Contents
1. 2. Introduction to Element Power and Greenwire Current Export Environment
The Export Opportunity Greenwire - Overview Regulatory and Statutory Environment Current Project Status
3.
4.
Summary
Barriers to the export opportunity Greenwire in Summary Conclusion
Element Power
Element Power established in 2008, backed by $1bn Hudson Clean Energy fund Management team led some of the largest companies and transactions in renewable energy sector over 20 years Track record in delivering thousands of MW of projects and have already built up a significant development portfolio in Europe and US Mike ONeill is President of Element Power Group, formerly Commercial Director of RES Group, and has been responsible for establishment and rapid growth of Element Power portfolio Element Power Ireland consists of former SWS Energy senior management team which had established the largest privately owned Irish wind portfolio (200MW operational &
Irish Perspective
o o o o More resource than required for domestic use Member of a large nearby open trading economy Need to create new export led growth Expertise in technology and finance
Greenwire - Overview
OBJECTIVE
Deliver up to 10 TWh p.a. of renewable energy to the UK market starting 2018 at a lower cost and with more certainty than offshore projects
Onshore wind farm of 3GW situated in the Irish midlands Direct connection to UK grid (in Wales) via two dedicated HVDC sub-sea cables, not touching the Irish Grid Up to of new UKs 2020 Renewables delivered at much lower cost than offshore wind (7bn saving) Project located in Laois, Offaly, Meath, Westmeath and Kildare, all of which closer to the UK grid than the Dogger bank Round 3 offshore projects 8bn Infrastructure Project promoting growth and jobs in the UK and Ireland in regions particularly hit by recession New larger turbines opens up previously untapped regions of Ireland, harnessing wind energy resource surplus to our requirements Dogger Bank 4 GW
Land
Signed land agreements with Coillte December 2012 Close to 2GW secured in total (further details later) IFA approval of Greenwire land agreements (including 2D setback)
Planning
Commenced SID process with ABP in July 2012 Detailed EIS work underway, with ecology surveys commenced in October 2012 for 3GW (around 40 sites). Extensive consultation with NPWS, Fisheries, local councils, planners etc.
Grid Overview
As Minister Rabbite stated recently we need a coordinated build out of infrastructure, need to avoid proliferation of cables Element Power has 2GW Transmission Entry Capacity (TEC) connecting to Pembroke and 1GW TEC into Pentir, on condition we also provide a controllable 1GW AC link between the two . Until the AC bootstrap in Ireland is completed, we would individually have 1.41.6GW capacity into Pembroke and 0.9GW into Pentir. This allows a staged build if permitting or cable manufacture requires .
Pembroke 400kV
National Grid have requested that we install 2 x 2.5GW capacity for 5,000MW of physical capacity. We are currently in discussion with OFGEM and DECC and NGUK regarding the regulatory treatment of such anticipatory investment. This would allow the combination of export projects to create a project of 3-5 GW subject to negotiation with National Grid
2. Post energisation the grid must have a separate owner from the wind assets. We are comfortable for the UK and Ireland to participate in the ownership (perhaps through NGUK or EirGrid or both).
3. We believe that there is an opportunity to build 2 x 0.5GW spurs using HVDC multi-terminal technology, respecting EirGrids largest in-feed limit.
Element Power Design Approach o Suitable regions for sites were selected using GIS analysis with the following criteria: o Avoid environmental designations (SAC, SPA, NHA) o Avoided sensitive landscapes o Compliance with DOECLG Irish Wind farm Planning Guidelines o Local constraints such as: o Minimum of 500m setback of turbines from housing, o Setback from other constraints - water courses, existing infrastructure (telecoms, power lines) Detailed onsite assessments are now been undertaken to confirm suitability of sites Engagement with local authorities, NPWS, IFI etc. to confirm suitability of sites
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Any sites not compliant with the above constraints will lead to major problems and ultimately can cause the entire concept to fail.
Land Status
Greenwire Lands
Element Power has agreement to survey enough lands for 3,000MWs It has legal agreement on enough land for > 2,000 MWs Layout designed to adhere to Irish Planning Guidelines (including 500m set-back from private dwellings) 10 year option agreements with agreed IFA terms including all access requirements Only signed with landowners who have viable sites and form part of a properly designed turbine layout
Tu r b i n e Te c h n o l o g y
Next Generation of turbines: Longer bladed turbines (130m rotor diameter) Higher generating capacity (c. 4MW) Yielding high capacity factors (37-40%)
Reasons for next generation turbines: 1. DOEs Irish Wind Farm Planning Guidelines recommends taller turbines in flat or lowlying landscapes 2. These more efficient turbines reduce the turbine density in the midlands which is necessary to give a better chance of getting planning for the project 3. Due to the medium wind speeds in the midlands larger machines are necessary to get optimum output and reduce the cost per kWh of the electricity produced
Job Creation
Construction Jobs
o 15 jobs per MW constructed annually in EU Of which 2 jobs/MW are development, civils, electricals, deliver, erection (6,000 jobs) Assume just > 1 jobs/MW (out of a possible 13) in supply chain attracted to Ireland (4,000 jobs) 10,000 construction phase jobs for Greenwire.
Sources: - EWEA Wind at Work & - DECC Onshore Wind Direct & Wider Economic Benefits
o o
Irish Benefits
National Benefits
Create a new export industry that will generate in excess of 1bn per annum for up to 50 years Jobs will be created and enable a new industry to be created around such a large scale project. It is an enabler project that will open up other areas of the country to the export opportunity and also gives Ireland the opportunity of playing a leading role in the offshore industry. This new industry will create considerable additional Taxes to the exchequer. Grid infrastructure will allow for significant interconnection between Ireland and UK (and European grid system) enabling better access to electricity generation and ultimately allowing Ireland to benefit from European electricity rates
Strategic Infrastructure Development process covering permitting of wind turbines and grid connection to Ireland/UK boundary UK permitting process to be run concurrently Positive feedback to project from consultation with 5 local authorities Environmental assessments commenced for 18 month period Submission of SID application in 2013 Fully permitted project by end of 2014
TIMETABLE
Mitigations
Strategic infrastructure development act is crucial. Thorough detailed design with constant focus on the oral hearing. Selection of best consultants. Ruthless culling of problematic sites, turbines or cable routes. Aim to use multiple vendors, but need to ensure converter stations interoperability. Market testing process to choose between multiple XLPE and Mass Impregnated cables in early 2013 Careful phasing of construction phase of project Permitting/financial close must be achieved by end 2014. Identify primary and secondary legislation package in 2013, implement in 2014
HVDC cable represents large fraction of world capacity (Lead times quoted are 36-40 months from order to energisation.) Legislation lead times in both UK & Ireland
1.
Maximum of 3-4GW Potential in Midlands: Having spent the last 3 years surveying lands, securing land agreements, meeting local councilors, planners, NPWS, Fisheries etc. we are convinced that there is a 3-4GW resource in the midlands of Ireland (similar density of turbines that is already built or has planning in Cork/Kerry/Limerick). We do not believe there is 8-9GW available in the midlands of Ireland.
2.
No Impact on Existing Irish Renewable Targets: Crucially, the 3-4GW of lands we have identified for Greenwire do not in any way impinge on any Gate 3 projects identified for Ireland to meet its domestic targets. It is our view, and that of IWEA, that there is a sufficient pipeline of both grid connections capacity and planning permission that will allow the ROI to build c4,000MW of wind generation required to hit the 40% 2020 target.
3.
Timing is Key Challenge: The biggest risk for Greenwire is to be able to achieve permitting by end 2014 to allow financial close in early 2015 and connection by end of 2017 and 2018, in order to be reliably available for UK 2020 targets.
Greenwire In Summary
1. The numbers add up A 7bn saving is compelling for the UK electricity consumer. We know how much onshore wind and HVDC costs. 2. The technology works The Midlands wind resource is exceptional given new turbine technology. Onshore turbines work. HVDC cables are proven. 3. We can get planning for it We are not trying to put any more turbines per county than already in Cork and Kerry. 4. Win Win for Ireland and the UK Strong economic benefits for both countries in the export opportunity succeeding. 5. There are challenges The regulatory regime is going to be complex. Can you have UK transmission system on Irish soil? But it can be done.
Conclusion
o Many indirect benefits such as legacy interconnector, centre of excellence for green funds