Energy with wpd · Source: Unleasing Europe’s offshore wind potential, A new ressource assesment,...

Energy with wpd

01.06.17

wpd group – facts

4,100 MW installed capacity

2,080 wind turbines erected

1,800 members of staff

Project pipeline of 7,500 MW wind onshore

Project pipeline of 4,600 MW wind offshore

Project pipeline of 300 MW photovoltaic

In 18 countries

wpd group – structure

Developer & Independent Renewable Power Producer (IRPP)

Commercial & technical management of wind farms

Maintenance and repair of wind turbines, O&M services

wpd AG Deutsche Windtechnik AG

wpd windmanager

GmbH & Co. KG

Broad coverage of the wind value chain

Structure & Business Model

• Site evaluation • Project planning • Permission process • EIA investigation • Technical planning

• Commercial & legal structuring

• Financing of project development

• Calculations/ financial modelling

• Project finance (syndication of debt facilities)

• Negotiations with contractors

• Project management (time schedule,

quality, costs)

• Sale of projects through tender processes

• Sale of projects to strategic or financial buyers

• IRPP (own capacity 1,372 MW)

• Commercial management (bookkeeping, insurance, banks, etc.)

• Technical management (O&M management, manufacturers, service providers)

• Technical Services

Greenfield development

Structuring & financing

Tendering & construction

Sale / IRPP Wind farm management

wpd AG

Wind onshore Germany

Wind offshore

Wind onshore

international

IRPP 1,372 MW

(own capacity)

Fund manager

wpd invest

Greece

pv farms installed 9.80 MWp

Croatia

wind farms installed 91.80 MW

wind projects planned 50 MW

Romania


Germany

wind farms installed 2,712.44 MW

wind projects planned 2,400 MW


Poland



Finland

wind farms installed 141,60 MW


Italy



Portugal


France



Belgium


Sweden



wpd projects wind onshore + photovoltaic Europe

Spain



Montenegro


wpd projects wind onshore + photovoltaic worldwide

Canada, Ontario



Chile


Taiwan

wind farms installed 377,00 MW



pv projects planned 50 MWp

Europe

USA, Oregon


pv projects planned 250 MWp

wpd: partner for institutional investors and major utilities

CEZ Group • Sale of portfolio of 8 German onshore wind farms (85.25 MW, 35 WTG)

INNERGEX Renewable Energy Inc. • Sale of portfolio of 8 French onshore wind farms (131 MW, 62 WTG)

HansaInvest / Signal Iduna • Sale of portfolio of 8 German onshore wind farms (102.1 MW, 38 WTG)

Talanx • Sale of portfolio of 3 German onshore wind farms (57.5 MW, 19 WTG)

Swisspower • Sale of portfolio of 4 German onshore wind farms (29.3 MW, 11 WTG)

MunichRE / MEAG • Sale of portfolio of 11 German onshore wind farms (72.7 MW, 40 WTG)

Stadtwerke München / HSE / Mainova

• Sale of 2 German onshore wind portfolios (50 + 163 MW)

Allianz Capital Partners • Sale of one German onshore wind farm (14 MW)

Publikumsfonds Closed end funds • Closed funds with 5,000 investors

EnBW • Sale of 4 fully consented German offshore projects (approx. 1,250 MW) • Co-operation agreement covering the further project development

Marguerite / Siemens / ITOCHU / CITIC / Industriens Pension / CDC / ewz (Total investment volume: 1.3 bn Euro)

• Equity financing of the Butendiek offshore wind farm (288 MW) • Construction and operational management by wpd • wpd invests part of the project‘s equity • Debt financing arranged by KfW IPEX, Unicredit and Bremer Landesbank incl.

commitments of EIB, KfW Förderbank, EKF and further six commercial banks

Gothaer Life Insurance John Laing Group Plc

• Acquisition of a 40% stake in the Nordergründe offshore project • Acquisition of a 30% stake in the Nordergründe offshore project

wpd offshore – facts

8 offshore wind projects fully consented

Procurement and construction management for 3 projects

10 projects (4,605 MW) under development

in 6 countries

200 project team members

200 project team members, combining the record of developing 21 offshore wind farms with the construction experience of 3 offshore wind projects

wpd offshore

Project execution

Logistics and O&M services

Asset / ownership

Project development

wpd offshore

• Development of a diversified European offshore-wind-farm-portfolio

• Extensive expertise in project and construction management as well as logistics and O&M services

• Ownership and operation at later stage together with investment partners

Strategy

Team

wpd offshore

project development wpd projects wind offshore

Germany Baltic 1 (48,3 MW)*

Butendiek (288 MW)

Nordergründe (111 MW)

Kaikas (581 MW)

Gennaker (824 MW)

Taiwan Guanyin (250 MW)

Taoyuan (150 MW)

Changhua (200 MW)

Yunlin (700 MW)

France

Courseulles (450 MW)

Fécamp (498 MW)

Dunkerque (500 MW)

Oléron (500 MW)

Sweden

Storgrundet (420 MW)

Finland Suurhiekka (480 MW)

Project stages (total output)

in operation (336.3 MW)

under construction (111 MW)

approved and in the procurement process (948 MW)

approved (1,481 MW)

participation in tender process (1,000 MW)

early approval stage (2,124 MW)

* Sold – wpd was further involved in the construction management

wpd wind offshore projects in Germany

Butendiek 288 MW

in operation

Nordergründe 111 MW

under construction

final commissioning: 2017

Kaikas 581 MW

approved

Gennaker 824 MW

early approval stage

• Comprehensive co-operation agreement with EnBW in line with sale of the project together with three further approved projects (Baltic 2, Hohe See, He Dreiht) in 2008.

• wpd was engaged as project manager for the realization of the project.

• wpd negotiated all work packages with suppliers (turbines, foundations, substation and cabling) including installation equipment as well as harbor infrastructure and was deeply involved in pre-construction monitoring and construction management.

• Installation of Baltic 1 started in April 2010 and was completed at the end of 2010.

• Construction was on time and within budget. The wind farm was inaugurated on May 2nd 2011.

reference: Baltic 1 project overview

Turbine: 21 x Siemens SWT 2.3-93

Foundation: Monopile, Design & Installation, Ballast Nedam, Manufacturing EEW

OSS: Electric Construction by ABB, Transformer by Etra, Steel construction by Weserwind

Cabling: nkt cables

Main work packages

Baltic 1 (48.3 MW) Baltic 2 (288 MW) Hohe See (400 MW) He Dreiht (595 MW)

• Total capacity of 288 MW

• Total investment volume Euro 1.3 bn

• Project debt finance by 12 financial institutions

• Equity investors: wpd, Marguerite Fund, Siemens Financial Services, ITOCHU, CITIC, Industriens Pension, CDC, ewz

• Located 32 km west of island of Sylt

• Low water depth (17 - 22 m)

• EPCI-contracts (incl. design, manufacturing, transport & installation)

• Proven technology (Siemens turbines with 10 year full service maintenance contract; monopile foundations)

• Start of construction: Q2 2014

• The project has been completed on schedule and within budget. In August 2015, Butendiek was brought into operation.

• wpd manages the project during procurement, construction and operational phase

reference: Butendiek project overview

Turbines: 80 x Siemens SWT 3.6-120

Foundation: Ballast Nedam Offshore

OSS: Cofely Fabricom GdF Suez

Cabling: Visser Smit Marine Contracting

on time and in budget

wpd wind offshore projects in Finland and Sweden

Storgrundet (Sweden) up to 420 MW

approved

Suurhiekka (Finland) 480 MW

approved

wpd offshore pipeline of 1,950 MW in France

wpd Offshore France Round 1 Consortium Oléron

500 MW

Project under qualification for Round 3

Dunkerque 500 MW

Project under qualification for Round 3 Courseulles

450 MW

After successful award in Round 1 in implemantation

Fécamp 498 MW

After successful award in Round 1 in implemantation

Exclusive supplier

Consortium shareholders

Offshore Wind French Projects - RTB

wpd Offshore France Round 1 Consortium

Exclusive supplier

Consortium shareholders

Courseulles

Project 4 500 MW


Project 3 500 MW


Project 5 500 MW


Fécamp

2015 2020 2019 2018 2017 2016

Project Development

Financing

Construction

Operation

Indicative Project Timeline

FEC COU

wpd share 30% 15%

Capacity 498 MW 450 MW

Distance to shore 13 km 10 km

Area 65 km² 50 km²

# of turbines 83 75

Foundation Gravity Based Monopile

Water Depth 30 to 39 m 21 to 32 m

NET AEP (P50) 1,829 GWh 1,520 GWh

Grid Connection

17 km (offshore)

34 km (onshore)

16 km (offshore)

24 km (onshore)

Permission

- Tender awarded

- Building permit received

- Tender awarded

- Building permit received

• off Yunlin coast • ca. 500 – 700 MW

• potential Site No. 3 • ca. 100 - 150 MW

Project development offshore wind farms Taiwan

• potential Site No. 2 • ca. 250 MW

• off Changhua coast • ca. 150 - 200 MW

OWF Yunlin

OWF Changhua North

OWF Guanyin

OWF Taoyuan-Hsinchu

Nearshore Wind Farm Nordergründe - Project Key Facts

111 MW Nearshore, German EEG based, wind farm preparing for COD

Nordergründe

Turbines / Capacity 18 x Senvion 6.2M126 / 111 MW

Site / Distance to shore Delta of Weser River, 15 km off shore (inside Germany’s 12nm zone)

Site Characteristics Shallow waters (<10m), good soil conditions, rather low waves, morphodynamics

Wind Resources Wind speeds: 9.3 m/s (DEWI and DWG), Yield forecast: 373.6 GWh (P50, net)

Remuneration Regime German EEG based Feed-In Tariff: 19.4 c€/kWh (8 years as of COD)

Operation Period Project permit provides for 25 years of operation

Grid Connection 155kV AC Direct Line (no other wind farms), already completed by TenneT (TSO)

Nordergründe 111 MW

under final construction

exp. COD 12/2017

Project Company

OWP Nordergründe GmbH & Co. KG

wpd offshore solutions GmbH

OWP Nordergründe Verwaltungs GmbH

Management during construction phase

Management during operational phase

SENVION [TURBINE EPC]

AMBAU [FOUNDATIONS EPC]

PROJECT CO [SUBSTATION]

NSW [CABLING EPCI]

Project Debt (non-recourse)

EQUITY DEBT

EIB

BILFINGER [INSTALLATION]

SENVION [WTG O&M]

Deutsche Windtechnik [BoP O&M]

Deutsche Windtechnik / GP (wpd) [Accounting / Insurance Management]

Contractual Partners

during Construction

Contractual Partners during Operation

* 30% interest is held through 3 separte HoldCo‘s (German limited liability companies „GmbH“), owned and financed by wpd group

30% 30%*

Project Financing and Contractual Structure - Overview

Project equity

40%

http://www.eib.org/index.htm

Nearshore Wind Farm Nordergründe - Project Contractors and Realization Status

Proven Technology, Experienced Suppliers, Wind Farm preparing for Start of Commissioning

Nordergründe - Contractors

Work Package Contractor Status of Completion (July 2017)

Turbines (WTG) SENVION All WTG’s have been installed.

Foundations (FOU) AMBAU All FOU’s have been installed.

Cabling (IAC) NSW Cable laying completed.

Offshore Substation (OSS)

ProjectCO* OSS preparing for sail-out in Q3/2017

(delay due to insolvency of BVT)

Installation (T&I) Bilfinger (MPI Enterprise) Installation works of MPI E. completed.

Grid Connection TenneT (TSO) Export cable laying completed.

*The offshore substation was initially contracted with BVT. Following insolvency of BVT, project company entered into direct agreements with respective suppliers.

http://www.senvion.com/en/

http://ambau.com/?L=1

Project Operation - Contractors

- NORDERGRÜNDE WIND FARM OPERATION* -

Full-scope turbine maintenance services (10 years, cancellation option after 5)

Including production guarantee of 95.5%

Commercial Management/ Executive Board

Technical & Commercial Management (TCM)

Technical Operation/ Maintenance [O&M]

Turbine

Balance of Plant [BoP]

Full-scope BoP maintenance services Wind farm monitoring/controlling

Accounting / Reporting Insurance management

Commercial Management SPV administration

Insurance Comprehensive insurance package

contracted with HDI Gerling, Axa, Axis and Basler insurance

*For commercial terms of project operation, please refer to financial model.

http://www.senvion.com/en/

http://w3.windmesse.de/nw-assekuranz

Nordergründe Project Execution

Offshore wind in Europe – Status 31/12-2016

Source: WindEurope

Installed Capacity

2016 1,558 MW

Total pr 31/12 2016 12,631 MW

Installed Turbines

2016 369 WTGs

Total pr 31/12 2016 3,589 WTGs

Load factors 33%-43% Turbine size

4.8MW (15% )

New Projects GW of concented wind farms

24.2

Project Finance

Offshore wind in Europe – ressource assesment Study made in 2017 by WindEurope & BVG Assiociates

Source: Unleasing Europe’s offshore wind potential, A new ressource assesment, June 2017, WindEurope & BVG Assiociates

Conclusions for 2030:

• Offshore wind is expected to deliver 7 – 11% of EU‘s

electricity demand

• Offshore wind can in theory generate 2,600 – 6,000

TWh/year at 65€/MWh = 80 - 180% of EU‘s electricity

demand

• 25% of EU‘s electricity demand can be met by

offshore energy generated at 54 €/MWh or less



Main assumptions for baseline and upside scenarios

Baseline Upside

Electricity market

• Better functioning int. power market • Reference price for despatchable

electricity is €75/MWh

Baseline + • Old fossil fuel plants fased out • Further industrialization and development of

offshore wind market

Developers & supply chain

• 2 – 3 large developers with efficient competition

• Some areas of supply chain may be under-competitive

• 3 – 4 large developers with large pipelines • All major areas of supply chain competitive

Wind farm techonology

• WTGs of 13MW with 212m rotor • Purpose built installation vessels • Service and operation vessel(SOV)

strategy in use • Floating does not compete • 30 years operation

• WTGs of 15MW with 228m rotor • OMS and installation shared across projects • SOV strategy in place • Floating cost reduced • 32 year operation

Grid • Each project has dedicated connection • Offshore hubs in DK and Belgium

• Each project has dedicated connection • Offshore hubs in DK, Belgium and North Sea

Installed capacity

64GW 86GW

Capacity factor & LCOE

• 46,7% • €59,9/MWh

• 47% • €55,9/MWh



Installed capacity in baseline scenario



Installed capacity in upside scenario


Is it possible?


Significant reductions in LCOE of offshore wind the last 10 years

Steep and non-linear cost reduction due to rapid changes in • Project Finance Costs • Turbine Technologies • Supply Chain Capability • Competitive Auctions

+ The learning effect of greater volumes



Offshore wind LCOE range and trajectory from 2015 to 2030: Nordergründe OWF

German Tender 2017

UK Tender 2017

UK Hinkley Point C nuclear plant



Offshore wind LCOE compared to LCOE of typical CCGT*

* CCGT = Combined Cycle Gas Turbine new build


Is it possible?


Yes it is possible! Requires that EU governments

• Commit to offshore targets for 2030 and beyond; • Provide a continuous, sufficient and visible pipeline of

projects; • Coordinate timeline of tenders; • Cooperate in spatial planning and site development; • Develop international grid infrastructure; and • Offer market support mechanisms in a format that drives

competion.

Thank you

33

Peter Stabell

wpd offshore Denmark T: +45 29 666 242 [email protected]

Energy with wpd · Source: Unleasing Europe’s offshore wind potential, A new ressource assesment,...

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