Detailed Description :

Background

As part of the ongoing regional developments initiatives Renewables East are undertaking a major supply chain analysis to assess the local benefits derived from the installation of the Scroby Sands offshore wind farm and to assess future potential regional opportunities for future developments.

The supply chain analysis is to be carried out by Renewables East with two sub-contractors and is split into three elements -

• 1. Primary data collection and supply chain contract mapping – by ode
• 2. Independent comparative analysis against previous research – by Douglas-Westwood
• 3. Analysis / targeting of potential UK supply chain penetration for Round 2 – all 3 parties.

Scroby Sands was developed by E.ON UK (formally Powergen) and is one of the first major offshore windfarms to be developed in the UK.

It is one of 18 offshore windfarms proposed as part of the Crown Estates Round 1 licensing awards. The windfarm is located 2.5 km offshore Great Yarmouth on the coast of East Anglia.

The development comprises 30 X 2MW Vestas V80 turbines, 60-metre high, producing 60 Mega Watts of electricity, enough to power an equivalent of 41,000 homes in the area.

The cables are brought ashore and connected to the local grid network system.

Scope of Work – ode

There are four principal objectives covered in the supply chain study, each with a specific scope of work.

OBJECTIVE 1

Map supply chain to down to Tier 3 service and component supply and identify the associated contracts, sub-contracts and in-house services required in developing, constructing and operating the Scroby Sands project.

OBJECTIVE 1 Scope of Work – Development Phase

• Identify principle development costs incurred by E.ON UK.
• Identify contracted service providers and those provided in-house by E.ON UK.
• Assess levels of employment attributable to these activities.

OBJECTIVE 1 Scope of Work – Construction Phase

• Identify major construction contracts awarded by E.ON UK.
• Identify all major sub-contracts (particularly those of Vestas as EPC contractor).
• As far as possible identify principal turbine component supply to Vestas.
• Confirm contract values and assess likely levels of employment directly attributable to the supply of equipment and provision of services.

OBJECTIVE 1 - Scope of Work – Operation Phase

• Identify all Operations and Maintenance contracts awarded by E.ON UK including those warranty services provided by Vestas as turbine supplier.
• Confirm contract values and assess likely levels of employment directly attributable to the management of the site, maintenance of equipment and provision of services.

OBJECTIVE 2

Assess maximal level of UK and regional supply chain penetration in project construction associated with current contracting procedures and assess possible variance through use of alternate contracting structures.

OBJECTIVE 2 - Scope of Work

• Review project procurement procedures to confirm which contracts, sub-contracts or component supplies could have been secured by UK and regional companies.
• Identify criteria for contracting procedures and review likely alternates available to industry now and in the future as the industry matures.
• Assess effect of these alternate contractual frameworks on potential levels of UK and regional penetration of supply chain.

OBJECTIVE 3

Identify gaps within supply chain for Scroby Sands that were not obviously open to UK penetration, confirm which of these opportunities should be targeted to maximise UK and regional economic benefits, and asses what mechanisms exist to develop the necessary business skills to secure contracts to supply goods and services in these areas.

OBJECTIVE 3 - Scope of Work

• Assess the relative value and employment characteristics of supply chain gaps against known national and regional capabilities.
• Provide a list of the areas within the supply chain that offer the greatest opportunity for future UK participation.
• Assess the possible strategies of business development and support required to realise these opportunities.

OBJECTIVE 4

Forecast likely scale up effects in to a typical R2 project including changes in fundamental logistical, contractual and equipment supply requirements. Outline potential future research required to assess probable UK supply chain levels in such projects and levels of public sector intervention required to support or extend UK supply chain to secure greater economic benefits at national and regional level. Scale up effect will be In terms of overall contract values and employment moving from Scroby Sands scale offshore wind projects to a typical R2 site of 500 MW.

OBJECTIVE 4 - Scope of Work

• Identify and review likely logistical and contractual changes that are expected to occur to permit commercial development of such sites.
• Provide high-level assessment of effect on UK supply chain capabilities.
• Assess what additional intervention strategies in the form of business support, strategic investment or other public sector activity may be required to secure UK and regional participation in supply chain.