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Welcome to our latest newsletter
Momentum in offshore wind is increasing and we’re enjoying it. The recent German bids break new ground, not in the cost of energy, but this time in living with the uncertainty of the open energy market. The results of next GW or so of CfD capacity to be auctioned in the UK this summer will be the next interesting milestone for the industry.
Last December in my Wind Power Monthly thought piece, I said that there “will be a rapid expansion in the number of countries interested in establishing an offshore wind industry. This is as they see that offshore wind is not just a curiosity in northern Europe, but in many cases the most scalable, low-carbon generation source that can be built close to population centres.”
We are certainly seeing that increase on multiple continents – currently, we are really busy in the US, starting new work in Asia and getting drawn into projects elsewhere. It’s great to be making a difference to energy leaders, great and small.
Bruce Valpy
Managing Director
BVG Associates
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We're recruiting!
We’re looking for a Senior Associate to help win, manage and deliver an increasing pipeline of opportunities in the area of levelised cost of energy modelling and analysis.
The focus will be on offshore wind but will also cover other renewable energy projects and technologies. LCOE analysis is a successful and growing area for us, where we have supported a range of leading project developers, suppliers and enabling organisations.
Full details, including how to apply are on our website. The deadline for applications is 9 June.
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All-Energy 2017
Our team will be at All-Energy 2017 and we’re expecting a busy two days.
Neil Douglas will be chairing the ‘Offshore wind trajectory’ session on 10 May including delivering a highly topical presentation on ‘Competitive wind auctions 2016-17: What can we learn about the new offshore wind LCOE trajectory?’ followed by a Q&A. He’ll also be taking part in a panel discussion entitled ‘The farther back you can look, the farther forward you are likely to see’ in the 'Finance and Funding' session on the same day.
Alan Duncan will be taking part in an oil and gas diversification session on ‘How the oil and gas industry is adapting to become low carbon’s new best friend’ on 10 May.
On 11 May, Mike Blanch will be chairing the ‘Offshore Wind 5: Innovation’ session as well as presenting on offshore wind innovation.
The rest of our team attending All-Energy 2017 will be at our stand as part of the Invest in Fife pavilion (stand H20) on the exhibition floor or in face to face meetings with clients old and new. If you'd like to meet the team at All-Energy, send us an email.
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Industrial strategy and UK content for offshore wind
In his latest blog, Alun Roberts highlights the need for a consistent and robust approach to measure UK content, not just for offshore wind but across all industries. This becomes especially important as the UK develops a series of industrial strategies.
In his blog, Alun points out that without consistency across the electricity generation sector, the Government may base strategic investment decisions on unfair comparisons and set unrealistic targets for the level of local content.
You can read the blog in full on our website.
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Now is the time for onshore wind operators to be creative and hungry
The market for the management of operational onshore wind farm assets continues to evolve apace. While real progress is being made, an observer from outside the onshore wind industry may well express some surprise at the issues that continue to dog onshore wind.
Generally, inefficient approaches, incomplete data and poor technical knowledge are more common than they should be in a mature industry.
Portfolio sizes, nature of ownership and differences in approach between markets have lead to contrasting approaches, corporate inertia and relatively little best practice sharing.
More mid-size and smaller players need to work to optimise returns by learning from the larger operators and for owners to demand more disciplined approaches to asset management.
Neil Douglas has produced a two part blog (you can find part 1 here and part 2 here), that highlights the challenges in asset management of mid-sized and smaller onshore wind farms and how those challenges can be overcome.
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Job roles in offshore wind
We recently produced a 'Job Roles in Offshore Wind' guide in partnership with Green Port Growth.
The guide focuses on the likely job opportunities that could be fulfilled by someone living in Hull and East Riding of Yorkshire. It will be used by professionals, careers advisors and school-leavers to understand the wide variety of job roles, from a marine mammal observer to a cable jointer, and from a UXO diver to a rope access and blade repair technician. It also provides practical tips on how to start a career in offshore wind.
In preparing the guide, we looked at almost 200 functions across the supply chain. We identified the 36 highest priority functions to Hull and East Riding of Yorkshire in terms of the number of job roles that could be created, the significance of the worker location and current local supply chain capability. Our approach can be used for different industries, regions or even countries.
Clare Davies, our lead on the project, has written a blog about producing the guide.
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Funding competition: energy catalyst round 5
The UK’s Department for International Development, the Department for Business, Energy & Industrial Strategy and the Engineering and Physical Sciences Research Council have launched a GBP13million Energy Catalyst competition to support highly innovative, market-focused energy solutions in any technology or sector or international market. Proposals must address all 3 elements of the energy trilemma of cost, emissions and security of supply.
The competition is open to any UK organisation and participants may also include international partners. Universities and small and medium-sized enterprises (SMEs) are encouraged to apply. Research organisations may lead early-stage feasibility projects.
Full details can be found on the UK Government’s website.
Successful projects will need to include strong, up-to-date awareness of market activity, robust focus on cost of energy impact and consideration of the evolving route to market. We provide all of these to a range of clients. If you are interested in involving us in your project, including helping you to write a good bid, please email Mike Blanch.
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Challenges and opportunities in UK's next CfD
Offshore Wind Journal recently published an article by Chris Willow, about the UK's next contracts for difference (CfD) auctions.
In the article, Chris provides details of the second round of UK CfD auctions, market structure and likely timescales. He then goes on to comment that the main participants are expected to be Dong Energy (Hornsea 2), EDPR (Moray Firth) and innogy and Statkraft (Triton Knoll). No other big offshore wind projects are expected to be involved, given the government’s requirement for developers to have all the necessary consents in place before they apply.
The big unknown is the strike price the winning developer(s) will need to bid to win. Having seen a string of impressively low results from the German, Dutch and Danish auctions, expectations are that bids will need to be extremely competitive.
Chris then goes on to examine the likely long term implications of this CfD round including impacts on technology, pricing and the international progress of offshore wind.
You can read the article in full on the Offshore Wind Journal's website.
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Control systems for wave energy generation: apply for funding
Wave Energy Scotland (WES) is inviting organisations to apply for up to GBP47,000 for feasibility studies into developing advanced control systems for cost-effective wave energy generation technology. This is the first of 3 stages in the WES control systems programme.
Up to 100% of project costs are available via a research and development contract. WES will invest further funding in successful projects which progress to design, development and demonstration stages. You can find full details, including how to apply, on the Wave Energy Scotland website.
As with Funding competition: energy catalyst round 5, if you are interested in involving us in your project, including helping you to write a good bid, please email Mike Blanch.
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