Offshore Wind Power Logistics - Like a journey to the moon

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Offshore Wind Power Logistics - Like a journey to the moon

  1. 1. Background informationLike a Journey to the MoonAuthors: Frank Reichert, Robert Kunze, Saman Kitvarametha
  2. 2. Like a Journey to the MoonHalf-baked logistics concepts and communication „by acclamation“: offshore wind logistics might turn out tobe an unpredictable blind flight. RWE Innogy GmbH, a German company specializing in renewable energy, evenstates, “Compared to onshore logistics, offshore logistics is like a journey to the moon.”1 The much-cited “energy transition” is on everyone‘s Apart from that, however, the odds are favorable, as lips, and has been even before the Fukushima nuclear the North Sea and the Baltic Sea are regarded as being disaster. Inner-European greenhouse gas emissions among the most promising offshore wind areas in the are to be reduced by at least 20%, energy efficiency world, and the initial tariffs for the first twelve years improved by 20% by way of energy savings, and have recently been raised from 13 to 15 euro cents per the share of renewable energy in the total energy kilowatt hour. consumption raised to 20%. The German government even aims to raise the share of renewable energy in More and More Players in the Offshore Logistics power generation to 25-30% by 2020. High hopes are Market being placed on offshore wind energy in particular. Not only constructors and operators of offshore wind The German government‘s resolution in the “National farms would benefit from growth, but also maritime Renewable Energy Action Plan” envisages 10 GW of economy, navigation, ports and shipyards. But growth installed output in offshore wind farms by 2020. By 2030, in Germany is stalling. The German special way of it is even planned for offshore wind farms with a total doing things is regarded as one of the reasons. While output of 20-25 GW to be set up in the North Sea and the construction of wind turbines on the open sea is the Baltic Sea. These farms alone could cover approx. definitely planned, they should not be located within 15% of the electricity requirements in Germany, which eyesight of the shore. As the turbines move further equals an annual electricity yield of 85–100 TWh.2 away from the land (approx. 30-100 km) and the waters grow deeper (20-40 m), the total costs increase. German Offshore Wind Power Projects (in MW) Bureaucratic obstacles with diversified responsibilities in municipalities, counties, and environmental agencies North Sea Baltic Sea lead to especially tedious approval processes. Another 470 Operational 51 reason development is impeded is the slow expansion of the German electricity grids. 17,620 Approved 2,318 100 billion euros: this is the total sum that is estimated to be invested in the offshore wind market by the year Awaiting 2,295 24,616 approval 2030. The sum includes investments in wind farms and their grid connection, areas of maritime installation and service, and port infrastructure. Logistics services in Source: dena, Barkawi Research 2011 particular play an important role during the life-cycle of An ambitious goal, considering that a mere 470 MW of an offshore wind turbine, because apart from turbine installed output are in operation by now. But in order purchase costs, grid connection and the foundation, to reach the objective set by the German government, logistics contributes one of the largest shares of the based on the current state of affairs, approximately 3 necessary investment in an offshore wind turbine. MW of offshore power would have to be installed every Considering the presently active wind farms, those day between 2012 and 2020 – a requirement that is already approved and those currently under review for currently by all means utopian, as it currently takes approval, there is enormous offshore logistics potential an average of 6 days to install 1 MW of output. The which consists of logistics services until startup and government‘s objective thus seems to slip out of reach. logistics services pertaining to support and maintenance. Depending on the respective logistics concept, the 1 Interview with representatives of RWE Innogy GmbH; July 21, 2011 2 German Federal Ministry for Environment, Nature Conservation and Nuclear strongly fluctuating logistics costs comprise between Safety, 2011
  3. 3. 5% and 15% of the CAPEX of an offshore wind turbine. The “installation logistics” step, during which materialsThis gives rise to different scenarios for the total logistics and staff are transported from the ports, is the biggestpotential: Barkawi estimates the logistics turnover cost driver in the entire logistics process. The share ofpotential at 12 to 31 billion euros. maritime logistics accounts for approximately half of the significantly higher costs as opposed to the onshoreIn this calculation, erection logistics represents the major sector. The domineering force here is a sellers‘ market:part of the total potential, with the biggest cost drivers specialized vessels are scarce; moreover, the requiredbeing the charter costs for installation vessels. It remains capacity clashes with the undwindling demand fromto be noted, however, that the specific characteristics of the oil and gas industry. Wind farm operators thus currently pay at least 150,000 euros a Potential Sales Volume for Logistics of German Offshore Projects day for an installation vessel, plus labor (in Mio. €) costs for approx. 60 workers. That is ten Low scenario High scenario times as much as is incurred per day for installation units in the onshore business. 18,601 But it could be even more expensive: 13,782 when the offshore wind farm “Alpha Ventus” was constructed, the leasing 6,847 5,074 After Sales of the Dutch heavy cargo ship “Thialf” 19 Erection 19 incurred costs in the amount of a stunning Opera- Approved Awaiting Opera- Approved Awaiting 500,000 euros a day.5 At the moment tional approval tional approval there is no acute shortage of erection units as yet, but experts are convincedSource: dena, Barkawi Research 2011 that in 2-3 years‘ time, if the developmentany offshore wind turbine (water depth, distance to the continues at the present rate, a veritable “bottleneck”shore, service concept: shore-based; vessel-supported, will occur, as the construction of such facilities isshore-based helicopter-supported; sea-based, etc.) expected to take two years. Simply settling the highsignificantly affect logistics costs. Just under 90% of leasing payments, however, does not help overcomethat potential can be attributed to projects in the German the maritime technology challenges. The plannedNorth Sea . In addition to project planners, wind turbine 3 German wind farms in particular, which are supposedconstructors such as Enercon, Siemens or Vestas, and to be erected in deeper waters and further away fromenergy suppliers such as RWE or ENBW, numerous the shore, pose yet another challenge to installationlarge and small logistics service providers are trying to logistics. Heavier seas and stronger winds show wherejump on the band wagon and use part of that potential the limits of current maritime installation technology lie,for themselves. 4 Development of Costs over the Course of the Individual Logistics PhasesLogistics on the Open Sea is in the Onshore and the Offshore SectorComplex Procurement logistics Production logistics Installation logistics Service logistics Planning Supply Production Assembly Transshipment Installation ServiceAlongside grid connection, funding and offshore onshore/offshoretechnology, logistics is the fourth keychallenge in the offshore wind energysector. At first glance, the logisticsprocess in the offshore sector is strikingly onshore/offshore onshoresimilar to that in the onshore sector. In onshore onshore onshore onshore/offshoreboth cases, the process can be broken onshore onshoredown into four main areas: procurement, Average duration of process steps when constructing a medium-sized offshore wind parkproduction, installation, and service 24-36 months 12 months 12 months 18 months 240 monthslogistics. Cost development offshore logistics Cost development onshore logistics Source: Barkawi Management Consultants3 Barkawi Management Consultants4 Windenergie soll Seehäfen pushen [Wind Energy to Push Seaports] – 5 Windenergie soll Seehäfen pushen [Wind Energy to Push Seaports] – WirtschaftsWoche, http://www.wiwo.de/unternehmen-maerkte/windenergie- WirtschaftsWoche, http://www.wiwo.de/unternehmen-maerkte/windenergie- soll-seehaefen-pushen-466792/, Christian Schlesiger, May 27, 2011 soll-seehaefen-pushen-466792/, Christian Schlesiger, May 27, 2011
  4. 4. often forcing operators and installers to improvise time- projects, a project income return of 7.1% after tax wouldand cost-intensive actions. An additional expenditure is apply to an equity-financed model wind farm, takingthe coordination of the employment of various floating the German Renewable Energy Act into consideration.cranes, some of which have to be brought in and In light of the technological and logistical challengesmobilized from different locations. What exacerbates and the even more meager experience in erectingthe current situation even more is weather conditions and operating an offshore wind farm, this incomethat are worse than was forecast, which lead to even return does not seem sufficient to cover the specific,more unexpected costs and increased shortcomings higher risks of offshore wind projects.6 The projectsin maritime technology. Because while the foundation therefore need to become more profitable. Since thecan also be installed at medium swell and fairly strong turnover share of the profitability equation can only towinds, the nacelle and the rotor blades can only be set up a certain degree be influenced by higher commercialwhen the wind has died down – at a place, of all things, availability and larger facilities, the focus lies on thewhere wind is supposed to be the source of energy costs. Costs (CAPEX) per MW of offshore turbines haveonce the turbine is in operation. Moreover, installation hitherto amounted to between three and four millionlogistics is complicated by a lack of expertise, reflecting euros, depending on the project. That value must beinsufficiently sophisticated standardization. lowered by 25% in order to create long-term investment security. Otherwise, the profitability of offshore projectsDelays in the Logistics Chain Reduce Turnover threatens to become so unattractive that it will noand Increase Costs longer be possible to raise any outside capital. AfterProduction, installation and service logistics all face a all, even today the calculated income return of Germanproblem relating to surface and capacity. While Dutch offshore wind turbines is distinctly lagging behind otherports – due to their extensive experience in cooperating countries. The logistics service provider DB Schenkerwith the oil and gas industry for decades and due to the came to the same conclusion: a cost reduction potentialconstruction of the first offshore wind farms such as Alpha of 20–40% is currently assumed in the areas production,Ventus – have sufficient expertise and handling space supply, assembly and transshipment, realized by meansfor large components, German ports are not prepared of integrated planning, controlling and supervising offor the offshore boom. Apart from large interim storage holistic logistics systems.7areas for the enormous turbine components, heavy-dutyaccess roads and harbor edges would have to be built But how can we achieve savings of up to one millionto facilitate delivery to and loading of the ships. A 250- euros per installed MW? What do experts in this fieldMW offshore wind farm made up of fifty 5-MW turbines consider to be the essential factors for successfullywould thus have the following dimensions per turbine: improving efficiency in the entire logistics process?weight (1,500-2,000 tons), rotor diameter (approx. 110m) and tower height (approx. 90 m). These values meanthat a total volume of around 100,000 tons needs to betransported. Handling and storage areas close to theshore are especially important with regard to supplyingthe wind farm with spare parts and staff at a later stage.The costs and delays which might otherwise incur fromlonger transport distances that are not systematicallyplanned not only reduce the commercial availability ofthe farm, i.e. the turnover, but simultaneously increasethe costs.Logistics is the Key to Increased Profitability ofOffshore Wind ProjectsAt the moment, offshore wind turbines are three to fourtimes as expensive as a comparable coal power station.It is therefore paramount to get to grips with the costsincurred and to drastically reduce their current levels.Based on the data of current German offshore wind 6 Offshore wind farms in Europe, market study 2010, KPMG 7 Interview with Sebastian Peiler, DB Schenker, July 25, 2011
  5. 5. Good Project Planning is the Key to SuccessGood project planning is of the essence when erecting Bremerhaven Production of foundations,offshore wind farms, as the effects of poor planning are nacelles, rotors and towers, shipmentmuch more palpable than in onshore projects. Smalldelays can quickly lead to exceeding both schedule and Brunsbüttel Potential location for shipment, assembly and production of largebudget. Most delays result from insufficient information componentsand decision-making processes, as well as when theindividual sequential steps in the logistics process are Cuxhaven Production of foundations and towers, shipmentinadequately dovetailed. To avoid delays it is necessaryto involve all parties concerned more intensely and at Emden Production of nacelles and rotors, assembly and shipmentan earlier stage for the duration of the entire logisticsprocess. Logistics experts in particular are very keen Husum Potential support base foron being involved in the entire project planning maintenance and construction teamsphase as early as possible, so that they can plan forthe long term and be prepared to react adequately to Rendsburg- Potential location for shipment, Osterrönfeld assembly and production of largeany unforeseen events. Hence, all parties concerned componentsshould be involved as early as in the first process Büsum Potential support base forstep of internal planning: the viability review phase. maintenance and constructionThis way, the effects of delays on costs and thus the teamsprofitability of the project can be determined at an early Lubmin Potential location for production,stage. Efficient voting, coordination and communication shipment and maintenance, gridprocesses must be established and adopted in order connection point for the Baltic Seato guarantee a successful outcome. This helps to Rostock Production of nacelles,make sure that the internal project processes meet the rotors and towers as well asrequirements of each and every player. After all, the shipment(onshore), potentialplanning of an offshore wind farm requires the same location for production (offshore), shipment, maintenancedegree of integrated planning (sequential, parallel, andcontinuous) as a large-scale project to avoid delays at Sassnitz Potential location for production, shipment and maintenancethe points of intersection to the greatest possible extent.If the coordination requirements are to be met, project Stade Production of rotorscontrolling must be carried out from a single source. Wilhelmshaven Production, platform, constructionThe factors for successful project planning are therefore fleet location, shipmentbased on those of classic large-scale project planning: Dagebüll Möglicher Stützpunkt fürforesight, agreement, coordination, and communication. Wartungs- und Bauteams Helgoland Potential support base forSuccess of German Offshore Ports by Means of maintenance and constructionSpecialization and Cooperation teamsThe expansion of the North Sea and Baltic Sea ports has Source: Barkawi; dena Deutsche Energie-Agenturalready begun. There is a clear trend towards an „all-round harbor“: a port which not only accommodatesinterim storage and the loading of large components,but also offers enough space for production venues andthe storage of all the necessary erection units. Siemens,for instance, is planning a comprehensive, integratedproduction and logistics venue in Ireland. Experts,however, believe this trend is heading in the wrongdirection. From an economic point of view, they are allin favor of a specialization of the ports which could besuitable for the offshore wind market.
  6. 6. Expanding ports into all-round harbors would entail as harbors for assembling and manufacturing largenot only uncovered investments but also further components, whereas the ports of Büsum, Dagebüll,delays of the infrastructure setup: time we do not have, Husum and Brunsbüttel serve as reaction serviceconsidering the objectives and the competition with ports. The logistics chain is completed by the ports ofBritish and Dutch ports. In addition, competition for the Heligoland, Hörnum, List, and Wyk Auf Föhr, which aremost promising port areas and facilities would cause responsible for supplies.9 This promising cooperation isyet a further increase in costs. Moreover, experts see a good example of an efficient port capacity structurea danger in setting up excess capacities for the long along German shores. The individual ports carry out allterm, both in storage and handling areas and space coordination at an early stage, thus avoiding resource-allotted to installation units. Although expanding port consuming competition in the medium term andlogistics is immensely important for the growth of the eliminating the danger of setting up excess capacitiesoffshore wind market, doing things simply for the sake in the long term.of doing them in all ports, and in an uncoordinatedfashion, would eventually lead to excess capacities. Irrespective of their specialization, German offshore ports are not only facing challenges pertaining to loading,Therefore experts in the field do not focus on competition but also new challenges in the fields of security and IT.between the ports but rather on cooperation as a After all, the targeted objective of 25 GW of installedfactor for success. The aim of cooperating is to link output means that an additional 22.510 million tons ofthe locations and use the focal points of “production, goods will be handled by 2030 and must be includedlogistics and service ports for offshore wind parks” in 8 in and reflected by appropriate logistics, guidance andorder to provide potential customers with a closely knit, simulation systems.specialized network of ports. The “Offshore WindparkLogistik” cooperation [Offshore Wind Farm Logistics],which consists of ports along the North Sea shore ofSchleswig-Holstein in Germany, is an example of howtasks can be distributed successfully. The Germanports at Brunsbüttel and Rendsburg-Osterrönfeld act 9 Gesamtverband Schleswig-Holsteinischer Häfen e.V. (General Association of Schleswig-Holstein Ports)8 dena Deutsche Energie-Agentur 10 Barkawi Management Consultants (estimate) Overview of Offshore Port Trends, Needs and Technologies Trends Needs (for development) Technologies New IT requirements due to an • Port IT and logistics systems • Port information and increase in the flow of goods and • Simulation systems communication technology transshipment volumes • Process-oriented control systems • Terminal communication systems A growing logistics market, growing • Slot management • Transport and logistics systems network of German seaports, • Logistics platforms rising requirements regarding port • Computer-controlled data sharing hinterland connections • Feeder systems • RoRo/ConRo terminals Global rise in security requirements, • Security management • Security technology increasing requirements regarding • International security services maritime security Increase in seaport optimization and • Commercial vehicle loading facilities • Port and transshipment technology flexibility • Cross docking center integrated into terminal • Planning systems for transshipment equipment and carriers Increase in the number of • Hazardous goods management • Environmental technology environmental standards and • Sustainability strategy for Baltic Sea requirements in the port area ports • Energy management consulting and servicesSource: Maritime Technologien Schleswig-Holstein, MC Marketing Consulting, and dsn Projekte und Studien für Wirtschaft und Gesellschaft (Kiel) [dsn Projects and Studies for Economy and Society, Kiel, Germany]
  7. 7. The Availability of Adequate Equipment must be commission third-party providers for implementation.Ensured Their intention is to create a competitive environment inTwo approaches for overcoming erection unit shortages order to bring down the costs. Yet in the long run, theyhave proven to be successful, yet they could not be more would not rule out that they might purchase their owndifferent: while RWE purchased two installation ships equipment, too. However, they would only employ suchof its own11 in order to defy the shortages prevailing in an approach if the number of their projects was sufficientthe competition, Vattenfall continues to pursue a pure to ensure a high degree of equipment utilization. At first,project controlling-based approach, meaning it relies this rather cautious and risk-minimizing strategy seemson commissioning logistics service providers. to argue for reluctant investments in new offshore projects or seems to be based on the assumption thatRWE‘s installation ships are primarily used for the current shortages will wear off.erection of the offshore wind park “Nordsee Ost” [NorthSea East]. From RWE‘s point of view, deploying a large No matter which strategy will turn out to be the preferredfleet of ships in order to attain better flexibility and avoid choice of major wind park operators, the impact onshortages is currently the key factor for success, and the peripheral industries affected will definitely bealso the right strategy to pursue in the years to come. substantial. If the vertical model applied by RWE takesHowever, not all of the companies that are active in hold, plant manufacturers will have to face losses forthe offshore wind power industry possess the funding services provided beyond the warranty periods andrequired for such an approach. The costs for a hotel ship various niche providers currently benefitting fromwith a four-year delivery period, for example, amount to equipment and staff shortages will be subject to120 million euros, while installation ships such as those enormous pressure. However, such comprehensiverecently commissioned by RWE still cost approximately structural changes take several years.100 million each. Nonetheless, ensuring the availabilityof the equipment required is one of the key imperatives Independent of the chosen approach, the demand forfor successfully implementing offshore projects. special-purpose vessels and complex constructions will rise, thus entailing a huge potential for German shippingWhether or not it pays off to purchase one‘s own companies. Provided that the political and financialequipment strongly depends on the strategy chosen development turns out to be favorable, forecasts projectby the respective company. A strategic approach a market potential from „classic“ shipyard activitiesinvolving the purchase of its own equipment will give (vessel construction, reconstruction, maintenance)the company in question a good return if they intend amounting to up to 6.5 billion euros until 2020. Beyondto realize massive growth plans, as such investment these classic activities, a further potential sales volumedecisions can be expected to give rise to enormous from offshore structures (jackets and platforms) of up toeconomies of scale, meaning they could provide a 11.5 billion euros can be derived. Simply by exploitinghigh degree of equipment utilization and thus present these potentials, 6,000 jobs on German shipyards coulda good opportunity for achieving an adequate return be secured13 – a potential that especially the economicallyon investment (ROI). Moreover, the owners of the few battered Baltic Sea regions could benefit from.existing installation ships can rely on the so-called„multi-vendor principle“ and rent out their equipment to Realizing Significant Savings Potentials bythird parties whenever they do not need these capacities Means of Standardizationthemselves. This increases the degree of utilization The logistics related to the installation of offshore windand thereby enhances the return on their investment. power plants is not only to be regarded as one of the majorFurthermore, this strategy provides companies with a cost drivers, but also falls into the project phase presentingrare and highly valuable opportunity in the offshore the most substantial challenges. The standardization ofbusiness: it allows them to gain experience which they both plant components and organizational processescan benefit from in their future projects. during the installation – which is almost non-existent at present – would significantly contribute to savingSome of the other UCs 12 however, have positioned time and costs. The degree of standardization in thethemselves as pure project controlling firms and construction of foundations, for example, is virtually 13 KPMG; German Shipbuilding and Ocean Industries Association; Federal11 RWE corporate website Ministry of Economics and Technology; German Shipowners‘ Association;12 UC = utility company Offshore Wind Power Foundation
  8. 8. zero. Currently, each and every „jacket foundation“ is plant industry or the aerospace industry are the examplesa unique piece and hugely expensive. Standardized to turn to with regard to this aspect. The requirementsfoundations are expected to remedy that situation, as and challenges for logistics in these two industriesthey are supposed to reduce the scale of pre-foundation due to the sheer dimensions of the components, theplanning and the amount of installation work required, distribution networks required and the safety and securitythus presenting a considerable cost reduction. The regulations are substantial. The experience gained in thegravity foundation developed by the ZÜBLIN company field of aerospace logistics is highly valuable here, suchis a prime example for such standardization. This type as the insight that transporting heavy loads on inlandof foundation weighs up to 5,500 tons and sets the stage waterways instead of ground shipping has several majorfor a reduction of installation costs: it allows for series advantages. Load limits, for instance, are not as crucialproduction.14 A high degree of pre-assembly as well as in waterway transportation. The administrative effortproduction close to the quay are expected to further is considerably lower and fewer permits need to bereduce the challenges posed to logistics. Standardized obtained: planning and approving as well as carryingfoundations also contribute to a reduction of installation out heavy-load transports on inland waterways is fastertechnology investments, since it is no longer necessary and more cost-efficient.to have different erection units matching the respectivefoundation types available. Standardizing foundations With regard to the maritime technology required toas well as all related services thus constitutes a major install offshore plants and the experience with andfactor for reducing offshore installations costs, seeing handling of changing weather and tidal conditions atas these costs make up 25-30% of the total investment sea, the only other industry the offshore wind industrycosts for each offshore wind power plant. can possibly be compared to is the oil and gas industry. Both the experience and the offshore technologyOnly Few Examples of Best Practice Available So from the oil and gas industry were drawn on for theFar construction of the offshore wind park „Alpha Ventus“,Modern, coordinated logistics concepts and models in for example. Nonetheless, Erik Pietsch, Project Managerthe offshore wind market allow for cost reductions and for Logistics Planning at Vattenfall, points out that whilethus influence the profitability of a planned offshore there is solid experience in certain areas of the oil andwind park. Although the automotive industry and the gas industry that can serve as inspiration, there are alsowind power industry do not seem to have much in some fundamental differences compared to offshorecommon at first sight, the automotive industry‘s cutting- wind parks. So far, the erection of single structuresedge logistics methods can serve as a role model for was often the main focus of activity, whereas offshoremost companies in the wind power industry (and for wind power projects require the construction of large,all other industries as well). Just in time (JIT), Merge in contiguous offshore parks made up of wind turbines andtransit (MIT) or Just in sequence (JIS), to name just a platforms. The supply chain for the construction andfew, are logistics concepts that can also be applied in operation of such wind parks is far more complex, asother industries, as they allow for successful logistics both sequential and parallel – and considerably longerat low cost. In the case of the offshore wind industry, – logistics services have to be planned and controlled.15for example, weak links in the supply chain can beeliminated by employing the JIT concept, and a stronger Aside from the industries mentioned earlier, it isinvolvement of suppliers in the overall process can worthwhile taking a look at further branches of industry:help to reduce both stocks and costs. Implementing let us not forget about the logistics of major constructionthe JIT concept would make it possible to synchronize sites, for example, where the scale of constructionprocurement and production, as well as to provide projects, construction site accessibility, the constructioninformation and coordination across the entire value- technology employed and the usage of interim storageadded chain and among all parties involved. facilities is just as relevant as in the case of the offshore wind power industry.As opposed to the situation in the wind power industry,the good handling properties of automotive componentsfacilitate transport across longer distances. Hence bestpractices from industries such as the heavy duty and14 Dr.-Ing. Udo Hartwig, Dipl.-Ing. Klaus Pöllath, ZÜBLIN AG 15 Interview with Erik Pietsch, Vattenfall, 08/09/2011
  9. 9. Industries with Best Practice Examples in the Offshore Wind Business Process steps Grid connection Installation Foundation Logistics (transport & shipment, methodology) Automotive Oil & gas Heavy duty Civil Onshore Energy Aerospace & plant engineering wind industry Industries Industries with high degree of best practice transfer Industries with low degree of best practice transferSource: Barkawi Management ConsultantsThe Synchronization of Technology, Funding, issue presents another challenge. This is not only aGrid Connection and Logistics is the Key for question of costs incurred, but a more fundamentalOverall Success issue concerning the availability and deployment ofGermany‘s emerging offshore wind industry is at a resources and material throughout the entire servicecrossroads. While plant manufacturers are called upon process. Sooner or later, non-existent or unsophisticatedto develop larger and less vulnerable plants in order to service concepts will aggravate issues relating to thedefy the harsh weather conditions out at sea, it will be availability of staff and spare parts as well as disposalthe duty of wind park operators and service providers and dismantling issues.in particular to create a stable and profitable value-added chain. In order to achieve that, project controlling If the challenges described here are not met in the shorthas to really live up to its potential and assume more run, Germany will be at a risk of failing to meet its goalresponsibility. Stepping up coordination, consultation of achieving an installed capacity of 10 GW by 2020 andand communication between all stakeholders fail to keep up with the developments in the promisinginvolved would help to ensure efficient planning and offshore market, thus losing its position as one of theimplementation of logistics requirements while wasting trailblazers in the wind power sector. In the industry, theas little time and as few resources as possible, seeing as German North Sea is seen as the offshore pilot projectefficient logistics and the prevention of shortages are not par excellence: if technology, logistics, grid connectiononly key levers for the profitability of offshore projects, and funding work here, offshore wind power will alsobut also a fundamental prerequisite for ensuring success work anywhere else in the world, because frameworkand a positive outcome. conditions at almost all of the other locations are far more favorable than in the North Sea. Both in terms of itsHowever, it should not be neglected that the offshore reputation and its leading role in the technological field,wind market faces numerous other challenges aside it would be a serious setback for Germany as a businessfrom the logistics challenges at hand. The challenges location if the economic and ecological potential ofregarding technological progress, grid connection and offshore wind power were to remain unused.funding are interrelated and interdependent and thushave to be overcome almost simultaneously. All in all,even the most efficient logistics process can only makea minor contribution to the profitability of such projectsif grid connection cannot be set up in due time and ifthe technology employed is insufficient. And the service
  10. 10. Acknowledgements to the following companiesREpower Systems SERWE Innogy GmbHDB SchenkerVattenfall Europe AGEnBW Erneuerbare Energien GmbHGE Energy DeutschlandHellmann Worldwide Logistics GmbH & Co. KGNOW Nordsee-Offshore-Wind GmbH/Northern Energy Unternehmensgruppe Authors Frank Reichert is heading Barkawi’s After Market Services Practice as a Vice President. After graduating as a Diplom-Kaufmann at Munich’s LMU, including stopovers in Boston and London, Frank started his career as a consultant at Siemens Management Consulting. Followed by engagements at BayTech Venture Capital, Diebold and Detecon, he joined Barkawi Management Consultants in 2006, where he became responsible for the Aftermarket practice after a short period of time. Frank’s core consulting topics include innovative service concepts, business and market strategies as well as operational excellence projects. Robert Kunze is a Consultant in the After Market Services Practice at Barkawi Management Consultants. He is focusing on renewable energies, e-mobility and telecommunications. Within these industries he is specialized on designing and implementing complex Service and Operations Planning Processes. Saman Kitvarametha is a Consultant in the After Market Services Practice at Barkawi Management Consultants. Amongst other topics he is focusing on the optimization of Maintenance and Repair Processes in companies out of the renewable energies sector.
  11. 11. Barkawi Management Consultants I Baierbrunner Str. 35 I D-81379 Munich I Telephone +49-89-74 98 26-0 I www.barkawi.com

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