1. Creu llwyddiant gyda’n gilydd dros Gymru Creating success together for Wales Developments in Renewable Energy In Wales Brian Barrows Head of WDA Energy Office.

2. Agenda  The Role of the WDA Energy Office  Review of Welsh Assembly Government Energy Policy  Key Elements of Welsh Renewable Energy Policy  Progress in Renewable Development in Wales To Date  Delivery of 2010 Targets within Technical Advisory Note 8 Strategic Search Area’s  Emphasis on Marine Technologies in meeting 2020 targets  Summary

3. WDA Energy Office  Facilitation support for all Welsh energy projects in accordance with Welsh Assembly Government Policy  Currently in excess of €6.5B of new projects across the energy spectrum in Wales  Energy Policy is a high priority for Welsh Assembly Government with emphasis on exemplar clean energy projects  Renewables are a key aspect of WAG’s commitment to contribute significantly to UK’s diversity and security of supply and to significantly reduce carbon emissions  Wind has a major role in delivering our 2010 target

4. Energy Office Team  Brian Barrows Head of Energy Office telephone: 01792 224519, Mobile: 07788 185422, Email: brian.barrows@wda.co.uk  Iestyn Morgan Renewable Energy Manager – Telephone: 01792 224531, Mobile 07919 682898 Email wda.co.uk  Closely Supported in Benalux & Scandanavia by Nick Naysmith of our International Division telephone: 00 31 2031 61621 Email: nick.naysmith@wda.co.uk  There are 3 Additional Post’s in recruitment now

5. Welsh Assembly Government Energy Policy  Our Economic Development &Transport Minister Andrew Davies set out the policy framework in his opening speech at BWEA 27 in Cardiff last week.  The key topics are defined in “The Energy Route Map”  Public Consultation for this was launched in July 2005  This sets out a vision for Wales as a “Global Showcase for Clean Energy ”

6. The Energy Route Map  Emphasis on low carbon, competitive energy supplies  With the following key strands…  Renewable targets to 2010 & 2020  Greater uptake of energy efficiency  Cleaner, more efficient fossil fuel plants  Energy infrastructure improvements  Measurable CO 2 reductions by 2020  Development of a Welsh Energy Research Centre

7. Renewable Energy Targets  4TWh by 2010 – equates to 1-1.2GWe of new capacity  800MWe by large scale onshore wind development within designated “Strategic Search Area’s”  Balance of 200 MWe from offshore wind, biomass and other technologies already on target for delivery  7TWh by 2020 …  This aims to achieve an increasing contribution from marine renewable technologies

8. Energy In Welsh Economic Development  Very high on the political agenda  2010 Renewable target has a Capex value of circa €1.4B with up to €2.4B to 2020  High degree of emphasis on proactive building of public support for wind  Supply chains, job creations and community benefit an essential high priority underpinning this …  Environmentally sensitive development, careful management of the planning process, good stakeholder relationships, and community support is vital

9. Planning Policy Wales TAN 8  Technical Advisory Note 8 is the key planning instrument for delivery of wind targets to 2010 in Wales  There are 7 Strategic Search Area’s identified in TAN 8  Their precise locations and designated capacities were defined by Arrup in a report for Welsh Assembly Government  A capacity evaluation was subsequently conducted by Garrad Hassan  The final boundaries and capacities were adjusted to reflect selected conclusions by Garrad Hassan and are summarised in the following slides

10. Tan 8 Planning Policy Wales Strategic Search Areas

11. A Clocaenog Forest -140MW B Carno North - 290MW

12. C Newtown South - 70MW D Nant-y-Moch - 140MW

13. E Pontardawe -100MW F Coed Morgannwg -290MW

14. G Brechfa Forest - 90MWe A Clocaenog Forest 140MW B Carno North 290MW C Newtown South 70MW DNant-y-Moch140MW E Pontardawe 100MW F Coed Morgannwg 290MW G Brechfa Forest 90MW Total Designated Capacity 1120MW Designated Capacity MWe

15. Garrad Hassan Study  The document has now been made available to WAG for inclusion on their Website  It is an interim version with an appendix amending the NATS risk assessment as a result of a later definitive report by NATS for WAG  A final version integrating the implication of the revised NATS risk is in preparation to replace this shortly  The report identifies an initial technical potential of 2104 MWe capacity  In considering constraints particularly relevant to large scale developments and in conjunction with verified NATS risk, this could be reduced to 1136 MWe

16. Existing Welsh Renewable Capacity. Renewable Technology Total Installed Capacity MWe Onshore Wind Farms 232 Off Shore Wind Farms60 Hydro generation 161.1 Landfill gas greater than 50 kW24.6 Operational Capacity for PV0.46 Total Renewable Capacity (MWe)478.16

17. Progress to 2010  Wales is moving quickly towards 750MWe of installed renewable capacity within the near future  535MWe from wind, (260MWe Offshore wind)  This equates to half the June 2005 UK 1GWe wind milestone  Priorities are now for the delivery of the 800 MWe within the 7 Strategic Search Area’s (SSA’s)  There are a number of extremely challenging hurdles to overcome to enable Wales to meet this objective  A successful TAN 8 will result in a total of 1.55GWe of installed RE capacity by 2010 with 1.235 GWe from Wind

18. Projects Currently In Development Offshore WindRhyl Flats100 Offshore WindScarweather100 Onshore WindFfynnon Oer20.8 Onshore WindTir Mostyn & Foel Goech21.25 Onshore Wind Swansea Docks Community Project0.25 Biomas Generation Western Log Ltd Margam12 Biomas Generation GREC Llynfi power Station10 Biomas CHPBluestone2.5 Total Capacity267 These have planning consent, are under development or construction. Wales in on target to meet the 200MWe of it’s 2010 target set for Offshore Wind, Biomass and other RE technologies.

19. The Challenges in Developing the SSA’s  Timescales are challenging for delivery by 2010  Project development timescales are typically 4-5 years  Turbine Delivery Lead times circa 18 months at present  Public presentation requires a highly professional approach to win hearts & minds  Development of the Forestry Commission Lease process and maximising the full potential for FC land  Grid issues require strong developer commitment to enable new 400KV infrastructure to be built  Long lead time and planning risk on new 400KV lines

20. Developing in the Forests  57% of GH’s base case turbines are within Forest land  FC land within SSA’s will be offered by tender for lease for development for each SSA  This process is expected to take one more year to complete  This poses serious technical challenges due to wind shear  This has implications for turbine warranties and the tendering process  Detailed wind measurements will be required to determine appropriate mitigating measures  A key determinant for award of these leases will be maximisation of benefit to the Welsh Economy, local supply chains are key

21. Connecting the New Capacity  Scottish Power Infrastructure has considered options for a new 400 KV Mid Wales Grid Connection Point  This will optimise the distance for new 132KV spur lines to the SSA’s  Discussion are ongoing with NGT, WAG and WDA on this topic  The WPD network in South Wales requires a second 400KV Grid Connection Point in South West Wales  A Mid Wales outline Environmental Routing assessment study proposal is in development  The WDA has been asked to coordinate serious developer interest which for OFGEM to sanction this

22. Working in Partnership to Deliver  The Welsh Assembly Government EDTM Andrew Davies has emphasised to BWEA the need for a more effective and coordinated hearts and minds campaign to improve public support of wind in Wales  The Minister has requested the setting up of an Industry Forum to coordinate and take forward TAN 8 within Wales  Such a working group should have a limited number of sub groups dealing with all the key issues including but not limited to communications and Grid Infrastructure  At BWEA 27Conferance last week BWEA’s Board agreed that it should participate in such a working group in Wales

23. Towards 2020.  With 1000Km of coastline and good wind, wave & tidal resources Marine Renewables are a priority for Wales  Offshore Wind is now established off the Welsh coast with North Hoyle - UK’s first Round 1 project operational (60MWe)  2 Further Round 1 Offshore wind farms moving to construction by 2008, (circa 200MWe)  One major Round 2 Project Gwynt Y Mor in study (750MWe)  2 advanced Wave & Tidal commercial demonstration projects under study for development before 2010  These will be closely underpinned by the Welsh Energy Research Centre to reduce time to market for these  Other emerging marine technologies are looking at Wales

24. MCT Lynmouth Project  Established proof of concept  Identifiable levels of risk  Potential to reduce time to market via close R&D back up  Establish a strong indigenous new industry and …  Contribute substantially to 2020 Renewable Targets Marine Commercial Demonstration Projects Wave Dragon Demonstrator Project

25. Tidal Stream technology Marine Current Turbines Commercial demonstration Project MCT Tidal Stream Technology

26. Wave Dragon Wave Energy Device Over Topping Low Head Hydro Commercial Demonstration Project

27. Summary.  Wales is on schedule to deliver the “out of area” 200MWe of its 2010 target  Delivery of its 800MW Target within the TAN 8 SSA’s by 2010 is the over riding priority now  This has a Capex worth circa €1.4B over the next 5 years and local content will play an increasing part of this through both the Forestry Leasing process and the large scale offshore project delivery  Marine Renewables will play an increasing role in Wales in the future  Offshore wind already playing a significant pioneering role and a potential Capex of up to €2.1B within 10 years

28. Summary Cont.  Emerging wave and tidal technologies will have a significant role in meeting our 2020 targets  These will be closely supported to cut time to market via the Welsh Energy Research Centre  Delivery of a total of 1.55GWe of installed RE Capacity 1.235 GWe derived from wind b 2010…  With a substantial development pipeline to 2020 ahead of the game!  Wales is the place to business with a significant long term investment opportunity and ….  A potential Capex value of between €1.4B and €3.5B to 2020 for the Renewables Industry

29. Creu llwyddiant gyda’n gilydd dros Gymru Creating success together for Wales Implementation Of Welsh Renewable Energy Policy Brian Barrows Head of WDA Energy Office. This concludes my presentation, thank you all for listening.