The secret to getting ahead is getting started. Mark Twain

Transcription

1 Looking back, looking forward A UK perspective The secret to getting ahead is getting started Mark Twain Willis 1

2 Beauty in numbers 40 10% A turbine was installed offshore on average every 40 hours since June % The percent of UK s Exclusive Economic Zone taken up by offshore wind farms 13,000 1,452 As of June 2015 number of fully operational offshore wind turbines in UK waters Number of direct and indirect employees in the UK s offshore wind sector Estimated contribution of offshore wind to UK s electricity supply by % Current contribution of offshore wind to UK electricity 56% UK s share of European offshore wind installed capacity 3.5 In megawatts, the average capacity of an offshore wind turbine, compared to 2MW in 2005 Willis 2

3 Risk v cost efficiencies Willis 3

4 Lessons learnt! Costs! Subsidy! Grid parity Willis 4

5 The big debate versus Willis 5

6 Risk v cost efficiencies Willis 6

7 When it doesn t go according to plan Willis 7

8 Risk v cost efficiencies Willis 8

9 Offshore Wind CAR Claims ! 83.2% Share of total claims costs Over GBP 200,000,000 paid in claims since 2009 Average claim cost GBP 1,850,000 Since 2009, out of 60 projects all but three have experienced cable claims Most expensive cable claim exceeds GBP 20,000,000 + Vessel costs a major contributor i.e. GBP 150,000 + p/day for a CLB or DP vessel Lightning 3% Fire 1% Assembly 7% Deductible 10% Blades 4% 0% Cable 40%! Why are claims so common Poor workmanship Sub-contractor inexperience Recklessness due to tight deadlines Use of wrong vessel or equipment for the task Insufficient time allocated for sub-contractors due to high vessel costs sometimes shortened due to poor weather conditions Cable laying is a complicated task i.e. busy shipping lanes, poor weather and tidal effects etc. Foundations 15% Electrical 14% Collision 7% Source: Offshoring Cable Insurance & Loss Adjustment, Lloyd Warwick International Willis 9

10 Main causes of cable damage! Damage to submarine cable is mainly caused by human activities, < 10% due to natural hazards 0% Others 22% Fishing 63% Suspensions 6% Causes of Submarine Cable Damage (CIGRE 2009) Cableship activities 1% Earthquakes 4% Fish bite 3% Dredging / Drilling 1% Source: Offshoring Cable Insurance & Loss Adjustment, Lloyd Warwick International Willis 10

11 Health & Safety Statistics 2014! Key Facts 959 reported incidents Incident severity summary 0 fatalities 44 total lost work days! Work Process 228 incidents during marine operations* 140 lifting operations incidents 134 incidents occurred when operating plant and machinery! Incident Area Hazards Near Hits First aid Medical treatment injuries Restricted word days Lost work days Incident area 369 incidents occurred in the turbine region 315 incidents occurred onshore Source: 2014 Incident data report, G9 Offshore wind health and safety association 243 incidents occurred on vessels Willis 11

12 A new exposure to OWF Willis 12

13 Key ingredients to ensuring success! Experience! Expertise! Insight * Further reading: Willis 13

14 Willis Limited The Willis Building 51 Lime Street London EC3M 7DQ United Kingdom t: +44 (0) Copyright 2015 Willis Limited. All rights reserved: No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, whether electronic, mechanical, photocopying, recording, or otherwise, without the written permission of Willis Limited. Willis Limited, Registered number: England and Wales. Registered address: 51 Lime Street, London EC3M 7DQ. A Lloyd s Broker. Authorised and regulated by the Financial Conduct Authority. Willis 14