Stakeholder Management on Scotland’s Norwegian Interconnector Project

Edinburgh 16th of May 2012Richard BlanchfieldNorthConnect UK PM & Head of Technical

Contents

1.1. NorthConnect Project BackgroundNorthConnect Project Background

2.2. Internal Stakeholder ManagementInternal Stakeholder Management

• Juggling an international JV projectJuggling an international JV project

3.3. External Stakeholder ManagementExternal Stakeholder Management

• Juggling multiple international interestsJuggling multiple international interests

NorthConnect Owners

25%

25%

16.7%

16.7%

16.7%

Non-NorwayNon-Norway(50%)(50%)

NorwayNorway(50%)(50%)

Norwegian Partners

+-

+-+-

+-

Direction of Energy Exports

At day

During night

Storage for night time production Daily

In dry periods

In wet periods

Clean water power replaces thermal energy

Seasonal

WindyAdditional energy will be stored Calm

Wind / Hydro Interoperability

• Dominated by thermal power (24h production -> daily price fluctuations)

• Increase of wind power - need for flexibility / storage

UK

• Dominated by hydropower (flexible production -> seasonal price fluctuations)

• Dry years are a problem

• 50% of European storage

Nordic

Facts & Figures

• Bi-directional VSC-HVDC technologyBi-directional VSC-HVDC technology

• 1400MW – 1400MW – ½ ½ million homes (Glasgow)million homes (Glasgow)

• Converter stationsConverter stations

Aberdeenshire and theAberdeenshire and the

Western FjordsWestern Fjords

• 600 km (= Peterhead600 km (= Peterhead

to Manchester)to Manchester)

77

WP1Pre-FEED

• Business PlanBusiness Plan

• UK LandingUK Landing

WP2Consultn.

• EIA / SurveysEIA / Surveys

• ConsentsConsents

WP3Planning

• Subsea SurveySubsea Survey

• Detail DesignDetail Design

• ProcurementProcurement

LeadTimes

Installation & Construction

Execution

Financial CloseInvestment DecisionContract Awards

Oct-21

20112011 20122012 20132013 20142014 20152015 20162016 20172017 20182018 20192019 20202020 20212021

Internal Stakeholder ManagementJuggling an international Joint Venture project

99

JV / Project Company Governance

Derrick AllanSSE

Derrick AllanSSE

Odd ØygardenE-Co, CHAIR

Odd ØygardenE-Co, CHAIR

Per SwenzenVattenfall

Per SwenzenVattenfall

NCAS (BOARD)

Project Management Team (PMT)Project Management Team (PMT)

Øyvind StakkelandAgder Energi

Øyvind StakkelandAgder Energi

Øle GabrielsonLyse

Øle GabrielsonLyse

NCKS (EXECUTIVE)

Jo Viljam DrivdalCEO / PM

Jo Viljam DrivdalCEO / PM

1010

Project Delivery Governance

NorwaNorwa

yy

UKUKSubseSubse

aa

Project ManagerProject Manager

Commercial DepartmentCommercial Department

PermittingDepartmentPermitting

DepartmentTechnical

DepartmentTechnical

Department

WP1 WP2 WP3 PH1 PH2 PH3

1111

Too Many Cooks?

• Five organisations, with own systems processes & Five organisations, with own systems processes &

Governance structuresGovernance structures

• People at Board / PMT level from different companies, People at Board / PMT level from different companies,

mostly part-time seconded into NorthConnectmostly part-time seconded into NorthConnect

• Significant SSE involvement in UK & Agder Energi in Significant SSE involvement in UK & Agder Energi in

NorwayNorway

PMTPMT

Owners Group

Owners Group

1212

Governance & Teamwork

WP2

• Internal communications Internal communications

are a challenge:are a challenge:

• 15 people in 10 15 people in 10

different locationsdifferent locations

• Clarity of responsibility, Clarity of responsibility,

activities and reportingactivities and reporting

• E-room file sharingE-room file sharing

• Telcos & VC’sTelcos & VC’s

• Targetted meetingsTargetted meetings

External Stakeholder ManagementJuggling multiple international interests

1414

Breadth & Depth

Scotland Norway Subsea UK EU

Local

Regional

National

ResidentsResidentsCouncilCouncilRoads dept.Roads dept.

Aberdeenshr.Aberdeenshr.EnergeticaEnergetica

MSP’sMSP’sScottish Govt.Scottish Govt.

ResidentsResidentsKommuneKommuneIndustryIndustry

NVENVE

MOPEMOPEStattnetStattnet

Asset ownersAsset ownersEnvironml.Environml.

FisheriesFisheriesMoDMoDCoastguardCoastguard

JNCCJNCC

Nat. GridNat. GridOfgemOfgemDECCDECC

CommissionCommissionACERACERENTSO-EENTSO-E

1515

Communications Strategy

• Consistent message in all three marketsConsistent message in all three markets

• Create a good perception of the projectCreate a good perception of the project

• Process for PR and media handlingProcess for PR and media handling

• Gradual and balanced escalation of effortGradual and balanced escalation of effort

• Promote political dialoguePromote political dialogue

• CommunicationsCommunications

reference groupreference group

1616

Techniques

Statnett as TSO: Tie-in to the domestic grid as TSO Obligation for tie-in, but no time limits.... Assessment of grid implications Key input to Construction license, REA and FTLA

SN’s Conflicting

roles

NRA (NVE) •grants construction licence, but reports directly to MOPE •focus on technical issues •MOPE is the appeal body...

Ministry of Petroleum and Energy (MOPE) •MOPE grants:

Revenue Exemption (RE) Foreign Trade License (FTL)

• MOPE focus on political and socio economic issues• Owner of Statnett

Statnett as: Owner of ICs Close adviser for MOPE Adviser for NRA (NVE) Key input to construction license, RE and FTL applications

The key issues for permitting processes are the mixed roles of Statnett and the conflict of interest of MOPE as owner and regulator

InfluenceInfluence

DiagramsDiagrams

1717

Techniques

StakeholderStakeholder

PositioningPositioningS

tak

eh

old

er

Po

sit

ion

Low

Ag

ain

st

Stakeholder Power / Influence

Su

pp

ort

ive

H igh

Mobilise

Consult Engage

Inform

A1

A2

A3

A4

B2

B1

A7

A6

A5

C1

C4

C3

C2

D1 D5

D4D3 D2

E16

E15

E14E13

E12

E11

E10

E9

E8

E7

E6

E5

E4

E3

E1

E2

1818

Techniques

Management PlanManagement Plan

United Kingdom Consultation Plan

Group StakeholderIn

terc

onne

ctor

Grid

Con

necti

on

Plan

ning

Land

Dra

inag

e

CAR

Secti

on 3

7

Land

(Priv

ate)

Mar

ine

Lice

nce

Seab

ed L

ease

Port

s &

Har

bour

Acha

eolo

gy

Cros

sing

s

Road

s/N

RSW

A

By Whom?Starting When?

By Whom?Starting When?

(A) Political / Governmental

(1) UK Government (Department for energy and climate change) Westminster

Derrick / Jo Viljam May-12

(2) Scottish Government Ministers

DTS Consultant Screening Letter

Feb-12

(3) Member of the Scottish Parliament - Stewart Stevenson MSP

(4) Member of UK Parliament - Dr Eilidh Whiteford MP

(5) Scottish First Minister - Alex Salmond

Ian Marchant and Odd Oygarden ?

Jun-12

(6) Ministry of Defence

(7) Crown Estates Commissioners

DTS Consultant Screening Letter

Feb-12 Rich B / Rich W / Dave

Apr-12

(B) Local authorities (1) Aberdeenshire Council

Rich B / Rich W Jan-12 EIA Consultant Screening Letter

Apr-12

(2) Boddam Community Council

Rich B / Rich W Jan-12 EIA Consultant Screening Letter

Apr-12

Derrick / Jo Viljam / Rich B

Mar-12

ConsultationsConsultee on Consents

Lobb

ying

Liai

se /

Info

rm

In Conclusion

Conclusions

• An important project for ScotlandAn important project for Scotland

• Defining project Governance, processes and Defining project Governance, processes and

systems takes timesystems takes time

• Internal management isInternal management is

equally important toequally important to

external managementexternal management

• Its all about people andIts all about people and

relationshipsrelationships

2121

Glen Coe Hardanger Fjord

“From Wind to Hydro and back”