Post on 21-Jun-2015
En
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En
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Weero KosterWeero Koster
29 June 201129 June 2011
Nor
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Ros
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Nor
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Ros
e E
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y A
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Ene
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Am
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Solar projects: Puglia, Devnia, Project
Solar projects: Puglia, Devnia, Project
Volta Volta Wind energy projects: Noordoostpolder,
Wind energy projects: Noordoostpolder,
Amalia, NoordzeeWind, Tromp Binnen
Amalia, NoordzeeWind, Tromp Binnen
Energy projects: Elsta, Eemshaven,
Energy projects: Elsta, Eemshaven,
BritNed Interconnector, Gate LNG, Sloe,
BritNed Interconnector, Gate LNG, Sloe,
BergermeerBergermeer M&A: Essent, Dong, Kema, Korean
M&A: Essent, Dong, Kema, Korean
wind farm development
wind farm development
Trading: CDM/JI credits and funds,
Trading: CDM/JI credits and funds,
commodity trading
commodity trading Regulatory: advise on re-powering,
Regulatory: advise on re-powering,
CCS, nuclear, re-powering, unbundling
CCS, nuclear, re-powering, unbundling
Dispute resolution
Dispute resolution
NR
Wind
NR
Wind
experience experience
Recent developments/ Recent developments/ IssueIssue
Utility unbundling/ independent grid managementUtility unbundling/ independent grid management
Utility sales (at high prices)Utility sales (at high prices)
““Het Lokale energiebedrijf”Het Lokale energiebedrijf”
Renewable targets & incentivesRenewable targets & incentives
Priority access for renewablesPriority access for renewables
Grid congestion area’sGrid congestion area’s
Smart metering/ gridsSmart metering/ grids
General Project General Project StructureStructure
CorporateCorporate
Corporate entity Establishment General features
V.o.f.Partnership
• no formal requirements• partnership agreement is advisable
• all partners can in principle represent the partnership• joint and several liability• separate capital
CVPartnership
• no formal requirements• Partnership agreement is advisable
• special form of V.o.f.• joint and several liability• but limited partners: only limited liability
BVPrivate limited company
• Notarial deed • Declaration of no objections (to be abolished)• Minimum capital requirements: EUR 18.000• Registration trade register
• separate legal entity and own capital• tradable shares• board members can in principle represent the company individually• limited liability• possibility or obligation to set up Supervisory board
NVPublic limited company
• Notarial deed • Declaration of no objections (to be abolished)• Minimum capital requirements: EUR 45.000• Registration trade register
• separate legal entity and own capital• tradable shares• board members can in principle represent the company individually• limited liability• possibility or obligation to set up Supervisory board
Location – land rightsLocation – land rightsTitle to land Title to
panels or turbines
Agreements Issues
Ownership SPV • Land purchase agreement• Notarial deed
Strongest title to land and installations.
Superficies(Opstal)
SPV • Agreement of superficies• Notarial deed • Agreements other users
Ownership of the land is not transferred. SPV is only granted title to the constructions build on the land
Land lease(Erfpacht)
Land owner • Agreement of Land Lease• Notarial deed• Agreements other users
Title to both the land and the turbines shall belong to the owner of the land. SPV is only granted an exclusive right to use the property
Servitude(erfdienstbaarheid)
• Agreement servitude• Notarial deed• Agreements other users
Servitudes can be vested to the benefit of another plot of land. For example right of access (overpad).
CongestiemanagementCongestiemanagement
Congestion on national grid
Congestion on national grid
New projects planned but it
New projects planned but it
shall take a few years to
shall take a few years to
increase capacity
increase capacity
adequatelyadequately
Market mechanism for
Market mechanism for
distribution of scarce grid
distribution of scarce grid
capacitycapacity
Current scheme:
Current scheme:
Producer in congested area
Producer in congested area
must produce less energy
must produce less energy
and pays to grid operator a
and pays to grid operator a
fee for unused fuel.
fee for unused fuel.
To comply with delivery
To comply with delivery
obligations, producers in non-
obligations, producers in non-
congested areas shall
congested areas shall
increase productions. Grid
increase productions. Grid
operator shall compensate
operator shall compensate
such operators for additional
such operators for additional
costscosts
Cost of congestion
Cost of congestion
management currently for
management currently for
grid operator.
grid operator.
Pro
pose
d re
gula
tions
Pro
pose
d re
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on
con
gest
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on c
onge
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anag
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agem
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Two main concerns
Two main concerns: : who should pay for costs congestion
who should pay for costs congestion
management?
management? Renewable energy should have priority
Renewable energy should have priority
access to grid in congested area
access to grid in congested area
New legislation adopted by parliament.
New legislation adopted by parliament.
Not yet entered into force.
Not yet entered into force.
Problem: competition law concerns on
Problem: competition law concerns on
distribution of costs.
distribution of costs. European Commission requested to
European Commission requested to
adviseadvise Verhagen: no longer wait with priority
Verhagen: no longer wait with priority
access for renewable energy
access for renewable energy
Currently: discussions on early
Currently: discussions on early
implementation of priority access
implementation of priority access
regulations. New regulations applicable in
regulations. New regulations applicable in
October 2011?
October 2011?
Proposed regulations on Proposed regulations on congestion management:congestion management:
Ranking production installations:• non-renewable• heat cogeneration facilities• renewables with electric storage capacity• renewable waste incineration installations• renewable energy installations
Grid connection and Grid connection and transport agreementtransport agreement
Installations, private and public gridsInstallations, private and public grids
Reactive power requirements & curtailmentReactive power requirements & curtailment
Data processing servicesData processing services
National or regional TSONational or regional TSO
Two separate agreementsTwo separate agreements
NO guaranteesNO guarantees
Grid connection and Grid connection and transport agreementtransport agreement
Inflexible contracting by ‘non-discrimination’ruleInflexible contracting by ‘non-discrimination’rule
Intransparent planning processIntransparent planning process
Investment approval through NmaInvestment approval through Nma
Congestion area’sCongestion area’s
Priority Renewables Priority Renewables
Unbundling rules limits possibilities regional TSO’sUnbundling rules limits possibilities regional TSO’s
Per
mitt
ing
Per
mitt
ing
proc
edur
espr
oced
ures
Main Main permits
permits:: Environmental licensing and general
Environmental licensing and general
provisions act (Wabo)
provisions act (Wabo) Builing permit
Builing permit Environmental permit
Environmental permit EIAEIA Nature protection act
Nature protection act Flaura and Fauna act
Flaura and Fauna act Water Act (drainage water)
Water Act (drainage water)
Perm
itting P
ermitting
procedureprocedure
Governmental coordination of permits:Governmental coordination of permits:
Ministry of EL&I responsible for the Ministry of EL&I responsible for the coordination of important permit coordination of important permit procedures. procedures.
Applicable to wind projects >100 MWApplicable to wind projects >100 MW
Applicable to solar projects > 50MWApplicable to solar projects > 50MW
No objections phaseNo objections phase
Direct appeal to the Council of StateDirect appeal to the Council of State
Applicability Crisis and Applicability Crisis and Recovery actRecovery act
Applicability:
Applicability: Projects that are specifically appointed
Projects that are specifically appointed
by the government
by the government Wind energy projects > 100 MW
Wind energy projects > 100 MW
Solar energy project > 50 MW
Solar energy project > 50 MW
For projects serving
For projects serving ‘‘national interests
national interests’’
the State or the Province can decide on
the State or the Province can decide on
spatial planning. The Crisis and
spatial planning. The Crisis and
Recovery act is also applicable to those
Recovery act is also applicable to those
projects for which this competence is
projects for which this competence is
used. (Povinciaal / Rijksinpassingsplan)
used. (Povinciaal / Rijksinpassingsplan)
Benefits Crisis and Benefits Crisis and Recovery actRecovery act
Benefits Crisis and Recovery Act: Benefits Crisis and Recovery Act:
Decision Council of State within 6 monthsDecision Council of State within 6 months
Beneficial permitting proceduresBeneficial permitting procedures
No No pro forma pro forma appealsappeals
Local governments no longer allowed to appealLocal governments no longer allowed to appeal
Principle of relativity: decisions are not annulled when appellant does not show Principle of relativity: decisions are not annulled when appellant does not show personal harm.personal harm.
Parts of the Crisis and Recovery act are not applicable:Parts of the Crisis and Recovery act are not applicable:
Regulations on simplified EIA procedureRegulations on simplified EIA procedure
SubsidiesSubsidies
SDE+ 2011:SDE+ 2011:
No feed-in tariff but a subsidized No feed-in tariff but a subsidized ‘‘sliding premiumsliding premium’’
Total SDE+ subsidies (all categories) in 2011: EUR 1,5 billionTotal SDE+ subsidies (all categories) in 2011: EUR 1,5 billion
New government: focus on cost effective technologiesNew government: focus on cost effective technologies
Phased application for subsidiesPhased application for subsidiesTechnology Application Basis electricity
price (EUR/kWh)
Strike price(EUR/kWh)
Onshore wind As of 31-08-2011 0,046 0.113 – 0.120
Solar > 15 kWp As of 1-7-2011 0.044 0.090 – 0.150
Subsidies: SDE how does Subsidies: SDE how does it work?it work?
Offt
ake
– P
PA
/
Offt
ake
– P
PA
/ M
erch
ant p
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Mer
chan
t pro
ject
s/
AP
XA
PX
Contracting issues PPA:
Contracting issues PPA: Counterparty availability and
Counterparty availability and
creditworthiness
creditworthiness Conditions precedent & milestones
Conditions precedent & milestones
Price of ‘Price of ‘graygray’’ and and ‘‘green
green’’ Green Green
certificatescertificates Take-if-offered nature/ variability &
Take-if-offered nature/ variability &
curtailments: take-or-pay ?
curtailments: take-or-pay ?
Duration (15 to 20 yrs from COD;
Duration (15 to 20 yrs from COD;
extension options)
extension options) Commissioning process linkage to EPC;
Commissioning process linkage to EPC;
power during construction
power during construction
Metering ‘Metering ‘graygray’’ and and ‘‘green
green’’ power power
Change in law/regulation
Change in law/regulation
Offt
ake
- P
PA
Offt
ake
- P
PA
Set off (Set off (salderensalderen))
Tool for small producers of renewable energy (connection 3x80 A) Tool for small producers of renewable energy (connection 3x80 A)
New arrangements adopted by Parliament; not yet into forceNew arrangements adopted by Parliament; not yet into force
Right to set off 5000kWh produced renewable electricity against electricity taken Right to set off 5000kWh produced renewable electricity against electricity taken from the grid.from the grid.
Benefit: energy tax only due over final difference Benefit: energy tax only due over final difference
Above 5000kWh, right to deliver renewable energy to the grid against Above 5000kWh, right to deliver renewable energy to the grid against ‘‘reasonablereasonable’’ tariffs, to be paid by suppliers. tariffs, to be paid by suppliers.
Tariffs regulated by NMATariffs regulated by NMA
Large scale consumers/producers not covered. Special arrangements in PPA Large scale consumers/producers not covered. Special arrangements in PPA required.required.
Turb
ine
cont
ract
s/
Turb
ine
cont
ract
s/
Con
stru
ctio
n -
EP
C
Con
stru
ctio
n -
EP
C
Contracting variables:
Contracting variables: TSA’s/ construction contracts/EPC vs
TSA’s/ construction contracts/EPC vs
Multi-Contracting
Multi-Contracting The Fidic books: red, yellow and silver
The Fidic books: red, yellow and silver
Interface agreements contractors
Interface agreements contractors
Soil riskSoil risk Weather risk
Weather risk Transport risk: marine & roads
Transport risk: marine & roads
Turb
ine
cont
ract
s/
Turb
ine
cont
ract
s/
Con
stru
ctio
n -
EP
C
Con
stru
ctio
n -
EP
C
Contracting variables/ guarantees:
Contracting variables/ guarantees:
Compensation vs variable LD / Bonus
Compensation vs variable LD / Bonus
structure (Amalia/ C-Power):
structure (Amalia/ C-Power): ‘‘Smart Smart
warrantieswarranties’’ to to ‘‘Construction Guaranteed
Construction Guaranteed
EarningsEarnings’’ Defects warranties and notification
Defects warranties and notification
periodsperiods Output guarantee
Output guarantee Availability guarantee: time based
Availability guarantee: time based
Power curve guarantee: degradation ?
Power curve guarantee: degradation ?
Maximum noise level guarantee (wind)
Maximum noise level guarantee (wind)
Maintenance –
Maintenance –
O&
MO
&M
Contracting variables
Contracting variables
O&MO&M
Link with EPCLink with EPC
Wind riskWind risk
Availability Availability
guaranteeguarantee
‘‘scheduled scheduled
maintenancemaintenance’’ vs vs
‘‘unscheduled
unscheduled
maintenancemaintenance’’??
Spare part Spare part
availabilityavailability
Response time
Response time
CranesCranes
Remuneration:
Remuneration:
output related?
output related?
Ene
rgy
inve
stm
ent
Ene
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inve
stm
ent
dedu
ctio
n sc
hem
e
dedu
ctio
n sc
hem
e
Energy investment deduction scheme (
Energy investment deduction scheme (EIAEIA):):
Tax benefit for realisation renewable
Tax benefit for realisation renewable
energy projects
energy projects Projects must comply with detailed
Projects must comply with detailed
energy reduction norms
energy reduction norms Benefit: 41,5% of investment costs
Benefit: 41,5% of investment costs
deducted from fiscal profit
deducted from fiscal profit
Total budget 2011 is EUR 151 million,
Total budget 2011 is EUR 151 million,
after which Ministry of finance can
after which Ministry of finance can
decide to continue or cancel the annual
decide to continue or cancel the annual
programmeprogramme
Onshore wind in the Onshore wind in the NetherlandsNetherlands
Onshore wind
Onshore wind
target: 6.000 MW in
target: 6.000 MW in
20202020
Major realised
Major realised
onshore wind
onshore wind
projects projects
Westereems
Westereems
Groningen Groningen
(156 MW)(156 MW)
Wieringermeer (100
Wieringermeer (100
MW)MW)
Major planned
Major planned
onshore wind
onshore wind
projectsprojects
- Noordoostpolder
Noordoostpolder
(450 MW)(450 MW)
- Zuidlob Flevoland
Zuidlob Flevoland
(120 MW)(120 MW)
Project ZuidlobProject Zuidlob
InitiatorZuidlob Wind B.V.
(Nuon Duurzame Energie and Windmolenvereniging De Zuidlob)
Planned capacity
Approximately 122 MW
Objective
The basis philosophy behind the project is: "less mills, more energy‘. The project shall replace existing wind turbines. There will not only be more MW installed, but due to the line position the energy yield per MW installed capacity will also be larger.
Timing
We understand that project initiators have commenced the permitting and EIA procedures. We can, however, not assess at when all permits shall be obtained. Construction works are expected to commence in 2012 or 2013.
Financing
A subsidy of up to 229 million euros was granted to the project under the SDE subsidy scheme. The subsidy will be disbursed within 15 years.
We are currently unaware of any further financing arrangements.
Project Drentse MondenProject Drentse Monden
Objective
Initiators intend to develop a wind park of around 70 wind turbines.
Other initiators are also interested to realise a wind park on the same location. These other initiators are united in the Stuurgroep Windenergie Oost Drenthe.
The authorities would like all interested parties to participate in the ‘Stuurgroep’ to develop the project.
Timing
The project is still in an early stage. We understand that the permit applications are currently prepared by Pondera Consult. The EIA procedure appears not to have been initiated.
A number of entities have already expressed their concerns about the realisation of the wind project. Such entities could cause delay during the permitting procedures.
FinancingWe are currently unfamiliar with any financing arrangements that have been made for the realisation of this project.
InitiatorA joint venture of Stichting Duurzame Energieproductie Exloërmond, consisting of several farmers, and developer Raedthuys
Planned capacity
The exact capacity of the wind park shall depend upon the outcome of environmental studies. It is expected that approximately 70 turbines could be realised on this location.
Project WieringermeerProject Wieringermeer
Objective
The Municipality has requested that any new turbines are constructed in single-line arrangements. Accordingly, the random placing of wind turbines is no longer allowed. The replacement of the old turbines shall add to this general objective and create additional generating capacity.
Timing
Currently, the draft spatial plan (Structuurplan) is published for consultation.
It is expected that more details surrounding the financial arrangements are made public in September.
Further timing unknown.
Financing
From the project’s website, we understand that residents are also to participate in the financial arrangements. However, we are currently unfamiliar with any specific financing arrangements that have been made for the realisation of this project.
Initiator
Stichting Windkracht Wieringermeer
A joint venture of Nuon, 27 farmers, Energy Research Centre Netherlands and the Association of Wind Turbine Owners in North Holland
Planned capacity
200 to 400 MW
The existing wind turbines shall be replaced.
Project Windpark Neeltje Project Windpark Neeltje JansJans
We are currently unfamiliar with any financing arrangements that have been made for the realisation of this project.
Financing
The project is still in an early phase of development. The project initiators are in the process of initiating the EIA procedure, after which the permitting procedures can be commenced.
Draft decisions on special planning have been taken by the authorities.
Construction works are expected to begin in 2013.
Timing
The project opts to construct 9 wind turbines on the famous island of Neeltje Jans.
Objective
50 MW Planned capacity
The project is being developed by E-connection project for the benefit of Windpark OSK BV.Initiator
Project Windpark N33Project Windpark N33Initiator
The project is being developed by Blaaswind BV, which unites a number of farmers, and project developer KDE-energy.
Planned capacity
100-120 MW
Objective
The Province of Groningen has decided to concentrate wind energy project on three locations: Eemshaven, Delfzijl and Veendam.
The objective is to realise a large wind farm on both sides of the N33 provincial road nearby Veendam.
Timing
The Ministry of Economic Affairs considers the project to be of national interest, by virtue of which the ‘Rijkscoordinatieregeling’ can be applied to the permitting procedures.
The project is still in an early phase of development. The project initiators are in the process of initiating the EIA procedure, after which the permitting procedures can be commenced.
Financing
We are currently unfamiliar with any financing arrangements that have been made for the realisation of this project.
Offshore windOffshore wind
Realised offshore wind projects (318 MW):Realised offshore wind projects (318 MW):
- Egmond aan Zee (36 turbines; 108 MW)Egmond aan Zee (36 turbines; 108 MW)
- Prinses Amalia (60 turbines; 210 MW)Prinses Amalia (60 turbines; 210 MW)
Permitted offshore wind projects (2600 MW):Permitted offshore wind projects (2600 MW):
- Breeveertien
- West Rijn
- Tromp Binnen
- Den Helder I
- Brown Ridge Oost
- Beaufort
- GWS Offshore
- EP Offshore
- BARD Offshore NL1
- Scheveningen Buiten
- Q10
- Q4
Original offshore wind target: 6.000 MW in 2020. New government: no target.
Offshore windOffshore wind
Completed projects NL:Completed projects NL:
Windpark Egmond aan ZeeWindpark Egmond aan Zee
Windpark Princes AmaliaWindpark Princes Amalia
Second phase: Second phase:
In total 12 Wbr permits granted to new initiativesIn total 12 Wbr permits granted to new initiatives
Legal proceedings; currently 9 irrevocable Legal proceedings; currently 9 irrevocable permitspermits
Two BARD projects received a total subsidy of Two BARD projects received a total subsidy of EUR 4.3 billion EUR 4.3 billion
Still EUR 900 million left for other projects: Still EUR 900 million left for other projects: Nuon/Eneco? Nuon/Eneco?
Project Offshore BARD Project Offshore BARD
ObjectiveRealisation of a large scale offshore wind park.
Timing
Permit pursuant to the State Waterworks Act has been obtained.
Cooperation agreement with dredging and construction company Van Oord has been signed.
Construction is scheduled to commence at the beginning of 2012.
Financing
Based upon the SDE tender scheme, a total subsidy of EUR 4.3 billion was awarded to BARD.
Eneco and NUON have objected to the subsidy decision and the case is currently pending in appeal before the administrative courts.
Initiator BARD
Planned capacity
Both permitted offshore projects have a combined capacity of 600 MW. The individual wind turbines shall have a capacity of 5 MW.
Project Offshore Q10 - Project Offshore Q10 - EninoEnino
Initiator Eneco en Nuon
Planned capacity
100-140 MW
Objective
Realisation of a large-scale 100 MW offshore wind park.
If funding can be obtained, the initiators suggest to expand the project and add an innovative offshore wind park consisting of the newest turbines that are build on innovative foundations.
Timing
Permit pursuant to the State Waterworks Act has been obtained.
Decision on the application for subsidy for the first part of the project is expected in 2011. The European Commission’s decision on the request for subsidy from the NER300 scheme is expected at the end of 2011.
Financing
Initiators intend to finance the 100 MW wind project on the basis of the SDE 2010 subsidy scheme. Under the scheme, a total of EUR 900 million is still available for distribution.
The innovative 40 MW extension shall only be realised if the European Commission awards a subsidy under the NER300 scheme. Project initiators applied for a total subsidy of EUR 84 million.