Siemens Wind Power A/S

Developing European Offshore Resources

PO.024

Developing European Offshore Resources - lessons from Siemens' 20 years of experience

Siemens Wind Power A/S has been a leader since the beginning of the
European Offshore wind industry, by providing reliable, proven
technology. With 20 years of experience in offshore wind turbine
technology and project execution, Siemens will also be a key player of
tomorrow's offshore market, when more European countries are
expected to install offshore wind power projects.

In the 20 years Siemens has been involved in the offshore wind power
industry, the technology and equipment has been successfully adapted to
the growing requirements due to the increase of project complexity, as
projects increase in size and are installed in waters farther from shore.
The key challenge in the next 10 years will be to overcome grid capacity,
grid flexibility, grid storage, financing and supply chain bottlenecks as the
offshore business will experience an immense ramp up period.

20 years of experience in project management - from Vindeby (5 MW project) to Greater Gabbard (500 MW project)
Vindeby, DK
o 11 x 0.45 MW (1991)

Lillgrund, SE
o 48 SWT-2.3-93 (2007)

Middelgrunden, DK
o 20 x SWT-2.0-76 (2000)

Burbo Banks, UK
o 25 x SWT-3.6-107 (2007)

Sams, DK
o 10 SWT-2.3-82 (2002)

Lynn / Inner Dowsing, UK

o 54 x SWT-3.6-107 (2008)

Experienced project management

Rnland, DK
o 4 SWT-2.3-93 (2002)

Gunfleet Sands, UK
o 48 x SWT-3.6-107 (2009)

Industrialization

Rdsand/Nysted, DK
o 72 SWT-2.3-82 (2003)

Rhyl Flats, UK
o 25 x SWT-3.6-107 (2009)

Frederikshavn, DK
o 1 SWT-2.3-82 (2003)

Hywind, NO
o 1 SWT-2.3-82 (2009)

Horns Rev II, DK

o 91 SWT-2.3-92 (2009)

Pori, FIN
o 1 SWT-2.3-101 (2010)

Rdsand II, DK
o 90 SWT-2.3-93 (2010)

Baltic I, DE
o 21 SWT-2.3-93 (2010)

Areas of Improvement
Own vessel and central harbor locations

World's
st
1 offshore
wind farm

World's 1st
offshore
wind farm w/
large turbines

World's largest
offshore
wind farm

World's largest
offshore
wind farm
at that time

World's largest
offshore
wind farm
ever contracted

1991

2000

2003

2009

2012

Vindeby

Middelgrunden

Nysted

Horns Rev II

London Array

5 MW

40 MW

166 MW

209 MW

630 MW

Benefit
Optimization of logistics and installation time
Optimized project execution with focus on safety

20 years of experience in wind turbine technology

20 years experience with
offshore projects

Development of Siemens' offshore product portfolio

Since 1991 Siemens Wind Power has

installed more than 650 wind turbines.
This track record of over 1.850 MW
installed gives Siemens the winning
margin for the future:

Areas of Improvement

SWT-3.0-101 DD
SWT-3.6-120
SWT-3.6-107
SWT-2.3-101
SWT-2.3-93
SWT-2.3-82 VS

Over the last 20 years being active in

offshore wind technology, Siemens
continuously refined and improved its
technology & processes.

SWT-2.3-82

Former product portfolio

Current product portfolio

SWT-3.0-101 DD:
Direct drive technology

Benefit

Offshore specific design

Integral blades
Full scale frequency converter
Standardized tower design
New foundation designs
Closed cooling system
Oil cooled transformers
Blast proof containers for transformers
Gearbox lubrication system
Inline oil filter
Direct Drive technology

Overall cleaner design, focus on safety and serviceability

Better resistance to lightning strikes and less maintenance costs
Optimization of grid capabilities and compensation equipment
Improved quality, safety, serviceability and weight
Optimization of tower / foundation interface. Design for deeper water
Minimization of corrosion as no access to salty air
Better resistance towards movements in the turbine structure
Decreased impact to towers if electrical failure occurs
Lubrication being led directly to the rotating planet wheels
Cleaner lubrication oil reduces risk of particle contamination
Less moving parts reduces complexity and need for maintenance

20 years of building up the offshore wind industry

Today's challenges

Standard tower & turbine design

Now it is crucial to optimize the design

of towers, foundations, installation
vessels & grid.
Siemens already improved its tower
and foundation features.
Moreover Siemens has influenced the
building of purpose oriented vessels for
years.

Offshore sites ...

Feature

Product description

Customer benefits

"Bracket less"
design

Platforms and ladder suspended from tower flanges

No welding of brackets leaves smooth internal wall

Decreases fatigue and weight

Clean ergonomic
internals design

New internal concept is "clean" design

Focus on safety, serviceability and ergonomics
Tower basement with 2 meter ceiling height

Extra maneuverability for

Complies with HSE standards

Lift extends from base to just below bedplate

Lift and ladder are separate units
In the event of power outage, lift can be released
manually

Saves maintenance time

Saves climbing equipment
Ensures safe lift operation

Lift and Ladder

Helihoist
Standard on all 3.6MW WTGs
Helicopter platform Designed to comply with local and national
requirements

... in deeper waters and at a larger distance to the

shore need new installation technology

Allow for easy and safe access

to the WTGs

New
foundations
types

We partner with major players to

develop new solutions

Bigger
installation
vessels

Existing and new shipping companies

show strong interest and plans for
bigger vessels, e.g. A2SEA

New grid
solutions like
HVDC plus

Together with the Siemens Energy

Transmission Division we offer
integrated solutions for grid
connections

Past

Present

Future

Vessel

Sea Jack

MV Resolution

NG9000

Speed

6 kn

9 kn

10-12 kn

Capacity

3 x 3.6MW

6 x 3.6MW

10-12 x 3.6MW

Installation time

18 hours

16 hours

< 16 hours

20 years of evolution in production costs per kW/h

Offshore wind farm capital cost evolution
Costs of offshore wind parcs has been growing in the last years
mainly due to higher installation and foundation costs which can
be partly from the installations farther offshore and in deeper
water depths. Yet, the main difference derives from the higher
capital and financing costs associated with the capital
investment needed and the perceived risk which turns into
higher interest rates and higher expectations on return on
equity.1)
A resarch study suggests that the capital cost of equity will
decrease around 40% from 2006 to 2025 due to technological
learning and scale economies.2)

Offshore wind farm capital cost split

4% 2%
6%
9%

9%

51%

Future Challenges
The future challenges are to reduce the levelized costs of
energy produced by offshore wind.

Turbines and ancillaries

Support Structures
Installation of Turbines and
Support Structures
Offshore Electrical Systems
Installation of Offshore
Electrical Systems
Surveying & Construction
Management
Insurance

This will be realized by continuing the industrialization and

standardization, as well as through improved designs of
balanced plant, foundations and electrical systems.

19%

1) Milborrow D. (September 2009) No Consensus on Offshore Costs. In: Windpower Monthly Special Report
2) Musial W., Butterfield S. (2004) Future for offshore wind energy in the United States: preprint.
In: EnergyOcean 2004.

Source: Garrad Hassan, January 2009

Applying our experience to future markets

European offshore trends

Drivers for offshore wind

Inhibitors for offshore wind

Est. cumulative offshore installation in Europe (GW)

EUROPE in 2020 (GW)

39 GW

Source: EER 2010

Denmark was the first country to install

an offshore wind farm in 1991 and was
the industry's leader with 425 MW
installed until 2008 when the UK took
over.
The UK has been the key market with
Germany coming into the game in 2012.
Additionally we see new markets as the
Netherlands, Ireland & France that will
deploy offshore wind and Siemens Wind
Power will leverage on experience to
serve these markets.

Abundance of wind resources

Transparent permitting process
Experienced permitting bodies
Governmental targets for renewable electricity
North Sea Grid Initiative
Growing electricity demand
Onshore wind project saturation incl. limited
repowering options
Public funding (R&D, financing, stimulus
package, grid connection cost assumption)
Long term commitment to remuneration
schemes (e.g. feed-in-tariffs, )

Limited grid capacity

Technical conditions
(e.g. water depths)
Uncertain Financial investments
Industry / supply chain bottlenecks

75GW

UK
DK
DE
NL
other

2.8

34%

1.7
0.5

2%

Source: EER 2010

39GW

1.4

1.5

12
3.2

20%

0.5

1.6

31%

8.6

7%
0.9

22%

15GW

0.4

36%
35%

3GW
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

EWEA 2011, Brussels, Belgium:

Europe's Premier Wind Energy Event
Contact Information: Michael Hannibal Borupvej 16 7330 Brande Denmark Phone +45 99 42 2672 mha@siemens.com

2022

2023

2024

2025

0.7