The Super Smart Windy Grid – The Offshore Option Presentation by Peter McGarley RenewableUK 2010 Glasgow SECC 3 rd November

Senergy Econnect International consultants and advisors in renewable energy and grid integration Over 50GW of grid integration studies for wind with ~3GW projects connected Services include: Electrical engineering On-site generation Grid connection feasibility Grid code compliance Due diligences Commercial & regulatory Geophysical and geotechnical consultancy Cable routing and burial protection indices Consultancy Smartgrid products Electrical design Technical adviser Technical services Strategic services Foundation design, construction and installation assessment

EU OffshoreGrid PROJECT DNA Techno-economic study Coordinator 3E, 8 partners, consultancy & applied research Budget: 1.4 million euros Funding: 75% from Intelligent Energy Europe (Contract IEE/08/780/SI ) May 2009 to October 2011

Consortium Members CONSULTANTS 3E: strategy, techncial coordination, management Senergy Econnect: Grid design optimisation IEO: thorough knowledge on wind power policy dena: power markets and regulatory situation APPLIED RESEARCH Sintef: power market model and TradeWind experience Uni Oldenburg: energy meteorology NTUA: wind energy in the Mediterranean INDUSTRY ASSOCIATION EWEA: communication and technical review STAKEHOLDER INPUT / REVIEW

EU OffshoreGrid GENERAL OBJECTIVES Recommendations on topology and capacity choices Guideline for investment decision & project execution Trigger a coordinated approach for the Mediterranean ring SPECIFIC OBJECTIVES A selection of blueprints for an offshore grid Business figures for investments and return Insight in interaction of design drivers and techno-economic parameters Representative wind power time series Feedback from & acceptance by stakeholders

EU OffshoreGrid Senergy Econnect scope: To provide the technical design for an integrated offshore transmission network allowing connection of offshore wind and marine renewables and interconnection between the countries of the Baltic and North Seas for the purposes of arbitrage where justified Technical design is integrated in to a power market model of the European grid produced by SINTEF to assess power flows on offshore grid – iterative process To provide a cost estimate for such a network or networks

EU OffshoreGrid Reference Planned offshore wind and marine Country OffshoreGrid offshore scenario Belgium Denmark Estonia Finland France Germany Ireland Latvia0900 Lithuania Netherlands Norway Poland Russia0500 Sweden UK Total Northern EU Total OffshoreGrid

EU OffshoreGrid Reference ENTSO-E - TYNDP

Radial Scenario Initial step – define radial scenario Each project connected radially to selected onshore connection point Appropriate technology solution selected based on project capacity, timing and connection distance, e.g. HVAC technology ineffective beyond 80km Projects <2020 use technology commercially available today Projects >2030 use evolved technologies Connection distance determined by GIS plots around subsea obstacles

Key Design Assumptions OffshoreGrid technology used to be evolutionary rather than revolutionary Pre kV HVAC 3 core subsea cable +/- 150kV 400MW HVDC Voltage Source Converters kV HVAC 3 core subsea cable +/-320kV 1000MW HVDC Voltage Source Converters 320kV XLPE subsea HVDC cable kV HVAC 3 core subsea cable +/-500kV 2000MW HVDC Voltage Source Converters 500kV XLPE subsea HVDC cable HVDC Circuit Breakers

Radial Scenario

Statistics: Total Connected Capacity = 129GW Total Cost = bn 643k/MW Total length of cable = 31,500km 294 HVDC VSC converter stations

Hubs 1 st stage of Offshore Grid Group projects into hubs and share export cables Cost effective Less cabling Fewer cables at landfall Risk of stranded assets

Case Study German Hubs Total Connected Capacity = 26.6GW Hubs Total Cost = 18,650m (15,280m excluding onshore cables) 702k/MW (575k/MW excluding onshore cables) Base Case Comparison Total Cost = 28,069m (20,116m excluding onshore cables) 1057k/MW (758k/MW excluding onshore cables)

Meshed OffshoreGrid Connect +/- 320kV and +/-500kV hubs Defined by prototype Grids Justified by further need for arbitrage between countries Capacity for interconnection to be established from market model iterations

Meshed OffshoreGrid Comparison: Look at Additional Direct Links Higher capital cost No constraint Key – determine balance of cost and constraint from modelling

EU OffshoreGrid Challenges Technical Onshore bottlenecks Technology e.g. different voltages used Market Planning uncertainties Risk & financing Variable generation vs long-term contract on cable Regulatory Different regulatory schemes Slow permitting procedures Unclear cost allocation & allowed profit margins Policy Renewable energy support schemes Political priorities

EU OffshoreGrid Stakeholder Meetings We want your input Held twice per year Next meeting: 22 nd November 2010 Berlin See details on or me afterwardswww.offshoregrid.eu

Senergy Econnect Thank You Peter McGarley +44 (0)