FWP 2017 l Pierre PEYSSON, WPD Offshore France “LCOE: 5 levers for cost reduction”

1. HOW TO DEVELOP & STRUCTURE AN OWF IN ORDER TO
OPTIMIZE THE LCOE ?

2. #FWPAtlantic
CONTENTS
1. Why floating ?
2. OWF Spatial planning
3. Optimizing the development

3. 3
WPD, UN GROUPE D’ÉLECTRICITÉ RENOUVELABLE
Réparations et
Maintenances
Développement, construction
et exploitation
Gestion commerciale et
technique des parcs éoliens
• Identification des
sites propices
• Etude de
faisabilité
• Gestion de projet
• Concertation
• Demande
d’autorisations
• Coordination des
études d’impact
et des études
techniques
• Montage
administratif,
juridique et
financier
• Financement du
développement
de projets
• Modélisation et
planification
économique
• Investissement
projets
• Négociation avec
les fournisseurs
• Conduite d’appel
d’offres
• Gestion de projets
(qualité, coûts,
délais)
• Vente de projets
par appel d’offres
• Vente de projets
à des partenaires
stratégiques ou à
des investisseurs
• Exploitation en
propre - IRPP
(capacité > 1300
MW)
• Gestion
commerciale
(comptabilité,
assurances,
banques, etc.)
• Gestion
technique
(Opération et
Maintenance, en
lien avec les
fabricants et
fournisseurs de
service)
Développement
de projets
Structuration
et
financement
Procédure
d’achat et
construction
Vente / IRPP*
Gestion
technique et
commericale
IRPP* : producteur indépendant d’électricité d’origine renouvelable

4. 4
3 PARCS INSTALLÉS, 10 POST FID, 5400 MW EN COURS
Allemagne
Baltic 1 (48.3 MW)*
*projet acquis par EnbW en 2008
Butendiek (288 MW)
Nordergründe (111 MW)
Kaikas (581 MW)
Spinnaker (160 MW)
Gennaker (640 MW)
France
Courseulles (450 MW)
Fécamp (498 MW)
Dunkerque (250-750 MW)
Oléron (500 MW)
Boulogne Grand Large (250 MW)
Finlande
Suurhiekka (480 MW)
Suède
Storgrundet (420 MW)
Pays-Bas
Hollandse Kust Zuid (700 MW)
Taiwan
Guanyin (250 MW)
Taoyuan (100 MW)
Yunlin (500 MW)
Changhua (200 MW)
Phase de projet (capacité totale)
En exploitation (336,3 MW)
En construction (111 MW)
En processus d‘achat des composants (948 MW)
Approuvé (1 481 MW)
Participation aux appels d’offres (1 950 MW)
En phase préliminaire d‘autorisation (2 050 MW)

5. 5
WHY FLOATING ?
More
space
Possibly better
wind ressource

6. 6
OWF SPATIAL PLANNING
~375 000 km²
Some GWs in operation
Ex :
- 10GW installed = 1 500 km² / 0,4 % or the total sea space
- 20GW installed = 3 000 km² / 0,8 % of the total sea space

7. 7
OWF SPATIAL PLANNING
~375 000 km²
~170 000 km²

8. 8
OWF SPATIAL PLANNING
~375 000 km²
~170 000 km²
~135 000 km²
- D<70km : 82 000 km²
- D<100km : 100 000 km²

9. 9
OWF SPATIAL PLANNING
~375 000 km²
~170 000 km²
~135 000 km²
- D<70km : 82 000 km²
- D<100km : 100 000 km²
Politic decision for medium
term objectives (? GW 2030)
BE

10. 10
OWF SPATIAL PLANNING
~375 000 km²
~170 000 km²
~135 000 km²
- D<70km : 82 000 km²
- D<100km : 100 000 km²
Politic decision for medium
term objectives (? GW 2030)
Projects development &
optimization

11. 11
OPTIMIZING THE DEVELOPMENT (ONLY SOME ELEMENTS…)
1. Fix the process : CfD, FIT, etc…
a. Greenfield development with fixed price €/MWh depending on technology & efficiency (flh) : good to
promote the development of projects but difficult for the State to anticipe and have visibility
b. Tender with CfD : could be good for getting the best price per project but need to have strong State decision
in the projects planning & objectives
2. Minimize the risks of the project development
a. Preliminary technival investigations (meteocean, wind ressources, soil conditions, etc…) are key factors that
could, if not well know, increase the uncertainty on the project and then will lead the candidate to budget
contigencies that will have an impact on the economy of the project
b. Secure the project development planning & optimize the delay between tender award & FID
c. Fix the industrial plan not to early
d. For cost efficiency on a tender, put 100% of the criteria on the price €/MWh
e. Justify your tecnical choices and set up a specific procurement plan (EPC & I, or E, PC & I or EPCI)
f. Anticipate the grid !!

12. 12
SOME VARIOUS PROCESS IN EUROPE
1. ~1st french tender process : tender at a very early stage
2. ~NL/DK tender process : tender once permits are secured
3. ~NL/DK tender process deteriorated : tender once permits are authorized but not
100% secured
4. ~UK process (with price competition): tender after preliminary tecnical investigations
& permits to obtain from the candidate awarded

13. 13
~1ST TENDER IN FRANCE
Strategy Development phase Année
N
Année
N+1
Année
N+2
Année
N+3
Année
N+4
Année
N+5
Année
N+6
Année
N+7
Année
N+8
Année
N+9
A TENDER
A Environmental investigations
A EIA & authorization documents to submit
A State services analysis for authorization
A Legal issues / claims
A Consent secure
A Preliminary technical investigations
A Detailled engineering & procurement
A FID
5 to 5,5 years after award
6 to 6,5 years of development

14. 14
~NL/DK PROCESS
Strategy Development phase Année
N
Année
N+1
Année
N+2
Année
N+3
Année
N+4
Année
N+5
Année
N+6
Année
N+7
Année
N+8
Année
N+9
D TENDER
D Environmental investigations
D EIA & authorization documents to submit
D State services analysis for authorization
D Legal issues / claims
D Consent secure
D Preliminary technical investigations
D Detailled engineering & procurement
D FID
3 to 3,5 years after award
(2 years more efficient)
8 to 8,5 years of development
(2 years longer)
= minimize the contigencies during the tender due to technical uncertainties
Resultsduringtender

15. 15
~NL/DK PROCESS DETERIORATED
Strategy Development phase Année
N
Année
N+1
Année
N+2
Année
N+3
Année
N+4
Année
N+5
Année
N+6
Année
N+7
Année
N+8
Année
N+9
C TENDER
C Environmental investigations
C EIA & authorization documents to submit
C State services analysis for authorization
C Legal issues / claims
C Consent secure
C Preliminary technical investigations
C Detailled engineering & procurement
C FID
3 to 3,5 years after award
(2 years more efficient)
6 to 6,5 years of development
(same time)
= minimize the contigencies during the tender due to technical uncertainties
Resultsduringtender

16. 16
~UK PROCESS
Strategy Development phase Année
N
Année
N+1
Année
N+2
Année
N+3
Année
N+4
Année
N+5
Année
N+6
Année
N+7
Année
N+8
Année
N+9
B TENDER
B Environmental investigations
B EIA & authorization documents to submit
B State services analysis for authorization
B Legal issues / claims
B Consent secure
B Preliminary technical investigations
B Detailled engineering & procurement
B FID
= minimize the contigencies during the tender due to technical uncertainties
3,5 to 4 years after award
(1,5 year more efficient)
5 to 5,5 years of development
(1 year more efficient)
1. Tenders launched
at short term
2. 30 % reduction of
delay between
Tender award
(€/kwh negociated)
& FID
3. 1 year reduction of
the total project
development
periodResultsduringtender

17. 17
OPTIMIZING THE DEVELOPMENT : FIND THE GOOD PROCESS
Process Tecnical
investigations
on site before
tender
Administrative
documents
secured after
tender
Who get the
authorizations
Development
phase period
(years)
Delay
between
tender Award
& FID
(years)
Delay between
start of
development
& tender
(years)
1st tender in France
Tender
laureate
6 to 6,5 5 to 5,5 0
~DK/NL process State 8 to 8,5 3 to 3,5 4
~DK/NL process
deteriorated
State 6 to 6,5 3 to 3,5 2
~UK process (with
price competition
during tender)
Tender
laureate
5 to 5,5 3,5 to 4 0,5

18. MANY THANKS ! PIERRE PEYSSON
WPD OFFSHORE FRANCE
NEW PROJECTS DEVELOPMENT MANAGER
P.PEYSSON@WPD-OFFSHORE.FR