Stakeholder Management on Scotland’s Norwegian
Interconnector Project
Edinburgh 16th of May 2012
Richard Blanchfield
NorthConnect UK PM & Head of Technical
Contents
1. NorthConnect Project Background
2. Internal Stakeholder Management
• Juggling an international JV project
3. External Stakeholder Management
• Juggling multiple international interests
NorthConnect Owners
Non-Norway
(50%)
Norway
(50%)
25%
16.7%
25%
16.7%
16.7%
Norwegian Partners
UK
Nordic
• Dominated by thermal
• Dominated by hydropower
+
(flexible production -> -
power (24h production > daily price fluctuations)
• Increase of wind power need for flexibility /
storage
seasonal price fluctuations)
• Dry years are a problem
• 50% of European storage
Direction of Energy Exports
Storage for night time
production
+Clean water power
replaces thermal energy
+-
At day
Daily
During night
In dry periods
Seasonal
In wet periods
+-
Additional energy will
be stored
Windy
Calm
Wind / Hydro
Interoperability
Facts & Figures
• Bi-directional VSC-HVDC technology
• 1400MW – ½ million homes (Glasgow)
• Converter stations
Aberdeenshire and the
Western Fjords
• 600 km (= Peterhead
to Manchester)
2011
•
•
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Business Plan
UK Landing
WP1
PreFEED
•
•
EIA / Surveys
Consents
• Subsea Survey
WP2
• Detail Design
Consultn.
• Procurement
Financial Close
Investment Decision
Contract Awards
Oct-21
WP3
Planning
Execution
Lead
Times
Installation &
Construction
7
Internal Stakeholder Management
Juggling an international Joint Venture project
JV / Project Company Governance
NCAS (BOARD)
Derrick Allan
SSE
Odd Øygarden
E-Co, CHAIR
Øyvind Stakkeland
Agder Energi
NCKS (EXECUTIVE)
Per Swenzen
Vattenfall
Øle Gabrielson
Lyse
Jo Viljam Drivdal
CEO / PM
Project Management Team (PMT)
9
Project Delivery Governance
Project Manager
Commercial
Department
Permitting
Department
Technical
Department
Norway
UK
Subsea
WP1
WP2
WP3
PH1
PH2
PH3
10
Too Many Cooks?
• Five organisations, with own systems processes &
Governance structures
• People at Board / PMT level from different companies,
mostly part-time seconded into NorthConnect
• Significant SSE involvement in UK & Agder Energi in
Norway

11
Governance & Teamwork
• Internal communications
are a challenge:
• 15 people in 10
Owners
Group
PMT
WP2
different locations
• Clarity of responsibility,
activities and reporting
• E-room file sharing
• Telcos & VC’s
• Targetted meetings
12
External Stakeholder Management
Juggling multiple international interests
Breadth & Depth
Scotland
Local
Norway
Residents
Council
Roads dept.
Residents
Kommune
Industry
Asset owners
Environml.
Aberdeenshr.
Energetica
NVE
Fisheries
MoD
Coastguard
MSP’s
Scottish Govt.
MOPE
Stattnet
Regional
National
Subsea
UK
EU
JNCC
Nat. Grid
Ofgem
DECC
Commission
ACER
ENTSO-E
14
Communications Strategy
•
•
•
•
•
•
Consistent message in all three markets
Create a good perception of the project
Process for PR and media handling
Gradual and balanced escalation of effort
Promote political dialogue
Communications
reference group
15
Techniques
Influence
Diagrams
Statnett as:
- Owner of ICs
- Close adviser for MOPE
- Adviser for NRA (NVE)
- Key input to construction
license, RE and FTL
applications
Ministry of Petroleum and Energy (MOPE)
•MOPE grants:
- Revenue Exemption (RE)
- Foreign Trade License (FTL)
• MOPE focus on political and socio economic issues
• Owner of Statnett
SN’s
Conflicting
roles
Statnett as TSO:
- Tie-in to the domestic grid as TSO
- Obligation for tie-in, but no time
limits....
- Assessment of grid implications
- Key input to Construction license,
REA and FTLA
NRA (NVE)
•grants construction licence, but reports
directly to MOPE
•focus on technical issues
•MOPE is the appeal body...
The key issues for permitting processes are the mixed roles of Statnett and the
conflict of interest of MOPE as owner and regulator
16
Techniques
Stakeholder
Positioning
Against
Consult
C2
Engage
E6
E15
E3
E7
E11
C4
E9
E8
B2
E2
D1
E4
E5
D5
A6
E10
D3
D2
D4
A1
E16
B1
A7
A4
Supportive
Stakeholder Position
E1
E12
C1
Inform
Mobilise
A2
E13
C3
E14
A3
Low
A5
High
Stakeholder Power / Influence
17
Techniques
Management Plan
United Kingdom Consultation Plan
(A) Political /
Governmental
(1) UK Government (Department for energy
and climate change) Westminster
(2) Scottish Government Ministers

Liaise / Inform



(3) Member of the Scottish Parliament Stewart Stevenson MSP
(4) Member of UK Parliament - Dr Eilidh
Whiteford MP
(5) Scottish First Minister - Alex Salmond
(6) Ministry of Defence

(7) Crown Estates Commissioners
(B) Local authorities
Lobbying
Roads/NRSWA
Crossings
Consultations
Achaeology
Ports & Harbour
Seabed Lease
Marine Licence
Land (Private)
Section 37
CAR
Land Drainage
Planning
Stakeholder
Grid Connection
Group
Interconnector
Consultee on Consents










(2) Boddam Community Council

Starting
When?
Derrick / Jo Viljam
May-12
DTS Consultant
Screening Letter
Feb-12
Derrick / Jo Viljam /
Rich B
By Whom?
Starting
When?
Mar-12
Ian Marchant and
Odd Oygarden ?
Jun-12
DTS Consultant
Screening Letter
Feb-12
Rich B / Rich W /
Dave
Apr-12
Rich B / Rich W
Jan-12
Apr-12
Rich B / Rich W
Jan-12
EIA Consultant
Screening Letter
EIA Consultant
Screening Letter


(1) Aberdeenshire Council
By Whom?


Apr-12
18
In Conclusion
Conclusions
• An important project for Scotland
• Defining project Governance, processes and
systems takes time
• Internal management is
equally important to
external management
• Its all about people and
relationships
Glen Coe
Hardanger Fjord
“From Wind to Hydro and back”
21