1. 1044\BT\## 1 Sea Wind Europe Helen Snodin BWEA Offshore 2004

2. 1044\BT\## 2 Contents 1. Background 2. Scope 3. Findings 4. What does it mean?

3. 1044\BT\## 3 Background

4. 1044\BT\## 4 Greenpeace Question Could offshore wind energy become a core part of Europe’s energy supplies? Could this be achieved by the end of the next decade? As well as the global environmental benefits, would it bring other benefits to Europe? What would need to happen along the way? A focus on identifying, and overcoming, obstacles

5. 1044\BT\## 5 Premise Why is it not already obvious? Global environmental benefits accepted Sceptics not convinced it can make it in the real world ….so, work through challenges one by one Show by example and logic

6. 1044\BT\## 6 Approach Deliberately bold Start with a target – 30% - and work back Tease out challenges and actions Result – if this is what we want, it will not be possible unlesss….

7. 1044\BT\## 7 Scope

8. 1044\BT\## 8 Chapters What are the implications for… Growth rates Sea-bed take / scale of development Investment Technology Costs Grid Social issues

9. 1044\BT\## 9 Findings

10. 1044\BT\## 10 Growth Rates Wind energy to-date BTM predictions IEA predictions SeaWind Europe postulated offshore wind growth

11. 1044\BT\## 11 Growth Rates Growth in wind energy terms looks achiveable In offshore terms, it is very ambitious Installation volumes are very large at steeper parts of curve Major constraint is the number of projects coming through the permitting system

12. 1044\BT\## 12 Scale of development

13. 1044\BT\## 13 Where will the investment come from?

14. 1044\BT\## 14 Investment: current In today’s markets, commercial-sector investment a necessity With exception of Middelgrunden, investment to-date has been on balance sheet. Private equity structures emerging for some German projects. Traditional model for wind is project finance. Commercial banks will invest as financial risks defined. There is a gap where uncertainty remains, which will be repeated as projects move into deeper/ more exposed environments and as technology develops.

15. 1044\BT\## 15 Investment: future On average, would require €14-24 Billion per year capital investment (wind is capital intensive) SeaWind Europe would represent a significant proportion of all project finance deals, but is comparable to the scale of investment in energy sectors. New finance structures (for wind sector) for offshore wind? Other sectors have momentum. There needs to be a “belief” that there will always be a market for offshore wind. A clear role for institutional banks to bridge some of the investment gaps

16. 1044\BT\## 16 Technology Reinforced plastics Everyday use in manufactured goods, esp. similar to composition in aerospace and boat- building. SeaWind Europe would require growth in specialist wind industry suppliers. If C- reinforced blades grow, longer lead-times required. Steel Predominant in heavy engineering, high recycled component. World steel suppliers & manufacturers need new markets – ready-made facilities Steel and/or concrete

17. 1044\BT\## 17 Making use of existing skills and facilities Sif Shipyard, Holland Burmeister & Wain Shipyard, Denmark A2Sea, Nysted Isleburn, Scotland

18. 1044\BT\## 18 Investment: future On average, would require €14-24 Billion per year capital investment (wind is capital intensive) SeaWind Europe would represent a significant proportion of all project finance deals, but is comparable to the scale of investment in energy sectors. New finance structures (for wind sector) for offshore wind? Other sectors have momentum. There needs to be a “belief” that there will always be a market for offshore wind. A clear role for institutional banks to bridge some of the investment gaps