Gwynt y Môr Offshore Wind Farm - RWE€¦ · Gwynt y Môr Offshore Wind Farm. Toby Edmonds Project...

Gwynt y Môr Offshore Wind Farm

Toby Edmonds Project Director, Gwynt y Môr

Liverpool, 12 September 2012

RWE Offshore Capital Market Day | 12 September 2012

Forward Looking

StatementThis presentation contains certain forward-looking statements within the meaning of the US federal securities laws. Especially all of the following statements: Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other financial items; Statements of plans or objectives for future operations or of future competitive position; Expectations of future economic performance; and Statements of assumptions underlying several of the foregoing types of statementsare forward-looking statements. Also words such as “anticipate”, “believe”, “estimate”, “intend”, “may”, “will”, “expect”, “plan”, “project”

“should”

and similar expressions are intended to identify forward-looking statements. The forward-looking statements reflect the judgement of RWE’s

management based on factors currently known to it. No assurances can be given that these forward-looking statements will prove accurate and correct, or that anticipated,

projected future results will be achieved. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Such risks and uncertainties include, but are not limited to, changes in general economic and social environment, business, political and legal

conditions, fluctuating currency exchange rates and interest rates, price and sales risks associated with a market environment in the throes of deregulation and subject to intense competition, changes in the price and availability of raw materials, risks associated with energy trading (e.g. risks of loss in the case of unexpected, extreme market price fluctuations and credit risks resulting in the event that trading partners do not meet their contractual obligations), actions by competitors, application of new or changed accounting standards or other government agency regulations, changes in, or the failure to comply with, laws or regulations, particularly those affecting the environment and water quality (e.g. introduction of a price regulation system for the use of power grid, creating a regulation agency for electricity and gas or introduction of trading in greenhouse gas

emissions), changing governmental policies and regulatory actions with respect to the acquisition, disposal, depreciation and amortisation of assets and facilities, operation and construction of plant facilities, production disruption or interruption due to accidents or other unforeseen events, delays in the construction of facilities, the

inability to obtain or to obtain on acceptable terms necessary regulatory approvals regarding future transactions, the inability to integrate

successfully new companies within the RWE Group to realise synergies from such integration and finally potential liability for remedial actions under existing or future environmental regulations and potential liability resulting from pending or future litigation. Any forward-

looking statement speaks only as of the date on which it is made. RWE neither intends to nor assumes any obligation to update these forward-looking statements. For additional information regarding risks, investors are referred to RWE’s

latest annual report and to other most recent reports filed with Frankfurt Stock Exchange and to all additional information

published

on RWE's

Internet Web site.


Evolution of RWE Innogy’s

offshore wind projects: North Hoyle and Rhyl Flats

2004

60 MW

30 Vestas

V80

Commissioning

North Hoyle

2009

90 MW

25 Siemens 3.6MW v107

Capacity

Turbines

Rhyl Flats


Operational performance track record

>

Target technical availability for offshore wind currently at 93% (onshore wind at ~97%)

>

Both North Hoyle and Rhyl

Flats show recent outperformance

>

Commercial availability influenced by events outside operator’s control, ie

turbine outage

>

However, warranty contracts from turbine manufacturers guarantee commercial availability under warranty contract for at least 5 years

AvailabilityLoad

North Hoyle Rhyl

Flats

10%

15%

20%

25%

30%

35%

40%

2004 2005 2006 2007 2008 2009 2010 2011 2012

>

Average load factor of 34% –

36%

>

Significantly below average wind year of 2010 followed by much better wind yields in 2011


Lesson learnt from Rhyl Flats and Greater Gabbard

>

Multi-contracting

>

Built strong relationships

>

Met mast data and experience

>

Purchased Seabreeze vessels & Market Engagement

>

HSE management systems

>

Contract Strategy

>

Working Relationship with Suppliers

>

Location and Conditions

>

Installation Vessels

>

Health Safety and Environment

Lessons Learnt Application at Gwynt y Môr


Gwynt

y Môr: Overview of Asset

Asset summary Geographic location

Location Off the north coast of Wales, United Kingdom

-

within the Liverpool Bay area of the Irish Sea.

Asset History Crown Estate Awarding 2003

Licensing Round UK Crown Estate Round 2

Capacity 576MW (approx. 400,000 homes), monopile construction

Turbines 160 x Siemens 3.6MW

Capex Circa €2bn

Commissioning 2013 -

2014

Wind Speed ~9m/s mean at hub height

Load Factor 38.6% (net)

Est. Output 973.6 GWh

/ annum

ROC Banding 2.0x ROCs per 1MWh output

Inst. Base Cammell Laird & Port of Mostyn

Ops. Base Port of Mostyn

Distance to Shore 13 to 15 km off the North Wales coast

Water Depth Between 12 and 28 metres at LAT

Bangor Llanfairfechan

Conwy

Llandudno

Colwyn Bay

Llanddulas

Abergele

Rhyl

Prestatyn

Mostyn

Flint

Hoylake

Gwynt y Môr Offshore Wind Farm (expected

2014)

Rhyl Flats Offshore

Wind Farm

North Hoyle

Offshore Wind Farm

Turbine Layout Met mast


RWE Contract Strategy

Gwynt y Môr: Project management

>

Large scale project: ~ €2 billion

>

Multi-contract approach: 100+ contracts

>

Main Contracts:

–

Turbines: Siemens (Denmark)

–

Foundations: EEW/Bladt

(Germany/Netherlands)

–

Offshore Substation x 2: Siemens (UK)

–

Onshore Substation: Siemens (UK)

–

Export cables: nkt

cables (Germany)

–

Inter-array cables: Draka

(Norway)

>

RWE’s own Seabreeze Vessel

Environment & consents

WTGs

WTG foundations

Substations & grid connection

Onshore cables

Export cables

Array cables

Ports & logistics


>

Turbine Supply Agreement signed in Q2/2010

>

WTG Foundation Supply Agreement signed Q4/2010

>

WTG Foundation Installation Vessels available at port Q3/2012

>

WTG installation begins Q2 2013 from Port of Mostyn

>

OFTO asset transfer in Q4/2013

>

First generation in Q2/2013

>

Full commissioning concluded during 2014

Gwynt y Môr: Project timeline and key milestones

Expected timelineKey points

2011 2012 2013 2014

Onshore Construction Works

WTG Foundation Installation

Offshore Substation Installation

Subsea Export Cable Installation

WTG Installation

Subsea Array Cable Installation

Grid Connection (National Grid)

2010


Gwynt y Môr: Capex

profile

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014

Capex

split

TurbinesFoundations

Cables & grid connectionOther

Envisaged cash outflow profile of €2 bn project capex


Gwynt y Môr: Progress so far

>

Onshore substation

>

Export cable/Onshore cable

>

Offshore Substations

>

WTG Foundations

>

Seabreeze/Stanislav Yudin

>

Cammell Laird –

fully mobilised

>

Mostyn –

preparation for wind turbine is Spring 2013

First TP Installed


Onshore Substation –

132/400kV

>

A 132/400kV substation is being constructed south of St Asaph Business Park, Denbighshire, north Wales to carry electricity generated offshore into the National Grid.

>

Work started in May 2010 and is due for completion later this year.

>

A short section of around 500m of overhead power line will transfer electricity from the substation to the National Grid.

>

The substation was deliberately located close to the existing National Grid transmission lines to minimise the requirement for lengthy overhead power lines.

>

Sections of the substation have already been successfully energised.


Onshore 132kV Export Cable

>

An 11km underground cable route will transport power from transitions pits near the beach landing point to the onshore substation.

>

Burying the cable underground avoids the need for lengthy overhead lines.

>

Work on the cable route began at the end of 2010 and is due for completion later this year.

>

21 landowners own the land under-which the cable is buried.

>

Once complete, it will be returned to its mainly agricultural use.


Offshore Substation Jacket Foundations

>

Two jacket foundation structures for the offshore substations have been installed more than ten miles offshore.

>

The jacket foundation structures were manufactured by Burntisland

Fabrication (BiFab) in Scotland and transported 940 miles around the coast to Liverpool Bay.

>

The foundations were installed using the heavy lift vessel, Stanislav Yudin.


Offshore Substation Topsides

>

Two topsides for the offshore substations have been designed and built by Siemens in Manchester and Harland and Wolff in Belfast.

>

Each topside was towed on a barge from Belfast to the installation site in Liverpool Bay.

>

Both topsides were installed using the heavy lift vessel, Stanislav Yudin.

>

Commissioning work is underway offshore to complete the offshore substations.


Subsea Export Cable Laying –

Purpose Built Barge “Cable Enterprise”

>

Four subsea export cables will carry the electricity generated offshore to connect with the onshore cable route.

>

The cables are coming ashore at Pensarn

in north Wales and being connected to the onshore cables at the transition pits.

>

The cables are being installed by Global Marine Services from their new barge, Cable Enterprise.


WTG Foundations

>

Foundation installation is underway in Liverpool Bay.

>

Foundations consist of a steel monopile between 60 –

70 metres long and 6-7 metres wide and a yellow transition piece.

>

These components are fabricated in Europe and arrive into our base harbour port facility in Birkenhead by barge.

>

The foundations are being installed using the heavy lift vessel, Stanislav Yudin and later Friedrich Ernestine.


Seabreeze Installation Vessel

Gwynt y Môr Offshore Wind Farm - RWE€¦ · Gwynt y Môr Offshore Wind Farm. Toby Edmonds Project...

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