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 Network Innovation Allowance (NIA): SPR is actively workingwith SPEN to support the development of NIA projects that impact on offshore transmission infrastructure, including a project looking at Low Frequency AC (LFAC) for offshore connections. LFAC has a potential to reduce the cost of offshore transmission technology for projects beyond 150kmfromthe onshore connection point by around 30- 50%, as well as offering an alternative to HVDC bootstraps in the onshore transmission network. SPEN will demonstrate LFAC in 2015 which should advance commercialisation of this technology. [I5] {iii}


 ORE Catapult – EA1 case study: Due to the limited deployment of HVDC solutions for offshore wind, further refinement can be done to optimise the architecture and key parameters of the transmission system. ORE Catapult is seeking to explore this area and EA1 is keen to use the EA1 Project as an example case. Even if (due to timing and commercial reasons), the EA1 Project is not in a position to fully adopt the results, EA1 recognises the value of such an activity to future EA Zone projects and the wider industry, as it explores ways to reduce cost of transmission, especially for far fromshore projects. [I1,I2,I4] {ii, iii}


 Marin-El project – Iberdrola’s Engineering and Construction division is designing a new self-installing offshore substation concept with a view to accelerating installation and significantly reducing the costs of offshore wind projects. This is a £8.3M(€10M) project, supported by the Basque Government and is highly relevant to future EA zone and other offshorewind projects. [I2,I4] {ii,iii}


3.2.10 Package specific action


 EA1 project teamactivity: EA1 is actively looking at improvements in transmission technologies to reduce the future costs of offshore wind, including: [I2] {iii}


o Improved classic 50Hz AC systems o Optimised DC solutions, simplifying the technology and reducing the offshore footprint.


o Actively investigating alternative technologies such as low frequency alternating current to improve offshore transmission costs.


o Engaging with a wide range of suppliers and emerging suppliers to understand the development of transmission technologies from2020 to 2030.


3.2.11 Shortlisted supplier innovation: The HVDC substation option offers significant opportunity for innovation, both in the design but also in installation. The shortlisted suppliers each have significant R&D programmes running and, following award, there will be a process tomanage a range of innovations to incorporate into the solution for the EA1 Project.


 Grid optimisation: EA1 is considering sizing the transmission systemto bemore reflective of actual usage, as discussed in The Crown Estate’s OffshoreWind: Cost Reduction Pathways Study. This is because the full rating of the transmission systemis rarely fully used, due to the lack of correlation between sufficient wind speeds formaximumgeneration and the availability of all turbines to generate at this time. This could be amore cost effective alternative to a full rated system. [I2] {ii, iii}


3.3 Innovative procurement or contracting practices [I3]


3.3.1 Tier 1 supplier commitment to competition, innovation, skills & UK benefit: A key requirement of EA1’s tender process is the request for suppliers to prepare supply chain plans as noted at 2.8.1 which specifically address their approach and future actions to further innovation in the industry. This is a new and innovative means to promote competition, innovation, skills and UK content and drive these commitments through the various supply chain tiers. Following supplier award EA1 will dedicate resource to ensure that the innovation commitmentsmade by its suppliers are delivered andwill be tracked at appropriatemilestones. [I3] {ii, iii}


3.3.2 WTG Optimisationwork stream: EA1 has challenged its shortlistedWTG suppliers through a dedicated optimisation work streamto demonstrate how further innovation can be implemented through theirWTG supply and installation offers. This work has been structured by examining the following six key areas with each supplier: [I1,I2,I3,I6] {ii}


 Optimal windfarmlayout  Wind turbine upgrade opportunities  Optimised O&Mapproach  Early revenue delivery


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