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BWEA OFFSHORE 2003

This document outlines the registration procedures and criteria for Round 2 of offshore wind energy projects. A total of 29 companies and joint ventures have registered, targeting approximately 70 sites with a combined potential of over 20 GW. The competitive framework aims to allocate prime sites to the most qualified developers, taking into account environmental assessments and relevant factors. Key evaluation criteria include experience, financial stability, project plans, and community consultation. The process will culminate in joint discussions and a decision by DTI.

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BWEA OFFSHORE 2003

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  1. BWEA OFFSHORE2003 Round 2 Procedures and Criteria WORK IN PROGRESS

  2. REGISTRATION • 29 companies/ JVs registered • About 70 “sites” • Over 20 GW in projects – but much is overlapping/competing • About 25% is beyond Territorial Sea • Interest is mainly in DTI’s Strategic Areas, but about 20% of sites were elsewhere • Greatest focus (about half) is on Outer Wash area

  3. Overall Aims • “To award the largest and most sought-after sites, in a competitive framework, to the applicants most ready and best fitted to develop each site to its optimum capacity taking account of the Strategic Environmental Assessment and other relevant factors • To award other sites to applicants that meet acceptable minimum criteria and are fitted to develop a site, taking account of the Strategic Environmental Assessment and other relevant factors”

  4. Procedure • A panel will be appointed by the Crown Estate Board, in consultation with DTI, consisting of CE and DTI representatives. • Each Panel Member will assess applications individually and award marks in accordance with a pre-agreed set of criteria, marks available and weighting factors • Panel will meet , if necessary after further information and interviews with applicants, and will reach agreement on recommendations to CE Board and to DTI • CE Board agreement and Award ofsites

  5. 1.The Applicant INFORMATION REQUIRED • Description of Applicant • Capability and experience • Financial strength • Performance in Round 1 or elsewhere in Europe • JV Arrangements (if any) • Project Management Team and Approach • Current Offshore Plans and Projects

  6. 1.The Applicant CRITERIA • Experience/Performance • Financial Strength • JV and Project Team

  7. 2.The Development INFORMATION REQUIRED • Scale of Development • Total Output in MW • Total square kilometres • Phasing (if any) • Degree of commitment to plan • Site information /knowledge available • Technical • Environmental • Geological • Sedimentary • Wind Resource • Grid Connection

  8. 2.The Development CRITERIA • Megawatts by 2010 • Megawatts by 2015 • Thoroughness of preparatory work • Current • Proposed • Other Factors

  9. 3.The Business Plan INFORMATION REQUIRED • The Financial Plan • The Company/JV • Development Plan to Consent Stage • Construction Plan • Operational Plan (to include servicing considerations) • Supply Chain Considerations • Installation Plant • Foundation/superstructure • Turbine components • Community Consultation • Stakeholder consultation – Navigation, ,fishery etc. • Environmental Approach • Long-term ownership plans

  10. 3.The Business Plan CRITERIA • Overall Coherence/credibility • Environmental and Community • Key stakeholder Issues – (Fishery, navigation etc.) • Innovation

  11. 4.Decommissioning INFORMATION REQUIRED • Foundation Design • Decommissionability of foundation • Plant • Decommissioning Plan (Outline) including, • Costings • Timescale • Financial proposals

  12. 4.Decommissioning CRITERIA • Coherence of Technical Proposals • Certainty of Financial Arrangements

  13. Notes and Considerations • Each criterion will carry a fixed number of points • a weighting factor will be applied to each criterion, and possibly to each set of criteria • Where there is competition for sites, each site will be awarded to the applicant with most points overall • To be awarded a site an applicant must gain a minimum of 50% of points available under each heading

  14. FEE Arrangements Purpose: • To discourage more speculative applications blocking or interfering with progress by committed developers on important sites • To cover administrative costs • To provide a firm financial basis for cooperative support and furtherance of renewable power offshore

  15. FEEBASIS • PROJECT FEE* MAXIMUM NUMBER OF SITES • Less than 20 Km² £y 2 • Less than 75 Km² £y+ 3 • Less than 150 Km² £y++ 4 • Less than 250 Km² £y+++ 5 * Fees will be phased - an application charge, followed by a payment on award of site(s) and a further payment after, say, 6 months

  16. SITE SPECIFICATION • 1. Each “project” must be within one strategic area • 2. Each site must be a rectangle defined by four points / co-ordinates • Boundaries of sites will be absolute – buffer zones must be incorporated within the total square kilometrage • Sites will be able to be moved until planning applications are approved but only to areas not already licensed to another operator • Sites can be contiguous or separated • 6. Any unusual shapes will be decided at the final discretion of The Crown Estate in consultation with DTI

  17. THE COUNTDOWN • Direct communications with each registered company/JV • Developers’ seminars to discuss and clarify process • Lease Group discussions to clarify terms • June - DTI decision on Round 2 announced • Competition launched immediately • 3 months for submissions • 1 month for decision process • Offers made at end September ...and it’s up to you

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