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Duncan Mackay Crown Estate - A Case Study and Update on The Crown

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					A Case Study and Update on The Crown Estate
Wave & Tidal Programme



Duncan Mackay
Project Manager (Wave and Tidal)
The Crown Estate


16 June 2010
The Crown Estate
The Crown Estate is a property and land owner which benefits the taxpayer, with
core values of commercialism, integrity and stewardship


•   The Crown Estate
    – Property and land owner, not
      regulator
    – Not part of government but
      work closely with government
•   Main objectives
    – Benefit taxpayer by paying
      revenue from assets to Treasury         Urban          Marine   Rural     Windsor
                                              Estate         Estate   Estate     Estate
    – Enhance value of estate and
      income it generates                       • Portfolio value over £6 billion
                                                • Returned £230m surplus to Treasury
                                                FY 2008/09 figures
The marine estate
As owner of the seabed, we play a key role in offshore low carbon energy by
providing site options and leases

•   The Crown Estate plays key role in
    offshore low carbon energy
    industry
•   As owner of seabed around UK
    coast, provide site options and
    leases for projects
•   Objective to maximise value of
    marine estate over time
•   To date, let sites for up to nearly
    50 GW offshore wind projects
•   Increasingly active in other areas          UK territorial waters, internal waters
                                                    and Renewable Energy Zone
Overview of work in wave and tidal energy
We are active in leasing wave and tidal projects and supporting project development



 Leasing
 •   Leasing rounds
      –    Round 1 Pentland Firth and Orkney waters: 10 demonstration and commercial
           projects, 1.2 GW potential capacity (600 MW wave, 600 MW tidal), plus Inner
           Sound re-tendering (200 MW+)
      –    Further Scottish leasing round (Saltire Prize projects)
      –    In future, other rounds across UK (following SEA completion)
 •   Demonstration leases – Demonstration projects up to 10 MW capacity

 Support for development
 •   Pentland Firth and Orkney waters – Developers Forum and £4m Enabling Actions fund

See www.thecrownestate.co.uk/wave-tidal
Round 1 Pentland Firth and Orkney waters
We announced agreements for lease for 1.2 GW of projects in March 2010
Inner Sound re-tendering
We are currently re-tendering one site in the Pentland Firth and Orkney waters


                                           •   Inner Sound lies between Scottish
                                               mainland and island of Stroma and
                                               is one of most energetic tidal areas
                                               in Pentland Firth
                                           •   Currently re-tendering site;
                                               expressions of interest and pre-
                                               qualification phase closed 28 May
                                               2010
                                           •   Process ongoing to see which
                                               companies have pre-qualified and
         Map showing Inner Sound               will be invited to tender
                                           •   Award anticipated in early Autumn
Further Scottish leasing round
We are working closely with the Scottish Government to develop a further leasing
round

•   In partnership with Scottish
    Government, developing plans for
    further wave and tidal leasing round in
    Scottish waters in connection with
    Saltire Prize
•   Leasing round will create additional
    opportunities for companies to
    compete for Saltire Prize
•   Consultation has been held on
    proposed areas for lease and input
    received from range of stakeholders
•   Further details of round will be
    announced later in 2010
                                                    Map of proposed areas for lease
Demonstration leases
Developers may apply for demonstration leases for sites around UK


                                             •   Outside leasing rounds, we offer
       Demonstration projects                    demonstration leases for projects to
                                                 demonstrate wave or tidal generation
  Projects                                       technologies
  •Up to 10 MW installed capacity or
  20 devices
                                             •   Developers welcome to request
                                                 conflict checks and apply for site lease
  Sites                                          option agreements
  •Anywhere around UK, including             •   Guidance available on website
  where SEA not yet complete, subject
  to conflict check                          •   Application windows in April and
  •Not in areas identified for existing or       September
  future leasing rounds
                                             •   Currently in discussions with c. 30
                                                 companies about demonstration
                                                 leases
Next steps
Further announcements will be made later this year and we are actively planning
future activities

•   Result of Inner Sound re-tendering expected early Autumn
•   Details of further Scottish leasing round to be announced later in 2010,
    including areas for lease and application process
•   Demonstration leases available to apply for now
•   Looking ahead , seeking to foster development of emerging wave and tidal
    industry through further leasing and support for development
Infrastructure Projects


• We are heavily involved in supply chain
  issues and work to identify infrastructure
  needs

• Ongoing work to identify grid
  enhancements

• Ongoing work to identify ports
  and harbour work –
  to be fed into NRIP.
Infrastructure Projects


• We are promoting demonstration projects
   and will announce preferred bidders for
   demonstration sites over the next few weeks
• demonstration sites are expected to
be used to demonstrate any or all of the
following new technology or methods:
• ● Turbines
• ● Foundations
• ● Electrical system
• ● Installation methods
• ● Operation methods
Infrastructure Projects - a case history – the Pentland project


•Developers invited to the area
•MAJOR PROBLEM – NO GRID
ACCESS
•‘Chicken and egg situation’
•No grid solution = no developers
•No developers = no grid solution
Approach adopted......
   •Multi agency approach
   •Started talks with SSE Power
   Distribution and National Grid to
   understand the issues
   •Hired consultants to take options
   forward
Key pieces of work........

•East Coast Transmission
Report Technical Feasibility
Study by Econnect
•Pentland Firth Tidal Energy
Project Grid Options Study
By Xero Energy
In summary.......

•Infrastructure projects can often
be quite daunting to take on
•They will often involve a lot of
money and take a long time to
implement
•They often require the help of
multiple agencies
•But they can be done!!
Any Questions?



 duncan.mackay@thecrownestate.co.uk




  www.thecrowneate.co.uk/wave-tidal

				
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