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Making Offshore Wind Work

The Offshore Wind Group is examining issues critical to the development of off shore wind projects necessary to achieve renewable electricity targets. The Group had an active programme of work in 2005 and early 2006, which:

• Looked at the economics for off shore wind developments; · Reviewed the issues on the critical path for delivery of the Round 2 offshore wind projects;  Prepared Case studies for the Thames Estuary and the Wash areas;  Examined the Final Sums Liability (FSL) issue that affects the timing of grid reinforcement projects;  Investigated the scope for cost reduction in the supply chain for offshore wind;

The results of this work fed into RAB’s responses to the Energy Review (April 2006), which expressed support for the idea of reconsideration of the renewables support mechanism and further investment to support emerging technologies such as offshore wind, and the RO consultation (December 2006).

In April 2006, ODE Ltd was commissioned to investigate the scope for cost reduction in the supply chain for offshore wind, with the specific objectives to estimate the future costs of offshore wind generation, to assess where cost reductions in offshore wind projects were most likely to be realised and to use the information gathered to estimate the timing, cost and deployment of future offshore wind generation.

A final report (and cost model) for this work was completed in September 2006. The report identified two key areas that would have a significant influence on cost reduction: these were R&D and the benefits of learning through industry development.

For a copy of the final report 'Study of the Costs of Offshore Wind Generation' see 'Related Docs' on the right of this page.

Objectives and Work Plans for 2007

Once the outcome of the Energy Review is clear, the Group will re-activate to commence work on more detailed issues, including:

• Funding issues - banding of the RO
• Offshore grid solutions – connections and transmission regime; Cost reduction (following up work undertaken in 2006) and sharing best practice and experiences from Round 1-2; Options for Round 3; Consenting and strategic environmental assessment

Membership

BERR Representative: Katherine Watson

Work Group Leader: Sue Wheeler