Memorandum submitted by Global Marine Systems (FBEN 21)

 

Global Marine Systems, a UK company, has been a market leader in the laying of subsea cable and related engineering services for over 150 years. Our area of expertise within an offshore windfarm project is in the installation, burial and eventual maintenance of both the inter-field cables (the power cables which connect the grid of turbines to each other) as well as the export cables, which connect the entire array of turbines back to land and the power grid itself.

 

 

1.0 Executive Summary

1.1 Global Marine Systems (GMS), a market leader in the laying of subsea cable and related engineering services for over 150 years, is delighted to respond to the Energy and Climate Change Select Committee Inquiry, 'The Future of Britain's Electricity Networks'.

 

1.2 Our area of expertise within an offshore windfarm project is in the installation, burial and eventual maintenance of both the inter-field cables (the power cables which connect the grid of turbines to each other) as well as the export cables, which connect the entire array of turbines back to land and the power grid itself.

 

1.3 We firmly believe that the development of offshore wind power is core to the UK's future wellbeing and economic and environmental security.

 

1.4 The coastal geography of the UK and the ambitious targets set out by the Government present a real opportunity for the UK to take a lead in the development of offshore wind.

 

1.5 In order to ensure the growth and adoption of such technologies are not diminished or damaged by the current economic climate, continued clear support is needed from the Government. A holistic approach to the Transmission Regime is also necessary to ensure greater flexibility in the adoption of future technologies.

 

1.6 In addition, a stable and predictable regulatory regime is necessary in order to facilitate investments in offshore wind farms.

 

 

2.0 About GMS

2.1 Global Marine Systems, a British company, has been involved in laying subsea cable and related engineering services for over 150 years. Global Marine Systems is the privately owned merger of what once were the marine divisions of British telecommunications companies British Telecom and Cable & Wireless.

 

2.2 Global Marine Systems has two core business units, Telecommunications and Energy. The Energy unit has a focus on the installation and maintenance of subsea power cables and related engineering services. As part of this unit we have, over the past eight years performed a significant amount of work in the offshore windfarm market. Global Marine has been a key service provider on such projects in the UK as the Kentish Flats and Barrow offshore wind farms. We have also successfully completed projects throughout Europe such as Horns Rev, and we are currently completing the world's largest offshore wind farm, Horns Rev 2.

 

2.3 Specifically, our area of expertise within an offshore windfarm project is in the installation, burial and eventual maintenance of both the inter-field cables (the power cables which connect the grid of turbines to each other) as well as the export cables, which connect the entire array of turbines back to land and the power grid itself.

 

2.4 As a result of our unique record in delivering these projects, we believe that we are a leader amongst a very small group of companies in the industry who have meaningful experience successfully executing work such as this. We are one of a small group of British companies with demonstrated expertise in this specific area and a viable business currently operating in this strategically critical market.

 

 

3.0 Offshore Transmission Regime

- What are the issues the Government and regulator must address to establish a cost-effective offshore transmission regime?

- How can the regulatory framework ensure adequate network investment in light of the current credit crunch and recession?

 

3.1 We welcome and fully support the Government's commitment to 20% of electricity supply to come from renewable sources by 2020, and an 80% reduction in carbon emissions by 2050. Investment in non-polluting electricity generating sources is not only critical to meeting the UK's carbon reduction targets but also has the potential to form the basis of a major future growth area for UK plc.

 

3.2 In order to reach the Government's targets, we firmly believe that the development of offshore wind power is core to the future wellbeing of both the environment and the UK's economy. The Department of Energy and Climate Change (DECC) recently published a study of the UK's shores, which recommends that there is scope for between 5,000 and 7,000 more offshore wind turbines around the UK coast. DECC estimates that this would be enough to power the equivalent of almost all the homes in the UK and would make a significant contribution to renewable energy targets.

 

3.3 As recently set out in the Governments Low Carbon Industrial Strategy, the transformation to a low carbon society presents a valuable opportunity to not only convert industry to a low carbon philosophy, but also the skills sector that will support it. The creation of highly skilled, highly sought jobs is critical to the UK's low carbon industry. We have developed world-leading training facilities for our industry within the UK and believe that educational, government, and business interests should be aligned in a common and realistic effort to meet future skills needs in the low carbon economy of the future.

 

3.4 As the UK changes and adapts to a low carbon environment, so must the Transmission Regime. A recent report by National Grid concluded that £4.7 billion of investment is needed in the UK's electricity transmission grid to ensure that the network is prepared for new renewable infrastructure built by 2020.

 

3.5 We believe, given the current economic climate and with liquidity and investor confidence low, continued clear support is needed from the Government. In addition, a stable and predictable regulatory regime is necessary in order to facilitate investments in offshore wind farms.

 

3.6 The challenging economic climate notwithstanding, industry is keen to press ahead with the development of low carbon offshore generating capacity. This does however require clear signals from the UK government to support the investment environment.

 

3.7 In order to adopt and allow for a range of multiple technologies, a holistic approach to the Transmission Regime is of high importance. The framework should embrace a flexible approach to ensure that the network is effectively positioned for future growth.

 

3.8 In addition, in order to facilitate the introduction of greater offshore wind power, we firmly believe that a new regime should incorporate sufficient strengthening of the onshore grid.

 

3.9 GMS supports in principle the concept of greater interconnection with fellow EU member states through the establishment of a 'supergrid'. This will ensure maximum efficiency of offshore wind plant and minimize overcapacity.

 

 

4.0 Conclusion

4.1 We firmly believe that the development of offshore wind power is core to the UK's future wellbeing and economic and environmental security.

 

4.2 We look forward to continuing our work in the renewable sector across the UK and helping the Government reach its renewable deployment and carbon emissions reductions targets.

 

4.3 We hope that this outline of our experience in the adoption of offshore wind farms is helpful to your Inquiry. We would be very happy to meet with you to share our experiences of supporting and engaging in the UK's energy market.

 

March 2009