Optimising Projects Optimising Assets, Project … · Optimising Projects Optimising Assets,...
Transcript of Optimising Projects Optimising Assets, Project … · Optimising Projects Optimising Assets,...
Deeper Water Offshore - 7th March 2012
Confidentiality class: None (C1)
Optimising Projects
Optimising Assets, Project Planning & Contracting To
Reduce Costs Overall
Matthew Green – Vattenfall Wind Power UK
OFFSHORE WIND - WHERE ARE WE?
Should we think we are a new industry?
• 10 years+ of experience Offshore
• Approaching 4GW installed offshore across Europe (1)
• <1250 Turbines Offshore (2)
• Just passed 6GW of total wind capacity in UK (2)
NO! But we must not stop learning because:
• £/MW installed still rising >£4m and needs to reduce.
• Too many project construction delays
• Too many quality failures in the early life of assets.
OPTIMISATION!
(1) EWEA, (2) RenewablesUK
OPTIMISATION
What do we mean by Optimisation?
Reducing Overall Costs
Delivering to Project Schedules
Delivery Quality Assets
INDUSTRIALISATION
STANDARDISATION
EPC CONTRACTING - PARTNERSHIPS
The challenge for the industry
Mio€ / MW
Year
Know how transfer
Control and master the business Control and master the price
** based on published figures
Kentish Flats
Lillgrund
Alpha Ventus**
Global Tech**
Butendiek**
Increasing prices due to higher
complexity of windparks (water
depth & distance from shore)
LEC reduction by
CAPEX and OPEX Optimisation
Challenge
INDUSTRIALISATION
• Project broken down into well understood
repetitive tasks.
• R&D/Trials/Testing/Pre-commissioning are to
be completed prior to shipping – we must get
beyond prototypes!
• Training/Familiarisation do it all offline &
onshore - Offshore is not the place for
learning curves!
• Suppliers must prove their products/ services
in advance – the challenges are greater but
the opportunities are increasing..
INDUSTRIALISATION – Portfolio Planning
• Developers set up for Multiple project delivery.
• Shared Resources
• Better sharing of experience.
• Continuity
• Cross Project Supply Chain Management.
• Standardised Products - Single Product / Multiple Suppliers
• Economy of Scale
• Cross Project Logistics Management.
• Establish dedicated Logistics Bases
• Longer term Vessel Charters
OPTIMISATION – Installation Vessels
Know Your Vessels.
• Weather sensitivity for all operations
• Crew Competence & Experience
• Deck Capacity/Flexibility for all operations
• New Builds
• Consider all possible optimisations before
mobilisation.
• Cable vessels?
INDUSTRIALISATION - Ports
• What are the Key issues
- Distance to Site/Suppliers
- Facilities/Resources
- Flexibility of Storage
• Access is critical – consider types of
vessel, tide limitations and the effects
of adverse weather
Ports – Choose Carefully!
INDUSTRIALISATION – Weather
You can’t control weather!
• Understand the weather and its affects at every location and stage of the
project. Circa 5-10% Project CAPEX is attributable to weather delays!
• Further Offshore = increased weather and year round working.
• You can only base schedules on statistical weather but think of the
production line even it worst scenario:
- Minimise weather sensitivity / Maximise operability
- Investigate and develop less weather sensitive operations/vessels.
INDUSTRIALISATION - Supply
• As distance offshore and project sizes increase –
reliance on supplies increases dramatically.
• Any breakdown in the supply lines (Manufacture,
shipment, transhipment, pre-assembly, site supply,
offshore transfer, quality issues, serial defects,
interfacing, insufficient handling equipment,
certification of handling equipment…) any one of these
WILL cause offshore standby time, project delays = £€
• Standardisation can resolve some issues…
STANDARDISATION
Time to Establish Basic Standards
• Categorisation and minimum standards for the various aspects of offshore
wind farm construction – comparing apples…
- Installation Methods, Major Components, Subcomponents, SMSs/ERPs/HSE Standards
• Suppliers, developers, installation contractors, consenting bodies &
certification agencies with common references.
• Build on past experience rather than reinvent.
PROJECT 3
PROJECT 2
STANDARDISATION
PROTOTYPE
PROJECT 1
Lessons Learned /
Employer Rqmts
+ Product
Improvements
Revised Employer
Requirements
+Product
Improvements
Reduce:
RISK
COST
DELAYS
Testing /
Certification / Type
Approval
OPTIMISATION – EPC Contracting
EPC Contracting simplifies and optimises projects execution.
But there are traps:
• Contractor with true expertise for the full EPC scope will be more limited.
• Less commercial interfaces does not mean less technical interfaces!
• How is it possible to ensure performance is maintained to completion?
OPTIMISATION – EPC Contracting
Making EPC Work:
Contractor/Supplier Expertise:
• Use only the supply chain who meet all the requirements.
• Tailor Contract Strategy to Suit the supply chain.
• Work With Contractors to build a better supply chain.
OPTIMISATION – EPC Contracting
Making EPC Work:
Interfaces
• The developer will always have the
most to lose or gain – so never make
assumptions about interfaces.
• But a successful project benefits all
so…
Look for Contractor/Suppliers who are
looking at ways of expanding not limiting
their involvement in interfaces.
OPTIMISATION – Partnerships
Mutually Beneficial Agreements
Adversaries
Partnership
Unproven Targets + Penalties
Realistic Targets + Incentivisation
Performance Optimisation
Long Term Objectives
Closed Approach
Open Approach / Shared Knowledge
One Off Thinking
Sustainability, Security
OPTIMISATION – Partnerships
Logical Conclusion…
Partnerships:
• Shared Development – Budget
Shared/Risk Shared?
• Full EPC – Developer/EPC
Relationship.
• Package EPC – Developer/Principle
Contract/EPC Packages.
SUMMARY
An Outlook of Challenges and Opportunities:
Ours is a maturing Industry ready for the next level.
The future requires massive expansion and greater challenges
offshore – But success in the future requires lower cost and lower
risk.
Capital & Operational Cost and LEC reduction is only possible by
optimisation from Industrialisation, Standardisation and Effective
Partnerships.
Experienced Supply Chain and Developers pulling in a common
direction.