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Collaborate to Innovate: The Role of Offshore Wind in Net Zero Emissions Stefania Omassoli Director, Programmes and Innovation Carbon Trust [email protected]

Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

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Page 1: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Collaborate to Innovate: The Role of Offshore Wind in Net Zero Emissions

Stefania Omassoli

Director, Programmes and Innovation

Carbon Trust

[email protected]

Page 2: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

We do it with independence, impartiality and no own economic interest.

Who are The Carbon Trust?

We help leading organisations worldwide contribute to and benefit from a more sustainable future.

ADVICE AND INSIGHTS

We consult businesses, governments, public sector

bodies

PROGRAMMES

We design and manage projects with real impact

ASSURANCE AND CERTIFICATION

We certify and assure achievements in sustainability

Page 3: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Offshore wind; critical to achieve net zero emission

Renewable energy is a core part of the future smart energy system

Total global capacity of offshore wind projected to be 500 GW by 2050 (IEA)

Page 4: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Global deployment of offshore wind

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

UK Denmark Germany Netherlands Belgium China Other

18 GW installed globally (end 2017)

• 2018 numbers will show greater than 20GW

• Driven from Europe, particularly the UK, followed by Germany, Denmark, and the Netherlands

• Early growth in new markets in Asia and North America – China leading but Taiwan, Japan, Korea, and the United States progressing rapidly

Page 5: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

8 MW is the largest turbine installed so far but 12 MW and 10 MW solutions will probably be installed soon

Turbines scaling up

Page 6: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Competitive auctions have accelerated cost reduction in Europe

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15 Years 15 Years ~12 Years 20 Years

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United Kingdom Netherlands Denmark Germany

Pro

ject

Years of Support

Bid Year

Whole sale price range

• Competitions introduced at the right time, once the industry had matured and developed a robust supply chain

• No local content requirements were imposed in the auctions

Page 7: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Capacity perspective

CONFIDENTIAL – NOT TO BE CIRCULATED OUTSIDE CARBON TRUST

Putting Offshore wind into perspective

20 GW

Global installed capacity (GW)

Offshore Wind

Page 8: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Capacity perspective

CONFIDENTIAL – NOT TO BE CIRCULATED OUTSIDE CARBON TRUST

Putting Offshore wind into perspective

540 GW

20 GW

Onshore Wind

Global installed capacity (GW)

Offshore Wind

Source: International Energy Statistics / Q3 2017: global power markets at a glance

Page 9: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Capacity perspective

CONFIDENTIAL – NOT TO BE CIRCULATED OUTSIDE CARBON TRUST

2000 GW

540 GW

20 GW

Onshore Wind

Offshore Wind

Coal Power generation

Global installed capacity (GW)

Source: International Energy Statistics / Q3 2017: global power markets at a glance

Putting Offshore wind into perspective

Page 10: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Expected global deployment in 2030

2030 global projection total: 120 GW

Compound Annual Growth Rate: 16%

Estimated cumulative capacity by 2030 - based on 4C Project Opportunity Pipeline, 2018, IRENA, INNOVATION OUTLOOK OFFSHORE WIND, 2017Carbon Trust Analysis, 2018BNEF, 2017

44GW36%

10GW8.3%

66GW55%

2030

Page 11: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Floating wind is gaining momentum1. Technology has been proven

IDEOL

Kabashima

Fukushima

2-7 MWProject size

2-7 MWTurbine size

1-3Turbine units

~20 MWCumulative IC (in 2016)

Demonstration sitesHywind

WindFloat

VolturnUS

Page 12: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Floating wind is gaining momentum2. Series of pre-commercial arrays set to come online by 2020/21

DCNS

IDEOL

SBM Offshore

Kabashima

Fukushima

20-50 MWProject size

6-8 MWTurbine size

3-8Turbine units

~100-200 MWCumulative IC (by 2020)

Pre-commercial

Hywind

WindFloat

IDEOL

WindFloat

Hywind

VolturnUS

Kincardine

Page 13: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Floating wind is gaining momentum3. Several commercial projects under development

USA: California + Hawaii

IDEOL

SBM Offshore

Kincardine

Kabashima

Fukushima

200-800 MWProject size

8-15 MWTurbine size

30-100Turbine units

~2-10 GWCumulative IC (by 2030)

CommercialHywind

IDEOL

Hywind

DCNS

WindFloat

WindFloat

VolturnUS

FR: Commercial tenderJP/TW: Commercial projects

Page 14: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Several challenges for large scale deployment of floating offshore wind

COST&

RISK

Dynamic cables & connectors

Integrated design

Mooring systems

Logistics (construction, O&M)

Substructure optimisation

Wake effects

Floating substation

Environmental & social impact

Turbine optimisation

Monitoring, inspection, maintenance, and repairs

R&D needed to: - Develop and de-risk

technology - Reduce costs

Page 15: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

01

02

03

Cost reduction

Collaboration

Lowering of risk

Increasing investment

Accelerating commercialisation of technology

Creating competition between the innovators

and market pull

Development of new technology to solve common problems

Facilitate the sharing of knowledge and learning

Market development

Collaboration and Innovation – driving offshore wind in new markets

Page 16: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

The Offshore Wind Accelerator (OWA)Collaborative research programme to bring down the cost of offshore wind through demonstration projects of innovative technologies and filling evidence gaps

€100m+Total programme spend

60%Industry funded

9Developer partners

10 yrsEstablished 2008

Carbon Trust has been working with government and industry to accelerate offshore wind for >10 years

ELECTRICAL SYSTEMS

FOUNDATIONS WAKES & WIND RESOURCE

ACCESS CABLE INSTALLATION

Page 17: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

The cost of offshore wind has reduced well beyond industry predictions

Page 18: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

The OWA has delivered a 15% reduction in LCOE, and £34bn overall savings

£34bn overall savings

-15.3%Average

LCOE impact

Page 19: Collaborate to Innovate: The Role of Offshore Wind in Net ...copjapan.env.go.jp/cop/cop24/assets/pdfs/events/... · Competitive auctions have accelerated cost reduction in Europe

Conclusion

• Offshore is core to the renewable energy transition

• European market is moving into maturity

• Global aspiration for offshore wind is strong and accelerating

• Floating wind is core to global offshore wind expansion

• Innovation and collaboration is key to reach the required deployment to reduce the global reliance on fossil fuels