Role of digital technology
in energy transition
Discussion with Case Study

1ST OCTOBER 2020
SATOSHI YAMAZAKI

CURRENT

THREE STRATEGIC PLAYS PROVIDE NEW VALUE
DRIVERS FOR THE ENERGY COMPANY OF TOMORROW

Conventional generator

NEW••••

Large-scale renewables
Seasonal storage
HydrogenBiofuels

RENEWABLE
GENERATION

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Grid operator (TSO/DSO)

••
•
•
•

Smart DSO – Manage congestion
Accommodate DER in the grid
Flex markets
Data hub for market facilitation
Biogas, Hydrogen distribution

NETWORK OF
THE FUTURECommodity-centric supplier••••Retail Energy Management
Services (REMS)
Decentralized Energy
Resources (DER)
Electric vehicles
Flexibility services

CONNECTED
ENERGY SERVICES2THE ENERGY TRANSITION IS TRANSFORMING ALL SEGMENTS
21 Priority ETS Topics
GENERATION –RETAIL –RENEWABLES andNUCLEARUtility Scale
Solar

Distributed
Solar

Hydro Power
PPAs

Nuclear

Retail Energy
Management

Onshore Wind

Flexibility
Hybrid Plants
Hydrogen
CCUS

Renewables
Integration

NETWORK OF THE FUTURE(NotF)

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EVInfras.
P2P/Microgrids
VPPRenewables
Gas

TRANSMISSION & DISTRIBUTION –eMobility
Services

Batteries/Storage

Offshore WindCONNECTED ENERGYSERVICES (CES)DERMs

T-D Interface

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Case1

UK OFFSHORE WIND IN NUMBERS
7.9GW/ 38 farms >8% generation£39/MWh

Offshore Wind InstalledCapacity (largest in theworld, 43% of Europe)

Offshore wind supplied 8% of the
UK’s total estimated electricity
generation in 2018. It was higher
in 2019 and increasing

UK 3rd round cfd auction£39.65 ($50.05)

30GW

40%

40%

Target capacity by 2030 with 5.8GW
financing secured or underconstructionAverage offshore windcapacity factor

LCOE in the Operations
phase (and 70% of thetime)

12MW659MW>30 years

Size of the largest fixedoffshore wind turbines,
to be installed at SSE’s and Equinor’s
Dogger Bank development (largest is8.8 GW)

World’s largest offshore wind farmWalney Extension completed in2018

Some new projects
estimate potential asset
life

Sources: Accenture research and analysis, Crown Estate, Offshore Wind Operational Report , Company websites. As of Mar 2020

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4HISTORY OF OFFSHORE WIND IN THE UK
FORECAST in 2011
8,000

It actually happened. How?

5Forecast new capacity build (MW)

7,000

•

LCOE change, from >£150/MWh to est. 3rdround auction of <£40•

Turbine size, from <2MW to 8.25MW to 12MW

•Offshore visits cut in ½ over the last 4 years•

From 30% capacity factor in 2005 to 40% in
2018. Some newer sites can achieve 50%

1•

Turbine supply chain and development ofother local supply chains

0•

Purpose built vessels

Investment cost (m£ / MW)
4

6,000

34,00023,0002,000

million £ / MWMW

5,000

1,0000Case1

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: 2011 Accenture offshore wind report

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5OFFSHORE WIND COST STRUCTURE

Case1

40% OF COSTS, AND 70% OF TIME SPENT NOW IN OPERATIONAL PHASE
Dev

EPC

O&M

Decom

3-5 Years

2 Years

25 Years

2 Years

Development2％

Turbine

BoP

24%

20%

Installation
12%

O&M

40%

Decom
2%
Source: Offshore Wind Catapult

KEY CHANGE FROM 2011 TO 2020
•In-house EPC capability enabling decisions that will reduce LCOE (e.g. invest in CBM to save on O&M)

•More O&M control post warranty, and renegotiating/ restructuring full-service O&M contracts•Investing in digital and automation given largely manual processes where problems repeated over 100x•

Increased focus on the basics: logistics, maintenance, materials supply chain, workforce processes

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6

ENERGY IOT PLATFORM

Case2

COMMERCIAL ENERGY IOT PLATFORM IS ALREADY AVAILABLE AND STRONGLYSUPPORT “CARBON ZERO WORLD”.

✓ Envision Energy isfounded in 2007. Now Top
5 in world wind turbine.
✓ Envision Digital provides
comprehensive Energy IoT
platform, EnOS™ . Big data
and advanced analytics

90+ GW
16+ GW
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7

Thank you all for listening.

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