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									UK Offshore
Wind Report
UK Offshore Wind Report 2011

                                     Gearing up for Round 3
                                     - one year on...
“Our programme for UK                In 2010 the UK commenced                           agreements between developers and
offshore wind is driving the         construction of another 1550MW of                  National Grid, have been a highlight of
industrialisation of this sector     offshore wind capacity, reinforcing our            2010. Just under half the total target zone
with up to 50GW capacity             global lead in marine energy.                      capacity for Round 3 has already been
available. The supply chain                                                             scheduled for connection before 2020.
                                     The Crown Estate’s UK leasing rounds
growth required will lead to
                                     provide the potential to deliver around            This has provided firm evidence that
investment and jobs across the
                                     47GW of offshore wind generation, with             industry and government are working
UK and we continue our strong
                                     Round 3 marking the start of the biggest           successfully and effectively together to
support in delivering vital new
                                     single programme in the world.                     provide certainty around key programme
renewable power.”
                                     Throughout 2010, developers of the nine
Rob Hastings, Marine Estates’
                                     Round 3 zones worked through initial               This has resulted in over £2bn intended
Director, The Crown Estate
                                     consenting issues and development                  investment being committed in 2010,
                                     studies alongside The Crown Estate as co-          including significant investment from four
                                     partner. To date, all key milestones have          major turbine manufacturers and eight
                                     been acheived and plans are in place,              vessel owners.
                                     detailing activity through to 2020.
                                                                                        The Crown Estate has carried out a total
                                     To support the overall programme, further          programme update with all the zones and
                                     agreements for lease were placed with              the earlier rounds in order to refresh the
                                     Round 2 developers capable of extending            opportunity curve published last year. The
                                     existing projects during the period 2014-          total capacity that could be achieved from
                                     2016, so that the rate of completions could        all rounds remains at just over 47GW.
“Round 3 is the most ambitious       be sustained as Round 3 construction               The overall programme out to 2020
marine renewable energy              commenced.                                         remains essentially unchanged one year on
programme in the world. We,
                                     In addition four demonstration facilities          providing continued confidence in
along with our development
                                     were announced in the summer that, when            delivering 25GW operating or in
partners, are focused on
                                     developed, can provide 34 offshore test            construction from Round 3 alone.
delivering over a quarter of the
UK’s energy needs whilst creating    “pads” for new turbine products.                   The UK and the Scottish Governments
a world leading industry.”           The Crown Estate has worked closely with           have announced separately, infrastructure
                                     its partners in building strategic relationships   development funds for coastal
Alastair Dutton, Round 3 Programme
                                     through the Commissioners Representatives          manufacturing and port facilities totalling
Manager, The Crown Estate
                                     in each of the partners’ teams. As well as         £130m - £70m for Scotland and £60m for
                                     integration within the development                 England.
                                     process, the Representatives also perform          Last year’s series of supply chain events
                                     a linking role with all the enabling actions       were oversubscribed, with 3,000 delegates
                                     that The Crown Estate is undertaking.              attending the 12 events. This year we are
                                     Aimed at de-risking and accelerating the           confident we will see the same level of
                                     programme, these enabling actions are              commitment from an ever growing list of
                                     now arranged under five strategic                  major manufacturers and their chain of
                                     workstreams, allowing key themes to be             supply.
                                     explored by relevant specialists across all        The UK continues to lead the world in
                                     the partners.                                      offshore wind farms,offering tremendous
                                                                                        opportunities to deliver new business
                                     The formation of the Offshore Wind
                                                                                        growth and jobs making renewable
                                     Developers Forum and its enabling of
                                                                                        electricity a reality.
                                     changes to offshore transmission provision,
                                     together with subsequent connection

Opportunity for generating capacity from all current leasing rounds

                                                                                          Strategic Workstreams
                                                                                          The Crown Estate is now managing all
                                                                                          its enabling actions under five strategic
                                                                                          ● Health and Safety
                                                                                          ● Planning and Consenting
                                                                                          ● Supply Chain and Skills
                                                                                          ● Grid and Technology
         Information taken from Developers updated forward plans and projected capacity   ● Project Economics and Finance

                                                                                          Examples of ongoing work:
Round 3 programme delivery curves                                                         UK Fishing Industry Mapping
                                                                                          (UKFIM) project
                                                                                          This will, for the first time, collect
                                                                                          accurate data of fishing vessel
                                                                                          movements, demonstrating where
                                                                                          fishing activity occurs on the whole UK
                                                                                          continental shelf. It will allow developers
                                                                                          and fishermen to achieve three key
                                                                                          aims: to allow The Crown Estate to plan
                                                                                          future leasing rounds (taking into
                                                                                          account the potential impacts on
                                                                                          fisheries), allow fishermen to promote
                                                                                          their own interests, and allow
                                                                                          developers to gain a full picture of
                                                                                          fishing activity within a development
                                                                                          area and to plan for, and mitigate,
         Information taken from Developers updated forward plans and projected capacity   accordingly.

                                                                                          Careers Guide
                                                                                          Offshore wind will be competing for the
                                                                                          brightest talent to fill the skills
                                                                                          requirement of our industry. Working
“The potential for Britain to lead in the                                                 with RenewableUK and existing offshore
offshore wind industry is immense. We need                                                wind Companies, we developed a
                                                                                          careers guide for schools and colleges.
thousands of offshore turbines in the next                                                It describes the different stages of wind
decade and beyond and manufacturing these                                                 farm development, provides case studies
                                                                                          of people already in the industry detailing
needs large factories which have to be on the                                             why they chose to work in this exciting
                                                                                          new area, and outlines the educational
coast. We’re providing up to £60 million to meet                                          and work experience necessary.
the needs of offshore wind infrastructure at our                                          The guide was funded by our Marine
ports. This will create jobs, help secure our                                             Stewardship Programme and copies
                                                                                          have been made available in schools’
energy supplies and protect our planet.”                                                  careers departments, other enabling
                                                                                          bodies, and from our website.
The Prime Minister, Rt Hon David Cameron

UK Offshore Wind Report 2011

Planning and
                                            The Crown Estate issued a framework           for the need for offshore renewables as
                                            document on zonal appraisal and planning      part of a diverse, low-carbon energy mix.
                                            (ZAP) to aid Round 3 developers identify
                                                                                          Marine management bodies in England and
                                            sites within zones, and to manage the risk
                                                                                          Scotland, the Marine Management
                                            of cumulative impacts arising from
                                                                                          Organisation (MMO) and Marine Scotland
                                            clustered development.
                                                                                          respectively, are now operational and
                                            This document has been agreed with            advising developers on their requirements.
                                            Round 3 developers and is available at        These bodies are also responsible for
                                           implementing a marine planning system
                                            aisal_and_planning.pdf.                       within the areas they administer. The MMO
                                                                                          recently announced the first plan areas in
                                            MaRS, The Crown Estate’s spatial planning
                                                                                          English waters (East Inshore and Offshore).
                                            system, is also available to developers and
                                            key stakeholders to assist them in better     The Crown Estate is working closely with
                                            understanding the development constraints     the IPC, the MMO and Marine Scotland
                                            and opportunities related to each zone.       along with developers and RenewableUK
Site selection
                                                                                          to understand the implications of legislative
Round 3 developers are currently            Developing regulatory context
                                                                                          changes and to ensure that regulators are
identifying individual sites within each    The Localism Bill, announced in
                                                                                          aware of the Round 3 development
zone and submitting applications for        December 2010, indicates that
Agreements for Lease to The Crown           government intends to merge the
Estate.                                     Infrastructure Planning Commission            Marine Conservation Zones
                                            (IPC) into a Major Infrastructure             The process of identifying proposed
Some developers are already well
                                            Planning Unit (MIPU) located within the       Marine Conservation Zones (MCZ) in
advanced with the early stages of project
                                            Planning Inspectorate.                        England started in April 2010 and is now
applications, with scoping reports for
                                                                                          well underway.
Environmental Impact Assessement (EIA)      Consultation on National Policy Statements
being issued and discussions with           (NPS), which will still form the key basis    It is expected that MCZ recommendations
regulators (Infrastructure Planning         against which applications to the IPC/MIPU    will be made to Government by November
Commission and Marine Scotland) and         will be considered is now underway. The       2011.
relevant stakeholders are underway.         consultation draft still makes a clear case
                                                                                          It is a stakeholder led process organised
Round 3 development and consenting plan                                                   into four regional projects - Finding
                                                                                          Sanctuary, NetGain, Irish Sea Conservation
                                                                                          Zone and Balanced Seas - each tasked
                                                                                          with identifying site boundaries and
                                                                                          conservation objectives for a suite of MCZs
                                                                                          in their region.
                                                                                          The Crown Estate has appointed a Marine
                                                                                          Policy Officer to work closely with each of
                                                                                          the projects, attending all local and regional
                                                                                          planning workshops, and to advise on the
                                                                                          implications of proposed MCZs for the
                                                                                          Marine Estate and our offshore renewables
                                                                                          programmes. Supported by information
                                                                                          obtained from MaRS it has been possible
                                                                                          to advise, at an early stage, each of the
                                                                                          regional projects of the existing interests
                                                                                          potentially affected by proposed

GRID: Making the
right connections
Electricity transmission is an essential        ● Regulatory improvement to enable               Offshore Wind
enabling factor to the delivery of the             offshore energy projects to secure            Developers Forum
offshore energy schemes and                        connections in a timely, reliable and cost    The forum has been set up to
programmes.                                        efficient way;                                facilitate and accelerate the
                                                                                                 delivery of offshore wind energy.
2010 saw encouraging improvements on            ● Development of a transmission network
the regulatory front of transmission.              that will contribute to the aim of reducing   It consists of senior executives in the
Ofgem’s finalised Offshore Transmission            cost and risks of delivering offshore         18 developers working on offshore
Owner (OFTO) Enduring Regime now                   renewable; also delivery of offshore          wind projects around the UK, the
includes more flexibility, allowing offshore       transmission to avoid unnecessary             government, The Crown Estate, and
wind farm developers to develop and                consenting delays and uncoordinated           industry bodies.
construct the transmission infrastructure if       development;
                                                                                                 It works on solutions to remove
they wish.
                                                ● Mitigation of a potential bottleneck in        barriers that have the potential to
Requirement of user commitment (or                 supply of offshore export power cableling.    impede the viability and deliverability
connection securitisation) has also been                                                         of offshore wind in the UK - for both
                                                In addition The Crown Estate is actively
revised to a more amenable level, after                                                          existing and future rounds of
                                                contributing to the current review and
wider system reinforcement costs have                                                            development - while also maximising
                                                reform on transmission charging and
been excluded.                                                                                   benefits to the UK economy.
                                                electricity markets.
The introduction of ‘Connect and Manage’                                                         The first notable achievement was to
                                                To prepare for potential electricity export
has further alleviated uncertainties                                                             agree with Ofgem a proposal to allow
                                                from renewable energy sources to Europe,
surrounding the impact of potential delays                                                       a generator-build option on the
                                                post 2025, The Crown Estate will also
in deep system reinforcement works.                                                              enduring offshore transmission
                                                investigate the development of a pan-EU
Currently the total capacity of offshore wind   offshore grid to underpin future leasing
schemes - with connection agreements in         rounds and renewable energy export.              This would remove much of the risk of
place with National Grid - have reached                                                          connection of windfarms to the
                                                This will be in conjunction with the North
over 27GW as published in the                                                                    national grid, a major barrier to
                                                Seas Countries’ Offshore Grid Initiative
Transmission Entry Register produced by                                                          investment in the industry.
                                                confirmed by the ten North Seas Countries
National Grid.
                                                and the EU in December 2010.
The Crown Estate continues to work
closely with all the stakeholders involved in   Grid Connections: allocated capacity by leasing round and status
offshore transmission and help to ensure
that grid and transmission are a genuine
enabler, rather than a barrier, to a speedy
delivery of offshore energy projects.

Transmission Programme
The Crown Estate has initiated a
dedicated Transmission Programme to
play a more effective and proactive role
in the delivery of the necessary offshore

The immediate challenges The Crown Estate
aims to address in this programme are:

● Sustainable use of seabed and
   foreshore for cable corridors to cope
   with intensified cable laying activities;

UK Offshore Wind Report 2011

Health and Safety
The Crown Estate is committed to the
pro-active and diligent management of
its assets, and the protection of
people working on its estate.
In the offshore wind sector, we are able to
utilise our unique position of having a         With the UK’s Round 3 development                 emphasis on turbines larger than 5MW and
strategic overview of projects, to facilitate   programme kicking off at the start of             a significant number utilising direct drive
and assist health and safety initiatives        2010, The Crown Estate, working with              technology points to both the size of the
that tackle common issues faced by the          the regions and devolved                          market, and the need for scale to drive
industry.                                       administrations, catalysed supply chain           down costs and improving reliability.
                                                interest around the UK with 12 regional
At present we are working closely with                                                            Currently four of these OEM companies
                                                events in the first quarter of the year.
our development partners,                                                                         have publically stated their intention to site
RenewableUK, and external stakeholders          The success of these regional events              either R&D or manufacturing facilities in the
on issues such as aerial survey, vessel         demonstrated that UK companies have the           UK. In 2010 The Crown Estate reached
safety, training and competency, design         capability to service all phases of the           agreement for four offshore test sites that
safety and sharing of lessons learnt and        planned development programme.                    will allow these new products to be put
good practice.                                                                                    through their paces.
                                                The wide coverage given to this ambitious
Ultra-reliability is a key factor, and covers   programme has encouraged other national           To cope with the surge of manufacturing
the functional design of the wind parks         markets, particularly in Northern Europe, to      interest The Crown Estate is currently
from concept through to decommissioning.        define their own offshore wind generating         carrying out a gap analysis of the likely
                                                targets and timelines. This can only serve        longer term requirements for offshore test
The Crown Estate is committed to
                                                to strengthen the confidence and                  facilities, to enable sufficient facilities to be
maximising safety by design: building
                                                commitment of major players to invest in          available to the widest number of companies.
robust and dependable equipment,
                                                this vibrant new industry.
systems and structures, that minimise                                                             Likewise this new wave of products has
operations and maintenance activities so        As a consequence we have seen                     prompted significant investment this year in
requiring significantly less physical           tremendous growth in the number of                new build turbine installation vessels, with
intervention offshore. This reduces the         turbine manufacturers declaring plans for         over eight jack-up vessels being
need for personnel transfer and working         new designs of generators prepared                constructed around the world. Customers
in the offshore environment -                   specifically for larger arrays and offshore       vary from shipping owners to installation
consequently reducing the health and            deployment and operation. The presence            contractors to developers seeking security
safety risk at a fundamental level.             of over 20 potential different suppliers, their   of vessel availability. Based on previous

                                                Progressing offshore wind turbine design

designs these new vessels can lift the           components and designs. With High              The recognition of the importance of
larger 5MW+ turbines, work safely in the         Voltage Direct Current systems the three       dedicated offshore wind manufacturing,
deeper waters of Round 3 sites, and install      principal suppliers have already converged     assembly and shore line construction areas
over longer periods - some claim year            on similar converter technology and there is   commensurate with industrialisation of the
round working will be achievable.                appetite for standardising substation          offshore wind industry has been assisted
                                                 “blocks” to meet predicted project sizes for   this year with both Scottish and UK
Foundation suppliers have been coming
                                                 Round 3. Suppliers of subsea export            Governments announcing funding for
forward in larger numbers from steelwork
                                                 cables need to increase in volume to meet      activities in creating such facilities starting
fabricators, including both companies
                                                 Round 3 project delivery.                      in April 2011.
expanding production and investing in new
production line facilities, to new entrants      New entrants will need several years to        The Crown Estate is working closely with
such as Corus with steel supply as part of       design, test, certify and manufacture new      government as well as landowners and
the offer. In addition concrete substructures    products and will need to locate these at      manufacturers to bring forward schemes
providers have been far more active and          shore-based facilities in order to load out    around the UK.
there are now at least six different solutions   on to the specialist lay vessels.
                                                                                                These will both underpin regional growth in
aimed at Round 3 sites under
                                                 The number of specialist contractors with      the offshore wind sector and provide the
development, including a barge installed
                                                 the knowhow and experience to lay the          basis for hubs of activity including R&D and
system under The Carbon Trust’s Offshore
                                                 new multi-GW cables will also need to          skills development that will provide the
Wind Accelerator programme.
                                                 increase in the more challenging conditions    focal point for the rest of the nascent
Standardisation of key components has            of Round 3. The recent clarity over OFTO       supply chain to feed into.
long been seen as a pre-requisite for            infrastructure provision should help to
lowering costs and improving supply              speed up this sector with the direct
volumes and in particular around electrical      involvement of the generating companies.

Supply chain scorecard

UK Offshore Wind activity

    For further details on Round 3 please contact:


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