Agenda Item 15: Development of the offshore wind energy sector... – A report on the Council’s activity in support of...

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Agenda Item 15: Development of the offshore wind energy sector off the North Norfolk

Coast – A report on the Council’s activity in support of the sector since April 2012

Please find attached Agenda Item 15 for the Overview and Scrutiny Committee meeting on

19 th June 2013.

This item was listed as ‘to follow’ on your agenda.

Overview & Scrutiny 19 th June 2013

Agenda Item No______15_______

Development of the offshore wind energy sector off the North Norfolk Coast – A report on the Council’s activity in support of the sector since April 2012

1.0 Introduction

1.1 At its meeting of 16 th April 2012, Cabinet received and endorsed a report entitled

“Development of the offshore wind energy sector off the North Norfolk Coast – A

Strategic Positioning Paper and proposal for local partnership working arrangements”.

1.2 The report identified that the development of the offshore wind energy sector off the

North Norfolk coast presented a significant opportunity to broaden the district’s economy through the attraction of new investment, skilled employment and supply chain opportunities. Such investment would support of the Jobs and Economy aim of the

Council’s Corporate Plan particularly the objective of “increasing the number of new businesses and support the growth and expansion of existing businesses” , through, amongst other actions, “seeking to maximise the opportunities for the district to benefit from investment in renewable energy developments off the

North Norfolk coast”.

1.3 This report is intended to provide the Overview and Scrutiny Committee with an update of the Council’s actions in support of the sector over the past twelve months.

2.0 Offshore wind energy schemes approved off the North Norfolk Coast

2.1 Three offshore wind energy schemes have been granted consent off the North Norfolk

Coast, these being:-

 The 317MW Sheringham Shoal development

 The 560MW Dudgeon wind energy scheme – 32 kilometres off Cromer

 The 580MW Race Bank scheme – 27 kilometres north of Wells-next-the-Sea

2.2 The £1billion Sheringham Shoal scheme was completed in the summer of 2012, after some five years of project planning and development. Development partners StatOil and

Statkraft of Norway project managed much of the technical survey and construction programme phases of the development from offices and harbour facilities in Wells-next-the-

Sea, during which time there has been significant amounts of spending in the local economy through Wells Harbour, the procurement of local products and services, local accommodation providers, hotels etc. Since the Sheringham Shoal development

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Overview & Scrutiny 19 th June 2013 commenced generation in September 2012, SCIRA the operating company has established its Operations and Maintenance facility at purpose built office and warehouse accommodation at Egmere, to the south of Wells. This facility is supporting up to 50 longterm permanent employment opportunities and will provide a base for the technicians which will service the 88 offshore turbines, deployed from support craft operating from Wells

Harbour, for at least twenty five years. Throughout the period of its investment the District

Council has developed good relationships with StatOil/Statkraft/SCIRA and the company has also established good relations with the wider local community through the operation of its £100,000 a year community fund and growing education and training links with local schools and colleges.

2.3 In June 2012 licensing consent was granted for the Dudgeon and Race Bank schemes off the North Norfolk Coast and detailed project planning is now being taken forward for both of these schemes with the potential for Wells Harbour and the wider North Norfolk area to benefit from accommodating similar support activities / investment as with the earlier

Sheringham Shoal development. Local partners are therefore seeking to develop relationships with the principal funding partners to both schemes in the hope that the benefits of the North Norfolk area in being able to support the development and operation of these major developments are clearly understood.

2.4 In October 2012, Warwick Energy, the company which had developed and secured licensing consent for the Dudgeon Offshore Wind scheme, sold the scheme on to StatOil

/ Statkraft, developers of the Sheringham Shoal scheme. The District Council has met with representatives of StatOil/Statkraft twice since last autumn to discuss the progress of the project and understands that key decisions about the type of turbines to be used, development programme etc will be taken by the end of 2013. In the meantime, the

Council will seek to work with the company to understand their site and premises requirements in both the project management and operations and maintenance phases of the development to try and secure such investment for North Norfolk. Discussions are also taking place with partners about staging a supplier event with Dudgeon Offshore

Wind, so as to promote opportunities for local businesses to bid for contracts to provide products and services to the Dudgeon scheme. The Council is also in ongoing discussions with Dudgeon’s agents regarding the discharge of planning conditions and oversight of the onshore works involved in laying the cables from the landfall site at

Weybourne across the District to Great Ryburgh and onwards to the major substation facility at Necton in Breckland District.

2.5 The Race Bank scheme is being developed by Centrica, although it is not believed that the development proposals are as advanced as for the Dudgeon scheme. There will be less impact of this development on North Norfolk as the cable landfall for this scheme is at Walpole to the west of Kings Lynn; although it is considered that the port facilities at

Wells Harbour have potential to support the development and operational phases of the

Race Bank scheme due to the town being the nearest port facility from which to service the development. The Wells Harbour Commissioners have therefore made contact with the project team to promote the facilities of the port in support of the Race Bank scheme.

3.0 Norfolk and Suffolk Energy Alliance

3.1 The report to Cabinet last April proposed that the District Council became a member of the

Norfolk and Suffolk Energy Alliance, alongside Norfolk and Suffolk County Councils, Great

Yarmouth Borough Council and Waveney District Council. The Alliance had been established in 2011 as a means of co-ordinating local action in support of the energy sector across Norfolk and Suffolk. The Alliance recognised that the energy sector in its widest sense – ie offshore oil and gas, nuclear and emerging renewable technologies, formed a significant element of the economies of Norfolk and Suffolk, and local public sector partners therefore wished to engage with the East of England Energy Group (EEEGr) and the

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Overview & Scrutiny 19 th June 2013 emerging New Anglia Local Enterprise Partnership (LEP) to present a strong case to both

Government and energy sector companies that Norfolk and Suffolk had particular strengths in terms of established companies, skills and sites and premises assets to support future investment and development in the energy sector.

3.2 The District Council became a member of the Alliance last summer, since which time it has sought to promote the importance and opportunities of the offshore wind sector to the Wells

/ North Norfolk economy, in addition to promoting increased understanding of the long-term strategic and economic importance of the Bacton Gas Terminal facilities.

3.3 Since becoming a member of the Alliance the Council has participated in the following initiatives:-

 Officers and/or the Leader of the Council have attended six meetings of the Alliance

Board to engage with and develop the strategic promotion of Norfolk and Suffolk amongst energy sector businesses, policy-makers and inward investors and have lobbied local further and higher education colleges and skills organisations about the need to develop and deliver a co-ordinated programme of training provision across the area to meet the future needs of energy companies for skilled employees.

 The Leader of the Council supported an Alliance presence at a major offshore energy conference and exhibition staged in Glasgow last November where there was an opportunity to promote Wells and North Norfolk to a number of the major offshore wind energy investors and sub-contractors. Further

 Hosted a study tour to Wells and Egmere of the Chief Executive of EEEGr and

Inward Investment Director of NSEA/EEEGr to understand the Wells / North Norfolk offer to wind energy investors – including a visit to the Port of Wells, the SCIRA project office in Polka Road, Wells and the company’s facilities at Egmere and to discuss the Council’s proposal to establish an LDO at Egmere and of further developments proposed by companies at the Bacton Gas Terminal site.

 Through developing links with NSEA / EEEGr the Leader of the Council and Chief

Executive undertook a visit to Perenco’s Bacton site to understand issues importance to their business and North Norfolk operations.

 The Corporate Director participated in a sector development initiative led by the

Department of Business, Innovation and Skills exploring what more Government could do to support investment by energy sector companies, both within the UK and more locally at a regional level – exploring issues such as the planning framework, availability of sites and premises, strategic infrastructure investment, skills development etc.

4.0 North Norfolk Renewables Partnership

4.1 Working with local partners, the Wells Harbour Commissioners, and the Holkham and

Walsingham Estates, under the umbrella of the North Norfolk Renewables Partnership, the

District Council has sought to promote the facilities at the Port of Wells and the land and premises opportunities to businesses involved in the offshore energy sector.

4.2 Terms of Reference for the North Norfolk Renewables Partnership are attached at

Appendix 1 of this report and the Partnership has met on five occasions over the past twelve months to consider a co-ordinated approach to the handling of inward investment enquiries / business development enquiries associated with the offshore wind energy developments.

4.3 Key outcomes achieved by the Partnership over the past year are:-

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Overview & Scrutiny 19 th June 2013

 Development of the proposal to establish a Local Development Order for land at

Egmere and consultation on the draft proposal as reported to the meeting of the

Scrutiny Committee held on 23 rd May 2013.

 Development and launch of the North Norfolk Renewables website www.northnorfolkrenewables.org

– promoting the facilities of the Port of Wells and site and premises opportunities to potential investors.

 Taking a stand presence at the East of England Energy Group’s Southern North

Sea Conference event at the Royal Norfolk Showground in March of this year promoting the North Norfolk area to energy companies and their suppliers. At this event a senior project director from StatOil and the Dudgeon Offshore Wind

Scheme delivered a presentation and spoke positively of the working relationship which had been established locally in North Norfolk which had supported the delivery of the Sheringham Shoal development and provided confidence to investors associated with the development of the Dudgeon Scheme.

 Raised the profile of the Wells / North Norfolk “offer” to offshore wind companies and their suppliers through engagement with partners to the Norfolk and Suffolk

Energy Alliance so that the complimentary nature of the services and facilities available through the Port of Wells are clearly understood in the context of the port facilities at Great Yarmouth and Lowestoft.

5.0 Summary

5.1 It is believed that for relatively modest cost the District Council has taken forward a positive programme of activity in promoting the potential of the District as a place for investment by offshore wind energy companies and their suppliers / contractors. It is proposed that this work be continued into the future with regular update reports being provided to the Scrutiny

Committee so that the activity can be the subject of ongoing review by members.

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Appendix 1

Terms of Reference

North Norfolk Renewables Group

Aim:-

The North Norfolk Renewables Group has been established to respond in a coordinated way to the opportunities presented in terms of inward investment, employment and local contracts associated with the development of major offshore wind energy proposals off the North Norfolk Coast; and will work strategically to promote the area as a location for investor development.

Statement of Intent:-

The Group will act collaboratively in seeking to respond positively to such enquiries, but does not compromise the statutory development processes and need to consult and engage with local stakeholders including town and parish councils and the general public on specific development proposals, as and when they arise.

Objectives:-

The North Norfolk Renewables Group brings together North Norfolk District

Council, Wells Harbour Commissioners and key landowners in the vicinity of

Wells-next-the-Sea in order that there is a shared understanding of the infrastructure and site and premises requirements of companies involved in the development and operation of offshore wind energy schemes off the North

Norfolk Coast.

Where appropriate, given issues of scale and local environmental and tourism sensitivities, to proactively seek to accommodate inward investment associated with offshore wind energy developments through the allocation of land for associated onshore support, operational and maintenance facilities.

Through working with the Norfolk and Suffolk Energy Alliance and the East of

England Energy Group seek to promote the North Norfolk district and in particular the opportunities presented by the Port of Wells and the town’s hinterland as an inward investment location for offshore wind energy companies and their suppliers and sub-contractors.

 In the medium term, consider broadening the focus of the Group to embrace other renewable energy technologies across the District – to include anaerobic digestion, solar PV, tide and wave and small-scale onshore wind as appropriate.

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Appendix 1

Membership:-

 The membership of the North Norfolk Renewables Group shall consist of:

 o o o

A representative of the Wells Harbour Commissioners

The Cabinet member with responsibility for Renewable Energy at North

Norfolk District Council

Corporate Director and Economic Development Manager of North

Norfolk District Council

A representative of Holkham Estate (principal local landowner)

A representative of Walsingham Estate (principal local landowner) o o

Representatives of other organisations and agencies may be invited to attend meetings of the North Norfolk Renewables Group or be co-opted on to the

Group to address particular key issues as necessary.

Frequency of meetings:-

 The North Norfolk Renewables Group will meet bi-monthly usually at the offices of the Wells Harbour Commissioners.

Conduct of meetings:-

 Officers of North Norfolk District Council will act as secretariat to the group, providing administrative support in the form of preparing and circulating agendas and minutes of meetings.

 For reasons of commercial sensitivity meetings of the group will be held in confidence as many investment enquiries are made on a confidential basis and it is important for reasons of commercial sensitivity that issues of confidentiality are respected.

 Meetings will not be open to attendance by the general public, but minutes of the meetings will be taken and shared on a confidential basis with local district councillors for information.

Proposed North Norfolk Renewables Group – Final Draft Terms of Reference

Prepared by Steve Blatch, Corporate Director

North Norfolk District Council

Steve.Blatch@north-norfolk.gov.uk

01263 516232

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