2011 Deep Research Report on EU and China Offshore Wind Power Industry

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2011 Deep Research Report on EU and China Offshore Wind Power Industry

2011 Deep Research Report on EU and China Offshore Wind Power Industry

Hard copy :2500 USD Electronic copy(PDF) :2500USD Hard and Electronic copy :3000USD Pages:257 Tables and figures :78 Published date : Mar 25, 2011 Publisher: QYResearch Wind Energy Research Center Contact: Mr. Zhang Dong 86-10-82945717; 86-13811796901, sales@qyresearch.com Summary Offshore wind is the mean of a reliable, intensive and abundant renewable energy. This relatively new source of electricity generation, which is capable to meet much of the populated coastal areas need for power around the world, has been also stimulating the development of marine economies with thousands of new jobs. Recently, offshore wind power has been widely viewed as a feasible way to transform economies from oil reliance to sustainable growth not only to meet government obligations in cutting emissions, but to provide the fundament for a new economic sector. Key actors of the oil and gas supply chains are very welcomed to step into and take an active role in the future advancement of offshore wind power. In fact, we can see how offshore wind is already providing a safety belt for marine industries across the North Sea region in Europe where oil is slowly depleting but offshore wind farm projects have been just started to take on a rapid phase of development. Thanks to strong government supports is clear that Europe is leading the sector which won a decisive role on making the transition to a low-carbon economy possible by the middle of this century. So keeping an eye on what is happing in the EU countries, more accurately off to their shores, is essential to predict the future potentials offshore wind provides for long term investments in other parts of the word, especially in the excitingly growing Chinese market. The key aspects this report focuses on:  Overview on the most recent offshore wind power developments around the world.  Overview on the essential technologies in offshore wind but also presenting the potential development path for the sector.  Specific focus on the EU market with the key developments in 2010.  The Chinese market potential is presented as well as the major challenges facing to the yet undeveloped Chinese market.  Chapter Five investigates into the technical, engineering and economical aspects of installing offshore wind farms in order to provide a good overview and clear understanding on investment cost. The main sections of the wind farm configuration are distinguished to identify the cost QYResearch Mr. Zhangdong sales@qyresearch.com 13811796901 8610-82945717

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2011 Deep Research Report on EU and China Offshore Wind Power Industry

components. Each cost pool of subsystems is detailed by taking into account size and distance factors.  Donghai Bridge offshore wind farm is presented as a case study for return on investment analysis.  Finally, a comprehensive databank is included to this report to provide our readers a clear picture on the supply-chain of offshore wind market as well as the available turbines and all offshore wind farms in the four major markets (UK, Germany, Denmark, China). This enables further investigation into future potentials. In a word, “2011 Deep Research Report on EU and China Offshore Wind Power Industry” was a depth research report on China and EU Offshore Wind Power industry. And thanks to the China and EU Offshore Wind turbine and offshore wind farm experts help and support during QYResearch Wind Energy team survey and interviews.

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2011 Deep Research Report on EU and China Offshore Wind Power Industry

Table of Contents EXECUTIVE SUMMARY

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I. THE PRESENT STATUS OF OFFSHORE WIND POWER2 1.1. THE WHOLE SECTOR OF WIND POWER 2 1.1.1. Global wind power market review in 2010 2 1.1.2. The potential of wind power to meet high demand 1 1.2. OFFSHORE WIND POWER MARKET GROWTH 1 II. OFFSHORE WIND TECHNOLOGY 3 2.1. OFFSHORE VERSUS ONSHORE WIND POWER 4 2.2. THE KEY OFFSHORE WIND TURBINE TECHNOLOGY 7 2.3. TECHNICAL DIFFICULTIES OF OFFSHORE WIND8 2.3.1. The problem of stability 8 2.3.2. Manufacturing and transport9 2.3.3. Installation and grid 9 2.4. OFFSHORE WIND TURBINE DEVELOPMENT AND CURRENT SITUATION 10 2.4.1. 500 ~ 600 kW-class Prototype 10 2.4.2. The first generation of commercial MW offshore wind turbine development 11 2.4.3. Applications of the second generation MW wind turbines 11 2.4.4. Development and utilization of third Generation MW wind turbine 11 2.4.5. Cutting-edge Offshore Technology 12 2.5. THE WORLD'S MAJOR OFFSHORE WIND TURBINE MANUFACTURERS 13 2.5.1. Industry actors’ point of view 14 III. THE EU OFFSHORE WIND POWER REVIEW 15 3.1. KEY MARKET FEATURES OF THE WHOLE WIND POWER SECTOR IN THE EU IN 2010 17 3.2. KEY TRENDS FOR OFFSHORE WIND POWER SECTOR IN THE EU IN 2010 19 3.3. OFFSHORE WIND POWER MARKET DEVELOPMENT PROSPECTS IN THE EU IN 2011 AND BEYOND 25 3.4. INVESTMENT COSTS FOR OFFSHORE WIND BASED ON EU EXPERIENCES28 IV. PERSPECTIVES FOR OFFSHORE WIND POWER IN CHINA 30 4.1. OVERVIEW ON OFFSHORE WIND ENERGY IN CHINA AND COMPARING IT TO ONSHORE WIND 32 4.2. CHALLENGES FOR OFFSHORE WIND POWER IN CHINA 34 V.

OFFSHORE WIND FARM INVESTMENT COST ANALYSIS 36

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2011 Deep Research Report on EU and China Offshore Wind Power Industry

5.1. TECHNO-ECONOMIC FEATURES OF OFFSHORE WIND FARMS 37 5.1.1. Wind Turbines37 5.1.3. Electrical system 41 5.2. THE INVESTMENT COSTS OF OFFSHORE WIND FARMS 42 5.2.1. Turbine cost 42 5.2.2. Foundation cost 43 5.2.3. Electrical system cost 44 5.2.3.1. Collection system 44 5.2.3.2. Integration system 46 5.2.3.3. Transmission system 46 5.2.4. Grid interface cost47 5.2.4.1. Regulation devices 47 5.2.4.2. SCADA/EMS controlling system 48 5.2.4.3. Project development cost 48 5.3. COST MODEL APPLICATION 48 5.4. CASE STUDY – DONGHAI BRIDGE RETURN ON INVESTMENT ANALYSIS 51 5.4.1. Profit estimation for Donghai Bridge offshore wind farm 52 Ⅵ OFFSHORE WIND POWER DATABANK 55 6.1 OFFSHORE WIND POWER SUPPLY CHAIN AND OPERATIONS MANAGEMENT NETWORK IN CHINA 55 6.1.1 Overview of actors and their activity within the supply-chain 55 6.1.2 Turbine manufacturing companies in China 59 6.1.3 Offshore wind farm development life-cycle 62 6.1.4 Offshore wind turbines - The commercially available models 66 6.1.5 Wind farm database (China UK Denmark Germany) 71 6.1.5.1 China 71 6.1.5.2 UK 100 6.1.5.3 Denmark 184 6.1.5.4 Germany 194 Ⅶ OFFSHORE WIND POWER RESEARCH CONCLUSIONS 240

Tables and Figures Table 2009-2010 China Germany UK Denmark etc 12 Countries Offshore Wind Power New and Cumulative Installed Capacity (MW) 1 Figure 2011 UK Germany Denmark China etc 10 Countries Operating Under Construction Authorised Submitted Concept Offshore Wind Power Capacity and Total Capacity (MW) 2 Figure 1985-2010 Offshore Wind Turbine Development Trend (0.5MW-10MW) 10 Figure Offshore Wind Turbine (Direct Drive) Structure 12 Table The major global offshore wind turbine manufacturers (Sinovel Vestas etc 9 manufacturers ) QYResearch Mr. Zhangdong sales@qyresearch.com 13811796901 8610-82945717

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and product Specifications list 13 Figure 1995-2010 EU Wind Turbine New Installed and Cumulative Installed Capacity (MW) and Growth Rate 17 Figure 2010 EU Germany etc 7 Major Countries Wind Turbine New Installed Capacity (MW) and Market Share 18 Figure 2010 EU Germany etc 10 Major Countries Wind Turbine Cumulative Installed Capacity (MW) and Market Share 19 Figure 2010 UK Denmark Belgium Germany Offshore Wind Turbine New Installed Capacity(MW) and Market Share 20 Figure 2000-2010 EU Onshore Offshore Wind Turbine New Installed Capacity (MW) and Market Share 20 Figure 2010 UK Denmark etc 8 EU Countries Offshore Wind Turbine Cumulative Installed Capacity (MW) and Market Share 21 Figure Development Status of Northern Europe Offshore Wind Power Cable 24 Figure 2010 and 2020 EU Onshore and Offshore Wind Turbine New Installed Capacity (MW) 26 Table Germany UK Italy New Offshore Wind Farm Project to be completed in 2011 26 Table 1991-2010 EU(EK DK NL BEL SWE GER FIN IRL) Offshore Wind Turbine Cumulative Installed Capacity (MW) and Total EU Cumulative Installed Capacity (MW) 27 Table UK GE FR NL ES IR DE IT GR SE Malta PT 12 Countries 2020 Offshore and Onshore Wind Turbine Cumulative Installed Capacity Target (MW) and Market Share 27 Table Offshore Wind Farm Cost (Euro/MW) and Market Share (%) 28 Table Offshore Wind Turbine Foundation Installation Grid Connection Others Cost (Euro/KW) by Different Distance(0-10 10-20 20-30 30-40 40-50 50-100 100-200 >200Km) 29 Table Offshore Wind Turbine Foundation Installation Grid Connection Others Cost (Euro/KW) by Different Water Depth(10-20 20-30 30-40 40-50 m) 29 Figure Offshore wind related policy mechanisms for renewable energy in China during 2010 33 Figure Offshore wind farm general layout 38 Figure Offshore Wind Turbine Gravitation construction (suitable for little applications in shallow waters) Flow 38 Figure Offshore Wind Turbine Tripod construction (exploitable in medium depth waters and on hard floors) Flow 39 Table Turbine costs (M€/MW) of UK wind farms 42 Table UK IRL USA Four Offshore Wind Farm Foundation cost (K€) – comparison of different measures for developed projects 44 Table Submarine MV cable manufacturing cost (k€/km) By Cable Section (mm2) 45 Table Cable transport and installation cost (k€/km) 45 Table HV Bus-bar and switchgear cost [k€] 46 Table Onshore HV cables and lines cost (k€/km) 47 Figure Model wind farm layout (150 MW; 50x3-MW) 49 Table 150MW Offshore Wind Farm Cost breakdown (Turbine Foundation Collection System Transmission System SCADA etc (K€)) of total investment cost of the model wind farm in radial design of China Shanghai Donghai Bridge Demonstration Project 49 Table 150MW Offshore Wind Farm Investment cost (K€) of the model wind farm in different QYResearch Mr. Zhangdong sales@qyresearch.com 13811796901 8610-82945717

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2011 Deep Research Report on EU and China Offshore Wind Power Industry

shore distance and sea depth (Distance3-10KM Sea Depth10-25m) 50 Figure 150MW Offshore Wind Farm Investment costs (Kâ‚Ź) for increasing installed power at different voltage levels [150 230KV] 50 Table China Shanghai Donghai Bridge Offshore Wind Farm General Information (Capacity Turbine Supplier Developer etc) 51 Figure 2010-2036 Shanghai Donghai Bridge returns on investment (Million RMB) 54 Table Offshore Wind Supply Chain (Turbine Control System Wind Test Strategic and Policy Investors Construction Monitoring Energy Assessment Operator Post Construction Services etc) and Operation Management Network in China 55 Table China Major Offshore Wind Turbine Manufacturers (Sinovel Goldwind etc) Information List 60 Table Offshore Wind Farm Project Development Life Cycle62 Table Global 47 Offshore Wind Turbine Models Product Specifications (Power Cut in Wind Speed Rotor Blade Tower Length) List 66 Table China Offshore Wind Farm Generating Power (4 Farms) and Under Construction (8 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 71 Table China Offshore Wind Farm Consent Authorised (6 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 79 Table China Offshore Wind Farm Consent Application Submitted (9 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 81 Table China Offshore Wind Farm Concept/Early Planning (55 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 85 Table UK Offshore Wind Farm Generating Power (14 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 100 Table UK Offshore Wind Farm Under Construction (2 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 138 Table UK Offshore Wind Farm Consent Authorised (7 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 143 Table UK Offshore Wind Farm Consent Application Submitted (6 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 152 Table UK Offshore Wind Farm Concept/Early Planning (38 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 157 Table Denmark Offshore Wind Farm Generating Power (12 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 184 Table Denmark Offshore Wind Farm Consent Authorised (2 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 190 Table Denmark Offshore Wind Farm Concept/Early Planning (5 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 192 Table Germany Offshore Wind Farm Generating Power (5 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 194 QYResearch Mr. Zhangdong sales@qyresearch.com 13811796901 8610-82945717

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2011 Deep Research Report on EU and China Offshore Wind Power Industry

Table Germany Offshore Wind Farm Under Construction (1 Farm) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 197 Table Germany Offshore Wind Farm Consent Authorised (18 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 198 Table Germany Offshore Wind Farm Consent Application Submitted (56 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 213 Table Germany Offshore Wind Farm Concept/Early Planning (15 Farms) Capacity (MW) Turbine Model Rotor Diameter Water Depth Distance Project Cost Operators etc Information List 235 Figure 2009-2015 China Offshore Wind Turbine New Installed Capacity (MW) and Growth Rate 241 Figure 2009-2015 China Offshore Wind Turbine Cumulative Installed Capacity (MW) and Growth Rate 242 Figure 2009-2015 China Wind Turbine (Offshore+Onshore) New Installed Capacity (MW) and Growth Rate 243 Figure 2009-2015 China Wind Turbine (Offshore+Onshore) Cumulative Installed Capacity (MW) and Growth Rate 244 Table 2009-2015 China Offshore Onshore Wind Turbine New and Cumulative Installed Capacity (MW) List 245 Table 2009-2015 China Offshore Onshore Wind Turbine New and Cumulative Installed Capacity Market Share 245 Figure 2009-2015 Global Offshore Wind Turbine New Installed Capacity (MW) and Growth Rate 247 Figure 2009-2015 Global Offshore Wind Turbine Cumulative Installed Capacity (MW) and Growth Rate 248 Figure 2009-2015 Global Wind Turbine (Offshore+Onshore) New Installed Capacity (MW) and Growth Rate 249 Figure 2009-2015 Global Wind Turbine (Offshore+Onshore) Cumulative Installed Capacity (MW) and Growth Rate 250 Table 2009-2015 Global Offshore Onshore Wind Turbine New and Cumulative Installed Capacity (MW) List 251 Table 2009-2015 Global Offshore Onshore Wind Turbine New and Cumulative Installed Capacity Market Share 251 Table 2009-2015 China Global Offshore Wind Turbine New Installed Capacity (MW) and China Proportion in Global Market 252 Table 2009-2015 China Global Offshore Wind Turbine Cumulative Installed Capacity (MW) and China Proportion in Global Market 252 Table 2009-2015 China Offshore Turbine Price Installation Cost (RMB/KW) and Their Market Share 253 Table 2009-2015 China Onshore Turbine Price Installation Cost (RMB/KW) and Their Market Share 253 Table 2009-2015 China Offshore Wind Turbine Price and Onshore Wind Tutrbine Price (RMB/KW) and Comparison Analysis 254 QYResearch Mr. Zhangdong sales@qyresearch.com 13811796901 8610-82945717

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2011 Deep Research Report on EU and China Offshore Wind Power Industry

Table 2009-2015 Global Offshore Turbine Price Installation Cost (€/KW) and Their Market Share 255 Table 2009-2015 Global Onshore Turbine Price Installation Cost (€/KW) and Their Market Share 255 Table 2009-2015 Global Offshore Wind Turbine Price and Onshore Wind Tutrbine Price (€/KW) and Comparison Analysis 256 Table 2009-2015 Sinovel Goldwind Shanghai Electric etc China local Offshore Wind Turbine Suppliers New Installed Capacity (MW) and Market Share 256

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