1. Deploying marine renewable energy in the EU A Celtic perspective on interconnection Adam Bruce Global Head of Corporate Affairs, Mainstream Renewable Power Chairman, BWEA

2. The last EU Energy crunch 1970s oil shock Europe’s answer – North Sea oil and gas – or Nuclear

3. Today...

4. Security of Supply: Sources of Natural Gas 2010 Norway Russia Neitherlands Algeria Egypt Libya Romania Deutschland Ukraine Azerbaijan Kazhakstan Turkeyenistan Uzbekistanstan Great Britain France 1.000 km 2.000 km 3.000 km

5. Security of Supply: Sources of Natural Gas 2025 Russia Turkeyenistan 1.000 km 2.000 km 3.000 km Norway

6. The challenge for today 2020s fossil fuel shock EU answer – North Sea wind and marine energy Challenge for today – how to build for that tomorrow

7. Europe’s marine energy resource Richest resource in the world Sufficient to provide all of EU’s electricity requirements Technically efficient and commercial competitive to exploit Predictable fuel cost Indigenous Independent of external political influences Clean

8. Rising to the challenge Climate change: large scale CO2 free generation Security of supply: indigenous and sustainable energy source Economic competitiveness: develop new EU energy market  Marine energy will have to deliver most of the bulk renewable electricity required for 2020 A solution: Large-scale interconnected grid for marine renewables The 2020 Imperative

9. Offshore grids – not new

10. Interconnection “The value of an offshore grid...lies in its contribution for increased security of supply, its function for the aggregation of dispatch of power from offshore wind farms, and in its role as a facilitator for power exchange and trade between regions and power systems.” A North Sea Electricity Grid Revolution 2007 Greenpeace-3E

11. Interconnection – the benefits Source: A North Sea Electricity Grid Revolution 2007 Greenpeace-3E

12. Celtic Connections Irish, UK and Scottish governments all looking to increase renewable generation Existing interconnection at capacity New onshore grid underway But – offshore connection required A Celtic-Nordic Connection? –Offshore wind –Wave & Tidal –Hydro Source: Imera / New Energy Focus

13. A M P S I N N O V A T I O N E F F E C T I V E N E S S S E P T E M B E R 2 0 0 7 Necessary pre-conditions for regional effectiveness

14. Challenges ahead The economics –the accelerated development of an offshore grid will require a Europe wide support scheme (EU Grid Incentive) The technology –VSC HVDC - very low electrical losses and meshed connections But - development work required to scale up VSC HVDC technology –a common set of standards must be developed for connecting HVDC platforms (avoid VHS/Betamax) The regulation –Create a European operator who will run (not own) the network interconnectors (The “Airbus” approach)

15. Conclusion  Celtic-Nordic-EU interconnection is Scotland's route to market for its renewable future  and its safety net against fossil fuel volatility.