in line with Rolling logistics concept must be reached as soon as possible to give the grid connection. As I see it, potential access to these transmission capacities – problems lie less in the new roles of the Excellent connections via the special tenders provided for in the authorities and the BSH, than in the way Coalition Agreement for offshore wind pow- the quantity structure is currently organ- to Ostend er, for example. An important effect of this ized. Because the path for development is round is the end to the transitional regime: too narrow, industrial development of the The ramp in front of the Siemens Gamesa the fate of projects that remain unawarded offshore sector will come to a standstill, and plant has stood the test. Since March, the is now sealed. “ climate protection with it.” special ship Rotra Vente has been regularly Dr. Ursula Prall, Chair of the German OFFSHORE WIND ENERGY Foundation (Photo: Enno Kapitza) docking there to pick up nacelles for Bel- WINDstärken: Starting from the third WINDstärken: What is your long-term gium’s Rentel offshore wind farm in Ostend. round of auctions, the public sector will forecast: will the new distribution of roles Everything’s based on a modern logistics WINDstärken: Dr. Prall, what is your view take over the role of project developer: lead to a reduction in the cost of offshore concept. Heavy transport via trucks and Successful model: SG 8.0-167 DD of the results of the offshore auction that what sort of response did this change of wind power in the future, or would it have loading by crane are largely a thing of the has just ended? model receive in the industry? been better to leave the task of project past. Instead, the 400-ton giants are rolled “This round once again saw a zero-cent bid “Ambivalent. This change excludes an entire development to the operators? No. of plants Wind turbine type Projekt name Country almost effortlessly out of the plant and onto accepted. Even so, the average figure for sector – the project developers – from “We still need to adapt to the way the roles the ship, for increased safety and about a 2018 the awarded bids was a more realistic 4.66 offshore wind energy. Another particularly have been distributed, but this factor will 20 percent reduction in logistics costs. cents per kilowatt hour. This value high- problematic aspect is the exclusion by law not determine whether costs go up or down. 60 SWT-6.0-154 Arkona Becken D Excellent connections are guaranteed by the lights the decline in costs, but also makes of projects at a greater distance from the Costs will be determined by technological 42 SWT-7.0-154 Rentel BE „roll-on/roll-off“ process and two special it clear that only a few projects can succeed shore (from distance class 3) and those that advances by the manufacturers – which first 47 SWT-7.0-154 Walney ext. East UK freighters. The Rotra Vente can carry eight without funding. had not reached a sufficient stage of devel- need a large enough market volume. Larger nacelles per voyage. The second ship, the 84 SWT-7.0-154 Beatrice UK opment by the time the changes were put project zones could further contribute to Rotra Mare, can hold three complete wind 71 SWT-7.0-154 Hohe See D It is gratifying to see the acceptance of bids in place. In both cases, it means a loss of a reduction in costs, and will certainly be turbine towers or 12 blades. 2019 for almost 750 megawatts (MW) in the Bal- value for investments in the tens of millions discussed as the work of zone develop- tic. These projects should be constructed by of euros, with no compensation whatsoever. ment planning proceeds. The key success 16 SWT-7.0-154 Albatross D as early as 2021/22, and will help cushion This has led to a strong sense of unease, factor will be a political will to make use of 174 SWT-7.0-154 Hornsea ONE UK the impact of the lull we have experienced and the situation is currently being reviewed offshore wind energy.” 102 SWT-7.0-154 East Anglia I UK for the past two years. under constitutional law. 2020 94 SG 8.0-167 DD Borssele I + II NL Sucess by qualification About 200 people have Roughly another 80 people have earned 41 SG 8.0-167 DD Vesterhav Sud /Nord DK “With this new arrival, we’re signaling a good been retrained in the supplemental qualifications in CNC mill- 74 SG 8.0-167 DD Kriegers Flak DK development for the labor market in the fields of industrial elec- ing and logistics, plus there are also the 2021 region. Strong demand for qualified workers trics, metal, and building interns for the Siemens Gamesa plant from offers people a chance to escape from unem- and property security. the Cuxhaven Job Center. The State 165 SG 8.0-167 DD Hornsea TWO UK REBO Terminal, Ostende ployment. Nearly 380 qualification measures Employment Agency and the Job Center Dagmar Froelich, have been carried out since April 2016. Chair of the Management Board, have invested some EUR 6 million so far in Stade State Employment Agency continuing training.”

6 7 Cooperation A joint trade show appearance by strong partners

The Ministry of the Economy of the State of Their booth measures an expansive 200 m2 , Seaports of Niedersachsen and is located in Hall B6. The Siemens Gamesa GmbH, and the Cuxhaven German Offshore booth is right next door. The offshore sector Industry Center will be presenting together in Lower Saxony and Cuxhaven is thus also for the first time this year at “WindEnergy highlighting the strength of its partnership Hamburg 2018.” by appearing as neighbors at the trade show. PEOPLE & OPINIONS How offshore wind parks will survive without subsidies by 2023 … The first German offshore auction in April 2017 ended with a bang: Ørsted (then Dong Energy) and EnBW, two major providers, immediately submitted subsidy-free bids. WINDstärken asked the Ørsted CEO and the head of Siemens Gamesa Offshore how economic projects can succeed in five to six years without subsidies.

energy market. However, our expectations of The course is now set: Our industrialized price development are rather conservative. production will pay off in just a few years. We’ve anticipated only a moderate increase Little by little, we’re improving the perfor-

even in the CO2 price, which affects the price mance and efficiency of the turbines, while of electricity. Our bid at the 2017 and 2018 digitalization enables us to derive maximum auctions was based on a detailed calcula- power from almost any wind situation. tion. Ultimately we have set important mile- stones in the young history of our industry We’re also getting better and better at build- with our subsidy-free winning bids.” ing plants: Our offshore installation time is now down to only 24 hours per turbine. Improved service concepts are another cost reduction factor. We’re using digital plant monitoring and special ships for technicians to further reduce plant downtime. Volker Malmen, CEO of Ørsted in Germany: We also need to produce less expensive foundations and towers. One way we’re “Ørsted has built more offshore wind capac- working on this is our Danish research proj- ity worldwide than any other company, so we ect Nissum Bredning, where we’re simply were able to call on our years of experience casting the transition pieces out of concrete. when preparing for the auctions. We’ve been Their extreme weight absorbs vibration and developing, building, and operating offshore even saves on steel for the towers. wind parks for 25 years. Over the course of more than twenty wind-projects that we I’m confident that we’ll be able to meet the have built in the meantime, tremendous challenge of subsidy-free projects because progress has been made in terms of cost Andreas Nauen, CEO Offshore at all disciplines are working on it together: reductions, innovations, and technological Siemens Gamesa Renewable Energy: logistics providers, foundation and tower development. Like the manufacturers of manufacturers, shipping companies, sub- plants and other subsystems, we as build- “Our industry has already experienced a marine cable manufacturers, colleagues at ers and operators have always been able to dynamic learning curve in terms of cost Siemens Energy Management with state- benefit from this progress, in part because reduction. It took conventional power plant of-the-art grid technologies, and Siemens of the trusting collaboration with our suppli- technology 50 years or more to become Gamesa as the leading supplier of offshore ers. Together we have reduced costs by 60 highly efficient. Offshore wind is moving wind turbines. And, of course, the operators percent over the past few years. This trend faster: Things really got going in Germany – our customers – with whom we’ve covered is continuing since we are far from having in 2011 with the inauguration of Baltic 1. a lot of territory since Baltic 1.” exploited all the cost reduction potential. The technology for unsubsidized offshore wind power plants will go online in six years. Naturally, bidding on projects that will go The wind power plant itself has about a 30 online in 2024 also involves forecasts for the percent effect on a project’s cost of energy.

Editor WINDstärken: Siemens Wind Power GmbH & Co. KG Agentur für Wirtschaftsförderung Cuxhaven Communications & Public Affairs Hilke von der Reith Anna Trost Kapitän-Alexander-Straße 1 Beim Strohhause 17–31 27472 Cuxhaven, Germany 20097 Hamburg, Germany Phone: +49 4721-599 718 Phone: +49 40 2889-8902 [email protected] [email protected] www.doiz.de Editing: Bernd Eilitz www.siemensgamesa.com 8