6 december 2012 Cost reduction offshore wind conference Ernst van Zuijlen / Chris Westra 6 december 2012

6 december 2012 Target of the TKI Cost reduction by % Yearly Costs O&M Costs Depreciation Finance / risk WACC Capital 1/ Yearly Output Gross Output Losses Levelised costs / kWh COSTS OUTPUT COSTPRICE COSTS COSTPRICE

6 december 2012 Target Levelised costs offshore wind at 100 / MWh 2010: 166 /MWh 2020: 99 /MWh

6 december 2012 Actual average Capex (per MW) adapted from Greenacre et al. (2010).Greenacre et al. (2010) dssdsdsd

6 december 2012 Further cost increases Planning and consent procedure Building and operational Risk – Experiences (grout, gear boxes......) – Perception of risk Lack of standardisation Further at sea, deeper water

6 december 2012 Bigger, deeper, further

6 december 2012 UK findings (cost reduction; 1) Larger turbines with higher reliability and energy capture and lower operating costs. Increased competition in key supply markets

6 december 2012 Innovative turbines Norwegian Sway 10MW offshore wind turbine, the ST10. The company claimed an estimated 15-20% reduction in turbine cost, and a considerable reduction in cost per kWh produced.

6 december 2012 UK findings (cost reduction; 2) Economies of scale and standardisation (mass produced deeper water foundations. Optimisation of installation methods. Wind farm design en supplier involvement Reduced WACC!!

6 december 2012 The Dutch approach R&D: TKI / FLOW / programme

6 december 2012 Project Leeghwater A demonstration / pilot plant About 8 consortia x 2 6 MW PILOT PLANT ~100 MW DEMONSTRATION FARM ~200 MW Various consortia for test projects within the pilot plant (BOOT)

6 december 2012 Dutch cost reduction policy options Measures to be taken by the government: Socialisation of the offshore grid Long term stable policy Optimised regulatory framework Risk sharing (finance) More space available close to the shore (Hollandse kust)

6 december 2012 Spatial planning Hollandse Kust Option with minimal space Option with maximal space (2 Nautical miles (NM) and 5 NM from platforms) 2 oktober 2012 Aanwijzing HK en TNW concept ( 500 meter from shipning lanes

6 december 2012 NL Translation UK findings (Ecofys) All efforts needed: – R&D – Demonstration – Market development – Socialisation of grid costs – Policy optimisation – Reduction of finance costs

6 december 2012 A leading role for the Dutch? Support structures Transport, Installation & Logistics O&M Project development Port facilities

6 december 2012 Dutch contributions Of de DOT: Delft Offshore Turbine? 2B-Energy XEMC-DarwinD

6 december 2012 Dutch contributions Smart scour protection

6 december 2012 Dutch contributions Transfer systems for personnel and small components

6 december 2012 Dutch contributions Slip joint – (no grout, no transition piece)

6 december 2012 Dutch contributions Integrated design of foundation and tower

6 december

6 december 2012 Next goal: implementation *********** Amalia en Egmond Gemini 1 Start of implementation Pilot plant + Demofarm Q10 Gemini 2 Total MW (right) MW per year (left)