Connecting and Managing Offshore Wind Danish Embassy - 4 .../media/storbritannien... · 4...
Transcript of Connecting and Managing Offshore Wind Danish Embassy - 4 .../media/storbritannien... · 4...
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Connecting and Managing Offshore Wind
Danish Embassy - 4th December 2012
John Twomey, Offshore Customer Connections Manager
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Today’s Agenda
Introduction to National Grid
Connections Update
Key Connection projects across the UK
Integrated offshore networks
National Grid’s approach to enabling connections
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National Grid
UK and US Electricity and Gas
Transmission & Distribution
4
Connection requests
Timing
Subsequent amendments
Financial commitment
Conversion rate historic vs. future
Connection charges and security
Transmission investment timing
Contracted generation
Contracted new generation by 2025
as at 1 Aug 2012
90 GW
0
10
20
30
40
50
60
70
80
90
100
Type Status
Gas Nuclear
Interconnector Wind
Other (including CCS)
Awaiting consents /
scoping
Consented
Under construction
Contracted generation (GW)
Data source: National Grid TNQCU – Aug 2012
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2.4 GW currently under construction
0.6 GW CCGT
1.8 GW wind
14.5 GW with consents
9.3 GW CCGT
5.2 GW wind
Current status of generation projects
Generation consented or under
construction
17 GW
0
2
4
6
8
10
12
14
16
18
Type Status
Gas Interconnector Wind Other (including CCS)
Consented
Contracted generation (GW)
Under construction
6
Contracted Generation
7
Areas of local difficulty
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-
500
1,000
1,500
2,000
2,500
3,000
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21£
m (
no
min
al)
Non-Load Related Capex Load Related Capex Load Related Capex (incremental)
-
500
1,000
1,500
2,000
2,500
3,000
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
£m
(n
om
inal
)
Opex System Operator Capex
Total gas and electricity transmission
capital and operating costs in RIIO business plans 2013-2021
£30bn CAGR in RAV gas and elec transmission
including assumed ~3% RPI over the RIIO price control
~10%
New sources of energy
The transmission challenge
Different demand profiles
Greater geographical spread of supply
Greater supply and demand variability
Environmental targets Asset replacement
NGET business plan expenditure: NGGT business plan expenditure:
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Electricity transmission:
delivering the network
Offshore
Point-to-Point competitive tender
future potential investment to
connect Scottish renewables
existing network
potential wind farm sites
future potential load related
investment to 2017
potential nuclear sites
Onshore
RIIO = Incentives + Innovation + Outputs
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The Offshore Commercial regime
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What is an Integrated offshore
Network?
1GW
HVDC
Platform
Onshore
TO
Sub
station
500MW
AC
platform OFTO
Sub
station 500MW
AC
platform
Onshore
TO
Sub
station
1GW
HVDC
Platform
500MW
AC
platform OFTO
Sub
station 500MW
AC
platform
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Round 3 – A different approach required
Radial (today) Coordinated (the future)
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Just to re-cap…
– any offshore network will be a challenge
Designing and building an integrated network is complex
Scenarios are uncertain
Securing consents will be difficult
Extensive supply chain relationships will be required
A need for extensive co-ordination of active ‘through routes’ to make sure it works
Substantial value left behind if complexity not dealt with properly ~54GW
potential offshore wind
~6,600 5,600km HVDC cable
~90 45 cable landing sites
~180 100 offshore platforms
~£34 25bn potential investment
radial vs integrated (Accelerated growth 2030)
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Where are we?
18 Month of industry engagement to determine benefits of integration
Offshore Transmission Coordination project
8 – 15% cost savings (£0.5bn – £3.5bn)
Consultation on Network Coordination
Response by 26 April 2012
Focus on driving changes to the framework
Planning a
coordinated
Network (NETSO)
Anticipatory
investment
• Process and criteria for taking
this forward
Regulatory
Boundaries
• clarity on assets
Commercial Regime
• Mechanism for delivery,
charging and security
Planning Regime
•Consenting of anticipatory
assets
Technology and
Deliverability
• Availability and interoperability
Today
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Pre-construction
Develop range of potential solutions
Identification of options, value engineering of
lead options, surveying, milestones, costs etc
Produce generic functional specifications
Protection and control strategy
Focus on technology developments
Establish need case for preferred option
Engage with supply chain
Local and non-
active elements
Today
Short term – Anticipatory Funding Request Interim approach until
framework delivered
Maintain potential delivery of coordination, without committing to who or how
Maintain options for range of potential solutions
Provide developers confidence that work can be delivered against time requirements
Provide supply chain confidence that investment in R&D is necessary
How can we keep options open?
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The next steps……
90GW of new connections contracted over the next 13 years
RIIO Submission of circa £23bn across onshore TOs to 2021
20 years of ‘sweating’ assets and innovation to maximise power transfers
Moving into a phase of large scale construction across a number of key projects across the UK.
A key Focus now on Planning and Consenting to enable 2020 generation commitments.