Lessons learned - teachings coming from Polish offshore wind and renewables development

This fall I’ve had a pleasure to take part in a few industry events in the Baltic region. Most were focused on experiences and areas which could be improved basing on lessons learned. During the last seminar on “Financing renewable energy projects in Latvia” organized by the Polish-Latvian Chamber of Commerce and Industry together with the Polish Embassy in Latvia we touched conclusions for Baltic states coming from Poland. In Poland there is an interesting insight discussion about conclusions of offshore wind phase 1 and improvements that can be applied to phase 2. Practical background and business approach strongly correspond with Ambiens vision, so I am glad to present our cases.

The main conclusions often appear to be consistent for all renewable technologies, but they tend to resonate more strongly in the case of offshore wind.

1. The maximum area framework in a liberal approach to spatial planning should be clearly defined. Detailed analyses and permits should be considered on a project-by-project basis in line with national implementations of EU directives giving the opportunity for a dynamic energy transition towards emission reduction and increased independence in the region and the European Union. It includes key energy transition policies initiatives, such as RePowerEU, GreenDeal and Fit for 55. From the practical point of view in Poland it means onshore wind regulation amendment from 700m into 500m as a reference of accepted distance, Maritime Spatial Plan update of 3rd Phase and zoning law clarification with effective linkage to other permits and schedules.
2. There is a need for regulatory streamlining and acceleration of permitting and a new, effective project approach to development. As we have seen in recent years in offshore wind in PL, faster project delivery to 'ready to build' status mitigates financial risks and supports FID. The EasyPermits tool could be a breakthrough in this context, it is a platform developed by Amazon Web Services (AWS) and 埃森哲 , with the cooperation of WindEurope and the consultation of Ambiens .
3. In large-scale, offshore, and strategic projects, it seems important to actively manage interfacing and responsibilities, both on the Project side and on the line with contractors and external support. A transparent and consistent approach to these issues can streamline purchasing processes, allow costs to be optimized and have a positive impact on comfort and long-term planning.
4. On environmental and social issues, it is imperative to add the standards and requirements of the Lenders to the perspective of agreement with the regional administration and the parties to cross-border proceedings. And this should be done as quickly as possible on the project life scale. It is important in approaching this workstream to address the expectations of potential partners and international financial institutions in advance. And, as we know, in offshore projects, bank consortia can include 25 institutions and ESAP actions reach 33 points. Requiring specific studies, plans and often dedicated new people. In this way, it is possible to build competitive advantages in the competition for funding, but also to improve projects within the framework of best standards and proven practices.
5. An important element of the ESG framework is social issues covering both impacted industries and local communities that may require resettlement. With this comes structured communication and the need for measurement and evaluation. At the same time, project activities such as the " Livelihood restoration framework" need to be integrated with the offshore sector deal led by Ministerstwo Klimatu i ?rodowiska .
6. When looking at the project comprehensively from the Lenders' perspective, it is useful to see the sectoral context, cumulative and transboundary impacts. At the same time, it is worth being aware of and including in the analyses and assessments of the supply chain, and associated investments, such as the connection, also in the onshore part, the installation port and O&M, but also the housing base and the employment structure of the contractors, not only the general contractors. Depending on the status, this must cover in more or less detail the development, construction, operation and decommissioning of the wind farm. In preparation, these issues can be addressed in advance in a Ambiens Vendor DD or GAP Analysis.
7. The approach to local content, i.e. the participation of local entrepreneurs in the supply chain, should also be reviewed. I don't know if there are many of them in phase 1, but it seems that there are less of them than policy makers assumed. I also have concerns about standards how domestic companies are treated when confronted with global players in the offshore wind industry. Let me take as examples, just from our advisory backyard, the security umbrella proposal made to me by well known world wide brand and the offer to subcontract the Ambiens Team by a global player as a "ghost writers". The question is if we do want phase 2 to look similar? Familiar questions where asked last days by Pawe? Weiner in Patryk Zbroja podcast and by Artur Ambro?ewicz in emotional post, here on LinkedIn.
8. Given the upcoming auctions for contracts for difference in Phase II of the Polish offshore wind, human resources and competence may prove to be an important issue as part of competitive advantages in partnering with seabed permits holders. Developing 10 new projects requires a huge number of experienced people.
9. Last but not least, we have no doubt that whatever the legal framework of permitting, the standards of developers or the expectations of Lenders, it is worth doing the best projects possible. This comes from 10H's experience - blocking onshore wind, respecting local communities and treating all stakeholders properly. This is in the wider interest of us all, hence the importance of collaboration and sharing experience in key areas.