DMITRIY CHERNYAVSKYY - EDP RENEWABLES

MORAY OFFSHORE RENEWABLES LTD.

• PROCURMENT ASSISTANT

• 6TH OF JUNE TO 2ND OF SEPTEMBER 2016

1. Introduction

2. Project Overview

i. Moray Offshore Renewables Ltd

3. My role

i. Scenario of my analysis

ii. Brexit analysis

4. Environmental impact

i. Reduction in Costs

• CONTENT

• 4th-year student at the University of Edinburgh

• Have learnt about Bright Green Placements indirectly

• Sphere of sustainable development

• HypEd - facebook.com/hypedinburgh

• Making world a better place

• INTRODUCTION

• EDP – Energias de Portugal

Leading Portuguese business group

• EDP Renováveis

Based in Madrid

3rd largest wind generator globally

• MORL project

• The Eastern Development Area within the Moray

Firth zone will be constructed first, see Figure 1.

• Further split into three wind farm sites as also

illustrated in Figure 2.

• Smith Bank in the outer Moray Firth.

• Approximately 22km from the shore.

• 520 square km.

• 37m-57m in water depth.

Figure 1: MORL Development Area

Figure 2: Eastern Development Area

• PROJECT OVERVIEW

!

• Bottleneck of the office

• Not a standard procurement job

• Hypotheticals and assumptions

Invitation to bids

Request for Proposal

Risk/Delay Analysis

Due diligence

• MY ROLE

Other Responsibilities:

• Constant consciousness and concentration. Due to confidentiality of information.

• Negotiations. Being a face of the company.

• Small contract issues, a lot of collaboration with legal team.

Finish-to-Finish analysis: Appearance of a Delay

SCENARIO: 18.5% SLOW PROGRESS

0%

20%

40%

60%

80%

100%

120%

20/01/20 10/03/20 29/04/20 18/06/20 07/08/20 26/09/20 15/11/20 04/01/21 23/02/21

Pro

gre

ss

Finish Date

18.5% Slow Progress: Impact of a DelaySub. Base Case

Sub. Grace Periods

IAC Prep. Base

Case

IAC Burial Base

IAC Test Base

IAC Inst Base

Sub Scenario

IAC Prep Scenario

IAC Ins Scenario

IAC Burial Scenario

IAC Test Scenario

NOTE - The difference between BASE

CASE (dashed line) finish and

SCENARIO (solid line) finish is the

basis for calculation of delay cost

NOTE – An intersection of the two

glowing lines is our main source of

Liquidated Damages.

More specifically – The area to the

right hand side of the grey and to the

left hand side of the glowing red line

Total value of LDs: Cost (IAC) No Buffer

4,424,335£ 15,411,182-£

Duration of a Delay in IAC:50.1

Net Value with NO buffer

10,986,847-£ Duration of a Delay in

Substructures: 36.9

Net Length: 329.9

Total Length: 380.0

• BREXIT HAPPENED

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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Exc

ha

ng

e R

ate

Va

lue

Year

GBP/EUR Exchange Rate

GBP/EUR MVOW agreed base

When estimate

is made Escalation of

cost is a

danger to us

• Adjusting all the math

• Danger to existence of MORL

• Made project less feasible

• WHAT DID I GET OUT FROM THIS PLACEMENT?

WHAT DID I GET OUT FROM THIS PLACEMENT?

• ENVIRONMENTAL IMPACT

• Lowest global warming potential per unit of electrical

energy generated

• Some downsides: noise produced by the rotor blades,

etc.

Tackles existing problems and generates new

ones:

• Marine life

• Overall less impact on environment

• Costs are at the stage of reduction due to

economies of scale and similar effects

• REDUCTION IN COSTS

Observe the

reduction in

Levelised Cost of

Energy (LCOE).

Thank you for your time!