UK Supply Chain: Supporting 2020 Renewable Energy Targets

1. Bruce Valpy, BVG Associates Head of Business Development UK Supply Chain: Supporting 2020 Renewable Energy Targets

2. UK Renewables Status Update - UK Wind Delivery Constraints What UK is doing to help - Ports Inward Investment Innovation Support Summary Agenda

3. 1. UK Renewables Trade promotion and supply chain development service to: “support the growth of a world-scale UK renewable energy industry with increasing global market share, and capabilities sufficient to support the achievement of the UK’s 2020 renewable energy targets”

4. A One Stop Shop Inform, coach, support and champion UK businesses Focus on excellence Respond to requests from Wind industry UK market entrants UK enabling bodies Proactively develop supply & innovation opportunities Host UK stands at global events

5. 2. Status Update - UK Wind • 3.3GW operating (600MW offshore #1 globally) • 2GW under construction (800MW offshore) • Over 7GW consented (over 4GW offshore) • UK has best wind resource in Europe • 2008 best year yet (900MW installed) • 2020 #2 in EU; offshore #1 globally

6. Status Update: Offshore Legend Round 1 Offshore Wind Farm Round 2 Offshore Wind Farm Proposed sites in Scottish territorial waters Potential Round 3 Development Zone

7. Progress Update Round 1 Round 2

8. 3. Delivery Constraints + + + = 2006 2007 2008 2009

10. Projected European Offshore Market

11. 2009 Key Delivery Issues • At an industry level: • Economics • Grid infrastructure • At a project level: • Statutory consultation • Turbine supply • Subsea export cables • Turbine, foundation & cable installation • Construction ports?

12. Delivery Constraints – Wind Turbines

13. 4. What UK is doing to help - Ports Now Industry view: Positively surprised about UK ports visited Ports’ view: Keen to continue engagement Government view: Keen to help and know what to do Start (Q2-08) Industry view: UK ports don’t have the space and facilities and don’t want to make the investment needed Ports’ view: Can’t understand why industry needs so much space and won’t invest without orders Government view: Unsure about how to help

14. etc. etc. etc. etc. etc. What we did + 1-to-1 visits + UK prospectus + Ports workshops + follow-up action s

15. Conclusions: • There is enough space at UK ports for R3 projects, both for construction and manufacturing • Space not sitting idle now • Both central Government and regional enablers play an important role in ‘making things happen’ • UK Renewables • ‘One Stop Shop’ - here to help

16. 5. Inward Investment • Significant support available: • Case by case basis • Government + regional support • UK Renewables ‘One Stop Shop’ • eg. Vestas Global Research Centre – Rotor Systems

17. 6. Innovation Support • Significant support available: • Energy Technologies Institute (€50m+) • Carbon Trust (€35m+) • Crown Estate • Technology Strategy Board & EPSRC • Regional Enablers • Government • UK Renewables ‘One Stop Shop’

18. 7. In summary • The UK offshore wind market will be the largest in the world for the foreseeable future • UK is focussing on delivery of GW, offshore and onshore • UK Renewables is at the heart of making it happen – please come and talk. • www.UKrenewables.comBruce.Valpy@UKrenewables.com