Scottish Renewable Energy Infrastructure Plan Emerging Conclusions

1. Scottish Renewable Energy Infrastructure Plan Emerging Conclusions Euan Dobson 3 November 2009

2. Wind, Wave and Tidal Energy • What? Infrastructure requirements - wave/tidal, offshore wind • Where? Process and first wave sites, approach for wave/ tidal releases • How? A focused and aligned delivery approach • With What? Sourcing private and public sector investment • Issues and opportunities • Next steps

3. Renewables Infrastructure Plan - N-RIP Scottish Government Renewables Action Plan - June 2009 Clear Spatial Framework • Infrastructure dependencies - logistics, port operating regimes, planning/ consenting regimes Process • Informed dialogue - ongoing • Bremerhaven and Stakeholder Session Drivers • Round 3, STW, Pentland Firth • Other port uses - ferries review, cruise infrastructure review, multi-modal study • Decommissioning Outputs • Clear spatial framework - investment requirements - delivery approach - funding

4. Scotland’s Offshore Wind OpportunityR3 and STW • Round Three Sites in Scotland • Moray and Cromarty Firths (expected • 2-3GW) • Forth and Tay Estuaries (3-5GW) • Build start dates 2014/15 • Scottish Territorial Waters Round • (6.4 GW) • 10 sites - 5 on the West Coast and 5 on the East Coast • Expected to total 6.4GW • Build start dates in 2013

5. North Europe Offshore Wind 2020 Windfarms planning to use 5MW Turbines 1.5GW Aberdeen 4GW 40GW Ormonde Bard Offshore 1 6GW 15GW 2.5GW • Windfarms to be completed 2009/2010

6. Scotland has over 70% of the UK’s tidal power which has been estimated at 13 billion kilowatt hours per annum Scotland’s Wave and Tidal Resources • Scotland’s position at the end of a long Atlantic Ocean fetch produces tremendously energetic waves

7. Wave v Wave/TidalDifferent Stage:Different Infrastructure Offshore Wind • Implementation “now” - next 12 months key • Large structures • Large developers and licence holders • Need for fast forward strategy

8. Wave and Tidal Testing Phase - 700mw by 2020 - Pentland Firth first… Devices - Wright Brothers, Boeing 737 (EMEC) Infrastructure to anchor test sites… to entice development, early manufacturing… North first..... South West Scotland, Western Isles follow Staged/phased infrastructure investment Pentland Firth “Triangle” - Lyness, Scrabster, Wick “Provisional Preferred Bidder” discussions as part of N-RIP Increasing Pace - Aquamarine/SDI enquiries/Crown Estate Wave v Wave/TidalDifferent Stage:Different Infrastructure

10. Offshore Wind

11. Infrastructure Challenges for Scotland Fife Energy Park Belfast Operation & Maintenance Installation Processes Bremerhaven Different needs/roles:- - Construction - Manufacturing single or distributed sites - O & M Over 3,700 Offshore Turbines by 2020 within reach of Scottish sites

12. Offshore Wind - Assessing Opportunities AssessmentApproach Proximity to Generation Potential Infrastructure at Site Locational Factors Timescale to Readiness

13. Where is the Wind? North West East

14. Future Needs and Locations • Indicative map of locational requirements • Based on strong growth of industry supply chain • Industry will drive use • Need alignment of Government and industry investment • Triggered investment in a first wave of sites

15. Key Locations - First Wave • Nigg and Ardersier - integrated manufacturing • Arnish - wind and wave? • Kishorn - construction/manufacturing - concrete? • Dundee - manufacturing and O+M (role of Montrose) • Hunterston - integrated manufacturing (role of Inverclyde and Stranraer/Cairnryan) • Peterhead - distributed manufacturing and oil & gas decommissioning • (Methil) - distributed manufacturing • (Machrahanish) - build on current developments incrementally • Wave/tidal - Pentland Firth Triangle

16. Delivery Approach • National purpose - New Energy Scotland Delivery Group:- • report to EAB • fastest, easiest, most supportive to innovation • small group • developers (FREDs OffWIND), port owners, SE/HIE, SDI, SRF • driven by N-RIP team • Regional Delivery Alliances:- • Bremerhaven Lessons • SE/HIE to drive and support • Where - “wind regions” East Wind West Wind • North wind

17. Issues and Opportunities Issues • Gap funding • Anchoring economic benefits of testing locations • Marine operations • Where Next? - first mover advantage • “No Regret” Investment - future uses

18. Issues and Opportunities Opportunities • Installation methods and consortia • floating/mobile infrastructure for remote locations - joint research and prototyping • Local production • Local operation and maintenance • .... but supporting globalising companies and supply chains

19. Fast Forward Timescale New Energy Scotland Delivery Group - convene early December • Costed investment plans developed • Installation - fastest location study • Simplified support offering • Tell Scotland’s new energy story • Drive investment funding search (c.£250m indicative)

20. Key Questions • Industry demands - are there other infrastructure needs? • Locations - does it seem right? • Dependencies - what are the (other) critical foundations for success? • Delivery alliances - is this the optimal approach? • Funding infrastructure needs - sources of funding?

21. Key Points - Summary • Wind - Fast Forward Strategy - ready by 2012/13 • Wave/tidal - staged but further dialogue with Pentland Firth testers • First Wave Investment Strategy - triggered • Delivery alliances - SE/HIE with ports and developers • New Energy Scotland Delivery Group - increase momentum and ensure systematic approach

22. Scottish Renewable Energy Infrastructure Plan