BWEA OFFSHORE 2003 Round 2 Procedures and Criteria WORK IN PROGRESS

REGISTRATION 29 companies/ JVs registered29 companies/ JVs registered About 70 “ sites ”About 70 “ sites ” Over 20 GW in projects – but much is overlapping/competingOver 20 GW in projects – but much is overlapping/competing About 25% is beyond Territorial SeaAbout 25% is beyond Territorial Sea Interest is mainly in DTI ’ s Strategic Areas, but about 20% of sites were elsewhereInterest is mainly in DTI ’ s Strategic Areas, but about 20% of sites were elsewhere Greatest focus (about half) is on Outer Wash areaGreatest focus (about half) is on Outer Wash area

Overall Aims “To award the largest and most sought-after sites, in a competitive framework, to the applicants most ready and best fitted to develop each site to its optimum capacity taking account of the Strategic Environmental Assessment and other relevant factors “To award the largest and most sought-after sites, in a competitive framework, to the applicants most ready and best fitted to develop each site to its optimum capacity taking account of the Strategic Environmental Assessment and other relevant factors To award other sites to applicants that meet acceptable minimum criteria and are fitted to develop a site, taking account of the Strategic Environmental Assessment and other relevant factors” To award other sites to applicants that meet acceptable minimum criteria and are fitted to develop a site, taking account of the Strategic Environmental Assessment and other relevant factors”

Procedure A panel will be appointed by the Crown Estate Board, in consultation with DTI, consisting of CE and DTI representatives. A panel will be appointed by the Crown Estate Board, in consultation with DTI, consisting of CE and DTI representatives. Each Panel Member will assess applications individually and award marks in accordance with a pre-agreed set of criteria, marks available and weighting factors Each Panel Member will assess applications individually and award marks in accordance with a pre-agreed set of criteria, marks available and weighting factors Panel will meet, if necessary after further information and interviews with applicants, and will reach agreement on recommendations to CE Board and to DTI Panel will meet, if necessary after further information and interviews with applicants, and will reach agreement on recommendations to CE Board and to DTI CE Board agreement and Award of sites CE Board agreement and Award of sites

1.The Applicant INFORMATION REQUIRED –Description of Applicant –Capability and experience –Financial strength –Performance in Round 1 or elsewhere in Europe –JV Arrangements (if any) –Project Management Team and Approach –Current Offshore Plans and Projects

1.The Applicant CRITERIA CRITERIA Experience/Performance Experience/Performance Financial Strength Financial Strength JV and Project Team JV and Project Team

2.The Development INFORMATION REQUIRED Scale of Development Scale of Development Total Output in MW Total Output in MW Total square kilometres Total square kilometres Phasing (if any) Phasing (if any) Degree of commitment to plan Degree of commitment to plan Site information /knowledge available Site information /knowledge available –Technical –Environmental –Geological –Sedimentary –Wind Resource –Grid Connection

2.The Development CRITERIA Megawatts by 2010 Megawatts by 2010 Megawatts by 2015 Megawatts by 2015 Thoroughness of preparatory work Thoroughness of preparatory work –Current –Proposed Other Factors Other Factors

3.The Business Plan INFORMATION REQUIRED The Financial Plan The Financial Plan The Company/JV The Company/JV Development Plan to Consent Stage Development Plan to Consent Stage Construction Plan Construction Plan Operational Plan (to include servicing considerations) Operational Plan (to include servicing considerations) Supply Chain Considerations Supply Chain Considerations –Installation Plant –Foundation/superstructure –Turbine components Community Consultation Community Consultation Stakeholder consultation – Navigation,,fishery etc. Stakeholder consultation – Navigation,,fishery etc. Environmental Approach Environmental Approach Long-term ownership plans Long-term ownership plans

3.The Business Plan CRITERIA Overall Coherence/credibility Overall Coherence/credibility Environmental and Community Environmental and Community Key stakeholder Issues – (Fishery, navigation etc.) Key stakeholder Issues – (Fishery, navigation etc.) Innovation Innovation

4.Decommissioning INFORMATION REQUIRED Foundation Design Foundation Design Decommissionability of foundation Decommissionability of foundation Plant Plant Decommissioning Plan (Outline) including, Decommissioning Plan (Outline) including, –Costings –Timescale –Financial proposals

4.Decommissioning CRITERIA Coherence of Technical Proposals Coherence of Technical Proposals Certainty of Financial Arrangements Certainty of Financial Arrangements

Notes and Considerations Each criterion will carry a fixed number of points Each criterion will carry a fixed number of points a weighting factor will be applied to each criterion, and possibly to each set of criteria a weighting factor will be applied to each criterion, and possibly to each set of criteria Where there is competition for sites, each site will be awarded to the applicant with most points overall Where there is competition for sites, each site will be awarded to the applicant with most points overall To be awarded a site an applicant must gain a minimum of 50% of points available under each heading To be awarded a site an applicant must gain a minimum of 50% of points available under each heading

FEE Arrangements Purpose: To discourage more speculative applications blocking or interfering with progress by committed developers on important sites To discourage more speculative applications blocking or interfering with progress by committed developers on important sites To cover administrative costs To cover administrative costs To provide a firm financial basis for cooperative support and furtherance of renewable power offshore To provide a firm financial basis for cooperative support and furtherance of renewable power offshore

FEE BASIS PROJECTFEE*MAXIMUM NUMBER OF SITES PROJECTFEE*MAXIMUM NUMBER OF SITES Less than 20 Km² £y2 Less than 20 Km² £y2 Less than 75 Km² £y+3 Less than 75 Km² £y+3 Less than 150 Km² £y++4 Less than 150 Km² £y++4 Less than 250 Km²£y+++ 5 Less than 250 Km²£y+++ 5 * Fees will be phased - an application charge, followed by a payment on award of site(s) and a further payment after, say, 6 months

SITE SPECIFICATION 1. Each “project” must be within one strategic area 2. Each site must be a rectangle defined by four points / co- ordinates 3. Boundaries of sites will be absolute – buffer zones must be incorporated within the total square kilometrage 4. Sites will be able to be moved until planning applications are approved but only to areas not already licensed to another operator 5. Sites can be contiguous or separated 6. Any unusual shapes will be decided at the final discretion of The Crown Estate in consultation with DTI

THE COUNTDOWN 8. Direct communications with each registered company/JV 7. Developers’ seminars to discuss and clarify process 6. Lease Group discussions to clarify terms 5. June - DTI decision on Round 2 announced 4. Competition launched immediately 3. 3 months for submissions 2. 1 month for decision process 1. Offers made at end September...and it’s up to you