Stuart Whiting

Who is most likely to win supply
contracts and what will they be?
¾
¾ Presentation
Presentation by
by
Stuart
Stuart Whiting
Whiting
Commercial
Commercial Analyst
Analyst
Powergen
Powergen Renewables
Renewables
Powergen Renewables
Setting the Wind Scene
‹
‹
‹
‹
Powergen
Powergen Renewables
Renewables is
is one
one of
of largest
largest
developer,
developer, owner/operators
owner/operators in
in UK
UK Wind
Wind
Industry
Industry
Of
Of 88MW
88MW wind
wind energy
energy to
to be
be built
built in
in UK
UK in
in
2002
2002 we
we built
built 30MW
30MW
‹
‹
130
130 MW
MW operational
operational plant
plant
‹
‹
Plans
Plans for
for 1000
1000 MW
MW by
by 2010
2010
‹
‹
Current
Current UK
UK total
total of
of 500MW
500MW
‹
‹
UK
UK projection
projection of
of between
between 7000
7000 -- 9000
9000
MW
MW in
in 2010
2010
Large number of Contracts for the construction of
windfarms to be awarded by Companies like
Powergen Renewables
Powergen Renewables
The Supply Chain
(Typical Example)
Developers
Developers
e.g
e.g Powergen
Powergen
Construction
Construction Contracts
Contracts
e.g
e.g Civils/Electricals
Civils/Electricals
Lead
Lead Contractors
Contractors
e.g
e.g WTG
WTG Mfrs
Mfrs
Supply
Supply Contracts
Contracts
e.g
e.g Component
Component Mfrs
Mfrs
Powergen Renewables
Powergen Renewables view on
Contracting
ŠŠ Strategy
Strategy is
is aa balance
balance between
between Price
Price and
and Risk
Risk
ŠŠ Place
Place risk
risk where
where itit is
is best
best managed
managed
ŠŠ Onshore
Onshore
ŠŠ Multiple
Multiple fixed
fixed price
price contracts
contracts
ŠŠ Greater
Greater interface
interface risk
risk to
to Developer
Developer
ŠŠ Offshore
Offshore
ŠŠ Turnkey
Turnkey fixed
fixed price
price EPC
EPC Contract
Contract
ŠŠ Minimise
Minimise interface
interface risk
risk to
to Developer
Developer
Powergen Renewables
The Contracts for Onshore
Projects
ŠŠ Multi-contract
Multi-contract with
with Project
Project Manager
Manager appointed
appointed
ŠŠ Turbine
Turbine Supply
Supply &
& Install
Install contract
contract -- Vestas,
Vestas, Bonus,
Bonus, Nordex
Nordex
ŠŠ Civil
Civil works
works contract
contract -- foundations,
foundations, roads
roads
ŠŠ Electrical
Electrical works
works -- cabling,
cabling, connection,
connection, switchgear
switchgear
Powergen Renewables
The Contracts for Offshore
Projects
Through
Through the
the EPC
EPC
Direct
Direct through
through Powergen
Powergen
—
— Supply
Supply
Turbines
Turbines
Monopiles
Monopiles
WTG
WTG switchgear
switchgear
Offshore
Offshore Cables
Cables
—
— Onshore
Onshore Cable
Cable Supply
Supply
—
— Install
Install
Monopiles
Monopiles
Turbines
Turbines
Offshore
Offshore Cables
Cables
I&C
I&C
WTG
WTG switchgear
switchgear
—
— HV
HV Connection
Connection Agreement
Agreement
—
— Onshore
Onshore Cable
Cable Installation
Installation
—
— Project
Project Management
Management Agreement
Agreement
Powergen Renewables
Who will win supply contracts?
As
As Main
Main Contractors
Contractors
—
— High
High influence
influence from
from Powergen/Developer
Powergen/Developer
As
As Sub
Sub Contractors
Contractors
—
—
—
—
Low
Low influence
influence from
from Powergen/Developer
Powergen/Developer
EPC/Lead
EPC/Lead contractor
contractor to
to allocate
allocate and
and manage
manage the
the risk
risk
Powergen Renewables
Who will win supply contracts?
As
As Main
Main Contractors
Contractors
—
—
—
—
—
—
Project
Project management
management expertise
expertise
A
A track
track record
record
Management
Management of
of risk
risk
e.g
e.g Offshore
Offshore construction
construction engineers,
engineers, Turbine
Turbine
manufacturers
manufacturers
As
As Sub
Sub Contractors
Contractors
—
— Best
Best prices,
prices, quality
quality and
and supply
supply
—
— Supply
Supply chain
chain issues
issues including
including e-commerce
e-commerce
e.g
e.g Models
Models from
from the
the automotive
automotive industry
industry
Powergen Renewables
Who is most likely to win supply
contracts and what will they be?
The
The debate….
debate….
Powergen Renewables