UK Supply Chain: Supporting 2020 Renewable Energy Targets

1
UK Supply Chain Supporting 2020 Renewable
Energy Targets

• Bruce Valpy, BVG Associates
• Head of Business Development

2
Agenda

• UK Renewables
• Status Update - UK Wind
• Delivery Constraints
• What UK is doing to help - Ports
• Inward Investment
• Innovation Support
• Summary

3
1. UK Renewables

• Trade promotion and supply chain development
  service to
• support the growth of a world-scale UK renewable
  energy industry with increasing global market
  share, and capabilities sufficient to support the
  achievement of the UKs 2020 renewable energy
  targets

4
A One Stop Shop

• Inform, coach, support and champion UK businesses
• Focus on excellence
• Respond to requests from
• Wind industry
• UK market entrants
• UK enabling bodies
• Proactively develop supply innovation
  opportunities
• Host UK stands at global events

5
2. Status Update - UK Wind

• 3.3GW operating (600MW offshore 1 globally)
• 2GW under construction (800MW offshore)
• Over 7GW consented (over 4GW offshore)
• UK has best wind resource in Europe
• 2008 best year yet (900MW installed)
• 2020 2 in EU offshore 1 globally

6
Status Update Offshore
7
Progress Update
Round 1
Round 2
8
3. Delivery Constraints



2006 2007
2008 2009
9
(No Transcript)
10
Projected European Offshore Market
11
2009 Key Delivery Issues

• At an industry level
• Economics
• Grid infrastructure

• At a project level
• Statutory consultation
• Turbine supply
• Subsea export cables
• Turbine, foundation cable installation
• Construction ports?

12
Delivery Constraints Wind Turbines
13
4. What UK is doing to help - Ports
Now Industry view Positively surprised about UK
ports visited Ports view Keen to continue
engagement Government view Keen to help and
know what to do
Start (Q2-08) Industry view UK ports dont have
the space and facilities and dont want to make
the investment needed Ports view Cant
understand why industry needs so much space and
wont invest without orders Government view
Unsure about how to help
14
What we did
1-to-1 visits UK prospectus Ports
workshops follow-up action s
15

• Conclusions
• There is enough space at UK ports for R3
  projects, both for construction and manufacturing
• Space not sitting idle now
• Both central Government and regional enablers
  play an important role in making things happen
• UK Renewables
• One Stop Shop - here to help

16
5. Inward Investment

• Significant support available
• Case by case basis
• Government regional support
• UK Renewables One Stop Shop
• eg. Vestas Global Research Centre Rotor
  Systems

17
6. Innovation Support

• Significant support available
• Energy Technologies Institute (50m)
• Carbon Trust (35m)
• Crown Estate
• Technology Strategy Board EPSRC
• Regional Enablers
• Government
• UK Renewables One Stop Shop

18
7. In summary

• The UK offshore wind market will be the largest
  in the world for the foreseeable future
• UK is focussing on delivery of GW, offshore and
  onshore
• UK Renewables is at the heart of making it happen
  please come and talk.
• www.UKrenewables.com
  Bruce.Valpy_at_UKrenewables.com