Wind Energy Business of Korea

(Focused to Off-shore)

2010. 10. 15

Dr. Rimtaig Lee Korea Wind Energy Industry Association

Evolution of Human Life depending upon Energy Source

1.Wood

2.Wind sail

1. Electrification 2. Automobile 3. Airplane 4. Water Supply & Distribution 5. Electronics 6. Radio and Television 7. Agricultural Mechanization 8. Computers 9. Telephone 10. Air Conditioning & Refrigeration 11. Highways 12. Spacecraft 13. Internet 14. Imaging 15. Household Appliances 16. Health Technologies 17. Petro-chemical Technologies 18. Laser and Fiber Optics 19. Nuclear Technologies 20. High-performance Materials

Up to 1800s Based on Bio Energy

1900s ~2000s Based on Fossil Energy

2100s thereafter Based on Renewable Energy

?

Demand and Supply of Oil

The Growing Gap

0

10

20

30

40

50

60

1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040

GBarrels

Past

Discoveries

Future

Discoveries

Demand

Projected

Demand (IEA)

Projected

Supply

Global Energy Status and Forecast

Source: Global Energy Outlook 2009,GWEC Report 2009,COP 15

Wind Energy available at Earth

Energy Mix of EU Electricity Supply in 2050

300

1000

2300

0

500

1000

1500

2000

2500

1990 1995 2000 2005 2010 2015 2020 2025 2030

연도

용량

(GW )

Real Data 2005 Forecast

2008 Forecast 2009.11 Forecast

Up-trend

Accumulated wind power installed in the world

Actual and up-dated Forecast

Source: GWEC 2009

Super Grid for Off-shore WE(2020)

Ormonde

• Windfarms to be completed 2010

Bard Offshore 1

Aberdeen

15GW6GW

4GW

3GW

2.5GW

46GW

2GW

European Offshore Market Forecast – UK is No1

Germany

Sweden

Norway

Netherlands

Denmark

UK

BelgiumFrance2GW

Over 80GW of

offshore wind

development

planned in

Northern Europe

Scotland

7-5.

Component Supplier of China (China Wind Power Report 2007)

Off-shore WTG inatallation by Barge type equipment(1)

Off-shore WTG inatallation by Barge type equipment(2)

Off-shore WTG inatallation by Barge type equipment(3)

Off-shore WTG inatallation by Barge type equipment(4)

Off-shore WTG inatallation by Barge type equipment(5)

Sample of Off-shore Wind Farm

Sample of Off-shore Wind Farm in EU

Air Flow in Off-shore WE Farm

Construction Methodology

‘Onshore Assembly’

Barge for off-shore wind turbine installation

Foundation Installation

Arklow Banks Wind Farm - The Irish Sea

Photos: R.

Thresher

- GE 3.6 MW x 7 units - Installed in June 2004 - 1st offshore windfarm in Ireland

Substructure Load-out and Installation

Photo Credit: Talisman Energy Offshore Demonstration, 2007 5 MW 126m Repower Turbine 45 m water depth, North Sea Aberdeen, Scotland

자료: Wind Electric Generating Equipment R & D, Brian Smith of NREL,USA. 2009.3

Shallow Water

Transitional Depth

Deepwater Floating

0m-30m 430-GW

30m-60m 541-GW

60m-900m 1533-GW

Land-based

No exclusions assumed for resource estimates

Commercially Proven

Technology

Estimated US Resource

Demonstration Phase

Offshore Wind Turbine Foundations – U.S. Example

National Renewable Energy Laboratory Innovation for Our Energy Future

Offshore Wind Environment is Challenging

NREL Simulation of Floating Barge Turbine System

National Renewable Energy Laboratory Innovation for Our Energy Future

ADAMS mov.wmv

National Renewable Energy Laboratory Innovation for Our Energy Future

Image Credit: www.greenlaunches.com

• R&D project by StatoilHydro, and Siemens, expected to produce power in July 2010

• 12 km southeast of Karmøy in Norway

• SWT - 2.3 MW architecture

82 meter diameter

65 meter tower

• Spar buoy technology

100 meter draft

202 meter water depth

Reference: w1.siemens.com

Spar Buoy Floating Wind Turbine: Hywind

World’s first large-scale floating wind turbine Siemens SWT-2.3 MW Hywind

Power grid system for off-shore wind project(Case of Scottish)

DC Cable application (ABB )

Cable Installation under the sea and its equipment

NordE.ON 1 Project (Case of Germany)

Power Network in off-shore wind project (Case of ABB)

Off-shore wind project of German (Invested by Korean Business Firm and under promotion)

(북해동부)

(Amrum만 서부)

(영역) (대륙기초)

(12해리영역/연안)

(국제경계)

(승인)

(계획)

Case of USA: Cape Offshore Wind Project

1)Capacity:468MW(3.6MWx130units)

2) Location: Massachusetts State of USA

3) Progress:

- Start: 2001

- G-permit:2010.4 (Massachusetts local Gov.)

- Completion Est.:2013

4) PPA:20.7 cents/KWh for 15 years with annual

inflation adjustment of 3.5% over 15 years,

34.7cents/KWh at the end of the contract.

5) Price break down: Energy price:12.5, REC:6.7,

Hedge value(CRA):1.5, total:20.7cents/KWh

6) Tariff Increase: about 2% added up

(1.59 $/month/customer)

Off-shore wind projects in China Potentials:1,000GW off-shore:750GW on land:250GW Installed:25GW(2009)

Off-shore under developing :18GW 2012:100MW 2015:2.7GW

Reserved potential off-shore projects in EEZ of Japan EWEC2009 24 Jun 2009

Graduate School of Maritime Sciences, Kobe University, Japan

Fig. 6 Annual energy production per square kilometer (GWh/km2).

Blue lines show boundaries of Japan’s EEZ (including disputed areas).

• Japanese EEZ

(Incl.disputed area) :

4.47×106 km2

• Reserved potential

energy: 48,600 TWh/yr

(50 times of Japanese annual

production)

• Japanese annual

electricity production:

(2008): 971.87 TWh/yr

Wind Initiatives in Ontario

• Government policies and environmental priorities - driving for change

• Renewable Energy Supply (RES) Projects

• Renewable Energy Standard Offer Program (RESOP)

• Feed-in Tariff (FIT) and Green Energy and Green Economy Act (GEGEA) 2009

• Ontario’s Feed-in Tariff (FIT program)

• FIT Projects – Renewables including onshore & off shore wind

• Wind capacity expected to again double by end of 2011

• Korean Consortium (2500 MW renewable generation) 58

Offshore Wind potential in South Korea

*

*

• With a technical potential of 31.4 GW

South Korea is poised to begin a new era

involving the development of offshore wind

• The Korea Electric Power Research

Institute are currently looking at the

feasibility of building a 100MW offshore

wind farm in the West Sea. The wind farm

is planned for 2012 and could be extended

to 1,000MW at a later date

West Sea

Jeju-do

7.4

15.5

23

34.5

0

5

10

15

20

25

30

35

2010 2015 2020 2025 2030

연도

용량

(GW )

Reviced Forecast by MKE in 2008(Scenario1) Reviced Forecast by MOCIE in 2003

Dream1(Scenario2) Dream2(Scenario3)

Scenario1

Scenario2

Scenario3

Down-Track

Up-Dream

Installation Trend of wind power in Korea (Case Study)

61

2.7GW 9.7TWh

Renewable (Hydro)

13%

Fossil 87%

Fossil 58.3%

Nuclear 35.2%

Renewable (Hydro included) 6.5%

76GW 420TW

h

120GW 600TWh

Nuclear 45%

Wind 25%

Solar 20%

Other

renewable

10%

Energy Source Mix for Generation (Past-Current-Future)

1970 (-40)

2010

(Base) 2050 (+40)

62

Dreams of Korea Wind Energy Industry Association

1) Wind projects under consideration by private sector

developers Location Capacity (MW) Remarks

1.KNOC/HEC Chonnam Yusu 20MW Under design, to be completed by 2012,

Est.budget: 83 B won

2. Kwmho Industry Chonnam Yusu 100MW

3. KOSPO Busan off-shore 350MW(3.5MWx100기) Target: 2020.

390W/m2, 0~30m depth, 10Km away

4. KNHC/Doosan/NCE Jeju off-shore Hangkyung 30MW Gov.permit in 2006, Delayed due to lack of

viable ,review to start.

5. Dongkuk S&C/EWP/Yurus Chunnam Beegwkdo 200MW Target: 2013 / Est. budget:1.2T won

6. POSCO E&C Chonnam Off-shore West-South 600MW Target: 2015 / Est. budget:2.5 T won

7.POSCO E&C Chonbuk 100MW(5MWx20) Const. period: 2011 ~ 2015

Est. budget:0.5 T won

8. Hanwha Consortium Off-shore Incheon 100MW

(2.5MWx40기/3MWx33기)

333W/m2/7mdepth/20Km away.

Start:2012, Est.budget:500 B won

9. Hanshin Energy Jeju off-shore Gapa 50MW Target: 2012

10. Halla Consortium Jeju off-shore east-west 500MW Target: 2013

11. Hanshin Energy Samdal Ext. (onshore) 32 MW Target: 2011

12. Accioner Korea Kyongnam Yangyang(onshore) 500MW 60MW completed in 2009, Balance step by step

13.DMS/Enometal Ezrobot Off-shore Taean 100MW(3.6MWx27) Est. budget:400 B won

14. KMIPO Jeju Esidol(on shore) 20MW Under design

15. Korea Gov. Off-shore Saemangwm Dam 40MW 2MW track record build-up,

Open for the new model from

16. KARICO Consortium Chonnam Haenam 400MW Target:2016 / Est. budget:1.2 T won

Total 3,142MW

2) Wind projects under planning by Chonnam local government

Capacity

(MW)

On-shore

(MW)

Off-shore

(MW)

Est. budget:

B won for 1st stage

KOSEP 600 40 560 938.6

KOMIPO 300 100 200 250

KOSPO 500 100 400 460

EWP 200 50 150 181.3

KNHC 50 50 60

Fund Institute Consort. 1,000 200 800 4,400

POSCO PWR 600 200 400 2,300

LG E&S 1,000 1,000 3,000

Mitsui/Daewoo E&C 400 400 1,200

Dongkuk S&C 200 200 1,200

Acciona Korea 720 120 600 1,600

Total 5,570 2,210 3,360 15,589.9

Source: Chonnam Local Gov.

WTG Manufacturing Technology

* Shift from Indigenous to International Tech.

1.Indigenous Technology Developers:

1) Hyosung:

- 750KW and 2MW(Under test operation)

- 5MW(Under developing)

2) Unison: 750KW and 2MW(Under test operation)

3) Doosan:3MW(Under test operation)

4) Hanjin:1.5MW(Under test operation)

WTG Manufacturing Technology

2. International Technology Inducement:

1) Hyundai Heavy Industry(AMSC Wintec,USA):

- 1.65MW(under mass production, to supply domestic market and Pakistan )

- 5MW(Under developing for offshore project)

2) Samsung Heavy Industry(UK):

- 2.5MW(under mass production for onshore project)

- 5MW(under development for offshore project)

3) Daewoo Shipbuilding and Marine(Dewind,USA)

- 750KW,1.5MW,2MW(under production in USA)

- Ship for offshore WTG erection(Client: RWE)

4) STX Heavy(Harakosan,Netherland)

- 2MW, 3MW(under production in Netherland)

Component Producing Industry

1)Dongkuk S&C: Tower(Client:Vestas)

2) CS Wind:Tower(Client:Siemens,Vestas,GE)

3) Taewoong:Main shaft,Flange,Forged or molded materials(Client:Vestas,Siemens,GE)

4) PMS Pyongsan:Flange, Gear ring,distance plate, lock plate, rotor shaft, gear box for 1.5MW(Client:Vestas,Siemens,GE,Gamesa)

5) KM: Blades for 2MW, 3MW

6)Hyunjin Source Material:Main shaft, tower flange,Forged materials.

7) Korea Tech.: Rotor hub,Bed Plate 66

Plant projects including off-shore, overseas contract by Korean Firms

Overseas Market of Off-shore Wind (1) Round 2 in UK

Overseas Market of Offshore Wind (2) Round 3 in UK

Scottish Territorial Waters (STW) and Round 3 Sites

Source: Crown Estate 2010

11

12

Key STW Site Name Developer MW

1 Wigtown Bay DONG Energy 280

2 Solway Firth E.ON 300

3 Kintyre SSE Renewables 378

4 Islay SSE Renewables 680

5 Argyll Array Scottish Power Renewables 1,500

6 Beatrice SSE Renewables & SeaEnergy 920

7 Inch Cape RWE Npower & SeaEnergy 905

8 Bell Rock SSE Renewables & Fluor 700

9 Neart na Gaoithe

Mainstream 360

10 Forth Array Fred Olsen 415

Round 3 Site11 Moray Firth EDP Renewables & SeaEnergy 1,300

12 Firth of Forth SSE Renewables and Fluor 3,500

Total 11,238

Overseas Market of Off-shore Wind (3) in Germany

Overseas Market of Offshore Wind (4) in EU

Overseas Market of Off-shore Wind (5) in EU

Thanks for your kind attention

Korea Wind Energy Industry Association

Web-site:www.kweia.or.kr (822-553-6260)