building lease demonstrates SPR and Vattenfall’s commitment to delivering projects fromthe UK, using Round 3 as a platform. However, it is also important to recognise the wider additional benefits to the UK economy of locating the development teams in the UK – including opening up opportunities to the local UK supplier community. [C3,C2,C5] {ii, iii}
2.11.2 High proportion of UK development expenditure – The EA1 Project has planning consent and is at an advanced stage of development. To date £94Mhas been committed to developing the entire EA Zone of which £64Mhas been committed on the EA1
Project.Much of the expenditure on the EA1 Project has been incurred on the delivery of environmental and technical site investigation studies. The largest order placed to date was incurredwith, UK company, theWood Group for the provision and installation of twometmasts (£17M). The EA1 Project is now at the detailed engineering phase and has just contractedwith Fugro Geo Consulting to complete a Geotechnical study (£13M) to enable further site definition and commence detailed engineering for certain key packages. [C1] {ii}
2.11.3 FromEA1’s in-housemonitoring, it is estimated that over 95% of spend (in-house and external) has been with UK registered companies. [C1,C2] {ii}
2.11.4 Use of competition and promotion of local suppliers in development phase – Each of themajor contracts placed during the development phase followed EA1’s open and structured procurement process whereby EA1 has opened up the supply opportunity to asmany credible bidders as possible. EA1 has particularly promoted supply fromUK companies by invitingmany to participate in EA1’s tender processes and allocating some weighting towards UK content as part of EA1’s tender evaluation procedure. [C1,C2,C4,C5] {ii}
2.12 Turbine supply & installation
2.12.1 No framework agreement restrictions: EA1 does not have any framework agreements in place with any WTG supplier and has an open approach to considering alternative supplier solutions this promotes competition and innovation. Key learning frompast experience on the parent companies’ other offshore windfarms influenced the decision to combine the wind turbine supply and installation packages as a joint scope of works.[C1,C2,C3,C4,C5]
2.12.2 Open competitive tender process: TwelveWTG suppliers were contacted duringmarket engagement, seven (58%) of which were either new or less established offshore wind suppliers. The process progressed to include six suppliers in the formal tender process and now three suppliermodels remain in the shortlist which was determined in July 2014. [C1,C4,C5] {ii}
2.12.3 None of the three turbines has yet been installed in any quantity offshore, so EA1’s use of any of these turbines will accelerate their journey to large-scale commercial use. This helps address the key turbine- related concern of the timing of this journey raised in The Crown Estate’s OffshoreWind: A 2013 supply chain health check. [C1,C2,I2,I4] {ii, iii}
2.12.4 Turbine supplier supply chain plan commitments: Each shortlisted supplier has provided a supply chain plan (as described in 2.8) offering a broadening of their supply chain and each has entered anMOU with EA1 as evidence of their commitment to deliver on these plans (Annex 8) [redacted]. [C1,C2,C3,C4,C5,I1,I2,I3,I4,I5,I6,S1,S2,S3,S4,S5] {ii, iii}
In-warranty operation
2.12.5 As indicated in 2.3.3, the selectedWTG supplier(s) will performinwarranty operations and servicing activities during the five year warranty period. EA1 will work closely with theWTG OEMduring this period to develop the skills and knowledge required to either performin house or sub contract these services to another third party following the expiry of this term. The impact of this strategywill be to create the conditions for competition development in the area of post warrantyWTGmaintenance which we expect will grow and lead to cost reduction in the longer term. [C1,C2,C3,C4,C5]{ii}
2.12.6 During the initial warranty period EA1 will engage with other offshore wind developers utilising or likely to utilise ports and harbours around the East Anglia area to explore the possibility of collaborating together to use these facilities and services with a view to generating synergies fromthis action. [C4,I3] {ii, iii}
Page 11 of 30
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87