CR Workshop, Taiwan, 3th September 2019

Construction and operationsin offshore wind projects:

Key risks, lessons learnt, and risk management through due diligence

Agenda

• Introductions

• Services

• Project value chain

• General completion and operational risks

• Construction and operation LTA services

• Construction and operational issues

• Example case studies

• Q&A

We’re a global engineering, management and development consultancy focused on guiding our clients through many of the planet’s most intricate challenges.

17k staff, 170 permanent offices, 150 years of heritage

Introducing Mott MacDonald

Opening opportunities with connected thinking

Iban Vendrell Taiwan Energy Team Leader

• Over 12 years of experience in the renewables business

• Previously Wind Business Program Leader for Asia

• Experienced in assisting the lenders and project owners during due diligence and construction monitoring for wind farms

• Supported governments in drafting and/or implementing renewables programmes

Jim Chen Taiwan Executive Director

• Over 12 years of experience in the renewables business

• Taiwan Executive Manage

• With more than 25 year experience in project management and construction management of mega projects

• Having been Involved in offshore wind farm, solar power, thermal power, water, building and transportation projects in Taiwan

Offshore Highlights with Mott MacDonald Track Record

• 1st non-recourse finance deal (world)

• 1st Belgian, US and Taiwan deals

• Advised on over 50% of offshore wind projects worldwide

• 4 projects advised in Taiwan

• 13 projects advised in North East Asia region

Offshore wind resources

• Wind offices Taipei, Tokyo, BKK, SNG, Melbourne

• 30 dedicated staff in Asia

• 12 staff in Taiwan

• 250 staff involved globally

Broad Range of Technical Services (OTA, OE, LTA)

Project Value ChainRisk, cost and bankability assessment

Project value increases as the project undergoes de-risking and capitalization

Site Identification Permitting Construction Construction OperationOperation

Operational Risks

• Electrical design and grid code compliance

• Civil structure durability • Turbine performance• Operations management • O&M strategy • Energy yield• Agreement risks• Permitting Constraints• Opex budget and MRA

Completion risks

• Participants experience• Ground risks• Wind farm layout • Civil design • Electrical design and grid code

compliance • Construction management • Construction strategy • Schedule • Agreement risks• Permitting Constraints• Capex budget and contingency

BRAND+-BRANDBRAND

Emphasis on commercial impact

Quality, schedule, cost, performance

Monitoring Construction

• Independent review of monthly reports

• Monitor Progress• Review H&S and

Quality• Monitor financials• Approve drawdowns

Monitoring Testing

• Review commissioning / testing plans

• Assess test results• Confirm project

completion

Monitoring Operations

• Independent review of monthly reports

• Monitor availability performance

• Monitor O&M performance

LTA role during construction and operations

Example construction risks and mitigation

Design a robust project schedule including float

1. Poor weather leading to delays on packages

Robust DD, conservative schedule, investigation of vessel performance, marine warranty surveyor

2. Vessel and equipment availability

Strong contractors, owner supervision, robust testing, procure insurance

3. Poor cable installation/handling

Understand sources of delays and add appropriate float

Consider grid connection and cable manufacturing lead time

4. Interfacing delays

Use strong contractors, owner management, owner QA/QC plan (appropriate staffing)

5. Poor quality control

Example operational risks and mitigation

Robust measurement campaign and EYA methodology, IE view, use latest tools

1. Poor quality EYA leads to lower than expected performance

Operational accessibility study pre-FID, mitigants (helicopters, hotel vessels, etc)

2. Poor understanding of site accessibility

Negotiate strong availability warranty with O&M contractor, owner capacity building

3. Slow response in major interventions

End of warranty inspection program

4. Poor end of warranty inspections

To link each WTG tower with the monopile foundation and level the tower’s verticality, a transition piece is fitted on top of the monopile using a grouted connection made of high strength concrete.

A retrofit solution using elastomeric bearings was designed. Implementation resulted in significant costs.

Solution

Across the industry some small slippages of the parallel sided grouted connections have been experienced.

Issue

Case Study

MP-TP grouted connection slippage

Construction issue

The design of the MP-TP interface of following projects was changed.

Lessons

MM supported on understanding and modelling:

1. level of damage and potential consequences

2. cost impact on the project in terms of repair campaigns and loss of production

3. the optimal time to perform the repair campaigns

4. the best repair and retrofit solutions

Case StudyOperation issue

Blades needed to be

repaired/ replaced

due to blade erosion

Better protection

systems have been

developed

Issue

Lesson

Questions?

Thank you

Iban.Vendrell@mottmac.com

Jim.Chen@mottmac.com

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