Potential hazards and risks in the offshore wind park development process in Poland Stefan Simon, CEO Green Energy World.

Potential hazards and risks in the offshore wind park development process in Poland

Stefan Simon, CEO Green Energy World

www.green-energy-world.ch

Content

1. Who is Green Energy World

2. Wind Power Market in Poland

3. Surrounding Conditions for Offshore Development

4. Risks & Hazards in Offshore Wind Park Investments

5. Conclusion


Who is www.Green-Energy-World.ch ?

Suisse Company with Offices in Basel and Berlin

Trading Platform for Renewable Energy Projects

Link between Project Developers and Investors


Providing Services

International Network, High Quality Energy Projects (RE)

Common services are:

- Marketing of projects- Share sales- Tenders- Subsidies acquisition- Emission reduction certificates - Consultancy, Market Analysis- Due Diligence- Draft of sales contracts- Additional services through partner companies

GEW management has over 20 years of international experience in project development, marketing and analysis.

5www.green-energy-world.ch

280 MW

Installed Wind Energy CapacityPoland 2007

Sources: Polish Wind Energy Association (2007); * based on EC BREC (2004)

under construction


EU Target for Renewable Energy: 20% by 2020March 2007

(EU Summit, Nuremberg 2007)


Peak of World Oil Production

Source: Oil & Gas Journal (2004)

scenario 1: 2007 scenario 2: 2010

World oil production scenario 1

World oil production scenario 2[oil

prod

uctio

n bi

llion

bar

rel/y

ear]


During 2006 / 07, more than 4.5 billion Euro have been spend on wind park acquisition in Europe

2006 2007

Scan Energy34 Mio €,Germany

Northland Power16 Mio €,Germany

International Power567 Mio €,Germany

EDF63.1 Mio €,

Italy

Babcock & Brown110.3 Mio €,

Spain

Prudential M&G1,050 Mio €,

UK

Electrabel55 Mio €,Portugal

Babcock & Brown18.3 Mio €,

Spain

Centrica62 Mio €,Scotland

International Power1,839 Mio €,

Italy/Germany

E.on722 Mio €,

Spain/Portugal

Iberdrola30 Mio €,Germany

Source: Mergermarket et communiqués de presse (2007)


Target for Poland: 2,000 MW capacity by 2010

Sources: Polish Wind Energy Association (2007); * Wind Energy Barometer (2007)

2.000 MW

280 MW

72 MW*152 MW*

2005 2006 2007 2010

2.3% of wind generation in domestic energy consumption(7,5% target)

for 2006-2010 approx. 1,800 MW new installations needed

ca. 450 MW/a


20% Renewable Energy in Poland ?

Only possible with Offshore Wind Farms

~ 6 GW needed

Larger Steps towards the 20% Goal


Potential Risks and Hazards

... “the possibility of an event occuring that will havean impact on the achievement of objectives.“

What is risk?

... “the situation, which poses a level of threatto life, property or environment.“

What is a hazard?


Planning

Operation

Construction

Risks and Hazards in Offshore Wind Farms


Risks and Hazards in the Planning PhaseBasic Site Criteria

Location (EEZ, 12-Mile-Zone, etc.)Environmental (Flora, Fauna, Fish, Marine Mammals, Marine

Birds, etc.Wind Speeds (average, extremes, etc.)Water DepthWave ImpactsFisheryShipping RoutesAir Traffic (Restrictions, etc.)Power Cable (new or existing, Type, Capacity, etc.)Grid Connections (Distance, Capacity etc.)Power Transfer (offshore / on-shore)


Risks and Hazards in the Planning PhaseRegulatory, Legal and Political Situation

Feed-in Tariff / Certificate StructureReliability of Agreements / Permit SecuritiesRegulatory Permitting Process

Transparency of the ProcessResponsibilitiesPredictability (Go/No-Go Criteria)DelaysCosts Development


Risks and Hazards in the Planning PhaseSituation in Poland

No clear Criteria for Site Selection

1 % Down Payment for Construction Permit Application

No Transparency in the permitting process

Lack of Long-term Strategy for Renewable Energy

No attractive Feed-In Tariffs

Missing Infrastructure for Offshore Power


Recommendations

Clear Planning Criteria

Target: First Offshore Wind Farm in 2010

Providing an adequate Grid Infrastructure

Attractive Feed-In Tariffs

Collaborative Engagement with other maritime sectors

Polish Offshore Wind Industry Advisory Group


Thank you very much!

Dziekuje bardzo!

Potential hazards and risks in the offshore wind park development process in Poland Stefan Simon, CEO Green Energy World.

Documents

wind energy barometer

polish wind energy association

ceo green energy worldwww

renewable energy projectslink

europe scan energy

domestic energy consumption

world oil production

wind generation