New Offshore Wind Tenders in Denmark Offshore wind

New Offshore Wind Tenders in Denmark Offshore wind Development and job creation Claus Lewinsky

New Offshore Wind Tenders in Denmark Global offshore perspective I • By end 2014 Europe had 2, 488 GW new installed and grid connected turbines • Total is now 8 GW offshore in 74 wind farms throughout 11 European countries • Northern Europe’s OSW has the greatest offshore wind energy deployed with the UK as the European leader (4 GW as of 2014), Denmark 1. 3 GW, Germany 1 GW and Belgium 0. 7 GW • 12 pipeline projects will increase installed capacity by a further 3 GW, bringing the cumulative capacity in Europe to 11 GW. • EWEA: http: //www. ewea. org/fileadmin/files/library/publicati ons/statistics/EWEA-European-Offshore-Statistics 2014. pdf

New Offshore Wind Tenders in Denmark Global offshore perspective II • At the end of 2013 China had 429 megawatts of offshore wind power operating. In 2011 it announced its ambitious plan to build 5, 000 megawatts of offshore wind turbines with an expected $15 bn project. It is now accepted the project is behind the estimated 4 year plan. • Some floating plat forms exist in Japan • Floating platforms being considered in Europe for the Mediterranean and west of Ireland – still not a proven technology • http: //www. bloomberg. com/news/articles/2014 -0716/china-three-years-late-on-installing-offshore-windfarms

New Offshore Wind Tenders in Denmark Role of the Danish Energy Agency Responsible for the call for tenders Contracting authority Responsible authority for EIA offshore One-stop-shop for permits Planning of future wind farms

New Offshore Wind Tenders in Denmark Danish Energy Policies - short and longterm targets

The Danish Energy Model: New Offshore Wind Tenders in Denmark De-linking Economic Growth, GHG and Energy Consumption New Energy Agreement (March 2012) 3 reasons: • CHP/DH, • Renew. Energy • Energy Savings +38% Economic forecast -1% Impact on energy consumption and GHGemission -25%

New Offshore Wind Tenders in Denmark - 23 years of experience in offshore wind • 1991: First Danish offshore wind farm 5 MW • 2014: app. 1300 MW offshore

New Offshore Wind Tenders in Denmark Preparing for the future Offshore • 4200 MW identified. • 1000 MW are now decided at Horns Rev and Kriegers Flak • Central authorities and TSO involved • EIA required for each site done by Energinet. dk • Each wind farm require political decision

New Offshore Wind Tenders in Denmark New Offshore Wind Projects in Denmark Horns Rev 3: 400 MW Kriegers Flak: 600 MW Tender for 350 MW near shore wind farms 50 MW turbines for research and development Effect 2020: More than 50 percent of our electricity consumption from wind power

New Offshore Wind Tenders in Denmark Food for tought • Maryland is roughly the equivalent geographical and population size of Denmark. • Denmark started with ten turbines, 5 MW and now more than 1300 MW and 56, 000 people are employed in the wind industry. • E. g. Siemens’ blade factory started with 8 employees in 1998 and now employs more than 2, 000 people producing 40 blades of 73 meters a week. The factory demonstrates the importance of participating early in this growing sector. • Five percent of Denmark’s exports are in wind technologies. Danish renewable exports amounted to 9 bn/ year (2013)

New Offshore Wind Tenders in Denmark Export of the Danish Energy Model

New Offshore Wind Tenders in Denmark A few more facts • A 500 MW offshore wind farm generates 7, 000 to 9, 000 annual FTE’s over its lifetime. The peak employment is around 1, 000 to 1, 200 FTEs during construction. [These figures are from a BVG Associates analysis of a UK offshore wind farm reaching a final investment decision in 2014. ] • Investor analysis of a UK wind farm, found in a mature market such as the UK, approximately half (40% to 65%) of the direct jobs created and economic value added is local content (UK). • The concession owners responsibilities are: Project planning and design, Construction, Operation and maintenance, Financing, Electricity sales, but who shall deliver?

New Offshore Wind Tenders in Denmark A Conglomerate of companies I • Together and separately, the companies in DJURS Wind Power offer to solve tasks in all of the project’s phases: • Planning and establishing • Pre-fitting • Installation • Removal and reestablishing • Operation

New Offshore Wind Tenders in Denmark A Conglomerate of companies II • DJURS Wind Power encompass all competencies from shipping and vessels for offshore installation, diving and repair/replacement of key-components, iron/metal production, electro and turn-key business. 24/7 service.

New Offshore Wind Tenders in Denmark A Conglomerate of companies III • DWP has experience and has had great success with the collaboration. . . • DWP is as the exemplary example of how well it can be done, referring to the establishment of 111 3, 6 MW offshore turbines by Anholt (Den). • Siemens Wind Power mentions DWP as ‘best practice’ • Orders worth more than 60 million Euro have been made with DWP companies in relation with the offshore wind farm by Anholt (Den). 335 jobs created.

New Offshore Wind Tenders in Denmark A Conglomerate of companies IV • The history: Company meetings – 15 companies ready to join DJURS Wind Power • Intensive dialogue with DONG Energy about information; knowledge about procurement, the wind industry, the project scope, deadlines and contact to mail suppliers. • Workshops supported by main suppliers, delivering term for their procurement, deadlines, contact persons, and terms of quality og delivery. • Establishment of the organization – and 24/7 one point of contact. • Supported by DONG Energy’s clear commitment, transparent process and always strong and quick availability.

New Offshore Wind Tenders in Denmark A Conglomerate of companies V • DWP is as a strong partner at port of Rømø – supplying wdp, Siemens, Visser&Smit and other suppliers for the North Sea wind farms, located at the port of Rømø. • DWP and the member companies is a part of Wind Energy Hamburg 2014, first time for 6 companies. • The DWP-members are looking for new areas of cooperation, specific looking to oil & gas industry in Norway. • Delivering manpower and equipment to Envision Energy, starting their first European production in Grenaa

New Offshore Wind Tenders in Denmark Maryland case I • The projected economic benefit of the proposed offshore wind project off of Ocean City is more than $1. 9 B to the State over the 20 -year project. • Offshore wind encompasses many different industries and provides us with opportunity to get back to those industries Maryland does so well – shipbuilding, and manufacturing; and expand other Maryland industries- maritime, construction, transportation, logistics, manufacturing, services. • Baltimore has more than 1, 300 businesses working in and around the port that can support an offshore wind industry.

New Offshore Wind Tenders in Denmark Maryland case II • Maryland can benefit through job creation associated with the design, manufacturing, and installation of the 500 MW wind project. The Business Network for Maryland Offshore Wind has formed clusters for the major components associated with the project. The estimates by cluster are yielding 200 jobs over the next 4 years. • Exporting of Maryland knowledge, goods and services to the regional and global offshore wind markets might also create opportunities for job growth in the State. • By establishing this industry in Maryland you can hopefully continue to employ and create new opportunities for the State’s highly skilled and educated workforce.