GRID – the cost of time
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Wind Energy Engineering and Development &
Operations Firm
Founded 1995
Over 200 staff
Operate in 9 countries
Advised on over 100 projects (>16 GW of projects)
Developed 39 projects (>1,100 MW)
Constructed 57 projects (>900 MW)
Operate 14 projects (>200 MW)
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Focus on Engineering Project Management &
Operations
Built first project in Ireland in 1998 – Crockahenny, Co.
Donegal (5 MW)
Opened office in Dublin in 2002
Since 1998 have project managed 25% of total installed
capacity
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30 Projects completed
>250 MW of installed capacity operating
Offices in Malahide, Co. Dublin and Listowel Co. Kerry
25 professional staff in Ireland
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Electrical, Civil, Mechanical Engineers
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Stages of Grid Connection
Programme Drivers
Consequences of Delay - Case Study
Notification of Delay
Possible Improvements
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Connection Application
Connection Methodology
Connection Offer
Connection Design
Consenting
Procurement
Construction
Commissioning and Energisation
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Connection Application
Connection Methodology
Connection Offer
Timeframes governed by:
 Group processing
 Sub-group negotiations
 Offer modifications
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Connection Design
Consenting
Timeframes governed by:
 Non-contestable asset design
 Contestable shared asset design
 Underground / overhead?
 Landowner consent
 Planning consent
 Road opening licence procurement
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Procurement
Timeframes governed by:
 Non-contestable
Capital approval process (ESB Networks)
 Procurement process (e.g. OJEC)
 Long lead items (transformers, substation control
systems, HV equipment)
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Contestable
Functional specification
 Contractor selection
 Long lead items
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Construction
Timeframes governed by:
 Non-contestable
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Mobilisation of ESB contractors
Availability of ESB resources
Contestable
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Mobilisation of contestable works contractor
Contestable works contractor project
management
Detailed design approval by Eirgird
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Commissioning
Timeframes governed by:
 Project communication on ESB technical
requirements
 Availability of ESB commissioners
 Possibility of switch-out (time of year)
 Quality of contestable works contractors
works
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~30 MW wind farm
Financial close August 2005
WTGs delivery dates February 2006
Original energisation date agreed at
financial close March 2006
Delay in ordering of long lead time
equipment
Actual energisation date July 2006
Additional construction Insurance
 Project management Costs
 Temporary generation Costs
 Acceleration payment to part supplier
 Legal fees due to default
 Maintenance Costs for WTGs
 Interest on payments to WTG supplier
 Additional Interest during construction
TOTAL
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€20k
€40k
€32k
€50k
€80k
€100k
€250k
€325k
€847k
Other factors
 Lost revenue of ~€1.6 million
 Total losses ~€2.5 million
 Material damage to the WTGs due to
moisture (electronic components)
 Potential deemed take-over of the WTGs
 A lot of stress for the developer….
 Even more stress of the project manager!
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The earlier you know about a delay the
less it will cost
Offer
Design / Consenting
Financial Close
Shipment of wind turbines
Commissioning and Energisation
Things on the way:
 Contestability at distribution
 More commercial connection contracts
for DSO/TSO
 Tighter wayleaving process for
landowners
Other suggestions
 Better availability of commissioners
 Better access to designers
 Clearer reporting on progress
 Public awareness on the need for
infrastructure
 Public awareness on overhead line Vs
cable
 More responsible local politicians