Connecting and Managing Offshore Wind Danish Embassy - 4 th December 2012

Transcription

1 Connecting and Managing Offshore Wind Danish Embassy - 4 th December 2012 Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. John Twomey, Offshore Customer Connections Manager

2 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 2

3 National Grid UK and US Electricity and Gas Transmission & Distribution 3

4 Contracted generation Contracted new generation by 2025 Contracted generation (GW) 90 GW as at 1 Aug Connection requests Timing Subsequent amendments Awaiting consents / scoping Financial commitment 20 Conversion rate historic vs. future Connection charges and security 10 0 Type Status Consented Under construction Transmission investment timing Gas Nuclear Interconnector Wind Other (including CCS) 4 Data source: National Grid TNQCU Aug 2012

5 Current status of generation projects Generation consented or under Contracted generation (GW) construction 17 GW 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 Type Status Consented Under construction Gas Interconnector Wind Other (including CCS) 5

6 Contracted Generation 6

7 Areas of local difficulty 7

8 m (nominal) m (nominal) The transmission challenge New sources of energy Different demand profiles Greater supply and demand variability Greater geographical spread of supply Environmental targets Asset replacement 3,000 NGET business plan expenditure: 3,000 NGGT business plan expenditure: 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1, / / / / / / / / / / / / / / / /21 Opex System Operator Capex Non-Load Related Capex Load Related Capex Load Related Capex (incremental) CAGR in RAV gas and elec transmission ~10% including assumed ~3% RPI over the RIIO price control Total gas and electricity transmission 30bn capital and operating costs in RIIO business plans

9 Electricity transmission: delivering the network Onshore existing network future potential investment to connect Scottish renewables future potential load related investment to 2017 potential wind farm sites Offshore potential nuclear sites RIIO = Incentives + Innovation + Outputs Point-to-Point competitive tender 9

10 The Offshore Commercial regime 10

11 What is an Integrated offshore Network? Onshore TO Sub station OFTO Sub station 1GW HVDC Platform 500MW AC platform 500MW AC platform Onshore TO Sub station OFTO Sub station 1GW HVDC Platform 500MW AC platform 500MW AC platform 11

12 Round 3 A different approach required Radial (today) Coordinated (the future) 12 12

13 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 radial vs integrated (Accelerated growth 2030) ~54GW potential offshore wind ~ 34 25bn potential investment ~ offshore platforms 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 ~6,600 5,600km HVDC cable ~90 45 cable landing sites 13

14 Today 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 Commercial Regime Mechanism for delivery, charging and security Anticipatory investment Process and criteria for taking this forward Planning a coordinated Network (NETSO) Technology and Deliverability Availability and interoperability Planning Regime Consenting of anticipatory assets Regulatory Boundaries clarity on assets 14

15 How can we keep options open? Local and nonactive elements 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 Pre-construction Today Short term Anticipatory Funding Request 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 15

16 The next steps 90GW of new connections contracted over the next 13 years RIIO Submission of circa 23bn across onshore TOs to 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. 16