National Programme for Offshore Wind Energ
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1 Document prepared by Foundation for Sustainable Energy as a part of two projects: “National programme for offshore wind energy development in Polish maritime areas” and “Creating stable and efficient support mechanism for renewable energy in Poland.” Draft of Polish offshore wind energy and maritime industry development programme Team of authors supervised by Maciej Stryjecki (Mariusz Wójcik, Jakub Sokołowski, Justyna Biegaj, Beata Bojanowska, Aleksander Gabryś) Technical editor: Magdalena Jankowska Cover by: Jerzy Opoka Cover photo: Zentilia – Dreamstime.com Foundation for Sustainable Energy Al. Wilanowska 208/4, 02-765 Warszawa www.fnez.org , www.offshorepoland.eu Warsaw, 2013 2 Document prepared by Foundation for Sustainable Energy as a part of two projects: “National programme for offshore wind energy development in Polish maritime areas” and “Creating stable and efficient support mechanism for renewable energy in Poland.” 3 Table of Contents Definitions and abbreviations 8 Introduction 10 Non-specialist summary 12 1. The potential of development of offshore wind farms in Polish maritime areas 22 1.1. Theoretical potential 22 1.1.1. Location availability 22 1.1.2. Wind conditions, productivity 23 1.2. Technical potential 25 1.2.1. Grid connection possibilities 25 1.2.2. System conditions 25 1.2.3. Delivery and logistics facilities 29 1.2.4. HR resources 31 1.3. Market potential 32 1.3.1. Limitations resulting from the availability of locations 32 1.3.2. Limitations resulting from the efficiency 33 1.3.3. Limitations resulting from system conditions 34 1.3.4. Limitations resulting from the grid connection possibilities 35 1.3.5. Limitations resulting from the supply chain and available port facilities 36 1.3.6. Limitations resulting from the HR potential 37 1.3.7. Limitations resulting from the financial potential 37 1.4. Summary 39 2. Programme objectives 39 2.1. Quantitative objectives for OWF 40 2.2. Quantitative objectives for OWF 40 2.3. Economic objectives for OWF 41 2.3.1. Reduction of capital expenditures 42 2.3.2. Reduction of operating expenditures 43 2.3.3. Reduction of energy generation unit cost 44 2.3.4. Reduction of the amount of support 45 2.3.5. Increase of revenues and economic benefits 47 2.3.6. Summary of benefits and costs associated with the development of OWF 48 4 Document prepared by Foundation for Sustainable Energy as a part of two projects: “National programme for offshore wind energy development in Polish maritime areas” and “Creating stable and efficient support mechanism for renewable energy in Poland.” 3. Analysis of the current situation 49 3.1. Legal conditions 49 3.1.1. Location determination procedures 50 3.1.2. Environmental procedures 53 3.1.3. Construction permit 58 3.1.4. Support mechanism 60 3.2. Market conditions 64 3.2.1. Current stage of OWF projects development 64 3.2.2. Investment costs 66 3.2.3. OWF energy reception and transmission conditions 70 3.2.4. Supply market 71 3.2.5. Port facilities 77 3.2.6. Service facilities 81 3.2.7. Science and research facilities 82 3.2.8. HR resources 83 4. Compliance of the Programme with national policies and strategies 85 4.1. Energy Policy of Poland until 2030 85 4.2. National Renewable Energy Action Plan 87 4.3. Maritime Policy of Poland up to 2020 88 4.4. Seaports development strategy up to 2015 88 4.5. Poland 2020 89 4.6. Programme for the development of the power sector taking into account the renewable energy sources in the Pomeranian Voivodeshop up to 2025 91 4.7. Strategic documents in the energy sector at the EU level 91 5. Analysis of barriers 92 5.1. General barriers 92 5.1.1. I Stage of market development 92 5.1.2. II Stage of market development 93 5.1.3. III Stage of market development 93 5.2. Specific barriers 94 5.2.1. Policy 94 5.2.2. Legal conditions 95 5.2.3. Spatial and environmental conditions 95 5.2.4. Social conditions 95 5.2.5. Infrastructural conditions 95 5 Document prepared by Foundation for Sustainable Energy as a part of two projects: “National programme for offshore wind energy development in Polish maritime areas” and “Creating stable and efficient support mechanism for renewable energy in Poland.” 5.2.6. Economic and financial conditions 96 5.2.7. Market conditions 96 5.2.8. Technological conditions 96 5.2.9. Organisational conditions 96 6. Programme for executive actions 97 6.1. “Investment facilities” - executive programme 97 6.2. “Investment facilities” - executive programme 97 6.3. “Investment facilities” - executive programme 98 7. Managing the implementation of the Programme 99 7.1. Management at the national level 99 7.2. Management at the regional levels 100 7.3. Monitoring and reporting 100 List of maps 102 List of figures 102 List of tables 102 List of diagrams 102 6 Document prepared by Foundation for Sustainable Energy as a part of two projects: “National programme for offshore wind energy development in Polish maritime areas” and “Creating stable and efficient support mechanism for renewable energy in Poland.” 7 Definitions and abbreviations R&D – research and development KPA – Polish Code of Administrative Procedure BIZ – direct foreign investments NREAP – National Renewable Energy Action Plan CAGR – Compound Annual Growth Rate NPS – National Power System CAPEX – capital expenditures kV – kilovolt ULCIP Decision – the decision on establishing the kWh/m 2a – unit of mean annual wind potential per location of the public purpose investment given area DSU – decision on environmental conditions OWE – offshore wind energy The EIA Directive – Directive of the European OWF – offshore wind farm(s) Parliament and of the Council 2011/92/EU of December 13, 2011 on the assessment of the MPZP – local development plan impact of certain public and private projects on the MoU – Memorandum of Understanding environment TS – territorial sea EIB – European Investment Bank MTBiGM – Ministry of Transport, Construction and EEZ – exclusive economic zone Maritime Economy ENTSO-E – European Network of Transmission MW – megawatt System Operators for Electricity MWh – megawatt hour WPP – wind power plant(s) NSCOGI – North Seas Countries Offshore Grid EWEA – European Wind Energy Association Initiative FNEZ – Foundation for Sustainable Energy EIA – Environmental Impact Assessment GDOŚ – General Directorate for Environmental OPEX – operating expenditures Protection OPEXs – fixed operating expenditures GPZ – Main Transformer Station OPEXz – variable operating expenditures GW – gigawatt RES – Renewable Energy Sources HVAC – High Voltage Alternating Current CL – construction law HVDC – High Voltage Direct Current PWEA – Polish Wind Energy Association IEC – International Electrotechnical Commission PSZW – permit to IPW – internal connection infrastructure erect and exploit artificial islands, installations and IPZ – external connection infrastructure equipment within Polish maritime areas IRR – Internal Rate of Return EIA Report – report on the impact of the project EGUC – energy generation unit cost on the environment KfW – Reconstruction Credit Institute (Kreditanstalt RDOŚ – regional directorate for environmental für Wiederaufbau) protection KIP – Project Information Sheet 8 Document prepared by Foundation for Sustainable Energy as a part of two projects: “National programme for offshore wind energy development in Polish maritime areas” and “Creating stable and efficient support mechanism for renewable energy in Poland.” EIA Regulation – ordinance of the Council of environmental protection and environmental impact Ministers of November 9, 2010 on projects which assessment (Dz. U. [Journal of Laws] No 199, item may have a significant impact on the environment 1227, as amended) (Dz. U. [Journal of Laws] No. 257, item 2573, as amended) UPIZP – the Act on spatial development and planning CoO – certificate of origin URE – Energy Regulatory Office TWh – terawatt hour HV – high voltage TWh/a – terawatt hour per annum RCE – return on capital employed EIA Act – the Act of October 3, 2008 on publishing information about the environment ZSM – energy peak demand and its conservation, public participation in the 9 Document prepared by Foundation for Sustainable Energy as a part of two projects: “National programme for offshore wind energy development in Polish maritime areas” and “Creating stable and efficient support mechanism for renewable energy in Poland.” Introduction The discussion on the justness of the development of offshore wind energy (OWE) in Poland has been carried out for years. Decisions about the development of OWE are not easy due to the innovative nature of technology, high investment costs and long time and high risk involved in the execution of such investments. On the other hand, very high efficiency and stability of this low-emission renewable energy generation, considerably low operating costs and low social and environmental interference make this branch of industry one of the fastest growing in the European energy sector. However, the most important reason for the development of offshore wind energy market is its direct connection with the offshore industry. Production of components for offshore wind power plants and vessels necessary for their construction and maintenance in shipyards and services provided by seaports are today a major stimulus driving the process of modernisation and growth of the European - and also the Polish - offshore industry. The development of Polish coastal regions depends strongly on the condition of the domestic offshore industry. Failure to develop offshore wind energy in Polish maritime areas would be detrimental to the economy and the societies of those regions. Especially, if the Polish shipyards have already taken the serious effort and invested in the preparation and development of production facilities for foundations, towers and transport and construction platforms for offshore wind power plants. In 2009-2011 the Polish Government and Parliament successfully implemented a new system of issuing location decisions for offshore wind farms in the Polish exclusive economic zone, after recognising the justness of the development of offshore wind energy and industry in Poland.