Orsted · OMXCOP:ORSTED
Orsted — Ørsted — Investor Day (February 2017)
16 slides from Orsted's investor day presentation, Feb 2, 2017
Slide 1: Wind Power Post 2020 Pipeline
WIND POWER POST 2020 PIPELINE Martin Neubert, Chief Strategy Officer Meet the Management, 2 February 2017 105
Slide 2: Martin Neubert
Martin Neubert Strategy Chief Strategy Officer, Head of Strategy, Development & Regulatory Development & Regulatory Born: 1973 Education: MSc. in Economics and Finance Finance EPC (FAU) & CFA 2016 - Chief Strategy Officer Head of Strategy, Development & Wind Power Operations Regulatory 2012 - 15 Vic
Slide 3: Wind Power's ambition is to drive profitable growth by adding ~5 GW post 2020
Wind Power´s ambition is to drive profitable growth by adding ~5 GW of additional capacity post 2020 Wind Power capacity Global offshore wind market share end of 2016 (GW) (Percentage of installed capacity, GW) ~5 No firm volume target - Others DONG Energy Value creation key priority 29% 40% 11-12 ~
Slide 4: Remaining capacity of 4.3 GW will be fuelled from an opportunity pipeline of ~11 GW
Remaining capacity of 4.3 GW will be fuelled from an opportunity pipeline of ~11 GW Wind Power capacity (GW) >2.5x ~ 11 No. of projects Non-exclusive, 3 competitive 2 ~5 Exclusive, 5 competitive 2 4.3 Exclusive, 4 0.7 non-competitive Additional capacity needed to meet end Opportunities towards 2025
Slide 5: Next 18 months will see allocation of more than 8 GW of capacity
Next 18 months will see allocation of more than 8 GW of capacity for the post 2020 period DONG Energy Upcoming auctions and tenders pipeline options >8 GW of opportunities towards 2025 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Strategic markets >9 GW pipeline options 1st German 2nd UK CfD US Massa- Taiwan EIA2 2n
Slide 6: Two transitional auctions of total 3.1 GW in 2017/2018 before Germany introduces centralised model
Two transitional auctions of total 3.1 GW in 2017/2018 before Germany introduces centralised model German transitional auctions overview Detailed timeline April 2017 September 2021 1st German transitional auction 1st Centralised model tender • 1st auction: April 2017 Capacity: 1.55 GW Capacity: In t
Slide 7: Pipeline options in Germany positioned close to existing projects offering synergies
Pipeline options in Germany positioned close to existing projects offering synergies across sites Overview of Wind Power´s activities in Germany First row projects Cluster 1 Borkum Cluster Gode Wind Cluster – closest to shore vs. competing sites Clusters are part of German grid build-out plan toward
Slide 8: Approximately 4 GW to be awarded in UK through up to three additional CfD auctions
Approximately 4 GW to be awarded in UK through up to three additional CfD auctions UK CfD Auctions overview Detailed timeline Feb 2015 2018-2020 • 2nd auction: Q2 2017 1st UK CfD Auction 3rd UK CfD Auction Timeline Capacity: ~1.2 GW (awarded) Capacity: ~1.3 GW • 3rd auction: 2018-2020 Strike price (
Slide 9: High quality pipeline for the UK CfD auction rounds
High quality pipeline for the UK CfD auction rounds Detailed overview of the Hornsea area Hornsea • 1.2 GW 1 • Under construction Dogger Bank RWE, SSE, & Statoil • Up to 1.8 GW Westermost Hornsea Hornsea 4 2 Rough Hornsea 3 • Development consent awarded in August 2016 RWE & Grimsby Statkraft Hornsea
Slide 10: Massachusetts auctions of at least 0.4 GW to be held every 24 months
Massachusetts auctions of at least 0.4 GW to be held every 24 months until target of 1.6 GW is met Massachusetts auction overview Detailed timeline August 2016 30 June 2017 • 1st auction: by 2017 Massachusetts Energy bill signed Last date for release of final auction Timeline Overall framework and 1
Slide 11: Secured project rights for ~3 GW and entered 50/50 partnership in US
Secured project rights to build large scale projects with total of ~3 GW capacity and entered 50/50 partnership in US Overview of Wind Power´s activities in US Presence with office in Boston Continuous and active involvement in advising on the regulatory and political process Bay State Wind Ocean Wí
Slide 12: In Taiwan, approval of environmental permits needed by end 2017 to secure site exclusivity
In Taiwan, approval of environmental permits needed by end 2017 to secure site exclusivity Overview Taiwan offshore wind Detailed timeline • Environmental Impact 2015 2016/2017 2017 post 2018 Timeline Assessments (EIA) approved by end 2017 Build-out • No governmental requirement for ~15 ~10 ? ? buil
Slide 13: Acquired 35% of Taiwan's first offshore wind project and pursuing further rights
Acquired 35% of Taiwan's first offshore wind project and pursuing further post 2020 project rights of minimum 2 GW Overview of Wind Power´s activities in Taiwan Inauguration of office in Taipei Formosa 1 • 128 MW capacity (in two phases) • ~3 km from shore • 8 MW (Phase 1) installed Environmental Im
Slide 14: Further markets with strong offshore wind potential expected to open up post 2020
Further markets with strong offshore wind potential expected to open up post 2020 Wind Power Wind Power Wind Power Expected market size Established markets New markets Emerging markets by end 2025 Wind Power Established and new markets ~40 GW Global offshore wind ~80 GW Market maturity Note: In US,
Slide 15: Wind Power is the market leader in offshore wind with an ambitious growth strategy post 2020
Wind Power is the market leader in offshore wind with an ambitious growth strategy post 2020 Ambition of 11-12 GW ~11 GW opportunity pipeline installed capacity by end to secure the further growth 2025 Next 18 months will see Well positioned in allocation of full 2025 European markets capacity First
Slide 16: 120
120