Baltic Sea offshore - A cost-effective solution for the Baltic Sea. wpd Offshore Stockholm Charlotte Bergqvist

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2 Baltic Sea offshore - A cost-effective solution for the Baltic Sea wpd Offshore Stockholm Charlotte Bergqvist

3 Disposition of presentation 1. wpd short facts 2. Offshore market outlook 3. Baltic offshore technology concept 4. Baltic offshore a new niche market within offshore? a) The possibilites b) The challenges c) The incentives

4 wpd group - facts

5 wpd offices GERMANY Bremen Bietigheim-Bissingen Egeln Kassel Osnabrück Ostenfeld Potsdam Rostock UK London FRANCE Boulogne Limoges ITALY Rome SPAIN Almería Valencia Valladolid SWEDEN Stockholm FINLAND Espoo POLAND Poznan Szczecin CROATIA Dubrovnik Šibenik ROMANIA Galati BULGARIA Varna CANADA Mississauga PANAMA Panama City CHILE Santiago de Chile ARGENTINA Buenos Aires VIETNAM Hanoi

6 wpd offshore - facts

7 Project Development wpd offshore projects GERMANY Baltic I (48.3 MW)* Baltic II (288 MW)* Hohe See (400 MW)* He Dreiht (595 MW)* Butendiek (288 MW) Aiolos (985 MW) Kaikas (415 MW) FINLAND Suurhiekka (400 MW) Korsnäs ( MW) SWEDEN Storgrundet ( MW) Finngrunden (1,500 MW) Klocktärnan (660 MW) Kriegers Flak II (640 MW)* Notos (265 MW) FRANCE DENMARK Calvados (500 MW) Kriegers Flak III (455 MW) Fécamp (500 MW) ITALY Vendée (580 MW) Margherita (500 MW) 2 further projects ( MW) 1 project with a capacity of 48.3 MW in operation 4 projects with a capacity of ~ 1,500 MW consented and under procurement 3 projects with a capacity of ~ 1,300 MW consented 7 projects with a capacity of ~ 4,300 MW (net) in advanced permission process 5 projects with a capacity of ~ 3,400 MW (net) in early stage of permission process * Sold wpd further involved by cooperation agreement

8 2. Offshore wind market outlook - Industry faces a major European break through The market for offshore wind is now emerging, just as the market for onshore wind was 20 years ago. Driving force is the fossil fuel dependency - more than 50% of EU's electricity consumption comes from fossil fuels. Offshore wind energy is one of Europe's greatest domestic energy sources - seven times the total EU electricity consumption. By 2020 the offshore wind power could be a competitive alternative for up to 60-70% of consumption, given the right conditions. Source: The European offshore wind industry - key trends and statistics, EWAE 2011

9 2. Offshore wind market outlook - Baltic Sea offshore potential Technical potential in the Baltic Sea > 2000 TWh!

10 3. Baltic offshore technology concept Offshore wind is very very expensive YES! TRUE IN THE NORTH SEA! Harsh conditions High saltiness Extreme wind and waves Deep waters Long distance to shore Tricky accessibility THE BALTIC SEA OFFERS OTHER CONDITIONS!

11 3. Baltic offshore technology concept Easier access to sites, less advanced vessels Less advanced technology due to milder conditions Cheaper maintenance thanks to better all-year-round accessibility

12 3. Baltic offshore technology concept Example: Storgrundet Söderhamn Capacity: max 265 MW No. of turbines: max 70 Wind measured 2 yrs (@ 100m above water, at site center): 8,1 m/s Production: 0,8 TWh Permit: Approved

13 3. Baltic offshore technology concept Storgrundet offshore project with onshore conditions meters of water depth Hard sea bottom 8,1 m/s at 100m height Brackish water Low waves Low turbulence No tide Ice Installation periods end March to November

14 3. Baltic offshore technology concept Storgrundet time schedule Construction permit : Approved Evaluation of possible options to reduce costs 2011 Grid concession by: 2011 Sea bed drillings Summer 2012 Construction start 2014

15 4. Baltic offshore a new niche market within offshore? = Onshore technology adapted to Baltic Sea conditions RESULT Costs reduced by > 20%!! (Example Storgrundet)

16 4. Baltic offshore a new niche market within offshore? The Vision Benefit from the great offshore potential in the Baltic Sea to build offshore wind farms cost-efficiently Create a safe and environmentally friendly energy production in the region Create a cluster of knowledge can be exported to our areas with similar conditions such as the Big Lakes in the States Create improved transmission lines passing through the offshore wind farms and interconnecting states around the Baltic Sea

17 4. Baltic offshore a new niche market within offshore? The Challenge Political support needed for private investors to go ahead Proposal: Support scheme similar to onshore wind + grid connection cost to be carried by net operator Transmission within the Baltic sea countries can be improved and optimized Build a network of actors working together!!

18 4. Baltic offshore a new niche market within offshore? - The Incentives Wind energy with low running costs contribute to price pressure on electricty. Diversify the ownership of production facilities (In Swe 80% owned by 3 companies) Reduce risks of high future fuel prices the Danish example.

19 4. Baltic offshore a new niche market within offshore? - The Incentives Källa: Risø, DTU Wind energy is lowering the price for electricity -> In Denmark by 30-40%

20 Summary There is a great potential There is cost-efficient offshore technology under development There are great employment effects and export possibilities There is money to save by reducing price for electricty! -> WHAT ARE WE WAITING FOR?!?!?

21 Charlotte Bergqvist Director wpd Offshore Stockholm c.bergqvist@wpd.se

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