UK offshore wind supply chain: capabilities and opportunities A report prepared by BVG Associates for the Department for Business, Innovation and Skills Subtitle January 2014 BVG Associates BVG Associates is an independent consultancy with a global outlook, specialising in the technology, delivery and economics of wind and marine energy generation systems. We specialise in market analysis, supply chain development, technical innovation and project implementation enhanced by our hands-on experience and deep understanding of technology. Our team has the best objective knowledge of the market and supply chain for wind turbines in the UK, derived from over 140 combined years of experience. Our sole purpose is to help clients establish renewable energy generation as a major, responsible and cost-effective part of a sustainable global energy mix. Authors Alun Roberts specialises in offshore wind supply chain analysis and development. He draws on a broad understanding of the offshore wind supply chain and project procurement trends in undertaking analyses on socioeconomic impact and skills analysis. A key area of work has been in enhancing the industry’s understanding of UK content in offshore wind farms and led work on developing a methodology for measuring the UK content of future wind farms on behalf of the Crown Estate and the Offshore Wind Programme Board. Mike Blanch focuses on wind turbine technology, support for innovation programmes, and wind farm implementation which has included due diligence for investors, economic modelling of offshore and onshore wind; medium sized wind turbine site selection and development, technical review and market forecasting, technical monitoring and assessment of R&D programmes and reliability. Jess Weston undertakes industry research and engagement, market research, database development, socioeconomic analysis, and site selection and feasibility analysis. Jess has worked on a range of high profile projects undertaking numerical analysis and data gathering as well as wide ranging industry consultation. Bruce Valpy founded BVG Associates in 2005 and has created a rapidly growing, diverse client base that includes the market leaders in the wind turbine and tidal turbine sectors, trade bodies, UK Government, utility providers, multi-nationals and private companies on four continents. He combines deep technical, engineering design and market knowledge to make a difference to customers both at the operational and strategic level. Cover picture: JDR Cable Systems. Credit: Steve Morgan © BVG Associates 2014 2 UK offshore wind supply chain: capabilities and opportunities Contents 1. Introduction ............................................................................................................................................................................. 7 2. Methodology ........................................................................................................................................................................... 8 2.1. Industry engagement ........................................................................................................................................................ 8 2.2. UK supply chain assessment ............................................................................................................................................ 8 3. Development and project management ................................................................................................................................ 13 3.1. Wind farm design ............................................................................................................................................................ 13 3.2. Surveys ........................................................................................................................................................................... 15 4. Turbine supply ...................................................................................................................................................................... 18 4.1. Turbine nacelle assembly ............................................................................................................................................... 18 4.2. Blades ............................................................................................................................................................................. 20 4.3. Castings and forgings ..................................................................................................................................................... 22 4.4. Drive train ....................................................................................................................................................................... 26 4.5. Tower .............................................................................................................................................................................. 28 5. Balance of plant supply ......................................................................................................................................................... 31 5.1. Subsea array cables ....................................................................................................................................................... 31 5.2. Subsea export cables ..................................................................................................................................................... 33 5.3. HVAC substations ........................................................................................................................................................... 37 5.4. HVDC substations .......................................................................................................................................................... 39 5.5. Monopile foundations ...................................................................................................................................................... 43 5.6. Non-monopile steel foundations ..................................................................................................................................... 45 5.7. Concrete foundations ...................................................................................................................................................... 47 6. Installation and commissioning ............................................................................................................................................. 52 6.1. Installation ports .............................................................................................................................................................. 52 6.2. Foundation installation .................................................................................................................................................... 56 6.3. Subsea cable installation ................................................................................................................................................ 60 6.4. Turbine installation .......................................................................................................................................................... 62 7. Operation, maintenance and service .................................................................................................................................... 65 7.1. Operation, maintenance and minor service .................................................................................................................... 65 7.2. Major service .................................................................................................................................................................. 68 8. Support services ................................................................................................................................................................... 71 8.1. Full-scale test facilities .................................................................................................................................................... 71 3 List of figures Figure 2.1 Example graph showing the breakdown of subelement expenditure and the potential UK expenditure. ..................... 11 Figure 2.2 Breakdown of undiscounted capital and operational costs of a typical offshore wind farm. ......................................... 12 Figure 3.1 Breakdown of project development and management costs. ...................................................................................... 13 Figure 3.2 Breakdown of total wind farm design expenditure and potential UK expenditure. ....................................................... 14 Figure 3.3 Summary of considerations concerning wind farm design. .......................................................................................... 15 Figure 3.4 Breakdown of total survey expenditure and potential UK expenditure. ........................................................................ 16 Figure 3.5 Summary of considerations concerning surveys.......................................................................................................... 16 Figure 4.1 Breakdown of turbine supply costs. ............................................................................................................................. 18 Figure 4.2 Typical breakdown of total turbine nacelle assembly expenditure