1. www.senergyworld.com The Super Smart Windy Grid – The Offshore Option Presentation by Peter McGarley RenewableUK 2010 Glasgow SECC 3 rd November

2. 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

3. 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/SI2.528573) May 2009 to October 2011

4. 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

5. 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

6. 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

7. EU OffshoreGrid Reference Planned offshore wind and marine Country OffshoreGrid offshore scenario 20202030 Belgium1 9943 794 Denmark2 3293 799 Estonia01 600 Finland5903 190 France2 5104 914 Germany10 24926 553 Ireland1 0553 780 Latvia0900 Lithuania01 000 Netherlands4 62212 122 Norway9579 667 Poland5005 300 Russia0500 Sweden2 98310 522 UK15 30338 146 Total Northern EU42 135115 620 Total OffshoreGrid43 093125 787

8. EU OffshoreGrid Reference ENTSO-E - TYNDP

9. 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

10. Key Design Assumptions OffshoreGrid technology used to be evolutionary rather than revolutionary Pre 2010150kV HVAC 3 core subsea cable +/- 150kV 400MW HVDC Voltage Source Converters 2010 2020220kV HVAC 3 core subsea cable +/-320kV 1000MW HVDC Voltage Source Converters 320kV XLPE subsea HVDC cable 2020 2030380kV HVAC 3 core subsea cable +/-500kV 2000MW HVDC Voltage Source Converters 500kV XLPE subsea HVDC cable HVDC Circuit Breakers

11. Radial Scenario

12. Statistics: Total Connected Capacity = 129GW Total Cost = 83.201bn 643k/MW Total length of cable = 31,500km 294 HVDC VSC converter stations

13. 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

14. 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)

15. 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

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

17. 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

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

19. Senergy Econnect Thank You Peter McGarley econnect@senergyworld.com +44 (0)191 238 7300