Offshore wind is already a major part of our energy supply, and key to our future – with huge potential for deployment, cost reduction, and economic benefit UK market is the largest in the world - and will remain so to 2020 and beyond We have a strong framework to drive investment in offshore wind – delivered through Electricity Market Reform We are already securing the economic benefits – and the potential is huge The UK is at the forefront of delivering cost reductions in offshore wind – reflected in reduced “strike prices” over the decade Some rationalisation of the “pipeline” of projects is to be expected – a sign of the sector maturing

1. Offshore wind: Coping Strategy
Sarah Nightingale, DECC
Natural England/RUK Offshore wind industry seminar
18 March 2014

2. Offshore wind in the UK: summary
• Offshore wind is already a major part of our energy supply, and key to
our future – with huge potential for deployment, cost reduction, and
economic benefit
• UK market is the largest in the world - and will remain so to 2020 and
beyond
• We have a strong framework to drive investment in offshore wind –
delivered through Electricity Market Reform
• We are already securing the economic benefits – and the potential is
huge
• The UK is at the forefront of delivering cost reductions in offshore
wind – reflected in reduced “strike prices” over the decade
• Some rationalisation of the “pipeline” of projects is to be expected – a
sign of the sector maturing
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3. Offshore wind is already a major part of our
energy supply….
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4MW
(2x 2MW)
2000
3.6GW
now
Comparison:
• Germany: 520MW
• Denmark:1.2GW

4. UK biggest market in world and well placed to
remain so to 2020 and beyond
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Installed now
(3.6GW)
2020
10GW
(range 8-15GW)
Total
pipeline
(almost 43GW)
Scoping
Planning
Post-planning
Under
construction

5. We are already securing the economic
benefits – and the potential is huge
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There are nearly 7,000 jobs in the sector, growing to a
possible 35,000 by 2020

6. The UK is at the forefront of delivering
cost reductions in offshore wind
• Objective: £100/MWh for projects taking FID in 2020
• Offshore Wind Programme Board –
Government/industry group driving cost reduction across
the value chain
– Supply Chain, Skills, Technology and Innovation, Contracting
Strategies, Planning and Consenting, Grid, Finance, and
Operations and Maintenance
• Expected cost reduction is reflected in strike prices –
which reduce from £155MWh to £140/MWh by 2018/19
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7. Reducing consenting risk and increasing
certainty also key
UK Renewable Energy Roadmap Update 2012 committed to:-
• Take forward strategic research to help plug key evidence gaps;
• Implement key recommendations from Habitats Review and work
with priority offshore wind projects to give more certainty in pre-
application phase – key role for Major Infrastructure and
Environment Unit and Marine Evidence Group.
• Identify potential mitigation and compensation measures and, if
appropriate, provide guidance; and
• Develop a “coping strategy” for consenting decisions that need to be
taken before the evidence base is improved.
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8. Taking forward “Coping Strategy”
commitment
• Time and legal constraints (Habitats and Wild Birds Directives
plus Planning Act 2008) limit scope for policy-led solutions.
• Dialogue with key stakeholders including RUK’s CLG, Natural
England, Crown Estate and RSPB highlighted:-
– Consensus about key issues;
– Recognition of need for swift solutions;
– Appetite for collaboration.
• DECC/Defra agreed to organise solutions focused workshop
to try and help move the debate on – took place 10 February
2014.
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9. Coping Strategy Workshop – key
conclusions
• Broad agreement to three areas of priority work:-
– Collision risk monitoring – synthesis meeting in late Spring
to maintain momentum after Marine Scotland work on
avoidance rates/behaviours finalised.
– Cumulative effects – development of new dataset and
supporting guidance to ensure use of up to date and
standardised data.
– Thresholds/populations – scope for new package of work.
• DECC/Defra to reconvene Govt/industry/regulator/|NGO steering
group to consider and agree how these outputs should be taken
forward.
• Essential to maintain momentum and continue collaborative
approach.
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10. Coping Strategy – next steps
• Collision risk modelling:-
– Draft of Marine Scotland/BTO report on avoidance
rate/behaviours due mid-April; final report May.
– Engagement with steering group on Marine Scotland/BTO
work to enable early identification of any unanswered
questions
– Potential interim position through industry/NGO/SNCB
dialogue on Smartwind/Forewind work.
– Synthesis meeting in June?
• Populations and thresholds:-
– DECC/Defra mapping out existing work to better understand
any gaps.
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11. Coping Strategy – next steps
• Cumulative effects:-
– High level process for developing dataset – “common
currency” - agreed;
– Steering group members refining detail and scope.
• Other issues:-
– Agreed steering group focus should be on seabirds.
– Defra to consider what further collaborative work on
alternatives, IROPI, and compensation might be possible.
• Next steering group meeting – late April/early May.
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12. Conclusions
• Shared aims:-
– Securing renewable energy delivery and tackling
climate change;
– Ensuring renewable energy delivery is truly
sustainable.
• Shared problems:-
– Challenging and complex issues around data and
evidence.
• Shared solutions:-
– Ongoing collaboration and transparency are key.
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