1. E.I. Konstantinidis, D.G. Kompolias and P.N. Botsaris Democritus University of Thrace School of Engineering Department of Production Engineering & Management Faculty of Materials, Processes and Engineering Mechanical Design Laboratory 7 th International Scientific Conference on Energy and Climate Change 08-10 October 2014, Athens, Hellas

2. About this work 1/28 Scope: Siting and planning of an offshore wind farm near Samothraki island Cost estimation of the project Viability analysis of the investment

3. Agenda 2/28 1 2 3 About this work Introductory notes Siting and planning 4 Cost estimation of the project 5 Viability analysis 6 Concluding remarks

4. Introductory notes 3/28 Global wind power capacity: 318.510MW

5. 4/28 Wind power capacity installed in Greece: 1.865MW* *No offshore wind farms have been installed Introductory notes

6. 5/28 Average offshore wind speed at 90 m height by NREL (2006, 2008, 2009) The wind resource graph was created using data from the National Oceanic and Atmospheric Administration (NOAA) which is hosted through the International Renewable Energy Agency (IRENA) by an agreement with NREL Introductory notes

7. 6/28 Geographic profile Siting and planning

8. 7/28 Study area of the offshore wind farm near Samothraki ABCD 40°31'06"Ν40°32'51"Ν 40°31'06"Ν 25°36'07"Ε 25°40'48"Ε Siting and planning

9. 6/31 Wind rose of the study area 8/28 Siting and planning

10. Primary layout 9/28 Siting and planning

11. Visual impact Projection of the wind turbine at the observer’s location 10/28 Siting and planning

12. Final layout of the wind turbines 21/28 Siting and planning

13. Wiring of the offshore wind farm 12/28 Siting and planning

14. Final data of the study area Offshore wind farm data Total installed powerMW100 Total number of wind turbines 20 Type of foundation Jacket Extend of interventionkm 2 20 Closest distance of the wind turbine from the shoreline km5.505 Longer distance of the wind turbine from the shoreline km7,8 Nearest port Kamariotissa Distance to the nearest port nautical miles (nm) 9 Interface system Line cables 20kV, cables HVAC 150kV (terrestrial and submarine), offshore substation 13/28 Siting and planning

15. The AEP was calculated by using the RETScreen®International software. The National Renewable Energy Laboratory of U.S.A has developed a fairly reliable model for estimating the cost of the wind turbines based on economic indicators such as the Producer Price Indices (PPI) and based also on the WindPACT studies. 14/28 Cost estimation of the project

16. INITIAL CAPITAL COST ROTOR, NACELLE/ DRIVE TRAIN, TOWER CONTROL, SAFETY SYSTEM, CM BALANCE OF SYSTEM o Foundation/support structure o Transportation o Civil work o Assembly and installation o Electrical interface/connections o Engineering permits ADDITIONAL COSTS o Marinization o Port and staging equipment o Personal access equipment o Scour protection o Surety bond o Offshore warranty premium 15/28 Cost estimation of the project

17. ANNUAL OPERATIONAL EXPENDITURE (OPEX) LEVELISED REPLACEMENT COST (LRC) LEVELISED OPERATION AND MAINTENANCE COST (O&M) LAND LEASE COST (BLC) 16/28 Cost estimation of the project

18. Cost estimation per wind turbine of RE Power (Senvion)-5M Items / description of expenditure Costs 2012(€) Rotor1.131.940 Nacelle/Drive2.544.561 Safety & Monitoring System57.812 Tower1.626.603 Marinization (13.50% of the cost of the system of the wind turbine & Tower)723.724 (WIND) TURBINE CAPITAL COST (TCC)6.084.640 Supply of foundation structure Jacket102.237 Installation of foundation structure Jacket4.758.456 Installation of the wind turbines599.334 Special machinery & equipment121.733 Permits, designs and measurements of meteorological conditions174.430 Equipment for the safety of accessibility56.572 Protection against corrosion.329.634 Transport of the wind turbines1.512.251 Wiring684.256 Offshore substation (cost per wind turbine)700.000 Guarantees (3.0% of the initial capital cost– ICC)453.706 BALANCE OF SYSTEM (BOS) COST9.492.609 Guarantees – Offshore warranty premium (15.00% of the cost of the system of the wind turbine & Tower) 804.137 INITIAL CAPITAL COST (ICC)16.381.386 COST PER MW3.276.277 Levelized Replacement Cost (LRC)80.143 O&M Cost307.506 Bottom Lease Cost16.859 ANNUAL OPERATIONAL EXPENDITURE404.508 Cost estimation of the project

19. Source: EWEA The CAPEX for wind offshore in 2011 was 2.260 - 4.300 €/kW 18/28 Cost estimation of the project

20. Offshore Wind Farm of Samothraki Installed Power (MW) Number of wind turbines Total Initial Costs (€) Cost (€/MW) Power Factor (%) Electricity at the Network (MWh) 1002020327.627.7203.276.27737,2326.137 Price of the electricity sold (€/MWh) Inflation price (%) Annual Operational Expenditure (€) Annual Operational Expenditure (€/MW) Discount rate (%) Project lifetime (yr.) 108,302,008.090.16080.9016,56,525 19/28 Viability analysis

21. Economic parametersEconomic Sustainability Incentives & Grants % 0 Internal rate of return before tax-shares % 6,8 Debt € 131.051.088 IRR after tax- shares % 4,4 Lending rate % 8,0 Debt period Year 10 Net Present Value € -50.480.053 Debt Payments €/ year 19.530.477 Annual savings of the lifecycle €/ year -4.138.430 Tax rate of income impact % 20,0 Benefit-Cost Ratio [-] 0,74 Depreciation rate % 10,0 Energy production cost €/MWh 122,94 20/28 Viability analysis

22. 21/28 Viability analysis

23. 22/28 Viability analysis

24. 23/28 Viability analysis

25. Electricity export rate (€/MWh) Incentives/ Grants (+% Total initial costs) or (+%Electricity sold price) Cost of Energy (€/MWh) Benefit- Cost Ratio After- tax IRR (%) Net Present Value (€) Payback period of the investment (years) 108,300122,940,744,4-50,480,05316,8 108,30+20% (65.525.544€)103,941,087,315,045,49113,9 108,30+40% (131.051.088€) 84,931,4113,280,571,03511,1 119,13(108,30€/MWh +10%)122,940,936,0-13.142.85114,8 129,96 140,79 (108,30€/MWh +20%) (108,30€/MWh +30%) 122,94 1,12 1,31 7,5 8,9 24.194.351 61.531.553 13,3 12,1 In 2012 the LCoE for offshore wind farms in Europe was 0,11-0,18 €/kWh 24/28 Viability analysis

26. 25/28 Concluding remarks  Even though in the greater Samothraki sea area there is a notable offshore wind potential at low depths and at relatively short distances from the shore, these facts are not a sufficient condition for the development of offshore wind farms in this area.  The project could be viable only when there is a significant subsidy of the investment by the state.  Even though in the greater Samothraki sea area there is a notable offshore wind potential at low depths and at relatively short distances from the shore, these facts are not a sufficient condition for the development of offshore wind farms in this area.  The project could be viable only when there is a significant subsidy of the investment by the state.

27. 26/28 Future work  Further research using wind data received by local meteorological stations which will be installed in the proposed area is suggested.  Research in areas within the designed Greek Exclusive Economic Zone (EEZ) is also suggested, as the declaration of the EEZ will lead to larger offshore wind farms beyond 6 nautical miles as a result of the elimination of the visual impact.  Further research using wind data received by local meteorological stations which will be installed in the proposed area is suggested.  Research in areas within the designed Greek Exclusive Economic Zone (EEZ) is also suggested, as the declaration of the EEZ will lead to larger offshore wind farms beyond 6 nautical miles as a result of the elimination of the visual impact.

28. 27/28 Acknowledgements  The National Observatory of Athens and the Hellenic Centre for Marine Research are kindly acknowledged for providing data used in this study.  The European Environment Agency (EEA) and the European Marine Observation and Data Network (EMODNet) are kindly acknowledged for providing map services.  The “Natural Resources Canada” and the RETScreen International are kindly acknowledged for the use of RETScreen® International software  The National Observatory of Athens and the Hellenic Centre for Marine Research are kindly acknowledged for providing data used in this study.  The European Environment Agency (EEA) and the European Marine Observation and Data Network (EMODNet) are kindly acknowledged for providing map services.  The “Natural Resources Canada” and the RETScreen International are kindly acknowledged for the use of RETScreen® International software

29. 28/28 End of presentation Thank you for your attention E.I. Konstantinidis, D.G.Kompolias, P.N. Botsaris Democritus University of Thrace, School of Engineering Department of Production Engineering and Management Faculty of Materials, Processes and Engineering Central University Campus, Building I, Xanthi, 67100, Thrace, Greece Phone/fax: +302541079878 E-mails: ekonstan@pme.duth.gr,ekonstan@pme.duth.gr dimikobo@yahoo.grdimikobo@yahoo.gr, panmpots@pme.duth.gr Web: http://medilab.pme.duth.grhttp://medilab.pme.duth.gr