2.2.2 High volume of new entrants engaged – Across all of themajor construction packages set out below in 2.10.1, EA1 has engaged 253 suppliers to date as part of its early and broadmarket engagement activities. Of this total 167 (66%) are either less established or are new to the offshore windmarket. A full listing of these suppliers and definitions regarding our classifications is provided in Annex 4 [redacted].Many of these potential suppliers are fromother industries such as oil & gas and also different geographic locations. [C4,C5] {ii, iii}
2.2.3 Ongoing engagement activity – As part of this engagement EA1 has (and will continue to):
Make prospective suppliers aware of the supply opportunities and provide the suppliers with a chance to demonstrate willingness and capability to be considered as part of the pre-qualification process, discussed further below. [C1,C4] {ii}
Provide newcomers with relevant information and timely engagement with the right people. [C1]{ii} Work with bodies such as the OffshoreWind Investment Organisation, UKTI, Scottish Enterprise and Scottish Development International to identify the valuable public support available for potential suppliers to the sector. A list of key enabling organisations relevant to EA1 in developing its supply chain is in Annex 2C. [C1,C2,I6,S5] {ii, iii}
Maintain a working knowledge of the key investment decision criteria for credible potential suppliers Ensure that each has a specific point of contact within EA1 to engage with about the EA Zone projects. [C1,C4,C5] {ii, iii}.
2.3 Removing Barriers to Entry into the Supply Chain [C2] 2.3.1 Existing activity to remove barriers to entry – Some examples of EA1 activity include:
Helping to overcome constraints (e.g. balance sheet, track record, know-how etc.) by encouraging partnering between potential new entrant UK companies and other companies with requisite balance sheet, track record or experience. Evidence of EA1’s activity in this area is supported by the memorandums of understanding (MOUs) EA1 has included in Annex 8 [redacted] and is further described in 2.14.2. EA1 expect these strong joint ventures to be well positioned to be able to deliver large projects, create UK economic benefit and strengthen the business for future opportunities both in the UK and Internationally. [C2,C4,C5] {ii, iii}
Assessing options promoted by BIS & UKTI prior tomaking final selection decisions, recognising Government intent to better use export credit arrangements to support UKmanufacturing companies and the Business Bank (action 24 in the OffshoreWind Industrial Strategy). [C2] {ii}
2.3.2 Test site opportunities to prove new technologies and increase competition:
EA1 is planning to use a small area (3 to 5 turbine locations) of the EA1 Project as a demonstration site for turbines (of the generation after those listed in 2.12.2) and foundations, in order to reduce barriers to entry for new turbine and foundationmodels and accelerate competition for future offshore wind projects including the wider EA Zone. EA1 has already discussed this proposal with the Crown Estate. [C1,C2,I1,I2,I4,I5,S4] {ii, iii}
SPR is already showing commitment to promoting competition by developing one of the largest test sites in the world adjacent to itsWikinger offshore wind project in Germany. SPR has applied for a BSH 1 award (a necessary consentingmilestone for German offshore windfarms) and is currently awaiting approval. Once consented this project will have up to 11 test pads available for turbine installation in 2016. This should enable EA1 to gain operational insight with its chosen turbine in a cost effective manner before the supplier purchases components for the EA1 Project. [C1,C2,C3,I1,I2,I4,I5,I6,S4,S5] {ii, iii}
Vattenfall has already shown significant leadership in driving the development of European Offshore Wind Deployment Centre (EOWDC) off the coast of Aberdeen in Scotland as a key close-to-shore location to accelerate supply of new turbines and other areas of supply. This project is now awaiting the conclusion of a Judicial Review of its consent and onshore consent for the cable coming ashore.
Vattenfall also helped develop and part owns Alpha Ventus which was the first German offshore wind demonstration site in 2010 with six AREVAM5000 turbines and six Senvion 5Mturbines. [C1,C2,C3,I1,I2,I4,I6,S5] {ii, iii}
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