Comparative Analysis of International Offshore Wind Energy Development REWIND OFFSHORE March 2017 ABOUT THE IEA RETD TECHNOLOGY COLLABORATION PROGRAMME The IEA Renewable Energy Technology Deployment Technology Collaboration Programme (IEA RETD TCP) provides a platform for enhancing international cooperation on policies, measures and market instruments to accelerate the global deployment of renewable energy technologies. IEA RETD TCP aims to empower policy makers and energy market actors to make informed decisions by: (1) providing innovative policy options; (2) disseminating best practices related to policy measures and market instruments to increase deployment of renewable energy, and (3) increasing awareness of the short-, medium- and long-term impacts of renewable energy action and inaction. For further information please visit: http://iea-retd.org or contact [email protected]. Twitter: @IEA_RETD IEA RETD TCP is part of the IEA Energy Technology Network. DISCLAIMER The IEA RETD TCP, formally known as the Technology Collaboration Programme for Renewable Energy Technology Deployment and formerly known as the Implementing Agreement for Renewable Energy Technology Deployment (IEA-RETD), functions within a Framework created by the International Energy Agency (IEA). Views, findings and publications of IEA RETD TCP do not necessarily represent the views or policies of the IEA Secretariat or of its individual Member Countries. COPYRIGHT This publication should be cited as: IEA RETD TCP (2017), Comparative Analysis of International Offshore Wind Energy Development (REWind Offshore), IEA Renewable Energy Technology Deployment Technology Collaboration Programme (IEA RETD TCP), Utrecht, 2017. Copyright © IEA RETD TCP 2017 (Stichting Foundation Renewable Energy Technology Deployment) AUTHORS Lead Authors: The Carbon Trust is an independent, expert partner that works with public and private section organizations around the world, helping them to accelerate the move to a sustainable, low carbon economy. We advise corporates and governments on carbon emissions reduction, improving resource efficiency, and technology innovation. We have world-leading experience in the development of low carbon energy markets, including offshore wind. The Carbon Trust has been at the forefront of the offshore wind industry globally for the past decade, working closely with governments, developers, suppliers, and innovators to reduce the cost of offshore wind energy through informing policy, supporting business decision-making, and commercialising innovative technology. Rhodri James, Manager, The Carbon Trust Guy Henley, Associate, The Carbon Trust Mott MacDonald is a global engineering, management and development consultancy focused on guiding our clients through many of the planet’s most intricate challenges. Our expertise by sector includes buildings, communications, defence, education, environment, health, industry, mining, oil and gas, power, transport, urban development, water, wastewater and more. Our skills encompass planning, studies and design, project finance, technical advisory services, project and programme management, management consultancy and beyond. Stefanie Hintze, Wind Team Lead, Mott MacDonald Andrew Conway, Senior Regulatory Consultant, Mott MacDonald Contributing Author: Green Giraffe is a specialist advisory boutique focused on the renewable energy sector - and in particular offshore wind - launched in 2010 by experienced finance specialists. Jérôme Guillet, Managing Director, Green Giraffe ACKNOWLEDGEMENTS The Authors would like to thank the IEA RETD TCP REWind Offshore Project Steering Group (PSG) members, interview partners, and supporting colleagues. Project Steering Group Sarina Keller German Aerospace Centre (DLR), Germany Ignacio Marti ORE Catapult, United Kingdom Stephan Barth ForWind – Center for Wind Energy Research, Germany Sakina Mouhamad Ministry of the Environment, Energy and Sea, France Jonathan Brady Natural Resources Canada, Canada Thorsten Falk Federal Ministry for Economic Affairs and Energy, Germany Yasushi Ninomiya Institute of Energy Economics, Japan David de Jager IEA-RETD TCP, Operating Agent, Ecofys Kristian Petrick IEA-RETD TCP, Operating Agent, All Green Energies Coraline Bucquet IEA-RETD TCP, Operating Agent, Ecofys Interview Partners and supporting colleagues ● BSH (Bundesamt für Seeschifffahrt und ● RUG (University of Groningen) Hydrographie, Germany) ● Seaway Heavy Lifting ● C-Power ● Senvion ● Deepwater Wind ● Statkraft ● DONG Energy ● Stiftung Offshore ● Green Investment Bank ● TenneT, Germany ● Greenpower ● TenneT, Netherlands ● innogy ● The Crown Estate ● Macquarie ● TKI Wind op Zee ● Netherlands Enterprise Agency (RVO.nl) ● Vattenfall ● Niras Consulting ● WindEurope ● RenewableUK REWIND OFFSHORE: Comparative Analysis of International Offshore Wind Energy Development, March 2017 CONTENTS Executive Summary ................................................................................................................................. i 1 Introduction .................................................................................................................................. 1 1.1 Offshore Wind: Industry Overview ........................................................................................... 1 1.2 Report Outline ........................................................................................................................... 2 1.3 Approach ................................................................................................................................... 2 2 Offshore Wind: State of the Industry ........................................................................................... 3 2.1 Why offshore wind? .................................................................................................................. 3 2.2 Deployment trends ................................................................................................................... 4 2.3 Technology trends ..................................................................................................................... 6 2.4 Cost trends ................................................................................................................................ 8 3 Policy & Regulation ....................................................................................................................... 11 3.1 Market scale and visibility ......................................................................................................... 12 3.1.1 Policy tools ......................................................................................................................... 12 3.1.2 Lessons learned ................................................................................................................. 16 3.2 Site development ...................................................................................................................... 19 3.2.1 Policy tools ......................................................................................................................... 19 3.2.2 Site identification and leasing ............................................................................................ 22 3.2.3 Site surveys ........................................................................................................................ 26 3.2.4 Consenting and permitting ................................................................................................ 27 3.2.5 Lessons learned ................................................................................................................. 29 3.3 Grid policy ................................................................................................................................. 32 3.3.1 Policy tools ......................................................................................................................... 33 3.3.2 Lessons learned ................................................................................................................. 43 3.4 Incentive mechanisms ............................................................................................................... 45 3.4.1 Evolution with market maturity ......................................................................................... 45 3.4.2 Policy tools ......................................................................................................................... 47 3.4.3 Lessons learned ................................................................................................................. 53 3.5 Supply chain development ........................................................................................................ 60 3.5.1 Offshore wind supply chain ............................................................................................... 60 3.5.2 Policy tools ......................................................................................................................... 61 3.5.3 Lessons learned ................................................................................................................. 63 3.6 Innovation support.................................................................................................................... 67 3.6.1 Technology commercialisation .......................................................................................... 67 3.6.2 Policy tools ........................................................................................................................