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Lessons Learnt from European Offshore Wind: 1999 to 2011 – a broad brush perspective

Lessons Learnt from European Offshore Wind: 1999 to 2011 – a broad brush perspective Sebastian Chivers, Senior Vice President June 22, 2011 – Virginia Beach, VA. About PMSS Global consulting firm, established in 1994 and working exclusively in renewable energy

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Lessons Learnt from European Offshore Wind: 1999 to 2011 – a broad brush perspective

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  1. Lessons Learnt from European Offshore Wind: 1999 to 2011 – a broad brush perspective Sebastian Chivers, Senior Vice PresidentJune 22, 2011 – Virginia Beach, VA

  2. About PMSS • Global consulting firm, established in 1994 and working exclusively in renewable energy • We work in support of the world’s leading renewable energy businesses, providing products, services and practical recommendations throughout the capital value chain • Team of over 120 engineers, scientists and consultants from a wide range of backgrounds and representing some of the sharpest consulting minds in the renewable energy business • Experience on the majority of offshore wind projects worldwide, and over 90% of the Europe’s operating projects • Offices throughout Europe, and USA headquarters in New York City

  3. Evolution of UK Offshore Wind – 1999 to 2002 • Typically prototype scale projects / 2 WTGs / Client led project team • 4 Assets (WTGs, Cable, Grid) / simple contracting structure with 10-20 managed interfaces • Outcome: • some ££ and some lost time • considered bearable by the Client for a demonstration project Insert Pic

  4. Evolution of UK Offshore Wind – 2002 to 2007 • Typically 25-30 WTGs, with mixture of EPC and multi-contract • Assets including WTGs, inter-array and export cables, occasional requirement for OSP, onshore S/S and O&M facility • 100+ managed interfaces • Outcome: • limited proactive management • significant £cost and time-loss for Client and EPC contractors • all contracting parties becoming more Risk adverse Insert Pic

  5. Evolution of UK Offshore Wind – 2007 to 2011 • Typically 100-300 WTGs, further from shore / deeper water / much larger-scale • Assets including multiple OSPs, complex cable and grid issues, virtually all multi-contract and Client managed • Potential no. of interfaces >5000 • Outcome: • implementation of formal management process (perhaps not yet at the optimum level) • better definition / clearer scopes / more concise contacts / improved comms. resulting in reduced risk in terms of programme and cost • proactive and not reactive Insert Pic

  6. Evolution of UK Offshore Wind – 2011 to 2020+ • Projects 200km+ from shore in deep water locations / multi-project zones / 3000+ WTGs • Multiple OSPs with AC/DC converters / DC offshore to shore connections / offshore accommodation platforms / complex access and logistical challenges • Potential no. of interfaces ??? • Outcome if we do not manage Risk appropriately: • prohibitive excess £cost • “trans-season” project delays • potentially major impacts on stakeholder confidence and industry as a whole Insert Pic

  7. Lesson Learnt I – Project Management • Effective leadership • Building the team – early with experienced people • The cost of the project team is a fraction of the CAPEX • Project demands vs. supply chain availability How do we fill this gap...?

  8. Lesson Learnt II – Design control • Holistic approach to Design Risk Analysis (DRA) • Engineering Design Management process • Engineering Interface Coordination

  9. Lesson Learnt III – Improving EHS performance • Leadership and Culture • Goals and Objectives • Alignment of Standards • EU 92/57 implementation (CDM 2007) • Emergency Preparedness • Learning from previous experience • Working with Authorities (HSE, MCA etc.)

  10. Lesson Learnt IV – Managing Project Interfaces • Clear definition of Interfaces • Custodians • Include in Contracts • WBS / PIR • Monitor • Appropriate resources ∞ ∞

  11. Lesson Learnt V – Planning for O&M • Clear and focused O&M philosophy • Integrate O&M team with Construction phase processes • Transition planning from Construction to O&M • Proactive not Reactive • Spare Parts strategy • Vessel and Aircraft strategy • Asset Optimization Tools

  12. Lesson Learnt VI – Murphy’s Law • “Expect the unexpected”

  13. Contact us Sebastian Chivers Senior Vice President PMSS America, Inc. 590 Madison Avenue 18th Floor New York, NY 10022 Tel: +1 212 521 4161 Cell: +44 7951 076 758 Email: sjc@pmss.com www.pmss.com

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