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Stakeholder Management on Scotland’s Norwegian Interconnector Project Edinburgh 16 th of May 2012 Richard Blanchfield NorthConnect UK PM & Head of Technical. Contents. NorthConnect Project Background Internal Stakeholder Management Juggling an international JV project

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  1. Stakeholder Management on Scotland’s Norwegian Interconnector ProjectEdinburgh 16th of May 2012Richard BlanchfieldNorthConnect UK PM & Head of Technical

  2. Contents • NorthConnect Project Background • Internal Stakeholder Management • Juggling an international JV project • External Stakeholder Management • Juggling multiple international interests

  3. Non-Norway (50%) Norway (50%) 16.7% 25% 16.7% 16.7% 25% NorthConnect Owners

  4. Norwegian Partners

  5. UK Nordic • Dominated by thermal power (24h production -> daily price fluctuations) • Increase of wind power - need for flexibility / storage • Dominated by hydropower (flexible production -> seasonal price fluctuations) • Dry years are a problem • 50% of European storage Direction of Energy Exports At day Storage for night time production Daily During night In dry periods Clean water power replaces thermal energy Seasonal In wet periods Windy Wind / Hydro Interoperability Additional energy will be stored Calm + - + - + - + -

  6. Facts & Figures • Bi-directional VSC-HVDC technology • 1400MW – ½ million homes (Glasgow) • Converter stationsAberdeenshire and theWestern Fjords • 600 km (= Peterheadto Manchester)

  7. Business Plan • UK Landing Financial Close Investment Decision Contract Awards WP1 Pre-FEED • EIA / Surveys • Consents • Subsea Survey • Detail Design • Procurement WP2 Consultn. Oct-21 WP3 Planning Execution Lead Times Installation & Construction 7

  8. Internal Stakeholder ManagementJuggling an international Joint Venture project

  9. JV / Project Company Governance NCAS (BOARD) Derrick Allan SSE Odd Øygarden E-Co, CHAIR Per Swenzen Vattenfall Øyvind Stakkeland Agder Energi Øle Gabrielson Lyse Jo Viljam Drivdal CEO / PM NCKS (EXECUTIVE) Project Management Team (PMT) 9

  10. Project Delivery Governance Project Manager Permitting Department Technical Department Commercial Department Norway UK Subsea WP1 WP2 WP3 PH1 PH2 PH3 10 10

  11. Too Many Cooks? • Five organisations, with own systems processes & Governance structures • People at Board / PMT level from different companies, mostly part-time seconded into NorthConnect • Significant SSE involvement in UK & Agder Energi in Norway  11 11

  12. Governance & Teamwork PMT Owners Group WP2 • Internal communications are a challenge: • 15 people in 10 different locations • Clarity of responsibility, activities and reporting • E-room file sharing • Telcos & VC’s • Targetted meetings 12 12

  13. External Stakeholder ManagementJuggling multiple international interests

  14. Breadth & Depth Local Residents Council Roads dept. Residents Kommune Industry Asset owners Environml. Regional Aberdeenshr. Energetica NVE Fisheries MoD Coastguard JNCC National MSP’s Scottish Govt. MOPE Stattnet Nat. Grid Ofgem DECC Commission ACER ENTSO-E Scotland Norway Subsea UK EU 14

  15. Communications Strategy • Consistent message in all three markets • Create a good perception of the project • Process for PR and media handling • Gradual and balanced escalation of effort • Promote political dialogue • Communicationsreference group 15 15

  16. Techniques • Ministry of Petroleum and Energy (MOPE) • MOPE grants: • Revenue Exemption (RE) • Foreign Trade License (FTL) • MOPE focus on political and socio economic issues • Owner of Statnett SN’s Conflicting roles • Statnett as TSO: • Tie-in to the domestic grid as TSO • Obligation for tie-in, but no time limits.... • Assessment of grid implications • Key input to Construction license, • REA and FTLA • Statnett as: • Owner of ICs • Close adviser for MOPE • Adviser for NRA (NVE) • Key input to construction license, RE and FTL applications • NRA (NVE) • grants construction licence, but reports directly to MOPE • focus on technical issues • MOPE is the appeal body... The key issues for permitting processes are the mixed roles of Statnett and the conflict of interest of MOPE as owner and regulator Influence Diagrams 16 16

  17. Techniques Stakeholder Positioning 17 17

  18. Techniques Management Plan 18 18

  19. In Conclusion

  20. Conclusions • An important project for Scotland • Defining project Governance, processes and systems takes time • Internal management isequally important toexternal management • Its all about people andrelationships

  21. Glen Coe Hardanger Fjord “From Wind to Hydro and back” 21 21

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