Main Report and Appendices A to D - RETD | Renewable Energy

192 Pages·2011·3.91 MB·English

by  Gill Davies

Accelerating the
Deployment of Offshore
Renewable Energy
Technologies
Final Report
February 2011
IEA-RETD

Accelerating the Deployment of
Offs2h68o37r0e RenRGeEwableRG EF nergy 6 D
Livelink/PIMS Live (online)/Enterprise Workspace/ Units/Power
Technologies
(PWR)/RenewableGeneration(RGE)/Renew
11 February 2011
Final Report

February 2011
IEA-RETD

Mott MacDonald, 1 Atlantic Quay, Broomielaw, Glasgow G2 8JB, United Kingdom
T [phone] F [phone], W www.mottmac.com

Accelerating the Deployment of Offshore Renewable
Energy Technologies

Issue and revision record
Revision Date Originator Checker Approver Description
A 08 December 2010 C Kolliatsas JB Porter S Harrison Draft Final Report
G Dudziak S Harrison
N Myers C Rhodes-James
C Bayer
J Schäfer
M Schäfer
G Doyle
N Grieve
D Holmes
A Lagakos
B Loney
S Salter
J Ingram
G Davies
B 20 January 2011 C Kolliatsas JB Porter S Harrison Final Report
G Dudziak S Harrison
N Myers C Rhodes-James
C Bayer
J Schäfer
M Schäfer
G Doyle
N Grieve
D Holmes
A Lagakos
B Loney
S Salter
J Ingram
G Davies
C 15 February 2011 Various G Dudziak C Koliatsas Final Report

This document is issued for the party which commissioned it We accept no responsibility for the consequences of this
and for specific purposes connected with the above-captioned document being relied upon by any other party, or being used
project only. It should not be relied upon by any other party or for any other purpose, or containing any error or omission which
used for any other purpose. is due to an error or omission in data supplied to us by other
parties
This document contains confidential information and proprietary
intellectual property. It should not be shown to other parties
without consent from us and from the party which
commissioned it.

Mott MacDonald, 1 Atlantic Quay, Broomielaw, Glasgow G2 8JB, United Kingdom
T [phone] F [phone], W www.mottmac.com
Accelerating the Deployment of Offshore Renewable
Energy Technologies

Acknowledgments: Michael Paunescu (Chair, Natural Resources Canda), Kjell Olav
Skjølsvik (Enova Norway), Matthew Kennedy (SEAI Ireland), Melanie Nadeau (Natural
Resources Canda), Mette Cramer Buch (Danish Energy Agency), Steffen Nielsen
(Permanent Delegation of Denmark to the OECD), Dorthe Vinther (Energinet Denmark),
Hoyt Battey (US Department of Energy), Kristian Petrick (RETD Operating Agent, All
Green Energies, Spain).

Mott MacDonald, 1 Atlantic Quay, Broomielaw, Glasgow G2 8JB, United Kingdom
T [phone] F [phone], W www.mottmac.com
Accelerating the Deployment of Offshore Renewable
Energy Technologies

Content
Chapter Title Page
Executive Summary i
1. Introduction 1
1.1 Industry Context_____________________________________________________________________ 1
1.2 Economics and Financing of Offshore Energy Projects ______________________________________ 2
1.3 Technical and non-technical Barriers and their Mitigation Measures ____________________________ 2
1.4 Findings, Conclusions, Recommendations and next Steps____________________________________ 2
2. Offshore Resource 3
2.1 Introduction ________________________________________________________________________ 3
2.2 Resource Assessment________________________________________________________________ 3
2.3 World Distribution of Offshore Resources_________________________________________________ 3
2.4 Summary of Offshore Energy Resources by Country________________________________________ 7
3. Offshore Renewable Energy Technologies 10
3.1 Offshore Wind Devices ______________________________________________________________ 10
3.2 Wave Energy Devices _______________________________________________________________ 15
3.3 Tidal Energy Devices________________________________________________________________ 25
3.4 Foundations, Moorings and Grid Connection _____________________________________________ 34
4. Deployment Targets, Policies and Progress 42
4.1 Deployment Targets and Policies ______________________________________________________ 42
4.2 Deployment to Date_________________________________________________________________ 45
5. Economics of Offshore Energy Projects 47
5.1 Level of Maturity of Offshore Technologies_______________________________________________ 47
5.2 Comparison of CAPEX, OPEX and Cost of Energy_________________________________________ 49
5.3 CAPEX Cost Structure and Drivers_____________________________________________________ 50
5.4 OPEX Cost Structure and Drivers______________________________________________________ 53
5.5 Cost of Energy_____________________________________________________________________ 53
5.6 Differences between Countries of Project Location_________________________________________ 54
5.7 Conclusions_______________________________________________________________________ 54
6. Project Risks and related Project Costs 55
6.1 Introduction _______________________________________________________________________ 55
6.2 Effects of Project Risk Assessment on Economics_________________________________________ 55
6.3 Key Technical Project Risks __________________________________________________________ 57
6.4 Impact of Key Variables on Total Cost Structure___________________________________________ 62
6.5 Conclusions_______________________________________________________________________ 66
7. Financing of Offshore Renewable Energy Projects 67
7.1 Financing Options __________________________________________________________________ 67
7.2 Balance Sheet Finance ______________________________________________________________ 67
7.3 Conclusions_______________________________________________________________________ 70
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Accelerating the Deployment of Offshore Renewable
Energy Technologies

8. Technical Barriers and Mitigation Measures 72
8.1 Barriers Common to all Offshore Renewable Technologies __________________________________ 72
8.2 Barriers Specific to Offshore Wind Technologies __________________________________________ 74
8.3 Barriers Common to all Offshore Renewable Technologies __________________________________ 74
8.4 Barriers Specific to Offshore Wind Technologies __________________________________________ 76
8.5 Barriers Specific to Wave and Tidal Technologies _________________________________________ 76
8.6 Mitigation and Removal of Technology Barriers ___________________________________________ 78
8.7 Electrical Connection, Transmission and Grid Integration Barriers_____________________________ 83
8.8 Mitigation and Removal of Grid Connection Barriers________________________________________ 89
8.9 Conclusions_______________________________________________________________________ 92
9. Non Technical Barriers and Mitigation Measures 94
9.1 Introduction _______________________________________________________________________ 94
9.2 Environmental Barriers_______________________________________________________________ 94
9.3 Mitigation and Removal of Environmental Barriers ________________________________________ 103
9.4 Health and Safety Barriers___________________________________________________________ 106
9.5 Mitigation and Removal of Health and Safety Barriers _____________________________________ 107
9.6 Regulatory and Permitting Barriers ____________________________________________________ 110
9.7 Mitigation and Removal of Regulatory and Permitting Barriers_______________________________ 118
9.8 Competing Use Barriers_____________________________________________________________ 123
9.9 Mitigation and Removal of Competing Use Barriers _______________________________________ 125
9.10 Skills Availability Barriers____________________________________________________________ 125
9.11 Mitigation and Removal of Skills Availability Barriers ______________________________________ 126
9.12 Supply Chain and Infrastructure Barriers________________________________________________ 128
9.13 Mitigation and Removal of Supply Chain and Infrastructure Barriers __________________________ 131
9.14 Access to Capital and Financial Support Mechanism Barriers _______________________________ 132
9.15 Mitigation and Removal of Financial Barriers ____________________________________________ 134
9.16 Conclusions______________________________________________________________________ 142
10. Guidelines for Project Development 144
10.1 Stage A – Opportunity Analysis_______________________________________________________ 144
10.2 Stage B – Project Materialisation______________________________________________________ 147
10.3 Stage C – Reliability and Sustainability_________________________________________________ 150
10.4 Conclusions______________________________________________________________________ 150
11. Findings, Recommendations and Model Policy Framework 151
11.1 Findings_________________________________________________________________________ 151
11.2 Project Development Recommendations________________________________________________ 153
11.3 Model Policy Framework ____________________________________________________________ 153
Appendices 159
Appendix A. References_______________________________________________________________________ 160
Appendix B. List of Acronyms___________________________________________________________________ 171
Appendix C. Assumptions underlying the sensitivity analysis __________________________________________ 173
Appendix D. Exchange Rates___________________________________________________________________ 174

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Energy Technologies

Table Title Page
Table 1.1: Countries covered by study____________________________________________________________ 1
Table 2.1: Offshore Energy Resources by Country __________________________________________________ 8
Table 3.1: Installed Offshore Turbine Models______________________________________________________ 11
Table 3.2: Point Absorber Designs______________________________________________________________ 16
Table 3.3: Summary of Available Designs of Attenuator Devices_______________________________________ 19
Table 3.4: Available Designs of Oscillating Water Column____________________________________________ 21
Table 3.5: Available Oscillating Wave Surge Designs _______________________________________________ 22
Table 3.6: Overtopping Designs________________________________________________________________ 24
Table 3.7: Horizontal Axis Tidal Designs _________________________________________________________ 27
Table 3.8: Vertical Axis Tidal Designs ___________________________________________________________ 30
Table 3.9: Oscillating Hydrofoil Designs__________________________________________________________ 31
Table 3.10: Venturi Add-on Devices______________________________________________________________ 32
Table 3.11: Comparison of Foundation Types ______________________________________________________ 34
Table 3.12: Comparison of Different Mooring Types _________________________________________________ 37
Table 3.13: Comparison of Mooring Lines and Anchor Types __________________________________________ 39
Table 4.1: Examples of Offshore Energy Project Support Measures by Country___________________________ 42
Table 4.2: EU Economic Recovery Plan__________________________________________________________ 44
Table 5.3: Operating Ocean Energy Projects by Country (2009)_______________________________________ 45
Table 5.1: Comparative Table of Achieved TRLs by various technologies _______________________________ 48
Table 5.2: Typically Observed or Estimated CAPEX, OPEX and Cost of Energy Values by Technology________ 50
Table 5.3: Typical Offshore Wind Project CAPEX Breakdown_________________________________________ 51
Table 6.1: Risks associated with Ground and Environmental Conditions and Permitting ____________________ 57
Table 6.2: Risks associated with Participant Capabilities_____________________________________________ 57
Table 6.3: Risks associated with Design _________________________________________________________ 58
Table 6.4: Risks associated with Performance_____________________________________________________ 58
Table 6.5: Risks associated with Manufacturing and Construction _____________________________________ 59
Table 6.6: Risks associated with project operation__________________________________________________ 61
Table 6.7: Drivers of project CAPEX_____________________________________________________________ 64
Table 7.1: Project Finance Offshore Wind Farms – Key Features (Guillet, 2009)__________________________ 69
Table 8.1: Government R&D Support Programmes available for Offshore Renewable Energy Technologies ____ 79
Table 8.2: Transmission Network Options ________________________________________________________ 89
Table 8.3: Summary of Potential Mitigation Measures for Barriers to Grid Connections_____________________ 90
Table 8.4: Summary of Potential Mitigation Measures for Power Market Challenges _______________________ 92
Table 9.1: Main health and safety issues and typical mitigation measures ______________________________ 107
Table 9.2: Advantages and disadvantages of seabed rights allocation methods__________________________ 119
Table 9.3: Summary of Potential Mitigation Measures for Permitting Barriers____________________________ 120
Table 9.4: Summary of Potential Mitigation Measures for EIA Barriers_________________________________ 122
Table 9.5: Main Supply Chain and Infrastructure Barriers ___________________________________________ 128
Table 9.6: Summary of Potential Mitigation Measures Barriers to Finance ______________________________ 134
Table 9.7: Expenditure support mechanisms_____________________________________________________ 135
Table 9.8: Income Support Measures___________________________________________________________ 136
Table 9.9: Table of CCGT cost build up_________________________________________________________ 138

268370/RGE/RGF/6/D 11 February 2011
Accelerating the Deployment of Offshore Renewable
Energy Technologies

Figure Title Page
Figure 2.1: Mean Wind Speed (in m/s) for 1976 – 1995 According to the NCEP/NCAR Reanalysis Data Set______ 4
Figure 2.2: World Waves Atlas, Mean Annual Wave Power ____________________________________________ 5
Figure 2.3: Tidal Resource Model ________________________________________________________________ 7
Figure 3.1: Schematic of Typical Wind Turbine Layout_______________________________________________ 12
Figure 3.2: Archimedes Wave Swing_____________________________________________________________ 15
Figure 3.3: Wavegen HYDRA __________________________________________________________________ 18
Figure 3.4: McCabe Wave Pump________________________________________________________________ 18
Figure 3.5: Pelamis Wave Energy Converter at Sea_________________________________________________ 18
Figure 3.6: Oscillating Water Column Schematic____________________________________________________ 20
Figure 3.7: Oyster____________________________________________________________________________ 22
Figure 3.8: Wave Dragon______________________________________________________________________ 24
Figure 3.9: Tidal stream turbine_________________________________________________________________ 26
Figure 3.10: Hydro Tidal________________________________________________________________________ 27
Figure 3.11: Open centre turbine_________________________________________________________________ 27
Figure 3.12: EnCurrent Vertical Axis Hydro Turbine __________________________________________________ 29
Figure 3.13: Stingray __________________________________________________________________________ 31
Figure 3.14: Potential Mooring Array Designs_______________________________________________________ 40
Figure 4.1: Reported Government Ocean Energy RD&D Budgets in IEA member countries, 1974-2009 ________ 44
Figure 5.1: Technology Readiness Levels_________________________________________________________ 48
Figure 5.2: Historical Evolution of Offshore Wind Farms CAPEX _______________________________________ 52
Figure 6.1: Key variables to Project Cost Structure__________________________________________________ 62
Figure 6.2: Offshore Wind Cost Variation _________________________________________________________ 65
Figure 6.3: Wave / Tidal Cost Variation___________________________________________________________ 66
Figure 8.1: Current structure and one possible future scenarios for north European offshore grid development___ 84
Figure 9.1: Offshore Wind Farm Developments in the German (North Sea) EEZ__________________________ 124
Figure 9.2: Complete Uses and Nature Conservation in the German (North Sea) EEZ _____________________ 125
Figure 9.3: UK Industry survey of roles particularly difficult to fill_______________________________________ 126
Figure 9.4: Supply Chain Pyramid – Wind Turbine _________________________________________________ 129
Figure 9.5: Offshore Wind Project Economic NPV in €/MWh based on existing income support schemes under a high
and low levelised cost projection – differentiated wholesale prices____________________________ 139
Figure 9.6: Wave Energy Project Economic NPV in €/MWh based on existing income support schemes under a high
and low levelised cost projection – differentiated wholesale prices____________________________ 140
Figure 9.7: Tidal Energy Project Economic NPV in €/MWh based on existing income support schemes under a high
and low levelised cost projection – differentiated wholesale prices____________________________ 141
Figure 10.1: Typical Offshore Renewable Energy (Offshore Wind) Project Lifecycle________________________ 144

268370/RGE/RGF/6/D 11 February 2011