14:30 - 16:00 The supply chain - thinking ahead!
Supply chain
Room: Hall F
This supply chain session looks at opportunities for mitigating risks by transferring offshore approaches to onshore operations. It explores how an industrialised non-EU country is preparing for wind ramp-up and how development of new technology can still use an existing supply chain.
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Learning objectives
Delegates will be able to:
- Explain how certification helps to ensure market compliance and technical risk mitigation;
- Describe how new product developments use established production processes;
- Elaborate on how the supply chain can contribute to lower levelised cost of energy;
- Explain that manufacturing surveillance can reduce risk wind farm loss of production;
- Describe the diversified supply chain of a non-EU high technology country.
Presenter
Co-authors:
Giles Hundleby (1) F
(1) BVG Associates, Cricklade, United Kingdom
Presenter's biography
Biographies are supplied directly by presenters at WindEurope Summit 2016 and are published here uneditedGiles Hundleby has nearly 30 years of design and development experience. He combines deep technical, engineering design and international market knowledge to make a difference to renewable energy clients . A chartered Fellow of the Institution of Mechanical Engineers, with an engineering degree from Oxford University, Giles regularly helps clients get to grips with practical challenges. He fully understands the role that an integrated approach to product design and development plays in offshore renewables.
As Director at BVG Associates, Giles leads on product development process, reliability engineering, innovation development, commercialisation, technology strategy and levelised cost of energy (LCOE) impacts.
Abstract
Supply chain as important as engineering in the journey to subsidy free
Introduction
Offshore wind is now a significant part of European electricity generation. Its success is thanks to significant subsidy. To maintain (and grow) the current installation rate, the industry must clearly demonstrate it can soon achieve a levelised cost of energy (LCOE) that is ‘subsidy free’. The supply chain will be just as important technology on this journey.
Approach
The presentation will present the path to subsidy free. It is uses the very latest industry insight, technology roadmaps and likely financial impacts. It clearly signposts how the industry can become subsidy free as quickly and effectively as possible
Main body of abstract
Offshore wind is now a significant part of European electricity generation. Its success is thanks to significant subsidy. To maintain the current installation rate, the industry must clearly demonstrate it can achieve a levelised cost of energy (LCOE) that is, in effect, ‘subsidy free’.
In the UK, the recent budget provided indications of the scale of cost reduction for projects reaching final investment decision (FID) by 2023. The Offshore Wind Cost Reduction Monitoring Framework has provided evidence that progress is being made, but there is no collectively industry-owned position regarding LCOE beyond 2023.
It is clear that an extended role for offshore wind in the Europe’s electricity generation is dependent on communicating clearly its journey to becoming competitive with all forms of new generation.
As dialogue with governments about the route to ‘subsidy free’ offshore wind intensifies, the industry must identify a clear, consistent and compelling path to achieve subsidy-free.
New industry engagement has been carried out to address specific details and the results have been validated with industry and key stakeholders. In line with the definitions of the Cost Reduction Pathways Study, this presentation considers the effects of supply chain as well as technology. It also considers the impact of such progress on finance.
Conclusion
The offshore wind industry can become subsidy free but it will require supply chain and financial innovation just as much as engineering innovation
Learning objectives
The presentation will be invaluable for:
• Industry leaders to help with discussions with Government about how they can reduce costs and communicate the benefits of their new strategies.
• Industry stakeholders including RD&D funders and potential market to indentify the developments that will have the biggest impact on cost reduction. areas most likely to drive the biggest reductions in cost of energy.
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