CR Workshop, Taiwan, 3th September 2019
Construction and operationsin offshore wind projects:
Key risks, lessons learnt, and risk management through due diligence
Agenda
• Introductions
• Services
• Project value chain
• General completion and operational risks
• Construction and operation LTA services
• Construction and operational issues
• Example case studies
• Q&A
We’re a global engineering, management and development consultancy focused on guiding our clients through many of the planet’s most intricate challenges.
17k staff, 170 permanent offices, 150 years of heritage
Introducing Mott MacDonald
Opening opportunities with connected thinking
Iban Vendrell Taiwan Energy Team Leader
• Over 12 years of experience in the renewables business
• Previously Wind Business Program Leader for Asia
• Experienced in assisting the lenders and project owners during due diligence and construction monitoring for wind farms
• Supported governments in drafting and/or implementing renewables programmes
Jim Chen Taiwan Executive Director
• Over 12 years of experience in the renewables business
• Taiwan Executive Manage
• With more than 25 year experience in project management and construction management of mega projects
• Having been Involved in offshore wind farm, solar power, thermal power, water, building and transportation projects in Taiwan
Offshore Highlights with Mott MacDonald Track Record
• 1st non-recourse finance deal (world)
• 1st Belgian, US and Taiwan deals
• Advised on over 50% of offshore wind projects worldwide
• 4 projects advised in Taiwan
• 13 projects advised in North East Asia region
Offshore wind resources
• Wind offices Taipei, Tokyo, BKK, SNG, Melbourne
• 30 dedicated staff in Asia
• 12 staff in Taiwan
• 250 staff involved globally
Broad Range of Technical Services (OTA, OE, LTA)
Project Value ChainRisk, cost and bankability assessment
Project value increases as the project undergoes de-risking and capitalization
Site Identification Permitting Construction Construction OperationOperation
Operational Risks
• Electrical design and grid code compliance
• Civil structure durability • Turbine performance• Operations management • O&M strategy • Energy yield• Agreement risks• Permitting Constraints• Opex budget and MRA
Completion risks
• Participants experience• Ground risks• Wind farm layout • Civil design • Electrical design and grid code
compliance • Construction management • Construction strategy • Schedule • Agreement risks• Permitting Constraints• Capex budget and contingency
BRAND+-BRANDBRAND
Emphasis on commercial impact
Quality, schedule, cost, performance
Monitoring Construction
• Independent review of monthly reports
• Monitor Progress• Review H&S and
Quality• Monitor financials• Approve drawdowns
Monitoring Testing
• Review commissioning / testing plans
• Assess test results• Confirm project
completion
Monitoring Operations
• Independent review of monthly reports
• Monitor availability performance
• Monitor O&M performance
LTA role during construction and operations
Example construction risks and mitigation
Design a robust project schedule including float
1. Poor weather leading to delays on packages
Robust DD, conservative schedule, investigation of vessel performance, marine warranty surveyor
2. Vessel and equipment availability
Strong contractors, owner supervision, robust testing, procure insurance
3. Poor cable installation/handling
Understand sources of delays and add appropriate float
Consider grid connection and cable manufacturing lead time
4. Interfacing delays
Use strong contractors, owner management, owner QA/QC plan (appropriate staffing)
5. Poor quality control
Example operational risks and mitigation
Robust measurement campaign and EYA methodology, IE view, use latest tools
1. Poor quality EYA leads to lower than expected performance
Operational accessibility study pre-FID, mitigants (helicopters, hotel vessels, etc)
2. Poor understanding of site accessibility
Negotiate strong availability warranty with O&M contractor, owner capacity building
3. Slow response in major interventions
End of warranty inspection program
4. Poor end of warranty inspections
To link each WTG tower with the monopile foundation and level the tower’s verticality, a transition piece is fitted on top of the monopile using a grouted connection made of high strength concrete.
A retrofit solution using elastomeric bearings was designed. Implementation resulted in significant costs.
Solution
Across the industry some small slippages of the parallel sided grouted connections have been experienced.
Issue
Case Study
MP-TP grouted connection slippage
Construction issue
The design of the MP-TP interface of following projects was changed.
Lessons
MM supported on understanding and modelling:
1. level of damage and potential consequences
2. cost impact on the project in terms of repair campaigns and loss of production
3. the optimal time to perform the repair campaigns
4. the best repair and retrofit solutions
Case StudyOperation issue
Blades needed to be
repaired/ replaced
due to blade erosion
Better protection
systems have been
developed
Issue
Lesson
Questions?
This document is issued for the party which commissioned it and for specific purposes connected with the training presentation. It should not be relied upon by any other party or used for any other purpose.
We accept no responsibility for the consequences of this document being relied upon by any other party, or being used for any other purpose, or containing any error or omission which is due to an error or omission in data supplied to us by other parties.
This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it.
Disclaimer