Offshor Wind D v lopm nt Pro r m OFFSHORE WIND ROADMAP FOR SRI LANKA FUNDED BY: © Jun 2023 | Int rn tion l B nk for R construction nd D v lopm nt / Th World B nk 1818 H Str t NW, W shin ton, DC 20433 T l phon : 202–473–1000; Int rn t: www.worldb nk.or This work is product of th World B nk Group with contributions iv n b th st ff nd consult nts list d in th Acknowl d m nts. Th findin s, int rpr t tions, nd conclusions xpr ss d in this work do not n c ss ril r fl ct th vi ws of th World B nk, its Bo rd of Ex cutiv Dir ctors, or th ov rnm nts th r pr s nt. Th World B nk do s not u r nt th ccur c of th d t includ d in this work. Nothin h r in sh ll constitut or b consid r d to b limit tion upon or w iv r of th privil s nd immuniti s of Th World B nk, ll of which r sp cific ll r s rv d. RIGHTS AND PERMISSIONS This work is v il bl und r th Cr tiv Commons Attribution 3.0 IGO lic ns (CC BY 3.0 IGO) http:// cr tiv commons.or /lic ns s/b /3.0/i o. Und r th Cr tiv Commons Attribution lic ns , ou r fr to cop , distribut , tr nsmit, nd d pt this work, includin for comm rci l purpos s, und r th followin conditions: Attribution—Pl s cit th work s follows: World B nk Group. 2023. Offshor Wind Ro dm p for Sri L nk , World B nk, W shin ton, DC. Lic ns : Cr tiv Commons Attribution CC BY 3.0 IGO Tr nsl tions—If ou cr t tr nsl tion of this work, pl s dd th followin discl im r lon with th ttribution: This tr nsl tion w s not cr t d b Th World B nk nd should not b consid r d n offici l World B nk tr nsl tion. Th World B nk sh ll not b li bl for n cont nt or rror in this tr nsl tion. Ad pt tions—If ou cr t n d pt tion of this work, pl s dd th followin discl im r lon with th ttribution: This is n d pt tion of n ori in l work b Th World B nk. Vi ws nd opinions xpr ss d in th d pt tion r th sol r sponsibilit of th uthor or uthors of th d pt tion nd r not ndors d b Th World B nk. Third-p rt cont nt—Th World B nk do s not n c ss ril own ch compon nt of th cont nt cont in d within th work. Th World B nk th r for do s not w rr nt th t th us of n third p rt -own d individu l compon nt or p rt cont in d in th work will not infrin on th ri hts of thos third p rti s. Th risk of cl ims r sultin from such infrin m nt r sts sol l with ou. If ou wish to r -us compon nt of th work, it is our r sponsibilit to d t rmin wh th r p rmission is n d d for th t r -us nd to obt in p rmission from th cop ri ht own r. Ex mpl s of compon nts c n includ , but r not limit d to, t bl s, fi ur s, or im s. All qu ri s on ri hts nd lic ns s should b ddr ss d to World B nk Public tions, Th World B nk Group, 1818 H Str t NW, W shin ton, DC 20433, USA; m il: pubri hts@worldb nk.or . PRODUCTION CREDITS Cop ditor | HUE Communic tions, LLC D si n r nd T p s ttin | HUE Communic tions, LLC All im s r m in th sol prop rt of th ir sourc nd m not b us d for n purpos without writt n p rmission from th sourc . CONTENTS List of Fi ur s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IV List of T bl s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VI Acknowl d m nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII Ex cutiv Summ r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IX 1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 2 B ck round . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1 Curr nt El ctricit S ctor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2 Futur El ctricit D m nd nd G n r tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.3 Onshor Wind in Sri L nk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.4 Economic Clim t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.5 Offshor H droc rbon Explor tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.6 Offshor Wind in Indi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.7 Driv rs for Est blishin Offshor Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3 K Findin s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 3.1 Suit bilit Ass ssm nt of Offshor Wind Ar s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3.2 Growth Sc n rios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.3 R ul tor Fr m work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.4 Fin nci l nd Economic An l sis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 3.5 H lth nd S f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 3.6 Grid Infr structur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 3.7 Port Infr structur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 3.8 Suppl Ch in. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4 P thfind r Proj ct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 4.1 Loc tions for P thfind r Proj ct. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 4.2 Procur m nt Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4.3 N xt St ps for D v lopm nt of P thfind r Proj ct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 I 5 Opportuniti s nd Ch ll n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 5.1 Opportuniti s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 5.2 Ch ll n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 6 Ro dm p nd R comm nd tions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 6.1 R comm nd tions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 6.2 Ro dm ps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Supportin Inform tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 7 Ass ssm nt of Offshor Wind Ar s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 7.1 S b d Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 7.2 Wind R sourc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 7.3 T chnic l, Environm nt l, nd Soci l Constr ints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 8 R ul tor Fr m work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 8.1 Ov rvi w of th R ul tor Fr m work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 8.2 M in Institutions nd L isl tion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 8.3 Pl nnin nd P rmittin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 8.4 Public Consult tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 8.5 L s nd L nd Ri hts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 8.6 M rk t Acc ss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 8.7 Int rn tion l R ul tor Exp ri nc s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 9 Fin nci l nd Economic An l sis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 9.1 Cost of En r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86 9.2 B nk bilit nd Int rn tion l Fin ncin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 9.3 Emplo m nt nd Economic B n fit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93 10 H lth nd S f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 10.1 H lth nd S f t Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98 10.2 Int rn tion l Guid nc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 10.3 B h vior l S f t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 10.4 GWO Tr inin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 10.5 Offshor H&S in Sri L nk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 11 Grid Infr structur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 11.1 Existin Pow r S st m. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 11.2 Pl nn d Up r d s nd Ext nsions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 11.3 Cons qu nc s of Addin Offshor Wind Pow r Pl nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 II Offshor Wind Ro dm p for Sri L nk 12 Port Infr structur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 12.1 Inl nd Infr structur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 12.2 Port R quir m nts for Offshor Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 12.3 An l sis of Pot nti l Inst ll tion Ports in Sri L nk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 12.4 Summ r M p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 13 Suppl Ch in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 13.1 Suppl ch in c t ori s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 13.2 D v lopm nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 13.3 Wind Turbin G n r tors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 13.4 B l nc of Pl nt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 13.5 Inst ll tion nd Commissionin V ss ls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 13.6 Op r tion nd M int n nc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 13.7 D commissionin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 13.8 Suppl Ch in Ass ssm nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 14 P thfind r Proj ct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 14.1 Loc tion Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 14.2 P thfind r Proj ct Conc pt L out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 14.3 AEP nd LCOE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 14.4 N xt St ps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 15 Pr p r tor Studi s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 15.1 Soil Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 15.2 M toc n Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 15.3 Wind Stud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 15.4 Environm nt l nd Soci l Imp ct Ass ssm nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 15.5 Grid Int r tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 15.6 Port Authorit Consult tion (short, m dium, nd lon t rm) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 16 St k hold rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 17 R f r nc s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171 Acron ms nd Abbr vi tions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 App ndix A – Sri L nk Priorit Biodiv rsit V lu s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Cont nts III LIST OF FIGURES Fi ur ES.1 Th thr pot nti l r s for offshor wind, includin th priorit r s to b consid r d for Sri L nk ’s first offshor proj cts — M nn r nd Putt l m. . . . . . . . . . . . . . . . . . . . .xi Fi ur ES.2 Imp ct of offshor wind in Sri L nk und r low nd hi h rowth sc n rios, p riod 2030 to 2050 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Fi ur ES.3 R pr s nt tiv tim lin for d v lopm nt work h d of proj ct t nd r comp tition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xvi Fi ur ES.4 Priorit th m s to cr t succ ssful offshor wind industr . . . . . . . . . . . . . . . . . . . . . . . . xvii Fi ur 2.1 Sri L nk pow r n r tion in 2021, showin p rc nt of tot l l ctricit n r t d [3] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Fi ur 2.2 Sri L nk ’s b s d m nd for c st for l ctricit b tw n 2022 nd 2046 [4]. . . . . . . . . . . . . 8 Fi ur 2.3 Br kdown of tot l inst ll d c p cit b tw n 2022 nd 2041, s p r th LTGEP 2022-2041. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Fi ur 2.4 Annu l v r onshor wind sp ds t 100m h i ht [9]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Fi ur 2.5 Loc tion, b r ion, of onshor wind f rms in Sri L nk (Sourc : www.th windpow r.n t). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Fi ur 3.1 Ar s with m n wind sp d hi h r th n 7.0m/s t 150m b s d on Glob l Wind Atl s [19]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Fi ur 3.2 Exclusion nd r striction on s for t chnic l, nvironm nt l, nd soci l s nsitiviti s . . . . . . 19 Fi ur 3.3 Combin d d t s ts on t chnic l conditions nd constr ints, us d to id ntif r s suit bl for offshor wind. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Fi ur 3.4 Pot nti l r s for flo tin nd fix d found tion offshor wind. . . . . . . . . . . . . . . . . . . . . . . . . 22 Fi ur 3.5 LCOE tr j ctori s in th Low Growth nd Hi h Growth sc n rios, includin r n of r pr s nt tiv LCOE du to unc rt inti s.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Fi ur 4.1 Ov rvi w of ctiviti s, comp titions, nd r sponsibiliti s und r th on - nd two-comp tition mod ls for offshor wind procur m nt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Fi ur 4.2 R pr s nt tiv tim lin for t pic l, ov rnm nt-l d d v lopm nt ctiviti s h d of proj ct t nd r comp tition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Fi ur 6.1 Low rowth sc n rio for offshor wind d v lopm nt in Sri L nk . . . . . . . . . . . . . . . . . . . . . . . . 45 Fi ur 6.2 Hi h rowth sc n rio for offshor wind d v lopm nt in Sri L nk . . . . . . . . . . . . . . . . . . . . . . .46 Fi ur 7.1 B th m tr offshor Sri L nk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Fi ur 7.2 Morpholo offshor Sri L nk showin n r ll r -sc l f tur s . . . . . . . . . . . . . . . . . . . . 51 Fi ur 7.3 Simplifi d olo ic l m p of Sri L nk pr s ntin th subdivision of th crust l b s m nt: th W nni Compl x, th Hi hl nd Compl x, th K du nn w Compl x ( r n), nd th Vij n Compl x s w ll s th thr s dim nt r b sins: th C uv r B sin, th M nn r B sin, nd th South rn B sin (L nk B sin) [29]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Fi ur 7.4 F ult lin s int rpr t d b s d on s ismic xplor tion surv s . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 IV Offshor Wind Ro dm p for Sri L nk Fi ur 7.5 Historic l rthqu k s from 1615 to 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 Fi ur 7.6 Storm incid nts round Sri L nk from rs 1841-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Fi ur 7.7 Ar s with m n wind sp d hi h r th n 7.0m/s t 150m b s d on Glob l Wind Atl s [19]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Fi ur 7.8 Prot ct d r s (PAs) in Sri L nk with m rin compon nts. . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Fi ur 7.9 Int rn tion ll R co nis d Ar s (IRAs) in Sri L nk with m rin compon nts . . . . . . . . . . . 61 Fi ur 7.10 N stin b ch s for turtl s with 5km buff r on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Fi ur 7.11 Distribution of thr t n d m rin h bit ts (cor l r fs, s r ss, nd m n rov s) in Sri L nk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Fi ur 7.12 Soci l nd t chnic l constr ints for offshor d v lopm nt in Sri L nk .. . . . . . . . . . . . . . . . .66 Fi ur 7.13 Pot nti l r s for flo tin nd fix d found tion offshor wind. Not , xclusion on s r not shown but h v b n r mov d from consid r tion. . . . . . . . . . . . . . . . . . . . 67 Fi ur 8.1 K l ctricit s ctor n r tion, tr nsmission, nd distribution pl rs [23]. . . . . . . . . . . . . 72 Fi ur 9.1 LCOE stim t s d p ndin on wind r sourc nd WACC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 Fi ur 9.2 LCOE tr j ctori s in th Low Growth nd Hi h Growth sc n rios, includin r n of r pr s nt tiv LCOE du to unc rt inti s.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89 Fi ur 9.3 Cumul tiv lif tim GVA from offshor wind inv stm nts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 Fi ur 9.4 Accumul t d loc l mplo m nt ff cts from offshor wind inv stm nt.. . . . . . . . . . . . . . . . .96 Fi ur 10.1 Ex mpl of risk ss ssm nt nd risk r duction proc ss (Europ n St nd rd, 2018).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100 Fi ur 11.1 M p of Sri L nk n r tion pl nt nd th tr nsmission s st m [66]. . . . . . . . . . . . . . . . . .106 Fi ur 11.2 Pot nti l int rconn ction b tw n Sri L nk nd Indi [67]. . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Fi ur 11.3 A summ r of th m in PtX t chnolo p thw s for v rious d m nds. . . . . . . . . . . . . . . . 114 Fi ur 12.1 WTG inst ll tion v ss l t s il w from h rbour, c rr in th tow rs, n c ll s, nd bl d s for two WTGs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Fi ur 12.2 Bl d s xt ndin ov r th d ck of th WTG inst ll tion v ss l. . . . . . . . . . . . . . . . . . . . . . . . 117 Fi ur 12.3 Cr n s on v ss l liftin found tions f d for inst ll tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Fi ur 12.4 Esbj r port vi w from th Sv n n (D nm rk) rd r for offshor wind ctiviti s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Fi ur 12.5 WTG mount d on s mi-subm rsibl found tion flo t d dir ctl t qu sid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Fi ur 12.6 Ov rvi w of th port of Colombo [76]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Fi ur 12.7 H mb ntot port pl nn d industri l r s [78]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Fi ur 12.8 Loc tion of pot nti l ports, includin 200km r dius, nd Ad m’s Brid . . . . . . . . . . . . . . 128 Fi ur 13.1 Distribution of suppl ch in m in c t ori s on ov r ll costs s p rc nt of LCOE ov r proj ct’s lif (Sourc d t : BVG Associ t s [49]). . . . . . . . . . . . . . . . . . . . . . . 129 Fi ur 13.2 K l m nts of th offshor wind suppl ch in (Sourc : COWI). . . . . . . . . . . . . . . . . . . . . . . 131 Cont nts V Fi ur 13.3 Evolution of WTG si . Sourc : GWEC [81].. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Fi ur 13.4 Bl d s r d for tr nsport tion t th port. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Fi ur 13.5 V st s V236 15mw protot p n c ll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Fi ur 13.6 Monopil rd t th Port of Rott rd m. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Fi ur 13.7 J ck ts b in tow d to sit (Sourc : COWI).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Fi ur 13.8 Offshor subst tion t Bors ll B t Wind F rm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Fi ur 13.9 WTG inst ll tion v ss l Bold T rn (Sourc : Fr d. Ols n Windc rri r). . . . . . . . . . . . . . . . . . . 144 Fi ur 13.10 C bl inst ll tion v ss l (Sourc : V n Oord). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Fi ur 13.11 Hi h sp d s rvic v ss l (Sourc : COWI).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Fi ur 13.12 Offshor WTG t chnici n cc ssin WTG (Sourc : ORE C t pult). . . . . . . . . . . . . . . . . . 147 Fi ur 14.1 Loc tion l pot nti l for fix d bottom (h tch d) nd flo tin (dott d) offshor wind in Sri L nk . R d m rkin s indic t r striction on s for t chnic l, nvironm nt l, nd soci l constr ints. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Fi ur 14.2 Ar 1 (North) nd Option A “Gulf of M nn r” (bl ck ov l). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Fi ur 14.3 Ar 2 nd option B “Putt l m”.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Fi ur 14.4 Ar 3 nd option C “H mb ntot ”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Fi ur 14.5 Illustr tiv l out of 500MW p thfind r proj ct consistin of 42 x 12MW WTGs t 150m HH, lon with fi ur showin th wind ros for th r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Fi ur 14.6 Illustr tion of hi h-l v l l ctric l conc pt for n OWF.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 LIST OF TABLES T bl ES.1 Ch r ct ristics of th thr pot nti l r s suit bl for offshor wind d v lopm nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii T bl ES.2 Ov rvi w of cumul tiv inst ll d c p cit of offshor wind b 2050 in low nd hi h rowth sc n rio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiv T bl 2.1 Pow r n r tion st tistics for 2021 [3]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 T bl 3.1 T chnic l, nvironm nt l, nd soci l s nsitiviti s within xclusion nd r striction on s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 T bl 3.2 Ch r ct ristics of m jor offshor wind r s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 T bl 3.3 Ov rvi w of inst ll d c p cit of offshor wind b 2050 und r th low nd hi h rowth sc n rios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 T bl 3.4 Estim t s of cumul tiv , lif tim GVA from diff r nt offshor wind c p citi s und r th two rowth sc n rios in 2030. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 T bl 3.5 Loc l mplo m nt ff ct from offshor wind inv stm nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 T bl 3.6 Summ r of suit bilit of pot nti l ports for bottom-fix d inst ll tion. . . . . . . . . . . . . . . . . . .30 T bl 3.7 Ev lu tion of Sri L nk n suppl ch in r din ss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 VI Offshor Wind Ro dm p for Sri L nk T bl 4.1 Ov rvi w of k consid r tions for th thr options for loc tion of p thfind r proj ct.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 T bl 4.2 AEP stim t for 500MW p thfind r proj ct in th Gulf of M nn r. . . . . . . . . . . . . . . . . . . . . . .36 T bl 7.1 S ffir-Simpson Hurric n Wind Sc l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 T bl 9.1 Input ssumptions for th LCOE stim tion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 T bl 9.2 W i ht d s ctors for th inv stm nts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93 T bl 9.3 Tot l lif tim , dir ct inv stm nt n d d d p ndin on tot l inst ll d c p cit in Sri L nk .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 T bl 9.4 Loc l Cont nt Sh r of th construction nd O&M of n OWF. . . . . . . . . . . . . . . . . . . . . . . . . . .95 T bl 9.5 Imp ct on dom stic GVA in 2030. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 T bl 9.6 Loc l mplo m nt ff ct from offshor wind inv stm nt.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 T bl 10.1 Ex mpl h rds nd d n rous ctiviti s in offshor wind proj cts [53].. . . . . . . . . . . . . . . .98 T bl 10.2 T sk Risk Ass ssm nt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99 T bl 10.3 Ov rvi w of int rn tion l uid nc on H&S in offshor wind. . . . . . . . . . . . . . . . . . . . . . . . . . . 101 T bl 11.1 M jor D v lopm nt Pl n for th 400kV nd 220kV S st m (Sourc : LTTDP 2015-2024). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .108 T bl 12.1 Summ r of port r quir m nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 T bl 12.2 G p n l sis of Colombo port. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 T bl 12.3 G p n l sis of G ll port. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 T bl 12.4 G p n l sis of H mb ntot port. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 T bl 12.5 G p n l sis of Trincom l port (Ashrof J tt ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 T bl 12.6 G p n l sis of Port of K nk s nuthur i ( ft r compl tion of pl nn d d v lopm nts). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 T bl 13.1 Ov rvi w of curr nt nd futur offshor WTG mod ls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 T bl 13.2 Scorin m tric us d to v lu t th suppl ch in in Sri L nk . . . . . . . . . . . . . . . . . . . . . . . . . 149 T bl 13.3 Ev lu tion of Sri L nk n suppl ch in r din ss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 T bl 14.1 Ov rvi w of k consid r tions for th thr options for loc tion of p thfind r proj ct.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 T bl 14.2 AEP stim t for 500MW p thfind r proj ct in th Gulf of M nn r. . . . . . . . . . . . . . . . . . . . .160 T bl 16.1 List of k st k hold rs for offshor wind d v lopm nt in Sri L nk . . . . . . . . . . . . . . . . . . . 169 Cont nts VII ACKNOWLEDGEMENTS This r port is n output of th World B nk Group’s (WBG) Offshor Wind D v lopm nt Pro r m, jointl l d b th En r S ctor M n m nt Assist nc Pro r m (ESMAP) nd th Int rn tion l Fin nc Corpor tion (IFC), which ims to cc l r t offshor wind d v lopm nt in m r in m rk ts. This r port w s pr p r d und r contr ct to th World B nk, b COWI in ssoci tion with L nk H dr ulic Institut , EML Consult nts, nd Th Biodiv rsit Consult nc (TBC). W p rticul rl wish to th nk th princip l uthors, Erik Mohr, Ivo G or i v, Anit Jür ns, Christoph r Murr , nd Mort n Hørm nn, for th ir xp rt knowl d nd h rd work. D v lopm nt of th r port w s l d b M rk L bourn (ESMAP/World B nk) nd J ri V r n n (World B nk), with ddition l contributions from S n Whitt k r (IFC) nd Chris Llo d (ESMAP/World B nk). An int rn l p r-r vi w w s dili ntl c rri d out b Oliv r Kni ht (World B nk), Y s min Orucu (World B nk), nd T run Sh nk r (IFC). W th nk th m for th ir tim nd v lu bl f db ck. W r xc ption ll r t ful to th wid r n of public nd priv t st k hold rs th t provid d f db ck durin th r port’s xt rn l consult tion proc ss. Fundin for this ro dm p w s n rousl provid d b ESMAP, p rtn rship b tw n th World B nk nd 24 p rtn rs to h lp low nd middl -incom countri s r duc pov rt nd boost rowth throu h sust in bl n r solutions. ESMAP’s n l tic l nd dvisor s rvic s r full int r t d within th World B nk’s countr fin ncin nd polic di lo u in th n r s ctor. Throu h th WBG, ESMAP works to cc l r t th n r tr nsition r quir d to chi v Sust in bl D v lopm nt Go l 7 (SDG7) to nsur cc ss to fford bl , r li bl , sust in bl , nd mod rn n r for ll. It h lps to sh p WBG str t i s nd pro r ms to chi v th WBG Clim t Ch n Action Pl n t r ts. Addition l fundin for this work w s provid d b PROBLUE, which is Multi-Donor Trust Fund, hous d t th World B nk, th t supports th d v lopm nt of int r t d, sust in bl , nd h lth m rin nd co st l r sourc s. VIII EXECUTIVE SUMMARY This ro dm p provid s str t ic n l sis of th offshor wind d v lopm nt pot nti l in Sri L nk , consid rin th opportuniti s nd ch ll n s und r diff r nt offshor wind rowth sc n rios. It is int nd d to provid vid nc to support th Gov rnm nt of Sri L nk in st blishin polic , r ul tions, proc ss s, nd infr structur to succ ssfull d plo offshor wind. Th ro dm p r port w s initi t d b th World B nk Group und r its Offshor Wind D v lopm nt Pro r m, which ims to cc l r t offshor wind d v lopm nt in m r in m rk ts. Th ro dm p w s fund d b th En r S ctor M n m nt Assist nc Pro r m (ESMAP) with support from th World B nk’s blu conom pro r m, PROBLUE. RATIONALE FOR OFFSHORE WIND IN SRI LANKA Sri L nk h s ood n tur l conditions for offshor wind nd th r is lr d priv t s ctor int r st in d v lopin proj cts. Sri L nk h s n opportunit to us this dom stic r n w bl n r r sourc s p rt of its tr nsition to n t- ro c rbon nd to h lp r duc th conomic burd n from fossil fu l imports. Th m in driv rs for d v lopin offshor wind in Sri L nk includ : ■ D c rboni tion: Th Gov rnm nt of Sri L nk h s s t o l of 70 p rc nt of l ctricit n r tion from r n w bl sourc s in 2030 nd to chi v c rbon n utr lit in l ctricit n r tion b 2050. Furth rmor , Sri L nk ’s N tion ll D t rmin d Contributions (NDCs) und r th P ris A r m nt includ commitm nt of no c p cit ddition of co l pow r pl nts. In 2021, round 48 p rc nt of Sri L nk ’s l ctricit w s suppli d b r n w bl r sourc s ( lmost ntir l h dro) nd th r st of th suppl w s domin t d b oil nd co l-fir d th rm l pow r. El ctricit d m nd is lso xp ct d to row b n nnu l r t of fiv p rc nt for th comin 20 rs. As individu l onshor wind nd sol r PV proj cts in Sri L nk to d t h v t nd d to b sm ll, nd l nd is pr cious r sourc , th ir d plo m nt r t could b insuffici nt to full m t th 2030 t r t. Offshor wind h s th pot nti l to provid l r -sc l contribution to h lp chi v th ov rnm nt’s d c rboni tion t r ts, sp ci ll in th lon r t rm. ■ S curit of suppl : All of Sri L nk ’s h droc rbon fu ls r import d. This pl c s l r risk on th s curit of suppl nd fford bilit of th m jorit of th countr ’s l ctricit n r tion. This risk w s r li d in 2022, with fu l short s nd hi h pric s. Tr nsitionin to dom stic sourc s of n r , p rticul rl r n w bl n r , will provid r t r n r s curit . Sri L nk ’s +50 i w tts (GW) of offshor wind r sourc s off r n bund nt dom stic suppl of n r nd could h lp improv th countr ’s n r s curit . ■ Economic b n fits: Th countr ’s d p nd nc on import d fossil fu ls pl c s l r burd n on its for i n r s rv s; th d pl tion of th s r s rv s l d to th conomic crisis in 2022. Tr nsitionin to dom stic sourc s of n r , p rticul rl r n w bl n r , c n h lp to r duc th burd n nd r duc th tr d imb l nc , th r b b n fittin th conom . Furth rmor , th d v lopm nt IX of offshor wind could provid subst nti l contribution to th conom ; for x mpl , ov r th lif tim of 500 m w tt (MW) offshor wind f rm, th Sri L nk n conom could b n fit from pproxim t l US$570 million of ross v lu dd d (GVA) throu h loc l inv stm nt nd mplo m nt. This could build on Sri L nk ’s m ritim h rit nd m rin c p biliti s, h lpin to div rsif th loc l industr , ship rds, nd port f ciliti s. ■ En r xports: An l ctric l int rconn ctor b tw n Sri L nk nd Indi could b n fit both countri s nd with th ddition of l r -sc l offshor wind, Sri L nk could b com n n r xport r, p rticul rl t tim s wh r suppl xc ds loc l d m nd. This would provid n w r v nu str m for th countr nd, s mor loc l c p cit is dd d, this xport pot nti l nd r v nu could incr s . Th s l of pow r to consum rs conn ct d to th Indi n rid ( . ., B n l d sh) could lso b consid r d nd would op n up mor offt k possibiliti s. In th futur , xc ss l ctricit n r tion could lso b us d to produc r n h dro n nd oth r ro- c rbon n r v ctors such s mmoni . Th s products could b sold to d c rboni m ritim tr nsport tion, for x mpl . Th conomics of this opportunit will n d to b ss ss d s r n h dro n t chnolo , nd th m rk ts for it, m tur . How v r, it is lik l to b lon r-t rm opportunit nd unlik l to f tur in th busin ss c s for th countr ’s first proj cts. ■ R ion l coop r tion: Indi is xplorin its offshor wind r sourc s nd t r ts th d plo m nt of 30GW of c p cit b 2030. Th Indi n st t of T mil N du, which h s Indi ’s b st r sourc s, is th clos st to Sri L nk nd, durin 2023, th Gov rnm nt of Indi int nds to w rd s b d l s s for t l st 4GW c p cit in this st t , with proj cts xp ct d to comm nc construction b tw n 2028 nd 2030. R ion l coop r tion b tw n th s two futur m rk ts could b mutu ll b n fici l. Unl ss si nific nt int rconn ctor c p cit with Indi is built ov r tim , Sri L nk ’s tot l m rk t si will b r l tiv l sm ll (<5GW) b th industr ’s st nd rds but, wh n consid r d in combin tion with th d v lopm nt in T mil N du, it b com s mor ttr ctiv for d v lop rs, s w ll s port nd suppl ch in inv stm nt. This could h lp to r duc th costs of proj cts in both countri s nd incr s loc l conomic b n fits in Sri L nk . Simil rl , d v lopm nt in Sri L nk could provid ddition l m rk t opportuniti s for th Indi n suppl ch in. ■ Avoidin l nd us : Althou h Sri L nk is r l tiv l l r isl nd, it still h s limit d sp c nd th r r m n comp tin us s for l nd, p rticul rl ricultur which is n import nt s ctor for th isl nd’s conom . Unlik l r -sc l sol r PV nd onshor wind proj cts, offshor wind c n void usin l r r s of l nd, r ducin th d m nd for onshor r n w bl n r sit s. SRI LANKA’S OFFSHORE WIND POTENTIAL Sri L nk h s ood conditions for offshor wind nd its loc tion l pot nti l is stim t d t 56GW. This includ s 27GW of fix d offshor wind in sh llow w t rs (l ss th n 50 m t rs) nd 29GW of flo tin offshor wind in d p r w t rs (b tw n 50 nd 1,000 m t rs). An l sis for this ro dm p us d xistin sp ti l d t to ch r ct ri Sri L nk ’s offshor wind r sourc s nd th pot nti l constr ints to d v lopm nt. It ss ss d wid r n of nvironm nt l, soci l, nd t chnic l issu s to id ntif t chnic ll ttr ctiv initi l xplor tion r s th t, b s d on th d t v il bl , r lik l to h v low r n tiv imp cts ssoci t d with d v lopm nt. X Offshor Wind Ro dm p for Sri L nk Th r r thr bro d r s suit bl for offshor wind d v lopm nt, but th w st rn nd south rn co sts h v th most n r tic wind sp ds nd suit bl t chnic l conditions. Th m p in Fi ur ES.1 shows th s thr r s nd T bl ES.1 provid s summ r of th ir offshor wind pot nti l. Ar s with th hi h st nvironm nt l or soci l s nsitiviti s h v b n xclud d to void un cc pt bl dv rs imp cts. Th r r m n co st l nd m rin r s th t h v si nific nt nvironm nt l, soci l, nd t chnic l s nsitiviti s th t h v b n c t ori d s ‘r striction on s.’ Offshor wind d v lopm nt m b possibl in th s on s, but it is lik l th t subst nti l m sur s will b r quir d to m n nd miti t dv rs imp cts. FIGURE ES.1: THE THREE POTENTIAL AREAS FOR OFFSHORE WIND, INCLUDING THE PRIORITY AREAS TO BE CONSIDERED FOR SRI LANKA’S FIRST OFFSHORE PROJECTS — MANNAR AND PUTTALAM. EXECUTIVE SUMMARY XI TABLE ES.1: CHARACTERISTICS OF THE THREE POTENTIAL AREAS SUITABLE FOR OFFSHORE WIND DEVELOPMENT. T pic l Wind Fix d Pot nti l Flo tin Pot nti l Sp d t 150m km2 GW km2 GW m/s Ar 1: North 4,564 18 3,697 15 7-9 Ar 2: W st 1,027 4 624 2 7-8.5 Ar 3: South st 1,336 5 2,947 12 7-9 TOTAL 6,927 27 7,268 29 Not ll 56GW of offshor wind pot nti l will b d v lop d du to pr ctic l nd cost limit tions. Th stim t of 56GW is b s d on hi h-l v l n l sis usin xistin sp ti l d t nd th r r si nific nt ps in th d t v il bl . Futur studi s nd r s rch r n d d to b tt r und rst nd th f sibilit of offshor wind d v lopm nt in Sri L nk ’s w t rs nd fill th s d t ps. As offshor wind c p cit rows, th cumul tiv imp ct of multipl proj cts m limit furth r d v lopm nt. Furth rmor , not ll of th r sourc id ntifi d will b conomic ll f sibl , sp ci ll r s with low r wind sp ds nd d p r w t rs. D spit th s ch ll n s, v n sm ll portion of th offshor wind r sourc id ntifi d in this ro dm p could provid si nific nt contribution to Sri L nk ’s n r mix nd pr s nt promisin n w opportunit for th countr . SCENARIOS FOR OFFSHORE WIND DEPLOYMENT To illustr t possibl d v lopm nt p ths for offshor wind in Sri L nk , two d plo m nt sc n rios h v b n d v lop d — low nd hi h rowth sc n rio (s T bl ES.2 for summ r ). Th purpos of th s sc n rios is to illustr t th pot nti l ff ct of industr sc l on cost, consum r b n fit, nvironm nt l nd soci l risks, nd conomic imp ct. Th sc n rios r b s d on f db ck from st k hold rs, ss ssm nts of th st t of offshor d v lopm nt tod , st t m nts on th politic l spir tions of Sri L nk , nd n ss ssm nt of th ov r ll pot nti l for offshor wind in th countr . Th w r not st blish d or t st d throu h pow r n r tion pl nnin or mod llin ; th ro dm p r comm nds this s noth r priorit n xt st p. Und r ith r sc n rio, b round 2030, Sri L nk could commission its first offshor wind f rms, d v lopin th skills nd xp ri nc n d d for furth r xp nsion post 2030. Both sc n rios will r quir clos coll bor tion b tw n public nd priv t st k hold rs nd fin nci l d riskin from int rn tion l donors nd fin nci l institutions. It is r comm nd d th t th Gov rnm nt of Sri L nk s ts both short-t rm (2030) nd lon -t rm (2050) offshor wind t r ts nd m k s m ndm nts to st blish supportiv r ul tor fr m work. Th two d v lopm nt sc n rios r summ ri d s follows: ■ Low Growth Sc n rio. Th Low Growth Sc n rio ssum s mod st d plo m nt of offshor wind c p cit , with 0.5GW b 2030, 1GW b 2040, nd 2GW tot l b 2050. This would b th quiv l nt of fiv p rc nt of Sri L nk ’s n r tion c p cit in 2030, nd bout six p rc nt in 2040. An inst ll d c p cit of 500MW b 2030 is stim t d to void b tw n 0.85 nd 1.0 million m tric tons of CO2 missions p r r nd, ov r th lif c cl of th proj ct, could support mplo m nt up to 25,000 full-tim quiv l nt (FTE) dir ct nd indir ct mplo m nt for th loc l communiti s. XII Offshor Wind Ro dm p for Sri L nk Assumin th t ppropri t d riskin r duc s th cost of c pit l nd th t clim t funds or oth r conc ssion l sourc s c n b mobili d, th l v li d cost of n r (LCOE) for first 500MW proj ct is stim t d to b US$75 to 90 p r m w tt hour (MWh). As th industr continu s to m tur nd th xp ri nc of d plo in offshor wind in Sri L nk r duc s risk for subs qu nt proj cts, th LCOE is xp ct d to r duc for subs qu nt proj cts nd could r ch US$60 p r MWh b 2050. ■ Hi h Growth Sc n rio. Th Hi h Growth Sc n rio ssum s l r r ccumul t d inst ll d c p cit of 1GW in 2030, 2.5GW in 2040, nd 4GW in 2050. This would b th quiv l nt of 10 p rc nt of n r tion c p cit in 2030, nd bout 15 p rc nt in 2040. An inst ll d c p cit of 1GW b 2030 is stim t d to void b tw n 1.7 nd 2.0 million m tric tons of CO2 missions p r r. Ov r its lif c cl 1GW of c p cit could support mplo m nt up to 57,600 full-tim quiv l nt (FTE) dir ct nd indir ct mplo m nt for th loc l communiti s. Sinc 1GW in 2030 is not suffici nt to d v lop loc l suppl ch in or in conomi s of sc l , th LCOE is xp ct d to h v th s m r n s for th Low Growth Sc n rio. Th r for , th b n fits of l r r d plo m nt sc l r lik l to b s n ft r 2030. Post 2030, th LCOE could f ll b low US$60 p r MWh b 2040 nd b pproxim t l US$50 p r MWh b 2050. This sc n rio xplor s n int rconn ction link with Indi to xport xc ss suppl of l ctricit , s w ll s th production of r n h dro n in th lon r-t rm. How v r, th conomics of h dro n n r tion would n d to b ss ss d nd d p nd, mon oth r thin s, on t chnolo nd m rk t d v lopm nts. It lso builds upon th id of d v lopin r ion l p rtn rships with Chin , Vi tn m, nd Indi to for o dom stic suppl ch in constr ints. To inc ntivi d v lop rs, th r ul tor found tion for offshor wind in Sri L nk must b str mlin d to nsur tr nsp r nt nd comp titiv procur m nt rout s. Furth rmor , offshor wind should b incorpor t d into th lon -t rm pl n for xp ndin nd r inforcin th tr nsmission rid, t kin into ccount th l r sc l of n r tion. FIGURE ES.2: IMPACT OF OFFSHORE WIND IN SRI LANKA UNDER LOW AND HIGH GROWTH SCENARIOS, PERIOD 2030 TO 20501 . Low Growth Sc n rio Hi h Growth Sc n rio C p cit b 2030 0.5GW C p cit b 2030 1GW P rc nt of n r tion P rc nt of n r tion 5% 10% c p cit in 2030 c p cit in 2030 P rc nt of l ctricit P rc nt of l ctricit d m nd m t b offshor 8% d m nd m t b offshor 17% wind 2030 wind 2030 Annu l CO2 missions Annu l CO2 missions 0.85 to 1.0 million m tric tons 1.7 to 2.0 million m tric tons void d b 2030 void d b 2030 C p cit b 2040 1GW C p cit b 2040 2.5GW P rc nt of n r tion P rc nt of n r tion 6% 15% c p cit in 2040 c p cit in 2040 P rc nt of l ctricit P rc nt of l ctricit d m nd m t b offshor 15% d m nd m t b offshor 26% wind 2040 wind 2040 C p cit b 2050 2GW C p cit b 2050 4GW Low nd Hi h Growth Sc n rio LCOE b 2030 US$75-90 p r MWh LCOE b 2030 US$75-90 p r MWh $ $ LCOE b 2050 US$50-60 p r MWh LCOE b 2050 US$50-60 p r MWh 1 All fi ur s r cumul tiv ov r th p riod 2030 to 2050, unl ss st t d. EXECUTIVE SUMMARY XIII TABLE ES.2: OVERVIEW OF CUMULATIVE INSTALLED CAPACITY OF OFFSHORE WIND BY 2050 IN LOW AND HIGH GROWTH SCENARIO. Offshor Wind B 2030 B 2040 B 2050 Low rowth (cumul tiv ) 0.5GW 1GW 2GW Bottom-fix d 0.5GW 1GW 1.5GW Flo tin 0GW 0GW 0.5GW Hi h rowth (cumul tiv ) 1GW 2.5GW 4GW Bottom-fix d 1GW 2GW 3GW Flo tin 0GW 0.5GW 1GW Th s two sc n rios r h poth tic l nd w r d vis d to d monstr t th imp cts of ov rnm nt polic nd ctions. Th r for , th ctu l volum s of offshor wind inst ll d in Sri L nk will lik l diff r from th s sc n rios, both in t rms of ov r ll volum nd ph sin of inst ll tion. Th hi h rowth sc n rio should not b s n s c ilin ; should th ov rnm nt nd oth r st k hold rs follow th r comm nd tions in this ro dm p, th r is pot nti l for offshor wind to xc d this sc n rio, sp ci ll if pow r int rconn ctor with Indi is construct d. CHALLENGES FOR DEVELOPING OFFSHORE WIND Whil th r r num rous ch ll n s to d v lopin offshor wind, th s r common to m n countri s lookin to d plo this t chnolo for th first tim . Som of th m in ch ll n s includ : ■ Th countr is curr ntl xp ri ncin s v r conomic crisis. Un bl to s rvic its hi h d bt costs, it nnounc d d bt mor torium in April 2022. A l r tr d imb l nc , x c rb t d b xp nsiv fossil fu l import costs, contribut d to th crisis. Tr nsitionin to r n w bl n r nd th r b r ducin fu l imports is xp ct d to b n import nt ction in th countr ’s r cov r . ■ Offshor wind h s hi h r cost th n onshor wind nd sol r PV which could low r int r st to st rt d v lopin th offshor wind industr in tim l m nn r. How v r, th r li bl pot nti l of onshor r n w bl s m not b suffici nt to m t th countr ’s n r n ds nd d c rboni tion obj ctiv s b 2030 nd b ond. Sinc offshor wind is n ttr ctiv option to r mp-up r n w bl n r tion in Sri L nk , th d v lopm nt of both onshor nd offshor r n w bl s n ds to b vi w d holistic ll to r ch th countr ’s mbitious o ls. ■ Th dom stic suppl ch in pot nti l is limit d. Sri L nk would th r for b hi hl d p nd nt on int rn tion l suppli rs nd d v lop rs for quipm nt nd m t ri ls. Th r l tiv l sm ll volum of offshor wind xp ct d in Sri L nk its lf do s not off r n tur l inc ntiv s to loc li th suppl ch in si nific ntl . How v r, th much l r r volum of offshor wind d v lopm nt in th r ion off rs pot nti l for suppl ch in d v lopm nt in th r ion, includin xport opportuniti s for Sri L nk . ■ Sri L nk h s no tr ck r cord in offshor wind. Th countr non th l ss h s som c p biliti s in p rmittin nd infr structur d v lopm nt, s w ll s op r tion nd m int n nc (O&M) in r l t d s ctors, such s onshor wind nd onshor l ctric l infr structur , s w ll s offshor oil nd s xplor tion. XIV Offshor Wind Ro dm p for Sri L nk ■ Port infr structur n ds to b prop rl ss ss d nd up r d d. Th ports of Colombo nd H mb ntot c n b up r d d to suit th r quir m nts of offshor wind inst ll tion op r tions nd sp ci li d v ss ls. Trincom l nd K nk s nuthur i, how v r, would n d m jor up r d s to b suit bl . C p bl ports could lso llow th possibilit of suppl in th Indi n offshor wind industr . ■ No d dic t d offshor wind r ul tor nd institution l fr m work h s b n dopt d. Th xistin l l nd r ul tor s st m is prim ril r d tow rds sm ll r sc l , onshor r n w bl proj cts, which do s not provid th n d d cl rit nd c rt int sp ci ll with r rd to pl nnin nd p rmittin . ■ Th tr nsmission s st m r quir s str n th nin in consid r tion of th offshor wind c p citi s to b dd d. Addin l r offshor wind f rms ch will h v si nific nt imp ct on th tr nsmission s st m. To b bl to h ndl this r mp-up, th r is n d for prop r pl nnin nd inv stm nts in rid infr structur to provid th n c ss r up r d s. ■ L r CAPEX nd insuffici nt nd hi h cost of dom stic c pit l r ch ll n s to n fford bl cost of l ctricit from Sri L nk ’s first offshor wind d v lopm nts. Th cost of c pit l from Sri L nk n b nks is t pic ll s hi h s 15 p rc nt. Loc l b nks will lik l not b bl to provid lo ns t th sc l nd with th t nor n d d for offshor wind. Int rn tion l c pit l will b n d d to fin nc proj cts nd cc ss to low-cost conc ssion l fin nc will b ss nti l to r duc th cost of n r of th first offshor wind proj cts. RECOMMENDED APPROACH Althou h Sri L nk h s cl r opportunit to d plo offshor wind n r tion, th r r import nt t chnic l nd conomic ch ll n s nd risks which c n m k th opportunit l ss ttr ctiv to inv stors nd proj ct d v lop rs. Th ov r ll m rk t opportunit is r l tiv l sm ll, which could m k it mor difficult to ttr ct c p bl , xp ri nc d proj ct d v lop rs to Sri L nk . D v lop rs r lik l to includ pr mium to cov r th risks nd limit d opportunit , nd this would incr s th cost of l ctricit . D riskin th inv stm nts to th xt nt possibl is th r for critic l. For th s r sons it is r comm nd d th t th Gov rnm nt t k s pro ctiv rol in th pl nnin nd d liv r of offshor wind proj cts. It should do this b c rr in out rl -st d v lopm nt ctiviti s nd providin r t r r ul tor nd comm rci l c rt int . This will r duc th risk to inv stors, m kin th opportunit mor ttr ctiv , nd h lp to r duc costs. It will lso provid tim for th countr ’s conom to r cov r b for invitin inv stors to nt r Sri L nk . Furth r d riskin instrum nts, includin u r nt s, will lik l b r quir d to ttr ct th r quir d c pit l t n fford bl r t . Th d v lopm nt of offshor wind proj cts t k s consid r bl lon r th n for onshor r n w bl n r proj cts. To void d l s nd hi h r costs, it is lso import nt to focus on qu lit nd risk r duction to nsur th t th d t nd d v lopm nt work c n b r li d upon b d v lop rs biddin into th futur t nd r. Fi ur ES.3 summ ri s th m in ph s s in th d v lopm nt nd d liv r of n offshor wind proj ct. It focus s on th ov rnm nt-l d d v lopm nt nd pr p r tor ctiviti s th t n d to occur b for proj ct t nd r, lon with n stim t d tim lin for this work. EXECUTIVE SUMMARY XV FIGURE ES.3: REPRESENTATIVE TIMELINE FOR DEVELOPMENT WORK AHEAD OF A PROJECT TENDER COMPETITION. Proj ct & PPA T nd r GOVERNMENT ACTIVITIES DEVELOPER ACTIVITIES Ar Sit Sit Inv sti tions, D v lopm nt & Construction Op r tion S l ction S l ction D si n, & P rmittin Procur m nt Sp ti l Pl nnin Sit Ass ssm nt Grid Conn ction Pl nnin St k hold r En m nt Wind Mod lin Wind & M toc n M sur m nts Environm nt l & Soci l Scopin Env. & Soc. Surv s ESIA Approv l Pr -F sibilit F sibilit Studi s G oph s Surv s G ot ch Surv s R ul tor An l sis T nd r D si n Est blish T r ts & Polic Offshor Wind D v lop r Consult tions 9-12 Months 18-24 Months PATHFINDER PROJECT This ro dm p id ntifi s two l r r s in th Gulf of M nn r th t could b suit bl for Sri L nk ’s first offshor wind proj ct(s). Th s two r s, which r clos to M nn r Isl nd nd Putt l m, r shown in Fi ur ES.1. Both h v sh llow w t rs suit bl for fix d found tion turbin s nd mod r t wind sp ds, v r in 8-9m/s. To pro r ss with this ppro ch th Gov rnm nt would c rr out th t chnic l nd r ul tor ctiviti s shown in th first two r nd sit s l ction ph s s of Fi ur ES.3, to b tt r und rst nd th two pot nti l r s nd th r ul tor ch n s th t would b r quir d to run t nd r to w rd proj ct nd pow r offt k r m nt. Subs qu ntl , in th sit inv sti tion, d si n, nd p rmittin ph s , Gov rnm nt nci s would n d to conduct sit surv s, f sibilit studi s, nd t nd r d si n, s w ll s impl m nt th n c ss r r ul tor ch n s nd initi tiv s n d d to r duc th cost of fin ncin for proj cts. D v lopm nt p rtn r or donor fundin is lik l to b r quir d to h lp fund th s ctiviti s. XVI Offshor Wind Ro dm p for Sri L nk RECOMMENDED ACTIONS From th n l sis nd findin s of this ro dm p, w r comm nd 22 ctions th t r r quir d to d liv r th hi h rowth sc n rio. E ch of th s r comm nd tions is d scrib d in mor d t il in s ction 6 nd vid nc is provid d in th Supportin Inform tion found within s ctions 7 throu h 16 of th ro dm p. FIGURE ES.4: PRIORITY THEMES TO CREATE A SUCCESSFUL OFFSHORE WIND INDUSTRY. 2023: S t th vision - Est blish offshor wind t r ts - Includ offshor wind in LTGEP nd LTTDP 2023-2025: Pr p r P thfind r Proj ct - Sp ti l pl nnin nd st k hold r consult tion - Wind, s b d, nvironm nt l d t coll ction - Industr n m nt Succ ssful - D si n t nd r comp tition offshor wind industr 2024-2026: Est blish Fr m works nd D risk - Id ntif nd impl m nt r ul tor upd t s - L unch comp titiv t nd r - En bl lon -t rm, b nk bl PPAs to b off r d - Cr t d riskin instrum nts to r duc cost 2026-2030: D liv r OSW Proj cts nd Infr structur - Port nd rid up r d s, includin Indi int rconn ctor - Support th construction of p thfind r proj cts - Pl n futur fix d nd flo tin offshor wind proj cts b ond 2030 Th followin points summ ri th ro dm p’s 22 r comm nd d ctions. Vision nd Volum T r ts 1. Sri L nk n Sust in bl En r Authorit (SLSEA) nd C lon El ctricit Bo rd (CEB) should int r t offshor wind into th lon -t rm n r tion xp nsion pl n (LTGEP). A holistic pl n, support d b n r s st m mod lin should consid r th ch r ct ristics of offshor wind nd its pot nti l contribution to th countr ’s d c rboni tion o ls. 2. SLSEA should st blish lon -t rm vision for offshor wind includin inst ll tion t r ts. Includin both short r (i. ., 2030) nd lon r (i. ., 2050) t r ts h lps inv stors to pl n nd iv s confid nc in th m rk t opportunit . Th vision should b inform d b th LTGEP nd conomic n l sis. Lon r-t rm opportuniti s such s flo tin wind nd r n h dro n should lso b includ d in th vision. 3. On or two 500MW p thfind r proj ct(s) should b consid r d b SLSEA. This c p cit could b commission d round 2030 nd would h lp to ov rcom b rri rs nd risks for futur c p cit dditions, n blin subs qu nt cost r ductions. EXECUTIVE SUMMARY XVII R ul tor nd Polic Fr m work 4. SLSEA in coll bor tion with oth r uthoriti s such s P trol um D v lopm nt Authorit of Sri L nk (PDASL) nd M rin Environm nt l Prot ction Authorit (MEPA), should l d int r t d sp ti l pl nnin to id ntif nd ss ss th pr f rr d loc tions for futur offshor wind proj cts. Th sp ti l pl nnin should includ st k hold r n m nt nd str t ic b s lin studi s to nsur w ll inform d sit s l ction. This work c n b support d b subs qu nt t chnic l ssist nc from d v lopm nt p rtn rs. 5. Sri L nk should follow ov rnm nt-l d ppro ch to pl nnin nd procurin th p thfind r proj ct(s). Th SLSEA should pl n this ppro ch, discuss it with industr nd oth r st k hold rs, th n publish it in th Sri L nk G tt . Th proc ss should b comp titiv , f ir, nd tr nsp r nt, t kin l ssons from int rn tion l xp ri nc s nd incorpor tin th m with loc l norms. 6. SLSEA should c rr out r ul tor p n l sis nd id ntif n r quir d m ndm nts or n w r ul tions to d liv r th ov rnm nt-l d procur m nt mod l. M n l m nts of th fr m work c n b djust d to suit th r quir m nts of offshor wind but oth rs, such s th provision of s b d l s s/conc ssions, m r quir n w l isl tion. 7. Th C ntr l Environm nt l Authorit (CEA), in coll bor tion with SLSEA, should d v lop nd publish d t il d uid nc on th p rmittin proc ss. This should includ list of ll th p rmits, uthoriti s, nd tim lin s to b consid r d. This should lso includ th import nt nvironm nt l nd soci l imp ct ss ssm nt (ESIA) proc ss followin ood int rn tion l industr pr ctic (GIIP). Fin nci l nd Economic 8. SLSEA, with support from d v lopm nt p rtn rs, should inv sti t th us of d riskin m ch nisms, includin u r nt s, nd opportuniti s to mobili low-cost conc ssion l fin nc . Th obj ctiv is to nsur th p thfind r proj ct(s) risk is suffici ntl miti t d to ncour inv stors nd to r duc th cost of fin ncin . This will h lp to r duc th cost of l ctricit nd nsur th p rticip tion of comp t nt, xp ri nc d d v lop rs, which will incr s th ch nc of succ ssful d liv r . 9. Th CEB should st blish lon -t rm, b nk bl , pow r purch s r m nt (PPA). This should t k into ccount th sp cificiti s of offshor wind, f irl lloc tin risk b tw n off-t k r nd d v lop r, nd id ll ddr ssin xch n r t risk, r p tri tion of profits, nd curt ilm nt p m nts. Th PPA must b consid r d b nk bl for proj cts to obt in d bt fin ncin . 10. SLSEA nd CEB should lso consid r th f sibilit nd pot nti l b n fits of r n w bl n r support sch m s. This would includ n ddition l m ch nisms n d d to r duc th PPA pric to n cc pt bl , fford bl l v l. H lth nd S f t (H&S) 11. Th Gov rnm nt should introduc H&S r quir m nts in li nm nt with industr b st-pr ctic st nd rds. Adoptin int rn tion l st nd rds with lon tr ck r cord nsur s s f proc dur s durin inst ll tion nd op r tion. XVIII Offshor Wind Ro dm p for Sri L nk Grid nd Port Infr structur 12. Th Sri L nk Ports Authorit (SLPA) should ss ss port r quir m nts nd options for up r din ports to support th inst ll tion of th p thfind r nd subs qu nt proj cts. This should consid r th f sibilit nd m rits for up r din Sri L nk ’s ports nd wh th r th r r mor conomic l options. 13. Assumin loc l port should b up r d d, SLPA should und rt k works to improv th c p biliti s of th port of Colombo nd/or H mb ntot . Th works should b str t ic, consid rin opportuniti s to suppl /s rvic proj cts b in d v lop d in Indi , s w ll s dom stic ll . 14. SLPA should ss ss nd up r d sm ll r loc l ports to us in th O&M ph s in ord r to nh nc loc l job cr tion, s w ll s nsur r li bl , s f , nd l stin op r tion of th wind f rms. 15. CEB should includ offshor wind in th n xt it r tion of th lon -t rm tr nsmission d v lopm nt pl n (LTTDP). This should b b s d on th LTGEP, nd th t r ts nd tim lin s s t b SLSEA. 16. CEB should cl rif which ntit is r sponsibl for constructin nd op r tin th xport s st m b tw n n offshor wind f rm nd th onshor tr nsmission rid. It is r comm nd d th t this should b th r sponsibilit of th d v lop r, thou h CEB could b b st pl c d to l d th onshor work. 17. CEB should construct str t ic tr nsmission r inforc m nts. Giv n th sc l nd lon d v lopm nt tim s of offshor wind proj cts, th s si bl r inforc m nts should b pl nn d nd impl m nt d w ll in dv nc of proj cts b in commission d. Th c n b d liv r d str t ic ll to void l ss ffici nt proj ct b proj ct ppro ch. 18. Th Ministr of Pow r nd CEB should continu to xplor th l ctric l int rconn ction link with Indi . This could n bl th p rti l or full s l of offshor wind n r t d pow r to consum rs or m rk ts in th r ion, s w ll s h lpin to b l nc th loc l rid nd f cilit t th int r tion of v ri bl r n w bl n r . 19. As p rt of lon -t rm d c rboni tion pl n, SLSEA nd PDASL should xplor th pot nti l to produc r n h dro n nd mmoni . It is unlik l to b conomic ll vi bl in th short r t rm but, in th bs nc of n int rconn ctor with Indi , this could b com critic l p rt of th Sri L nk n n r s st m. Alt rn tiv l , ch p r sourc s of l ctricit could b us d to produc r n h dro n, nd offshor wind b us d to suppl th rid. Suppl Ch in 20. SLSEA nd th Sri L nk Ports Authorit (SLPA) should consid r th m rits of inc ntiv s to support industr rowth nd loc l suppl ch in c p bilit . This could, for x mpl , includ t x x mptions/r ductions, v il bilit of r duc d r t l nd/prop rt within port r s, or cc ss to low r-cost fin nc . 21. SLSEA nd r l v nt Gov rnm nt nci s should m p loc l suppl ch in c p biliti s. This should id ntif loc l firms with n c p bilit or lik l futur c p bilit to suppl or s rvic offshor wind proj cts. 22. SLSEA should consid r st blishin str t ic r ion l p rtn rships with oth r offshor wind m rk ts. Suppli rs in Indi , Chin , nd Vi tn m, for x mpl , could b n lt rn tiv to ov rcom dom stic suppl ch in constr ints nd to both dr w on r ion l skills nd h lp d v lop th m dom stic ll . EXECUTIVE SUMMARY XIX 1 INTRODUCTION Th World B nk Group (WBG) l unch d n w lob l initi tiv on offshor wind in M rch 2019. Th Offshor Wind D v lopm nt Pro r m is l d b th En r S ctor M n m nt Assist nc Pro r m 2 (ESMAP) in clos p rtn rship with th IFC . Th Pro r m’s obj ctiv is to support th inclusion of offshor wind into th n r s ctor polici s nd str t i s of m r in m rk t countri s nd support th pr p r tor work n d d to build pip lin of b nk bl proj cts. In this cont xt, Sri L nk h s si nific nt pot nti l for offshor wind. In r c nt n l sis b th World B nk Group [1], Sri L nk ’s offshor wind t chnic l pot nti l3 w s stim t d t 92GW, comprisin 55GW from fix d offshor wind nd 37GW from flo tin offshor wind (i. ., in w t r d pths >50m). Sit s in th northw st of th countr ’s w t rs, such s th Gulf of M nn r nd P lk B pp r to h v stron wind r sourc combin d with r l tiv l sh llow w t rs m kin it pot nti ll suit bl for d plo m nt of fix d offshor wind. Th south st w t rs lso pr s nt ood wind conditions, but quickl turn into d p r w t rs impl in flo tin offshor wind solutions. This ro dm p w s commission d b WBG followin r qu st from th Gov rnm nt of Sri L nk for ssist nc on ss ssin th countr ’s offshor wind opportunit . Th work w s fund d b ESMAP nd PROBLUE. It h s b n fit d from wid r n of input r c iv d from st k hold rs r pr s ntin industr , ov rnm nt l, nd non- ov rnm nt l or ni tions. Th obj ctiv of this ro dm p is to provid str t ic n l sis nd dvic on th rol th t offshor wind could pl in Sri L nk ’s futur n r mix, n l sis on th k opportuniti s nd ch ll n s, nd r comm nd tions on n xt st ps in t rms of polic formul tion, pl nnin , nd d v lopin b nk bl proj cts. Th ssi nm nt sh ll inform th WBG dvic to th Gov rnm nt of Sri L nk nd th Gov rnm nt’s consid r tion of polic nd inv stm nt options for offshor wind. Th int rn tion l consultin firm COWI w s commission d to l d th ro dm p, workin clos l with th WBG t m, s w ll s th L nk H dr ulic Institut , EML Consult nts, nd th Biodiv rsit Consult nc . This ro dm p h s b n pr p r d b s d on d sk studi s nd st k hold r consult tions. M tin s h v b n h ld with r l v nt uthoriti s in Sri L nk , s w ll s oth r import nt st k hold rs. Furth rmor , four st k hold r consult tions obt in d f db ck from th followin st k hold r roups: ■ Gov rnm nt st k hold rs: Ministr of Pow r nd R n w bl En r , Sri L nk n Sust in bl En r Authorit (SLSEA), C lon El ctricit Bo rd (CEB) ■ Priv t s ctor st k hold rs, includin proj ct d v lop rs: Wind Forc Ltd, LTL Holdin s Ltd, S nok Wind Pow r Pvt. Ltd. L nk Tr nsform rs, C l x R n w bl s, Ch mb r of Comm rc (committ on RE/ n r ) 2 IFC — Int rn tion l Fin nc Corpor tion is n int rn tion l fin nci l institution th t off rs inv stm nt to ncour priv t -s ctor d v lopm nt in l ss d v lop d countri s. IFC is m mb r of th World B nk Group. 3 Th t chnic l pot nti l is th chi v bl c p cit , n r tion, nd suit bl r for offshor wind t chnolo iv n s b d conditions nd wind r sourc onl , not t kin into consid r tion nvironm nt l nd soci l constr ints. Not , this r port ssum s th t fix d offshor wind is mor lik l to b conomic ll vi bl in w t r d pths l ss th n 50, how v r, s t chnolo h s volv d, it is t chnic ll f sibl to inst ll fix d found tions in d pths of up to 70m. 1 ■ Dom stic Fin nci l Institutions: NDB B nk, DFCC B nk PLC, Comm rci l B nk of C lon PLC ■ Int rn tion l Fin nci l Institutions: IFC, Asi n D v lopm nt B nk, J p n Int rn tion l Coop r tion A nc (JICA) D p ndin on th xt nt to which n ro dm p r comm nd tions r impl m nt d, nd m rk t conditions, th r r r n of rowth outcom s possibl for th offshor wind industr . As r sult, nd to illustr t possibl d v lopm nt p ths for offshor wind in Sri L nk , two h poth tic l d plo m nt sc n rios w r d v lop d — low nd hi h rowth sc n rio. Th sc n rios w r d v lop d b s d on f db ck from st k hold rs, ss ssm nts of th st t of offshor d v lopm nt tod , st t m nts on th politic l spir tions of Sri L nk , nd n ss ssm nt of th ov r ll pot nti l for offshor wind in th countr . Not th t th s two rowth sc n rios r cov r d in d t il in s ction 3.2. Th structur of this r port is compris d of m in bod (Ch pt rs 2-6), which summ ri th k findin s nd conclusions of this r port, s w ll s pr s ntin th ro dm p. Ch pt rs 7-15 pr s nt mor d t il d n l sis of th th m s of this r port. 1 Introduction 2 2 BACKGROUND Sri L nk h s ross dom stic product (GDP) p r c pit of US$3,852 (2019) nd tot l popul tion of 21.8 million. Sinc th nd of th thr -d c d civil w r in 2009, Sri L nk h s b un focusin on lon - t rm str t ic nd structur l d v lopm nt ch ll n s. Th countr h s tr dition ll r li d on th ricultur l s ctor s m jor sourc of conomic output. How v r, tod th sh r of ricultur in Sri L nk ’s GDP is onl round i ht p rc nt. Industr contribut s with pproxim t l 26 p rc nt nd th s rvic s ctor is now b f r th domin nt contributor to GDP with bout 60 p rc nt. Th ov r ll conomic pictur in Sri L nk h s b n imp ct d s v r l b th COVID-19 p nd mic, with conomic rowth sh rpl contr ctin in 2020 [2]. Th imp ct h s l ft Sri L nk with output drops in m n s ctors, nd th ov rnm nt h s ct d to support fl in s ctors. How v r, r c nt proj ctions b Th World B nk nd Asi n D v lopm nt B nk for s rowth r t in 2021 of 3-4 p rc nt. With rowin conom nd continu d l ctrific tion of th countr nd v rious s ctors, l ctricit d m nd is xp ct d to row si nific ntl . How v r, it will b ch ll n in for th Sri L nk n n r s ctor to m t th rowin d m nd with fford bl nd r li bl l ctricit . Th sh r of fossil fu ls in th pow r n r tion mix h s b n incr sin , nd fforts to shift to cl n n r h v b n h mp r d b l ck of c p cit , inc ntiv s, nd inv stm nts to d v lop l r -sc l r n w bl n r proj cts nd ssoci t d tr nsmission f ciliti s. Sri L nk h s, thou h, m d si nific nt ffort in d v lopin r n nd r n w bl n r in r c nt rs, with not bl c p cit ddition in onshor wind comprisin int r li th 100MW M nn r Onshor Wind F rm. How v r, with th mbitious t r t of obt inin 70 p rc nt of l ctricit n r tion vi r n w bl n r sourc s b 2030 nd full 100 p rc nt r n w bl n r n r tion b 2050, offshor wind b com s r l v nt nd import nt t chnolo to consid r d v lopin . 3 2.1 CURRENT ELECTRICITY SECTOR In 2021, th tot l l ctricit n t n r tion mount d to 16,716GWh [3]. This w s suppli d b tot l inst ll d c p cit of 4,186MW. Th t pic l m ximum pow r d m nd is pproxim t l 2,800MW, oft n occurrin b tw n M rch to M . El ctricit n r tion in Sri L nk is domin t d b oil nd co l-fir d th rm l pow r n r tion (49 p rc nt of suppl ) nd h dro pow r (43 p rc nt, comprisin both l r - nd mini-sc l h dro). Th r m inin i ht p rc nt of n r tion w s suppli d b wind, sol r, nd oth r RE c p cit . A summ r of this n r tion mix is shown in Fi ur 2.1 nd st tistics for 2021 r provid d in T bl 2.1. Sri L nk do s not curr ntl h v n s-fir d pow r n r tion, how v r th countr ’s first Liquid N tur l G s (LNG) combin d c cl pl nt is und r construction t K r w l piti nd will h v tot l c p cit of 300MW. G s-fir d n r tion c p cit is xp ct d to incr s furth r — s s ction 2.2. Ov r thr qu rt rs of pow r n r tion c p cit is own d b th C lon El ctricit Bo rd (CEB), with th r m inin 24 p rc nt of th countr ’s n r tion own d b ind p nd nt pow r produc rs (IPPs). T pic ll , th s IPPs r dom stic firms with r l tiv l sm ll-sc l (<100MW) proj cts. H dro n r tion v ri s throu hout th r d p ndin on th monsoon s son nd th v il bilit of w t r in th r s rvoirs. Durin th dr s son (J nu r to April), w t r l v ls in th r s rvoirs t nd to b low, l din to r duc d h dro pow r n r tion. In contr st, durin th monsoon s son (M to Octob r), hi h r inf ll r is s th w t r l v ls in th r s rvoirs nd incr s s h dro n r tion. T pic ll , th rm l n r tion incr s s durin th dr s son to count r th r duc d h dro output. Th countr ’s r li nc on h dro nd th rm l pow r n r tion incr s s th risk of disruption du to th v il bilit of w t r (r inf ll) nd fu l. In rl 2022, th incr s d d m nd for fossil fu ls durin th dr s son contribut d to th conomic crisis (s s ction 2.4) nd insuffici nt for i n c pit l w s v il bl to import th fu l n d d to m t d m nd; s r sult, th rid w s un bl to suppl its custom rs nd bl ckouts occurr d. Furth rmor , th r c nt hi h pric s of fossil fu ls subst nti ll incr s d th cost of n r tion, nd Sri L nk is xpos d to futur pric vol tilit . Th Sri L nk n l ctricit m rk t is curr ntl sin l bu r mod l with CEB s th sin l , st t - own d, int r t d utilit . Th r is no l ctricit spot m rk t or r n w bl support sch m s for proj cts of th t pic l si of offshor wind f rms. Th ov rnm nt is curr ntl pl nnin m jor s ctor r form which m st rt introducin st ps tow rds whol s l m rk t, but th d t ils r not t known. Futur r n w bl n r sch m s r lik l to b m jor d t rmin nt of offshor wind d v lopm nt, nd th suit bilit of th s sch m s should b consid r d in th n xt st s of offshor wind d v lopm nt followin on from this ro dm p. 2 B ck round 4 FIGURE 2.1: SRI LANKA POWER GENERATION IN 2021, SHOWING PERCENTAGE OF TOTAL ELECTRICITY GENERATED3. Solar PV (Grid) 1% Other 3% Wind 4% Thermal (Oil) 16% Hydro (Large and Mini) Tot l El ctricit 43% G n r t d 2021 Thermal (Coal) 33% TABLE 2.1: POWER GENERATION STATISTICS FOR 20213. C p cit G n r tion Own rship T p MW GWh P rc nt of Tot l P rc nt of Tot l M jor H dro 1,383 5,640 33% 34% Th rm l (Oil) 654 1,231 16% 7% CEB Th rm l (Co l) 900 5,519 22% 33% Wind 104 318 2% 2% TOTAL 3,041 12,708 Th rm l (Oil) 433 1,400 10% 8% Mini H dro 414 1,568 10% 9% Wind 148 327 4% 2% IPP Oth r RE 50 163 1% 1% Grid Sol r PV 100 156 2% 1% Rooftop Sol r PV N/A 389 N/A 2% TOTAL 1,145 4,003 Combin d Tot l 4,186 16,711 3 Th t chnic l pot nti l is th chi v bl c p cit , n r tion, nd suit bl r for offshor wind t chnolo iv n s b d conditions nd wind r sourc onl , not t kin into consid r tion nvironm nt l nd soci l constr ints. Not , this r port ssum s th t fix d offshor wind is mor lik l to b conomic ll vi bl in w t r d pths l ss th n 50, how v r, s t chnolo h s volv d, it is t chnic ll f sibl to inst ll fix d found tions in d pths of up to 70m. 5 Offshor Wind Ro dm p for Sri L nk 2.2 FUTURE ELECTRICITY DEMAND AND GENERATION 2.2.1 Futur D m nd D m nd for l ctricit in th countr h s b n rowin t n v r r t of bout 4.4 p rc nt p r nnum durin th l st fift n rs [4], thou h it contr ct d durin 2020 du to th COVID-19 p nd mic. Annu l pow r d m nd is xp ct d to incr s from 16,741GWh in 2022, to 53,703GWh b 2046. This r pr s nts d m nd incr s of ov r 220 p rc nt in th t p riod, nd 25- r v r nnu l rowth r t of fiv p rc nt [4]. P k d m nd is xp ct d to xc d 9GW b 2046. Whil rid conn ctivit h s r ch d most p rts of th countr , th rowth is r sult of incr s d industri l, comm rci l, nd consum r d m nd. Th “b s c s ” for c st l ctricit d m nd b tw n 2022 nd 2046 is shown in Fi ur 2.2. FIGURE 2.2: SRI LANKA’S BASE DEMAND FORECAST FOR ELECTRICITY BETWEEN 2022 AND 2046 [4]. 60,000 Total Annual Generation [GWh] 50,000 40,000 30,000 20,000 10,000 0 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 Sourc : CEB 2.2.2 R n w bl En r T r ts In pursu nc of incr s d doption of r n w bl n r , Sri L nk h s s t t r t to us onl r n w bl n r for l ctricit n r tion b 2050. Th t r t sh ll b obt in d b ph s d ppro ch with 70 p rc nt r n w bl n r in l ctricit n r tion b 2030, nd ‘c rbon n utr lit ’ in l ctricit n r tion b 2050. This pl d is und rlin d in Sri L nk ’s r c ntl (2021) Upd t d N tion ll D t rmin d Contributions (NDCs) und r th UNFCCC fr m work [5] wh r th two r n w bl n r t r ts for l ctricit n r tion is xplicitl confirm d. Addition ll , th NDC st t s th t Sri L nk commits to no c p cit ddition of co l pow r pl nts. Sri L nk lr d h s ood sh r of r n w bl n r in th l ctricit n r tion mix. R chin 70 p rc nt b 2030, how v r, is hu t sk nd will r quir si nific nt n w r n w bl n r c p cit . 2 B ck round 6 2.2.3 Futur G n r tion Th CEB lon t rm n r tion xp nsion pl n (LTGEP) 2022-2041 [4] consid rs th futur n r tion mix r quir d to m t this d m nd und r four polic sc n rios, includin b s c s nd +50 p rc nt r n w bl l ctricit n r tion b 2030. Th LTGEP w s pprov d in mid-2021, b for th countr ’s NDCs w r upd t d nd th r for do s not consid r th commitm nt to void buildin n w co l-fir d n r tion. A n w LTGEP pl n4 is b in pr p r d for th p riod 2023-2042 [6]. This will li n th pl n with th Gov rnm nt’s t r t of 70 p rc nt r n w bl n r b 2030 nd commitm nt for no n w co l n r tion. Th dr ft pl n not s th t th l r pot nti l for offshor wind pow r d v lopm nt in northw st rn nd south st rn r ions h v b n id ntifi d b initi l ss ssm nts in World B nk Group studi s. Th n w LTGEP will lso includ l r r contribution of low-c rbon n r (to r pl c pl nn d co l nd oth r th rm l n r tion) nd th r for could includ ddition l l r -sc l v ri bl r n w bl n r , such s offshor wind. Th 2022-2041 LTGEP for s s th us of fossil fu l in combin tion with r n w bl n r -b s d pow r n r tion options to m t th incr sin l ctricit d m nd. Und r th ‘curr nt polic ’ sc n rio, th pl n for c sts ov r 6GW of n w fossil fu l c p cit 5 to b dd d b 2041. Th sc n rios pl n for 600 to 2,400MW of n w co l n r tion b 2041 with t pic l pl nt f ctor of 80-85 p rc nt. This pl nn d n w co l c p cit will n d to b r pl c d b low-c rbon n r sourc s in th n xt r vision of th LTGEP. Th pl n lso for c sts ov r 6.5GW of v ri bl r n w bl n r dditions b 2041 nd st t s th t up to 1,100MW of wind could b op r tion l b th nd of 2030, with pproxim t l 100MW b in dd d nnu ll th r ft r, l din to +2,000MW of wind b 2040. Not th t, t th tim of writin , th dr ft LTGEP for 2023-2042, nticip t s tot l inst ll d c p cit of +3,200MW of wind b 2040; subst nti l incr s on th pr vious LTGEP v rsion nd r fl ctin Sri L nk ’s r c nt polic commitm nts. Sri L nk h s si nific nt pot nti l for sol r, onshor wind, nd biom ss, nd, wh n coupl d with th xistin h dro n r tion, could b suffici nt to suppl Sri L nk ’s futur d c rboni d n r s st m. For x mpl , SLSEA’s R n w bl En r R sourc D v lopm nt Pl n 2021-2026 [7] stim t s Sri L nk ’s r n w bl n r r sourc s nd id ntifi s l nd r s for round 10GW of onshor wind, 30GW of sol r PV, 900MW of flo tin sol r PV, nd 800MW of biom ss pot nti l. It lso prioriti s l nd for round 1GW of l r -sc l wind nd sol r PV proj cts to b d liv r d in this 5- r p riod. Pro r ss in d v lopin l r -sc l r n w bl l ctricit n r tion, how v r, h s b n slow. A ricultur is critic l p rt of Sri L nk ’s conom , so l nd is pr cious r sourc ; this could h mp r th buildout of l r onshor r n w bl n r tion. Th r for , it m not b possibl to m t th 2030 r n w bl n r t r ts with onshor r sourc s lon , nd offshor wind could h lp to dd si bl c p cit with sin l proj ct. 4 Th dr ft LTGEP (2023-2042) w s m d publicl v il bl for st k hold r comm nts in Octob r 2022 b th Public Utiliti s Commission of Sri L nk . 5 Comprisin ; G s (1,230MW), Co l (2,400MW), Combin d C cl (1,500MW), nd IC n in s (900MW). 7 Offshor Wind Ro dm p for Sri L nk Sri L nk h s som of th hi h st l ctricit costs in Asi . As ll fu l is curr ntl import d, th countr is xpos d to futur fu l pric v ri bilit . Th LTGEP ssum s th followin futur costs for n w th rm l n r tion: ■ N tur l G s (combin d c cl ), with proj ct si of 300-400MW: 9 to 12 US C nt/kWh ■ Co l, with proj ct si of 300-600MW: 7 to 10 US C nt/kWh Costs for v ri bl r n w bl n r , such s wind nd sol r, r lso ssum d to b comp r tiv l hi h (t pic ll 7 to 10 US C nt/kWh), but this ssum s r l tiv l sm ll-sc l proj cts of round 10MW. FIGURE 2.3: BREAKDOWN OF TOTAL INSTALLED CAPACITY BETWEEN 2022 AND 2041, AS PER THE LTGEP 2022-2041 [4]. 18,000 16,000 14,000 Capacity [MW] 12,000 10,000 8,000 6,000 4,000 2,000 0 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Hydro Thermal Other RE Sourc : CEB 2.2.4 Int rconn ctor with Indi An l ctric l int rconn ctor b tw n Sri L nk nd Indi h s b n consid r d m n tim s in th p st, but proj ct h s not t b n t k n forw rd. Gov rnm nt-to- ov rnm nt di lo u on th int rconn ctor h s r c ntl r sum d nd 500MW Hi h Volt Dir ct Curr nt (HVDC) link w s n l s d in on of CEB’s LTGEP sc n rios. Work is on oin to ss ss th t chnic l, comm rci l, nd conomic f sibilit of th int rconn ctor, but it is xp ct d to b mutu ll b n fici l for both countri s; with Sri L nk h vin n ddition l sourc of pow r to id s st m b l ncin , nd Indi b n fittin from ddition l suppl of r n w bl l ctricit t tim s wh r not ll n r t d pow r is r quir d in Sri L nk . Pow r from l r -sc l offshor wind, or oth r r n w bl n r c p cit , could b p rti ll or ntir l xport d to Indi (or oth r South Asi n consum rs) vi th int rconn ctor. This could n bl th buildout of mor r n w bl l ctricit n r tion th n r quir d dom stic ll nd would provid n w sourc of for i n r v nu for Sri L nk . Furth r inform tion on th int rconn ctor is provid d in s ction 11.3.3. 2 B ck round 8 2.3 ONSHORE WIND IN SRI LANKA Sri L nk h s ood r sourc pot nti l for onshor wind pow r d v lopm nt, with m n r s h vin nnu l v r wind sp ds of r t r th n 7m p r s cond6, s d monstr t d b Fi ur 2.4 xtr ct d from th Glob l Wind Atl s. Sri L nk xp ri nc s two monsoon s sons: th southw st monsoon s son from M to S pt mb r nd th north st monsoon s son from D c mb r to F bru r . Wind sp ds r t pic ll hi h r durin th north st monsoon s son. Durin th int r-monsoon s sons (Octob r to Nov mb r nd M rch to April), th wind sp d t nds to b low r nd mor v ri bl , r sultin in low r pow r n r tion pot nti l. Th tot l stim t d onshor wind pot nti l b s d on th wind r sourc nd constr ints w s stim t d t 10GW b SLSEA [7]. How v r, b c us of unknown constr ints nd conomic f sibilit , th r li bl pot nti l is lik l to b much low r, nd som sourc s [8] stim t it could b s low s 1GW. Cons qu ntl , this m k s Sri L nk ’s offshor wind pow r pot nti l v n mor r l v nt s r n w bl n r sourc . FIGURE 2.4: ANNUAL AVERAGE ONSHORE WIND SPEEDS AT 100M HEIGHT [9]. 6 This is t pic l b nchm rk for ‘ ood’ onshor wind r sourc s. C p cit d plo d in r s with v r wind sp ds of 6 to 7m/s m lso b conomic ll vi bl . 9 Offshor Wind Ro dm p for Sri L nk Th inst ll d op r tion l onshor wind c p cit is curr ntl 252MW distribut d b tw n 18 proj cts — s Fi ur 2.5. A m jor p rt of th c p cit is loc t d just north of Colombo in Putt l m r . Th l r st onshor wind f rm to d t with c p cit of 104MW is loc t d t M nn r in th northw st of th countr . Som of th countr ’s mor n r tic sit s r loc t d f r inl nd but, du to rid nd tr nsport tion ch ll n s, d v lopm nt h s b n clos r to th co sts. FIGURE 2.5: LOCATION, BY REGION, OF ONSHORE WIND FARMS IN SRI LANKA. Sourc : www.th windpow r.n t 2 B ck round 10 2.4 ECONOMIC CLIMATE Th conomic clim t in Sri L nk is str in d du to hi h l v ls of d bt s r sult of poor fisc l nd mon t r polic in th p st s v r l rs. Subs qu ntl , it is xp ct d th t Sri L nk ’s r l GDP will h v dropp d b 9.2 p rc nt t th nd of 2022 nd m furth r contr ct b 4.2 p rc nt in 2023 [10]. Aft r th pr vious pr sid nt r si n d in 2022 followin d monstr tions, politic l nd conomic unc rt inti s h v continu d to p rsist. An IMF support p ck is xp ct d to b forthcomin in 2023, nd th ov rnm nt is pl nnin numb r of r forms, includin si nific nt pow r s ctor nd t riff r forms. Sri L nk h s b n hi hl d p nd nt on importin fossil fu ls to m t n r d m nd. This, combin d with l r imports in oth r s ctors, cr t d l r tr d d ficit. In 2022, CEB stim t d [4] th t Sri L nk sp nt round US$570 million p r r on fossil fu l imports for pow r n r tion (includin on di s l, fu l oil, n phth , nd co l). B 2040, th nnu l cost of fossil fu l imports7 is xp ct d to ris to round US$1.5 billion p r r, furth r x c rb tin th tr d imb l nc . In 2022, th l r r duction in for i n incom from tourism du to th COVID-19 p nd mic, combin d with th r pid ris in fossil fu l pric s du to th w r in Ukr in , l d to th countr h vin insuffici nt for i n curr nc (prim ril US$) nd d f ultin on its d bts in M 2022. Sri L nk w s un bl to m k p m nts to import fu ls which c us d fu l crisis th t v ntu ll l d to th wid spr d public d monstr tions [11]. A lon -t rm solution to br k th d p nd nc of importin fossil fu ls could b l r -sc l d plo m nt of r n w bl s, such s sol r, onshor wind, nd offshor wind. This would r duc th countr ’s fu l import p m nts nd h lp to cons rv v lu bl for i n curr nc . Th l r -sc l d plo m nt of r n w bl n r is lso ss nti l for th countr to m t its t r ts of 70 p rc nt r n w bl l ctricit b 2030 nd 100 p rc nt in 2050. As discuss d in this Ro dm p, Sri L nk h s si nific nt pot nti l for offshor wind nd it could m k v lu bl contribution to th r n w bl n r mix, lon sid h dro, sol r, nd onshor wind. Est blishin n offshor wind industr in Sri L nk nd d v lopin suppl ch in would b n fit th countr in s v r l nvironm nt l, conomic, nd socio- conomic r s. It h s shown to b n fit job cr tion nd cc ss to cl n nd fford bl n r without th n d to import l r mounts of fossil fu ls. At l r , Sri L nk would b n fit from r duc d missions, n r ind p nd nc , nd for i n dir ct inv stm nt (FDI). Th tim to d v lop n offshor wind f rm (OWF) is lon — t pic ll s v n to t n rs — which m ns th t, to chi v th mbitious o ls, pro r ss n ds to st rt tod . Th ov rnm nt will n d to pro ctiv l ttr ct d v lop rs b cr tin inc ntiv s which d risk nd s th proc ss for p rmittin nd procur m nt rout s. Th s should b consid r d s p rt of th scopin of th ov r ll support p ck th ov rnm nt will n d to off r d v lop rs. Th conomic nd politic l situ tion in Sri L nk r m ins ch ll n in in th short t rm nd r quir s consist nt nd sust in d fforts from l d rs. How v r, c rt in ctions could improv sp cific p rts of th conom nd b n fit th countr . Est blishin n offshor wind m rk t could b such n ction. 7 B 2040, di s l, oil, nd n phth will h v b n ph s d out of th pow r s ctor nd r pl c d with Liquid N tur l G s (LNG). 11 Offshor Wind Ro dm p for Sri L nk 2.5 OFFSHORE HYDROCARBON EXPLORATION Th P trol um D v lopm nt Authorit of Sri L nk (PDASL) und r th Ministr of Pow r nd En r , is r sponsibl for r ul tin th xplor tion nd production of oil nd s. Historic ll , offshor xplor tion h s occurr d in th C uv r B sin round M nn r Isl nd, nd in th M nn r B sin, furth r offshor of Putt l m/K lpiti p ninsul r. Sm ll discov ri s w r m d in th M nn r B sin but no comm rci l xtr ction h s occurr d. PDASL is pr p rin n w r ul tor fr m work [12] to r n w xplor tion fforts s it b li v s Sri L nk h s subst nti l offshor h droc rbon r s rv s. Th r m b som ov rl ppin r s b tw n offshor h droc rbon xplor tion ( nd futur xtr ction) nd r s f sibl for offshor wind d v lopm nt, p rticul rl in th Gulf of M nn r. This could c us som ch ll n s in m n in th sh r d us of m rin sp c , but could lso off r opportuniti s for coll bor tion nd pot nti ll co-loc tion of offshor n r ctiviti s. It will b import nt to und rst nd r l t d xp ri nc s from oth r countri s, for x mpl th Scottish Innov tion nd T r t d Oil nd G s (INTOG) offshor wind l sin round, nd ppl th m to th Sri L nk n cont xt. SLSEA nd PDASL should clos l coordin t to h lp nsur ffici nt us of Sri L nk ’s offshor n r r sourc s, nd to void duplic tion of fforts. Giv n PDASL’s xp ri nc with th offshor nvironm nt nd st k hold rs, it would b b n fici l for th nc to ctiv l support offshor wind d v lopm nt ctiviti s. 2.6 OFFSHORE WIND IN INDIA Offshor wind is lob l industr , nd it is import nt for n w m rk ts to consid r th ir position nd opportuniti s within th wid r lob l nd r ion l m rk ts. Indi h s offshor wind r sourc s in th st t s of Guj r t nd T mil N du. Its Ministr of N w nd R n w bl En r (MNRE) st blish d t r t of 30GW b 2030 [13] nd h s publish d str t ic p p rs d scribin how th t will b chi v d [14]. It is xp ct d th t, in 2023, MNRE will run Indi ’s first comp titiv lloc tion of s b d for +4GW of offshor wind c p cit in T mil N du’s w t rs. A pr limin r sp ti l pl n for T mil N du, c rri d out b th C ntr of Exc ll nc for Offshor Wind nd R n w bl En r , [15] id ntifi d t l st 3,600km2 cross 14 priorit offshor wind pot nti l r s; this is quiv l nt to b tw n 10-25GW of pot nti l, d p ndin on th ctu l sit ch r ct ristics. Indi ’s offshor wind d v lopm nt will occur n r Sri L nk . Th hi h priorit sit s in T mil N du r off th south rn tip of Indi , nd round 200-300km from Colombo. On of th bro d r r s of pot nti l (clos to Ad m’s Brid ) h s bound r with Sri L nk ’s EEZ. Th proximit of th s sit s m ns th t Sri L nk n ports nd suppl ch in could s rvic Indi n proj cts. Th opposit is lso tru ; c p bl Indi n ports such s Tuticorin [16] nd th loc l suppl ch in th t is lik l to d v lop round it, will h v n opportunit to suppl to futur Sri L nk n proj cts. Coop r tion b tw n Sri L nk nd Indi on th d v lopm nt of offshor wind in this r ion could b mutu ll b n fici l. A l r r ov r ll offshor wind c p cit provid s th industr nd inv stors with l r r proj ct pip lin nd comm rci l opportuniti s. This could h lp to r duc th ov r ll cost of n r for proj cts in T mil N du nd Sri L nk n w t rs. 2 B ck round 12 Whil Indi h s mbitious t r ts for offshor wind, th si of its ov r ll pr ctic l r sourc pot nti l is sm ll in comp rison to its futur pow r d m nds nd offshor wind will onl m k r l tiv l mod st contribution. Indi will n d to sourc pow r from m n diff r nt r sourc s s w ll s oth r countri s. This provid s Sri L nk with n opportunit to suppl Indi with xc ss l ctricit , if it is bl to d v lop suffici nt l r -sc l r n w bl n r n r tion nd n int rconn ctor with Indi (s s ction 11.3.3). 2.7 DRIVERS FOR ESTABLISHING OFFSHORE WIND As th lob l offshor wind industr h s m tur d ov r th l st 20 rs, xp ri nc from Europ n rl dopt rs shows th t ch countr h s ch rt d its own p th nd th t th r r multipl w s to st blish succ ssful offshor wind industr (s Fi ur 3.4 in [17]). Th p ths th t th s countri s h v t k n r influ nc d b th xistin r ul tor fr m works, politic l pr f r nc s, nd ch r ct ristics of th v il bl wind r sourc . Wh t th h v in common is th t th s countri s h v b n bl to find th ir own w s to fulfill th k r quir m nts for first st blishin nd th n rowin n offshor wind industr . Thou h Sri L nk is buildin xp ri nc d v lopin onshor wind, th r r import nt diff r nc s b tw n onshor nd offshor wind. In ddition to th ch ll n s of m rin pl nnin nd construction, th princip l diff r nc li s in th inv stm nt si of offshor wind f rms. In Europ , th v r wind f rm si h s b n continu ll incr sin , s l r r si s cr t conomi s of sc l nd r duc th LCOE. In 2020, th v r Europ n wind f rm si w s 788MW nd proj ct d v lop rs in n w m rk ts r t pic ll lookin for wind f rm si s of t l st 500MW [18]. In this si r n , c pit l xp nditur s for wind f rm r t pic ll US$1-2 billion, with tot l d v lopm nt xp ns s usu ll b tw n US$50-100 million. Du to th l r inv stm nts r quir d nd th lon proj ct d v lopm nt tim , xp ri nc h s shown th t countri s hopin to st blish n offshor wind s ctor must p v th w in f w k r s. Th World B nk Group’s 2021 r port “K F ctors for Succ ssful D v lopm nt of Offshor Wind in Em r in M rk ts” discuss s in d pth wh t is r quir d to build up n offshor wind industr in m r in m rk ts, from polic to fr m works nd d liv r [17]. This ro dm p focus s on th pplic tion of s l ct d f ctors in th Sri L nk n cont xt: ■ F vor bl n tur l sit conditions – do s Sri L nk h v l r r s with wind sp ds bov 7m/s? How much of th s r s r soci ll nd nvironm nt ll r strict d? B s d on th s b d ch r ct ristics, wh t is th pot nti l for fix d vs. flo tin wind? ■ Grid nd port infr structur – how much of Sri L nk ’s port nd rid infr structur c n b us d for offshor wind? Wh t kind of up r d s r xp ct d to b n c ss r ? ■ Suppl ch in – how much c p cit nd xp ri nc do Sri L nk n comp ni s h v in offshor wind or r l t d s ctors? Wh t r th inc ntiv s for wind f rm d v lop rs to sourc within Sri L nk ? 13 Offshor Wind Ro dm p for Sri L nk ■ H lth nd s f t – wh t must Sri L nk do to nsur th t th jobs provid d b offshor wind r s f ? ■ P rmittin nd r ul tor fr m work – how c n th risk of proj ct d v lopm nt b f irl lloc t d? Ar p rmittin fr m works tr nsp r nt nd s simpl s possibl ? ■ Fin ncin nd pow r purch s – wh t r r listic costs for th short t rm? Is pow r offt k s cur nd b nk bl ? How c n Sri L nk ttr ct proj ct d v lop rs in wh t is incr sin l b comin s ll r’s m rk t? Th s f ctors r r fl ct d in th structur of th k findin s (Ch pt r 3) nd th d t il d n l sis. 2 B ck round 14 3 KEY FINDINGS 3.1 SUITABILITY ASSESSMENT OF OFFSHORE WIND AREAS In lob l cont xt, Sri L nk ’s offshor wind sp ds r mod r t with r l tiv l v n distribution. Th r r sm ll pock ts of wind r sourc s xc din 9m/s (which c n b c t ori d s ‘hi h wind’ sit s) north of Putt l m nd st of M t r nd l r r sw ths in th r n of 8-9m/s (which c n b c t ori d s ‘m dium wind’ sit s), s shown in Fi ur 3.1. FIGURE 3.1: AREAS WITH MEAN WIND SPEED HIGHER THAN 7.0M/S AT 150M BASED ON GLOBAL WIND ATLAS [19]. 15 Th b th m tr offshor Sri L nk shows th t r l tiv l sh llow w t rs (i. ., <50m) suit bl for fix d found tions r found to th north b tw n Sri L nk nd Indi , wh r s r s of sh llow w t rs r mor limit d in th south, impl in n d for flo tin found tions. Th ss ssm nt of s b d nd s ismic conditions shows th t, in n r l, th r pp r to b no m jor s b d obst cl s or ch ll n s for construction nd op r tion of offshor wind f rms. E rthqu k s r not consid r d m jor conc rn. How v r, d v lopm nt of sit s clos to shor must t k into consid r tion tsun mi incid nts nd sp ci ll th pot nti l scour r l t d to low mplitud tsun mi w v s. Offshor wind must b d v lop d sust in bl nd void c usin l r n tiv imp cts on nvironm nt l nd soci l (E&S) r c ptors. If proj cts r to b n fit from low r-cost int rn tion l fin ncin nd fin ncin from conc ssion l sourc s (such s clim t funds), d v lopm nt n ds to m t int rn tion l l nd rs’ r quir m nts. Th s fin nci rs t pic ll r quir proj cts to m t E&S st nd rds th t li n with Good Int rn tion l Industr Pr ctic (GIIP). To conduct n initi l, hi h- l v l ss ssm nt of Sri L nk ’s t chnic l nd E&S constr ints, this ro dm p id ntifi s th m jor s nsitiviti s, usin xistin d t , nd m ps th m into two on s, d p ndin on th l v l of constr int: ■ Exclusion on s compris d of r s of th hi h st t chnic l nd E&S s nsitiviti s nd r consid r d s “no- o” r s to xclud from offshor wind sit s l ction. ■ R striction on s r hi h risk r s r quirin furth r ss ssm nt of t chnic l nd E&S risks throu h m rin sp ti l pl nnin (MSP), sit s l ction, nd/or nvironm nt l nd soci l imp ct ss ssm nt (ESIA). Whil d v lopm nt m b possibl in th s on s, it is lik l th t subst nti l m sur s will b r quir d to m n nd miti t dv rs imp cts. T bl 3.1 summ ri s which constr ints f ll into ch c t or . Furth r inform tion on this n l sis is provid d in s ction 3.3 nd th ccomp n in stud on priorit biodiv rsit v lu s, in App ndix A. TABLE 3.1: TECHNICAL, ENVIRONMENTAL, AND SOCIAL SENSITIVITIES WITHIN EXCLUSION AND RESTRICTION ZONES. Exclusion Zon s R striction Zon s Ecolo ic ll or Biolo ic ll Si nific nt M rin n tion l p rks M rin Ar s (EBSA) N tur r s rv s Import nt M rin M mm l Ar s (IMMA) S nctu ri s H bit t for Du on K Biodiv rsit Ar s (KBA) (incl. Import nt Bird Ar s (IBA), R ms r sit s, nd Hi h st d nsit shippin r s* UNESCO-MAB Biosph r R s rv ) S turtl n stin b ch s Subs c bl s* S r ss b ds, m n rov s, nd cor l r fs Milit r x rcis r s* Airport r d r* Oil & s op r tions* *D fin d s t chnic l constr int/s nsitivit , not E&S. 3K Findin s 16 Th sp ti l distribution of th combin d xclusion nd constr ints r m pp d in Fi ur 3.2. This shows th t th m jorit of Sri L nk ’s co st l w t rs cont in som d r of si nific nt nvironm nt l or soci l s nsitivit . Exclusion on s r prim ril found v r clos to shor in th south rn nd southw st rn p rt of th countr s w ll s in th northw st bov Putt l m nd in th Gulf of M nn r. L r r striction on s r loc t d in P lk Str it nd lso cov r th co st from Colombo to Trincom l . Som str tch s of Sri L nk ’s co st h v f w r constr ints nd includ th r s b tw n J ffn nd Trincom l s w ll s b tw n Putt l m nd Colombo. Althou h th s r s h v f w r xclusion nd r striction on s, th m cont in s nsitiviti s th t h v not b n id ntifi d in this initi l ss ssm nt. P rticul r E&S issu s r lik l to includ m rin m mm ls ( sp ci ll blu wh l s nd du on ), turtl s, mi r tor birds ( sp ci ll lon th w st co st), rtis n l fish ri s, nd comm rci l shippin rout s. FIGURE 3.2: EXCLUSION AND RESTRICTION ZONES FOR TECHNICAL, ENVIRONMENTAL, AND SOCIAL SENSITIVITIES. Sourc d t : s s ction 3.3 nd App ndix A 17 Offshor Wind Ro dm p for Sri L nk Th pot nti l offshor wind r s for Sri L nk h v b n d riv d b combinin th d t s ts on wind sp d, t chnic l constr ints, E&S constr ints, nd b th m tr . Fix d found tion offshor wind f rms r usu ll loc t d within r s which m t th b sic t chnic l r quir m nt — v r wind sp ds r t r th n 7m/s nd w t r d pth of 50m or l ss — void xclusion on s nd, id ll , lso void r striction on s. Fi ur 3.3 shows l r r s in th north of Sri L nk from J ffn to Trincom l nd r s to th south of Putt l m which m t th s conditions. Th s r s lso h v d p r w t rs, furth r from shor , with f w xclusion nd r striction on s, nd so pp r to b suit bl for flo tin wind proj cts. Addition l r s which r in r striction on s c n b found from J ffn southw st to Putt l m nd in th south from M t r to Pottuvil. FIGURE 3.3: COMBINED DATASETS ON TECHNICAL CONDITIONS AND CONSTRAINTS, USED TO IDENTIFY AREAS SUITABLE FOR OFFSHORE WIND. 3K Findin s 18 Fi ur 3.4 shows th most suit bl pot nti l r s for fix d nd flo tin offshor wind. Th s compris thr m jor pot nti l r s, s l b ll d in th m p. ■ Ar 1 (North): • Th r ion to th north st h s f w r E&S constr ints, with l r r s of sh llow w t r, how v r th wind r sourc within this r ion is l ss n r tic th n oth r r ions nd th r is limit d 132kV tr nsmission rid. This r is lik l to b low r priorit for d v lopm nt. • Th r ion to th northw st (north of Ad m’s Brid ) h s hi h r wind r sourc but som ch ll n in E&S constr ints (thr t n d m rin h bit ts (cor l r fs, s r ss, nd m n rov s), m rin m mm ls, birds, nd fish ri s). It is f r from Sri L nk n ports suit bl for offshor wind ( s v ss ls c nnot p ss Ad m’s Brid ) but th r could b tr nsmission rid conn ctivit t 220kV on M nn r Isl nd. • Th sm ll r r ion to th south of Ad m’s Brid nd M nn r Isl nd h s som of Sri L nk ’s b st offshor wind r sourc , how v r th r b tw n M nn r Isl nd nd Putt l m is prot ct d m rin r s rv (with s r ss h bit t nd du on ) so is not suit bl for d v lopm nt. An r furth r offshor to th w st do s not h v n E&S xclusions but pp rs to h v m n s nsitiviti s ( sp ci ll m mm ls nd birds), so is consid r d r striction. Furth r inform tion is r quir d to b tt r und rst nd this r nd its E&S s nsitiviti s. Th 220kV tr nsmission rid h s b n built out to M nn r Isl nd to conn ct onshor wind n r tion in th r , nd this could pot nti ll b str n th n d to conn ct offshor wind c p cit . ■ Ar 2 (W st): A co st l r str tchin from Putt l m tow rds Colombo h s r son bl wind r sourc nd do s not pp r to h v si nific nt E&S s nsitiviti s. Most of this r is within 25km of th shor , so th visu l imp ct of d v lopm nt will b n import nt issu . Mi r tor birds p ss throu h this r s th tr v rs Sri L nk ’s co st, nd mor inform tion is n d d to ss ss th pot nti l imp ct of offshor wind on th s birds. Th st p b th m tr m ns th w t r d pth incr s s quickl from shor , limitin this r suit bl for offshor wind d v lopm nt. Th r is clos to th m in d m nd c nt r of Colombo nd th 220kV tr nsmission rid is clos to th co st. Althou h it h s r duc d wind r sourc in comp rison to oth r r s, this r pp rs to h v f w r d v lopm nt risks. ■ Ar 3 (South st): Th r ion st of M t r lon Sri L nk ’s south st co st h s th countr ’s hi h st offshor wind r sourc . This co stlin , how v r, is prot ct d m rin r s rv within n Ecolo ic ll or Biolo ic ll Si nific nt Ar (EBSAs) nd Import nt M rin M mm l Ar (IMMA). Th r is lso UNESCO-MAB Biosph r R s rv round H mb ntot . This r is import nt for blu wh l s (which h v lso b com tourist ttr ction), nd wid r n of biodiv rsit includin m rin turtl s. Offshor wind d v lopm nt in this r is lik l to pos hi h risk to th s s nsitiviti s. Th st p b th m tr m ns th r is limit d r for fix d offshor wind, nd th r is furth r constr in d b th xtr m l bus shippin l n s to th south. Th r is limit d (132kV) onshor tr nsmission rid in this r , nd no tr nsmission rid st of H mb ntot . Th ch ll n s ssoci t d with this r m n th t it should b low r priorit for d v lopm nt nd furth r inform tion should b th r d to b tt r und rst nd th E&S s nsitiviti s to inform possibl futur offshor wind d v lopm nt. 19 Offshor Wind Ro dm p for Sri L nk FIGURE 3.4: POTENTIAL AREAS FOR FLOATING AND FIXED FOUNDATION OFFSHORE WIND. Th ch r ct ristics of th thr m jor wind pot nti l r s r iv n in T bl 3.2. TABLE 3.2: CHARACTERISTICS OF MAJOR OFFSHORE WIND AREAS. Fix d Pot nti l Flo tin Pot nti l km2 GW km2 GW Ar 1: North 4,564 18 3,697 15 Ar 2: W st 1,027 4 624 2 Ar 3: South st 1,336 5 2,947 12 TOTAL 6,927 27 7,268 29 Tot l loc tion l r sourc pot nti l8 of th id ntifi d r s is stim t d t 27GW for bottom fix d nd 29GW for flo tin , consid rin WTG d nsit 9 of 4MW/km2. This r sourc pot nti l is much low r th n th t chnic l r sourc pot nti l stim t [20] of 55GW for fix d nd 37GW for flo tin , b c us initi l t chnic l, nvironm nt l, nd soci l constr ints h v b n consid r d [20]. 8 Th loc tion l pot nti l consid rs nvironm nt l nd soci l constr ints nd is th r for sm ll r th n th t chnic l pot nti l. 9 This ssum s th t, on v r , 4MW of c p cit could b inst ll d p r squ r kilom t r. Onc proj cts r built out this d nsit within th proj ct bound r could b hi h r (oft n 5-8MW/km2). A low r, cons rv tiv c p cit d nsit ssumption t this st m k s llow nc for th l r unc rt inti s in sit conditions ( sp ci ll s b d ch r ct ristics nd E&S constr ints). 3K Findin s 20 In r lit , th d v lopm nt of th ntir 56GW of r sourc pot nti l will not b pr ctic l, nd th mount of offshor wind ctu ll construct d will b f r low r. This stim t is r l tiv l hi h- l v l nd us s xistin sp ti l d t . Th r r m n ps in th v il bl sp ti l d t nd so th f sibilit of th id ntifi d r s h s m n unc rt inti s. Futur studi s nd r s rch c n h lp to fill th s ps, providin b tt r und rst ndin of Sri L nk ’s w t rs nd th f sibilit of offshor wind d v lopm nt. Furth rmor , s offshor wind c p cit incr s s, th cumul tiv imp ct of multipl proj cts will incr s nd will limit furth r d v lopm nt. N v rth l ss, v n if sm ll fr ction of th r sourc pot nti l id ntifi d in this ro dm p could b d v lop d, it would provid l r contribution to Sri L nk ’s n r mix nd pr s nts n ttr ctiv n w opportunit for th countr . 3.2 GROWTH SCENARIOS To illustr t possibl d v lopm nt p ths for offshor wind in Sri L nk , two d plo m nt sc n rios h v b n d v lop d — low nd hi h rowth sc n rio. Th sc n rios r b s d on f db ck from st k hold rs, st tus of th offshor wind industr , st t m nts on th politic l spir tions of Sri L nk , nd n ss ssm nt of th ov r ll pot nti l for offshor wind in Sri L nk . Th w r not st blish d or t st d throu h pow r n r tion pl nnin or mod llin ; th ro dm p r comm nds this s on of th priorit n xt st ps. T bl 3.3 provid s summ r of th fix d nd flo tin offshor wind volum s und r both sc n rios to 2050. In both sc n rios, th p riod up to 2030 could s th d v lopm nt nd d liv r of Sri L nk ’s first offshor wind proj ct(s). Durin this tim , n w skills nd xp rtis would d v lop in Sri L nk , formin limit d l m nts of loc l suppl ch in c p bilit . Th ov r ll si of th dom stic suppl ch in und r both sc n rios is xp ct d to b r l tiv l sm ll nd focus l r l on O&M ctiviti s. Th m in diff r nc b tw n th two sc n rios is th c p cit volum s, with hi h rowth h vin pproxim t l twic th volum of low rowth. To n bl this, th hi h rowth sc n rios would r quir mor mbitious polic commitm nts nd l r r pow r d m nd, ith r throu h n int rconn ctor with Indi or throu h th d v lopm nt of r n h dro n nd oth r pow r-to-X lt rn tiv s. Th fford bl d liv r of th hi h rowth sc n rio would lso r quir th d v lopm nt of r ion l p rtn rships to f st- tr ck dom stic nd r ion l suppl ch in c p biliti s ( . ., with Chin , Vi tn m, Indi ). TABLE 3.3: OVERVIEW OF INSTALLED CAPACITY OF OFFSHORE WIND BY 2050 UNDER THE LOW AND HIGH GROWTH SCENARIOS. Offshor Wind B 2030 B 2040 B 2050 Low rowth (cumul tiv ) 0.5GW 1GW 2GW Fix d 0.5GW 1GW 1.5GW Flo tin 0GW 0GW 0.5GW Hi h rowth (cumul tiv ) 1GW 2.5GW 4GW Fix d 1GW 2GW 3GW Flo tin 0GW 0.5GW 1GW 21 Offshor Wind Ro dm p for Sri L nk 3.2.1 Low Growth Sc n rio Und r th low rowth sc n rio, b 2030, Sri L nk ’s first 500MW of offshor wind c p cit is st blish d throu h clos coll bor tion b tw n public nd priv t st k hold rs nd with fin nci l d riskin from int rn tion l donors nd fin nci l institutions. Up to 2GW of offshor wind c p cit is inst ll d b 2050. This would b th quiv l nt of fiv p rc nt of tot l s st m c p cit 10 in 2030, nd bout six p rc nt in 2040, which is consid r d r son bl p n tr tion of offshor wind for th Sri L nk n rid. This sc n rio ssum s th t on flo tin offshor wind proj ct of round 500MW is commission d b tw n 2040-2050, v n thou h th full fix d bottom pot nti l is not full utili d. Whil not curr ntl comm rci l, flo tin offshor wind is r pidl m turin t chnolo nd up to third of ll offshor wind inst ll tions lob ll could b flo tin b 2050. As it c n llow d plo m nt furth r from shor , flo tin offshor wind c n b ttr ctiv for countri s with co st l tourism s it could r duc visu l imp ct. To r ch such c p cit t r ts, th r ul tor fr m work for offshor wind in Sri L nk must b d v lop d to nsur tr nsp r nt nd comp titiv procur m nt rout s to incr s int r st from th d v lop rs. An offshor wind vision or t r t for 2030 nd 2050 should b communic t d b th Gov rnm nt, lon with cl rit on th p rmittin proc ss nd p rmits r quir d. Furth rmor , th ov rnm nt nsur s n int r t d pl nnin ppro ch includin l nd, co st l, nd m ritim sp ti l pl nnin nd improv s tr nsp r nc in procur m nt rout s li n d with int rn tion l pr ctic for th offshor wind. Fin ll , th ov rnm nt d v lops initi tiv s to mobili th dom stic suppl ch in for offshor wind, includin inv stin in up r d s to loc l port. Th ov r ll missions f ctor for Sri L nk ’s rid in 2022 w s pproxim t l 500 r ms of c rbon dioxid (CO2) p r kilow tt hour (kWh) ( bbr vi t d to CO2/kWh) [4] nd this is xp ct d to r duc to round 400 CO2/kWh b 2030. Offshor wind is ssum d to h v lif tim quiv l nt missions f ctor of 12 CO2/kWh [21]. 500MW of offshor wind c p cit , n r tin 2,190GWh p r r (s s ction 14.3) could th r for r duc Sri L nk ’s c rbon missions b b tw n 0.85 nd 1.0 million m tric tons of CO2 p r r. Ov r th lif c cl of th 500MW of c p cit op r tin b 2030, pproxim t l US$570 million in GVA could b dd d to th Sri L nk n conom , nd up to 25,000 FTE in dir ct nd indir ct loc l mplo m nt could b support d. S s ction 9.3 for furth r inform tion. 3.2.2 Hi h Growth Sc n rio Und r th hi h rowth sc n rio, b 2030, Sri L nk ’s first 1,000MW of offshor wind c p cit is st blish d in simil r m nn r to th low rowth sc n rio. Up to 4GW of offshor wind c p cit is inst ll d b 2050. C p cit inst ll d und r this sc n rio would b th quiv l nt of t n p rc nt of tot l s st m c p cit 10 in 2030, nd bout 15 p rc nt in 2040. Th construction of n int rconn ctor with Indi could s c p cit dd d xc din CEB’s b s c s sc n rio s pow r could b xport d r th r th n b in us d to m t loc l d m nd. An int rconn ctor would lik l b r quir d b for 2050 to n bl th conn ction of this volum of offshor wind, lon sid oth r v ri bl r n w bl n r n r tion. Simil rl , s with th low rowth sc n rio, th Sri L nk n r ul tor fr m work should b upd t d to nsur tr nsp r nt nd comp titiv procur m nt for offshor wind to incr s proj ct d v lop r 10 Assumin th b s c s sc n rio for Sri L nk n n r tion c p cit in CEB’s (LTGEP) 2022-2041 [4] which stim t s tot l s st m of bout 9,819MW b 2030 nd 15,951MW b 2040. 3K Findin s 22 int r st. A hi h r offshor wind t r t for 2030 nd 2050 should b communic t d b th Gov rnm nt, lon with cl rit on th p rmittin proc ss nd p rmits r quir d. To conn ct this l r r volum of c p cit , lon -t rm str t ic rid pl nnin nd n c ss r r inforc m nt is r quir d. An int rconn ctor with Indi would f cilit t th int r tion of this c p cit nd pot nti ll id b l ncin . If this c p cit l ds to subst nti l xc ss n r tion, wh n combin d with xistin pl nn d n r tion, th busin ss c s for th production of r n h dro n nd oth r r n fu ls (i. ., PtX) c n b xplor d. R ion l p rtn rships to f st-tr ck dom stic suppl ch in ( . ., with Chin , Vi tn m, Indi ) r d v lop d. In th hi h rowth sc n rio, LCOE for proj cts in 2030 is xp ct d to b th s m s for th low rowth sc n rio, s both would st rt with simil r d v lopm nts. Th LCOE of proj cts und r th hi h rowth sc n rio is stim t d to f ll quick r th n th low rowth, thou h th sm ll sc l of th industr nd proj cts will limit th conomi s of sc l . It is lik l th t v n if th r is si nific nt pip lin of offshor proj cts in Sri L nk , m nuf cturin suppl ch in inv stm nts r lik l to r m in lusiv , s th s will r vit t to th l r r multi-GW m rk ts in th r ion. Usin th s m missions ssumptions s s ction 3.2.1, 1.0GW of offshor wind c p cit , n r tin 4,380GWh p r r could r duc Sri L nk ’s c rbon missions b b tw n 1.7 nd 2.0 million m tric tons of CO2 p r r. Ov r th lif c cl of th 1.0GW of c p cit op r tin b 2030 pproxim t l US$1,300 million in GVA could b dd d to th Sri L nk n conom , nd up to 57,600 FTE in dir ct nd indir ct loc l mplo m nt could b support d. S s ction 9.3 for furth r inform tion. 3.3 REGULATORY FRAMEWORK Th n l sis of th r ul tor fr m work iv s th followin m in findin s lso ddr ss d in th m in p rt of this ro dm p (s s ction 8): 1. No d dic t d offshor wind r ul tor nd institution l fr m work h s t b n dopt d. It is lik l th t such l isl tion will b introduc d in th n r futur followin th r comm nd tions of this ro dm p nd b s d on th r comm nd tions of oth r r c nt int rn tion l studi s. As ddr ss d b th d t il d WB nd ADB studi s [2] [22] [23] [24], th curr nt r ul tor fr m work is in n d of n ov r ll r form in ord r to provid cl rit for nd support to th d v lopm nt of offshor wind proj cts. 2. Th Sri L nk n r ul tor fr m work m b bl to ccommod t offshor wind proj cts to som xt nt. How v r, s th xistin l l nd r ul tor s st m prim ril is r d tow rds sm ll r sc l , onshor r n w bl proj cts (comp r d to th l r r-sc l offshor wind proj cts which c rr f r r t r risks), th curr nt l l nd r ul tor s st m is unlik l to provid th n d d cl rit nd c rt int sp ci ll with r rd to pl nnin nd p rmittin . This c rt int is ss nti l to r duc d v lopm nt risk, th r b n blin d v lop rs to inv st nd lso to r duc th cost of fin ncin ( nd h nc th r quir d t riff). 3. Th curr nt procur m nt r im ppli s mix of diff r nt procur m nt rout s b s d on comp titiv biddin nd r strict d t nd rs followin int rn tion l principl s nd pr ctic s. Th c lls for propos ls issu d b th SEA nd/or th CEB v r in t rms of risk lloc tion nd priv t fin ncin . Th c ll its lf s ts th sp cific t nd r sp cific tions, it provid s th d t ils for th PPA nd involv d t riff structur s pr pprov d b th PUC. Th public und rt k s f sibilit studi s 23 Offshor Wind Ro dm p for Sri L nk nd m lso in som proj cts includ th nvironm nt l nd soci l imp ct ss ssm nt (ESIA) to d risk th proj ct. For curr nt l r -sc l proj cts b s d on priv t fin ncin , si nific nt risk is lloc t d to th priv t d v lop r in und rt kin studi s, inv sti tions, nd th ESIA. 4. From n int rn tion l p rsp ctiv , l r -sc l offshor wind t nd rs r t pic ll b s d on procur m nt rout s nd uctions involvin on - or two-st 11 comp titiv t nd r proc ss s, nd si nific nt involv m nt of th bidd rs n in in constructiv , op n di lo u with th ov rnm nt to improv th procur m nt proc ss. Th fulfilm nt of such procur m nt rout s in Sri L nk is lik l to r quir furth r c p cit to n vi t such r sourc d m ndin proc ss s. 5. Th p rmittin r im is compl x in t rms of cons ntin uthoriti s involv d nd coordin tion. Th d v lop r is t pic ll r sponsibl for obt inin ll cons nts, p rmits, nd lic ns s. Th SEA provid s som ssist nc in coordin tion but t k s no r sponsibilit . This pl c s subst nti l risk on th d v lop r nd unc rt int on th cons nts r quir d nd th tim lin to obt in th m. 6. In ddition, th offshor wind p rmittin r im nd th und rl in studi s nd inv sti tions r l t to th n d for robust b s lin surv s nd th ESIA to b compl t d to GIIP, nd it r l t s to th li nm nt of r ul tor fr m work nd p rmittin to l nd r r quir m nts to void d l in fin ncin . Th s sp cts n d to b t k n into ccount b th SEA, th CEB, th PUC, nd lso th SEA wh n s ttin th conditions nd t riff structur s for th p rticul r offshor wind t nd r. 3.4 FINANCIAL AND ECONOMIC ANALYSIS Th cost of n r from offshor wind in Sri L nk could b comp titiv with n w th rm l n r tion but r quir s cc ss to low r-cost int rn tion l fin ncin , s w ll s suffici nt risk miti tion m sur s. Th cost of pow r n r tion in Sri L nk is hi h, nd th cost of n w LNG fir d n r tion is xp ct d to b b tw n US$90 nd 120 p r MWh ( quiv l nt to 9 to 12 US C nt/kWh, s s ction 2.2). Assumin cc ss to low-cost conc ssion l fin nc nd suffici nt risk miti tion c n r duc th cost of c pit l (WACC) to round six p rc nt, th LCOE for Sri L nk ’s first proj ct could b b tw n US$75 nd 90 p r MWh, d p ndin on th wind r sourc . Ev n if this low cost of c pit l c nnot b chi v d, mor r son bl WACC of t n p rc nt would r sult in n LCOE of round US$110 to 120 p r MWh, which would still b comp titiv with n w LNG fir d n r tion. Risk miti tion nd r ion l coop r tion will h lp to r duc LCOE. Offt k u r nt instrum nts nd for i n xch n h d in f ciliti s, for x mpl , will h lp to r duc proj ct’s comm rci l risks, th r b r ducin th cost of fin ncin nd LCOE. As th Indi n offshor wind industr d v lops, loc l/r ion l suppl ch in m st blish nd could provid quipm nt nd s rvic s t low r cost th n importin from int rn tion l m rk ts. Th combin d sc l of Indi n nd Sri L nk n proj cts will lso m k mor ttr ctiv opportunit for suppl ch in inv stm nt. Und r th two rowth sc n rios, th LCOE of Sri L nk n offshor wind proj cts could drop to US$60-70 p r MWh in 2040 nd US$50-60 p r MWh in 2050. Th LCOE of th first offshor wind c p cit in n n w m rk t will b hi h r th n subs qu nt c p cit s risks r duc with xp ri nc . Th s cost r duction tr j ctori s r quiv l nt to 20 to 30 p rc nt r duction in LCOE b 2050 r l tiv to 2030, nd r shown in Fi ur 3.5. Th s tr j ctori s r h vil d p nd nt on th cost of c pit l nd th v il bl wind r sourc . Th cost r duction pot nti l is r l tiv l mod st; proj ct si s 11 On st in D nm rk nd th N th rl nds. Two st in th UK; on for obt inin th l s rr n m nt nd s cond for obt inin r v nu support, s lso World B nk Group’s 2021 r port “K F ctors for Succ ssful D v lopm nt of Offshor Wind in Em r in M rk ts”, t p. 35ss. [17]. 3K Findin s 24 r lik l to b sm ll (<1GW) so conomi s of sc l will b limit d, nd th ov r ll m rk t si is lso r l tiv l sm ll nd insuffici nt to stimul t subst nti l loc l suppl ch in rowth. S s ction 2.3 of th K F ctors r port [17] for furth r inform tion on LCOE nd cost r duction. FIGURE 3.5: LCOE TRAJECTORIES IN THE LOW GROWTH AND HIGH GROWTH SCENARIOS, INCLUDING A RANGE OF REPRESENTATIVE LCOE DUE TO UNCERTAINTIES. 100 90 80 LCOE [US$/MWh] 70 60 50 40 30 20 10 0 2030 2035 2040 2045 2050 High Growth Low Growth Representative LCOE Range Th m jorit of fin ncin for offshor wind proj cts will b provid d b int rn tion l inv stors. Th c pit l xp nditur (CAPEX) of 500MW offshor wind proj ct is t pic ll US$1,250 million. Und r t pic l limit d-r cours proj ct fin ncin structur , round US$1,000 million of th CAPEX would b b nk d bt. Th cost of c pit l from loc l b nks in Sri L nk n Rup s could b s hi h s 15 p rc nt nd th r is limit d liquidit v il bl loc ll . Int rn tion l l nd rs will b bl to provid suffici nt volum s of d bt, with mor f vor bl t rms, how v r this will b contin nt on th miti tion of r n of risks ff ctin th b nk bilit of proj cts, som of which includ : ■ Environm nt l nd soci l risks – th m jorit of pot nti l sit s in Sri L nk h v not bl E&S s nsitiviti s. An ESIA which m ts int rn tion l l nd rs’ r quir m nts will h lp to id ntif nd miti t this risk. ■ Grid conn ction r m nt – conn ction of n r tion t this sc l will b t chnic ll ch ll n in for Sri L nk ’s rid. Suffici nt provisions will b r quir d to ddr ss th risk of conn ction v il bilit nd st blish ppropri t comp ns tor m ch nisms. ■ Pow r purch s r m nt (PPA) – lon -t rm PPA will b r quir d to provid r v nu c rt int . Th PPA’s t rms, sp ci ll comp ns tion for curt ilm nt, will b critic l to th b nk bilit of th proj ct. Th PPA’s t rms will n d to r co ni th diff r nc s b tw n offshor wind nd oth r n r tors. 25 Offshor Wind Ro dm p for Sri L nk ■ Offt k r cr ditworthin ss – l nd rs will n d confid nc in th offt k r’s bilit to cov r its p m nt li biliti s ov r th lif tim of th PPA. Gov rnm nt b ckstoppin to u r nt th PPA is lik l to b r quir d. ■ Politic l risk – l nd rs will inv sti t th lik lihood nd implic tions of polic , r ul tor , nd contr ctu l m ndm nts th t could b m d b futur ov rnm nts nd wh th r th t could imp ct th proj ct’s xp ct d r v nu s. Insur nc m b r quir d to cov r this risk. ■ Exch n r t – th futur xch n r t of th Sri L nk n Rup is unknown, nd its vol tilit will imp ct r v nu s to s rvic for i n d bt unl ss suffici ntl miti t d throu h som form of h d in or oth r instrum nt. Giv n th r c nt curr nc d v lu tion, this will b m jor consid r tion. S s ction 3.6 nd 4.5 of th K F ctors r port [17] for furth r discussion on th b nk bilit of offt k r m nts nd th fin ncin of offshor wind in m r in m rk ts. Th d v lopm nt, construction, nd op r tion of offshor wind proj cts could provid subst nti l b n fits for th Sri L nk n conom . Th ross v lu dd d (GVA) from offshor wind inv stm nts of diff r nt si s is illustr t d in T bl 3.4. Th ch rt shows th imp ct on GVA from offshor wind proj cts ov r th ir lif tim sort d b th xp ct d tim of commissionin . B tw n 2020 nd 2030 it is xp ct d th t 0.5 to 1GW offshor wind c p cit will b commission d. Durin construction nd ov r 25 rs of op r tion th s proj cts will n r t b tw n 570 nd US$1,330 million in GVA in Sri L nk . TABLE 3.4: ESTIMATES OF CUMULATIVE, LIFETIME GVA FROM DIFFERENT OFFSHORE WIND CAPACITIES UNDER THE TWO GROWTH SCENARIOS IN 2030. Dir ct Inv stm nt Indir ct Inv stm nt Tot l Imp ct on GVA (US$ million) (US$ million) (US$ million) Low Growth sc n rio 380 190 570 (500MW) Hi h Growth sc n rio 880 450 1,330 (1GW) Th tot l dir ct nd indir ct loc l mplo m nt ssoci t d with th d v lopm nt, construction, nd op r tion of 500MW of offshor wind is stim t d s round 25,000 FTE. In t rms of loc l v lu cr tion, th r is bi diff r nc b tw n CAPEX nd OPEX. Whil th construction of th OWF will t k pl c within short tim fr m , O&M continu s ov r t l st 25 rs. Thus, f w r full-tim mplo s will b n d d to d liv r th FTEs from O&M comp r d to construction. TABLE 3.5: LOCAL EMPLOYMENT EFFECT FROM OFFSHORE WIND INVESTMENT. Dir ct FTE Indir ct FTE Tot l FTE Low Growth sc n rio (500MW) 15,600 9,100 24,700 Hi h Growth sc n rio (1GW) 36,200 21,400 57,600 3K Findin s 26 3.5 HEALTH AND SAFETY B for offshor wind c n b d v lop d nd construct d in Sri L nk , cl r h lth nd s f t polici s nd rul s ov rnin offshor wind will n d to b put in pl c . This should includ r quir m nts for contr ctors d liv rin s rvic s durin surv s, construction, nd O&M buildin on, for x mpl , Europ n xp ri nc nd Glob l Wind Or nis tion (GWO) st nd rds — discuss d furth r in s ction 3.8 of th K F ctors r port [17]. This st t m nt should b dr ft d b loc l h lth nd s f t xp rts, but would b n fit from uid nc nd support from int rn tion l offshor wind h lth nd s f t xp rts. It is import nt to incorpor t cl r h lth nd s f t r quir m nts for contr ctors d liv rin s rvic s durin surv s, construction, nd O&M. It is imp r tiv th t th ri ht l v l of h lth nd s f t xp rtis is ttr ct d to th proj ct t n rl st . Curr ntl , Sri L nk n h lth nd s f t l isl tion pp rs to b limit d to cts nd r ul tions pr p r d b th Ministr of H lth, nd th Occup tion l H lth unit r ul tin on child l bour, work r comp ns tion, m t rnit b n fit ordin nc , nd th lik . Addition ll , th N tion l Institut of Occup tion l S f t Act, No. 38 of 2009 st blish d th “N tion l Institut of Occup tion l S f t nd H lth” (NIOSH) — st tutor bo rd which op r t s und r th ministr of l bour nd tr d union to dvis th Sri L nk n ov rnm nt on its n tion l occup tion l h lth nd s f t (OHS) polic . Furth rmor , NIOSH supports th ov rnm nt within r n of s rvic s includin pr v ntion of ccid nts nd incid nts, us of quipm nt, OHS h rds, OHS tr inin nd l isl tiv r quir m nts, s w ll s publishin inform tion r l tin to OHS. B s d on th limit d r ul tion within OHS, it will b r l v nt to b s th OHS r quir m nts in contr cts within th wind industr on r co ni d int rn tion l st nd rds. Throu h th pl nnin of futur xplor tion nd xtr ction of offshor h droc rbons, PDASL nd oth r Gov rnm nt ntiti s r d v lopin n w h lth nd s f t r ul tions. It is xp ct d th t th s will b l r l b s d on th principl s mplo d in th UK nd Norw , nd th t som of th s r ul tions will b pplic bl to offshor wind ctiviti s. This initi tiv could b n fit th d v lopm nt of offshor wind s it would h lp to duc t r ul tors ( nd loc l work rs) on th risks ssoci t d with th offshor nvironm nt, s w ll s mph si in th import nc of s f t whil workin offshor . 3.6 GRID INFRASTRUCTURE Sri L nk h s b n improvin th cov r of l ctrific tion ov r th p st d c d s. How v r, t th mom nt, th north rn nd northw st rn r ion h v r s without cc ss to l ctricit . Low popul tion or industri l d nsit c n b th r son of th low tr nsmission n twork m turit . In th n r tion nd tr nsmission d v lopm nt pl n (short- nd lon -t rm), th r is som focus on buildin mor onshor wind pow r pl nts nd th tr nsmission s st m to v cu t th wind pow r. Th xistin pl n h s not t k n into consid r tion th d v lopm nt of offshor wind, nor up r d s to th tr nsmission n twork to cop with th s pow r pl nts. A t pic l offshor wind f rm is t pic ll r t d b tw n 500MW to 1GW nd is si nific nt wh n comp r d with th n tion l inst ll d c p cit of 4.2GW. An ch n s in th ctiv or r ctiv pow r xch n du to f ult with n r tor of this m nitud would cr t si nific nt fr qu nc nd volt v ri tions on th l ctricit s st m. With th xistin s st m, nd th f ct th t it is n isl nd rid, th r is no ch nc to prop rl control, d mp th oscill tion, nd put th s st m b ck into norm l. 27 Offshor Wind Ro dm p for Sri L nk Wh n pl nnin th d v lopm nt of offshor wind in Sri L nk , from rid conn ction p rsp ctiv , th most import nt o l is to prop rl li n th wind f rm’s production with th consum r d m nd. Consid rin th l ctricit c nnot b consum d loc ll , th tr nsmission n twork must b built nd r inforc d s n d d, to tr nsport th l ctricit to th d m nd c ntr s. Th s c ntr s c n b industri l r ions, r sid nti l r s, pump-r s rv f ciliti s nd th pot nti l rid conn ction with Indi . Th l ctric l rid conn ction studi s nd simul tions must b p rform d throu hout th whol d v lopm nt nd p rmittin proc ss. Th will t ll with th curr nt nd futur infr structur wh th r th pl nn d wind f rm c n b conn ct d, wh th r th r is n r striction in op r tion, nd wh t n ds to b don to r mov th b rri rs. Th t ilor d offshor wind f rm rid conn ction r quir m nt must b discuss d, dr ft d, nd put in forc . As n isl nd countr with n isol t d nd vuln r bl n twork, sp ci l tt ntion must b p id on l ctrom n tic tr nsi nt n l sis. Som m rk ts with succ ssful offshor wind xp ri nc s, such s th UK nd T iw n, c n b us ful r f r nc for th pl nnin nd op r tion of rid with l r sc l offshor wind n r tion. 3.7 PORT INFRASTRUCTURE Of Sri L nk ’s four m jor ports, two — Colombo nd H mb ntot — r suit bl to support th inst ll tion of bottom-fix d offshor wind with onl minor up r d s. M jor up r d s, prim ril dr d in nd cr tion of stor rds, would b r quir d to us th ports of Trincom l nd K nk s nuthur i. Th port of H mb ntot , in p rticul r shows r t pot nti l for offshor wind inst ll tion, s it h s mpl l nds b hind th port r m inin for d v lopm nt nd d v lopm nt conc pt which includ s hint rl nd industri l on s. In t rms of inst ll tion ports for flo tin found tions, th port r quir m nts diff r r tl mon diff r nt flo tin found tion conc pts v n thou h th r r onl f w l din flo t r t chnolo i s. Du to th s diff r nc s nd l ck of inst ll tion tr ck r cord, lob l, r pr s nt tiv port r quir m nts b nchm rks for flo tin wind inst ll tion c nnot t b d riv d. Ar 2 (W st) nd Ar 3 (South st) c n b w ll s rv d b Colombo nd H mb ntot ports. Ar 1 (North) is l ss w ll s rv d for two r sons; firstl , th ch in of lim ston sho ls b tw n Sri L nk nd Indi (c ll d Ad m’s Brid ) forms n tur l b rri r to ship tr ffic in th northw st corn r of Sri L nk ; s condl , th ports in th w st nd northw st of th countr — Trincom l nd K nk s nuthur i — will n d m jor up r d s to s rv s offshor wind inst ll tion ports. To b conomic ll f sibl , such up r d s would r quir l r volum of offshor wind, such s th volum xp ct d for 2040-2050. With th sm ll r volum s xp ct d in th short t rm, solutions with f d r b r s (r th r th n cl ssic l full-s rvic inst ll tion port) c n b xplor d on proj ct- sp cific b sis. It m lso b possibl to us Indi n ports, such s Tuticorin, for wind f rms south of Ad m’s Brid . Th suit bilit of ch pot nti l port for offshor wind is summ ri d in T bl 3.6. 3K Findin s 28 TABLE 3.6: SUMMARY OF SUITABILITY OF POTENTIAL PORTS FOR BOTTOM-FIXED INSTALLATION. Port Suit bilit Comm nts • Own rship: ov rnm nt • Sri L nk ’s port, prim ril s rv s cont in r shippin • Id ll suit d to s rv Ar 2, p rts of Ar 1 nd 3 r within Suit bl , with minor r n Colombo up r d s • Port is runnin t c p cit with pl ns to xp nd • Suffici nt rd r xists nd is id ll loc t d, but is curr ntl in us for oth r purpos s nd would n d to b m d v il bl • Own rship: ov rnm nt • Us d s port for comm rci l l isur ctiviti s with furth r d v lopm nts in this dir ction pl nn d G ll Not suit bl • L ss th n minimum b rth l n th nd l ck of n rd r or th possibilit to d v lop n dj c nt rd m k this port unsuit bl for offshor wind inst ll tion • Own rship: public/priv t joint v ntur • C n s rv Ar 2 nd Ar 3 Suit bl , with minor H mb ntot • Conc ptu li d s l r compl x with port s rvic s nd up r d s industri l r s b hind th port; cor is op r tion l with xc ll nt options for xp nsion • Own rship: public • V rious t rmin ls r loc t d sc tt r d within l r Suit bl with m jor n tur l h rbour Trincom l up r d s • C n s rv most of Ar 1 nd ood portion of Ar 2 • Ashroff J tt would lik l r quir l r xp nsion to n bl compon nt tr nsport nd cr tion of rd r • Own rship: public • Port is not suit bl in its curr nt st t , but d v lopm nts r Suit bl with m jor K nk n sunthur i und rw nd would clos som of th suit bilit p up r d s • M jor up r d to cr t d qu t rd r nd dr d in works would ddition ll b r quir d With inst ll tion volum s of up to 1GW in th hi h rowth sc n rio, on inst ll tion port could cov r th ntir volum , iv n th ri ht loc tion nd st r d inst ll tion. If th ntir inst ll d volum is built within Ar 1, it is lso conc iv bl th t ll th inst ll tions could b don with f d r b r s st m, if th conomics nd lo istics of th proj cts llow, r tl r ducin th n d for up r d s to port infr structur . Du to th nticip t d mod r t volum of offshor wind xp ct d, it is lso import nt th t n up r d s m d to th ports for offshor wind r lso d si n d with multi-function l us , t kin pot nti ll r l v nt E&S issu s into consid r tion. Th up r d s should not s rv onl offshor wind lon , but lso iv n dd d v lu to th port b tw n offshor wind inst ll tion c cl s. An port d v lopm nt should b consid r d with th d v lopm nt of Indi n offshor wind proj cts in mind. Proj cts b in pl nn d in T mil N du r pr s nt l r opportunit for Sri L nk n ports ( nd industr ). An up r d d port suit bl for offshor wind m rsh llin nd inst ll tion m lso s rv som of th Indi n d v lopm nt. It is lik l th t ports in T mil N du, such s Tuticorin, will lso b up r d d, how v r th sc l of th d v lopm nt in th r ion ( sp ci ll if Sri L nk n proj cts r includ d) could r quir multipl construction nd m rsh llin ports. 29 Offshor Wind Ro dm p for Sri L nk 3.8 SUPPLY CHAIN Curr ntl , Sri L nk h s no tr ck r cord in offshor wind, but h s som c p biliti s in r l t d s ctors, such s onshor wind nd onshor l ctric l infr structur s w ll s offshor oil nd s proj cts. Offshor wind proj cts c n b n fit from Sri L nk ’s loc l xp rtis in p rmittin nd proj ct d v lopm nt, lon with op r tion nd m int n nc ctiviti s of th s infr structur proj cts. Th r r r l tiv l f w b n fits for proj cts to sourc loc ll for m n of th quipm nt/m t ri ls n c ss r to build nd op r t n offshor wind f rm b c us th ith r c rr r l tiv l l r inv stm nts with si nific nt risk, or th r is w ll- st blish d int rn tion l (Europ n, Indi n) c p cit to m t th d m nd which would b difficult for Sri L nk n comp ni s to n tur ll comp t with. Th ov r ll si of th Sri L nk n l ctricit m rk t s riousl limits options to d v lop th loc l suppl ch in, nd loc l inv stm nts would n d to b b s d not onl on th n ds of th Sri L nk n m rk t, but lso on s rvin th Indi n nd r ion l m rk ts. Th r nkin s, b s d on m trics k pin li nm nt with simil r ro dm ps from oth r countri s in th World B nk Group’s ro dm p s ri s, r xpl in d in mor d t il in s ction 13.8 (s T bl 13.2). Th ss ssm nt consid rs fiv f ctors nd w s m d in consult tion with loc l st k hold rs. Th curr nt st t of th suppl ch in is r fl ct d in T bl 3.7. Th scorin r fl cts th t th r is ov r ll numb r of r s wh r Sri L nk h s c p biliti s in p r ll l s ctors, such s onshor wind nd h v construction, how v r, l cks offshor xp ri nc in th s m r s. In n r l, offshor wind proj cts would b n fit most from Sri L nk n xp rtis in p rmittin nd proj ct d v lopm nt, lon with op r tion nd m int n nc ctiviti s for th offshor wind f rms. Th r r r l tiv l f w b n fits to proj cts to sourc loc ll for m n of th oth r it ms b c us th c rr si nific nt inv stm nt risk or th r is v r st blish d int rn tion l c p cit to m t th d m nd which would b difficult to comp t with. 3K Findin s 30 TABLE 3.7: EVALUATION OF SRI LANKAN SUPPLY CHAIN READINESS. B n fits of Sri L nk R cord nd C p cit Sri L nk C p bilit Inv stm nt Risk in in P r ll l S ctors Countr Tr ck Loc l Not bl C t or Opportunit Comp ni s Si of th Sri L nk in OSW Suppl WindForc , LTL D v lopin nd p rmittin Holdin s — C l x 1 3 4 2 2 R n w bl s N c ll , hub, nd ss mbl - 1 1 2 2 4 Bl d s - 1 1 2 2 4 Tow r - 1 1 2 2 4 Columbo Dock rd, Found tion suppl 1 2 2 2 4 Acc ss En in rin Arr nd xport c bl suppl - 1 1 2 2 4 Offshor subst tion suppl DIMO 1 2 2 2 3 Acc ss En in rin , Onshor infr structur suppl 1 4 3 3 1 DIMO WTG nd found tion inst ll tion - 1 1 1 4 2 ACL C bl s, Arr nd xport c bl s inst ll tion 1 2 2 3 4 DIMO WindForc , Wind f rm op r tion 1 3 4 4 4 LTL Holdin s WindForc , WTG m int n nc nd s rvic 1 3 4 4 4 LTL Holdin s B l nc of Pl nt (BoP) nd v rious Acc ss En in rin , 1 3 4 4 4 m int n nc DIMO D commissionin Acc ss En in rin 1 2 4 4 2 31 Offshor Wind Ro dm p for Sri L nk Th mod r t volum of offshor wind xp ct d in Sri L nk do s not iv n tur l inc ntiv s to loc li th suppl ch in. This is dir ctl r fl ct d in th ss ssm nt of suppl ch in, wh r proj ct d v lopm nt (lik l to b joint v ntur b tw n loc l comp ni s nd int rn tion l d v lop rs) nd op r tion nd m int n nc show th r t st b n fits in loc l sourcin . Th oth r r s, which prim ril compos th purch s d p rts, r cl ssifi d s low-l v l loc l b n fit b c us th c pit l nd workforc inv stm nts n d d to st blish th s p rts of th suppl ch in in Sri L nk c nnot b r coup d b th for s n volum s. Th suppl ch in b n fits r lik l to flow to n i hbourin Indi , which h s si nific ntl l r r m rk t si , nd mor dv nc d m nuf cturin c p biliti s, nd xports th t li n clos l with, nd lr d support th lob l wind industr . Exp ri nc in offshor wind m rk ts such s Fr nc nd T iw n h s shown th t ov rnm nt impos d loc l cont nt r quir m nts incr s t riffs, d v lopm nt risks, nd th pot nti l for d l s. It is th r for dvis bl to void loc l cont nt r quir m nts but inst d to off r inc ntiv s or initi tiv s to stimul t loc l industri l opportuniti s. In th comin rs, th offshor wind industr is xp ct d to b com s ll r’s m rk t s m n countri s h v nnounc d mbitious offshor wind o ls within th 2030 tim fr m nd b ond. In this nvironm nt, countri s which m k th d v lopm nt of offshor wind f rms s will h v comp titiv dv nt , nd vic v rs . Inv stm nts in th Sri L nk n offshor wind suppl ch in must consid r loc l n ds, but lso th n ds nd d v lopm nt p c of th of th l r r Indi n nd r ion l m rk ts. If Sri L nk n comp ni s in xp ri nc nd c p bilit in offshor wind throu h n tion l proj cts, this m n bl th m to s rv th xport m rk t mor ff ctiv l in th lon t rm. In th short t rm, how v r, Sri L nk n xports r not li n d in t p or sc l to support l r , r ion l, offshor wind v lu ch in. 3K Findin s 32 4 PATHFINDER PROJECT Th impl m nt tion of p thfind r proj ct is p rtin nt w of kickin -off th industr nd showc sin to th wid r public how offshor wind c n st rt to build out. Th si of th p thfind r proj ct n ds to strik b l nc b tw n s v r l f ctors: th si nd n tur of Sri L nk nd its rid m c ll for sm ll r proj cts, whil wind f rms of l r r si would b mor ttr ctiv to d v lop rs nd could h lp to r duc costs. Ev n thou h th Sri L nk n rid is n isol t d isl nd rid with no int rconn ctions t, l r r proj ct is r comm nd d to cr t b tt r busin ss c s . To provid l r -sc l contribution to Sri L nk ’s 2030 r n w bl n r t r t, 500MW p thfind r proj ct h s b n chos n s r f r nc c s nd summ ris d in this s ction nd discuss d furth r in s ction 14. 4.1 LOCATIONS FOR A PATHFINDER PROJECT Th consid r d options (furth r d scrib d in s ction 14.1 of this ro dm p) for th loc tion of p thfind r proj ct h v b n s l ct d b s d on th followin consid r tions: ■ W t r d pth llowin for fix d found tions (i. ., <50 m t rs) ■ Hi h wind sp d ■ Not in n nvironm nt l nd soci l xclusion on ■ Good rid conn ction possibilit ■ Acc ssibl from port suit bl for inst ll tion ctiviti s In summ r , th thr options s d pict d in Fi ur 3.4 r : ■ Option A: Gulf of M nn r. This r is loc t d round th north rn tip of th countr nd is ch r ct ris d b ood wind r sourc nd w t r d pths th t r , to l r xt nt, b low 50m llowin for fix d found tion solutions. How v r, th r is “n tur l” r striction in th form of Ad m’s Brid — ch in of n tur l lim ston sho ls cr tin v r sh llow w t rs which c nnot b p ss d b l r r v ss ls — th r b cuttin off l r p rt of th r wh n consid rin p thfind r proj ct. Th r r m n E&S r strictions in this r nd furth r inform tion is r quir d to ss ss wh th r d v lopm nt m b possibl with suffici nt miti tion. ■ Option B: Putt l m. This r h s low r risk in r l tion to nvironm nt l nd soci l constr ints, nd it is loc t d clos to th princip l d m nd c nt r nd port of Colombo. How v r, th wind r sourc in this r is sli htl low r th n Option A or C, with v r wind sp ds in th r n of 7.5-8.5m/s. 33 ■ Option C: H mb ntot . This r h s ood v r wind sp ds of 8-9m/s how v r, th suit bl r for fix d offshor wind is sm ll r nd mor disp r t th n in th Gulf of M nn r nd th r for , th pot nti l for xt nsions of pot nti l p thfind r proj ct is limit d nd mor compl x. This r lso h s num rous hi hl s nsitiv E&S issu s nd h s poor cc ss to tr nsmission rid, thou h up r d s r pl nn d. From “rou h scr nin ” point of vi w consid rin w t r d pth, wind r sourc , nd nvironm nt l nd soci l constr ints, Option A nd Option C r quit simil r. Option B h s th dv nt of f w r risks in r l tion to nvironm nt l nd soci l constr ints but shows sli htl low r wind sp ds. TABLE 4.1: OVERVIEW OF KEY CONSIDERATIONS FOR THE THREE OPTIONS FOR LOCATION OF A PATHFINDER PROJECT. Environm nt l W t r D pth N r st Option Wind Sp d nd Soci l Grid Conn ction L ss Th n 50m M jor Port Constr ints A North Ys 8-9m/s Hi h risk 220kV lin Colombo (within EBSA & IMMA) B W st Ys 7.5-8.5m/s Low r risk 220kV lin Colombo C South st Ys 8-9m/s Hi h risk 220kV lin H mb ntot (limit d) (within EBSA & IMMA) (to b construct d) Options A nd C both f tur subst nti l nvironm nt l nd soci l s nsitiviti s. A UNESCO-MAB Biosph r R s rv is loc t d round H mb ntot nd prot ct d m rin r runs lon th south st co st, m nin th t th l ctric l xport s st m from n proj ct in th Option C r would n d to p ss throu h this. Furth rmor , th onshor rid in this r ion is w k (thou h th r r pl ns to improv it) nd, lthou h m toc n conditions h v not b n inv sti t d in this ro dm p, th south st co st will b xpos d to mor s v r w v conditions. Option C lso h s unknown b th m tr , but with indic tions of st p s b d th t d p ns quickl . Th r m b som sh llow r w t r in this r , but it is lik l th t much of it will b d p r nd onl suit d to flo tin wind turbin s. Whil Option B h s l ss n r tic wind r sourc , it pp rs to h v f w r nvironm nt l nd soci l s nsitiviti s. It is lso clos to th port of Colombo nd to xistin tr nsmission rid. Options A nd B in th Gulf of M nn r r clos st to Indi nd could off r s n r i s with th pl nn d offshor wind proj cts in T mil N du. Coop r tion with Indi in this r ion could b ss nti l in brin in th b n fits of l r -sc l d v lopm nt to Sri L nk . From th inform tion v il bl on th s thr r s, Option A (M nn r) nd Option B (Putt l m) pp r to b mor f vor bl for Sri L nk ’s first offshor wind proj ct nd it is r comm nd d th t th f sibilit of both r s is inv sti t d furth r. As Option A, M nn r, h s hi h r wind r sourc , it is lik l to h v low r LCOE th n proj ct t th Option B, Putt l m loc tion. For this r son, this n l sis focus s on M nn r s possibl loc tion of p thfind r proj ct. To chi v som conomi s of sc l , nd provid proj ct sc l th t is ttr ctiv to inv stors, 500MW p thfind r proj ct h s b n ss ss d. 4 P thfind r Proj ct 34 A rou h stim t of th nnu l n r production (AEP) from 500MW p thfind r proj ct loc t d in th Gulf of M nn r south of Ad m’s Brid usin 12MW wind turbin n r tor (WTG) h s b n stim t d s outlin d in T bl 4.2. Th ross n r production is pr s nt d, follow d b th consid r tion of th w k loss s, which r th n r loss s c us d b r duction of wind sp d c us d b th w k of wind turbin nd imp ctin downwind turbin s. Fin ll , furth r s st m loss s r consid r d to d riv th n t AEP. TABLE 4.2: AEP ESTIMATE FOR 500MW PATHFINDER PROJECT IN THE GULF OF MANNAR. Wind sp d 8.8m/s Nos. of 12MW WTGs (150m hub h i ht) 42 Annu l ross n r production (P50) 2,535GWh W k loss ( ssumin 4.0%) 101.4GWh Annu l ross n r production (P50) 2,433GWh (includin w k loss s) Gross c p cit f ctor 55.1% Oth r loss s — l ctric l, out s, tc. (10% of P50) 243GWh N t Annu l En r Production (AEP) 2,190GWh LCOE12 US$75/MWh It must b not d th t this stim t is hi hl unc rt in s it is b s d on n unoptimi d l out with loss s onl rou hl stim t d. Furth rmor , it do s not t k into ccount n unc rt inti s, so this should b consid r d s hi h-l v l, pr limin r stim t which inh r ntl will ch n onc th optimi tion proc ss nd d t il d n l s s h v b n c rri d out. Usin th CAPEX nd OPEX ssumptions from th fin nci l n l s s in s ction 9.1 includin t r t WACC of six p rc nt (which is h vil contin nt on conc ssion l fin nc nd suffici nt risk miti tion) nd ppl in n t AEP of pproxim t l 2,190GWh p r r for th 500MW p thfind r proj ct, i lds n LCOE of round US$75 p r MWh. 4.2 PROCUREMENT OPTIONS Th d v lopm nt of offshor wind is compl t l diff r nt to th t of onshor wind or sol r. Th d v lopm nt tim lin , cost, nd risk r ll much r t r, so sp ci li d ppro ch to d v lopm nt nd procur m nt is r quir d to h lp ncour inv stm nt nd to driv down costs. Bro dl , th r r two t p s of comp titiv procur m nt mod ls (s Fi ur 4.1 nd s ction 3.2 of th K F ctors r port [17] for furth r discussion) th t h v volv d nd r us d b st blish d offshor wind m rk ts. 1. Gov rnm nt-l d ppro ch: A ov rnm nt t k s r sponsibilit for th sit id ntific tion nd rl d v lopm nt work, usu ll includin in-principl p rmits, to pr p r proj ct th t c n b us d in pric /t riff-b s d uction. Th d v lopm nt work is r quir d to iv bidd rs nou h inform tion nd suffici nt d t to stim t comp titiv pric of pow r. Th mount of unc rt int t th tim of biddin will dir ctl imp ct th bid pric . As this ppro ch onl h s sin l comp tition, it is som tim s known s th on -comp tition mod l. 12 Assumptions on CAPEX nd OPEX r th s m s d scrib d in T bl 9.1 sc l d to 500MW. Th LCOE is b s d on t r t WACC of six p rc nt which d p nds on suffici nt risk r duction nd th us of conc ssion l fin nc . 35 Offshor Wind Ro dm p for Sri L nk 2. D v lop r-l d ppro ch: A ov rnm nt provid s som uid nc on pr f rr d r s for d v lopm nt nd runs comp tition to w rd proj ct d v lop rs with xclusiv ri hts to xplor offshor r s. D v lop rs r th n r sponsibl for th rin d t , d v lopin proj ct, nd obt inin p rmits, b for th bid into t riff-b s d uction. As this ppro ch h s two s p r t comp titions (for s b d l s nd for t riff/offt k r m nt), it is som tim s known s th two-comp tition mod l. FIGURE 4.1: OVERVIEW OF ACTIVITIES, COMPETITIONS, AND RESPONSIBILITIES UNDER THE ONE- AND TWO-COMPETITION MODELS FOR OFFSHORE WIND PROCUREMENT. Government-led Government-Led / One-Competition Model (e.g., Germany, Netherlands) Developer-led Competition Initial Initial Project Site & PPA Project FC and Permitting* Permitting* Development* Agreements Development* Construction Marine Spatial Planning Exclusive Project Power Offtake FC and Permitting* Seabed Lease Development (PPA) Construction *Activity started by government and Developer-Led / Two-Competition Model (e.g,. UK, USA) completed by developer. Note: FC=Financial Close Sourc : World B nk Group, d pt d from Fi ur 3.3 in K F ctors r port [17]. Th two-comp tition mod l c n work w ll in l r m rk ts, wh r m n GWs of proj cts r und r d v lopm nt. Th d si n of th comp titions, includin th r t s t which sit s nd PPAs r w rd d, c n b us d to nsur th t th r is suffici nt numb r of d v lop rs nd proj cts p rticip tin to cr t comp titiv t nsion t l s nd pow r offt k comp titions. Th on -comp tition mod l is mor pplic bl wh n th r is pp tit for ov rnm nt to clos l control nd t k th risk of d v lopm nt, nd in c s s wh r th r is limit d comp tition for l s s or offt k r m nts. A ov rnm nt-l d ppro ch c n lso b h lpful in r ducin risk b for w rdin proj cts to priv t d v lop rs, th r b r ducin th risk th t is born b d v lop rs nd pot nti ll h lpin to r duc costs nd d l s. Sri L nk m r quir round 1GW of offshor wind c p cit in th m dium-t rm. In th cont xt of offshor wind, this is sm ll m rk t opportunit nd could lik l b d liv r d b on to thr proj cts. Proj cts of 500MW or l r r will b n fit from conomi s of sc l nd will h v low r cost of l ctricit . This volum will not cr t suffici nt comp titiv t nsion to succ ssfull run two-comp tition mod l. WBG th r for r comm nds th t on -comp tition mod l is us d to procur Sri L nk ’s first offshor wind proj cts. This ppro ch h s th dv nt of d l in th p rticip tion of priv t s ctor d v lop rs, th r b llowin th countr ’s conomic clim t to r cov r b for ncour in int rn tion l inv stm nt. 4 P thfind r Proj ct 36 4.3 NEXT STEPS FOR DEVELOPMENT OF A PATHFINDER PROJECT Curr ntl , Sri L nk mplo s mix d ppro ch for t nd r proc ss s r l t d to r n w bl n r proj cts b s ttin th t nd r sp cific tions nd r quir m nts d p ndin on th p rticul r t nd r. Curr ntl , th l ck of offshor wind r ul tor xp ri nc nd th l ck of n offshor wind d dic t d l l fr m work indic t th t th proc ss pr domin t l should b ov rnm nt l d in ord r to d risk th proj ct. As pr viousl m ntion d, th d v lopm nt of offshor wind proj cts t k s consid r bl lon r th n for onshor r n w bl n r proj cts. To void d l s nd hi h r costs, it is lso import nt to focus on qu lit nd risk r duction to nsur th t d t nd d v lopm nt work c n b r li d upon b d v lop rs biddin into th futur t nd r. Fi ur 4.2 summ ri s th m in ph s s in th d v lopm nt nd d liv r of n offshor wind proj ct und r ov rnm nt-l d procur m nt mod l. Th di r m focus s on th ov rnm nt-l d d v lopm nt nd pr p r tor ctiviti s th t n d to occur b for proj ct t nd r, lon with n stim t d tim lin for this work. Th tim lin s r pproxim t nd will v r d p ndin on th v il bilit of r sourc s nd th scop nd s qu ncin of ctiviti s, which will b inform d b th findin s of pr vious t sks. FIGURE 4.2: REPRESENTATIVE TIMELINE FOR TYPICAL GOVERNMENT-LED DEVELOPMENT ACTIVITIES AHEAD OF A PROJECT TENDER COMPETITION. Proj ct & PPA T nd r GOVERNMENT ACTIVITIES DEVELOPER ACTIVITIES Ar Sit Sit Inv sti tions, D v lopm nt & Construction Op r tion S l ction S l ction D si n, & P rmittin Procur m nt Sp ti l Pl nnin Sit Ass ssm nt Grid Conn ction Pl nnin St k hold r En m nt Wind Mod lin Wind & M toc n M sur m nts Environm nt l & Soci l Scopin Env. & Soc. Surv s ESIA Approv l Pr -F sibilit F sibilit Studi s G oph s Surv s G ot ch Surv s R ul tor An l sis T nd r D si n Est blish T r ts & Polic Offshor Wind D v lop r Consult tions 9-12 Months 18-24 Months WBG r comm nds th followin short-t rm (9-12 months) ctions to pro r ss this pr p r tor work: 1. SLSEA nd PDASL si n M mor ndum of Und rst ndin , form li in th ir coop r tion on offshor wind, d cl rin t l st th two r s (M nn r nd Putt l m) s priorit for pot nti l offshor wind d v lopm nt, nd st blishin common block d finition cross Sri L nk ’s w t rs. 2. SLSEA d v lops nd publish s (or G tt s) polic for offshor wind, st tin t r t c p cit , tim lin , nd th chos n procur m nt mod l. 37 Offshor Wind Ro dm p for Sri L nk 3. WBG commissions t chnic l ssist nc work to inform d cision-m kin , includin ; • Environm nt l nd soci l n l sis to: – Id ntif k st k hold r roups – Comm nc initi l st k hold r n m nt – G th r ddition l xistin sp ti l d t on nvironm nt l nd soci l issu s – Upd t sp ti l pl nnin work comm nc d und r this ro dm p • Wind n l sis usin m sosc l mod ls nd incorpor tin xistin onshor /co st l m sur m nts of d t , sp ci ll from M nn r Isl nd • Grid conn ction ss ssm nt in coll bor tion with CEB to id ntif pot nti l options for conn ction loc tions nd c p citi s • R ul tor p n l sis nd r comm nd tions on n r quir d m ndm nts to d liv r th ov rnm nt-l d procur m nt mod l • Pr p r d t il d scop of works nd costin for sit d t coll ction, f sibilit ss ssm nt, nd t nd r d si n, to b d liv r d und r r nt x cut d b SL ov rnm nt with WB support. As Fi ur 4.2 shows, this initi l ph s of pr p r tor work informs lon r ph s of sit surv s nd d t il d studi s. Th ctiviti s und r this ph s of work r r quir d to r duc proj ct d v lopm nt risks nd provid mor c rt int bout th proj ct b for it is t nd r d. Th s ctiviti s includ ; ■ G oph sic l inv sti tions — surf c inv sti tions which ch r ct ri th s b d (d pth, b th m tr , structur , obj cts, nd h rds . ., UXOs). D p ndin on th r sourc s v il bl , this m lso includ t r t d ot chnic l inv sti tions. ■ M toc n stud comprisin loc tion (coordin t s) nd n r l sit d scription, b th m tr nd tid l d t , wind d t , nd w v d t . ■ Sit -sp cific wind stud includin d t coll ct d on sit for t l st 12 compl t months. ■ Environm nt l nd soci l scopin nd initi l ss ssm nt, includin b s lin studi s th t cov r multipl s sons nd/or nnu l c cl s — t pic ll , bird nd m rin m mm l surv s should sp n t l st two rs. St k hold r n m nt should lso inform th scopin nd ss ssm nt. This inform tion is us d s th b sis for proj ct-sp cific nvironm nt l nd soci l imp ct ss ssm nt (ESIA) which could ith r b c rri d out b th ov rnm nt (providin in-principl p rmits) or l t r b th s l ct d d v lop r. ■ Grid int r tion stud n l in th rid cod r quir m nts nd th possibl n d for r inforc m nt/up r d of th xistin rid tr nsmission s st m or n xt nsions if n c ss r . ■ Port stud , n l in xistin v il bl ports nd sp cif in th n ds for up r d s. Althou h limit d in numb r, th r quir d studi s will t pic ll t k round 18 to 24 months to pr p r nd und rt k s th d t coll ct d n ds to b of suffici nt qu lit nd th r d ov r lon p riod in ccord nc with ood int rn tion l industr pr ctic (GIIP). S ction 15 lso provid s furth r inform tion on sp cific studi s nd surv s, s w ll s providin rou h cost stim t s. Whil th s sit surv s nd studi s r pro r ssin , th ov rnm nt should d si n th t nd r comp tition, in consult tion with th industr , nd publish th proc ss nd rul s w ll h d of th comp tition d t . 4 P thfind r Proj ct 38 5 OPPORTUNITIES AND CHALLENGES This wid -r n in ro dm p x min s m n f c ts of pot nti l offshor wind industr nd pr s nts r comm nd tions nd pl ns for r li in it. In th Sri L nk n cont xt, som of th s pl ns nd r comm nd tions will b p rticul rl ch ll n in , whil som oth rs will pr s nt opportuniti s th t c n onl b chi v d with offshor wind. This ch pt r d scrib s th most import nt of thos opportuniti s nd ch ll n s. 5.1 OPPORTUNITIES ■ Offshor wind could h lp Sri L nk to chi v th o l of 70 p rc nt r n w bl n r . As individu l onshor wind nd sol r PV proj cts in Sri L nk to d t h v t nd d to b sm ll, nd l nd is pr cious r sourc , th ir d plo m nt r t could b insuffici nt to full m t th 2030 t r t. Offshor wind h s th pot nti l to provid l r -sc l contribution to h lp chi v th ov rnm nt’s d c rboni tion t r ts, sp ci ll in th lon r t rm. ■ Offshor wind op ns th opportunit to xport r n w bl n r to Indi nd r ion ll sinc Sri L nk h s pot nti l to n r t mor l ctricit th n consum d dom stic ll . A pl nn d int rconn ction with Indi could off r cc ss to r ion l l ctricit m rk ts, th r b providin l r -sc l incom for Sri L nk . ■ Around US$570 million in GVA could b n r t d for th Sri L nk n conom ov r 25 rs throu h th d v lopm nt, construction, nd op r tion of 500MW of offshor wind. ■ Pow r-to-X (PtX) options, such s r n h dro n nd mmoni , could off r lt rn tiv futur us s for offshor wind n r tion. This could includ th d c rboni tion of loc l industr nd xistin h dro n consum rs, production of r n shippin fu ls for v ss ls c llin t Sri L nk ’s ports, or pot nti ll for xport s n ppropri t n r v ctor. Th t s id, du to th hi h production costs, this is lon r-t rm opportunit nd is unlik l to f tur in th busin ss c s for th countr ’s first proj cts. 5.2 CHALLENGES Whil th r r num rous ch ll n s to d v lopin offshor wind, th s r common to m n countri s lookin to d plo this t chnolo for th first tim . Som of th m in ch ll n s includ : ■ Th countr is curr ntl xp ri ncin s v r conomic crisis. Un bl to s rvic its hi h d bt costs, it nnounc d d bt d f ult in mid-2022. A l r tr d imb l nc , x c rb t d b xp nsiv fossil fu l import costs, contribut d to th crisis. Tr nsitionin to r n w bl n r nd th r b r ducin fu l imports is xp ct d to b n import nt ction in th countr ’s r cov r . 39 ■ Offshor wind h s hi h r cost th n onshor wind nd sol r PV which could low r int r st to st rt d v lopin th offshor wind industr in tim l m nn r. How v r, th r li bl pot nti l of onshor r n w bl s m not b suffici nt to m t th countr ’s n r n ds nd d c rboni tion obj ctiv s b 2030 nd b ond. Sinc offshor wind is n ttr ctiv option to r mp-up r n w bl n r tion in Sri L nk , th d v lopm nt of both onshor nd offshor r n w bl s n ds to b vi w d holistic ll to r ch th countr ’s mbitious o ls. ■ Th dom stic suppl ch in pot nti l is limit d. Sri L nk would th r for b hi hl d p nd nt on int rn tion l suppli rs nd d v lop rs for quipm nt nd m t ri ls. Th r l tiv l sm ll volum of offshor wind xp ct d in Sri L nk its lf do s not off r n tur l inc ntiv s to loc li th suppl ch in si nific ntl . How v r, th much l r r volum of offshor wind d v lopm nt in th r ion off rs pot nti l for suppl ch in d v lopm nt in th r ion, includin xport opportuniti s for Sri L nk . ■ Sri L nk h s no tr ck r cord in offshor wind. Th countr non th l ss h s som c p biliti s in p rmittin nd infr structur d v lopm nt s w ll s op r tion nd m int n nc (O&M) in r l t d s ctors, such s onshor wind nd onshor l ctric l infr structur s w ll s offshor oil nd s xplor tion. ■ Port infr structur n ds to b prop rl ss ss d nd up r d d. Th up r d s r r quir d for th countr ’s ports to suit th r quir m nts of offshor wind inst ll tion op r tions nd sp ci li d v ss ls. Of Sri L nk ’s four m jor ports, Colombo nd H mb ntot r suit bl to support th inst ll tion of bottom-fix d offshor wind with onl r l tiv l minor up r d s. Trincom l nd K nk s nuthur i, how v r, would n d m jor up r d s to b suit bl . C p bl ports could lso llow th possibilit of suppl in th Indi n offshor wind industr . ■ No d dic t d offshor wind r ul tor nd institution l fr m work h s b n dopt d. Th xistin l l nd r ul tor s st m is prim ril r d tow rds sm ll r sc l , onshor r n w bl proj cts which do s not provid th n d d cl rit nd c rt int sp ci ll with r rd to pl nnin nd p rmittin . ■ Th tr nsmission s st m r quir s str n th nin in consid r tion of th offshor wind c p citi s to b dd d. Addin offshor wind f rms of 500MW to 1GW ch will h v si nific nt imp ct on th tr nsmission s st m. To b bl to h ndl this r mp-up, th r is n d for prop r pl nnin nd inv stm nts in rid infr structur to provid th n c ss r up r d s. ■ L r CAPEX, insuffici nt, nd hi h cost of dom stic c pit l r ch ll n s to n fford bl cost of l ctricit from Sri L nk ’s first offshor wind d v lopm nts. Th cost of c pit l from Sri L nk n b nks is quit hi h sinc int r st r t s on lo ns could run s hi h s 15 p rc nt. Loc l b nks will lik l not b bl to provid lo ns t th sc l nd with th t nor n d d for offshor wind. Int rn tion l c pit l will n d to fin nc proj cts nd cc ss to low-cost conc ssion l fin nc will b ss nti l to r duc th cost of n r of th first offshor wind proj cts. 5 Opportuniti s nd Ch ll n s 40 6 ROADMAP AND RECOMMENDATIONS Th pr vious ch pt rs h v x min d th curr nt situ tion r rdin offshor wind nd its pot nti l in Sri L nk nd pr s nt d th findin s nd m jor th m s. This ch pt r ims to tr nsform thos findin s into concr t s t of r comm nd tions for th Gov rnm nt of Sri L nk . D p ndin both on th xt nt to which th s r comm nd tions r impl m nt d nd m rk t conditions, th r r r n of rowth outcom s possibl for offshor wind. This ro dm p consid rs two possibl rowth sc n rios which r pr s nt low r bound — th low rowth sc n rio — nd hi h r bound — th hi h rowth sc n rio. Fin ll , th r comm nd tions nd rowth sc n rios r combin d with tim sch dul , r sultin in two ro dm ps for th d v lopm nt of offshor wind in Sri L nk . 6.1 RECOMMENDATIONS Kick-st rtin n offshor wind industr c n b don t diff r nt rowth r t s, but th ov r ll d v lopm nt mil ston s nd r comm nd tions for Sri L nk r m in simil r. Th r comm nd tions m inl focus on ctions to b t k n on th short-t rm, but som c n sp n ov r th ntir tim fr m up to 2050. Most of th s r comm nd tions r qu ll v lid for th low rowth or hi h rowth sc n rios. Vision nd Volum T r ts 1. Sri L nk n Sust in bl En r Authorit (SLSEA) nd C lon El ctricit Bo rd (CEB) should int r t offshor wind into th lon -t rm n r tion xp nsion pl n (LTGEP). A holistic pl n, support d b n r s st m mod lin should consid r th ch r ct ristics of offshor wind nd its pot nti l contribution to th countr ’s d c rboni tion o ls. 2. SLSEA should st blish lon -t rm vision for offshor wind includin inst ll tion t r ts. Includin both short r (i. ., 2030) nd lon r (i. ., 2050) t r ts h lps inv stors to pl n nd iv s confid nc in th m rk t opportunit . Th vision should b inform d b th LTGEP nd conomic n l sis. Lon r-t rm opportuniti s such s flo tin wind nd r n h dro n should lso b includ d in th vision. 3. On or two 500MW p thfind r proj ct(s) should b consid r d b SLSEA. This c p cit could b commission d round 2030 nd would h lp to ov rcom b rri rs nd risks for futur c p cit dditions, n blin subs qu nt cost r ductions. 41 R ul tor nd Polic Fr m work 4. SLSEA in coll bor tion with oth r uthoriti s such s P trol um D v lopm nt Authorit of Sri L nk (PDASL) nd M rin Environm nt l Prot ction Authorit (MEPA), should l d int r t d sp ti l pl nnin to id ntif nd ss ss th pr f rr d loc tions for futur offshor wind proj cts. Th sp ti l pl nnin should includ st k hold r n m nt nd str t ic b s lin studi s to nsur w ll-inform d sit s l ction. This work c n b support d b subs qu nt t chnic l ssist nc from d v lopm nt p rtn rs. 5. Sri L nk should follow ov rnm nt-l d ppro ch to pl nnin nd procurin th p thfind r proj ct(s). Th SLSEA should pl n this ppro ch, discuss it with industr nd oth r st k hold rs, th n publish it in th Sri L nk G tt . Th proc ss should b comp titiv , f ir, nd tr nsp r nt, t kin l ssons from int rn tion l xp ri nc s nd incorpor tin th m with loc l norms. 6. SLSEA should c rr out r ul tor p n l sis nd id ntif n r quir d m ndm nts or n w r ul tions to d liv r th ov rnm nt-l d procur m nt mod l. M n l m nts of th fr m work c n b djust d to suit th r quir m nts of offshor wind but oth rs, such s th provision of s b d l s s/conc ssions m r quir n w l isl tion. 7. Th C ntr l Environm nt l Authorit (CEA), in coll bor tion with SLSEA, should d v lop nd publish d t il d uid nc on th p rmittin proc ss. This should includ list of ll th p rmits, uthoriti s, nd tim lin s to b consid r d. This should lso includ th import nt nvironm nt l nd soci l imp ct ss ssm nt (ESIA) proc ss followin ood int rn tion l industr pr ctic (GIIP). Fin nci l nd Economic 8. SLSEA, with support from d v lopm nt p rtn rs, should inv sti t th us of d riskin m ch nisms, includin u r nt s, nd opportuniti s to mobili low-cost conc ssion l fin nc . Th obj ctiv is to nsur th p thfind r proj ct(s) risk is suffici ntl miti t d to ncour inv stors nd to r duc th cost of fin ncin . This will h lp to r duc th cost of l ctricit nd nsur th p rticip tion of comp t nt, xp ri nc d d v lop rs, which will incr s th ch nc of succ ssful d liv r . 9. Th CEB should st blish lon -t rm, b nk bl , pow r purch s r m nt (PPA). This should t k into ccount th sp cificiti s of offshor wind, f irl lloc tin risk b tw n off-t k r nd d v lop r, nd id ll ddr ssin xch n r t risk, r p tri tion of profits, nd curt ilm nt p m nts. Th PPA must b consid r d b nk bl for proj cts to obt in d bt fin ncin . 10. SLSEA nd CEB should lso consid r th f sibilit nd pot nti l b n fits of r n w bl n r support sch m s. This would includ n ddition l m ch nisms n d d to r duc th PPA pric to n cc pt bl , fford bl l v l. 6 Ro dm p nd R comm nd tions 42 H lth nd S f t (H&S) 11. Th Gov rnm nt should introduc H&S r quir m nts in li nm nt with industr b st-pr ctic st nd rds. This should dopt int rn tion l st nd rds with lon tr ck-r cord, which nsur s s f proc dur s durin inst ll tion nd op r tion. Grid nd Port Infr structur 12. Th Sri L nk Ports Authorit (SLPA) should ss ss port r quir m nts nd options for up r din ports to support th inst ll tion of th p thfind r nd subs qu nt proj cts. This should consid r th f sibilit nd m rits for up r din Sri L nk ’s ports nd wh th r th r r mor conomic l options. 13. Assumin loc l port should b up r d d, SLPA should und rt k works to improv th c p biliti s of th port of Colombo nd/or H mb ntot . Th works should b str t ic, consid rin opportuniti s to suppl /s rvic proj cts b in d v lop d in Indi s w ll s dom stic ll . 14. SLPA should ss ss nd up r d sm ll r loc l ports to us in th O&M ph s in ord r to nh nc loc l job cr tion s w ll s nsur r li bl , s f , nd l stin op r tion of th wind f rms. 15. CEB should includ offshor wind in th n xt it r tion of th lon -t rm tr nsmission d v lopm nt pl n (LTTDP). This should b b s d on th LTGEP, nd th t r ts nd tim lin s s t b SLSEA. 16. CEB should cl rif which ntit is r sponsibl for constructin nd op r tin th xport s st m b tw n n offshor wind f rm nd th onshor tr nsmission rid. It is r comm nd d th t this should b th r sponsibilit of th d v lop r, thou h CEB could b b st pl c d to l d th onshor work. 17. CEB should construct str t ic tr nsmission r inforc m nts. Giv n th sc l nd lon d v lopm nt tim s of offshor wind proj cts, th s si bl r inforc m nts should b pl nn d nd impl m nt d w ll in dv nc of proj cts b in commission d. Th c n b d liv r d str t ic ll to void l ss- ffici nt proj ct-b -proj ct ppro ch. 18. Th Ministr of Pow r nd CEB should continu to xplor th l ctric l int rconn ction link with Indi . This could n bl th p rti l or full s l of offshor wind n r t d pow r to consum rs or m rk ts in th r ion, s w ll s h lpin to b l nc th loc l rid nd f cilit t th int r tion of v ri bl r n w bl n r . 19. As p rt of lon -t rm d c rboni tion pl n, SLSEA nd PDASL should xplor th pot nti l to produc r n h dro n nd mmoni . It is unlik l to b conomic ll vi bl in th short r t rm but, in th bs nc of n int rconn ctor with Indi , this could b com critic l p rt of th Sri L nk n n r s st m. Alt rn tiv l , ch p r sourc s of l ctricit could b us d to produc r n h dro n, nd offshor wind could b us d to suppl th rid. 43 Offshor Wind Ro dm p for Sri L nk Suppl Ch in 20. SLSEA nd th Sri L nk Ports Authorit (SLPA) should consid r th m rits of inc ntiv s to support industr rowth nd loc l suppl ch in c p bilit . This could, for x mpl , includ t x x mptions/r ductions, v il bilit of r duc d r t l nd/prop rt within port r s, or cc ss to low r-cost fin nc . 21. SLSEA nd r l v nt Gov rnm nt nci s should m p loc l suppl ch in c p biliti s. This should id ntif loc l firms with n c p bilit or lik l futur c p bilit to suppl or s rvic offshor wind proj cts. 22. SLSEA should consid r st blishin str t ic r ion l p rtn rships with oth r offshor wind m rk ts. Suppli rs in Indi , Chin , nd Vi tn m for x mpl , could b n lt rn tiv to ov rcom dom stic suppl ch in constr ints nd to both dr w on r ion l skills nd h lp d v lop th m dom stic ll . 6 Ro dm p nd R comm nd tions 44 6.2 ROADMAPS FIGURE 6.1: LOW GROWTH SCENARIO FOR OFFSHORE WIND DEVELOPMENT IN SRI LANKA. Mid-t rm Lon -t rm Short-t rm Achi v Driv Down Build Mom ntum Volum LCOE Su st d Actions 2022 2023 2024 2025 2026 2027 2028 2029 2030 2030-2040 2040-2050 1 Inst ll bottom-fix d d monstr tion proj ct 0.5 GW 1.0 GW 1.5 GW Op r tion l 2 Inst ll bottom-fix d wind f rms (cumul tiv c p cit ) OWF C p cit 0.5 GW Inst ll flo tin d monstr tion nd comm rci l wind 3 f rms (cumul tiv c p cit ) 4 Communic t inst ll tion t r t for 2030 Ensur n int r t d pl nnin ppro ch includin l nd, 5 cost l, nd m ritim sp ti l pl nnin D risk proj ct d v lopm nt b nsurin dv nc d R ul tor nd 6 comp titiv procur m nt rout s r b in conduct d polic fr m work r f ir nd tr nsp r nt Conduct n ov r ll r form li n d with int rn tion l 7 procur m nt conditions nd l w, s th offshor wind s ctor m tur s 8 Publish d t il d uid nc on th p rmittin proc ss 9 R duc WACC to 6% to r duc cost of c pit l Fin nci l nd 10 Attr ct inv stor int r st for construction nd O&M conomic 11 Est blish b nk bl PPA with b l nc d risk lloc tion H lth nd 12 Impl m nt industr b st-pr ctic st nd rds S f t 13 Up r d t l st on inst ll tion 14 Up r d sm ll r loc l ports to us in O&M ph s Cr t m st r offshor wind port pl n which ti s th Grid nd port 15 loc tion nd si of wind f rms to port up r d s nd infr structur iv s sch dul for up r d s 16 P rform rid imp ct n l s s nd point r inforc m nt 17 Compl t lon -t rm port pl nnin nd up r d s Mobili dom stic suppl ch in ( s curr ntl Sri L nk Suppl ch in 18 do s not h v xp ri nc with offshor wind) 45 Offshor Wind Ro dm p for Sri L nk FIGURE 6.2: HIGH GROWTH SCENARIO FOR OFFSHORE WIND DEVELOPMENT IN SRI LANKA. Mid-t rm Lon -t rm Short-t rm Achi v Driv Down Build Mom ntum Volum LCOE Su st d Actions 2022 2023 2024 2025 2026 2027 2028 2029 2030 2030-2040 2040-2050 1 Inst ll bottom-fix d d monstr tion proj ct 1 GW 2 GW 3 GW Op r tion l 2 Inst ll bottom-fix d wind f rms (cumul tiv c p cit ) OWF C p cit 0.5 GW 1 GW Inst ll flo tin d monstr tion nd comm rci l wind 3 f rms (cumul tiv c p cit ) 4 Communic t inst ll tion t r t for 2030 Ensur n int r t d pl nnin ppro ch includin l nd, 5 cost l, nd m ritim sp ti l pl nnin D risk proj ct d v lopm nt b nsurin dv nc d comp titiv procur m nt rout s common to l r R ul tor nd 6 sc l OWF proj cts r b in conduct d r f ir nd polic fr m work tr nsp r nt Conduct n ov r ll r form li n d with int rn tion l 7 procur m nt conditions nd l w, s th offshor wind s ctor m tur s 8 Publish d t il d uid nc on th p rmittin proc ss 9 R duc WACC to 6% to r duc cost of c pit l Fin nci l nd 10 Attr ct inv stor int r st for construction nd O&M conomic 11 Est blish b nk bl PPA with b l nc d risk lloc tion H lth nd 12 Impl m nt industr b st-pr ctic st nd rds S f t 13 Up r d t l st on inst ll tion port 14 Up r d sm ll r loc l ports to us in O&M ph s Cr t m st r offshor wind port pl n which ti s th 15 loc tion nd si of wind f rms to port up r d s nd iv s sch dul for up r d s Grid nd port 16 P rform rid imp ct n l s s nd point r inforc m nt infr structur 17 Compl t lon -t rm port pl nnin nd up r d s P rform lon -t rm rid pl nnin nd n c ss r 18 r inforc m nt, includin possibl int rconn ction link with Indi 19 Explor PtX pl nt for storin xc ss l ctricit 20 Mobili dom stic suppl ch in Suppl ch in D v lop r ion l p rtn rships to f st tr ck dom stic 21 suppl ch in ( . ., with Chin , Vi tn m, Indi ) 6 Ro dm p nd R comm nd tions 46 SUPPORTING INFORMATION 47 7 ASSESSMENT OF OFFSHORE WIND AREAS Sri L nk h s ood conditions for offshor wind nd pr vious work [1] b th World B nk stim t d Sri L nk h s 91GW of t chnic l pot nti l. Th pr vious sp ti l ss ssm nt w s limit d in th t it onl consid rs wind sp d nd w t r d pth s th m in p r m t rs d finin th r sourc pot nti l. Th scr nin for offshor pot nti l p rform d und r this ro dm p builds on th pr vious work nd includ s n ss ssm nt of s b d conditions, wind r sourc , nd nvironm nt l nd soci l constr ints. With th s thr topics m pp d, th ov r ll loc tion l pot nti l c n b stim t d. 7.1 SEABED CONDITIONS This s ction provid s pr limin r ss ssm nt of th s b d, olo , nd s ismic conditions offshor Sri L nk . G olo nd s ismic conditions r includ d in th scr nin s th s f ctors imp ct found tions nd th structur l int rit of OWFs. Extr m or h rsh conditions m r sult in xclusion of som r s. It sh ll b not d th t th d t pr s nt d is not of qu lit suit bl for d si n nd sh ll b consid r d s for inform tion onl . Mor d t il d h dro r phic, oph sic l, nd ot chnic l surv s nd r sults r r quir d durin th d v lopm nt of offshor windf rms. 7.1.1 D t Th m in v il bl d t th t h v b n us d s b sis for th scr nin is: ■ B th m tr — rid from GEBCO (~450m r solution) ■ Morpholo — d t from ESRI ■ F ults — d t provid d b PDASL 48 7.1.2 Morpholo Th b th m tr offshor Sri L nk shows th t r l tiv l sh llow w t rs r found to th north b tw n Sri L nk nd Indi , wh r s r s of sh llow w t rs r mor limit d in th south (Fi ur 7.1). FIGURE 7.1: BATHYMETRY OFFSHORE SRI LANKA [25]. Sourc : GEBCO 49 Offshor Wind Ro dm p for Sri L nk W t rs sh llow r th n -50m r t pic ll suit bl for fix d wind turbin n r tors (WTGs). W t r d pths b ond th -500m contour lin r l ss conomic l for flo tin found tions. L r -sc l morpholo ic l s b d f tur s ( . ., sh lf v ll s nd sc rpm nts), r shown on Fi ur 7.2. Esc rpm nts r l t d to st p slop s t th tr nsition from sh lf to b ss r domin nt lon th ntir co stlin xc pt in th northw st rn r . A promin nt sh lf v ll is found t Trincom l on th north st co st. FIGURE 7.2: MORPHOLOGY OFFSHORE SRI LANKA SHOWING GENERAL LARGE- SCALE FEATURES [26]. 7 Ass ssm nt of Offshor Wind Ar s 50 Th northw st rn co st is shi ld d b th Indi n subcontin nt nd pr s rv s lon shor s dim nts th t rriv with th southw st monsoon p riod. H nc , m n isl nds nd s dim nt b rri rs r found lon th co st [27]. Alon th northw st rn, north rn, nd st rn co sts n t ccumul tion is t kin pl c , m nin th t th co stlin s r xp ndin . On th contr r , lon th southw st rn nd north st rn co sts s curr nts c us d b th southw st monsoon l ds to n t rosion, m nin th t th co stlin s r r tr tin [28, 27]. 7.1.3 G olo G olo ic ll , 90 p rc nt of Sri L nk is m d up of Pr c mbri n cr st llin rocks nd h v b n divid d into four compl x s, th W nni Compl x, th Hi hl nd Compl x, th K du nn w Compl x, nd th Vij n Compl x (Fi ur 7.3). Th r l tiv l v ls of l nd nd s h v r m in d pr ctic ll th s m sinc Mioc n tim s. How v r, minor post-Mioc n oscill tions in s l v l h v l d to th d position of Mioc n to Qu t rn r form tions nd ch n s in th co st l r ions [28]. Thr m in s dim nt r b sins r found offshor Sri L nk : th C uv r B sin, th M nn r B sin, nd th South rn B sin (L nk B sin) (Fi ur 7.3). C uv r nd M nn r b sins r loc t d on rift m r in b tw n Indi nd Sri L nk , whil th South rn B sin is p ssiv m r in. Wh r s l r p rts of th South rn B sin r und rl in b oc nic crust, th r is no vid nc to support th t th r is oc nic crust d v lopm nt in th C uv r or M nn r b sins. Rocks of th W nni Compl x compris th b s m nt in th C uv r B sin s w ll s in th north rn p rt of th M nn r B sin. In th south rn p rt of th M nn r B sin nd in p rts of th South rn B sin th b s m nt is compris d of rocks from th Hi hl nd Compl x. To th st, th Vij n Compl x xt nds out in th South rn B sin. Within th M nn r nd C uv r b sins, m jor f ults which r cuttin th b s m nt h v b n int rpr t d b s d on s ismic xplor tion surv s (Fi ur 7.4). 51 Offshor Wind Ro dm p for Sri L nk FIGURE 7.3: SIMPLIFIED GEOLOGICAL MAP OF SRI LANKA PRESENTING THE SUBDIVISION OF THE CRUSTAL BASEMENT: THE WANNI COMPLEX, THE HIGHLAND COMPLEX, THE KADUGANNAWA COMPLEX (GREEN), AND THE VIJAYAN COMPLEX AS WELL AS THE THREE SEDIMENTARY BASINS: THE CAUVERY BASIN, THE MANNAR BASIN, AND THE SOUTHERN BASIN (LANKA BASIN) [29]. 7 Ass ssm nt of Offshor Wind Ar s 52 FIGURE 7.4: FAULT LINES INTERPRETED BASED ON SEISMIC EXPLORATION SURVEYS [30] [31]. 53 Offshor Wind Ro dm p for Sri L nk 7.1.4 S ismicit Sri L nk is consid r d n s ismic r ion loc t d w ll w from m jor pl t t ctonic bound ri s. Th risk of n rthqu k h rd is cl ssifi d s v r low, m nin th t th r is l ss th n two p rc nt risk of pot nti ll d m in rthqu k in th countr within th n xt 50 rs. N v rth l ss, consid r bl numb r of sm ll to m dium m nitud intr -pl t s ismic v nts h s b n r cord d in nd sp ci ll round Sri L nk . Most of th s v nts w r micro v nts which m b c us d du to loc l t ctonics or hum n ctivit [30, 32]. How v r, conv rsion of historic r cords indic t s th t rthqu k s with m nitud bov fiv h v occurr d t Trincom l nd Colombo in 1882 nd 1615 r sp ctiv l (Fi ur 7.5) [30]. Furth rmor , l r r of diffus s ismicit loc t d south-south st of Sri L nk (north rn p rt of th Nin t st Rid ), could b domin nt sourc of stron sh llow intr pl t rthqu k s, nd could r nd r dir ct thr ts of strikin l r -m nitud v nts in clos proximit to th countr [31]. FIGURE 7.5: HISTORICAL EARTHQUAKES FROM 1615 TO 2004 [30]. 7 Ass ssm nt of Offshor Wind Ar s 54 D spit th low to mod r t risk for rthqu k s, th risk for tsun mi h rd is cl ssifi d s m dium, m nin th t th r is mor th n t n p rc nt risk of pot nti ll d m in tsun mi occurrin within th n xt 50 rs. B s d on this inform tion, th imp ct of tsun mi should b consid r d in diff r nt ph s s of pot nti l offshor proj cts for n ctiviti s loc t d n r th co st. Mor ov r, it sh ll b not d th t low mplitud tsun mi w v s (l n th ~ 100km, h i ht < 1 m) h v b n ssoci t d with si nific ntl mor scour th n short r solit r w v s [33]. 7.1.5 Findin s Th ss ssm nt shows th t in n r l, th r r no m jor s b d obst cl s or ch ll n s for construction nd op r tion of offshor wind f rms. Th r is si nific nt r with w t r d pth b low 50m, which will b suit bl for fix d bottom WTGs. Furth r, th r is l r r with w t r d pths of 50-500m, which is th limit curr ntl consid r d for flo tin found tions. Fin ll , if lookin furth r into th futur nd possibl r n of w t r d pths up to 1,000m for flo tin found tions, th pot nti l for offshor wind loc tions will xp nd v n furth r. E rthqu k s r not consid r d m jor conc rn. How v r, d v lopm nt of sit s clos to shor must t k into consid r tion tsun mi incid nts nd sp ci ll th pot nti l scour r l t d to low mplitud tsun mi w v s. 7.2 Wind R sourc 7.2.1 Wind R sourc Th wind r sourc in diff r nt r s in Sri L nk n w t rs h s b n v lu t d to id ntif nd m p th pot nti l for offshor wind d v lopm nt in Sri L nk . For offshor sit s, th r r no loc l sp d-ups from th t rr in, nd thus for this scr nin x rcis , it is consid r d suffici nt to us m sosc l d t s n input. Th Glob l Wind Atl s (GWA) is n ppropri t m sosc l d t s t th t c n b us d for such scr nin x rcis nd w s us d s b sis for th n l sis in this ro dm p. Curr ntl , 7m/s is consid r d th low st f sibl v r wind sp d for conomic ll vi bl offshor proj cts. As c n b s n in Fi ur 7.7, Sri L nk h s mod r t wind sp ds which r r l tiv l v nl distribut d round two m in r s. North of Putt l m th r is sm ll pock t of 9-9.5m/s wind, which d cr s s ntl nd consist ntl to th st nd w st. Simil rl , th r is pock t of >9.5m/s sp ds st of M t r , which d cr s s ntl in conc ntric p tt rn. In ddition to th s r s, th r is v r l r r in th B of B n l with 7-7.5m/s. Fin ll , it must b not d th t Sri L nk is pron to hi h-wind incid nts (tropic l c clon s). Fi ur 7.6 pr s nts th storm incid nt nd p th b s d on up-to-d t d t coll ct d b NOAA from 1841 to 2021. Th storms c t ori s r cl ssifi d ccordin to S ffir Simpson hurric n wind sc l 13 s show n in T bl 7.1. Th corr spondin wind sp ds r for on -minut m ximum sust in d winds. 13 H. S. S ffir, “Hurric n Wind nd Storm Sur ” Th Milit r En in r, Vol. 423, 1973, pp.4-5. 55 Offshor Wind Ro dm p for Sri L nk TABLE 7.1: SAFFIR-SIMPSON HURRICANE WIND SCALE. S ffir—Simpson Sc l 14 C t or Wind Sp ds [m/s] Fiv ≥ 70m/s Four 58–70m/s Thr 50–58m/s Two 43–49m/s On 33–42m/s As obs rv d in Fi ur 7.6, most of th storm c t ori s in Sri L nk nd vicinit r tropic l d pr ssions (up to 17m/s) nd tropic l storms (up to 32.5m/s), r sp ctiv l blu nd r n color. How v r, th r r lso c t or on nd two storms, which corr sponds to wind sp ds b tw n 33-49m/s. FIGURE 7.6: STORM INCIDENTS AROUND SRI LANKA FROM YEARS 1841-2020. Sourc : US N tion l Oc n nd Atmosph ric Administr tion (NOAA). 14 https://www.nhc.no . ov/ boutsshws.php 7 Ass ssm nt of Offshor Wind Ar s 56 7.2.2 WTG T p Most offshor WTGs curr ntl on th m rk t r d si n d for hi h v r wind sp ds of up to 10m/s nd, whil t chnic ll suit bl for l ss n r tic sit s, th r not optimi d for mod r t (up to 8.5m/s) or low (up to 7.5m/s) wind sp ds. As th offshor wind s ctor m tur s, nd s th m dium-to-low wind sp d sit s b com incr sin l vi bl to d v lop, OEMs r xp ct d to d v lop low r wind sp d WTG t p s. In turn, with this m rk t-driv n d v lopm nt, d v lopm nt of th s WTGs will improv LCOE of proj cts. FIGURE 7.7: AREAS WITH MEAN WIND SPEED HIGHER THAN 7.0M/S AT 150M BASED ON GLOBAL WIND ATLAS15 [19]. Sourc d t : Glob l Wind Atl s Giv n th ov r ll wind r sourc in Sri L nk , n stim tion of n r outputs h s b n b s d on WTGs with r l tiv l l r r rotor di m t rs nd low r r t d pow r, r sultin in low r pow r d nsit (th pow r divid d b th sw pt r of th WTG) which is n r ll f vor bl for low r wind r sourc s. This is b s d on th curr nt v il bl inform tion on WTG t chnolo (such s pow r curv s) suit bl for diff r nt wind r im s. How v r, th possibilit for hi h-wind incid nts or tropic l c clon s must lso b t k n into consid r tion wh n s l ctin sp cific WTG for proj ct in Sri L nk . It is th r for r comm nd d to ppl sit sp cific pprov l (i. ., c rtific tion of iv n WTG for sp cific sit nd its r l t d conditions). It is xp ct d th t th O&M of th wind f rms consid r th incid nc of storms nd th limits of th WTGs, nd d t il d sit ss ssm nt is r comm nd d to v lu t sit conditions nd xtr m s for offshor wind d v lopm nt. 15 D t obt in d from th Glob l Wind Atl s 3.0, fr , w b-b s d pplic tion d v lop d, own d, nd op r t d b th T chnic l Univ rsit of D nm rk (DTU). Th Glob l Wind Atl s 3.0 w s r l s d in p rtn rship with th World B nk Group, utili in d t provid d b Vort x, usin fundin provid d b th En r S ctor M n m nt Assist nc Pro r m (ESMAP). For ddition l inform tion: https:// lob lwind tl s.info 57 Offshor Wind Ro dm p for Sri L nk 7.3 TECHNICAL, ENVIRONMENTAL, AND SOCIAL CONSTRAINTS Offshor wind c n b m jor l m nt in ddr ssin th ch ll n s of clim t ch n nd c n pot nti ll cr t both conomic nd nvironm nt l b n fits for n r tions to com . How v r, multipl us of oc n r sourc s b m n st k hold rs r quir s c r ful consid r tion nd coordin tion. This s ction discuss s th t chnic l constr ints, nd nvironm nt l nd soci l s nsitiviti s th t m influ nc th futur d v lopm nt of Sri L nk ’s offshor wind m rk t. Th n l sis includ s hi h- l v l ss ssm nt nd m ppin of pot nti l nvironm nt l, soci l, nd t chnic l constr ints in r l tion to offshor wind d v lopm nt in Sri L nk . Th ss ssm nt includ s r comm nd tions on how to incorpor t nd pl n for nvironm nt l nd soci l constr ints. It sh ll b not d th t WBG nd IFC p rform nc st nd rds should b us d s th uidin principl s for ss ssm nt of nvironm nt l nd soci l constr ints, sp cific ll s th s forms th b sis for int rn tion l fin ncin support. 7.3.1 M thod Th constr int m ppin h s b n conduct d throu h r vi w of sci ntific lit r tur nd xistin d t s ts, s w ll s xp ri nc from st blish d offshor wind proj cts nd m rk ts. As f r s possibl th nvironm nt l, soci l, nd t chnic l constr ints h v b n m pp d sp ti ll . A stud on Sri L nk ’s offshor nd co st l biodiv rsit w s und rt k n b th Biodiv rsit Consult nc nd this is provid d in App ndix A. This stud id ntifi s pot nti l biodiv rsit s nsitiviti s which could b dv rs l imp ct d b offshor wind d v lopm nt. Th hi h s nsitivit of som r s m ns th t it is hi hl unlik l th t offshor wind proj cts could b d v lop d to m t ood int rn tion l industr pr ctic s (GIIP) or int rn tion l l nd rs’ E&S r quir m nts — th r for , th s on s h v b n xclud d from furth r consid r tion. Oth r r s h v hi h E&S s nsitiviti s, but it m b possibl to sust in bl d v lop proj cts in th s r s, how v r th r strictions h v b n not d. Th s two cl ssific tions of on s r d fin d s: ■ Exclusion on s compris d of r s of th hi h st nvironm nt l nd soci l s nsitiviti s nd r consid r d s “no- o” r s to xclud from offshor wind sit s l ction. ■ R striction on s r hi h-risk r s r quirin furth r ss ssm nt of nvironm nt l nd soci l risks throu h m rin sp ti l pl nnin (MSP), sit s l ction, nd/or nvironm nt l nd soci l imp ct ss ssm nt (ESIA). Som str tch s of Sri L nk ’s co st h v f w r constr ints nd includ th r s b tw n J ffn nd Trincom l , s w ll s b tw n Putt l m nd Colombo. Althou h th s r s h v f w r xclusion nd r striction on s, th m cont in s nsitiviti s th t h v not b n id ntifi d in this initi l ss ssm nt. G th rin st k hold r input should b n on oin proc ss, p rticul rl for th prot ction of nvironm nt l r sourc s nd soci l s nsitiviti s. Multipl st k hold rs will includ nvironm nt l roups, non- ov rnm nt l or ni tions, busin ss int r sts, offshor wind industr r pr s nt tiv s, nd loc l communiti s. 7 Ass ssm nt of Offshor Wind Ar s 58 7.3.2 R sults L ll Prot ct d Ar s (LPAs) nd Int rn tion ll R co ni d Ar s (IRAs) L ll Prot ct d Ar s (LPAs) nd Int rn tion ll R co nis d Ar s (IRAs) r pr s nt hi h-v lu r s d si n t d for v rious biodiv rsit cons rv tion obj ctiv s, nd som should b xclud d from consid r tion for offshor wind d v lopm nt b c us of this. Th LPA s st m in Sri L nk is li n d with th Int rn tion l Union for th Cons rv tion of N tur m n m nt c t ori s nd includ N tur R s rv s, N tion l P rks, nd S nctu ri s. Th IRAs includ R ms r sit s, K Biodiv rsit Ar s (KBAs) includin Import nt Bird Ar s (IBAs), Ecolo ic ll or Biolo ic ll Si nific nt Ar s (EBSAs), nd Import nt M rin M mm l Ar s (IMMAs). Th Bund l Biosph r R s rv is Sri L nk ’s onl co st l UNESCO-MAB Biosph r R s rv nd is loc t d lon th south co st, round H mb ntot . This is n r of hi h biodiv rsit v lu , includin import nt w tl nd h bit t. This r is includ d s n xclusion on . Th d si n t d sit s with m rin compon nts mor lik l to b imp ct d b offshor wind proj cts r M rin N tion l P rks, N tur R s rv s, S nctu ri s, nd KBAs which includ Import nt Bird Ar s (IBAs) nd R ms r sit s. It is r comm nd d th t th s r s, shown in Fi ur 7.8 r xclud d from offshor wind d v lopm nt nd r thus includ d in th xclusion on l r. FIGURE 7.8: PROTECTED AREAS (PAS) IN SRI LANKA WITH MARINE COMPONENTS. Sourc : S App ndix A 59 Offshor Wind Ro dm p for Sri L nk EBSAs nd IMMAs m b f sibl for d v lopm nt if th r c r full m n d nd d v lopm nt ctiviti s r coordin t d to void k s nsitiv p riods for biodiv rsit . Th s sit s r th r for includ d in th r striction on l r nd shown in Fi ur 7.9. Options for Sri L nk includ id ntif in thos r s with pot nti l for multi-us for offshor wind f rms nd thos th t r incomp tibl . Th b st option is to void offshor wind d v lopm nt in d si n t d sit s, follow d b t chnic l options for miti tin pot nti l imp cts. This ro dm p shows th t Sri L nk onl r quir s fr ction of th offshor r to m t th hi h rowth sc n rio — v n t kin into ccount r strictions. FIGURE 7.9: INTERNATIONALLY RECOGNISED AREAS (IRA) IN SRI LANKA WITH MARINE COMPONENTS. Sourc : S App ndix A 7 Ass ssm nt of Offshor Wind Ar s 60 7.3.3 Thr t n d M rin Sp ci s Thr t n d nd r n -r strict d sp ci s r th focus of crit ri on nd two for th d t rmin tion of critic l h bit t, s d fin d b IFC P rform nc St nd rd 6 nd th r for r pr s nt priorit biodiv rsit v lu s. Som thr t n d nd r n -r strict d m rin sp ci s in Sri L nk r s nsitiv to surv nd construction ctiviti s. Th s sp ci s r in n r l thos th t r p rticul rl s nsitiv to und rw t r nois , vibr tion, or smoth rin or loss of s b d h bit t. D v lop rs should consid r th lik l pr s nc of s turtl s, m rin m mm ls, thr t n d fish sp ci s, nd sh rks. Som nd n r d nd critic ll nd n r d sp ci s, such s fiv sp ci s of s turtl s, fish, sh rks, nd r s r found in Sri L nk . In ddition, Sri L nk supports hi h div rsit of m rin m mm ls, with 27 r cord d sp ci s. Of th s , six r ss ss d s lob ll thr t n d sp ci s includin th Blu Wh l (B l nopt r musculus) nd du on (Du on du on ) which h v b n r cord d in th Gulf of M nn r, th w t rs b tw n G ll nd M nn r, nd in Trincom l C n on (north st co st of Sri L nk ). Offshor wind d v lopm nt pos s s v r l risks to c t c ns, du on s, nd s turtl popul tions, of which disturb nc of n stin b ch s for s turtl s, d struction of s r ss b ds (for in rounds for du on s) nd, und rw t r nois r possibl of most conc rn. Th r r fiv thr t n d sp ci s of m rin turtl s with lob l r n s th t ov rl p with Sri L nk EEZ. Althou h turtl n stin b ch s r distribut d cross th ntir co stlin , xc pt in Putt l m nd G mp h districts, th prim r n stin b ch s c n b found on th w st, south, nd th south st rn co sts. G ll nd H mb ntot districts in p rticul r h rbour th most us d n stin b ch s. M rin turtl n stin b ch s f tur in th d si n tions of LPAs nd EBSAs. How v r, th r r lso m n import nt n stin sit s lon th w st co st which r not cov r d b th s d si n tions. It is r comm nd d th t n stin b ch s for m rin turtl s, plus 5km buff r r xclud d for offshor wind d v lopm nt. Th s r s r includ d in th xclusion on l r (Fi ur 7.10). FIGURE 7.10: NESTING BEACHES FOR TURTLES WITH 5KM BUFFER ZONE. Sourc : S App ndix A 61 Offshor Wind Ro dm p for Sri L nk 7.3.4 Thr t n d N tur l H bit ts Sri L nk h s no offici l list of thr t n d n tur l h bit ts. How v r, s v r l cos st ms r hi hl import nt both colo ic ll nd conomic ll for th countr . This includ s p rl muss l b ds, s r ss b ds, m n rov s, cor l r fs, nd co st l s nd dun s. Th mod ll d distribution of s r ss b ds, m n rov s, nd cor l r fs r includ d within th xclusion on l r. Th most import nt r s for p rl b ds f ll within th Gulf of M nn r EBSA, which is th r for includ d in th r striction on . Th m jorit of import nt h bit ts r clust r d in th int rtid l on within prot ct d r s in t th northw st rn co st from Putt l m L oon in th Gulf of M nn r to th north rn nd of P lk B . Cor l r f hotspots includ J fn P ninsul , th Gulf of M nn r, N ombo, Hikk duw , G ll , M t r , B ss s, P ss kud h, nd Trincom l . Options for Sri L nk includ c r ful m n m nt of th wind f rms nd r ducin ph sic l d m of thr t n d h bit ts lik cor l r fs or s r ss b ds b optimi in th positions of th WTGs, consid r tions of flo tin found tions, r stor tion, nd m n m nt of comp ns tor biodiv rsit r fu s. FIGURE 7.11: DISTRIBUTION OF THREATENED MARINE HABITATS (CORAL REEFS, SEAGRASS, AND MANGROVES) IN SRI LANKA. Sourc : S App ndix A 7 Ass ssm nt of Offshor Wind Ar s 62 7.3.5 Mi r tor Birds nd B ts Birds r includ d within th d si n tions of R ms r sit s nd Import nt Bird Ar s (IBAs). Usu ll , it is r comm nd d th t ll IBAs nd R ms r sit s r tr t d s xclusion on s for offshor wind d v lopm nt. Sri L nk , how v r, h s no m rin r s IBAs, but th r r s v r l co st l IBAs th t includ m rin bird sp ci s in th ir d si n tion. Th s co st l IBAs h v b n includ d s xclusion on s. Th d si n t d bird r s r lik l to includ most s bird n stin coloni s nd non-br din r tions of int rn tion l import nc . Amon th s is S nd Isl nd III w st of M nn r Isl nd. This is th onl known br din colon in Sri L nk for m n s birds nd h s th r for b n includ d in th xclusion on . How v r, th r r ps in r l tion to fl w s nd mi r tor bottl n cks. Th r t st thr t to mi r tor s birds from offshor wind d v lopm nt is collision with WTGs. Th w st co st, from th Gulf of M nn r southw rds, is p rticul rl import nt for mi r tor s birds with up to 400,000 birds fl in southw rds durin d tim . Non-m rin mi r tor birds nt r Sri L nk throu h s v r l ntr points. Ad m’s Brid provid s on of th import nt ntr points intro Sri L nk for thous nds of mi r tor birds rrivin throu h th E st Asi n-Austr l si n fl w . Ad m’s Brid M rin N tion l P rk is includ d in th xclusion on . AVISTEP, d v lop d b Birdlif Int rn tion l, is n vi n s nsitivit m ppin tool for n r pl nnin [34]. It provid s us ful ss ssm nt of bird s nsitivit for diff r nt t p s of r n w bl n r proj cts, includin offshor wind. Althou h th tool do s not t includ n ss ssm nt of Sri L nk , it do s ss ss Indi nd it scor s th Gulf of M nn r s ‘V r Hi h’ s nsitivit . 7.3.6 Fish Fish r id ntifi d s import nt f tur s in two of th thr Sri L nk n EBSAs, which r includ d in th r striction on l r. Th South rn Co st l nd Offshor W t rs b tw n G ll nd Y l N tion l P rk r d si n t d for import nt fish sp ci s, nd th Trincom l C n on nd Associ t d Ecos st ms for wh l sh rk. No ddition l di iti d sp ti l d t h s b n id ntifi d in r l tion to fish. 7.3.7 B nthic Inv rt br t s Sri L nk h s tot l of 65 thr t n d m rin inv rt br t s, comprisin i ht sp ci s of s cucumb r (Holothuroid ), 56 sp ci s of ston cor l (Scl r ctini ), nd on Octocor l (H liopor c ). All of th s sp ci s r cov r d b th r s m pp d s cor l r fs, which r includ d in th xclusion on . 7.3.8 Artis n l nd Comm rci l Fishin Th fish ri s s ctor pl s k rol for Sri L nk ’s conom nd provid s nim l prot in for th popul tion. Th m rin fish ri s of Sri L nk consist of two m in s ctors, n m l co st l fish ri s nd offshor /d p s fish ri s. Th Sri L nk n fishin fl t is prim ril compos d of sm ll (<12 m) v ss ls nd pproxim t l on third of this is non-motori d. In 2017 th production of comm rci l m rin fish products w s 439,370 m tric tons. Of th s , 17 p rc nt w s l nd d in th north rn provid nc (J ffn , Putt l m) nd 21 p rc nt w s l nd d in th South rn provid nc (T n ll , M t r ). 63 Offshor Wind Ro dm p for Sri L nk D p ndin on th t p of fishin ctivit , som fishin t chniqu s m b mor ff ct d th n oth rs. Tow d, mobil bottom r t chniqu s r mor lik l to b constr in d b th pr s nc of wind f rm infr structur , comp r d to mid-w t r fishin t chniqu s. Fish ri s r n r ll most int ns in th co st l r s wh r th c n b constr int to offshor wind d v lopm nt. Options for Sri L nk includ consult tion with fish rs nd sit s l ction to void int rf r nc with th most import nt rtis n l nd comm rci l fishin rounds nd th ir biolo ic ll link d h bit ts (sp wnin , nurs r r s), us of comp ns tion sch m s, nd r d multi-us r s (for x mpl , llow tr nsit, us of c rt in r). 7.3.9 Tourism nd Cultur l H rit Oc n nd co st l tourism r on of th f st st rowin r s within cont mpor r tourism in Sri L nk . Whil tourism d v lopm nt h s b n sp ti ll focus d on th b ch for much of th p st, th oc n nd th m rin nvironm nt s whol h s b com on of th n w fronti rs nd f st st rowin r s of th world tourism industr . With this in mind, th Sri L nk n Tourism D v lopm nt Authorit (SLTDA) h s b n promotin co st l tourism in m n co st l r s round Sri L nk , with sp ci l mph sis on pl c s such s K lpiti (northw st), M nn r (north), Trincom l (north st), nd Aru m B (south st). This, in turn, is popul ri in m rin tourism, such s fishin , scub divin , windsurfin , chtin , kit surfin , surfin , nd wh l w tchin t r pid r t . M n int rn tion l v nts r host d in Sri L nk , sp ci ll r l t d to kit surfin , windsurfin , nd surfin . Th hot ls nd l r r touristic r s r m inl loc t d round Colombo, North of Colombo up tow rds Putt l m, nd South of Colombo tow rds G ll nd M t r . It is n r ll r comm nd d th t sitin of offshor d v lopm nt is loc t d w from tourism hot spots. Flo tin offshor wind d v lopm nt m off r mor opportuniti s to b loc t d furth r from shor , w from tourism sit s. How v r, th xistin 17 wind pow r pl nts in th countr h v not h mp r d n co st l tourism r l t d ctiviti s in Sri L nk so f r. In f ct, wind f rms m b com tourist ttr ctions on th ir own, nd pinn cl s in sust in bl nd r n w bl n r in th countr . An x mpl of this is th B n ui B wind f rm in th Philippin s [35]. Cultur l h rit h s not b n sp cific ll m pp d for this ro dm p x rcis . Th r r no offshor sit s includ d in th UNESCO world h rit list, how v r, obviousl n offshor cultur l h rit must b t k n into consid r tion wh n pl nnin n offshor wind f rm. 7.3.10 L ndsc p nd S sc p In Sri L nk th r is no r ul tion on how f r from th co st wind f rm should b . Sinc th visu l xp ri nc of windf rm is hi hl cultur ll d p nd nt, buff r on for pl cin n r shor wind is not d fin d in this ro dm p. It should how v r b c r full consid r d durin th pl nnin proc ss. 7 Ass ssm nt of Offshor Wind Ar s 64 7.3.11 Milit r Ex rcis Ar s D t on milit r ctiviti s such s m n uv rin x rcis s, firin pr ctic , low-fl in tr inin , or t stin rounds for mmunition r includ d in th Sri L nk Air Forc (SLAF) on s, s Fi ur 7.12. All SLAF on s should b consid r d for offshor wind d v lopm nt. How v r, som t mpor l ctiviti s such s l in of c bl s nd tr nsport of m t ri l is in m n c s s cc pt d b th milit r (followin consult tion) nd thus cc pt d in th SLAF on s. All SLAF on s r includ d in th xclusion on l r. 7.3.12 Ships nd N vi tion Rout s Th shippin d nsit ccordin to Autom tic Id ntific tion S st m (AIS) is hi hl conc ntr t d outsid Colombo nd Hikk duw /G ll in th southw st rn w t rs of Sri L nk (Fi ur 7.12). In contr st, v r f w v ss ls r tr ck d in th north rn w t rs of Sri L nk , includin M nn r B . Th v ss ls tr c d b AIS r prim ril t nk rs, whil sm ll r bo ts r not r ist r d with AIS t chnolo . Shippin is so wid spr d th t it should lw s b consid r d wh n v lu tin th construction of n w wind f rm r or n oth r hum n ctivit offshor . Furth rmor , shippin l n s must b consid r d s w ll in r l tion to th wind f rm op r tion, du to th incr s d risk d m to wind 2 f rm infr structur . Ar s wh r th shippin d nsit xc ds 1,500,000 bo ts/km (ov r th p riod 2015-2020) r shown in Fi ur 7.12. Th r r no offici ll d si n t d shippin rout s in Sri L nk n w t rs nd this fi ur shows th t th r is si nific nt mount of tr ffic spr d ov r l r r . Fi ur 7.12 lso shows th t th r is w ll-d fin d, inform l shippin rout to th south of Sri L nk , st rtin sli htl w st of M t r nd continuin in n st rl dir ction. Du to th xtr m l hi h d nsit of shippin tr ffic, this h s b n d si n t d s r striction on . 7.3.13 Subs C bl s Th r r t n known subm rin c bl s in Sri L nk for communic tions (Fi ur 7.12). Th s r ll loc t d n r Colombo nd Hikk duw . Offshor wind ctiviti s such s l in of c bl s nd tr nsport of m t ri l r usu ll possibl in th vicinit of xistin subs c bl s. Subs c bl s r th r for not includ d in th r striction on l r but should b f ctor d into th pl nnin of offshor wind f rms. 7.3.14 Avi tion Offshor wind f rms m int rf r with vi tion r d r throu h sh dowin or r fl ctin r d r. In ddition, offshor WTGs m block or d r d th si n l for t l communic tion nd d t tr nsmission. In this cont xt, r s round ir tr ffic control c nt rs (r d rs), irports, rodrom s, nd ir tr ffic on s c n pos constr ints for d v lop rs. S v r l vi tion r l t d sit s xist lon th co st of Sri L nk which could b constr int for n r shor wind d v lopm nt (Fi ur 7.12). Th Sri L nk Air Forc (SLAF) r ul t s civil vi tion in Sri L nk nd should b consult d in th rl d v lopm nt st of sp cific offshor wind f rm. F w SLAF on s xist in Sri L nk nd should b tr t d s xclusion on s. Furth rmor , s v r l known IKA irports r loc t d lon th co st. It is r comm nd d th t th s sit s r lso tr t d s xclusion on s nd 15km buff r round th s irports h s b n includ d s pr c ution; how v r, consult tions nd r d r studi s will b r quir d to xplor this constr int furth r. 65 Offshor Wind Ro dm p for Sri L nk 7.3.15 Oil nd G s Op r tions Structur s r l t d to oil nd s infr structur pos h rd constr int for wind f rms nd r surround d b r striction on s. Th r r s v r l xistin oil nd s w lls in P lk B nd th north rn Gulf of M nn r (Fi ur 7.12). Th s r includ d in th xclusion on l r. In 2019, Sri L nk h ld n int rn tion l biddin round to xplor nd produc oil nd n tur l s in th M nn r nd C uv r B sins. Th C uv r B sins blocks r not includ d in th R striction or xclusion on l rs, but r strictions m com within th two block r s in th futur . FIGURE 7.12: SOCIAL AND TECHNICAL CONSTRAINTS FOR OFFSHORE DEVELOPMENT IN SRI LANKA. 7 Ass ssm nt of Offshor Wind Ar s 66 7.3.15 Conclusions Th m ppin of nvironm nt l, soci l, nd t chnic l constr ints provid s pr limin r hi h-l v l risk ss ssm nt of th v lu s nd ch r ct ristics th t r lik l to b critic l wh n s l ctin on or mor sit s for offshor wind n r in Sri L nk . FIGURE 7.13: POTENTIAL AREAS FOR FLOATING AND FIXED FOUNDATION OFFSHORE WIND. NOTE, EXCLUSION ZONES ARE NOT SHOWN BUT HAVE BEEN REMOVED FROM CONSIDERATION. Fi ur 7.13 provid s n ov rvi w of th xclusion on s nd th r striction on s s r comm nd d b s d on th constr int m ppin . L r p rts of th scr n d r s includ xclusion on s wh r offshor wind f rms c nnot b r comm nd d. Th m jor constr ints includ conflict with l ll prot ct d r s, n stin r s for s turtl s, pr s nc of thr t n d h bit ts (cor l r fs, s r ss b ds, nd m n rov s), for in r s for thr t n d m rin m mm ls (du on s), m jor bird mi r tion rout s, nd r stin r s for birds. In th north st rn r nd in th w t rs b tw n Putt l m nd Colombo, th r r r l tiv l l r r s consid r d low r-risk r s. 67 Offshor Wind Ro dm p for Sri L nk Som of th scr n d r within M nn r B nd P lk B in th north rn p rt of th countr is m inl consid r d hi h-risk r du to nvironm nt l constr ints, which includ th pr s nc of m jor bird mi r tions rout s, r stin nd br din r s for birds, nd thr t n d h bit ts (s r ss b ds, cor ls, nd m n rov s) th t r lso h bit ts for thr t n d sp ci s of s turtl s nd du on s. For th s m r son, l r co st l r s from J ffn to Putt l m r r co ni d s l ll prot ct d r s. In th south rn nd south st rn w t rs, th scr n d r for offshor wind d v lopm nt is lik wis hi h-risk r . Most of th n rshor , co st l r s r r comm nd d to b xclud d for d v lopm nt du to th pr s nc of turtl n stin b ch s nd l ll prot ct d r s. In th r striction on s, offshor wind f rms m b f sibl if th construction nd op r tion of th windf rm is c r full m n d nd miti tin m sur s r int r t d, . ., b voidin k s nsitiv p riods for thr t n d sp ci s or b r ducin ph sic l d m of thr t n d h bit ts lik cor l r fs or s r ss b ds b optimi in th positions of th WTGs. Th r striction on s r c t ori d b v rious issu s nd miti tion m sur s will th r for b diff r nt from on sit to noth r. This should b inv sti t d furth r durin th m rin sp ti l pl nnin , st k hold r n m nt, sit s l ction, nd ESIA proc ss s. It should b not d th t d v lopm nt within th r striction on s is lik l to h v m jor imp ct on nvironm nt l, soci l, nd t chnic l sp cts, nd furth r inv sti tions r n d d to cl rif th imp cts. Ov r ll conclusions on th r sults r summ ris d in s ction 3.1. 68 8 REGULATORY FRAMEWORK Th r ul tor fr m work surroundin offshor wind is critic l to th succ ss of th industr in n countr . This ch pt r provid s b sic n l sis of th Sri L nk n r ul tion r l v nt for th d v lopm nt nd op r tion of OWF proj cts in vi w of int rn tion l r ul tor xp ri nc s. Th r ul tor fr m work sh ll provid th n d d support in llowin for sound proj ct d v lopm nt, cc ss, nd control ov r sit s, nd to nsur r son bl xclusivit for d v lop rs to obt in r son bl r t of r turn of th inv stm nt m d . It must lso sust in nd orch str t sound proc ss involv d in t l st thr dir ctions: ■ First, th s ttin out of pl nnin tools nd proc ss, such s d v lopm nt nd ctiv m n m nt of outcom r l t d h r of to f sibilit studi s nd ss ssm nts of risks, nvironm nt l nd soci l imp ct, nd sit conditions, tc. R sults from this must b t k n dili ntl into ccount b sound risk m n m nt nd miti tion pl nnin . ■ S cond, to nsur sound l v l of public consult tion nd p rticip tion in ll pl nnin nd proj ct st s. ■ Third, to nsur n ffici nt coordin t d involv m nt of ll st k hold rs, sp ci ll mon st ll r l v nt public uthoriti s n d d for cons nt nd p rmittin provision t n tion l, r ion l, nd loc l ov rnm nt l v ls. As xplor d b this ro dm p, for offshor wind proj cts, th issu of loc tion nd sit m n m nt is l ss r ul t d comp r d to l nd-b s d f ciliti s. For offshor proj cts, m ritim sp ti l pl nnin is k nd r th r oft n n innov tion comp r d to th mor tr dition l pl nnin on l nd. Not onl is it n innov tion in t rms of th l l fr m work, but lso in t rms of th ctu l impl m nt tion nd n d for w ll-coordin t d nd w ll-int r t d pl nnin solutions nd outcom s. Th offshor loc tion m lso brin bout n d d tr nsn tion l coordin tion with n i hbourin st t s nd n d d li nm nt with shippin nd oth r ctiviti s in int rn tion l w t rs. Sri L nk is d ns l popul t d n tion th t pr s nts ch ll n s r l t d to l nd us . Th sc rc l nd r sourc s m provid l itim c nd support for offshor wind f rm solutions. How v r, offshor wind proj cts will r quir n w st k hold r n m nts in ord r to obt in cons nt nd l itim c of lon -t rm offshor wind xplor tion. Fishin nd shippin communiti s, m rin nvironm nt, loc l popul tion, n tion l s curit , oil nd s, nd tr nsn tion l int r sts m n d to b includ d s n w pl rs. This m pr s nt ddition l ch ll n s to th xistin pl nnin nd p rmittin s st m nd imp d th tim l impl m nt tion of n w offshor wind proj cts. 69 Furth rmor , th sound d v lopm nt nd m n m nt of offshor loc tions m b ch ll n d b milit r nd n tion l s curit int r sts s m nif st d b si nific nt s cr c nd s curit m sur s in pl c . B s d on int rn tion l xp ri nc s, this m r quir furth r fforts to nsur ood pl nnin nd coordin tion mon st comp t nt uthoriti s (civil nd milit r ) in ord r to provid th n d d cc ss to sit nd suppl lin s, nd to nsur prop r pl nnin , sh rin of d t nd inform tion, s w ll s public consult tion. It is not th int ntion of this ro dm p to provid n ind p nd nt l l n l sis of th s sp cts but r th r to ss ss th Sri L nk n l l nd institution l fr m work b s d on consult tions with r l v nt st k hold rs combin d with d sk studi s nd n l its suit bilit to d liv r offshor wind. 8.1 OVERVIEW OF THE REGULATORY FRAMEWORK Sri L nk h s m n rs of xp ri nc in t nd rin sm ll r sc l r n w bl n r proj cts includin onshor wind nd h dro pow r proj cts, nd now lso in sol r PV. Th proj cts r b s d on ind p nd nt pow r produc rs (IPP) nd public priv t p rtn rship (PPP) r im s nd pow r purch s r m nts (PPAs) b s d on f d-in-t riffs (FiT)16. All l ctricit n r t d b lic ns d produc rs is purch s d b th C lon El ctricit Bo rd (CEB), nd t riffs r pprov d b th Public Utiliti s Commission of Sri L nk (PUCSL). Curr ntl , th r r no offshor wind proj cts in Sri L nk . Furth rmor , th r r no p rticul r offshor wind r ul tions in pl c , lthou h th import nc of nh ncin s lf-r li nc nd th continuous d v lopm nt of th r n w bl n r s ctor in Sri L nk is mph si d s p rt of th T n Pill rs of th N tion l En r Polic (2019) — pill r 7 with r rd to r n w bl n r [36, 37]. Cons qu ntl , n possibl OWF proj ct l unch d tod will n d to b s its lf on th xistin nd non-offshor wind-sp cific r ul tor fr m work. St k hold rs h v xpr ss d som b li f in th bilit of th curr nt r ul tor s st m to support th rl d v lopm nt of OWF proj cts lthou h th st k hold rs lso r co ni th n d for futur r ul tor offshor wind r form to sust in th d v lopm nt of futur l r -sc l offshor wind m rk t. Such rl offshor wind xp ri nc s b s d on th xistin r ul tor fr m work will llow for som l rnin , us ful for pot nti l offshor wind r ul tor r form in th futur . How v r, s r comm nd d in r c nt int rn tion l studi s r l t d to th Sri L nk n n r s ctor, th r ul tor r form proc ss is n d d lr d now in ord r to sust in th sound d v lopm nt of offshor wind proj cts [38, 22, 23, nd 24]. Th World B nk 2017 stud obs rv d th t th curr nt polic nd r ul tor fr m work is not consist nt in n tur to full support th d v lopm nt of r n w bl n r proj cts in Sri L nk , nd r form should lso work tow rds disinc ntivi in d v lopm nt of fossil-b s d pow r n r tion pl nts [23]. This links to th ov r ll nd still v lid conclusion lr d m d in 2015 b th ADB conc rnin th futur of th r n w bl n r m rk t th t Sri L nk is still in n d of impl m ntin th r vision of th El ctricit Act in 200917. ADB continu s th t “ limin tin this prim r root of th in ffici nci s in Sri L nk ’s pow r s ctor n ds to b consid r d s th prim r r tion l for furth r r form” [24]. 16 S for inst nc , [95] for th st blishin of 60MW wind pow r pl nts on PPP build, own nd op r t contr ct b sis, nd subj ct to Int rn tion l Comp titiv Biddin (ICB) — t mpl t lso v il bl t [113]. 17 Th conclusions r still v lid s b s d on st k hold r consult tions. Th El ctricit Act h s b n m nd d in 2013 b [42], th Sri L nk El ctricit Act (Am ndm nt) nd in 2019, sp ci l committ w s cr t d to m nd th ct. 8R ul tor Fr m work 70 8.2 MAIN INSTITUTIONS AND LEGISLATION Th m in r l v nt uthoriti s r ul tin , p rmittin , nd pr p rin for r n w bl n r proj ct t nd rs r includ d in Fi ur 8-1. Th s k institutions r : ■ Ministr of Pow r & R n w bl En r (MoPE). Th Ministr und rt k s th rol of ov r ll pl nnin nd polici s nd pr p r s n r polic , sup rvis s th m in st t -own d pow r s ctor utilit CEB, th st t -own d distribution utilit L nk El ctricit Comp n , Sri L nk Sust in bl En r Authorit , nd s v r l oth r st t -own d ntiti s in th n r s ctor [22]. ■ Sust in bl En r Authorit (SEA) [39]. R ul tor rol of id ntif in nd d v lopin r n w bl n r proj cts, nd in ssistin in th d v lopm nt of r n w bl n r polici s. ■ C lon El ctricit Bo rd (CEB). Rol of promotin nd procurin r n w bl n r proj cts, nd to purch s n r on s t t riff structur s, nd to distribut pow r, s r ul t d b th C lon El ctricit Bo rd Act, 1969 [40]. ■ Public Utiliti s Commission of Sri L nk (PUCSL)18. Rol of r ul tor ov rsi ht (i. ., t riff structur s nd m thodolo ), m rk t r ul tor nd prot ction of consum r int r st. PUCSL is th multis ctor r ul tor, which is pr s ntl mpow r d to p rform th functions of t chnic l, conomic, comm rci l, nd s f t r ul tor of th l ctricit industr [22]. ■ C ntr l Environm nt l Authorit (CEA)19. Rol of nvironm nt l imp ct ss ssm nt nd nsurin nvironm nt l conditions. ■ Bo rd of Inv stm nt (BOI)20. F cilit tin priv t , includin for i n, inv stm nt. ■ L nk El ctricit Suppl Comp n (LECO) is th l r st l ctricit distribution comp n in Sri L nk . LECO is st t -own d l ctricit comp n op r tin und r th lic ns issu d und r th El ctricit Act, und r th r ul tions of th Public Utiliti s Commission nd und r th Public Ent rpris D p rtm nt uid lin s. Th comp n op r t s und r th sup rvision of th Ministr of Pow r nd En r [41]. 18 As r ul t d b th Public Utiliti s Commission of Sri L nk Act, 2002. PUCSL w s ntrust d to r ul t th n r tion, tr nsmission, distribution, suppl , nd us of l ctricit b th El ctricit Act No. 20 in 2009. 19 As r ul t d b C ntr l Environm nt l Authorit Act, 1980. 20 As r ul t d b th Bo rd of Inv stm nts of Sri L nk , 2012 (Am ndm nt). 71 Offshor Wind Ro dm p for Sri L nk FIGURE 8.1: KEY ELECTRICITY SECTOR GENERATION, TRANSMISSION, AND DISTRIBUTION PLAYERS [23]. Ministry of Power & Energy SLSEA CEB Generation CEB owned IPPs Licensees (Hydro, Thermal, RE) (Hydro, Thermal, RE) Transmission CEB (Single Buyer) Licensees Distribution CEB CEB CEB CEB CEB Licensees (Region 1) (Region 1) (Region 1) (Region 1) (Region 1) Regulator: Public Utility Commission of Sri Lanka (PUCSL) Th prim r l isl tion, in ddition to th for m ntion d institution l m nd t s, is th El ctricit Act of 2009, m nd d in 2013 [42], r ul tin th l ctricit s ctor. Th ct r ul t s th n r tion, tr nsmission, distribution, suppl nd us of l ctricit , nd th procur m nt of n w n r proj cts. Th nvironm nt l imp ct ss ssm nt (EIA), includin th public consult tion, is r ul t d b th N tion l Environm nt l Act, 2000 nd sp cific EIA R ul tions21. Th N tion l Environm nt l Act lso includ s public consult tion s p rt of th EIA proc ss [43]. Pl nnin tools r th followin : ■ Th N tion l En r Polic & Str t i s of Sri L nk of 2019 s ts th m in obj ctiv s of V ri bl R n w bl En r (VRE) proj cts. ■ Th Sri L nk En r S ctor D v lopm nt Pl n for Knowl d -b s d Econom (2015-2025) s ts out th ro dm p for Sri L nk to b n n r s lf-suffici nt n tion b 2030 [44]. ■ CEB Lon T rm G n r tion Exp nsion Pl n 2018-2037, providin inform tion on th xistin n r tion s st m, n r tion pl nnin m thodolo , s st m d m nd for c st, nd inv stm nt nd impl m nt tion pl ns for th propos d proj cts [45]. 21 For VRE pow r pl nts, s [115]. 8R ul tor Fr m work 72 8.3 PLANNING AND PERMITTING 8.3.1 P rmittin nd Procur m nt Proc ss Th r n w bl n r p rmittin nd t nd rin proc ss m pp r compl x in n tur consid rin th numb r of comp t nt uthoriti s involv d22. In ord r to miti t such compl xit , th SEA provid s coordin t d ppro ch f cilit tin n int r t d ppro ch mon st th v rious p rmittin nd comp t nt uthoriti s23. Th im is to provid w ll-pr p r d t nd r proc ss to nh nc c rt int r l t d to th proc ss its lf, th obt inin of p rmits nd PPA, nd lso r l t d to improv d risk id ntific tion llowin for b tt r risk ss ssm nt nd pr p r tion for risk m n m nt nd miti tion. Th ppro ch off r d b th SEA is not on -stop ppro ch but is mon st th int rvi w d st k hold rs found to b w lcomin improv m nt of th form r s st m. Succ ssful d v lop rs sh ll ppl for pproxim t l 20 r l v nt lic nsin nd p rmits, such s n nvironm nt l p rmit b CEA, n r tion lic nsin from th Public Utiliti s Commission of Sri L nk in compli nc with th Lon T rm G n r tion Exp nsion Pl n, nd d v lopm nt p rmit b s d on th s conditions, nd obt in pprov l of th PPA b s d on f d-in-t riffs24. Th curr nt r n w bl n r proj cts r b s d on ov r ll prior pl nnin und rt k n b th Ministr of Pow r & R n w bl En r (MoPE) nd s ssist d b th Sust in bl En r Authorit (SEA)25. N tion l pl nnin is suppl m nt d b loc l pl nnin b in r vis d v r two rs. B s d on such pl nnin , th SEA id ntifi s nd d v lops th r n w bl n r proj cts, wh r ft r ith r th CEB or th SEA — or th CEB nd th SEA jointl — initi t th procur m nt proc ss for t nd rin b s d on n tion l comp titiv biddin (NCB)26. A mix of comp titiv procur m nt rout s r mplo d. Th x ct rout pr scrib d nd th x ct d riskin profil /split b tw n public s ctor nd th priv t d v lop r v r . How v r, th curr nt t nd rin of th l r -sc l r n w bl n r proj cts — which in scop nd compl xit r lik l to r s mbl th futur OWF proj cts — r v ls hi h d r of priv t fin ncin / r qu st for inv stm nts nd risk-t kin . Th proc ss involv s pr qu lific tion follow d b comp titiv t nd rin r sultin in n w rd nd n xclusiv l s ri ht for th priv t d v lop r, who in r turn r ssi n d with th r sponsibilit to und rt k th d t il d sit studi s b s d on f sibilit studi s und rt k n b public s ctor. As s n in th c lls for propos l, th EISA m b p rt of th d v lop r’s r sponsibilit d p ndin on th p rticul r t nd r d si n. How v r, for som c lls th EISA m lso b p rt of th studi s und rt k n b th public s ctor to d risk th proj ct. As d scrib d bov , th d v lop r is lso r quir d to obt in th p rmittin ( ssist d b th SEA s d scrib d bov ), which lso includ s th nvironm nt l p rmit from th CEA, which will ddr ss ll nvironm nt l conditions. 22 Th compl x involv m nt of uthoriti s, lso b ond th m in c ntr l uthoriti s list d h r , m b illustr t d b th t nd r proc ss for th Wind Pow r G n r tion in M nn r — proj ct b s d on EPC nd PPA contr cts. In this c s , th SEA involv s th CEA for nvironm nt l pprov l. Th CEA th n n s th Co st Cons rv tion nd Co st l M n m nt D p rtm nt (CCD) to l d th proj ct for th nvironm nt l compon nt. This c lls for th involv m nt of th D p rtm nt of Wildlif , loc l uthorit Pr d shi S b , Urb n D v lopm nt Authorit , Fish ri s, Irri tion, Division l S cr t r , nd Civil Avi tion Authorit . Pr s nt tion h ld 19 F bru r 2021 b En r M n m nt Forum: Wind Pow r G n r tion in M nn r b En . K m l Ill p rum , Vic Pr sid nt Sri L nk En r M n m nt Associ tion (SLEMA), cop r t in d b COWI. 23 S for inst nc SEA c ll for xpr ssion of Int r st (EoI) for th Suppl , inst ll tion, commissionin , nd op r tion of sol r PV t stin f cilit t H mb ntot Sol r En r Pow r Pl nt, s nnounc d t th SEA procur m nt sit http://www. n r . ov.lk/ind x.php/ n/procur m nt 24 In n r l, s [116], s m nd d in [42]. For th n r tion lic nsin , s [117]. 25 For th pl nnin of futur RE proj ct, includin OWF, s th r c nt SEA R n w bl En r R sourc D v lopm nt Pl n 2021-2026 t http://www. n r . ov.lk/ im s/r n w bl - n r /r n w bl - n r -r sourc -d v lopm nt-pl n- n.pdf 26 Th t nd rs r pr s nt d t th procur m nt sit s; for SEA http://www. n r . ov.lk/ind x.php/ n/procur m nt nd for th CEB t https://c b.lk/t nd r-notic / n 73 Offshor Wind Ro dm p for Sri L nk As r ul t d b th El ctricit Procur m nt Rul s, 2016, th t nd r docum nts lso includ th pow r purch s r m nt b s d on f d-in t riffs. B for l unchin th t nd r, th PUC sh ll pprov th t riff structur s propos d nd s t b th CEB. H vin obt in d th PUC pprov l, th SEA/CEB l unch s th t nd r, which will sp cif th t riff nd p m nt structur s, nd th t rms nd conditions of th PPA. Aft r th conclusion of th t nd r proc ss, th PUC n ds to pprov th dr ft PPA nd its sp cific tions. Wh n pprov d nd wh n h vin s tisfi d ll oth r conditions nd p rmits, th d v lop r c n r qu st th n r tion lic ns lso from PUC nd th d v lopm nt p rmit. Th CEB purch s s ll l ctricit n r t d b lic ns d produc rs in Sri L nk . CEB s lls th l ctricit to consum rs or to LECO b in th onl oth r lic ns d distributor of l ctricit . 8.3.2 St k hold r P rsp ctiv s Althou h pl nnin is in pl c , it h s b n inform d durin th int rvi ws th t pl nnin in th p st h s not lw s b n optim l in t rms of l nd nd sit d t rmin tion nd pr p r tions, nd for th d lin tion mon st comp tin int r sts for l nd us . Th int rvi ws point d out th t n d for b tt r pl nnin b onin is n d d for th d v lopm nt of r n w bl n r proj cts. Also, lon -t rm pl nnin is r quir d s diff r nt int r sts t offshor loc tions m not b w ll- li n d in t rms or utili tion nd cc ss to p rticul r r s, such s b tw n oil nd s nd offshor wind proj cts. Furth r coordin tion of such offshor ctiviti s should b ddr ss d b nh nc d nd d t il d int r t d pl nnin . Th int rvi w s lso xpr ss d som conc rn r l t d to th l ck of sp cific r ul tion nd coordin t d ppro ch r l t d to th r din ss of offshor wind sit pr p r tion. This is r l t d to th ov r ll conc rn r rdin th studi s on sit conditions s loc tions r not w ll d fin d nd s inform tion nd d t on sit condition in n r l ( . ., r l t d to wind nd oc n ch r ct ristics) r not sil v il bl . Th int rvi w d st k hold rs did how v r r f r to som positiv r c nt xp ri nc s r rdin proj ct pr p r tion nd th pr p r tion of t nd r d si n nd t nd r proc ss. H r , som optimism w s sp cific ll xpr ss d r rdin th incr s in th nvironm nt l imp ct ss ssm nt nd f sibilit studi s provid d b th public s ctor. How v r, it is t to b s n wh th r this tr nd will volv with r rd to th l r OWF proj cts, s th curr nt l r sc l proj ct r v ls si nific nt risk-t kin b th priv t d v lop r. 8R ul tor Fr m work 74 8.3.3 Discussion on Pl nnin nd P rmittin It is not d th t n possibl OWF proj ct l unch d tod will n d to b s its lf on th xistin nd non-offshor wind-sp cific r ul tor fr m work. Such n ppro ch m work provid d th t th t nd r docum nts cl rl will b bl to ccommod t th p rticul riti s of d v lopin OWF proj cts. Int rn tion l xp ri nc s show th t such n ppro ch m prov difficult in providin th n d d cl rit nd f cilit tion sp ci ll r l t d to th und rt kin of studi s, pl nnin , nd p rmittin in m rk t driv n b si nific nt risk-t kin nd fin ncin b th priv t d v lop r. Inst d, th succ ssful d v lopm nt of offshor wind m rk ts in Europ is b s d on d dic t d nd w ll-d v lop d offshor wind l l r im s. Th Europ n m rk ts op r t with d t il d t nd r docum nts nd sp cific tion w ll- mb dd d within OWF l l fr m work th t provid s c rt int , r li bilit , nd st bilit for th inv stors/d v lop rs. Offshor wind pl nnin nd p rmittin lso involv s ddition l st k hold rs th t m m r nd n w proc ss s th t h v to b s t in pl c . Th loc tion of offshor wind in th northw st rn p rts of Sri L nk n w t rs m invok tr nsn tion l nvironm nt l imp ct ss ssm nt nd pl nnin to th r with Indi , d p ndin on th ctu l loc tion nd th int rn tion l l l commitm nts n d27. It lso involv s n tion l s curit int r sts, nd n ctiv pl nnin nd possibl p rmittin b th n v nd milit r . It involv s m ritim sp ci l pl nnin th t t k s oth r comm rci l ctiviti s into ccount, such s fish ri s, co st l tourism industr , nd shippin ctiviti s. Th s shortcomin s r to som d r id ntifi d b th 2019 WB/IFC stud , s th stud found n d for cl r r rol s nd m nd t s in p rmittin nd mor uid nc , coordin tion, nd li nm nt mon st s ctor st k hold rs, lso to ov rcom complic tions of ov rl ppin m nd t s. Th stud lso c lls for nuin on -stop ppro ch, s proj ct d v lop rs obs rv l ck of d qu t support from th ov rnm nt to compl t th t pic l compr h nsiv pprov l proc ss s within th stipul t d tim lin ss28. Also, th ADR/UNDP 2017 stud c lls for n improv d int r t d n tion l n r polic formul tion cross polic nd l l fr m work29. Two fin l obs rv tions on th offshor wind p rmittin nd th und rl in studi s nd inv sti tions r l t to th n d for robust b s lin surv s nd th ESIA to b compl t d to GIIP, nd it r l t s to th li nm nt of r ul tor fr m work nd p rmittin to l nd r r quir m nts to void d l in fin ncin . Th s sp cts n d to b t k n into ccount b th SEA, th CEB, th PUC, nd lso th SEA wh n s ttin th conditions nd t riff structur s for th p rticul r offshor wind t nd r. 27 For inst nc , followin possibl bil t r l r m nts nd/or si n tur to int rn tion l l w, . ., th UNECE Espoo Conv ntion on Environm nt l Imp ct Ass ssm nt ( lso op n for UN m mb rs b ond th UNECE), lthou h Sri L nk is not p rt to th Conv ntion. 28 WB/Infr SAP [2], p. 10, 54, nd 58. 29 ADB/UNDP 2017 [23], p. 99. 75 Offshor Wind Ro dm p for Sri L nk 8.4 PUBLIC CONSULTATION Public consult tion is n int r t d p rt of th pl nnin nd pr p r tion for r n w bl n r proj cts. Th int rvi ws h v indic t d, lthou h not in d t il d m nn rs, th t th consult tion proc ss s r not lw s w ll impl m nt d30. B s d on r c nt t nd rs in onshor r n w bl n r proj cts, it pp rs th t si nific nt focus in Sri L nk lr d is b in ttribut d to nvironm nt l nd soci l ss ssm nts (ESIA) nd r l t d public consult tions31. This is sound ppro ch consid rin th bilit h r of to miti t r l t d dv rs imp cts du to th d ns popul tion, sc rc l nd r sourc s v il bl nd th si nific nt soci l nd l nd ri hts involv d. Th possibl futur offshor loc tion m miti t som of th s conc rns r l t d to d ns popul tion nd sc rc l nd r sourc s v il bl . How v r, n offshor loc tion will most lik l involv ddition l nd diff r nt st k hold rs comp r d to th tr dition l l nd-b s d proj cts. This m c us som initi l ch ll n s for n nvironm nt l nd soci l imp ct ss ssm nt, s w ll s consult tion proc ss s, in t rms of proc ss nd m n m nt of outcom nd xp ct tions. 8.5 LEASE AND LAND RIGHTS As m ntion d pr viousl , s p rt of th sit nd proj ct pr p r tions, p st xp ri nc s h v r v l d ch ll n s in r l tion to c rt int in ctu l loc tion nd in th conditions of l s nd l nd ri hts. Offshor l s /conc ssion of s b d for priv t d v lop rs is lr d l ll possibl , s s n within th oil nd s s ctor und r th Ministr of P trol um nd pprov l b th C bin t32. It is ssum d th t simil r l s for offshor wind proj cts will b b s d on firm l l b sis provid d b th Gov rnm nt of Sri L nk . R l t d to this, it h s b n not d th t proj ct impl m nt tion rli r w s ch ll n d b d l s in l nd cquisition du to unc rt int in th l nd l s fr m work, nd unc rt inti s r l t d to r c nt si nific nt incr s s in th l sin f s nd l ck of tr nsp r nc into th lloc tion nd v lu tion of st t l nd33. To ov rcom such unc rt inti s, th WB/Infr SAP stud r comm nds SEA to provid cl r fr m work for l nd cquisition in ord r to id ntif /s l ct l nd p rc ls includin n ov rvi w of pot nti l loc tions, to provid cl r comp ns tion sch m b s d on m rk t pric , nd to ov rcom th int rn l d l in ov rnm nt proc ssin 34. 30 It is not d th t Sri L nk is not p rt to th UNECE Conv ntion on Acc ss to Inform tion, Public P rticip tion in D cision-m kin , nd Acc ss to Justic in Environm nt l M tt rs (A rhus Conv ntion). 31 S for inst nc r c nt 2020 r qu st for propos l (RFP) b th Sust in bl En r Authorit (SEA) b s d on ToR from th C ntr l Environm nt l Authorit (CEA) on n ESIA for Propos d Wind nd Sol r H brid En r P rk Proj ct in Poon r n, procur m nt nr: SEA/PD/S/24/2020. 32 S for inst nc https://www.tr d . ov/countr -comm rci l- uid s/sri-l nk -oil- nd- s 33 WB/Infr SAP 2019 [2], p. 54 nd ADB/UNDP 2017 [23], p. 54. 34 WB/Infr SAP 2019 [2], p. 54. 8R ul tor Fr m work 76 8.6 MARKET ACCESS 8.6.1 Public Priv t P rtn rship Sri L nk h s for m n rs r co ni d th si nific nc of involvin priv t p rtn rs to und rt k infr structur proj cts b s d on procur m nt proc ss s nd comp titiv bid [46]. Ov r th rs, Sri L nk h s d v lop d tr dition for public priv t p rtn rship nd involv m nt of IPPs. How v r, th priv t s ctor involv m nt is not n r ll consid r d to b succ ss stor 35, nd it is lso found th t th PPP r im mplo d s ms mor cc pt bl to dom stic inv stors36. Th ADB/UNDP 2017 stud found th t for i n nd dom stic institution l inv stors in Sri L nk h v b n f cin si nific nt b rri rs to inv stm nt in th r n w bl n r s ctor, with num rous risks in th form of off-t k r risk, curr nc risk, l nd cquisition, nd r ul tor risks37. D spit such ch ll n s, it is n r ll r comm nd d for Sri L nk to look b ond publicl fin nc d proj cts nd incr s th sh r of comm rci l fin ncin nd ncour r t r priv t s ctor 38 p rticip tion in ord r to m t its rowin n r n ds . As such, nd in ord r to ttr ct priv t nd for i n inv stm nt nd to nsur b nk bl proj ct structur s s p rt of th ov r ll n blin nvironm nt of th n r s ctor in Sri L nk , th World B nk r comm nds furth r str n th nin of th PPP r im in Sri L nk s p rt of ro dm p tow rds n improv d pow r s ctor. Th r comm nd tions ddr ss in p rticul r th n d for cl rit in th risk lloc tion involv d, s w ll s improv d tr nsp r nc nd cl rit r l t d to proc ss, v lu tion, ov rnm nt rol s, nd d cision- m kin proc ss s39. 8.6.2 Procur m nt nd Contr ctin Th n r l s ntim nt of th int rvi w s r v ls th t th curr nt procur m nt nd contr ct r im m provid b sic found tion to sust in offshor wind proj cts nd ttr ct for i n d v lop rs nd inv stors. How v r, this m b in contr st to p st xp ri nc s r l t d to ov rnm nt procur m nt in Sri L nk , wh r procur m nt from n int rn tion l point of vi w could r is conc rn for l ck of tr nsp r nc nd ccount bilit in th t nd r proc ss, nd wh r t nd r sp cific tions oft n w r d v lop d to suit p rticul r comp n 40. It is lso obs rv d th t th unc rt int involv d in th procur m nt proc ss s l ds to c rt in r li nc on unsolicit d propos ls41. For such r sons, it is su st d to promot priv t p rticip tion b s d on cl r procur m nt proc ss with f ir nd tr nsp r nt s t of t nd r rul s to m ximi proc ss ffici nc , nd lso to m int in multi- r pip lin of proj cts to continuousl n inv stors for d v lopm nt of th s ctor . 42 35 ADB 2015 [24], p. 28. 36 WB/Infr SAP 2019 [2], p. 16. 37 ADB/UNDP 2017 [23], p. 49s nd 51s. 38 S WB/Infr SAP 2019 [2], p. 3. 39 S WB/Infr SAP 2019 [2], p. 52 nd 60. 40 S WB/Infr SAP 2019 [2], p. 52s. Th conc rn is r is d s n r l obs rv tion for ov rnm nt procur m nt how v r, und r th h din of S nit r nd Ph tos nit r M sur s, which m r f r to diff r nt kind of ov rnm nt procur m nt th n ppli d/ xp ct d for OWF. How v r, th conc rn r is d conc rnin l ck of tr nsp r nc nd bi s d proc ss s r is s som ov r ll conc rns. 41 WB/Infr SAP 2019 [2], p. 53. 42 WB/Infr SAP 2019 [2], p. 52s. 77 Offshor Wind Ro dm p for Sri L nk In ov r ll t rms, th Sri L nk n l l r im s ms to follow int rn tion l r co ni d principl s for comp titiv procur m nt sch m s (r strict d t nd rs), nd for tr dition l contr ct p r di ms b s d on PPA nd f d-in-t riffs43. This provid s som comfort to th int rn tion l bidd rs. How v r, s th pr vision studi s h v shown, issu s r obs rv d with r rd to procur m nt nd PPP. Mor ov r, th curr nt t riff r form s introduc d with th El ctricit Act 2009 b s d on s p r tion of th costs r l t d to n r tion, tr nsmission, nd distribution, nd on r cov r of ll r son bl costs involv d, h s not t b n full impl m nt d, which h s l d to som public distrust in th t riff s st m. In ddition, th curr nt l ctricit t riffs r not lw s s n s cost- ff ctiv 44. As such, th ro d m p should xplor th n d for l l r form of th t riff m thodolo in th El ctricit Act to full t k dv nt of mor d pt nd fl xibl p m nt s st ms, which should includ th possibilit for CfDs in c s of futur lib r li d l ctricit m rk t ( lik l cons qu nc of th tr nsn tion l rid xp nsion in Asi — th cross-bord r l ctricit tr d (CBET) initi tiv , s mor b low). As th curr nt r n w bl n r proj cts r r l tiv l sm ll sc l , it could b qu stion d wh th r th curr nt institution l c p cit nd xp ri nc l v l will b d qu t l bl to m t int rn tion l xp ct tions on l r r-sc l offshor wind proj cts. Such l r -sc l proj cts c ll for dv nc d nd r sourc -d m ndin comp titiv di lo u nd n tion procur m nt proc ss s, s w ll s impl m ntin contr cts ( . ., EPC, DBFO, PPAs, tc.) for th ff ctiv m n m nt of l r r sc l OWF proj cts nd th compl xiti s th involv . It lso c lls for fl xibl pricin structur s b s d on CfD (if th l ctricit m rk t b com s furth r lib r li d). Som l rnin could com from th xp ri nc s followin th first OWF proj cts to com . A clos r ss ssm nt of th procur m nt nd contr ctin r im s should th r for b p rt of l t r v lu tion. As cons qu nc of this dv nc d ppro ch, it is r comm nd d to incr s th knowl d nd c p cit of th Sri L nk n ov rnm nt in h ndlin nd und rt kin procur m nt proc ss s b s d on int rn tion l PPP xp ri nc s45. For i n Inv stm nt Accordin to th int rvi ws, th r ul tor fr m work is improvin in ttr ctin int rn tion l d v lop rs nd inv stors. Biddin nd t nd r p rticip tion is lso op n for int rn tion l bidd rs, nd comp n r istr tion nd busin ss op r tion c rr no obs rv d difficulti s for for i n comp ni s. Th int rvi w s m ntion th t th Bo rd of Inv stm nt (BOI) m pl n instrum nt l rol in th p rticul r t nd r in ord r to cl r such difficulti s in ord r to nsur n v n pl in fi ld for ll bidd rs46. How v r, c rt in fin nci l r quir m nts, such s sp cts r rdin curr nc conv rsion/d pr ci tion m still b 47 consid r d s m jor risk for for i n inv stors . Such ch ll n s h v lso r sult d in d clin in for i n inv stm nts in th pow r s ctor from 2013 to 2017; how v r, this is prim ril obs rv d du to polic unc rt int 48. This d v lopm nt m contr st inform tion for 2016-2017 st tin th t n r l for i n busin ss d v lopm nt in Sri L nk is rowin st dil [47]. 43 S for inst nc , [95] for th st blishin of 60MW wind pow r pl nts on PPP build, own, nd op r t contr ct b sis, nd subj ct to Int rn tion l Comp titiv Biddin (ICB) — t mpl t lso v il bl t [118]. 44 WB/Infr SAP 2019 [2], p. 4 nd 12s nd ADB/UNDP 2017 [23], p. x nd 104ss. 45 S lso WB/Infr SAP 2019 [2], p. 58s. 46 Th BOI’s ov rvi w of inv stm nt polici s nd r l t d r ul tion provid s uid nc for dom stic nd for i n inv stors nd illustr t s t th s m tim th r c nt d v lopm nt in polici s nd l ws nh ncin priv t inv stm nt nd p rtn rship. 47 S lso WB/Infr SAP 2019 [2], p. 5. 48 S lso WB/Infr SAP 2019 [2], p. 5. 8R ul tor Fr m work 78 Th m rk t ttr ctiv n ss d p nds r th r obviousl on th OWF proj ct opportuniti s nd th r din ss/l v l of pr p r tion of t nd r nd proj ct t rms b in off r d b th Sri L nk n ov rnm nt. Th int rvi w d st k hold rs w r not ntir l convinc d th t th r is pot nti l offshor wind m rk t of l r int rn tion l sc l in th n r futur . P rh ps in lon r t n rs + p rsp ctiv , s d t rmin tion, m turin , nd pr p r tion of possibl offshor wind sit s will t k pl c , mor opportuniti s nd m rk t ttr ctiv n ss r lik l to occur. 8.6.3 Sri L nk n Grid In comp rison to th Europ n rid s st m nd its int r t d cc ss to n lmost ndl ss m rk t, th OWFs in Sri L nk m in th futur provid pow r to b sold throu h n int rconn ctor tow rds th Indi n nd Asi n m rk t. Sri L nk is ctiv l ddr ssin th us of cross bord r l ctricit tr d (CBET) initi tiv s s p rt of th N tion l En r Polic & Str t of Sri L nk 49. N v rth l ss, th dom stic m rk t m in its lf provid n incr sin busin ss c s s th d m nd for pow r, nd th d m nd for r n w bl n r pow r in p rticul r, is risin . Th futur of offshor wind in Sri L nk is clos l link d to th d v lopm nt of oth r possibl r n w bl n r sourc s. As Sri L nk most lik l lso in th futur n ds to optimis th us of th sc rc l nd r s, offshor wind m st nd w ll in this sp ct t kin into ccount th t sol r pow r is r l tiv l l nd d m ndin . Fin ll , th t nd nci s of r n inv stm nts oin virtu l (i. ., VPPAs) indic t d th t offshor wind inv stm nts r trul lob l. For such r sons, OWF proj cts m b n pp lin busin ss opportunit lso in Sri L nk . 8.7 INTERNATIONAL REGULATORY EXPERIENCES To ss ss offshor wind m rk t opportuniti s for Sri L nk , it m b us ful to dr w on r l v nt offshor wind int rn tion l xp ri nc s nd l ssons l rn d sp ci ll from north rn Europ 50,51. An comp rison b tw n jurisdictions nd m rk ts sh ll b ppro ch d with c ution s conditions t pic ll v r . How v r, lthou h it is not th im of this stud to provid comp rison with th Sri L nk n r ul tor r im , th l ssons from Europ provid inspir tion s w ll-r ul t d, int r t d nd tr nsn tion l s st m, nd s th Europ n suppl ch in for offshor wind f rms is m tur nd comp titiv , s rvin not onl wind f rms in Europ , but lso som wind f rms in mor dist nt countri s52. Comp ni s from th UK, D nm rk, G rm n , nd th N th rl nds r th m in p rticip nts in th suppl ch in, sinc th s s bord rin th s countri s h v s n th most rowth in offshor wind53. 49 S not 12 nd points 3.1.11 nd 4.1.1 of th N tion l En r Polic nd Str t i s of Sri L nk : To r li n r s curit , f sibilit of cross bord r l ctricit tr nsf r with countri s in th r ion will b studi d nd docum nt d b nd 2021, nd vi bl cross-bord r l ctricit tr nsmission nd coop r tion with countri s in th r ion will b pursu d on th b sis of multil t r l pow r pool op r tion. 50 Hoh S [106] • Horns Proj ct On [112] Pl s not th t this s ction is d t il d on th D nish nd UK r im s. For furth r compr h nsiv ov rvi w of int rn tion l r ul tor pr ctis nd xp ri nc s, pl s s th r c nt World B nk Group’s 2021 r port “K F ctors for Succ ssful D v lopm nt of Offshor Wind in Em r in M rk ts”. [17] 51 R ul tor l ssons for this stud r d riv d prim ril from x mpl s of OWF proj cts (r c ntl in op r tion or pl nn d), nd b s d on th inform tion provid d: • D nm rk’s En r Isl nds [96] • Kri rs Fl k [97] • B ltic 2 [98] • H ss lø Offshor Wind F rm [99] • Thor Offshor Wind F rm [100] • N rshor Wind T nd r [102] • W ln Ext nsion [103] • Horns R v 3 [104] • B tric Offshor Windf rm Ltd [105] • Hoh S [106] • Horns Proj ct On [107] 52 Th UK r ul tor ppro ch in pl nnin nd cons ntin , s w ll s in th suppl ch in r l t d to ll proj ct ph s s is w ll docum nt d in BVG Associ t s’ 2019 “Guid to n Offshor Wind F rm. Th uid lists th uthoriti s, functions, suppli r n m s, costs, k f cts, nd scop for suppl ch in it ms in ch proj ct ph s from d v lopm nt ll th w throu h d commissionin . Ev n thou h th uid is focus d on th UK, th inform tion iv n n r ll provid ood r pr s nt tion of th Europ n m rk t, sinc co-op r tion is common [49]. 53 For th D nish r ul tor ppro ch, s th DEA’s En r Polic Toolkit [108], which provid s ood ov rvi w of OWF pl nnin nd cons nts. As from 2015, th d t ils of th l isl tion h v ch n s, but th n r ll isl tiv proc ss is still th s m . 79 Offshor Wind Ro dm p for Sri L nk In Europ , sp cific offshor wind n tion l l isl tion ddr ss s nd dir ctl ncour s th d v lopm nt of OWF proj cts. Such l isl tion provid s th n d d c rt int nd st bilit to ttr ct inv stm nts nd d v lop rs. With this fr m work s b sis, public r ul tors pr p r nd m n th t nd rs in ff ctiv m nn rs nd includ th public nd oth r st k hold rs in f cilit tin consult tion nd p rticip tion proc ss s. Th D nish nd Dutch offshor wind l isl tion is for inst nc t pic ll v il bl in En lish nd is b s d on s m r ul tor conc pts54. Th dv nc d Europ n offshor wind m rk t nd r ul tor fr m work is us ful for thr r sons: First, th Europ n m rk t nd r ul tor r im r products of l rnin proc ss. S cond, b in dv nc d provid s us ful b nchm rkin for lob l m rk t st nd rds nd loc l r ul tion. Third, th Europ n offshor wind m rk t nd r ul tor fr m work to l r xt nt s ts th b r for int rn tion l inv stors’/d v lop rs’ xp ct tions nd int r sts wh n ss ssin lob l m rk t opportuniti s for b nk bl inv stm nts. An inv stm nt r im b s d on r ul tor c rt int nd r li bilit in t rms of m rk t cc ss nd durin impl m nt tion m prov to b pr f rr d busin ss c s . How v r, th s sp cts sh ll b s n in th sp cific cont xt of ch individu l proj ct opportunit s loc l proj cts m h v uniqu ttr ctiv n ss for int rn tion l inv stors b sid th for m ntion d. 8.7.1 Pl nnin Th k for n succ ssful offshor wind is w ll-pl nn d proc ss. It is proc ss b in ch r ct ri d b compl xit in m n in th m n int rf c s, risks, nd int r sts involv d, such s s curin nd sust inin lon -t rm p rtn rship with priv t contr ctor, nsurin optim l b nk bilit nd b st comp titiv pric s b s d on pr dict bilit nd c rt int in risk lloc tion, risk miti tion, nd contr ct m n m nt. Pl nnin B s d on Lon -T rm Go l OWF proj cts r t pic ll ddr ss d in lon -t rm n tion l pl nnin nd furth r d t il d b pl nnin nd sp cific l isl tion providin th l l m nd t s n d d. Th pl nnin will lso initi t th rl consult tion proc ss s involvin st k hold rs nd th public in n r l. Th s proc ss s r us ful in stimul tin th n d d l itim c for th proj cts to com nd to l rt th m rk t inv stors of possibl n w proj ct opportuniti s. Int r t d N tion l nd Tr nsn tion l Pl nnin nd Coordin tion Th loc tions of OWFs in th North S nd th B ltic S r ch r ct ris d b w t rs b in sh r d b m n st t s nd b in us d s som of th busi st shippin rout s in th world. As such, in ddition to n tion l pl nnin r quir m nts, si nific nt l m nt of tr nsn tion l pl nnin nd or ni tion t k s pl c . EU nd n tion l l isl tion, includin int rn tion l l isl tion ( . ., th Espoo Conv ntion) nd th r ion l s conv ntions (i. ., OSPAR nd HELCOM), r quir n tion l nd tr nsn tion l nvironm nt l, soci l, nd conomic imp ct ss ssm nts, m ritim sp ti l pl nnin , nd public consult tion. 54 Th D nish r ul tion provid s n x mpl : Th conditions for offshor wind f rms r d fin d in th Promotion of R n w bl En r Act. In ch pt r 3, it is st t d th t th ri ht to xploit n r from w t r nd wind within th t rritori l w t rs nd th xclusiv conomic on (up to 200 n utic l mil s) round D nm rk b lon s to th D nish St t [109]. 8R ul tor Fr m work 80 It is lso m rk t driv n coop r tion nd coordin tion mon st TSOs in th r ion ncour d b EU l isl tion nd m rk t ppro ch to optimi /utili c p cit b s d on conom of sc l . 55 N tion l nd EU l isl tion r quir th t offshor pl nnin is b s d on n int r t d ppro ch. It follows from EU m rin nd m ritim l isl tion, nd from th R ion l S Conv ntions th t EU m mb r st t s individu ll nd in tr nsn tion l coordin tion sh ll obt in pl nnin t kin ll ctiviti s into ccount. Th pl nnin will in d t il pr p r for furth r d v lopm nt of OWF sit s nd nsur li nm nt with oth r pl nnin nd r us , such s for n tion l s curit of milit r nd n v purpos s. It is not p r s , s st m th t limin t s th s cr c nd prioriti s ssoci t d with n tion l s curit but r th r s st m th t nsur s coordin tion mon st int r sts. 8.7.2 Int r t d P rmittin Th n tion l p rmittin for th d v lopm nt of offshor wind is prim ril b s d on n int r t d p rmittin s st m mon st uthoriti s nd on -stop ppro ch. This m ns th t th pplic nt in most c s s m onl r f r to on ntr point, nd th t p rmittin will b coordin t d b tw n uthoriti s s f r possibl . It should b not d, how v r, th t ll comp t nt uthoriti s will b involv d nd will issu p rmit conditions to b fulfill d b th d v lop r. How v r, it is s st m th t si nific ntl limin t s unc rt inti s r l t d to th proc ss, timin , nd outcom of n s st m involvin m n p rmittin uthoriti s, includin uthoriti s s f u rdin n tion l s curit issu s. As n x mpl , in D nm rk, thr lic ns s r r quir d to st blish n offshor wind f rm [48]. Th thr lic ns s r r nt d b th D nish En r A nc (DEA), which s rv s s “on -stop-shop” for th proj ct d v lop r. Th thr lic ns s r : 1. Lic ns to c rr out pr limin r inv sti tions 2. Lic ns to st blish th offshor WTGs (onl iv n if pr limin r inv sti tions show th t th proj ct is comp tibl with th r l v nt int r sts t s ) 3. Lic ns to xploit wind pow r for c rt in numb r of rs, nd n pprov l for l ctricit production ( iv n if conditions in lic ns to st blish proj ct r k pt) Th thr lic ns s r iv n succ ssiv l for sp cific proj ct. Furth rmor , it is n c ss r to p rform n EIA if th proj ct is xp ct d to h v n nvironm nt l imp ct. So f r, it h s b n n c ss r to p rform n EIA for ll xistin D nish offshor wind f rms. An int r t d on -stop ppro ch is not without s v r l pplic tion ph s s in tim nd cont nt. D p ndin on th t nd r t rms, th succ ssful winn r m b r quir d to follow-up nd/or und rt k sp cific p rmittin r quir m nts s p rt of th proj ct pr p r tion nd th und rt kin of th EPC contr ct nd possibl followin O&M contr ct. Th l v l of involv m nt of th d v lop r nd th d r of risk ttribut d d p nds on th sp cific proj ct. How v r, in ord r to limin t unc rt int , Europ n offshor wind t nd rs r t pic ll w ll-pr p r d in ord r for th d v lop r to t k dv nt of lr d issu d p rmits nd/or ppl for p rmits b s d on w ll-d v lop d f sibilit studi s nd imp ct ss ssm nt. 55 Th own rs of th wind f rms Kri rs Fl k nd B ltic 2, for x mpl , h v r c ntl compl t d joint 10- r proj ct to th r with TSOs T nn t nd 50H rt to m k th world’s first combin d rid conn ction b tw n two wind f rms [110]. 81 Offshor Wind Ro dm p for Sri L nk Institution l l d nc is t pic ll within th ministr of n r , b in th n r nc — such s th D nish En r A nc (DEA) — or n nc within m n m nt of n tur l r sourc s nd/or r n w bl n r infr structur . In th UK, th p rmittin s st m is lso str mlin d in fiv sp cts [49]: 1. B for th cons ntin proc ss c n b in, th d v lop r must s cur s b d l s b Th Crown Est t (in 2017, n w bod , Crown Est t Scotl nd, w s form d to own nd m n th s b d in Scottish T rritori l W t rs nd dj c nt r s of th Unit d Kin dom Exclusiv Economic Zon ). Th Crown Est t r t ins r sponsibilit for th s b d in En l nd, North rn Ir l nd, nd W l s. 2. Offshor wind proj cts of mor th n 100MW inst ll d c p cit in En l nd nd W l s r d fin d s n tion ll si nific nt infr structur proj cts (NSIP) nd r x min d b th Pl nnin Insp ctor t . 3. Th S cr t r of St t for th D p rtm nt for Busin ss, En r , nd Industri l Str t (BEIS) r nts or r fus s cons nt b s d on r comm nd tion m d b th Pl nnin Insp ctor t . In En l nd, D v lopm nt Cons nt Ord r is r nt d und r th Pl nnin Act 2008 ( s m nd d) which incorpor t s s v r l cons nts, includin m rin lic nc nd onshor cons nts. In Scotl nd, M rin Scotl nd x min s pplic tions for th offshor works nd Scottish Minist rs r nt or r fus cons nt und r th M rin (Scotl nd) Act of 2010 (up to 12nm from shor ) nd th M rin nd Co st l Acc ss Act 2009 for proj cts 12-200nm from shor . 4. A str mlin d proc ss incorpor t s cons nt und r S ction 36 of th El ctricit Act 1989 in p r ll l. 5. Onshor cons nt includin wh r th tr nsmission c bl l ndf ll is w rd d b th r l v nt loc l pl nnin uthorit (LPA), xc pt wh r proj ct is h ndl d und r n NSIP in En l nd nd W l s, in which c s th onshor cons nts r consid r d within th NSIP proc ss. D v lop rs t pic ll build int rn l t ms of bout up to 50 st ff durin th d v lopm nt ph s , which contr ct sp ci list p ck s of work to nvironm nt l nd n in rin consult nci s nd d t cquisition nd n l sis comp ni s. 8.7.3 Conc ssion/Us of Sit Th succ ssful d v lop r of n OWF sit obt ins l l ri ht for sit cc ss nd conc ssion of xclusiv sit xplor tion b s d on lon -t rm contr ct. Th ri hts followin th conc ssion c n b b s d on us , r nt, or l s contr ct t rms s n int r t d p rt of th proj ct r m nt or th PPA. Th contr ct will stipul t th t rms for sit conditions, th construction of th OWF, th us of th sit nd th xclusiv xplor tion. It will lso includ cc ss r s, pip lin s, nd subm rin c bl s. D p ndin on th t rms of th t nd r nd th contr ct, th d v lop r m lso b r sponsibl for r s nd pip lin s t l nd until th d si n t d conn ction point(s) to th rid s st m. As xpl in d, th Crown Est t /Crown Est t Scotl nd provid s s b dl sin . In D nm rk, this is provid d b th D nish En r A nc . 8R ul tor Fr m work 82 8.7.4 M rk t Acc ss Acc ss to th Europ n m rk t is b s d on w ll- st blish d procur m nt proc ss s. Procur m nt t k s pl c s r sult of lon -t rm pl nnin nd t k s dir ct dv nt of lib r li d nd comp titiv n r m rk t to m t th mbitious r n w bl n r polic o ls nd nd s t n tion l nd EU l v ls. As p rt of th procur m nt proc ss, th comp titiv ppro ch mon st bidd rs is d lib r t l b in mplo d in t rms of n oti tion durin procur m nt with th im of mpow rin public priv t p rtn rships to utili nd t p into xistin cuttin - d knowl d , xp rtis , nd r sourc s to d v lop, fin nc , nd to impl m nt offshor wind proj cts. This ppro ch lso t pic ll involv s d r of w ll-b l nc d loc l cont nt r quir m nts to stimul t its dom stic industr without j op rdi in th m rk t ttr ctiv n ss for for i n inv stors. D riskin Th public priv t p rtn rship llows for rl involv m nt in th proc ss, which in llows for s curin n rl -p rtn r commitm nt to th proj ct v n b for w rd of contr ct, to miti t unc rt inti s nd risks id ntifi d, nd to obt in v lu bl insi ht from th bidd rs to furth r r fin th d t ils of th procur m nt m t ri l, such s t chnic l nd comm rci l d t ils. Th m rk t nd th proj ct own r its lf n d c rt in l v l of proj ct c rt int nd pr dict bilit to ss ss th ttr ctiv n ss of th proj ct. This c lls for cl r risk lloc tion nd work division for both d v lop r nd th own r durin construction nd impl m nt tion, nd th und rt kin h r of must b r fl ct d r listic ll in th impl m nt tion pl n of th proj ct. If such is not in pl c , th r m not b n or limit d p rticip tion/bids or th t th pric s off r d will b hi h to cov r th unc rt inti s. Addition ll , th r m b risk of th d v lop r d f ultin durin impl m nt tion if c rt int is l ckin . This m ns th t proj cts to th xt nt possibl r b in d risk d b w ll- pr p r d t nd rs nd risk id ntific tion b s d on imp ct ss ssm nts nd f sibilit studi s. D riskin lso t k s ctiv p rt of th procur m nt n oti tion its lf, llowin th p rti s to id ntif risks, provid for r d risk lloc tion within th t nd r r quir m nts nd to st blish risk m n m nt nd risk miti tion sch m s. In ddition to c rt int conc rnin sit condition, cc ss r s, nd conn ction points/int rf c s, c rt int is lso r quir d b th l l nd r ul tor fr m work. Th t nd r must b cl r in d si n tin contr ctin uthorit nd outlinin th proc ss r quir d, includin p rmittin . E ch bidd r must und rt k l l du dili nc to id ntif possibl r ul tor shortcomin nd risks, nd th s sh ll b ddr ss d durin th procur m nt st . B sid s c rt int in public l w, l l c rt int lso r quir s c rt int in cl r contr ct t rms b tw n th p rti s. Contr ct form t follows int rn tion l r co ni d form ts nd r im s b s d on cl r contr ct structur s, such s EPCI ( n in rin , procur m nt, construction, nd inst ll tion), d si n, build, fin nc , op r t (DBFO), pow r purch s r m nts (PPAs), nd sin l or multi-contr ct r im s. A si nific nt risk lloc tion is t pic ll ddr ss d b th pric nd p m nt structur involv d. F d-in-t riffs th t w r common in th p st h v b n r pl c d b structur b s d on ‘on- oin ’ m rk t pric s with d riskin c ps for both d v lop r nd contr ctor ( . ., b s d on CfDs). 83 Offshor Wind Ro dm p for Sri L nk Contr ctin nd Procur m nt Str t This c lls for cl r procur m nt str t s p rt of th rl st s of th pl nnin for th proj ct. As r c nt Europ n offshor wind proj ct xp ri nc s show, curr nt procur m nt involv s th followin m jor c t ori s which should b consid r d t n rl st : ■ M rk t soundin is us d prior to th l unch of th offici l procur m nt to initi t n inv sti tion into th curr nt pp tit /int r st mon st th pot nti l bidd rs t th int rn tion l m rk t. This insi ht is k to t r t th l unch of th procur m nt nd to l v l/optimi th d t ils of th procur m nt m t ri l nd th proj ct conditions. ■ Public t nd rin or uctions b s d on n oti tion with pr qu lifi d hi hl li ibl bidd rs. This llows for s curin n rl p rtn r commitm nt to th proj ct v n b for w rd of contr ct, to miti t unc rt inti s nd risks id ntifi d, nd to obt in v lu bl insi ht from th bidd rs to furth r r fin th d t ils of th procur m nt m t ri l, such s t chnic l nd comm rci l d t ils. ■ Us of int rn tion ll -r co ni d procur m nt proc ss s nd contr ct r im s ( . ., EPCI/ turnk , sin l or multi-contr ct r im s, DBFO, O&M) t ilor d with sp cific conditions r l v nt for th p rticul r proj ct. Us of such r co ni d r im s nh nc c rt int nd stimul t th int r sts for th proj ct mon st int rn tion l bidd rs. ■ Pric structur b s d on on- oin m rk t pric s with d riskin c ps for both d v lop r nd contr ctor ( . ., b s d on CfDs). ■ Bidd rs to t k mor risk nd r sponsibilit for conn ction rid nd points (both in t rms of construction nd/or op r tion) tow rds TSO v n t shor . ■ Sit pr p r tions d p ndin on th ctu l proj ct. Wh r such pr p r tion lr d is provid d for b th ov rnm nt ( . ., initi l nvironm nt l imp ct ss ssm nt (IEIA) to id ntif f t l fl ws (if n ) nd pr -f sibilit studi s), it m constitut d riskin for th priv t d v lop r ( ll d p ndin on th t nd r t rms) nd procur m nt tim m b short n d nd to som xt nt lso llow for c rt in d riskin for th contr ctor. Th sound procur m nt nd contr ctin of l r -sc l offshor wind f rm h s m jor influ nc on th succ ss of th proj ct. Th costs involv d nd pot nti l for profit or loss is much hi h r in comp rison to sm ll r sc l onshor wind f rm proj cts. Th r for , th cons qu nc s of poor contr ctin nd procur m nt str t c n h v s rious imp ct on th proj ct fin nci l p rform nc . 8R ul tor Fr m work 84 Europ n Grid M rk t ttr ctiv n ss is lso sust in d b hi h l v l of Europ n m rk t cc ss b w ll- int r t d, w ll- st blish d, nd st bl rid s st m. S ml ss int r tion mon st Europ n st t s nd m rk ts, which promot s st bilit , nd s curit r l r l b s d on EU l isl tion nd provid s th inv stor or d v lop r — nd lso th off-t k r — with hi h d r of c rt int in t rms of rid nd suppl c rt int v n in p k tim s nd durin f ll-out v nts. Th Europ n n r m rk t is ch r ct ri d b hi h d m nd for r n w bl n r solutions, s v r l n tion l m rk ts loc t d in r l tiv clos n ss to th OWF sit s, nd public nd comm rci l willin n ss to support th furth r d v lopm nt of offshor wind56. Th conc pt of multi-linkin is lso s n s n ffici nt w to t k b st us of r sourc s nd c n b xp nd d nd nrich d with n r stor c p biliti s or 57 PtX t chnolo i s . Th s f cts stimul t th int r sts mon st inv stors, d v lop rs, nd off-t k rs to mb rk on l r r OWF proj cts, which m b costl but lso lik l to b profit bl . Th s f cts lso stimul t virtu l inv stm nts in th Europ n m rk t from th world outsid . Th t nd nci s of r n inv stm nts tow rds virtu l PPAs (VPPAs) b s d on n incr s d focus on pric structur s b s d on CfDs illustr t s th t th lob l n r m rk t nd r l t d lob l comp tition in t rms of ttr ctin inv stors nd lso in t rms of comp tition mon st th inv stors th ms lv s trul r bord rl ss. Allow for Explor tion nd Exclusiv l Unl ss R s rv d b L w or Pl nnin As p rt of th lib r li d m rk t for offshor wind, nd to stimul t priv t d v lopm nt of offshor wind, th D nish l isl tion llows for ctiv pr -inv sti tions of possibl offshor sit s b priv t d v lop rs. Such pr -inv sti tion will ddr ss nd ss ss ll r l v nt conditions r l t d to th nvironm nt l issu s, wind r sourc nd oc n curr nts, nd imp ct on shippin nd oth r infr structur . B s d on n pplic tion from priv t d v lop r, xclusivit b th ov rnm nt m b r nt d for within s t tim fr m to und rt k such xplor tion nd if positiv conditions r found nd pprov d, d v lopm nt nd op r tion of th offshor wind m b r nt d und r s t t rms. This option is onl v lid for offshor wind li ibl sit s not r s rv d, us d, or prohibit d b pl nnin , us , or l w. This lso m ns in pr ctic l t rms th t pplic tions will not b r nt d for offshor wind sit s r s rv d, or und r consid r tion for b in r s rv d, for public t nd rin b th ov rnm nt. 56 No vi bl t chnic l solutions llow l r -sc l wind f rm to run without rid conn ction. B tt r stor solutions r conomic l for us durin limit d tim on v r sm ll sc l (l ss th n 100MW) wind f rm. PtX t chnolo i s r promisin , but h v not t b n ppli d to offshor wind nd would nd c rr v r hi h risk in th first f w pplic tions 57 As Europ looks tow rd 180GW in th North S , such n r stor nd distribution t chnolo is s n s mor fl xibl , f st r, nd cost- ffici nt m thod of usin offshor wind pow r, s w ll s to r duc tr nsmission n ds [111]. Th s hubs f cilit t b tt r link of ll th pow r produc d nd provid opportuniti s for n r stor , in th form of l ctricit nd h dro n. This conc pt is sp ci ll int r stin b c us th n twork conn cts not onl wind f rms, but countri s: G rm n , UK, Norw , D nm rk, nd th N th rl nds. 85 Offshor Wind Ro dm p for Sri L nk 9 FINANCIAL AND ECONOMIC ANALYSIS This ch pt r ss ss s th fin nci l vi bilit of offshor wind nd th import nt consid r tions to nsur th t futur proj cts r ‘b nk bl ’ nd bl to ttr ct low r-cost, l r -sc l d bt fin ncin . It lso ss ss s th pot nti l conomic b n fits th t could ris throu h th d v lopm nt of th two offshor wind rowth sc n rios. 9.1 COST OF ENERGY Th LCOE wind is th most common point of comp rison of pot nti l offshor proj cts both n tion ll nd int rn tion ll . Th LCOE m sur s th tot l cost of producin n r from sp cific sit p r unit of n r produc d ov r th lif tim of th proj ct. To do this, th LCOE discounts ll futur costs nd n r n r tion to tod ’s v lu usin th W i ht d Av r Cost of C pit l (WACC). I t + t M ∑n t=1 (1 + r)t LCoE = Et ∑n t=1 (1 + r)t L v li d Cost of En r : It : Inv stm nt cost in rt Mt : O&M costs in rt Et : En r n r tion in rt r : Discount r t n : Proj ct lif Th m in inputs for th LCOE stim tion r c pit l xp nditur (CAPEX), op r tion l xp nditur (OPEX) (i. ., O&M costs), nnu l n r production (AEP), proj ct dur tion, nd th cost of c pit l. Th cost of c pit l is import nt in Sri L nk b c us th loc l d bt int r st r t s r v r hi h. It is xp ct d th t offshor wind will h v to b fin nc d to l r xt nt b int rn tion l b nks nd conc ssion l fin nc . H nc , th imp ct of th cost of c pit l is x min d in s nsitivit n l sis. Lik wis , th l ck of on-sit wind m sur m nts r sults in consid r bl unc rt int on th v il bl wind r sourc , which will lso b ddr ss d b w of s nsitivit n l sis. Th ssumptions us d r summ ri d in T bl 9.1. 9 Fin nci l nd Economic An l sis 86 TABLE 9.1: INPUT ASSUMPTIONS FOR THE LCOE ESTIMATION. 2030 2030 Input Low Growth Sc n rio (0.5GW) Hi h Growth Sc n rio (1GW) CAPEX (US$ p r MW)58 2.5 million 2.5 million OPEX (US$ p r MW)59 100,000 100,000 C ntr l: 1,907 C ntr l: 3,821 N t AEP (GWh/ r)60 Hi h: 2,188 Hi h: 4,383 Low: 1,627 Low: 3,259 T chnic l lif ( rs) 25 25 W i ht d Av r Cost of 4%-12% 4%-12% C pit l (WACC) (%) Not th t th CAPEX nd OPEX ssumptions r th s m for both sc n rios. For both sc n rios, it h s b n ssum d th t th tot l 2030 c p cit (wh th r 500MW or 1,000MW) would b d liv r d b proj cts with c p cit of no r t r th n 500MW (this could pot nti ll includ multipl sm ll r proj cts), th r for , no conomi s of sc l h v b n includ d. In st blish d m rk ts, l r cost r ductions h v r sult d from sc lin up proj cts to 1,000MW or r t r, how v r, th sm ll sc l of th Sri L nk n rid m ns th t it will not b possibl to conn ct proj ct of this m nitud t sin l point. Th str n th nd st bilit of th rid will th r for limit proj ct’s c p cit . Th r sults of th LCOE stim tions r pr s nt d in Fi ur 9.1. Th imp ct of th cost of c pit l is s n s th LCOE incr s s s WACC incr s s. Unc rt int on th wind r sourc is shown s r b nd round th c ntr l stim t . Th wind r sourc unc rt int is xplor d b usin P50 nd P90 stim t s s hi h nd low stim t s. In both th low rowth nd hi h rowth sc n rios, th LCOE could b s low s US$65 p r MWh nd s hi h s US$155 p r MWh d p ndin on th cost of c pit l nd th wind r sourc . Assumin suffici nt risk miti tion m sur s nd support from bl nd d conc ssion l fin nc th t brin s th WACC down to six p rc nt, th LCOE for proj ct d liv r d b 2030 is xp ct d to b pproxim t l US$90 p r MWh nd possibl s low s US$75 p r MWh d p ndin on th wind r sourc . El ctricit costs could b furth r r duc d if r nt l m nt is introduc d s form of vi bilit p fin nc . This n l sis ssum s c pit l is provid d in h rd curr nc (US$ or EUR). Th l ctricit t riff how v r will lik l b p id in Sri L nk n rup s. To minimi WACC, it will b import nt to miti t th curr nc xch n risk. On option could b th s l of pow r to oth r countri s (vi futur int rconn ctor with Indi ) nd, for x mpl , B n l d sh off rs US$ d nomin t d PPAs. This wid r n of diff r nt options to r duc WACC nd th cost of l ctricit will n d to b consid r d in futur studi s, t kin into ccount mor ccur t ss ssm nt of costs nd risks. 58 CAPEX stim t is b s d on IEA En r Outlook 2021 [114] T bl B.4 . Numb rs r djust d to r fl ct st rt of construction in th mid-2020s. 59 OPEX stim t is b s d on IEA En r Outlook 2021 [114] T bl B.4 . Numb rs r djust d to r fl ct COD in th l t 2020s. 60 A n ric t n p rc nt loss from l ctric l loss s nd downtim is ppli d to th AEP ft r w k loss s. At P50 this corr sponds to pproxim t l 50 p rc nt n t c p cit f ctor. 87 Offshor Wind Ro dm p for Sri L nk FIGURE 9.1: LCOE ESTIMATES DEPENDING ON WIND RESOURCE AND WACC. 160 140 120 133 US$/MWh 100 116 80 101 88 60 76 40 20 0 4% 6% 8% 10% 12% WACC Wind resource uncertainty Central estimate In th hi h rowth sc n rio, LCOE is xp ct d to b th s m du to th f ct th t th xp ct d c p cit f ctor for th 1GW pl nt is ssum d to b th s m s th c p cit f ctor for 0.5GW (50 p rc nt CF). At th s m tim , si nific nt cost r ductions r limit d, s 1GW of c p cit is not suffici nt to d v lop loc l suppl ch in or in conomi s of sc l ov r 0.5GW of c p cit . Th r n of LCOE stim t s provid d in Fi ur 9.1 cl rl d monstr t th n d for ddr ssin two si nific nt unc rt inti s in th d v lopm nt of Sri L nk n offshor wind — th cost of c pit l nd th wind r sourc . D spit th l r LCOE unc rt inti s, offshor wind could b comp titiv with n w th rm l n r tion. For x mpl , th cost of n w LNG fir d n r tion is xp ct d to b b tw n US$90 nd 120 p r MWh ( quiv l nt to 9 to 12 US C nt/kWh, s s ction 2.2). 9.1.1 Cost Tr j ctori s Cost tr j ctori s tow rds 2050 will b subj ct to hi h d r of unc rt int . Th r r m n f ctors which will influ nc th futur cost of offshor wind in Sri L nk . Glob l tr nds in t chnolo ic l d v lopm nt nd ffici nc ins in inst ll tion nd op r tion of offshor wind f rms pl rol . So do s th r t of build-out of offshor wind c p cit in Sri L nk , d v lopm nt of th dom stic suppl ch in, nd m rk t conditions for th ind p nd nt pow r produc rs mon st oth rs. Fin ll , th d v lopm nt of n offshor industr in Indi h s th pot nti l to brin l r b n fits to Sri L nk in t rms of low r costs nd possibl lso jobs nd conomic rowth in supportin industri s. Th cost tr j ctori s provid d h r r b s d on l rnin curv s. L rnin curv s r simpl w of r l tin cost r ductions to incr s s in inst ll d c p cit . Th Int rn tion l En r A nc [50] h s stim t d l rnin r t for offshor wind of 15 p rc nt. Ev r tim inst ll d c p cit doubl s, th cost is r duc d b 15 p rc nt. Glob ll , th 15 p rc nt l rnin r t corr sponds to 40 p rc nt cost r duction b 2030. How v r, this is lob l v r domin t d b xistin inst ll tion. For n m r in m rk t, th 40 p rc nt cost r duction b 2030 is not dir ctl pplic bl . In n m r in m rk t, th 15 p rc nt l rnin r t should b ppli d to th xp ct d pip lin of offshor wind c p cit in th countr or r ion. Furth rmor , th 15 p rc nt l rnin r t should not b ppli d to th v r first offshor wind c p cit — oth rwis doublin c p cit will h pp n t n unlik l p c . 9 Fin nci l nd Economic An l sis 88 Th stim t d cost tr j ctori s for Sri L nk in th Low nd Hi h Growth sc n rios xpr ss d in t rms of th LCOE r provid d in Fi ur 9.2. In both sc n rios, it is ssum d th t th l rnin r t of 15 p rc nt do s not t k ff ct until ft r inst ll tion of th first 800MW offshor wind c p cit . FIGURE 9.2: LCOE TRAJECTORIES IN THE LOW GROWTH AND HIGH GROWTH SCENARIOS, INCLUDING A RANGE OF REPRESENTATIVE LCOE DUE TO UNCERTAINTIES. 100 90 80 LCOE [US$/MWh] 70 60 50 40 30 20 10 0 2030 2035 2040 2045 2050 High Growth Low Growth Representative LCOE Range From l v l of pproxim t l US$75 p r MWh in 2030, th LCOE of offshor wind in Sri L nk could drop to US$60-70 US$/MWh b 2040 nd US$50-60 p r MWh b 2050. Th s cost tr j ctori s r b s d on th inst ll d c p citi s provid d in s ction 6.2. Furth rmor , th LCOE stim t s r b s d on six p rc nt WACC. As with th m in stim t s for 2030, th s cost tr j ctori s r h vil d p nd nt on th cost of c pit l nd th wind r sourc . Th inst ll d c p citi s in Sri L nk r still r l tiv l sm ll in 2050, r sultin in mod r t cost r ductions. In r l tiv t rms, th cost tr j ctori s r sult in 20 to 30 p rc nt cost r duction b 2050 r l tiv to 2030. 9.2 BANKABILITY AND INTERNATIONAL FINANCING Offshor wind proj cts r pr s nt m ssiv c pit l inv stm nts with v r lon p b ck tim s. Th CAPEX of 500MW offshor wind proj ct, for x mpl , is t pic ll US$1,250 million. Und r t pic l limit d-r cours proj ct fin ncin structur , round US$1,000 million of th CAPEX would b b nk d bt. This puts mph sis on th fin ncin of th proj cts nd th bilit of th proj ct to not onl ttr ct inv stors but lso to s cur l ndin on r son bl t rms. Th t pic l d bt to quit split for offshor wind proj cts is in th r n of 65/35 to 80/20 d p ndin on th tr ck r cord of th d v lop r, th xp ri nc of th b nks, nd th ov r ll risk profil of th proj ct61. For m n m r in offshor m rk ts, th first offshor proj ct will s k mix of loc l nd int rn tion l l ndin . Th loc l b nks provid loc l knowl d , brid l n u b rri rs, nd m n c sh flows in th loc l curr nc . Th int rn tion l b nks provid knowl d of offshor wind proj cts, provid risk miti tion, nd l ndin t f vor bl r t s. Th t s id, th cost of c pit l from loc l b nks in Sri L nk n rup s could b s hi h s 15 p rc nt nd th r is limit d liquidit v il bl loc ll . Int rn tion l l nd rs m th r for b r quir d to cov r th m jorit , if not th ntir t , of th d bt. 61 It is ssum d th t offshor wind proj cts in Sri L nk will us proj ct fin ncin . 89 Offshor Wind Ro dm p for Sri L nk Th b nk bilit of offshor wind proj cts — i. ., th willin n ss of b nks to provid th n c ss r l ndin — d p nds on m n f ctors. B nks must ss ss th tr ck r cord of th d v lop r, th politic l nd r ul tor st bilit ov r th lif tim of th proj ct, risk lloc tion nd risk m n m nt, nd th busin ss c s of th proj ct. Som of th m in risks ff ctin th b nk bilit of proj cts r lik l to includ : ■ Environm nt l nd soci l risks. Th m jorit of pot nti l sit s in Sri L nk h v not bl E&S s nsitiviti s. An ESIA which m ts int rn tion l l nd rs’ r quir m nts will h lp to id ntif nd miti t this risk. ■ Grid conn ction r m nt. Conn ction of n r tion t this sc l will b t chnic ll ch ll n in for Sri L nk ’s rid. Suffici nt provisions will b r quir d to ddr ss th risk of conn ction v il bilit nd st blish ppropri t comp ns tor m ch nisms. ■ Pow r purch s r m nt (PPA). A lon -t rm PPA will b r quir d to provid r v nu c rt int . Th PPA’s t rms, sp ci ll comp ns tion for curt ilm nt, will b critic l to th b nk bilit of th proj ct. Th PPA’s t rms will n d to r co ni th diff r nc s b tw n offshor wind nd oth r n r tors. ■ Offt k r cr ditworthin ss. L nd rs will n d confid nc in th offt k r’s bilit to cov r its p m nt li biliti s ov r th lif tim of th PPA. Gov rnm nt b ckstoppin to u r nt th PPA is lik l to b r quir d. ■ Politic l risk. L nd rs will inv sti t th lik lihood nd implic tions of polic , r ul tor , nd contr ctu l m ndm nts th t could b m d b futur ov rnm nts nd wh th r th t could imp ct th proj ct’s xp ct d r v nu s. Insur nc m n b r quir d to cov r this risk. ■ Exch n r t . Th futur xch n r t of th Sri L nk n rup is unknown, nd its vol tilit will imp ct r v nu s to s rvic for i n d bt unl ss suffici ntl miti t d throu h som form of h d in or oth r instrum nt. Giv n th r c nt curr nc d v lu tion, this will b m jor consid r tion. S s ction 3.6 nd 4.5 of th K F ctors r port [17] for furth r discussion on th b nk bilit of offt k r m nts nd th fin ncin of offshor wind in m r in m rk ts. 9.2.1 D v lop r Tr ck R cord Offshor wind is m ssiv und rt kin . Th compl xit nd sc l of offshor wind proj cts is not comp r bl to onshor wind. Althou h Sri L nk h s s n sur in r n w bl n r proj cts, th sc l for wind pow r proj cts r m ins sm ll in th 5-10MW r n xc pt for th r c ntl commission d 100MW M nn r wind f rm. For l r sc l offshor proj cts of 500MW or mor , it will b n c ss r to brin in xp ri nc d int rn tion l d v lop rs for th first p thfind r proj cts. This will r duc risk, l din to low r costs nd hi h r lik lihood th t th first proj cts will b succ ssfull d liv r d. Ov r tim , coll bor tion b tw n int rn tion l nd n tion l d v lop rs will hop full tr nsf r th n c ss r knowl d nd xp ri nc to th loc l d v lop rs. Th tr ck r cord of th d v lop r m lso h v dir ct imp ct on th cost of c pit l. Th cost of c pit l — most not bl th int r st on lo ns — will d p nd on th l nd rs’ ss ssm nt of th risk of th proj ct. Th d v lop r’s bilit to m n th risks nd c rr th proj ct to succ ss is m jor v lu tion crit rion for th l nd rs. 9 Fin nci l nd Economic An l sis 90 Th r is limit d numb r of c p bl , xp ri nc d int rn tion l offshor wind d v lop rs nd, s m n n w offshor wind m rk ts b in to m r round th world, Sri L nk will b in comp tition with m n oth r offshor m rk ts for th tt ntion of th int rn tion l d v lop rs. Sri L nk should st blish its lf s n ttr ctiv opportunit b cl rl st tin its lon -t rm futur vision for offshor wind nd providin st bl , cl r, nd robust r ul tor fr m work to d liv r th t vision. 9.2.2 Politic l nd R ul tor St bilit Th t nor on lo ns for offshor wind r t pic ll mor th n t n rs nd oft n upw rds of 15 rs or mor . This kind of lon -t rm xposur d m nds c r ful x min tion of th politic l nd r ul tor st bilit in Sri L nk . Accordin to f db ck from st k hold rs, th xpr ss d commitm nt nd support of th Sri L nk n ov rnm nt to offshor wind is vit l for succ ss. This support com s in th form of tr nsp r nt r ul tion, cl r p rmittin proc dur s, nd fundin . Public fundin h s dir ct imp ct on th busin ss c s of offshor wind proj cts. It must b xp ct d th t th first offshor wind proj cts in Sri L nk will r quir subst nti l public subsid nd support to provid th n c ss r r turns to ttr ct fin ncin . A l ck of cl r politic l commitm nt to r son bl fundin sch m c n h lt th d v lopm nt of offshor wind t v r rl st , so it is import nt for commitm nt to b nnounc d rl to incr s th industr ’s confid nc . Th pot nti l risk of m jor r v rs ls of polic must lso b consid r d for proj cts sp nnin d c d s. It is r son bl for inv stors nd l nd rs to do n in-d pth ss ssm nt of th st bilit nd commitm nt of th Sri L nk n ov rnm nt to offshor wind — not onl in t rms of fundin , but lso in t rms of p rmittin nd lic ns s. 9.2.3 L ndin C p cit of Loc l B nks Loc l b nks h v xp ri nc with proj ct fin nc throu h num rous sm ll r r n w bl n r proj cts in Sri L nk Th s b nks h v built f mili rit with th sp cific risks nd unc rt inti s involv d in r n w bl n r d v lopm nt in Sri L nk . How v r, th l r r sc l nd compl xit nd lon tim fr m of offshor wind will b ch ll n for th loc l b nks. As m ntion d pr viousl , th t nor on lo ns for offshor wind r t pic ll mor th n t n rs nd oft n upw rds of 15 rs or mor . It must b not d how v r, th t loc l b nks in Sri L nk will lik l b un bl to provid lo n t nors in xc ss of i ht rs, nd to provid lo ns on th sc l ssoci t d with offshor wind d v lopm nt. In ddition, th int r st on d bt in loc l b nks is hi h — clos to 18 p rc nt in som c s s. This m k s it difficult to int r t loc l b nks in th l ndin structur for offshor wind proj cts. Int r tin loc l b nks in th fin ncin of offshor wind is import nt not onl to th sp cific offshor wind proj ct, but lso s w to d v lop th loc l fin nci l s ctor to t k n incr sin st k in futur offshor d v lopm nt. Thus, solutions must b d v lop d to support th loc l b nks nd nh nc th ir c p biliti s in t rms of providin lon r t nors nd low r int r st r t s. St k hold r f db ck from loc l b nks su st th t th r v r int r st d in coll bor tion with int rn tion l d v lopm nt b nks th t c n provid u r nt s nd fundin support to h lp th loc l b nks. 91 Offshor Wind Ro dm p for Sri L nk 9.2.4 Int rn tion l L nd rs’ E&S R quir m nts B for committin to n inv stm nt, both conc ssion r fin nc provid rs nd comm rci l proj ct fin nc l nd rs will c rr out du dili nc on proj ct’s compli nc with nvironm nt l nd soci l p rform nc st nd rds. Th Int rn tion l Fin nc Corpor tion’s (IFC) p rform nc st nd rds (PS) r quir proj cts to m t minimum r quir m nts in r sp ct of biodiv rsit prot ction (PS6) nd cultur l h rit (PS8). IFC PS1 r quir s th ss ssm nt of th s nd oth r issu s throu h Environm nt l nd Soci l Imp ct Ass ssm nt (ESIA) to Good Int rn tion l Industr Pr ctic (GIIP) nd communit n m nt. Simil r provisions ppl to most priv t s ctor provid rs of fin nc , ith r throu h propri t r st nd rds or throu h th pplic tion of th Equ tor principl s. F ilur to m t th s st nd rds m l v proj cts with f w r fin ncin options or pr clud inv stm nt lto th r. Buildin th s p rform nc st nd rds into th r ul tor fr m work for offshor wind is th r for lik l to improv th b nk bilit of proj cts, s w ll s d liv rin incr s d nvironm nt l nd soci l b n fits whil voidin si nific nt h rm. 9.2.5 Busin ss C s Th m in driv r for b nk bilit on sp cific proj ct will lw s b th busin ss c s . A w ll- docum nt d f sibilit stud th t d monstr t s suffici nt c sh flow to s rvic d bt nd provid divid nds to quit is must. Amon th m n unknowns in 25- to 30- r busin ss c s , f w st nd out: th wind r sourc nd th cost of c pit l. Th wind r sourc in Sri L nk is ood, providin c p cit f ctors bov 45 p rc nt in s v r l r s. Thus, th wind r sourc is cl rl suffici nt for offshor wind. Th m in cost driv rs for offshor wind in Sri L nk r r th r th CAPEX nd th cost of c pit l. Th cost of c pit l in Sri L nk is quit hi h. St k hold r f db ck su sts th t int r st r t s on lo ns in Sri L nk n rup s could run s hi h s 15 p rc nt. Add to th t th f ct th t Sri L nk n b nks will lik l b un bl to provid lo ns on th sc l nd with th t nor n d d for offshor wind. Th lt rn tiv is fin ncin in US$ or EUR throu h int rn tion l fin nci l institutions. This could provid si nific ntl low r cost of c pit l, but t th s m tim incr s th proj ct’s xposur to xch n r t risk. M n in th xch n r t risk will b c ntr l to n offshor wind proj ct in Sri L nk in th for s bl futur . Th xch n r t risk is oft n split b tw n offt k r nd d v lop r throu h combin tion of s v r l str t i s. On str t is ind xin of th PPA t riff, which will ll vi t som of th d v lop r’s/IPP’s xposur to th loc l curr nc . Anoth r str t is for th int rn tion l fin nci l institutions to t k som of th risk, b providin lo ns in th loc l curr nc t r ssiv r t s. For offshor wind, th m jorit of for i n curr nc d nomin t d cost is nticip t d to b in upfront c pit l cost, ssoci t d with th import of turbin s nd b l nc of pl nt, nd on oin d bt r p m nts. From th op r tion l p rsp ctiv , on oin op r tin costs r unlik l to r quir m t ri l for i n curr nc d nomin t d input. Th r is opportunit for loc l d v lop rs to minimi for i n xch n risk throu h nt rin into h d in rr n m nts, such s for i n xch n sw ps for th op r tin costs. 9 Fin nci l nd Economic An l sis 92 How v r, s th fin ncin cost nd d bt r p m nt will b in for i n curr nci s, th r would still b n d for for i n curr nc v il bilit to th proj ct op r tors throu h th proj ct lif tim . Th CAPEX of offshor wind proj cts is clos l link d to th bilit of th loc l industr to suppl loc ll m nuf ctur d p rts nd provid skill d l bor. Th first offshor proj cts in n m r in m rk t r t pic ll domin t d b import of m t ri ls nd xp rtis . Ov r tim , th coll bor tion b tw n int rn tion l d v lop rs nd loc l ntr pr n urs will tr nsf r knowl d nd h lp st blish loc l m nuf cturin . A politic l commitm nt to pip lin of offshor wind proj cts will lso provid th pl nnin hori on n d d for loc l industr to inv st in th offshor suppl ch in. Th LCOE stim t s pr s nt d in s ction 9.1 r b s d on limit d involv m nt from loc l industr . 9.3 EMPLOYMENT AND ECONOMIC BENEFIT Th c lcul tion of th mplo m nt ff cts is b s d on L onti f multipli rs62, tot l production output, nd nnu l mplo m nt d t b conomic ctivit . Th mplo m nt nd inv stm nt ff cts c n b split into two: dir ct nd indir ct imp ct. Th dir ct ff ct is th incr s d ctivit , cr t d b th inv stm nt its lf. This will includ t sks such s d v lopm nt, sup rvision, inst ll tion, nd construction work. Th indir ct mplo m nt ff ct is th incr s d d m nd for l bor, which occurs s r sult of procurin oods nd s rvic s, nd th ff ct this h s with th suppli r. Th mplo m nt ff cts r m sur d in full-tim quiv l nt (FTE) rs, which corr sponds to on individu l workin full tim for r. Th input-output t bl s [51] splits Sri L nk ’s conom into 34 s ctors, nd th L onti f multipli rs r c lcul t d on b sis of th s input-output t bl s. To us th L onti f multipli rs to ss ss th imp ct of n inv stm nt, th inv stm nt must b link d to sp cific s ctor [52]. Offshor wind proj cts r l r nd compl x proj cts t pic ll sp nnin s v r l k s ctors such s construction, m nuf cturin , nd m rin tr nsport. This ff ct is chi v d b cr tin w i ht d v r of th r l v nt s ctors b s d on th xp ct d contribution from Sri L nk n s ctors nd th suppl ch in stud in s ction 13. Th stim t d w i hts r provid d in T bl 9.2. TABLE 9.2: WEIGHTED SECTORS FOR THE INVESTMENTS. Activit S ctor W i hts Construction: 85% Offshor wind construction Tr nsport tion nd stor : 10% M nuf cturin : 5% Construction: 60% Offshor wind O&M Tr nsport tion nd stor : 40% M nuf cturin : 0% Th cost stim t s for r pr s nt tiv 500MW of offshor wind nd its ssoci t d O&M r th s m s thos us d for th LCOE stim tion. Th s stim t s r lso ssum d to b simil r for 1GW nd 2GW of offshor wind. Ov r tim nd in lin with th l rnin r t s ppli d in s ction 9.1.1, th cost of offshor wind is xp ct d to f ll. Th tot l construction nd op r tion nd m int n nc cost stim t s r provid d in T bl 9.3. 62 M thod d v lop d b W ssil L onti f, to stim t th imp ct of n incr s in production in on s ctor on ll oth r s ctors in th conom . Th m thod is b s d on d t il d input output t bl s from n tion l ccounts st tistics nd stim t s const nt f ctor b which incr s d ctivit in on s ctor imp cts th whol conom . Th s f ctors or “multipli rs” t pic ll h v v lu s in th r n 1.5-2 impl in th t . ., 1 mUSD inv stm nt in sp cific s ctor will incr s th tot l ctivit in th conom b 1.5 to 2mUSD. 93 Offshor Wind Ro dm p for Sri L nk TABLE 9.3: TOTAL LIFETIME, DIRECT INVESTMENT NEEDED DEPENDING ON TOTAL INSTALLED CAPACITY IN SRI LANKA. Tot l Lif tim Exp nditur Activit Sc n rio nd Y r (US$ million) Construction, O&M of 500MW of offshor wind LG 2030 2,500 (25- r lif tim ) Construction, O&M of 1GW of offshor wind HG 2030 5,000 (25- r lif tim ) Construction, O&M of 1GW of offshor wind LG 2040 4,745 (25- r lif tim ) Construction, O&M of 2GW of offshor wind LG 2050 9,075 (25- r lif tim ) Construction, O&M of 2.5GW of offshor wind HG 2040 9,569 (25- r lif tim ) Construction, O&M of 4GW of offshor wind HG 2050 15,104 (25- r lif tim ) A k sourc of unc rt int in th stim tion of th conomic imp cts of offshor wind d v lopm nt is th sh r of th ctivit which is xp ct d to b d liv r d b loc l nt rpris s. Althou h Sri L nk h s xp ri nc with onshor wind nd r n w bl n r d v lopm nt in n r l, th sc l nd compl xit of offshor wind is n w t rritor . St k hold r f db ck su sts th t consid r bl int rn tion l xp rtis , m nuf cturin , nd l bor would b n d d for th first offshor proj cts. Th loc l cont nt is xp ct d to incr s , s Sri L nk n industr ins xp ri nc with offshor wind d v lopm nt. On th O&M sid , loc l cont nt is xp ct d to b much hi h r, s th ctiviti s r distribut d ov r m n rs llowin xt nsiv us of on-th -job tr inin nd tr nsf r of xp rtis . Th ssumptions on loc l cont nt r summ ris d in T bl 9.4. Th p rc nt s shown in th t bl indic t th xp ct d v r loc l cont nt of th ntir inv stm nt n d d to r ch th tot l inst ll d c p cit in th l ftmost column. Th loc l cont nt is prim ril xp ct d to b in th form of l bor. Th p rc nt s r pur l b s d on qu lit tiv f db ck nd should b consid r d v r unc rt in nd onl indic tiv . 9 Fin nci l nd Economic An l sis 94 TABLE 9.4: LOCAL CONTENT SHARE OF THE CONSTRUCTION AND O&M OF AN OWF. % of CAPEX % of OPEX Activit Sp nt Loc ll Sp nt Loc ll 250MW of offshor wind 5% 20% 500MW of offshor wind 10% 20% 1GW of offshor wind 10% 25% 2GW of offshor wind 15% 25% 2.5GW of offshor wind 15% 30% 4GW of offshor wind 20% 30% As th offshor wind pip lin nd th inst ll d c p cit in Sri L nk rows, th sh r of loc l cont nt c n b xp ct d to row. As mor loc l knowl d nd xp rtis is ccumul t d, th r will b l ss n d for int rn tion l support for th d v lopm nt nd construction of proj cts. Th cumul tiv imp ct on Gross V lu Add d (GVA) from inv stm nts in offshor wind is illustr t d in Fi ur 9.3. Th ch rt shows th imp ct on GVA from offshor wind proj cts ov r th ir lif tim sort d b th xp ct d tim of commissionin . Th two rowth sc n rios in this ro dm p consid r 0.5 to 1GW offshor wind c p cit could b commission d b 2030. Durin construction nd ov r 25 rs of op r tion th s proj cts could n r t b tw n US$570-1,330 million US$ in GVA in Sri L nk . FIGURE 9.3: CUMULATIVE LIFETIME GVA FROM OFFSHORE WIND INVESTMENTS. 6,000 5,000 4,000 mUSD 3,000 2,000 1,000 0 2020-2030 2030-2040 2040-2050 Low Growth scenario High Growth scenario Not : Th b rs show th tot l lif tim imp ct of proj cts commission d in iv n d c d , i. ., construction plus 25 rs of op r tion. 95 Offshor Wind Ro dm p for Sri L nk Th tot l imp ct on Sri L nk n GVA from construction of 500MW of offshor wind nd O&M th sit is xp ct d to b pproxim t l US$570 million ov r 25 rs, of which US$380 million is th dir ct inv stm nt (i. ., CAPEX nd OPEX) nd US$190 million is th xp ct d indir ct inv stm nt63 ( ctivit in oth r s ctors s r sult of th ctivit s t in motion b th dir ct inv stm nt). Th indir ct ctivit is d t rmin d b th countr sp cific L onti f multipli rs. T bl 9.5 shows th imp ct on th GVA in 2030 in th low rowth nd hi h rowth sc n rios. Th pplic tion of input-output multipli rs impli s lin r r l tion b tw n inst ll d c p cit nd GVA imp ct. This lin r conn ction is r son bl pproxim tion in th short t rm. In th lon t rm, cost r ductions, l rnin curv s, nd productivit ins will lik l r sult in d clinin m r in l GVA imp ct p r MW inst ll d c p cit . Simpl put, ch MW of ddition l c p cit b com s ch p r th n th pr vious MW, r ducin th imp ct on GVA nd mplo m nt. TABLE 9.5: IMPACT ON DOMESTIC GVA IN 2030. Dir ct Inv stm nt Indir ct Inv stm nt Tot l Imp ct on GVA (US$ million) (US$ million) (US$ million) Low Growth sc n rio 380 190 570 (500MW) Hi h Growth 880 450 1,330 sc n rio (1GW) Th tot l loc l mplo m nt ff ct from inv stin in nd op r tin nd m int inin 500MW of offshor wind is stim t d to b lmost 25,000 FTE ov r th lif tim of th proj ct. This includ s both dir ct nd indir ct ff cts (s Fi ur 9.4). This ch rt is structur d in th s m w s for GVA, i. ., it shows th tot l lif tim imp ct of proj cts commission d in iv n d c d . FIGURE 9.4: ACCUMULATED LOCAL EMPLOYMENT EFFECTS FROM OFFSHORE WIND INVESTMENT. 300,000 250,000 200,000 FTE years 150,000 100,000 50,000 0 2020-2030 2030-2040 2040-2050 Low Growth scenario High Growth scenario 63 Th indir ct ff ct is th incr s d d m nd for oods nd l bor, which occurs s r sult of procurin oods nd s rvic s, nd th ff ct this h s with th suppli r. 9 Fin nci l nd Economic An l sis 96 Not : Th b rs show th tot l lif tim imp ct of proj cts commission d in iv n d c d , . ., construction plus 25 rs of op r tion. In t rms of loc l v lu cr tion, th r is l r diff r nc b tw n CAPEX nd OPEX. Whil th construction of th OWF will t k pl c within short tim fr m , O&M is sp c d out ov r 25 rs. Thus, th f w r full-tim mplo s will b n d d to d liv r th FTEs from O&M comp r d to construction. Th r sults on loc l FTEs r summ ris d in T bl 9.6. TABLE 9.6: LOCAL EMPLOYMENT EFFECT FROM OFFSHORE WIND INVESTMENT. Dir ct FTE Indir ct FTE Tot l FTE Low Growth sc n rio (500MW) 15,600 9,100 24,700 Hi h Growth sc n rio (1GW) 36,200 21,400 57,600 Offshor wind r quir s consid r bl input of l bor. Inst llin th first 500MW offshor wind in Sri L nk will r quir pproxim t l 24,700 FTE rs of l bor input. How this qu t s to jobs d p nds on th tim fr m of th proj ct. Durin construction of th first 500MW offshor wind, Sri L nk is xp ct d to d liv r pproxim t l 5,600 FTEs ov r th sp n of th construction ph s , stim t d t fiv rs. Th t qu t s to rou hl 1,100 full tim jobs. Durin O&M of th 500MW, Sri L nk is xp ct d to d liv r pproxim t l 9,900 FTEs ov r th sp n of 25 rs. This corr sponds to lmost 400 full tim jobs. On top of th dir ct mplo m nt from th construction nd O&M com s th indir ct mplo m nt in oth r s ctors. Th indir ct imp ct is on simil r sc l s th dir ct imp ct. 97 Offshor Wind Ro dm p for Sri L nk 10 HEALTH AND SAFETY Sinc th b innin , th offshor wind industr h d to d l with v rious h lth nd s f t (H&S) ch ll n s. Th suppl ch in of th offshor wind industr : m nuf cturin , sitin , tr nsport, construction, nd m int n nc — is diff r nt from thos of oth r industri s in ch st p. Ch ll n s in m nuf cturin nd tr nsport ris from th normous w i ht nd si of th diff r nt compon nts. Durin sitin , tr nsport, nd construction, th r mot loc tion of th sit s t op n s with xtr m nd r pidl ch n in w th r conditions is th m in diff r nc to oth r industri s. Th normit of th pl nts nd th uniqu nvironm nt l conditions on th on h nd, nd th r c nt form tion of th offshor wind industr on th oth r h nd r mon th r sons for th on oin d v lopm nt of sp cific offshor wind H&S uid lin s. Offshor wind f rm construction nd op r tions pos si nific nt H&S risks for (contr ctor) p rsonn l nd should lw s b h ndl d with r t c r to cr t s f workin nvironm nt. 10.1 HEALTH AND SAFETY RISKS H&S risks compris h rds nd ctiviti s/op r tions with pot nti l for d n rous situ tions. A h rd is situ tion or n ctivit with th pot nti l to h rm p opl , nvironm nt, or prop rt . R rdin offshor wind proj cts, x mpl s of th most r l v nt h rds nd d n rous ctiviti s/ op r tions r list d in T bl 10.1. TABLE 10.1: EXAMPLE HAZARDS AND DANGEROUS ACTIVITIES IN OFFSHORE WIND PROJECTS [53]. H rds Activiti s & Op r tions WTG cc ss/ r ss Tr nsit b ir/s Workin t h i ht Routin /corr ctiv m int n nc El ctric l xposur Lift/cr n op r tions Confin d sp c s Pilin nd routin R mot workin C bl l in M nu l h ndlin Subs op r tions Th ctiviti s und rt k n durin th construction nd op r tion l ph s s of n OWF will subj ct th work forc to r n of risks which will diff r d p ndin on ch individu l’s rol . As r sult, it is import nt to und rst nd wh t th s risks r , nd ss ss ch on so th t th c n b minimi d, or id ll , compl t l limin t d. Risks r t pic ll ss ss d in two dim nsions: firstl , th prob bilit of occurr nc nd s condl , th s v rit of th ssoci t d h rd. Th prob bilit qu ntifi s th lik lihood of h rd occurrin wh r s th s v rit is m sur of th mount of d m or h rm h rd could cr t . 98 Risk ss ssm nt involv s s qu nc of ctions to tr c nd v lu t th risks ssoci t d with th x cution of t sk. It r quir s th w r n ss of ll possibl v nts nd th d t il d knowl d of ch st p of th proc ss. Th r sult of th risk ss ssm nt is usu ll divid d into thr risk c t ori s: low, m dium, nd hi h. A low risk do s not r quir imm di t ction. How v r, hi h risk should not b cc pt d b th mplo r nd should r sult in th impl m nt tion of n lt rn tiv m thod to r duc th risk to n cc pt bl l v l. Risk ss ssm nt is n instrum nt th t h lps to id ntif h rds nd indic t s how to d l with thos . An x mpl of simplifi d T sk Risk Ass ssm nt is pr s nt d in T bl 10.2. TABLE 10.2: TASK RISK ASSESSMENT. Prob bilit of Occur nc 1 A B C D E 2 LOW LOW LOW LOW MED 3 LOW LOW LOW MED HIGH S v rit 4 LOW LOW MED HIGH HIGH 5 LOW MED HIGH HIGH HIGH 6 MED HIGH HIGH HIGH HIGH Prob bilit of Occur nc S v rit Risk A V r unlik l to occur 1 N li ibl No imm di t ction r quir d, LOW B Unlik l to occur 2 Mod r t proc d with c r R vi w & impl m nt C Mi ht occur 3 S rious MEDIUM pr v ntiv m sur s D Lik l to occur 4 M jor Un cc pt bl ; HIGH E Will prob bl occur 5 C t strophic find lt rn tiv m thod Th risk ss ssm nt proc ss is usu ll follow d b risk r duction proc ss, in which prot ctiv m sur s c n b impl m nt d to diminish or limin t th id ntifi d h rds. Th ss ssm nt nd r duction proc ss s c n b it r tiv , d p ndin on th tim nd ffort n d d to s t up n ppropri t s st m to d qu t l miti t sp cific risks. An x mpl of this proc ss is illustr t d in Fi ur 10.1. 99 Offshor Wind Ro dm p for Sri L nk FIGURE 10.1: EXAMPLE OF RISK ASSESSMENT AND RISK REDUCTION PROCESS (EUROPEAN STANDARD, 2018). START Risk Ass ssm nt ccordin to Cl us 5 D t rmin tion of th limits of th m chin r (s 5.3) H rd id ntific tion This it r tiv risk r duction proc ss sh ll b c rri d (s 5.4 nd Ann x B) out s p r t l for ch h rd, h rdoous situ tion, und r ch condition of us . YES Risk stim tion (s 5.5) Risk An l sis Risk v lu tion (s 5.6) Ar NO oth r h rds n r t d? H s th risk b n d qu t l YES Docum nt tion r duc d? ( d qu t (s Cl us 7) END risk r duction: s Cl us 6) NO At ch st p of th it r tiv proc ss; risk stim tion, C n th YES risk v lu tion nd, if pplic bl , risk comp rison. h rd b r mov d? St p 1 NO Is th Risk r duction b int nd d YES inh r ntl s f risk r duction C n d si n m sur s chi v d? th risk (s 6.2) b r duc d YES b inh r ntl s f d si n NO m sur s? NO St p 2 Risk r duction b C n th s f u rdin Is th risk b r duc d YES int nd d YES b u rds, Impl m nt tion of risk r duction prot ctiv complim nt r chi v d? d vic s? prot ctiv m sur s (s 6.3) NO NO St p 3 C n th Is th YES NO Risk r duction b int nd d YES limits b inform tion for us sp cifi d risk r duction (s 6.4) chi v d? in? NO Th first tim th qu stion is sk d, it is nsw r d b th r sult of th initi l risk ss ssm nt. 10 H lth nd S f t 100 10.2 INTERNATIONAL GUIDANCE Th followin t bl provid s n ov rvi w of int rn tion l or ni tions th t provid H&S uid lin s for th offshor wind s ctor. It includ s links to th most r l v nt onlin r sourc s. TABLE 10.3: OVERVIEW OF INTERNATIONAL GUIDANCE ON H&S IN OFFSHORE WIND. Or ni tion D scription Onlin R sourc s Th En r Institut do s not work on H&S uid lin s its lf but provid s n xt nsiv Institut Th En r d t b s of r sourc s in th fi ld of H&S in Th offshor wind coll ction provid s mor offshor wind proj cts. Th institut is b s d th n 100 uid nc docum nts [54]. in th UK nd coll bor t s with Th Crown Est t . EU-OSHA h s publish d f w r ports S f t nd H lth t Europ n A nc for includin uid lin s for th wind s ctor, Work (EU-OSHA) EU-OSHA is th Europ n Union inform tion nc for OHS. Its work contribut s to th includin : Europ n Commission’s Str t ic Fr m work • E-f ct 79: OHS in th wind n r for S f t nd H lth t work 2014-2020 nd s ctor [55] oth r r l v nt EU str t i s nd pro r ms, • OHS in th wind n r s ctor [56] such s Europ 2020. • E-f ct 80: H rd Id ntific tion Ch cklist: OHS risks in th wind n r s ctor [57] Th G+ h s d v lop d f w ood pr ctic Or nis tion (G+) (G+) is n int rn tion l ssoci tion b s d Glob l Offshor uid lin s nd h s publish d th s throu h in th Unit d Kin dom (UK) with th im Wind H&S th En r Institut . Th s uid lin s provid of cr tin nd d liv rin world cl ss H&S r comm nd tion for workin t h i ht in th uid lin s for th offshor wind industr . Th offshor wind industr , th m n m nt of ssoci tion h s 11 m mb rs which r ll sm ll s rvic v ss ls, offshor wind tr nsf r, Europ n utiliti s. nd offshor m r nc r spons [58]. Equ tor Principl s Associ tion Fin nc Corpor tion (IFC), nd World B nk, Int rn tion l Th G n r l WB/IFC EHS Guid lin s cont in inform tion on cross-cuttin nvironm nt l, Int rn tion l l nd rs providin fin ncin for h lth, nd s f t issu s pot nti ll infr structur proj cts pplic bl to ll industr s ctors [59]. This docum nt should b us d to th r with th r l v nt Wind Industr S ctor Guid lin s [60]. An influ nti l tr d ssoci tion with mor M rin Contr ctors Associ tion (IMCA) th n 900 m mb rs from th offshor Int rn tion l m rin construction industr worldwid . HSSE Guid nc nd T chnic l R ports c n b Th or ni tion provid s on of th most obt in d from th IMCA w bsit [61]. xt nsiv coll ctions of h lth nd s f t uid lin s for offshor proj cts in n r l, includin offshor wind but lso offshor oil nd s proj cts. WindEurop h s H&S Workin Group Form rl known s th Europ n Wind En r which ims to promot nd sh r H&S WindEurop Associ tion, which ctiv l promot s wind ctiviti s, b st pr ctic s, nd l ssons l rn d. pow r in Europ nd worldwid . It h s ov r Th occ sion ll publish uid lin s ( . ., 450 m mb rs ctiv in ov r 40 countri s. on m r nc rr n m nts includin first id) [62]. 101 Offshor Wind Ro dm p for Sri L nk A list of som int rn tion l st nd rds is lso provid d h r : EN 50308:2005 Wind Turbin s — Prot ctiv M sur s — R quir m nts for d si n, /EN 50308/ op r tion, nd m int n nc EN ISO 12100:2018 S f t of m chin r — G n r l principl s for d si n — /EN ISO 12100/ Risk Ass ssm nt nd risk r duction /ISO 31000/ ISO 31000:2018 Risk M n m nt — Guid lin s EN ISO 14122-1:2016 S f t of m chin r — P rm n nt m ns of cc ss to m chin r /EN ISO 14122-1/ — P rt I: Choic of fix d m ns nd n r l r quir m nts of cc ss EN ISO 14122-2:2016 S f t of m chin r — P rm n nt m ns of cc ss to m chin r /EN ISO 14122-2/ — P rt 2: Workin pl tforms nd w lkw s EN ISO 14122-3:2016 S f t of m chin r — P rm n nt m ns of cc ss to m chin r /EN ISO 14122-3/ — P rt 3: St irs, st pl dd rs, nd u rd-r ils EN ISO 14122-4:2016 S f t of m chin r — P rm n nt m ns of cc ss to m chin r /EN ISO 14122-4/ — P rt 4: Fix d l dd rs A bri f d scription of th most common H&S uid lin c t ori s is provid d h r . ■ Guid nc on th inv sti tion nd r portin of incid nts. D fin s th proc dur s nd form l r quir m nts in c s of n incid nt. It includ s r comm nd tions on int rvi win th p rsonn l, insp ctin th sit , nd filin nd m n in th coll ct d inform tion. It lso iv s x mpl s for n incid nt cl ssific tion sch m nd insur nc r portin . ■ M rin rol s for sm ll workbo ts. Aims to provid uid nc for th st ff of th offshor wind industr op r tin on sm ll workbo ts l ss th n 200 ross tonn s. Th uid nc consid rs th sp ci l r quir m nts nd r s of comp t nc of th op r tion of thos sm ll si d v ss ls. It must b und rstood s fr m work which should b ppli d with r rd to loc l r quir m nts. ■ Risk ss ssm nt. Provid s r comm nd tions for th continuous miti tion nd controllin of risks in th offshor work nvironm nt. It hi hli hts th import nc of communic tin inform tion bout h rds to r duc injuri s of work rs or d m s of th quipm nt. Th ss ssm nt c n b conduct d vi writt n docum nt or with th h lp of toolbox m tin nd cov rs wid v ri t of r s within th offshor op r tion. ■ S f liftin . S ts th uid lin s for liftin jobs in th m rin nvironm nt. As th r cruci l p rt of offshor op r tions, th docum nt l s out rul s for quipm nt, m int n nc , nd s f op r tion. B sid s th th or tic l b ck round, s f proc din lso r quir s xp ri nc nd pr ctic . ■ Toolbox t lks. A uid lin th t iv s r comm nd tions for th ph s ri ht b for und rt kin th ctu l job on th proj ct sit . A roup t lkin with focus on th t sks of ch t m m mb r m ximi s th ff ctiv n ss nd r duc s th risk of ccid nts or d l s durin th op r tion. Th c n t k pl c on r ul r b sis or t shift ch n nd should follow th four b sic r quir m nts of timin , tt nd nc , obs rv tion, nd knowl d . ■ Workin t h i ht. A uid lin initi ll d v lop d for th offshor oil nd s industr to r duc th numb r of work- t-h i ht ccid nts. B sid s th discussion of h rds nd r comm nd tions for workin on l dd r, workin on sc ffolds, workin on pl tforms or n r n op n hol , th sp cific sp cts of workin in th offshor wind industr w r dd d in th uid lin of th G+; for x mpl , cc ss nd r ss, or tr nsf r b tw n v ss ls. 10 H lth nd S f t 102 10.3 BEHAVIORAL SAFETY As st t d in [27] nd [29] b h vior l s f t cov rs ll non-t chnic l sp cts of s f t nd d t rmin s how work is ctu ll und rt k n, which som tim s diff rs from how work is xp ct d to b und rt k n. An l sis of incid nt d t shows th t b h vior l f ilur s r th most common imm di t c us for incid nts. This und rst ndin h s s rv d s b sis for focussin on s f b h vior in diff r nt industri s. S f b h vior b individu ls is d fin d b th s f t cultur in n or ni tion. Som of th k f ctors imp ctin th s f t cultur r : ■ M n m nt support nd involv m nt in s f t ■ M n m nt st l ■ Visibl m n m nt ■ Good communic tion t ll l v ls of n or ni tion ■ Strikin th b l nc b tw n diff r nt t p s of o ls — . ., s f t o ls nd production o ls Th m n m nt pl s k rol in d finin nd l din th s f t cultur within n or ni tion. Workin with b h vior l s f t will r quir m ppin of th pr s nt st t in n or ni tion nd how mplo s ct t ll l v ls in r l tion to s f t . Th m ppin c n includ v lu tion of routin s, proc dur s, nd ttitud s tow rds s f t . D p ndin on th r sult of th m ppin , sp cific miti tin ctions c n b t k n to ch n th b h vior if n d d. Th focus in ch n in b h vior should b on th d sir d s f b h vior nd workin with b rri rs to t th r . It must b str ss d th t ch n in b h vior r quir s involv m nt from ll l v ls of th or ni tion, s w ll s stron H&S l d rship. 10.4 GWO TRAINING GWO h s introduc d s t of tr inin st nd rds for workin within th offshor wind industr . GWO tr inin st nd rds r cours s th t t ch to und rst nd nd r duc th risk ssoci t d with s f t h rds in th wind industr . Th tr inin st nd rds compris th followin : ■ B sic s f t tr inin st nd rd ■ Lift us r tr inin st nd rd ■ B sic t chnic l tr inin st nd rd ■ Adv nc d r scu tr inin st nd rd ■ Enh nc d first id tr inin st nd rd ■ Bl d r p ir tr inin st nd rd ■ Slin r si n ll r/ri r p rson tr inin st nd rd 103 Offshor Wind Ro dm p for Sri L nk A full ov rvi w of th st nd rds nd th cont nt is v il bl t th GWO w bp : GWO Tr inin St nd rds ( lob lwinds f t .or ). Upon compl tion of th GWO B sic S f t Tr inin (BST) S Surviv l, p opl will b tr in d to work on offshor wind inst ll tions, . ., WTGs, construction v ss ls, ccommod tion pl tforms, tr nsform r st tions, tc. Th will l rn p rson l surviv l t chniqu s nd m thods of s f tr nsf r b tw n v ss ls nd inst ll tions. Curr ntl , th r r no comp ni s off rin GWO cours s in Sri L nk . How v r, Indi holds s v r l comp ni s providin c rtifi d tr inin . 10.5 OFFSHORE H&S IN SRI LANKA As th offshor wind s ctor h s not t k n off t in Sri L nk , th r is no sp cific r ul tion in pl c for offshor wind ctiviti s. Th ov r ll polic ov rnin h lth nd s f t in Sri L nk is “Th N tion l Occup tion l H lth nd S f t Polic ” [63]. Curr ntl , onl uid lin s for oph sic l, olo ic l, nd ot chnic l pro r ms r l t d to offshor xplor tion ctiviti s, h v b n publish d. H lth nd s f t r quir m nts which should b fulfill d b such pro r ms r bri fl d scrib d in th s uid lin s [64]. Th N tion l Institut of Occup tion l S f t nd H lth (NIOSH) und r th Ministr of L bour nd Tr d Union is r sponsibl for th ov r ll or ni tion of H&S r l t d fr m works nd ctiviti s t th f d r l l v l in Sri L nk . Th ir scop of work includ s dvisin th ov rnm nt in formul tin n tion l polici s on occup tion l H&S, d finin m sur s for pr v ntin ccid nts, x cutin nd ssistin in surv s, inv sti tions nd r s rch in H&S, or ni in s min rs nd workshops in th topic, nd st blishin n tion l st nd rds, mon oth rs. Furth rmor , th Sri L nk n ov rnm nt is curr ntl s kin for improv m nts on its Monitorin , Control nd Surv ill nc (MCS) s st m, m inl imi d t ddr ssin issu s in its m rin fish r s ctor. In this r rd, s s f t is p rc iv d s insuffici ntl consid r d in th countr . Th d v lopm nt of this s st m nd th focus on st blishin m sur s to ddr ss s s f t , lthou h initi ll focus d on fishin ctiviti s, would cons qu ntl brin uid nc to th offshor wind s ctor s w ll. B s d on th d t nd findin s from th MCS, NIOSH is fund m nt l in providin som outlin nd r ul tion for H&S r quir m nts for offshor wind, such s r quir m nts for H&S or ni tion, risk ss ssm nt, control, m sur m nt, nd docum nt tion, s w ll s insp ctions. Throu h th pl nnin of futur xplor tion nd xtr ction of offshor h droc rbons, PDASL nd oth r ov rnm nt ntiti s r d v lopin n w h lth nd s f t r ul tions. It is xp ct d th t th s will b l r l b s d on th principl s mplo d in th UK nd Norw , nd th t som of th s r ul tions will b pplic bl to offshor wind ctiviti s. This initi tiv could b n fit th d v lopm nt of offshor wind s it would h lp to duc t r ul tors ( nd loc l work rs) on th risks ssoci t d with th offshor nvironm nt, s w ll s mph si in th import nc of s f t whil workin offshor . 10 H lth nd S f t 104 11 GRID INFRASTRUCTURE Conn ction to th l ctric l tr nsmission rid is n ss nti l n bl r for offshor wind f rms, how v r rid conn ction c n pr s nt som ch ll n s. This s ction r vi ws th n r l c p cit of th Sri L nk n rid to bsorb l ctricit from offshor wind f rms nd opin s on n c ss r m sur s to n bl th ir rid conn ction. G n r ll , int r tin rowin proportion of r n w bl n r sourc s into th l ctric l tr nsmission s st m m b ch ll n in for v ri t of r sons. Most r n w bl n r sourc s such s wind r v ri bl , nd th n r output d p nds on th r sourc qu lit d t rmin d b w th r conditions nd th tim of d nd r. Th incr sin sh r of VRE in th pow r s st m c n th r for m k pow r b l ncin nd pow r rid control mor ch ll n in . Fl xibilit in th n r tion mix in t rms of r ul tion of pow r production is to b introduc d nd provid d, both from t chnic l nd comm rci l p rsp ctiv . Th l ctric l n r tion/tr nsmission s st m of Sri L nk is n isl nd n twork with no curr nt int rconn ctions to oth r countri s. It h s compl x mix of prim r n r sourc s ( s, h dro, co l, oil, onshor wind, nd sol r) loc t d m inl on th c ntr l w st co st nd in th c nt r of th countr . In 2020, pproxim t l 2GW r n w bl n r n r tion c p cit w s op r tin in Sri L nk , includin pproxim t l 1.8GW of h dro pow r [65]. With h dro pow r b in non-v ri bl , th r m inin VRE sourc s (wind nd sol r) compris d pproxim t l 0.2GW of th tot l n r tion c p cit in Sri L nk . 11.1 EXISTING POWER SYSTEM In 2020, th tot l inst ll d pow r n r tin c p cit in Sri L nk w s pproxim t l 4.3GW [66]. Approxim t l 48 p rc nt of this is r n w bl n r n r tion, pr domin ntl h dro pow r but with wind nd sol r xp ct d to incr s r pidl , ccordin to th lon -t rm n r tion xp nsion pl n. 105 11.1.1 G n r tion Th xistin pow r n r tin pl nts (th rm l nd h dro) in Sri L nk r shown in Fi ur 11.1. FIGURE 11.1: MAP OF SRI LANKA GENERATION PLANT AND THE TRANSMISSION SYSTEM [66]. 11 Grid Infr structur 106 Most th rm l pow r pl nts r loc t d clos to th l r d m nd c nt r of Colombo, which is lso du to Colombo port b in bl to h ndl th import of fu l. M n of th h dropow r pl nts r in th c ntr l r ion of Sri L nk in th hill r s, ccommod tin coll ction of w t r in l r r r s rvoirs. Th north rn p rt of Sri L nk h s v r f w pow r pl nts, which is du to th r l tiv l low lo d d m nd in this p rt of th countr . 11.1.2 Tr nsmission Th Sri L nk n tr nsmission s st m is op r t d b C lon El ctricit Bo rd (CEB). Th CEB tr nsmission s st m curr ntl compris s of 220kV nd 132kV tr nsmission n twork int rconn ct d with switchin st tions, rid subst tions, nd pow r st tions. Th tr nsmission s st m compris s of 3,090km of tr nsmission lin s (includin UG HV c bl ) nd 75HV subst tions. Of th tot l l n th, th m jorit op r t s t 132kV ( pproxim t l 76 p rc nt), wh r s th r m inin pproxim t l 24 p rc nt, op r t s t 220kV. For th tr nsmission n twork, Fi ur 11-1 pr s nts th loc tions nd distribution of tr nsmission lin s t v rious volt l v ls (220kV, 132kV). Addition ll , it lso shows th t th tr nsmission n twork is most d ns in th c nt r nd southw st corn r of th isl nd. In th north nd st r ions, th d nsit of th tr nsmission n twork is limit d, m inl du to low lo d d m nd. B sic ll , nd n tur ll , th tr nsmission s st m r fl cts th loc tion of n r tion c p cit s d scrib d in s ction 11.1.1. Ov r th comin rs, Sri L nk will look to r pl c th rm l pl nts du for r tir m nt nd introduc mor VRE into th tr nsmission s st m. This, combin d with n v r-incr sin d m nd for l ctricit , m ns th t Sri L nk will confront n incr sin numb r of ch ll n s in v cu tin th pow r from th n w pl nts. Furth rmor , m int inin th n r tion consumption b l nc nd d lin with pot nti l probl ms in volt nd fr qu nc inst biliti s will b com incr sin l import nt to m n . 11.2 PLANNED UPGRADES AND EXTENSIONS It is of p r mount import nc th t th tr nsmission s st m is d v lop d nd str n th n d to m t th rowin l ctricit d m nd in th countr . Th n c ss r tr nsmission s st m r inforc m nts to m int in s tisf ctor pow r s st m p rform nc r id ntifi d b d t il d pow r s st m n l sis c rri d out durin lon -t rm tr nsmission d v lopm nt pl nnin proc ss. CEB’s lon -t rm tr nsmission d v lopm nt pl n (LTTDP 2015-2024) is n upd t d v rsion of th pr vious pl n (LTTDP 2013-2022), which w s d si n d b s d on th nh nc d v rsion of th lon -t rm n r tion xp nsion pl n (LTGEP 2015-2034), th division l MV distribution pl ns, nd th d m nd for c st. Sp cific ll , in th fiv ph s s of 2015, 2018, 2020, 2022, nd 2024, th pl n is d v lop d to fulfill ch of th n twork s st m crit ri includin volt , th rm l, N-1, s curit , st bilit , nd short- circuit. As m ntion d, in th fiv ph s s, th tr nsmission d v lopm nt pl n is propos d nd, if this pl n is impl m nt d s sch dul d, th pl nnin crit ri will b s tisfi d so th t th r would not b n r t ch ll n s up until 2024 t l st. 107 Offshor Wind Ro dm p for Sri L nk 11.2.1 M jor Id ntifi d Tr nsmission Proj cts In th d v lopm nt pl n for th lon -t rm tr nsmission n twork s st m of CEB, th followin is th m jor tr nsmission s st m r inforc m nt pl n for 400kV nd 220kV, propos d for th r 2018 nd b ond. TABLE 11.1: MAJOR DEVELOPMENT PLAN FOR THE 400KV AND 220KV SYSTEM (SOURCE: LTTDP 2015-2024). Y r D scription Tr nsmission Lin s & Und r round C bl s K l nitiss = Port 220kV c bl 6.5km K r w l piti = Port 220kV c bl 13.5km Port = Port Cit 2×220kV c bl N w Polpiti = P dukk = P nnipiti 2×220kV tr nsmission lin N w H b r n = V n od 2×220kV tr nsmission lin 2018 M nn r = N w Anur dh pur 2×220kV tr nsmission lin 125km N dukud = M nn r 2×220kV tr nsmission lin 30km N w Grid Subst tions N w H b r n 2×250MVA 220/132/33kV N w Polpiti 2×250MVA 220/132kV M nn r 1×45MVA 220/33kV N dukud 2×63MVA 220/33kV Tr nsmission Lin s & Und r round C bl s 2019 Kirindiw l = P dukk 2×400kV tr nsmission lin (initi ll 220kV op r tion) 20km Tr nsmission Lin s & Und r round C bl s N w Polpiti = H mb ntot 2×220kV tr nsmission lin V n od = Kirindiw l 2×220kV tr nsmission lin Kotm l = N w-Polpiti 2×220kV tr nsmission lin N w Polpiti =H mb ntot (vi Embilipiti ) 2×220kV tr nsmission lin P nnipiti = W ll w tt (SubK) 220kV c bl 2020 Port = W ll w tt (SubK) 220kV c bl S mpoor = N w H b r n 2×400kV tr nsmission lin (initi ll 220kV op r tion) 95km N w Grid Subst tions K r w l piti 2×45MVA 220/33kV Kirindiw l 2×250MVA 220/132/33kV H mb ntot 2×250MVA 220/132/33kV Tr nsmission Lin s & Und r round C bl s S mpoor = N w H b r n 2×400kV tr nsmission lin (400kV op r tion) 95km N w Grid Subst tions 2022 S mpoor 2×500MVA 400/220kV Grid Au m nt tions N w H b r n 2×800MVA 400/220kV Tr nsmission Lin s & Und r round C bl s 2034 Kirindiw l = P dukk 2×400kV tr nsmission lin (400kV op r tion) (r f r nc ) P dukk = Amb l n od = H mb ntot 2×400kV tr nsmission lin 11 Grid Infr structur 108 11.2.2 Futur St ps Und rt k n b CEB for th Trunk Tr nsmission N twork S st m B s d on v il bl inform tion, it is und rstood th t th r r m jor obj ctiv s of d v lopm nt in CEB’s str t to fulfill th followin op r tion l crit ri : ■ Fr qu nc : 50 H ± on p rc nt ■ Volt : 400kV, 220kV within ±5 p rc nt nd 132kV within ±t n p rc nt ■ F ult Curr nt: 40 kA (220kV nd mor ) ■ Ov rlo d: No ov rlo d t N-1 contin nc Mor ov r, th followin h v b n confirm d in th consult tion with th tr nsmission n twork s st ms pl nnin division of CEB: ■ R tin C p cit in Norm l Op r tion: 100 p rc nt • in N-1 Contin nc : 100 p rc nt ■ Op r tion l Go l for Volt : 0.9-1.1 of st nd rd volt ■ F ult Curr nt: up r din to 63 kA in c s of surp ssin ≥220kV tr nsmission s st m nd 40 kA ■ D n mic St bilit : P rmit n r tor sh ddin if d n mic st bilit c nnot b k pt Th for m ntion d op r tion l crit ri (includin oth rs) will form th b sis for n upcomin m st r pl nnin of th l ctric l pow r s st ms. Compr h nsiv pow r s st m studi s t kin into consid r tion th pow r rid topolo /ch r ct ristics, th mix of v il bl n r tion pl nts nd th lo d d m nd for ch of th r l v nt rs, will b n d d. 11.2.3 Propos d B sic Tr nsmission S st m D v lopm nt Pl n Th followin initi tiv s r su st d b CEB. B th Y r of 2025 In ord r to tr nsmit pow r n r t d b S mpoor co l-fir d th rm l pow r pl nt n w 400kV tr nsmission lin is d v lop d b tw n S mpoor – N w H b r n . To tr nsmit pow r from r n w bl n r , such s wind pow r d v lop d in th north of Kilinochchi, 220kV tr nsmission lin usin l r c p cit wir b tw n Poon r n – Kilinochchi – V vuni is d v lop d. 109 Offshor Wind Ro dm p for Sri L nk B th Y r 2030 In ord r to tr nsmit th pow r from r n w bl n r d v lop d in th north of Kilinochchi vi th 400kV S mpoor – N w H b r n tr nsmission lin , 220kV tr nsmission lin usin l r c p cit wir b tw n V vuni – K pp ltur i is to b d v lop d. In ddition, wh n wind pow r n r tion in th M nn r r ion is xp nd d b ond th curr nt 100MW, it will b n c ss r to x min r wirin of th 220kV tr nsmission lin b tw n M nn r – V vuni . A 400kV tr nsmission lin is to b n wl d v lop d b tw n N w H b r n – Kirindiw l d p ndin on th incr s in pow r flow from S mpoor co l-fir d TPP nd r n w bl n r i s in th north rn r . B th Y r 2035 In ord r to tr nsmit th pow r from r n w bl n r d v lop d in th north of Kilinochchi, th c p cit of th 220kV tr nsmission lin b tw n K pp ltur i – S mpoor is to b nl r d vi r wirin or r buildin . In ord r to void h v curr nt flow b tw n V vuni – N w Anur dh pur – N w H b r n du to th incr s in pow r tr nsmitt d from r n w bl n r in Kilinochchi, th busb r in V vuni is to b s p r t d nd th pow r from Kilinochchi is xp ct d to b tr nsmitt d tow rds onl S mpoor. In ddition, sinc th pow r flow suppli d to th north rn p rt from th Putt l m TPP d cr s s nd th pow r flow tow rds th Colombo c nt r incr s s, s count rm sur , lin is to b dd d to th 220kV tr nsmission lin b tw n N w Chul w – V n od , or r wirin work is xp ct d to b c rri d out. 11.3 CONSEQUENCES OF ADDING OFFSHORE WIND POWER PLANTS Addin offshor wind to th Sri L nk pow r s st m will incr s th portion of r n w bl n r with si nific nt mounts in on st p, iv n th l r -sc l n r tin c p cit of n offshor wind f rm (for x mpl , t pic l proj ct si in Sri L nk could b 500MW). Cons qu ntl , n offshor wind f rm do s not onl ff ct th ov r ll s st m s such, but lso r quir s sp cific inv sti tions nd most lik l up r d s/str n th nin t th rid conn ction point nd th imm di t b ck bon s st m b hind. Furth rmor , ddin ddition l mounts of offshor wind m impl th t loc l d m nd is xc d d. In such c s , lt rn tiv solutions for us of th n r n r t d must b consid r d. For Sri L nk , two solutions could b r l v nt: construction of n int rconn ctor with Indi , nd v rious options for PtX, such s r n h dro n or r n fu ls. 11 Grid Infr structur 110 11.3.1 Tr nsmission S st m Up r d s/Ext nsions Althou h th pl ns for up r din th tr nsmission s st m s outlin d in s ction 11.2 r si nific nt, ddin offshor wind s ddition l c p cit in th m nitud of th rowth sc n rios (s ction 6.2) will h v m jor imp ct on th tr nsmission s st m. Wh n ss ssin th loc tion of th pot nti l offshor wind d v lopm nt r s inst th xistin tr nsmission n twork it is vid nt th t most of th r s r not situ t d clos to th l r lo d d m nd c nt r with stron r tr nsmission n twork. Cons qu ntl , for d v lopm nt of th r s up r d s nd xt nsions r n d d. Th OWF rid int rconn ction for proj cts in Sri L nk is most lik l to b 220-275kV AC xport s st m b tw n th wind f rm nd th point of conn ction (PoC). Point-to-point hi h volt DC (HVDC) s st ms r now t pic ll us d for l r r proj cts (> 1GW) nd with l r dist nc b tw n th proj ct nd PoC), how v r this is unlik l to ppl to n proj cts in Sri L nk (unl ss proj ct is combin d with n HVDC int rconn ctor with Indi ). En in rin d si n for sp cific OWF proj ct is r quir d to d t rmin th most f sibl topolo . This offshor xport s st m conn ction oft n is dir ct tr nsmission link b tw n th OWF nd th pow r rid64. Cons qu ntl , it is vit l to d cid who will b th own r nd op r tor of this HV offshor xport s st m tr nsmission. In m tur m rk ts, m jor offshor wind d v lop rs h v shown pr f r nc to t k th d si n nd construction of th offshor xport s st m into th ir scop , s it llows th d v lop r to b tt r control cost, sch dul , nd risk. How v r, this ppro ch is not us d in ll m rk ts. Diff r nt ppro ch s pr v il worldwid if th offshor wind d v lop r sh ll m int in th own rship nd op r tion of this tr nsmission ss t or if it sh ll b tr nsf rr d to th TSO or third p rt . Th d cision on r sponsibiliti s, nd th ssoci t d l l fr m work nd m ch nism to impl m nt th d cision, should b s ttl d b for proj ct is t nd r d to d v lop r. For furth r discussion on th diff r nt ppro ch s to d liv r nd own rship of offshor l ctric l xport s st ms, s s ction 3.7 of th K F ctors r port [17]. For th str n th nin nd up r din of th tr nsmission s st m, it is import nt th t CEB is pr p r d for th c p cit dditions nd h s suffici nt tim to pl n nd impl m nt th n c ss r up r d s/ xt nsions. A hi h-l v l ss ssm nt of n d d up r d s for th thr id ntifi d r s for pot nti l d v lopm nt of offshor wind is: ■ Ar 1 North – This r is loc t d round th north rn p rt of th countr wh r th tr nsmission n twork is sc rc with onl on 220kV lin conn ctin M nn r nd on 132kV lin conn ctin J ffn to th n tion l n twork. With th l r pot nti l in this r , most lik l ddition l subst tions nd tr nsmission lin s will h v to b construct d to xport pow r to th c ntr l p rt of th countr . How v r, for th first wind f rm(s) in th b of M nn r f w r up r d s/ xt nsions m b n d d s th subst tion nd tr nsmission lin w s r c ntl built nd pr p r d of som c p cit dditions in this r ion. ■ Ar 2 W st – This r is loc t d clos to Putt l m nd th c ntr l p rt of Sri L nk wh r d m nd is th l r st nd wh r th tr nsmission n twork is th stron st. How v r, this r lso h s th l r st pow r pl nt c p cit , nd th r for ddin offshor wind will r quir c r ful n l sis of th xistin lo d nd wh th r th s st m s it st nds is bl to bsorb ddition l c p cit . Most lik l , ddition l up r d s nd xt nsions will lso b r quir d for this r . 64 Sh r d l ctric l hubs nd offshor m sh d rids r b in consid r d in som m tur m rk ts with multipl GW nd compl x d v lopm nts. This is unlik l to b ffici nt in Sri L nk , iv n th limit d c p cit to b d v lop d. S K F ctors s ction 3.7 for furth r inform tion [17]. 111 Offshor Wind Ro dm p for Sri L nk ■ Ar 3 South st – Simil rl to th north st of Ar 1, this r is in p rt of th countr wh r th tr nsmission n twork is sc rc with onl on 132kV lin b tw n H mb ntot nd th c ntr l s st m. CEB h s confirm d pl ns to up r d th xistin 132kV lin to 220kV soon, du to construction of ddition l non-VRE c p cit in th vicinit of H mb ntot . Th n w lin m h v som sp r c p cit for ddition l tr nsmission, but iv n th si of OWFs, most lik l mor up r d s or xt nsions will b n d d if ddin offshor wind in this loc tion. An ddition of offshor wind in Sri L nk will r quir c r ful tr nsmission pl nnin . Fundin will b r quir d for th s inv sti tions nd to x cut th r quir d s st m up r d s. 11.3.2 Pow r S st m Fl xibilit Pow r s st m fl xibilit is k wh n ddin si nific nt mounts of VRE. Fl xibilit c n b off r d b stor (pump d h dro nd b tt r stor ) or b mor fl xibl th rm l n r tion throu h mod rni d co l-fir d pl nts, s-fir d pow r pl nts, nd d m nd-sid r spons m ch nisms. In this r rd, Sri L nk curr ntl h s si nific nt h dropow r r s rvoirs which could lso dd si nific nt fl xibilit s rvic s to th s st m. T chnic l fl xibilit is clos l r l t d to th ph sic l structur of th s st m. T chnic l fl xibilit r f rs to th combin tion of t chnolo i s th t d t rmin 1) th bilit of suppl to follow r pid ch n s in n t lo d, 2) voidin p k d m nd tim s (for n twork b n fit) or p k n t d m nd tim s (for n r tor), 3) th bilit of d m nd to follow r pid ch n s in suppl , 4) th bilit of n r stor to b l nc mism tch s b tw n suppl nd d m nd t ll tim sc l s, nd 5) d qu t rid infr structur to llow l st-cost suppl to r ch d m nd t ll tim s, n wh r in th pow r s st m. To chi v fl xibilit in pow r s st m, s v r l st ps nd ctions must b consid r d. ■ Politic l l v l: Firstl , th r must b n ctiv politic l d cision to h v n incr s d sh r of r n w bl n r in th n r s st m lon with l l fr m work cov rin st blishm nt of whol s l m rk t nd l in down conditions b tw n TSO nd th pow r n r tion pl nts. For Sri L nk , th d cision on incr s d sh r of r n w bl n r in th s st m ll th w up to 100 p rc nt h s lr d b n t k n. Cons qu ntl , it is now m tt r of st blishin th r ul tor fr m work for impl m nt tion of r l v nt m rk t nd t chnic l m ch nisms. ■ TSO l v l: Th s cond l v l is th TSO l v l, which s th disp tch r, is r sponsibl for st blishin th whol s l m rk t includin th m rk t for ncill r s rvic s (fr qu nc support, r ul tin pow r, tc.). Th TSO should t k r sponsibilit for th rid r inforc m nt in th countr which m b l r t sk sinc th production of r n w bl n r is t pic ll loc t d f r w from th m in consumption of pow r. ■ Lo d disp tch l v l: Th third l v l is th lo d disp tch c p bilit , which h s to b subst nti ll utom t d for utom tic distribution of lo d comm nds to th conn ct d pow r st tion units with upd t d s t points v r fiv minut s. Th lo d disp tch is b s d on optimi tion of conomic p r m t rs nd wind for c sts s w ll s onlin c lcul tion of th ctu l fl xibilit for ll th rm l pow r pl nt units. ■ Pl nt l v l: Th fourth l v l is th pl nt l v l. It is import nt th t th rm l pow r pl nt m n rs r bl to ct fr l within th ir conomic fr m , to b bl to impl m nt th r quir d t chnic l solutions nd lso to cc pt th incr s d risks of runnin mor d n mic th rm l pow r pl nt units. 11 Grid Infr structur 112 11.3.3 Int rconn ctor with Indi For som tim , n int rconn ctor b tw n Sri L nk nd Indi h s b n discuss d. Accordin to M mor ndum of Und rst ndin (MOU) si n d b tw n th ov rnm nts of Indi nd Sri L nk in 2010, f sibilit stud w s jointl c rri d out b CEB nd Pow r Grid Corpor tion Indi n Limit d (POWERGRID) for th construction of 1GW HVDC int rconn ction proj ct. Di lo u b tw n th Indi n nd Sri L nk n ov rnm nts h s r c ntl r sum d on th subj ct of th int rconn ctor nd work is und rw to furth r ss ss its f sibilit nd options for impl m nt tion. Th Sri L nk — Indi HVDC Grid Int rconn ction is propos d proj ct to link th n tion l rids of Sri L nk nd Indi . Th pl n th t h s b n ss ss d to-d t involv s s ttin up link for 1GW b tw n Sri L nk nd Indi (in mor r c nt discussions 500MW option h s lso b n consid r d). Th proj ct involv s th construction of HVDC conn ction b tw n Anur dh pur in c ntr l Sri L nk nd M dur i in south rn Indi , throu h th P lk Str it. Th link would m sur 285km in l n th, includin 50km of subm rin c bl s; oth r som wh t diff r nt rout options h v lso b n discuss d. FIGURE 11.2: POTENTIAL INTERCONNECTION BETWEEN SRI LANKA AND INDIA [67]. M dur i 190 km Th l i M nn r 50 km 140 km N w Anur dh pur Th f sibilit stud consid r d th t chnic l, conomic l, l l, r ul tor , nd comm rci l sp cts in tr din l ctricit b tw n Indi nd Sri L nk . Whil initi l studi s show d th t th proj ct would not b vi bl [4], mor r c nt ss ssm nt b th World B nk shows si nific nt conomic b n fits. Th combin d conomic b n fits for Sri L nk nd Indi of th int rconn ction r xp ct d to b v r si nific nt both in short-t rm n l sis (US$326-453 million p r r) nd lon -t rm n l sis ( bout US$1.5 billion in discount d t rms). Cons qu ntl , furth r studi s nd most lik l djustm nts, will b n d d in ord r to full ss ss th vi bilit of this proj ct. 113 Offshor Wind Ro dm p for Sri L nk 11.3.4 Pow r-to-X Anoth r possibl solution for usin nd bsorbin l ctricit in xc ss of dom stic d m nd is to conv rt r n w bl l ctricit into r n h dro n throu h n l ctrol sis proc ss, or to oth r v ctors such s r n mmoni throu h oth r ch mic l proc ss s. Du to th diff r nt rr of possibl v ctors, this is som tim s known s pow r-to-X (or PtX). It is f st- rowin s ctor with m n pot nti l futur pplic tions to n bl lob l d c rboni tion. Fi ur 11.3 provid s summ r of som of th m in p thw s from r n w bl l ctricit to n r d m nds. FIGURE 11.3: A SUMMARY OF THE MAIN PTX TECHNOLOGY PATHWAYS FOR VARIOUS DEMANDS. Dir ct l ctrific tion Indir ct l ctrific tion (pow r-to-x) El ctrol sis - h dro n production Gr n h dro n E-fu ls CO2 from c rbon c ptur Fu l Nitro n from ir s nth sis Gr n Bio Crud oil Pow r Biom ss or w st production R fin r Gr n fu ls -Bio-fu ls Sourc : COWI Gr n h dro n c n b us d to fulfill xistin h dro n d m nds; most oft n in p troch mic l works nd th production of f rtili rs. Sri L nk ’s oil r fin r h s n xistin , sm ll h dro n d m nd but th r is no oth r dom stic d m nd. Gr n h dro n c n lso b conv rt d into mmoni or m th nol, nd th s could h v futur pplic tions s ro-c rbon fu l for shippin . Giv n Sri L nk ’s r d cc ss to p ssin lob l shippin fl ts s w ll s th xistin tr ffic usin th ports of Colombo nd H mb ntot , this could provid n w industri l xport opportunit for th countr . Althou h th t chnolo nd proc ss s for producin th s products is w ll known nd prov n, th int r tion of ll th s s st ms t l r -sc l h s not t b n chi v d. Th t s id, th r n h dro n s ctor is xp ct d to d v lop nd m tur ov r th comin d c d , nd m n countri s h v st blish d mbitious t r ts. Th r r curr ntl l r numb r of r n h dro n d monstr tion proj cts, includin som usin offshor wind n r tion, b in l unch d in s v r l countri s cross th lob . Whil Sri L nk ’s r n w bl n r r sourc s m n th t on d it could n r t mor l ctricit th n it d m nds, th busin ss c s for PtX pplic tions is not str i htforw rd. Hi h costs nd unc rt in offt k rs r m jor b rri rs, but initi l pilot proj cts r b in pl nn d in Sri L nk to d monstr t th t chnolo , pot nti ll l din th w for futur l r r-sc l pplic tions. Du to th hi h r cost of l ctricit from th first offshor wind proj cts, it is unlik l to b conomic ll vi bl to us l ctricit from th s proj cts to produc r n h dro n. As th t chnolo m tur s nd costs r duc — both for offshor wind nd r n h dro n — this could b n option to consid r in th 2030s or b ond. 11 Grid Infr structur 114 12 PORT INFRASTRUCTURE Lik rid infr structur , port infr structur is n ss nti l n bl r of offshor wind which must b fulfill d loc ll . In this ch pt r, Sri L nk ’s port infr structur c p cit nd c p bilit to support offshor wind is ss ss d. This ch pt r focus s on th n l sis of pot nti l ports for offshor wind f rms, m inl with fix d-bottom found tions for s v r l r sons: ■ Inst ll tion ports for fix d-bottom found tions r n ss nti l n bl r for wind f rm construction nd c n ct s k constr int. Th inst ll tion port is th k port in which m in compon nts r r c iv d, stor d nd th n shipp d to sit for fin l inst ll tion. ■ M nuf cturin ports r much mor fl xibl , both in t rms of t chnic l r quir m nts nd loc tion. Som m nuf cturin f ciliti s r succ ssfull loc t d inl nd, whil oth r m nuf cturin f ciliti s or ports r in oth r countri s. D p ndin upon th compon nt m nuf ctur d, th c n h v much low r r quir m nts th n th construction port. Th v il bilit of m nuf cturin ports do s not t pic ll constr in th inst ll tion of offshor wind f rms. ■ Op r tion nd m int n nc ports, lik m nuf cturin ports, h v much low r t chnic l r quir m nts th n construction ports. Th ir loc tion should b s clos to th wind f rm th s rv s possibl , but this is not usu ll bottl n ck, s sm ll r ion l or v n loc l ports c n b us d. Th port r quir m nts for offshor wind f rms usin flo tin found tions v r r tl ccordin to th t chnolo us d, but th r r still s v r l d si n t p s in us nd th industr h s not t conv r d to on or two commonl us d d si ns. Th wid v ri t of flo tin t chnolo und r consid r tion t this tim do s not llow for qu ntit tiv n l sis in this stud . It should b not d th t pot nti l nvironm nt l nd soci l constr ints r l tin to ports h v not b n consid r d in th ro dm p s this r quir s mor d t il d ss ssm nt of up r d s n d d. How v r, n infr structur proj ct sh ll of cours consid r imp ct on th nvironm nt nd soci t . 12.1 INLAND INFRASTRUCTURE D p ndin on th offshor wind proj ct, l r compon nts m b d liv r d to th inst ll tion port vi ship from oth r ports or, in limit d c s s, vi l nd rout s. Th l r si nd w i ht of compon nts for offshor wind f rms m ns th t it is usu ll impr ctic l to tr nsport th s it ms ov r l nd. In 2018, Sri L nk ’s ro d infr structur w s r nk d t 4.2 out of 7 in th World Economic Forum’s surv , puttin it t r nk 61 out of 141 countri s [68]. This indic t s th t som constr ints r xp ct d du to th ro d n twork, sp ci ll in rur l r s. How v r, such constr ints onl b com r l v nt in c s l r r compon nts will b m nuf ctur d inl nd Sri L nk . Furth r, it must b not d th t ll l r WTG compon nts nd inst ll tion cr n s for th 100MW M nn r wind f rm loc t d on th northw st of th isl nd w r shipp d to th port of Trincom l loc t d in th north st of th isl nd nd w r succ ssfull tr nsport d b ro d to sit . Furth rmor , Sri L nk with its r l tiv l xp nsiv w t rfront r , is w ll position d to us w t r tr nsport to th full st xt nt possibl . 115 Th proximit to oth r mod s of tr nsport such s irports could lso b n dv nt if cr w rot tion is pl nn d out of th inst ll tion b s , nd th r is n int rn tion l irport loc t d both in Colombo nd clos to H mb ntot . How v r, iv n Sri L nk ’s si , this infr structur is not drivin f ctor. 12.2 PORT REQUIREMENTS FOR OFFSHORE WIND Ports r critic l infr structur r quir d for th construction nd op r tion of offshor wind f rms. Num rous studi s [16] [17] h v b n publish d summ ri in th t pic l port r quir m nts, nd this subs ction provid s furth r inform tion on th m in ch r ct ristics. 12.2.1 Inst ll tion Port R quir m nts for Fix d Offshor Wind F rms Th port r quir m nts m ntion d in this s ction h v b n d v lop d with vi w to th continu ll - incr sin si s of WTG compon nts in th 8–15MW r n nd of th v ss ls n d d to tr nsport nd inst ll th m. For r quir m nts to which volum is import nt, such s rd r , th r quir m nts r d fin d with t pic l 500MW wind f rm in mind. ■ Dist nc to wind f rm • A short dist nc b tw n th wind f rm nd th inst ll tion port llows for ffici nt us of costl ch rt r v ss ls nd b tt r us of short windows of ood w th r. B s d on s mpl of 40 Europ n offshor wind f rms, th m di n dist nc b tw n th inst ll tion port nd th wind f rm is b tw n 50–100km. Of th 40 wind f rms, 36 w r within 250km of th inst ll tion port. Som outli rs, such s Northwind (B l ium) nd W st rmost Rou h (En l nd), wh r inst ll tion w s c rri d out from Esbj r d spit dist nc of clos to 600km, shows th t oth r f ctors c n t k pr c d nc . • M ximum: l ss th n 400km • R comm nd d: l ss th n 200km ■ D pth t ch nn l ntr nc • Th w t r d pth t th ntr nc , in th ch nn l, or lon th f irw should b d p nou h to llow cc ss to ll v ss ls t ll tid s. H vin l ss v il bl d pth still llows op r tions but c n pos limit to l r r c r o nd inst ll tion v ss ls. Simil rl , if h rbour c n onl b cc ss d nd d p rt d t hi h tid s, this dds ddition l constr int to critic l ctivit , which is th ffici nt ch rt r of inst ll tion v ss l. • Minimum: 9m • R comm nd d: 12.5m ■ H rbour ntr nc width • H rbour ntr width must b suffici nt to llow s n vi tion in r n of w th r conditions. Th most constr inin v ss ls r th WTG inst ll tion v ss ls, which oft n c rr bl d s of ov r 100m st ck d cross nd protrudin from th d ck. • Minimum: 200m • R comm nd d: 300m 12 Port Infr structur 116 FIGURE 12.1: WTG INSTALLATION VESSEL AT SAIL AWAY FROM HARBOUR, CARRYIN GAT A QUAYSIDE, WAITING TO BE LOADED WITH THE TOWERS, NACELLES, AND BLADES. Sourc : V st s ■ Lock/ t • Locks r incomp tibl with c r o th t xt nds ov r th d ck of v ss l, such s is commonl th c s with bl d s on WTG inst ll tion v ss ls. • Minimum: No lock or t pr s nt FIGURE 12.2: BLADES EXTENDING OVER THE DECK OF THE WTG INSTALLATION VESSEL. Sourc : Fr d Ols n 117 Offshor Wind Ro dm p for Sri L nk ■ V rtic l cl r nc • Th n d for v rtic l cl r nc is driv n b WTG inst ll tion v ss ls, on which both pr - ss mbl d tow rs nd r tr ct d j ck-up l s c n xt nd 100 m t rs bov th d ck of th v ss l. • Minimum: 120m • R comm nd d: No r striction ■ B rth l n th • B rth l n th is function of th numb r nd l n th of v ss ls xp ct d to simult n ousl us th b rth. M r in l b rths (p r ll l to th shor lin , s oppos d to p rp ndicul r) r pr f r bl for offshor wind. Id ll , th b rth is m r in l (p r ll l to shor ), nd two v ss ls c n b moor d simult n ousl b c us this iv s fl xibilit in sch dulin th inbound nd outbound v ss ls. • Minimum: 200m • R comm nd d 400m ■ D pth t b rth • Simil r to th d pth r quir m nt t th ch nn l ntr nc , th w t r d pth t th b rth must b d p nou h to ccommod t th common v ss ls us d in offshor wind f rms. Th sli htl low r r quir m nt t th b rth is du to sm ll r und r k l cl r nc . • Minimum: 8m • R comm nd d: 12m FIGURE 12.3: CRANES ON VESSEL LIFTING FOUNDATIONS READY FOR INSTALLATION. Sourc : C d l r 12 Port Infr structur 118 ■ Lo d c p cit • Lo d c p cit d scrib s how h v lo d c rt in r c n support. Th r quir m nt d p nds h vil on us nd t p of tr nsport within th st in r . Th s r quir m nts r driv n b th hi h ( nd incr sin ) w i hts of compon nts such s monopil s, j ck t found tions, tow rs, nd n c ll s. Th s compon nts r lik l to r n from 650–1200 tonn s for 10–12MW WTGs. Incr sin th lo d c p cit is on of th most common up r d s r quir d for offshor wind ports. How v r, this hi h lo d c p cit do s not n c ss ril n d to b pr s nt ov r th whol port r . On c s -b -c s b sis, it m b possibl to h v th m ximum b rin c p cit onl in c rt in r s. • In n r l, h vin n ov r ll n r l uniforml distribut d lo d (UDL) of 50kN/m2 is nou h to llow both tr nsport nd stor of l m nts such s n c ll s, bl d s, nd tow r s m nts. • H vin UDL of 100kN/m2 llows unhind r d runnin of ll compon nts (includin monopil s nd tr nsition pi c s) usin s lf-prop ll d modul r tr nsport rs nd st in tr nsition pi c s on qu sid . ■ Y rd r • To m k th most ffici nt possibl us of ch rt r v ss ls, compon nts r st d in th ports rd r , furth r w from th qu , nd tr nsport d in b tch s to qu sid to b lo d d s soon s v ss ls r r d . • Minimum: 15 h ct r s • R comm nd d: 20 h ct r s FIGURE 12.4: ESBJERG PORT VIEW FROM THE SVANEN (DENMARK) YARD AREA FOR OFFSHORE WIND ACTIVITIES. Sourc : Port of Esbj r -Christ r Holt 119 Offshor Wind Ro dm p for Sri L nk TABLE 12.1: SUMMARY OF PORT REQUIREMENTS R quir m nt R n Prop rt (Minimum to R comm nd d) Dist nc to wind f rm <200-<400km D pth t ch nn l ntr nc 9-12.5m H rbour ntr nc width 200-300m Pr s nc of lock/ t Not cc pt bl V rtic l cl r nc 120m-no r striction B rth l n th 200-400m D pth t b rth 8-12m Lo d c p cit 50-100kN/m2 (UDL) Y rd r 15-20 h ct r s 12.2.2 Inst ll tion Port R quir m nts for Flo tin Wind F rms Curr ntl , th formul tion of port r quir m nts b nchm rk for flo tin found tions is quit n unc rt in x rcis , s th t chnolo us d is still hi hl v ri d. Th six d monstr tor flo tin wind f rms comin onlin in Europ b 2023, for x mpl , us four diff r nt conc pts: s mi-subm rsibl , b r , t nsion l pl tform, nd sp r [18]. In tim , som of th s conc pts will m r s th most popul r nd th n lob l port r quir m nts c n b formul t d for th m. Comp r d to th bottom-fix d found tions, th most import nt distinction is th bs nc of th WTG inst ll tion v ss l with its r quir m nts for n unint rrupt d inst ll tion sch dul . This would r sult in sm ll r ntr nc width nd pot nti ll short r b rth r quir m nts. Th k driv r of th proc ss would b th production c cl of th flo t rs which would n d to b xplor d in d t il d pl nnin proc ss. B s d on si s of curr nt d monstr tion/p thfind r proj cts, indic tiv r quir m nts for port prop rti s r d scrib d in th followin . Th si of stor rd r is uncl r s th inst ll tion of WTG nd flo t r is continuous proc ss ov rn d mostl b th r t of flo t r production. In th t s ns , th si of th rd could b s low s n r which would llow for on shiplo d of compon nts to b v il bl for inst ll tion ( pproxim t l fiv h ct r s), but lso s hi h s for bottom-fix d found tions (15-20 h ct r s). Lo d c p cit llow nc is ov rn d b th h vi st compon nt stor on qu nd tr ck d cr n s r quir d for liftin (possibl du l lift). It is th r for lik l th t r quir m nts r lik thos for bottom- fix d found tions. Th r quir d d pth t b rth nd ntr nc m n d to b l r r th n for bottom-fix d found tions, s th found tions r flo t d dir ctl t qu . Whil b r -t p flo t rs h v comp r bl dr ft to v ss ls us d for offshor wind, s mi-subm rsibl found tions r quir l r r dr ft (prob bl round 20m) for m xim l st bilit . 12 Port Infr structur 120 FIGURE 12.5: WTG MOUNTED ON A SEMI-SUBMERSIBLE FOUNDATION FLOATED DIRECTLY AT QUAYSIDE. Sourc : Principl Pow r 12.2.3 Op r tion nd M int n nc Port R quir m nts of ports us d for O&M of offshor wind f rms r f r l ss d m ndin th n th r quir m nts on ports us d for inst ll tion. Th v ss ls commonl us d for O&M r cr w tr nsf r v ss ls (CTV) nd s rvic op r tion v ss ls (SOV). CTVs r sm ll v ss ls with n ov r ll l n th of 15-30m nd sh llow dr ft. Th r us d to r ch wind f rms which r r l tiv l clos to shor nd r us d for d trips, with th cr w r turnin to shor t th nd of th d . To ccommod t CTVs, ports n d bout 4m d pth t th ch nn l ntr nc nd b rth, h rbour ntr nc width of pproxim t l 12m, nd v rtic l cl r nc of onl 10m, s CTVs do not tr nsport l r compon nts. Wh n usin CTVs, onl sp r p rts nd quipm nt r stor d t th port, cons qu ntl , hi h lo d c p cit is no lon r r quir d. An O&M port should id ll h v 0.75 to 1.5h of v il bl r , dj c nt to th b rthin to llow for th footprint of th onshor f ciliti s, such s offic s, stor , ccommod tion, nd workshops. For wind f rms s rv d b CTVs, th O&M port is t pic ll loc t d 50-100km from th wind f rm. SOVs r l r r v ss ls with cr w lod in nd w r housin r s on d ck. Th c n st t s for lon r p riods of tim (up to two w ks), m kin th m us ful for wind f rms th t r furth r from shor or v r l r . Comp r d to CTVs, SOVs r quir d p r ( pproxim t l 7m) nd lon r b rth, s w ll s hi h r v rtic l cl r nc ( pproxim t l 40m). As th v ss ls r turn to port l ss fr qu ntl , th b rth c n b sh r d with oth r v ss ls nd s som functions r v il bl on th v ss l, l ss rd r could b n d d onshor . With n SOV s rvic conc pt, th O&M port is t pic ll loc t d 100- 200km from th wind f rm b in s rv d. 121 Offshor Wind Ro dm p for Sri L nk For l r compon nt xch n s or r p irs, WTG inst ll tion or oth r sp ci li d v ss ls m n d to b us d. How v r, s th s v nts r infr qu nt, th s v ss ls c n us noth r port, such s th on us d for inst ll tion. 12.3 ANALYSIS OF POTENTIAL INSTALLATION PORTS IN SRI LANKA Sri L nk h s thr m jor pot nti l offshor wind r s: Ar 1 (north), Ar 2 (w st), nd Ar 3 (south st). Ar s 2 nd 3 r mor d ns l popul t d nd thus h v b tt r infr structur cov r , whil Ar 1 is mor rur l. Ar 1 lso cont ins Sri L nk ’s bi st obst cl to shippin tr ffic: th lim ston sho l form tions of Ad m’s Brid (s Fi ur 12.8). This form tion is lik l th r m ins of form r l nd brid b tw n M nn r Isl nd on Sri L nk nd P mbu Isl nd in Indi . Thou h much of th form tion is now cov r d b w t r, th w t r d pth is not suffici nt for shippin tr ffic to p ss throu h. Ad m’s Brid forc s ships w ntin to circumn vi t Indi to p ss round Sri L nk , ddin si nific nt s ilin tim . Ov r th rs, m n propos ls h v b n put forth b Indi to cr t d p-w t r c n l conn ctin th Gulf of M nn r with th P lk Str it, som of which cut thou h Ad m’s Brid . Th n w st propos l, th S thus mudr m Ship Ch nn l Proj ct, is h vil oppos d nd bo d down in l isl tion in th Indi n courts [69]. As th offshor wind volum s xp ct d in Sri L nk b 2030 r mod r t , it is lik l th t on m jor offshor wind inst ll tion port in tot l would suffic . How v r, it must b not d th t with onl on port, proj cts in th r (s) furth r w from this port will xp ri nc hi h r lo istic l costs. Du to th nticip t d mod r t volum of offshor wind xp ct d, it is lso import nt th t n up r d s m d to th ports for offshor wind r lso d si n d with multi-function l us . Th up r d s should not s rv offshor wind lon , but lso iv n dd d v lu to th port b tw n offshor wind inst ll tion c cl s. Sri L nk h s four m jor ports – Colombo, G ll , H mb ntot , nd Trincom l – nd thr minor ports – K nk s nuthur i, Point P dro, nd Oluvil. Of th minor ports, Oluvil nd Point P dro r not furth r consid r d in this stud . Oluvil is curr ntl out of us du to ccumul tion of s nd blockin th port ntr nc nd Point P dro is loc l port which do s not h v n us bl infr structur for offshor wind inst ll tion. Th followin s ctions pr s nt hi h-l v l n l sis of ch port. 12.3.1 Colombo Th port of Colombo is Sri L nk ’s l r st nd busi st port nd is m jor tr nshipm nt hub of r ion l import nc b tw n th M dit rr n n (vi th Gulf of Su ) nd South st Asi [70]. Th port h s und r on pr vious xp nsions to m t incr sin d m nd nd is curr ntl in th midst of n xt nsiv d v lopm nt initi tiv c ll d th “Port Cit Colombo.” This d v lopm nt is on 269 h ct r s of r cl im d l nd south of th curr nt port s c n b s n in Fi ur 12.6. It is pl nn d to b sp ci l conomic on , which will combin busin ss int r sts nd livin sp c onc compl t [71]. 12 Port Infr structur 122 FIGURE 12.6: OVERVIEW OF THE PORT OF COLOMBO [72]. Whil Colombo is t chnic ll c p bl of functionin s n inst ll tion port for offshor wind, its position s m jor lob l cont in r tr nshipm nt hub m prov to b th bi st obst cl . For port lik Colombo th t is op r tin t c p cit , offshor wind could pr s nt ch ll n s which would not m nif st th ms lv s if th port w s to simpl continu with its curr nt nd m in lin of busin ss. Firstl , minor up r d s would n d to b don on nd round th port its lf, disruptin th norm l busin ss durin th t tim . S condl , l r l down r will n d to b r purpos d from its curr nt us (lik l cont in r stor /st in ), r pr s ntin furth r busin ss disruption. Wh th r this is conomic ll f sibl for th port will d p nd on th numb r of wind f rms it c n s rv , th ir timin , nd th proj ct conomics. T bl 12.2 summ ri s how Colombo port m sur s up inst th b nchm rk iv n in T bl 12.1. 123 Offshor Wind Ro dm p for Sri L nk TABLE 12.2: GAP ANALYSIS OF COLOMBO PORT. Prop rt Port G p An l sis Th p rt of Ar 1 south of Ad m’s Brid is within r n . Ar 2 is v r clos : Dist nc to OWF 50km nd 100km from port. Approxim t l h lf of Ar 3 is within 200km. D pth t ch nn l ntr nc OK H rbour ntr nc width OK Pr s nc of lock/ t OK V rtic l cl r nc OK B rth l n th OK D pth t b rth OK Lo d c p cit Unknown, but lik l within r quir d r n Y rd r OK, ssumin v il bilit Conclusion Suit bl , with minor up r d s nd ssumin rd r c nb m d v il bl 12.3.2 G ll G ll w s n import nt comm rci l port in Sri L nk until 1873, wh n n rtifici l h rbour w s built in Colombo nd comm rci l tr ffic shift d th r . Tod , G ll is loc t d in popul r tourist r nd chtin d stin tion. Furth r d v lopm nts for th port r pl nn d in ord r to b tt r s rv this s ctor, includin th ddition nd improv m nt of f ciliti s for p ss n r v ss ls, such s chts, wh l w tchin , nd cor l w tchin op r tors [74]. G ll is consid r d unsuit bl for offshor wind inst ll tion du to som k t chnic l f ctors, such s in d qu t b rth l n th nd l down r , but lso du to th f ct th t th h v comm rci l shippin nd construction op r tions n d d for offshor wind r not s n s comp tibl with G ll ’s int nd d d v lopm nt s chtin d stin tion. Furth r, th r r pot nti l r s of s nsitiv cor l in th vicinit s w ll s th Rum ss l S nctu r to consid r. T bl 12.3 summ ri s how G ll port m sur s up inst th b nchm rk iv n in T bl 12.1. TABLE 12.3: GAP ANALYSIS OF GALLE PORT. Prop rt Port G p An l sis Ar 2 nd Ar 3 c n b sil r ch d within 200km, s w ll s th w st rn Dist nc to OWF p rt of Ar 1 within 350km. D pth t ch nn l ntr nc Unknown H rbour ntr nc width OK Pr s nc of lock/ t OK V rtic l cl r nc OK B rth l n th 40m l ss th n minimum r quir m nt D pth t b rth Unknown, but lik l not within r quir d r n Lo d c p cit Unknown, but lik l not within r quir d r n Y rd r No v il bl rd r s: ll dj c nt l nd is d ns l d v lop d Conclusion Not suit bl 12 Port Infr structur 124 12.3.3 H mb ntot H mb ntot Int rn tion l Port is Sri L nk ’s n w st m jor port nd is str t ic ll sit d clos to import nt st-w st shippin rout s. It is th s cond l r st port in Sri L nk nd is jointl op r t d b th Sri L nk Port Authorit nd Chin M rch nts Port. Wh r s Colombo port focus s on cont in ri d c r o, th conc pt for H mb ntot w s d si n d to includ wid r r n of c r o t p s nd s rvic s, includin n xp nsiv r r s rv d for industri l us , mostl for li ht industr , but lso with som sp c for h v industr , s shown in Fi ur 12.7 [74]. FIGURE 12.7: HAMBANTOTA PORT PLANNED INDUSTRIAL AREAS [78]. Th port h s b n d si n d to ccommod t th l r st cont in r ships nd will b suit bl for th v ss ls n d d for offshor WTG inst ll tion. As v ss l tr ffic is low r t H mb ntot th n Colombo, th port m b b tt r suit d for us s wind f rm inst ll tion port. T bl 12.4 summ ri s how H mb ntot port m sur s up inst th b nchm rk iv n in T bl 12.1. 125 Offshor Wind Ro dm p for Sri L nk TABLE 12.4: GAP ANALYSIS OF HAMBANTOTA PORT. Prop rt Port G p An l sis Dist nc to OWF All of Ar 3 is within 200km, nd Ar 2 is within 300km. D pth t ch nn l ntr nc OK H rbour ntr nc width OK Pr s nc of lock/ t OK V rtic l cl r nc OK B rth l n th OK D pth t b rth OK Lo d c p cit Unknown, but lik l within r quir d r n Y rd r OK, ssumin v il bilit Conclusion Suit bl , with minor up r d s nd ssumin rd r c nb m d v il bl 12.3.4 Trincom l Trincom l is v r l r n tur l h rbour in which v rious t rmin ls r loc t d. Of th s t rmin ls, th Ashroff J tt com s clos st to fulfillin th r quir m nts for offshor wind. This t rmin l w s r c ntl us d to tr nsport compon nts to th 100MW M nn r onshor wind f rm []. To s rv s n offshor wind inst ll tion port, this t rmin l would n d m jor up r d s to th j tt its lf nd to th rd r . Th p rp ndicul r ori nt tion of th j tt constr ins its us for offshor wind b c us compon nts must b tr nsport d individu ll down th ro d to th j tt , which cr t s bottl n ck. This r would n d to b xp nd d si nific ntl to m k ffici nt compon nt h ndlin possibl . A rd r would lso n d to b cr t d dj c nt to th port which is sp rs l d v lop d. Th s d v lopm nts would b subj ct to n ppropri t ESIA to und rst nd th pot nti l imp cts on th n tur l nd hum n nvironm nts. T bl 12.5 summ ri s how Trincom l port m sur s up inst th b nchm rk iv n in T bl 12.1. TABLE 12.5: GAP ANALYSIS OF TRINCOMALEE PORT (ASHROF JETTY). Prop rt Port G p An l sis North rn p rt of Ar 3 is t th d of th port’s 200km r n . Th st rn Dist nc to OWF p rt of Ar 1 is w ll cov r d, mostl within 200km. D pth t ch nn l ntr nc Unknown H rbour ntr nc width OK Pr s nc of lock/ t OK V rtic l cl r nc OK B rth l n th L n th is ok t 240m, but j tt confi ur tion pl c s l r constr ints on us D pth t b rth OK Lo d c p cit Unknown Y rd r No v il bl rd r . Conclusion Suit bl with m jor up r d s 12 Port Infr structur 126 12.3.5 K nk s nuthur i In its curr nt form, K nk s nuthur i port is not suit bl for offshor wind inst ll tion. How v r, d v lopm nt is und rw to improv th port nd du to b finish d in 2023 [76]. Th s d v lopm nts, which r n l s d in T bl 12.6, o lon w tow rds closin th suit bilit p, but th port would still r quir m jor up r d s to th rd nd dr d in of th ch nn l ntr nc ft r th s d v lopm nts r compl t . TABLE 12.6: GAP ANALYSIS OF PORT OF KANKASENUTHURAI (AFTER COMPLETION OF PLANNED DEVELOPMENTS). Prop rt Port G p An l sis Dist nc to OWF Almost ll of Ar 1 north of Ad m’s brid c n b cov r d. D pth t ch nn l ntr nc Sli htl too sh llow H rbour ntr nc width Unknown Pr s nc of lock/ t OK V rtic l cl r nc OK B rth l n th V r sli htl l ss th n r comm nd d D pth t b rth OK Lo d c p cit OK Y rd r No v il bl rd r Conclusion Suit bl ft r pl nn d d v lopm nt nd ddition l m jor up r d s 127 Offshor Wind Ro dm p for Sri L nk 12.4 SUMMARY MAP Fi ur 12.8 shows th loc tion nd suit bilit of th c ndid t ports, to th r with 200km r n rin s nd Ad m’s Brid . Th r n rin s r shown s n indic tion of th id l r n of ch port but should b vi w d s rou h uid . FIGURE 12.8: LOCATION OF POTENTIAL PORTS, INCLUDING 200KM RADIUS, AND ADAM’S BRIDGE. In ddition to th Sri L nk n ports, Tuticorin port in Indi could pot nti ll b us d s n inst ll tion port [16]. This port should b consid r d in r l tion to possibl build-out of offshor wind in T mil N du nd, s such, it could lso s rv d v lopm nt of OWFs in Sri L nk , sp ci ll to th south of M nn r Isl nd or off Putt l m. Th us of Indi n ports would r duc th pot nti l incom opportunit for Sri L nk n ports nd loc l suppl ch in, but could lso r duc th ov r ll cost of offshor wind in Sri L nk s it would void th xp ns of up r din loc l ports. 128 13 SUPPLY CHAIN Buildin n offshor wind f rm is m jor nd vor nd th suppl ch in r quir d to d liv r th m t ri l nd workforc for such t sk is hu und rt kin . This s ction xplor s mor n r ll th compon nts nd suppl ch in n ds nd th pot nti l for Sri L nk to contribut to ch. Th procur m nt list for n offshor wind f rm is xt nsiv nd m k s us of l m nts from both onshor nd m rin industri s. Suppl in n offshor wind f rm r quir s hi hl sp ci li d t chnolo i s lik und rw t r hi h volt (HV) c bl s, s w ll s h v n in rin l m nts such s concr t structur s nd st l fr m s. Th offshor wind suppl ch in compris s fiv m in c t ori s s pr s nt d in Fi ur 13.1. FIGURE 13.1: DISTRIBUTION OF SUPPLY CHAIN MAIN CATEGORIES ON OVERALL COSTS AS A PERCENTAGE OF LCOE OVER A PROJECT’S LIFE [49]. Development 5% O&M 30% WTG 30% Suppl Ch in M in C t ori s Installation 15% Balance of plant 20% Sourc : BVG Associ t s 129 This s ction pr s nts n ov rvi w of th possibiliti s r l t d to th offshor wind suppl ch in in Sri L nk n cont xt. Th diff r nt suppl ch in c t ori s r d scrib d nd possibiliti s for Sri L nk to t p into th suppl ch in r ss ss d. Th d v lopm nt of loc l suppl ch in, how v r, is lon - t rm ffort nd will occur simult n ousl with skill-buildin , nd knowl d tr nsf r ov r m n rs. Accordin l , th suppl ch in it ms d scrib d in th followin s ctions will onl r du ll mi r t to Sri L nk ov r tim . It must how v r b not d th t iv n th sm ll si of th l ctricit m rk t, Sri L nk will lso n d to position its lf to support Indi n offshor wind rowth nd possibl xport to oth r int rn tion l offshor wind m rk ts. Th d v lopm nt of th Sri L nk n suppl ch in will d p nd r tl on th succ ss in supportin xport m rk ts, with loc l suppl ch ins in Sri L nk onl volvin to m t th n ds of oth r countri s. This is curr ntl ch ll n , b c us Sri L nk n xports r not li n d in si or cont nt to r listic ll support th n ds of l r -sc l offshor wind d v lopm nt, wh r s Europ n countri s nd Indi h v suppl ch ins th t li n d with th n ds nd sc l to support both lob l nd r ion l offshor wind. 13.1 SUPPLY CHAIN CATEGORIES Th followin s ction xplor s th k l m nts nd compon nts r quir d for d v lopin futur offshor industr in Sri L nk . E ch c t or of th n d d suppl ch in is pr s nt d, lon with listin of k subcompon nts nd th ir r l v nt int rn tion l nd loc l provid rs. In ddition, th curr nt m rk t st t -of-pl is d scrib d lon with xp ct d upcomin d v lopm nts. Whil proj ct d v lopm nt t sks nd surv ctiviti s r p r mount for st blishin robust wind f rm d si n nd r li in low LCOE, d v lopm nt xp nditur s (DEVEX) ccount onl for round fiv p rc nt of th tot l proj ct xp nditur . H nc , c pturin most of th proj ct v lu in Sri L nk r li s on c pturin oth r sp cts of th proj ct, . ., m nuf cturin , inst ll tion, nd O&M constitutin 95 p rc nt of th ov r ll costs. Th followin m jor compon nt c t ori s h v b n id ntifi d nd x min d in this stud : ■ D v lopm nt ■ WTG • Bl d s • N c ll s, hubs nd ss mbl • Tow rs ■ BoP • Found tion suppl • Arr nd xport c bl s • Offshor subst tion suppl • Onshor infr structur ■ Inst ll tion ■ O&M 13 Suppl Ch in 130 FIGURE 13.2: KEY ELEMENTS OF THE OFFSHORE WIND SUPPLY CHAIN. Wind Turbines O&M Services Electrical Infrastructure Offshore Foundations Installation Vessels Sourc : COWI 131 Offshor Wind Ro dm p for Sri L nk 13.2 DEVELOPMENT As th r h v b n no offshor proj cts in Sri L nk , th r is littl xp ri nc in th countr with th d v lopm nt nd p rmittin issu s r l t d to th d si n, construction, nd inst ll tion of offshor wind f rms. Th s issu s r n r ll hi hl import nt for d v lop rs wh n nt rin n w countr , nd d v lop rs d dic t si nific nt r sourc s to und rst ndin nd n vi tin loc l pprov l proc ss s, p rmits, nd nvironm nt l, m ritim , nd s f t r ul tions. Int rn tion l d v lop rs r v r c utious tow rds n w m rk ts, p rc ivin th m s hi h risk. Exp ri nc shows th t th d v lopm nt c cl for n offshor wind f rm c n b s v n rs or lon r, nd th d v lopm nt nd p rmittin c n sil ccount for h lf of this tim . To h lp miti t nd m n th risks impos d b n vi tin uncl r nd unt st d d v lopm nt proc dur s nd th suppl ch in loc li tion r quir m nts oft n impos d in n w m rk ts, int rn tion l wind d v lop rs oft n p rtn r with loc l firms th t c n provid knowl d nd insi ht. Buildin l stin r l tionships nd p rtn rships with ov rnm nts nd p rmittin bodi s, nd loc l comp ni s is k str t for d v lop rs in d riskin th ir proj cts, v n mor so in m rk ts th t h v hi h- rowth t r ts wh r multipl proj cts r on oin simult n ousl . A common pr ctic is to form joint v ntur s to spr d risk. On ppro ch is for n offshor d v lop r to p rtn r with comp t nt loc l provid r for th onshor infr structur nd rid up r d s. Joint v ntur s nd oth r w s of miti tin risk xposur r n c ss r for offshor wind d v lop rs, b c us d v lopm nts in oth r offshor wind m rk ts, lik T iw n h v shown th t offshor wind t riffs c n fluctu t with politic l c cl s, nd xpos proj ct to l r fin nci l str in. This c n d l , or in xtr m circumst nc s, kill proj ct. Loc l d v lopm nt p rtn rs who c n f cilit t clos n ss to r ul tors r k ss t to proj ct, s th c n h lp xpl in th concr t imp cts of bstr ct r ul tions. Loc l comp ni s such s WindForc nd LTL Holdin s r loc l EPC contr ctors th t h v built up proj ct d v lopm nt xp rtis . Whil th r is curr ntl no offshor wind p rmittin proc dur in Sri L nk , th s loc l r sourc s could prov ss nti l in drivin th d v lopm nt forw rd within th countr . 13.3 WIND TURBINE GENERATORS At th b innin of th d v lopm nt of th lob l offshor m rk t, th industr ppli d onshor WTGs d pt d for th m rin nvironm nt. Sinc th n, th offshor wind industr h s dv nc d si nific ntl nd d v lop d into n ind p nd nt s ctor th t is d v lopin nd impl m ntin f st- volvin t chnolo i s. Mod rn WTGs r sp cific ll d si n d for th offshor nvironm nt nd would not b f sibl for inst ll tion on onshor sit s. Offshor WTGs r now n in r d to cop with th h rsh m rin nvironm nt, includin stron w v lo ds nd corrosiv s ltw t r, nd r incr sin l b in d pt d to withst nd t phoon conditions. Wind f rms r built for lif tim s of 25+ rs, nd n w O&M conc pts r b in xplor d nd d si n d to r duc m int n nc costs nd improv r li bilit ov r th lif of th proj ct. In r c nt rs offshor WTGs h v dr m tic ll incr s d in si (both in t rms of rotor di m t r nd pow r c p cit ) nd th tr nd is xp ct d to continu (s Fi ur 13.3). 13 Suppl Ch in 132 FIGURE 13.3: EVOLUTION OF WTG SIZE. SOURCE: GWEC [77]. Rotor size and power rating continue to increase Based on commercial offshore wind turbine isolation 240 15-17 220 MW 11-13 200 MW 180 9.5 8.0 Rotor Diameter (m) MW 160 MW 140 6.2 5 MW 120 MW 100 3.6 MW 80 2.0 MW 60 40 0.45 MW 20 0 1991 2000 2003 2008 2012 2017 2020 2022/ 2024/ 2023e 2025e Sourc : GWEC M rk t Int lli nc . Jul 2021 Initi ll driv n b si nific ntl hi h r inv stm nt costs nd follow d b r c nt m rk t consolid tion d v lopm nts in th l st fiv rs, th numb r of ori in l quipm nt m nuf ctur rs (OEMs) for offshor WTGs is consid r bl sm ll r th n th mount of onshor WTG suppli rs. Thr m jor w st rn pl rs domin t th lob l m rk t: th D nish suppli r V st s, th G rm n-Sp nish roup Si m ns G m s (SGRE), nd Am ric n suppli r GE R n w bl En r . Within th Chin s offshor s ctor, th four si nific nt suppli rs r Goldwind, SEwind (Sh n h i El ctric), Min Y n , nd Envision, jointl controllin ov r 90 p rc nt of th Chin s m rk t. How v r, th s comp ni s h v not st blish d si nific nt m rk t sh r s outsid of Chin , nd SGRE nd V st s r xp ct d to control round 60 p rc nt of th lob l m rk t sh r b 2023 [78]. T bl 13.1 lists th thr l din m nuf ctur rs in th int rn tion l offshor m rk t, includin th curr nt WTG t p s nd th ir si nd c p cit , s w ll s th t p s nnounc d to b v il bl soon. TABLE 13.1: OVERVIEW OF CURRENT AND FUTURE OFFSHORE WTG MODELS. M nuf ctur r WTG Mod l C p cit Rotor Si S ri l Production ( st.) SG 14-222 DD 14MW 222 m 2024 Si m ns G m s SG 11.0-200 DD 11MW 200 m 2022 SG 8.0-167 DD 8MW 167 m Curr ntl on oin V236-15MW 15MW 236m 2024 V174-9.5MW 9.5MW 174 m Curr ntl on oin V st s V164-9.5MW 9.5MW 164 m Curr ntl on oin V164-10MW 10MW 164 m Curr ntl on oin 12MW 220 m 2022 GE H li d -X 13MW 220 m 2022 14MW 220 m 2022 133 Offshor Wind Ro dm p for Sri L nk Non of th offshor WTGs in T bl 13.1 h v t b n m nuf ctur d or inst ll d in Sri L nk , nd Sri L nk h s no m nuf cturin for onshor or offshor WTGs. How v r, n i hborin Indi h s lr d built stron production m rk t for onshor WTGs nd h s th fourth l r st b s of wind pow r inst ll d lob ll [79]. Indi h s num rous production f ciliti s for WTG compon nts includin bl d s nd n c ll s. All thr l din offshor OEMs (r f. T bl 13.1) h v st blish d m nuf cturin f ciliti s in th countr for th ir onshor WTG portfolio or work with loc l production p rtn rs for th production of compon nts [80] [81] [82]. It is lik l th t v n if th r is si nific nt pip lin of offshor proj cts in Sri L nk , th inv stm nt risk m b too subst nti l to inv st in Sri L nk n f ctori s, b c us v n in th v nt of hi h rowth sc n rio for offshor wind, m nuf cturin suppl ch in inv stm nts r lik l to r m in lusiv , s th s will r vit t to th l r r Indi n m rk t. A full -d v lop d Indi n offshor wind m rk t will sil b bl to h ndl production nd tr nsport tion of l r offshor WTG compon nts to s rv th sm ll r Sri L nk n m rk t. A furth r ch ll n for th dv nt of th Sri L nk n offshor WTG suppl is th t curr nt- n r tion offshor WTGs r d si n d for hi h- v r , hi h- xtr m wind sp d r im s. How v r, Sri L nk pr s nts wind r im with low r v r wind sp ds. Utili in sm ll r WTGs incr s s th numb r of WTGs, nd found tions n c ss r to d si n, tr nsport, inst ll, nd m int in, thus m kin it ch ll n in to low r th cost of n r vi conomi s of sc l . How v r, v n utili in sm ll r WTGs would not provid si nific nt boost to loc l cont nt production in Sri L nk , s th r r no xistin onshor f ctori s suppportin WTG production. Th s suppl ch in b n fits would r vit t to Indi . 13.3.1 Bl d s On of th m in compon nts of WTG is th rotor nd, mor sp cific ll , its bl d s. Th s dict t th n r c ptur , tr nsformin th n r inh r nt in th wind flow into rot tion l torqu , which is subs qu ntl conv rt d to l ctric l pow r usin n r tor. In r c nt rs, th offshor wind m rk t h s s n n stonishin incr s in bl d sp n. Whil in 2017, 5MW WTG pr s nt d bl d l n ths of round 60-70m nd h d rotor di m t rs of pproxim t l 130m, mod rn WTG mod ls h v incr s d th ir bl d l n ths up to 107m [83], m nuf ctur d b GE subsidi r LM Windpow r. GE h s ppli d th s bl d s on its H li d -X protot p , which h s b n r ct d on t st sit in th port of Rott rd m nd is curr ntl producin pow r. Th hu bl d si not onl r quir s hi h st t chnic l d si n nd f bric tion c p biliti s, but it lso impos s constr ints for tr nsport tion nd inst ll tion. Ov r th rs, WTG bl d s h v b n m inl produc d from l ss fib r-r inforc d pol st r or pox . N w r m t ri ls lik c rbon fib r h v b n consid r d for production du to th ir hi h ri idit nd str n th s w ll s low r w i ht. How v r, sinc th m t ri l is xp nsiv nd difficult to work with its us h s b n m inl r strict d to th supportin l min t s. 13 Suppl Ch in 134 FIGURE 13.4: BLADES READY FOR TRANSPORTATION AT THE PORT. Non of th bi thr offshor WTG m nuf ctur rs h v bl d f ctori s in Sri L nk , nd it is hi hl unlik l th t th will st blish th s f ciliti s in th futur . How v r, ll thr h v st blish d in-hous c p biliti s in Indi [84] [85] [86], which would lik l d pt th ir f ctori s to h ndl offshor wind rowth in th r ion. 13.3.2 N c ll s, Hub, nd Ass mbl M jor WTG compon nts such s th rotor hub, n c ll , rbox, nd b rin housin r quir l r st l c stin s, whil r wh ls, b rin rin s, b rin s, sh fts, nd tow r fl n s r quir st l for in s. Onl limit d numb r of Europ n foundri s c n cop with th r quir d si to c st th s compon nts. Ex mpl s of st blish d suppli rs r Bru ck, Eusk , Fond ri Vi v n s , Si mp lk mp, Tor low, nd VTC. Sri L nk curr ntl h s foundr industr th t could support som sm ll r compon nts th t o into th production of th rotor-n c ll ss mbl ; how v r, it is unlik l th t l r r c stin s nd compon nts could sil b t ckl d b curr nt m rk t p rticip nts [87], who r focus d on r sid nti l nd li ht n in rin products. FIGURE 13.5: VESTAS V236 15MW PROTOTYPE NACELLE. Sourc : V st s 135 Offshor Wind Ro dm p for Sri L nk Wh n th lon bl d s of n offshor WTG tr nsform th wind’s kin tic n r into rot tion l mov m nt, th cr t tr m ndous mount of torqu on th m in sh ft of th driv tr in. Th rbox is th n in ch r of conv rtin this hi h torqu into low r torqu d, hi h-sp d sh ft th t driv s th n r tor. Giv n th lo istic l ch ll n s nd hi h m int n nc nd r p ir costs t s , offshor rbox s r xp ct d to b hi hl robust nd r li bl nd r on of th most m ch nic ll dv nc d compon nts of WTG. Comp r d to th 3-sp d rbox v ri nts commonl found in th onshor wind industr , offshor WTGs h v turn d into mid-sp d nd dir ct driv options, tr nd th t is lik l to continu . Most r c ntl , di it l h dr ulic driv tr in options r lso b in t st d. Th l ctric n r tor conclud s th n r conv rsion b tr nsformin th m ch nic l n r into l ctric l n r , subs qu ntl disch r d to th rid. In th offshor wind industr , rl ss, dir ct-driv solutions nd driv tr ins consistin of rbox s with p rm n nt m n t n r tors h v prov n to b th most cost- ff ctiv nd t chnic ll r li bl option. As r sult of th diff r nt t chnic l ppro ch s to driv tr in solutions, this compon nt h s b com incr sin l product-sp cific, l din to implic tions for suppl v il bilit s th st blishm nt of n w suppli r for such subcompon nt r quir s si nific nt l d tim . As th si of futur n r tion rbox s nd mid-sp d or dir ct driv n r tors continu s to incr s , d v lop rs will pr f r co st l sit s loc t d clos to n c ll ss mbl f ciliti s. Suppli rs lik Win r , Bosch R xroth, nd ZF Wind curr ntl s rv th Europ n m rk t; how v r, V st s is th onl Europ n m nuf ctur r th t us s rbox for th ir offshor WTGs, limitin th pot nti l for Europ n rbox suppli rs in Sri L nk . In ddition, th s comp ni s r lr d st blish d in Indi n m rk t, nd r not lik l to s t-up f ctori s to sp cific ll s rvic th Sri L nk n m rk t [88] [89]. 13.3.3 Tow rs Th tow rs for offshor WTGs r v r simil r in composition s thos for onshor sit s. How v r, du to th h rsh nvironm nt, th tow rs lso h v hi h r qu lit r quir m nts ( . ., nti-corrosion co tin ) th n tow rs for onshor WTGs. Accordin l , pot nti l suppli rs must und r o hi h r qu lific tion proc ss durin s l ction b th OEMs. Simil rl to th WTG bl d s, th tow rs for offshor WTGs h v p rticul r lo istic l r quir m nts. For x mpl , th wid r b s di m t r of th tow rs mi ht sil xc d th tr ffic und rp ss r quir m nts. WTG t p s, such s th V164-8.0MW from V st s, us tow r b s di m t r of 6.5m. Th r for , th m nuf cturin f ciliti s r xp ct d to b loc t d n r th co st nd in clos proximit to th proj cts to t ckl lo istic l constr ints. As WTG si s continu to incr s , th incr s in wind f rm si h s not tr nsl t d proportion ll into n incr s in tow r d m nd. Wh n usin 15MW WTG, 1GW wind f rm inst ll tion will r quir 67 tow rs inst d of 160 n d d for sm ll r 6MW WTG. With th tr nd tow rds l r r structur s, sm ll r numb rs of tow rs will b produc d nd m pos ch ll n s for d v lopin n offshor tow r f cilit without suffici ntl l r pip lin . This dil mm is t th h rt of th pu l th t ov rnm nts must solv in ord r to ttr ct th much-d sir d offshor wind m nuf cturin industr jobs, which will not h pp n without buildin si nific nt pip lin . As uid lin , m nuf ctur rs mi ht r quir n output l v l of 100-200 tow rs p r r ov r p riod of fiv rs to justif inv stm nt in n w f ctor . Accordin l , tow r suppli rs should xp ct to suppl two or mor WTG m nuf ctur rs to support th inv stm nts th will n d to m k confid ntl . How v r, th hi h tr nsf r bilit of 13 Suppl Ch in 136 offshor WTG m nuf cturin mi ht miti t this risk, nd n w co st l f ciliti s could lso s rv onshor wind tow r d m nd. Europ n tow r suppli rs lik W lcon or Tit n Wind En r (Europ ) nd Chin s suppli rs lik CS Wind or Tit n Wind (Asi ) will prob bl not find much pot nti l to do n w busin ss in tow r production, s this is r l tiv l low-t ch, low dd d-v lu compon nt with m tur m nuf cturin . Th offshor production mi ht w ll b s rv d b curr nt onshor tow r m nuf ctur rs in Indi but is not lik l to b sil st blish d in Sri L nk . 13.4 BALANCE OF PLANT BoP r f rs to v rious supportin nd uxili r compon nts of n offshor wind f rm, xclusiv of th WTG suppl . This includ s WTG found tions, nd l ctric l infr structur , both offshor nd onshor (c bl s nd subst tions). 13.4.1 Found tion Suppl Th found tions on which offshor WTGs r inst ll d h v historic ll b n fix d to th s b d. L t l , th d v lopm nt of flo tin found tions h s t k n off, but th t chnolo is still in th rl -d v lopm nt st , nd onl f w d monstr tion/pr -comm rci l proj cts h v b n d plo d worldwid . Within th roup of fix d found tions, thr m in t p s xist — r vit -b s d concr t found tions for sh llow w t rs, st l monopil s for w t r d pths of 20m-50m, nd st l j ck ts for d p r sit s up to 60m. Giv n th low r cost nd simpl d si n, th v st m jorit of th inst ll d Europ n offshor wind proj cts r l on st l monopil s nd j ck t structur s, with som n r-shor proj cts utili in r vit -b s d concr t found tions. How v r, n m r in int r st in r vit -b s d found tions h s b n obs rv d, m inl du to simplifi d inst ll tion nd m nuf cturin , lthou h th si of th found tions n d d for mod rn offshor WTGs now m ns th t th si of th found tions is b comin limitin f ctor in th ir production. Thus, th choic of found tion is clos l link d to th sit prop rti s (i. ., w t r d pths, t p of s b d, nd w v lo din ) nd th WTG si , but th loc l f bric tion nd inst ll tion c p biliti s lso pl n ss nti l rol . Gr vit -B s d Concr t Found tions Gr vit -b s d found tions r l r , r inforc d concr t structur s th t do not r quir pilin . Inst d, th h v si nific nt footprint (>30m in di m t r) nd r l on th ir w i ht to r sist ov rturnin . Two m jor t p s of d si ns xist nd r l on diff r nt inst ll tion m thods. Th first d si n t p is non- buo nt found tion, which llows th pr -inst ll tion of th WTG on top of th found tion qu sid . For inst ll tion, th whol structur c n b tr nsport d to th sit mplo in h v lift cr n v ss l. Th s cond lt rn tiv is buo nt d si n, which c n b tow d to th sit nd th n b ll st d with s nd nd w t r to sink th structur to pr p r d loc tion on th s b d. Th WTG nd tow r r th n inst ll d onto th found tions th r ft r. Not th t in th c s of flo tin r vit found tions, th WTG nd Tow r m b inst ll d t th qu sid b for flo tin out to th sit . This r mov s th n d for h v lift j ckup v ss l for th WTG nd Tow r inst ll tion, which c n som tim s b bottl n ck du to conflictin r quir m nts from oth r windf rm inst ll tion lob ll . 137 Offshor Wind Ro dm p for Sri L nk Gr vit s (Arup), BAM, nd V n Oord r thr suppli rs curr ntl workin on th buo nt conc pts, whil Bosk lis or GBF, consortium of R mboll, Fr sin tt, nd BMT h v focus d on th non-buo nt ppro ch. With w i ht xc din 3,000 tonn s, nd much h vi r w i ht for fill d, buo nt d si n, r vit -b s d found tions r th pr f rr d found tion on sh llow, c lm w t rs nd w ll-s dim nt d s b d. Th h v b n m inl inst ll d in th B ltic S ( . ., t K r h mn in Sw d n). N w h brid concr t -st l d si ns promis to m k r vit -b s d found tions pplic bl in h rsh r nd d p r nvironm nts; how v r, non of th s h v b n ppli d t t full sc l in comm rci l proj cts. Gr vit -b s d found tions do not r quir pilin but r m inl pplic bl on sit s with rock-h d d s b d. Th ir inst ll tion on xpos d, d p r w t rs lik th North S is difficult, how v r. In Sri L nk , it is lik l th t th us of r vit -b s d found tion t chnolo i s would r quir si nific nt port up r d s, s stor will lik l xc d th b rin c p cit t Sri L nk n ports du to th normous dim nsions nd w i hts of th s structur s. Sri L nk n construction comp ni s such s Acc ss En in rin m b int r st d in th construction of th s found tions for th Sri L nk n m rk t. Monopil s Monopil s r l r tubul r st l structur s, which r curr ntl up to 80m l n th. Th consist of tubul r s ctions roll d out of st l pl t nd th n w ld d to th r. Onc tr nsport d to sit , th inst ll tion cr w t pic ll driv s th monopil s into th s b d with h dr ulic pil h mm r, or pr -drills th pil b for h mm rin if soil conditions r ch ll n in . A tr nsition pi c (TP) is th n dd d, which is mount d on top of th monopil nd rout d or bolt d into position. Th WTG tow r is th n bolt d to th tr nsition pi c , which h lps to l v l tow r, cts s n tt chm nt point for bo t l ndin s, cc ss l dd rs, nd work d cks. Monopil s h v lon prov n th ms lv s in th industr s th most cost- ff ctiv solution for offshor wind. Th t chnolo is tri d nd t st d for v n th l r st WTGs on th m rk t, nd proj cts with w t r d pths of 40+m r usin or consid rin monopil found tions. Th succ ss of th monopil found tion is prim ril du to its simplicit , which h s llow d for f st volution s th bilit of m nuf ctur rs to r tool f ctori s to h ndl incr s d st l thickn ss nd di m t r h s incr s d. In 2012, di m t r of 6m w s consid r d th m ximum, which incr s d to 9m b 2015. In r c nt rs how v r, th industr h s push d this bound r v n furth r nd now di m t rs of up to 11m with thickn ss of 150mm nd chi vin tot l w i hts of up to 2,000 tonn s h v b n possibl . M jor pl r SIF h s b n bl to provid th s c p biliti s sinc 2017, nd in 2019, th G rm n m nuf ctur r St lwind Nord nh m lso fin li d th suppl of 40 monopil s with this di m t r for th T iw n s Offshor wind f rm Yunlin. Furth r st blish d m rk t suppli rs r Bl dt, EEW SPC, nd Bilfin r (now p rt of th VTC Group). Curr ntl , th l r st monopil s b in d si n d in th EU will not imm di t l b provid d b Sri L nk n suppli rs, with Indi n or Europ n suppli rs rollin th monopil s for Sri L nk n proj cts in n ith r low or hi h rowth sc n rio. 13 Suppl Ch in 138 FIGURE 13.6: MONOPILE YARD AT THE PORT OF ROTTERDAM. Sourc : SIF J ck ts Th most common option for non-monopil st l found tion is th thr - or four-l d st l j ck t, cross-br c d nd w ld d structur usin st l tub s, nd wh r ch l is fix d to th bottom usin st l pin pil s t pic ll 2-3m in di m t r. This t p of found tion h s b n xt nsiv l utili d in th offshor oil AND s industr nd is oft n us d to support offshor l ctric l infr structur . It is commonl us d wh r w t r d pths xc d th limits of pplic bilit for monopil s or wh r ch ll n in soil conditions xist. J ck ts h v b n ppli d on num rous Europ n offshor wind proj cts, includin Thornton B nk, Wikin r, Nords Ost, B ltic 2, nd E st An li 1, nd r pl nn d on furth r sit s lik Scottish N rt N G oith s w ll s on m n Asi n proj cts, includin in T iw n nd Chin . FIGURE 13.7: JACKETS BEING TOWED TO SITE. Sourc : COWI 139 Offshor Wind Ro dm p for Sri L nk On of th st blish d suppli rs of j ck ts is UK-b s d BiF b, which d liv r d j ck ts for th B tric nd Alph V ntus d monstr tion proj cts nd th Ormond comm rci l proj ct. Oth r l din pl rs r OWEC Tow r, G rm n suppli r EEW D nish Bl dt, Sp nish N v nti , nd B l ium comp ni s SIF & Smuld rs. Th m rk t could b ttr ctiv for Sri L nk n ship rds. Comp ni s with shipbuildin or offshor oil pl tform xp ri nc m h v n opportunit to p rticip t in this m r in m rk t for offshor WTG j ck ts, nd simil rl tow rs. How v r, th n d to consid r th t whil th production of j ck ts for oil nd s focus s on f w but xp nsiv units, th suppl for offshor wind conc ntr t s on l r production volum t low cost. Th r for , th ir m nuf cturin f ciliti s will r quir hi h l v l of st nd rdi tion nd proc ss optimi tion. As with monopil s, it is not lik l for Sri L nk n suppli r to nt r th j ck t f bric tion suppl m rk t. From n conomic point of vi w, th si nific nt inv stm nt risk to nt r th offshor wind m rk t m k s mor s ns for Indi n m nuf ctur rs, who c n l v r oil nd s or onshor wind xp rtis , nd r du ll r mp-up th ir c p cit to suppl th Sri L nk n m rk t. Giv n th limit d si of th Sri L nk n pow r d m nd, j ck t found tions r unlik l to b in hi h d m nd for offshor wind proj cts in Sri L nk , v n in hi h- rowth sc n rio. 13.4.2 El ctric l Infr structur Anoth r m jor c t or in th BoP is th suppl of th l ctric l infr structur n d d to disch r th l ctric l pow r from th offshor WTGs to th rid onshor . Th first pi c of l ctric l infr structur is th s st m of s v r l strin s of m dium volt (MV) subs c bl s, or int r- rr c blin (IAC), which conn cts th WTGs nd subs qu ntl f ds into loc l offshor subst tion. Th s cond pi c , th offshor subst tion, th n st ps up th volt for tr nsf r to th shor usin HV xport c bl s. Export c bl s th n tr nsf r pow r from th subst tion to subst tion onshor . Th l ctric l l out hi hl d p nds on th dist nc to th shor nd th si of th wind f rm. At dist nc s b ond 80-100km from shor or on pow r isl nds wh r s v r l wind f rms f d into c ntr l hub, hi h volt dir ct curr nt (HVDC) ppro ch is lso n option. This pos s th dv nt of r ducin l ctric l loss s on th c blin , but th inv stm nt for such s st ms is si nific nt nd lon l d tim of fiv to s v n rs is lik l . To d t , onl h ndful of sit s in G rm n h v ppli d HVDC s tups, nd for Sri L nk , th most lik l sc n rio for th short t rm r sit s within r ch for HVAC c bl s. Export nd Int r- rr C blin Th int r- rr c blin conn cts th WTGs to n offshor subst tion but c n lso b ppli d to conn ct AC coll ctor subst tions to dir ct curr nt (DC) rid conn ction. Th v st m jorit of IAC r m dium volt lt rn t curr nt conn ctions (MVAC) r t d t 33kV nd m d from cross- link d pol th l n (XLPE). Th r c nt d v lopm nts in WTG si h v lso l d to pot nti l d si ns usin 66kV c blin s b sis for int r- rr c blin , which h s th dv nt of r ducin l ctric l loss s. This pro r ss would lso llow k pin th r l tiv numb r of WTGs curr ntl lloc t d to sin l strin (b tw n 6-8 p r strin ), d spit incr sin pow r p r WTG. Whil th rr c bl suppl h s historic ll b n s p r t d from th inst ll tion contr ct, this tr nd is b innin to ch n s d v lop rs striv tow rds combin d contr ct to minimi int rf c risks. For such int r t d c s s, it is most lik l th t th m in contr ctor will r m in th c bl suppli r. 13 Suppl Ch in 140 Th int rconn ction of th offshor st tion to th l nd-b s d rid is p rform d b m ns of hi h volt xport c bl s. Th s r consid r bl h vi r nd lon r th n th int r- rr c bl s. Th s will most lik l b lt rn tin curr nt (AC), which h s b n th most common s tup to d t . A hi h volt lt rn tin curr nt s tup (HVAC) could r ch volt s of 320kV. Sri L nk is hom to ACL C bl s who should b bl to d v lop production c p cit to h lp m t som suppl d m nds for Sri L nk n proj cts, nd who r ctiv in th int rn tion l c bl m rk t. Offshor Subst tion Suppl Th offshor subst tion (OSS) coll cts th pow r n r t d from th WTGs nd conv rts it to hi h r volt l v l to xport it ov r subs c bl s to l nd-b s d tr nsform r, which subs qu ntl inj cts it into th tr nsmission rid. Th subst tion compris s of tr nsform rs, switch r, controls, nd fir prot ction s st ms nd n r ll ll r l v nt switchin nd prot ction s st ms n c ss r to r spond to f ults. An oth r n c ss r pow r l ctronics nd uxili r low volt s st ms r inst ll d t th OSS s w ll. Th ov r ll OSS found tion supports th l ctric l subst tion its lf nd ll compon nts for cc ss nd t mpor r ccommod tion f ciliti s (to th r c ll d topsid ), cov rin n r of round 30m x 30m nd c n r ch s v r l stori s in si (s Fi ur 13.8). Th tot l w i ht of th OSS topsid c n v r b tw n 1,000 nd 2,000 tonn s or mor nd, simil rl to WTG found tions, is usu ll inst ll d on j ck t found tions nd in sin l c s s on monopil s or concr t r vit found tions. FIGURE 13.8: OFFSHORE SUBSTATION AT BORSELLE BETA WIND FARM. Sourc : HSM Offshor En r 141 Offshor Wind Ro dm p for Sri L nk Th OSS is compl x s st m, hostin v st mount of quipm nt nd num rous int rf c s, but suppl c n rou hl b divid d into th thr followin c t ori s: ■ Provid rs of th support structur s (j ck ts, monopil s, or r vit found tions), ■ Suppl of topsid s, nd ■ Suppl of l ctric l quipm nt. Th support structur s c n b provid d b th s m comp ni s providin th found tions for th WTGs. Topsid s r commonl produc d b l r rds lik Bl dt, Bilfin r, H r m [90], H rl nd & Wolf [91], or S mco M ritim [92]. Sri L nk do s not sp ci li in th f bric tion of h v structur s for m rin pplic tions, how v r, loc l firms such s Colombo Dock rd m b bl to f bric t sm ll r compon nts ( . ., ‘s cond r st l’) or pot nti ll b skill d up to ss mbl compon nts. Onl limit d numb r of cruci l pl rs suppl th l ctric l quipm nt for th offshor wind m rk t. Th k pl rs holdin most of th lob l m rk t sh r r ABB, Si m ns, Alstom, nd CG Pow r. A sin l offshor subst tion c n t pic ll conn ct up to 1GW of wind pow r, so Sri L nk is unlik l to r quir suffici nt numb rs n d d to ttr ct m nin ful loc l suppl ch in inv stm nts. 13.4.3 Onshor Infr structur nd Subst tions Onc th volt is st pp d up b th OSS nd tr nsport d to l nd utili in xport c bl s, th pow r is r c iv d t co st l onshor subst tions, which cl n th pow r nd conv rt it to b int r t d into th onshor tr nsmission rid. Th r is lmost no diff r nc b tw n onshor subst tions for wind f rms nd n oth r l nd-b s d pow r f ciliti s, so dom stic pl rs nd m nuf ctur rs such s DIMO [93], who is p rtn r of Si m ns nd sp ci li s in n in rin nd proj ct m n m nt for pow r tr nsmission, pow r distribution, r n w bl pow r pl nts, nd industri l pow r solutions, could suppl this wind f rm compon nt. 13.5 INSTALLATION AND COMMISSIONING VESSELS Th inst ll tion of n offshor wind f rm r quir s wid v ri t of v ss ls, ch with sp cific d si n nd purpos , nd rou hl split into th followin v ss l t p s: ■ H v -lift v ss ls ■ D rrick b r s ■ Tr nsport tion b r s ■ J ck-up b r s without propulsion ■ S lf-prop ll d j ck-up v ss ls ■ Tr nchin v ss ls 13 Suppl Ch in 142 ■ C bl l in b r s ( nchor driv n) ■ C bl l in v ss ls ■ Rock dumpin v ss ls (if offshor c bl crossin s occur) ■ Gu rd v ss l (durin inst ll tion b for hot commissionin ) Th s v ss ls s rv to inst ll th WTG found tions, th WTGs, th IAC nd xport c blin , nd th offshor subst tion. Aft r compl tin construction nd commissionin , oth r v ss ls r involv d, sp cific ll r l t d to O&M. Th ports involv d in th construction n d to compl with sp cific r quir m nts to ccommod t th m ccordin to th t p of v ss l. T pic ll , inst ll tion v ss ls r d plo d worldwid , s th m rk t si for offshor wind is limit d within iv n countr nd th upfront v ss l buildin costs r too si nific nt. 13.5.1 Found tion Inst ll tion V ss ls Th found tion inst ll tion v ss ls first tr nsport th found tions to th sit nd th n x cut th sp cific inst ll tion proc ss d p ndin on th found tion t p , . ., pilin for monopil s. Th s t sks r usu ll p rform d b ith r flo tin h v lift v ss ls nd sh rl cr n v ss ls (in combin tion with n ddition l compon nt f din v ss l) or b j ck-up v ss ls, m inl us d for WTG inst ll tion. A v ri t of v ss ls h v p rform d monopil inst ll tion, . ., h v lift v ss ls lik S w s’ “St nisl v Yudin,” cr n v ss ls lik V n Oord’s “Sv n n,” or j ck-up v ss ls lik “A olus.” Th Sri L nk n industr would n d to m k m jor inv stm nts to brin found tion inst ll tion v ss ls to th Sri L nk n m rk t. How v r, Sri L nk n ship rds, which lr d support th production of O&M v ss ls for w st rn d v lop rs [94], could pot nti ll construct l r r v ss ls for th inst ll tion of found tions. But th n in, such n inv stm nt would r l on si nific nt dom stic pip lin of proj cts to r li shipbuildin for dom stic us . Whil this pip lin is unlik l , l r r, r ion l pip lin offshor would s Sri L nk n v ss ls us d in Indi n proj cts nd pr s nt m n opportuniti s for rowth. Th offshor wind industr r quir s j ck-up v ss ls with cr n c p citi s of t l st 1,000 tonn s nd l r d cks to ccommod t si nific nt numb r of j ck ts (id ll fiv ) p r trip. Th volution to l r r WTG si s in Europ h s l d to surplus of m dium-si d j ck-up v ss ls in th m rk t th t would b us ful for supportin sm ll r WTG inst ll tions in Sri L nk n w t rs. 143 Offshor Wind Ro dm p for Sri L nk 13.5.2 WTG Inst ll tion V ss ls WTG inst ll tion v ss ls lso cov r tr nsport tion to th sit nd inst ll tion of tow rs nd WTGs. B c us of th pr cision nd st bilit n d d to inst ll th n c ll nd bl d s, ll comm rci l proj cts h v sol l ppli d j ck-up v ss ls s b sis for WTG inst ll tion. Th rl rs of th Europ n industr w r still bl to r l on th pplic tion of n r l-purpos j ck-up b r s from th oil nd s s ctor, nd t th t tim , th s v ss ls w r sc rc in th m rk t. How v r, b c us of sit s with incr sin w t r d pths b ond 25m, in th l st t n rs, m n of th l din suppli rs lik th UK-b s d MPI Offshor nd S j cks or Norw ’s Fr d. Ols n Windc rri r st rt d inv stin in j ck-up v ss ls d si n d to th sp cific n ds of th offshor wind industr . FIGURE 13.9: WTG INSTALLATION VESSEL BOLD TERN. Sourc : Fr d. Ols n Windc rri r Furth r x mpl s of st blish d pl rs bl to provid th s v ss ls includ B l i n J n d Nul nd DEME (who cquir d D nish A2S ), G rm n SAL H v Lift, D nish Swir Blu Oc n, nd Dutch V n Oord. M n of th s ctors r curr ntl lso ord rin n w cr n s in ord r to cop with th incr sin liftin h i hts nd w i hts of th n xt n r tion WTGs. Accordin l , th s purpos -built v ss ls r now wid l v il bl in th m rk t, sp ci ll thos bl to op r t with sm ll r WTGs. Giv n th t th s Europ n suppli rs h v ord r d th ir v ss ls in Asi in th p st (prim ril in Chin nd Kor ) nd th t th ir st t -of-th - rt fl t c n op r t lob ll , th ch nc for dom stic suppli rs to nt r th WTG inst ll tion v ss l m rk t is v r sm ll. How v r, s th m rk t rows worldwid , mor opportuniti s m m t ri lis . 13 Suppl Ch in 144 13.5.3 C bl Inst ll tion V ss ls Th r r two diff r nt m thods wh n usin inst ll tion v ss ls for offshor c bl s. Th first m thod p rforms simult n ous l nd buri l proc ss with th id of plou h, whil th s cond m thod splits th t sks p rformin th surf c l first, nd subs qu ntl ppli s th buri l usin j ttin tool controll d b r mot l op r t d v hicl (ROV). Th sit conditions d t rmin th ppro ch for p rticul r sit . This s m proc ss is p rform d for th IAC nd th xport c blin nd r quir s two diff r nt kinds of v ss ls for ch t sk. Export c bl s r pr f r bl inst ll d in on sin l l n th nd n d bi r ships with l r r c bl c rous l. V ss ls for IAC r sm ll r th n for xport c bl s, but du to th hi h numb r of c bl pulls nd t rmin tions t ch found tion, th IAC inst ll tion is consid r d th mor difficult t sk. Whil in th p st, th t chnic ll ch ll n in proc ss of c bl inst ll tion h s l d to si nific nt probl ms nd w s lon w k point of th industr , th s ctor h s m tur d, nd sp ci li d comp ni s with purpos -built v ss ls h v d v lop d in th m rk t. On of th l din suppli rs is Subs 7, which cquir d c bl inst ll r SIEM Offshor in 2018. L r c bl m nuf ctur rs lik Pr smi n or N x ns nd lso m jor EPC contr ctors lik V n Oord h v lso inv st d in d dic t d v ss ls for th ir portfolio. Still, th t sk r quir s xp ri nc d st ff nd w ll-tr in d v ss l cr ws nd r m ins t chnic ll ch ll n in . Ev n thou h c bl inst ll tion provid rs ct lob ll , loc l inv stors will r m in h sit nt to build dom stic purpos -built v ss ls without stron polic support nd commitm nt to l r pip lin from th ov rnm nt. Ev n with this support, th Indi n m rk t will continu to driv th d m nd for purpos -built v ss ls. FIGURE 13.10: CABLE INSTALLATION VESSEL. Sourc : V n Oord 13.5.4 Offshor subst tion inst ll tion v ss ls Th inst ll tion of th offshor subst tion topsid s r quir s m jor h v lift v ss ls, but th t sk is v r simil r to inst llin sm ll r oil ri s. As th mount of r quir d subst tion inst ll tions is r l tiv l sm ll this will prob bl k p th m rk t limit d for v ss ls sp cific ll d dic t d to th s t p s of ctiviti s. 145 Offshor Wind Ro dm p for Sri L nk 13.6 OPERATION AND MAINTENANCE As m ntion d pr viousl , O&M ctiviti s m k up pproxim t l 30 p rc nt of th lif tim costs of n offshor wind f rm nd will to wid xt nt b loc ll -sourc d. H nc , O&M ctiviti s r pr s nt on m in r in which th Sri L nk n suppl ch in will ttr ct si nific nt inv stm nt. 13.6.1 Wind F rm Op r tion Th d il op r tion of th wind f rm will r quir wind f rm control c nt r for monitorin th production nd p rform nc of offshor WTGs, which, d p ndin on its c p biliti s, d v lop r or own r m choos to build nd op r t or subcontr ct th t sk to n ss t m n m nt comp n . Th op r tions c nt r will work clos l with stor f ciliti s, v ss l op r tors, nd th m int n nc or ni tion. Wind f rm op r tion is b l ncin ct b tw n m n in th l ctricit production whilst consid rin th lo istics of s rvicin offshor structur s nd m chin r . B c us of this, th op r tion t pic ll r quir s d dic t d CTV nd d dic t d m int n nc t m th t m s rvic on or mor wind f rms. Th work could consist of coordin tin simpl , nnu l, or sch dul d m int n nc nd insp ction t sks, monitorin th s rvic provid r, nd h ndlin w rr nt cl ims. 13.6.2 WTG M int n nc nd S rvic T pic ll , WTGs r provid d with w rr nt p riod, wh r th WTG suppli r is r sponsibl for m int n nc . Th m int n nc or ni tion is r sponsibl for sp r p rts inv ntor , nsurin th v il bilit of tr in d t chnici ns nd d qu t v ss l c p bilit to s rvic th WTGs. B l ncin th s constr ints is ch ll n in t sk. Th d -to-d m int n nc of WTGs nd r pl c m nt of minor p rts m b r th r sil ccomplish d; how v r, p rti l or compl t r pl c m nt of m jor compon nts such s rbox s, b rin s, bl d s, nd l ctric l quipm nt m r quir th sourcin of it ms th t h v xt nd d l d tim s. G n r ll , m jor r p irs lso r quir sp ci l v ss ls to inst ll, which r subj ct to m rk t v il bilit nd pricin . Suit bl -qu lifi d nd xp ri nc d p rsonn l r cruci l to und rt kin ff ctiv O&M. T chnici ns t pic ll tr v l out to th sit v r d b bo t (s Fi ur 13.11), tr nsf r cross to th WTG (s Fi ur 13.12), climb th WTG, und rt k th m int n nc work, nd th n r p t, s ppropri t b for r turn to shor . FIGURE 13.11: HIGH SPEED SERVICE VESSEL. Sourc : COWI 13 Suppl Ch in 146 It is quit ph sic l work in hostil nvironm nt nd sp cific c rtific t s nd ccr dit tions r r quir d to p rform th job s f l offshor nd t h i hts. Furth r, WTG m nuf ctur rs m us sp cific quipm nt th t diff r from oth rs, nd t chnici ns m r quir multipl c rtific tions to work on diff r nt WTG t p s. M n tr inin provid rs h v op n d up to m t th d m nd nd now includ cours s provid d b m nuf ctur rs (such s Si m ns), hi h r duc tion cours s, nd comm rci l tr inin provid rs. Rou hl , th s ctor n ds b tw n 0.5 nd 1.5 full-tim quiv l nt jobs p r op r tion l WTG. FIGURE 13.12: OFFSHORE WTG TECHNICIAN ACCESSING A WTG. Sourc : Ørst d WTGs t pic ll com with fiv - r w rr nt nd n O&M r m nt from th m nuf ctur r. Durin this p riod, th m nuf ctur r will t pic ll mplo th m jorit of t chnici ns on sit . Aft r th w rr nt p riod, th own r/op r tor c n opt to xt nd th O&M r m nt or t k ov r r sponsibilit for th pl nt nd dir ctl mplo th t chnici ns. Som mor ‘h nds-on’ own rs t k r sponsibilit rli r nd h v jointl - mplo d t chnici ns workin on th wind f rm durin th w rr nt p riod. 13.6.3 B l nc of Pl nt M int n nc Th m int n nc or ni tion is lso r sponsibl for m int inin th found tions nd l ctric l infr structur , p rformin p riodic insp ctions on subst tions on- nd offshor , nd c rr in out s b d surv s to nsur th subs c bl s r m in buri d. Th s works m b s p r t from th WTG O&M nd c n quickl b ddr ss d b sp ci list comp ni s in th loc l m rk t. Th s ctiviti s c n r quir sp ci li d v ss ls nd quipm nt, such s Offshor S rvic V ss ls (OSVs) sp ci ll quipp d for th t sks, nd t chnici ns with sp ci l tr inin in c rt in r s, such s ROVs, divin , w ldin , nd oth r t sks. 147 Offshor Wind Ro dm p for Sri L nk 13.7 DECOMMISSIONING As offshor wind is r l tiv l oun industr , v r f w inst ll d offshor wind f rms h v b n d commission d. How v r, d commissionin should b ddr ss d rl on in proj ct, with pl ns nd fin nci l u r nt s som tim s r quir d s p rt of th initi l p rmittin proc ss. T pic l s rvic s th t r r quir d includ t chnic l n in rin , proj ct m n m nt, nd pl nnin nd offshor works coordin tion. It is not unusu l to cr t diff rin d commissionin conc pts utili in diff r nt quipm nt or v ss ls. Whil Sri L nk is lon w from d commissionin offshor wind f rms, m n loc l comp ni s r lik l to b n d t th nd of n offshor wind f rm’s us ful lif . Loc l ports r lik l to pl c ntr l rol in d commissionin ctiviti s s th r w ll pois d to h lp coordin t , coll ct, stor , nd scr p quipm nt r mov d offshor . Furth rmor , loc l h v quipm nt comp ni s m b n d d to produc sp ci l, custom-d si n d quipm nt. Loc l n in rin nd offshor surv support will lik l b r quir d to id in pl nnin nd pr p r tion. Sp ci list nd skill d w ld rs, l bor rs, div rs, nd oth r quipm nt op r tors r lik l to b n d d, lon with tr nsport tion b r s nd oth r v ss ls for scr p r mov l nd r c clin . 13.8 SUPPLY CHAIN ASSESSMENT Th r r r l tiv l f w b n fits for proj cts to sourc loc ll for m n of th quipm nt/m t ri ls n c ss r to build nd op r t n offshor wind f rm b c us th ith r c rr r l tiv l l r inv stm nts with si nific nt risk, or th r is w ll- st blish d int rn tion l (Europ n, Indi n) c p cit to m t th d m nd which would b difficult for Sri L nk n comp ni s to n tur ll comp t with. Th ov r ll si of th Sri L nk n l ctricit m rk t s riousl limits options to d v lop th loc l suppl ch in, nd loc l inv stm nts would n d to b b s d not onl on th n ds of th Sri L nk n m rk t, but lso on s rvin th Indi n m rk t. Th r nkin s, b s d on m trics k pin li nm nt with simil r ro dm ps from oth r countri s in th World B nk Group’s ro dm p s ri s, r xpl in d in T bl 13.2. Th ss ssm nt w s m d in consult tion with loc l consult nts nd is divid d into th followin r s: ■ Tr ck R cord nd C p cit in Offshor Wind ■ C p bilit in P r ll l S ctors ■ B n fits of Loc l Suppl ■ Inv stm nt Risk ■ Si of th Opportunit Th r nkin s for Sri L nk r iv n in T bl 3.7. 13 Suppl Ch in 148 TABLE 13.2: SCORING METRIC USED TO EVALUATE THE SUPPLY CHAIN IN SRI LANKA. 1 No xp ri nc Tr ck R cord 2 Exp ri nc in suppl in wind f rm ≤ 100MW nd C p cit in 3 On comp n with xp ri nc of suppl in wind f rm > 100MW Offshor Wind 4 Two or mor comp ni s with xp ri nc of suppl in wind f rm > 100MW 1 No r l v nt p r ll l s ctors C p bilit in 2 R l v nt s ctors with r l v nt workforc onl P r ll l S ctors 3 Comp ni s in p r ll l s ctors th t c n nt r m rk t with hi h b rri rs to inv stm nt 4 Comp ni s in p r ll l s ctors th t c n nt r m rk t with low b rri rs to inv stm nt 1 No b n fits in suppl in proj cts loc ll 2 Som b n fits in suppl in proj cts loc ll , but no si nific nt imp ct on cost or risk B n fits of Loc l Suppl Work for proj cts c n b und rt k n from outsid countr , but onl with si nific nt 3 incr s d cost nd risk 4 Work for proj cts must b und rt k n loc ll 1 Inv stm nt th t n ds m rk t c rt int from offshor wind for fiv or mor rs 2 Inv stm nt th t n ds m rk t c rt int from offshor wind for two to fiv rs Inv stm nt Risk 3 Low inv stm nt ≤ US$50 million th t c n lso m t d m nd from oth r sm ll s ctors Low inv stm nt ≤ US$50 million th t c n lso m t d m nd from oth r m jor s ctors 4 with m rk t confid nc 1 < 2% of lif tim xp nditur Si of th 2 2% ≤ 3.5% Opportunit for Sri L nk 3 3.5%–5.0% 4 > 5% of lif tim xp nditur Th curr nt st t of th suppl ch in is r fl ct d in T bl 13.3. Th scorin r fl cts th t th r is ov r ll numb r of r s wh r Sri L nk h s c p biliti s in p r ll l s ctors, such s onshor wind nd h v construction; how v , it l cks offshor xp ri nc in th s m r s. In n r l, offshor wind proj cts would b n fit most from Sri L nk n xp rtis in p rmittin nd proj ct d v lopm nt, lon with op r tion nd m int n nc ctiviti s for th offshor wind f rms. Th r r r l tiv l f w b n fits to proj cts to sourc loc ll for m n of th oth r it ms b c us th c rr si nific nt inv stm nt risk or th r is v r st blish d int rn tion l c p cit to m t th d m nd which would b difficult to comp t with. 149 Offshor Wind Ro dm p for Sri L nk TABLE 13.3: EVALUATION OF SRI LANKAN SUPPLY CHAIN READINESS. Inv stm nt Risk in Sri Countr Tr ck R cord nd C p cit in OSW B n fits of Sri L nk Sri L nk C p bilit in P r ll l S ctors Loc l Not bl C t or Comp ni s Opportunit Si of th Suppl L nk WindForc , D v lopin nd LTL Holdin s — C l x 1 3 4 2 2 p rmittin R n w bl s N c ll , hub, - 1 1 2 2 4 nd ss mbl Bl d s - 1 1 2 2 4 Tow r - 1 1 2 2 4 Colombo Dock rd, Found tion suppl 1 2 2 2 4 Acc ss En in rin Arr nd xport - 1 1 2 2 4 c bl suppl Offshor subst tion DIMO 1 2 2 2 3 suppl Onshor infr structur Acc ss En in rin , 1 4 3 3 1 suppl DIMO WTG nd found tion - 1 1 1 4 2 inst ll tion Arr nd xport ACL C bl s, 1 2 2 3 4 c bl s inst ll tion DIMO WindForc , Wind f rm op r tion 1 3 4 4 4 LTL Holdin s WTG m int n nc WindForc , 1 3 4 4 4 nd s rvic LTL Holdin s B l nc of Pl nt Acc ss En in rin , (BoP) nd v rious 1 3 4 4 4 DIMO m int n nc D commissionin Acc ss En in rin 1 2 4 4 2 13 Suppl Ch in 150 14 PATHFINDER PROJECT Most n w offshor wind m rk ts st rt off with p thfind r proj ct to showc s th possibiliti s nd opportuniti s to th d v lop rs in th m rk t. A p thfind r proj ct m lso point out shortcomin s or ch ll n s within th r ul tor fr m work or pr p r tor work for m kin offshor wind succ ss. Cons qu ntl , p thfind r proj ct in Sri L nk will kick off th followin l r r d v lopm nt of offshor wind includin suppl ch in nd port d v lopm nt. Followin th scr nin for th ro dm p nd th r sultin loc tion l pot nti l, w h v look d into possibl sit s for 500MW p thfind r proj ct. Th proj ct n ds to b of suffici nt si to cr t ood nou h busin ss c s for d v lop rs. S in th t SEA t r t 1GW offshor wind, 500MW windf rm should b r listic. A bottom-fix d offshor wind f rm is pr f rr d to flo tin offshor wind f rm sinc th t chnolo is w ll- st blish d, impl in low r cost s w ll s low r risk. Th loc tion l pot nti l for both bottom-fix d nd flo tin solutions h s b n m pp d to thr r s s s n in Fi ur 14.1 — s s ction 7 nd s ction 3.1 for furth r inform tion on th und rl in sp ti l n l sis. Th s thr r s r pr s nt loc tion l pot nti l but with som r striction on s. Th r striction on s indic t th t furth r n l s s r r quir d on nvironm nt l nd soci l m tt rs, nd th t ddition l miti tion costs must b nticip t d within th s on s. 151 FIGURE 14.1: LOCATIONAL POTENTIAL FOR FIXED BOTTOM (HATCHED) AND FLOATING (DOTTED) OFFSHORE WIND IN SRI LANKA. RED MARKINGS INDICATE RESTRICTION ZONES FOR TECHNICAL, ENVIRONMENTAL, AND SOCIAL CONSTRAINTS. An l sin th thr r s in mor d t il sp ci ll r rdin wind r sourc nd tr nsmission s st m provid s consid r tions s outlin d in th followin s ction. 14 P thfind r Proj ct 152 14.1 LOCATION OPTIONS Th options for th loc tions of p thfind r proj ct h v b n s l ct d b s d on th followin fiv consid r tions: ■ W t r d pth llowin for bottom-fix d found tions ■ Hi h wind sp d ■ Environm nt l nd soci l non- xclusion on ■ Good rid conn ction possibilit ■ Acc ssibl from suit bl port How v r, it sh ll b not d th t for ll loc tion options th r will b r striction on s which r quir mor d t il d n l sis b for th loc tion of p thfind r proj ct c n b d cid d upon. 14.1.1 Option A — M nn r In Ar 1 (north) loc t d round th north rn tip of th countr , th wind r sourc is ood nd w t r d pths r to l r xt nt b low 50m llowin for fix d bottom solutions. How v r, th r is “n tur l” r striction cuttin off l r p rt of th r wh n consid rin p thfind r proj ct. B tw n th tip of M nn r Isl nd in Sri L nk nd D nushkodi in Indi , th r is ch in of n tur l lim ston sho ls b li v d to form rl h v ph sic ll conn ct d Sri L nk nd Indi . This form tion is known s Ad m’s Brid . Cons qu ntl , w t r d pths in this r r v r sh llow, m kin it impossibl for l r r v ss ls to p ss. This f ct combin d with no imm di t l suit bl l r ports on th st rn sid of Sri L nk d f cto cuts th m in p rt of Ar 1 off s suit bl for d v lopm nt of p thfind r proj ct. 153 Offshor Wind Ro dm p for Sri L nk FIGURE 14.2: AREA 1 (NORTH) AND OPTION A “GULF OF MANNAR” (BLACK OVAL). Th v r wind sp d in th r just south of Ad m’s Brid is 8-9m/s which i lds f ir wind r sourc . Inform tion on th tr nsmission s st m from CEB shows th t tr nsmission lin of 220kV runs from M nn r isl nd down tow rds th c nt r of th isl nd conn ctin it to th Colombo lo d c nt r (s Fi ur 11.1). This is v r r c ntl -built tr nsmission lin m inl for th conn ction of th 100MW onshor M nn r Wind F rm. Consid rin th wind r sourc , th tr nsmission s st m, nd th v il bilit of th port of Colombo, th Gulf of M nn r just south of Ad m’s Brid shows ood pot nti l for p thfind r proj ct. Furth r, th r is suffici ntl l r to ccommod t possibl xt nsion(s) to p thfind r proj ct which could b b n fici l for f st r build-out of offshor wind. How v r, it sh ll b not d th t th r cont ins nvironm nt l nd soci l r striction on s which must b furth r inv sti t d b for l unchin p thfind r proj ct. How v r, ll of th Option A r is within r striction on which cont ins num rous, hi h-risk nvironm nt l nd soci l s nsitiviti s. Th Option A r bord rs n in-shor r which is d si n t d s M rin R s rv (import nt for s r ss nd du on ), so th xport c bl from proj ct to th shor would n d to cross throu h this r s rv . Furth rmor , ll of th Option A r is prot ct d s both n EBSA nd IMMA. Ad m’s Brid is lso cultur ll si nific nt nd n d v lopm nt in its vicinit is lik l to h v som p rc iv d imp ct on cultur l nd r li ious h rit . B for this r c n b consid r d for p thfind r proj ct, ddition l work is r quir d to ss ss th s s nsitiviti s nd b tt r und rst nd th pot nti l imp ct offshor wind d v lopm nt could h v . 14 P thfind r Proj ct 154 14.1.2 Option B — Putt l m Ar 2 (w st) h s two dv nt s: 1) f w r nvironm nt l nd soci l r strictions, nd 2) loc tion clos to Sri L nk ’s m jor l ctricit d m nd c nt r nd to th port of Colombo. How v r, th wind r sourc in this r is sli htl low r th n Option A, with v r wind sp ds in th r n of 7.5-8.5m/s. FIGURE 14.3: AREA 2 AND OPTION B “PUTTALAM”. 155 Offshor Wind Ro dm p for Sri L nk 14.1.3 Option C — H mb ntot Th third nd l st option is Option C “H mb ntot ”. This option is within Ar 3 (south st) which shows f ir, v r wind sp ds of 8-9m/s. FIGURE 14.4: AREA 3 AND OPTION C “HAMBANTOTA”. Th most r c nt inform tion on th tr nsmission s st m r c iv d from CEB indic t s th t tr nsmission lin of 220kV conn ctin H mb ntot to th n tion l rid will b construct d within th comin two to thr rs. This could th n f cilit t xport of pow r n r t d from offshor wind in Ar 3. Furth r, loc tion clos to H mb ntot provid s for possibl suit bl port f ciliti s. How v r, ll of Ar 3 is within r striction on which cont ins num rous, hi h-risk, nvironm nt l, nd soci l s nsitiviti s. Th r clos to th co st is d si n t d s M rin R s rv , so th xport c bl from proj ct to th shor would n d to cross throu h this r s rv . M n of th b ch s lon this co st r import nt for turtl n stin , nd this could limit options for c bl l ndf ll. Furth rmor , th m jorit of Ar 3 is prot ct d s both n EBSA nd IMMA. B for this r c n b consid r d for p thfind r proj ct, ddition l work is r quir d to ss ss th s s nsitiviti s nd b tt r und rst nd th pot nti l imp ct offshor wind d v lopm nt could h v . Consid rin th wind r sourc nd th tr nsmission s st m, Option C “H mb ntot ” lso shows ood pot nti l for p thfind r proj ct. How v r, th r suit bl for fix d bottom found tions is sm ll r nd mor div rsifi d th n in th Gulf of M nn r. Thus, th pot nti l for xt nsions of p thfind r proj ct is limit d nd mor compl x. 14 P thfind r Proj ct 156 14.1.4 R comm nd tion on Loc tion of P thfind r Proj ct From “rou h scr nin ” point of vi w consid rin w t r d pth, wind r sourc , nd nvironm nt l nd soci l constr ints, Option A nd Option C r quit simil r. Th simil rit lso o s for consid r tions on port f ciliti s nd possibl rid conn ction. Option B h s th dv nt of f w r nvironm nt l, soci l, nd t chnic l constr ints but h s low r wind sp ds. TABLE 14.1: OVERVIEW OF KEY CONSIDERATIONS FOR THE THREE OPTIONS FOR LOCATION OF A PATHFINDER PROJECT. Environm nt l W t r D pth Option Wind Sp d nd Soci l Grid Conn ction Port L ss Th n 50m R strictions Hi h risk A Gulf of Colombo / Ys 8-9m/s (within EBSA & 220kV lin M nn r Tuticorin in Indi IMMA) Colombo / B Putt l m Ys 7.5-8.5m/s Low r risk 220kV lin Tuticorin in Indi Ys Hi h risk (within 220kV lin (to b C H mb ntot 8-9m/s H mb ntot (limit d) EBSA & IMMA) construct d) Options A nd C both f tur subst nti l nvironm nt l nd soci l s nsitiviti s. A prot ct d m rin r runs lon th south st co st, m nin th t th l ctric l xport s st m from n proj ct in th Option C r would n d to p ss throu h this. Furth rmor , th onshor rid in this r ion is w k (thou h th r r pl ns to improv it) nd, lthou h m toc n conditions h v not b n inv sti t d in this ro dm p, th south st co st will b xpos d to mor s v r w v conditions. Option C lso h s unknown b th m tr , but with indic tions of st p s b d th t d p ns quickl . Th r m b som sh llow r w t r in this r , but it is lik l th t much of it will b d p r nd onl suit d to flo tin wind turbin s. Whil Option B h s l ss n r tic wind r sourc , it pp rs to h v f w r nvironm nt l nd soci l s nsitiviti s. It is lso clos to th port of Colombo nd to xistin tr nsmission rid. Options A nd B in th Gulf of M nn r r clos st to Indi nd could off r s n r i s with th pl nn d offshor wind proj cts in T mil N du. Coop r tion with Indi in this r ion could b ss nti l in brin in th b n fits of l r -sc l d v lopm nt to Sri L nk . From th inform tion v il bl on th s thr r s, Option A (M nn r) nd Option B (Putt l m) pp r to b mor f vor bl for Sri L nk ’s first offshor wind proj ct nd it is r comm nd d th t th f sibilit of both r s is inv sti t d furth r. As Option A, M nn r, h s hi h r wind r sourc , it is lik l to h v low r LCOE th n proj ct t th Option B, Putt l m loc tion. For this r son, this n l sis focus s on M nn r s possibl loc tion of p thfind r proj ct. To chi v som conomi s of sc l nd provid proj ct sc l th t is ttr ctiv to inv stors, 500MW p thfind r proj ct h s b n ss ss d. 157 Offshor Wind Ro dm p for Sri L nk 14.2 PATHFINDER PROJECT CONCEPT LAYOUT Th pot nti l conc pt l out us s Cl ss I 12MW WTG with rotor di m t r of 220m nd t hub h i ht (HH) of 150m. This WTG h s b n s l ct d s it is r dil v il bl in th m rk t nd consid r d suit bl for th wind sp d of 8-9m/s. Th s l ction of this WTG mod l, how v r, r fl cts no ndors m nt tow rds sp cific mod l, nd it will b up to th d v lop r to v lu t which WTG is most suit bl for th sp cific sit . As such, n ric pow r curv h s b n s l ct d for this WTG si b s d on xp ri nc nd m rk t tr nds. How v r, pow r curv s for sp cific mod ls will d vi t d p ndin on th Pow r, rotor si , sw pt r , nd controll r. This will h v sm ll ff ct on th AEP, sp ci ll in r s of low r wind. At this hi hl initi l st , r ul r nd s mm tric l out consistin of str i ht rows h s b n consid r d with focus onl on minimisin th w k loss. This m ns th t th row ori nt tions r s l ct d consid rin th wind dir ction distribution (wind ros ). No i ld optimi tion tools h v b n us d, nd furth r optimi tion proc ss will not onl d p nd on th wind r sourc nd wind dir ction but lso on th WTG control str t , furth r ss ssm nt of w k p r m t rs, clim tic conditions, tc. Cons qu ntl , it must b not d th t this conc pt l out is for illustr tiv purpos onl nd m in no w b constru d s us bl for d si n purpos s. FIGURE 14.5: ILLUSTRATIVE LAYOUT OF A 500MW PATHFINDER PROJECT CONSISTING OF 42 X 12MW WTGS AT 150M HH, ALONG WITH A FIGURE SHOWING THE WIND ROSE FOR THE AREA. 0 40% 30% 20% 10% 270 0% 90 180 14 P thfind r Proj ct 158 With conc ptu l l out of th WTG positions, it is lso possibl to illustr t wh t possibl l ctric l n twork nd xport s st m could look lik . Th l ctric l n twork nd xport s st m consists of th followin m in compon nts: ■ 66kV rr c bl s conn ctin th WTGs in strin s nd to th offshor subst tion ■ An offshor subst tion coll ctin th n r t d pow r from th WTG strin s throu h th rr c bl s, st ppin up th pow r from 66kV to 220kV ■ Two 220kV subs xport c bl s xportin th n r t d pow r from th OSS to shor . ■ A tr nsition joint b t l ndf ll conn ctin th subs xport c bl s to onshor xport c bl s ■ Two 220kV onshor xport c bl s conn ctin to n onshor subst tion FIGURE 14.6: ILLUSTRATION OF A HIGH-LEVEL ELECTRICAL CONCEPT FOR AN OWF. Connection Onshore to onshore Substation network Offshore Platform 220kV Cable 66kV Array Cables 159 Offshor Wind Ro dm p for Sri L nk 14.3 AEP AND LCOE A rou h stim t of th AEP from 500MW p thfind r proj ct loc t d in th Gulf of M nn r nd south of Ad m’s Brid usin 12MW WTG h s b n stim t d s outlin d in T bl 14.2. TABLE 14.2: AEP ESTIMATE FOR 500MW PATHFINDER PROJECT IN THE GULF OF MANNAR. Wind sp d 8.8m/s Nos. of 12MW WTGs (150m hub h i ht) 42 Annu l ross n r production (P50) 2,535GWh W k loss ( ssumin 4.0%) 101.4GWh Annu l ross n r production (P50) (includin w k loss s) 2,433GWh Gross c p cit f ctor 55.1% Oth r loss s — l ctric l, out s, tc. (10% of P50) 243GWh N t AEP 2,190GWh LCOE65 75 US$/MWh It must b not d th t this stim t is hi hl unc rt in s it is b s d on n un-optimi d l out with loss s onl rou hl stim t d. Furth rmor , it do s not t k into ccount n unc rt inti s, so this should b consid r d s hi h-l v l, pr limin r stim t which inh r ntl will ch n onc th optimi tion proc ss nd d t il d n l s s h v b n c rri d out. Usin th CAPEX nd OPEX ssumptions from th fin nci l n l s s in s ction 9.1 includin t r t WACC of six p rc nt (which is h vil contin nt on conc ssion l fin nc nd suffici nt risk miti tion) nd ppl in n t AEP of pproxim t l 2,190GWh p r r for th 500MW p thfind r proj ct, i lds n LCOE of round US$75 p r MWh. This is sli htl low r th n th stim t d v r LCOE st t d in s ction 9.1 (Fi ur 9.2). Th r son for this is m inl th t th sit s l ct d for th p thfind r proj ct h s b tt r wind r sourc th n wh n v r in th wind r sourc throu hout th loc tion l pot nti l of Sri L nk . Th costs p r MW inst ll d c p cit r ssum d to b in th s m r n s for l r r sit s. Th r r f ctors which could r sult in hi h r s w ll s low r costs, nd this m b xplor d in mor d t il d stud . 14.4 NEXT STEPS On of th imm di t n xt st ps is to und rt k mor n l sis to inform th loc tion of th p thfind r proj ct. For this, pr -f sibilit stud consid rin th v rious options for th loc tion of p thfind r proj ct must b conduct d focusin on scr nin x rcis providin LCOEs for th diff r nt possibiliti s, t kin nvironm nt l nd soci l constr ints s w ll s rid r inforc m nt into consid r tion. This proc ss should lso includ st k hold r consult tion to b tt r und rst nd th constr ints. S ction 4.3 d scrib s th n xt st ps in mor d t il nd provid s n indic tiv tim lin for th ir impl m nt tion. S ction 15 lso provid s furth r inform tion on sp cific studi s nd surv s, s w ll s providin rou h cost stim t s. 65 Assumptions on CAPEX nd OPEX r th s m s d scrib d in T bl 9.1 sc l d to 500MW. Th LCOE is b s d on n xp ct d WACC of six p rc nt th t d p nds on suffici nt risk r duction nd th us of conc ssion l fin nc . 14 P thfind r Proj ct 160 15 PREPARATORY STUDIES Pr p r tor studi s compris th furth r inv sti tions r quir d to m tur n offshor wind pow r proj ct for d si n nd construction. S v r l studi s r r quir d includin th followin : ■ Soil (s b d) conditions ■ M toc n ■ Wind r sourc ■ ESIA ■ Grid int r tion 15.1 SOIL CONDITIONS Soil conditions cov r th n tur nd ch r ct ristics of th s b d nd th round b n th. Th s conditions driv nd d t rmin th d si n of WTG found tions nd offshor subst tion found tion, s w ll s c bl d si n nd routin . Est blishin soil conditions for d si n of n offshor wind f rm compris s v r l surv s nd inv sti tions. Th two m jor c t ori s r oph sic l nd ot chnic l studi s. 15.1.1 G oph sic l Inv sti tions Surf c inv sti tions which m p th s b d (d pth, b th m tr , structur , obj cts, nd h rds . ., Un xplod d Ordn nc (UXO)) oft n includ sc n of th top l rs of th s b d. Th inv sti tion is c rri d out b quipm nt h n in from th r r nd of v ss l into th w t r column. Th v ss l th n sc ns th s b d b movin in rid (of . ., 200m). Th s inv sti tions provid si nific nt mount of d t nd inform tion nd t pic ll cost in th r ion of US$1-3 million for t pic l 250-500MW proj ct. 15.1.2 G ot chnic l Inv sti tions G ot chnic l inv sti tions compris drillin , bor s mpl s, nd con p n tr tin t stin (CPT). Th s inv sti tions d t rmin th str n th p r m t rs of soil t sp cific loc tions. G ot chnic l inv sti tions c n b m d from sp ci li d ship or j ck-up v ss l, nd cons qu ntl c rr hi h r cost. How v r, such inv sti tions r cruci l for pr p rin th d si n of th offshor structur s. Th cost of full soil condition ss ssm nt includin surv s is round US$10-15 million, d p ndin upon m n f ctors such s sit si nd v ss l v il bilit . 161 15.2 METOCEAN CONDITIONS M toc n conditions r f r to th combin d wind, w v , nd clim t conditions found t sp cific loc tion. M toc n conditions r import nt for th WTG loc tions but lso for th tr nsmission s st m d si n. Th purpos of m toc n stud is to provid inform tion nd d t t l v l of d t il which will suffici ntl n bl d v lop rs to submit qu lifi d fin nci l bids for d si n nd construction of n offshor wind f rm. It is r comm nd d th t th m toc n stud is pr p r d in ccord nc with IEC 61400-3 “Int rn tion l St nd rd — wind turbin s — P rt 3: D si n r quir m nts for offshor wind turbin s.” A thorou h nd c rtifi d m toc n stud si nific ntl r duc s risk for d v lop rs. A m toc n stud for n offshor wind f rm in Sri L nk should includ th followin d t : ■ Loc tion (coordin t s) nd n r l sit d scription ■ B th m tr nd tid l d t ■ Wind d t ■ W v d t B s d on th sit -sp cific d t , h drod n mic mod llin , w v tr nsform tion, nd hindc st simul tions c n b conduct d for us tow rds th d si n of th offshor structur s. Th full cost of m toc n d sktop stud is round US$75,000 for t pic l 250-500MW proj ct. Th cost of th lon -t rm m sur m nts is d t il d in th followin s ction s p rt of th wind stud b m ns of flo tin LiDAR buo . 15.3 WIND STUDY In ord r to prop rl stim t th nnu l n r production (AEP) nd th structur l r quir m nts to th WTGs, it is n c ss r to conduct thorou h wind stud b s d on sit sp cific m sur m nts. Th Glob l Wind Atl s [9], lthou h hi hl dv nc d tool, r li s on m sosc l d t nd not sit - sp cific d t . For Sri L nk , it will b n c ss r to conduct sp cific m sur m nts on sit with flo tin Li ht D t ction nd R n in (LiDAR) s st m. A sit -sp cific wind stud should includ th followin topics: ■ Sit bound ri s (coordin t s) ■ LiDAR d t (position, m surin p riod, c libr tion) ■ M sosc l d t ■ V lid tion of d t ■ Wind sp d nd distribution ■ S son l, monthl , nd d il v ri tion 15 Pr p r tor Studi s 162 ■ Wind sh r ■ Lon t rm v ri tion nd corr l tion ■ WTG suit bilit nd sit -sp cific r quir m nts ■ L out optimi tion ■ AEP c lcul tions ( ross nd n t) ■ Loss stim tion (w k , pow r curv , l ctric l, v il bilit , tc.) ■ Unc rt int stim tion (P50, P70, P90) A flo tin LiDAR m sur m nt c mp i n, sp nnin ov r l n th of 12 months, t pic ll c rri s cost of t l st US$1.0-1.5 million, but could b mor , d p ndin on th sit conditions nd quipm nt v il bilit . In som c s s, p rticul rl in m r in m rk ts, it m b mor cost ff ctiv to d plo fix d structur offshor nd inst ll r ul r LiDAR unit on it (this, for x mpl , w s don in Guj r t s p rt of th FOWPI proj ct). This option should b consid r d lon sid th flo tin LiDAR c mp i n. A wind r sourc stud (includin proc ssin th LiDAR d t ) for t pic l 250-500MW offshor wind f rm is pproxim t l US$20,000 to US$40,000. 15.4 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT An nvironm nt l nd soci l imp ct st t m nt for n offshor wind f rm is v r xt nsiv docum nt th t must cov r s v r l diff r nt topics. Th ss ssm nt f lls into two m in c t ori s: ■ Environm nt l imp ct ■ Hum n r l t d imp ct (includin ‘soci l’ nd ‘t chnic l’ issu s) Th IFC p rform nc st nd rd “Environm nt l, H lth, nd S f t Guid lin s for Wind En r ” m b us d s uid nc for wh t should b cov r d in n ESIA. How v r, it is import nt th t loc l rul s nd r ul tions r r sp ct d nd incorpor t d in th n l sis. 15.4.1 Environm nt l (biodiv rsit ) Imp ct Offshor wind f rms h v th pot nti l for dir ct nd indir ct dv rs imp cts on both onshor nd offshor biodiv rsit durin construction, O&M, nd d commissionin . Ex mpl s of imp cts includ bird collision-r l t d f t liti s; displ c m nt of wildlif ; h bit t conv rsion/d r d tion; nd nois to m rin m mm ls. In offshor nvironm nts, b nthic disturb nc nd n w structur s m lso imp ct xistin h bit ts nd ttr ct n w h bit t-formin sp ci s, such s sh llfish, cor ls, nd und rw t r v t tion. Adv rs imp cts c n lso r sult from ssoci t d infr structur , p rticul rl ov rh d tr nsmission lin s, subst tions, und rw t r c bl s, nd v ss l tr ffic. 163 Offshor Wind Ro dm p for Sri L nk Followin scopin nd d sktop stud , ppropri t sit -sp cific b s lin biodiv rsit inform tion will b n d d for th ESIA. Robust biodiv rsit b s lin surv s r r quir d to b compl t d in lin with GIIP nd should occur s rl s possibl , s th c n r quir minimum of two rs of d t coll ction, nd should consid r s son lit . Surv s should consid r th followin : ■ Sit -sp cific issu s: consid r tion of h bit ts, o r phic l loc tion, topo r ph , nd vicinit of th wind f rm to sit s of hi h biodiv rsit v lu . ■ Sp ci s-sp cific issu s: surv s should b t r t d to sp ci s of flor nd f un of hi h biodiv rsit v lu , thos with sp ci l int rn tion l or n tion l cons rv tion st tus, nd mic sp ci s, nd sp ci s th t r t l v t d risk of imp ct from wind n r f ciliti s. Th s imp cts nd pot nti l miti tion options should b ss ss d on sp ci s-b -sp ci s b sis. ■ S son-sp cific issu s: surv s should t k into consid r tion c rt in p riods durin th r wh n th proj ct sit m h v r t r or diff r nt colo ic l function or v lu ( . ., mi r tion, or br din s son). Surv s should usu ll b conduct d for t l st on r wh n t-risk wildlif is id ntifi d. Lon r surv s m som tim s b n c ss r in r s with xc ption l r tions of t-risk mi r tor birds nd wh r xistin biodiv rsit d t r limit d. 15.4.2 Hum n-r l t d Imp ct Hum n-r l t d imp ct cov rs s v r l diff r nt topics of both public, comm rci l, nd ov rnm nt l int r st. Th m in topics to b cov r d und r this h din r : ■ Fish ri s nd qu cultur ■ Shippin ■ Imp ct on r cr tion nd tourism ctiviti s ■ Visu l imp ct ■ Cultur l h rit ■ Milit r ■ Avi tion ■ T l communic tion ■ Oil nd s xplor tion ■ Und r round c bl s nd pip lin s ■ Dr d in All th s topics r quir sit -sp cific inform tion nd d t from r l v nt uthoriti s nd st k hold rs. Cons qu ntl , it is b n fici l to th proc ss to n with r l v nt st k hold rs rl on. It is r comm nd d to initi t th ESIA proc ss with public h rin s n rl consult tion lr d durin th scopin ph s of th ESIA. With n rl consult tion, th public will b llow d to provid id s nd input f din into th ESIA. 15 Pr p r tor Studi s 164 15.5 GRID INTEGRATION Th l ctric l rid int r tion studi s sh ll involv both th offshor wind f rm nd th TSO. It is import nt distin uishin b tw n th : ■ R inforc m nt of th b ck-bon tr nsmission s st ms; nd ■ Pl nnin of th offshor wind f rm rid int rconn ction. Th int rf c is th point of conn ction (PoC) wh r th TSO lloc t HV conn ction lin b s in on of his subst tions. 15.5.1 R inforc m nt of th B ck-bon Tr nsmission S st ms Th TSO sh ll pl n, construct, nd m int in pow r rid with suffici nt c p cit nd v il bilit to s cur th tr nsmission b tw n th n r tin units nd th lo d d m nd c nt rs. This is non-stop proc ss wh r th TSO issu s n nnu ll -upd t d m st r pl n for th n xt on , fiv , t n, nd 15 rs for his conc ssion r . Sinc th pow r rid is int r t d cross th countr to s cur st bilit , th TSO will lso pl n for v ntu l h v int rconn ctors to n i hborin countri s (usin subs c bl s, or ov rh d lin s ith r with n AC or HVDC ppro ch). Up r din of th b ckbon s st m will involv both n w subst tions nd ov rh d lin s th t will r quir lon pl nnin hori on of 3-5 66 rs . Environm nt l issu s nd s curin th ri hts of w for th lin corridors r oft n k f ctors for such pl nts. Cons qu ntl , it is vit l for th TSO to h v n upd t d pl n for n w-builds nd dism ntlin of th n r tion pl nts, s w ll s ood und rst ndin of th pow r lo d d m nd. With r sp ct to int r tion of offshor wind to th rid, th proj cts will b consid r d lik th rm l, h dro or oth r VRE n r tion pl nt67. Th imp ct of th n w n r tion pl nts mi ht tri rn w lin s/SS th t will b id ntifi d b TSO’s l ctric l s st m studi s “lo d-flow, tr nsi nt/d n mic” th t will r v l th n d nd timin for th construction/r inforc m nt. Sinc th b ckbon pow r rid is of n tion l import nc , th TSO r oft n r luct nt to sh r n c ss r d t ils for xt rn l dvisors, thus th s studi s for Sri L nk r ssum d to b impl m nt d sol l b th TSO. How v r, if int rn tion l inv stm nt b nks r involv d in th fin ncin of such rid r inforc m nt initi tiv s it is ssum d th t n xt rn l int rn tion l dvisor/consult nt will contribut with hi h- l v l ss ssm nt nd qu lit ssur nc on th pl nnin proc ss nd v ntu ll ssist with dr ftin f sibilit studi s for th individu l proj cts. D p ndin on th numb r of r inforc m nt proj cts rou h bud t stim t for such studi s could b in th r n of US$600,000-2,400,000. 66 Environm nt l issu s nd s cur of ri ht of w oft n is k f ctor/ch ll n . 67 Th pow r b l ncin ch ll n will b ddr ss d in th d si n of th disp tch c nt rs. 165 Offshor Wind Ro dm p for Sri L nk 15.5.2 Offshor Wind Grid Int r tion Th offshor wind d v lop r will oft n b r nt d c rt in l s r nd th n it will b th ir own dut to st blish sound pow r infr structur s st m b tw n th WTG nd th PoC. Th d v lopm nt of th l ctric l infr structur for n OWF ims t id ntif in th optim l topolo nd most cost- ffici nt t chnolo v il bl for th inv stor. Th pl nnin will t k b sis in th pr v ilin rid cod r quir m nt s t out b th TSO wh r th conditions nd r quir m nts in r sp ct to volt qu lit nd l ctric l int r ction b tw n th OWF nd th rid t th conn ction point r d t il d. Th OWF rid int rconn ction pl nnin will involv th d t rmin tion of th followin : ■ PoC loc tion(s) nd volt l v lm d v il bl b th TSO ■ Numb r of xport c bl s to th PoC nd s l ction of ith r AC or HVDC t chnolo ■ Numb r, loc tion of offshor subst tions within th OWF ■ Loc tion of l ndf ll nd corridor for th onshor xport c bl Th s d t rmin tions will b th r sults of s qu nti l l ctric l studi s (with d t il d l v l of insi ht) nd th t chnic l/cost optimi tion of th pow r infr structur wh r lso th OPEX ( n r loss ss ssm nt) sh ll b f ctor d in. Th TSO oft n will id ntif r n nd d t ils of th l ctric l s st m studi s r qu st d to v rif rid cod compli nc . Th l ctric l studi s c n b : ■ Initi l lo d flow nd short circuit studi s Th s will constitut th b sis for d t rminin th pow r s st m topolo nd iv r tin of th m in compon nts within th OWF nd t th OnSS n rb th TSO PoC. Hi h-l v l rout pl ns nd n r l rr n m nt of th OSS & OnSS will b st blish d. Th s studi s r t pic ll impl m nt d in th rl d v lopin proc ss nd form p rt of th d v lop rs bid proc ss. Initi l di lo with th TSO to id ntif suit bl PoC(s) sh ll b m d . Indic tiv bud t: US$250,000-500,000. ■ B sic l ctric l studi s ( ft r conc ssion is obt in d) A mor d t il d ss ssm nt of th r qu st for compon nts in th OnSS in r sp ct to fulfilm nt of th rid cod compli nc will b r quir d. Diff r nt WTG t p s nd si s mi ht b consid r d. Fin l si in of HV compon nt/pl nts68 t r tin th volt qu lit sh ll b impl m nt d nd will constitut th b sis for th d si n nd procur m nt of th BoP compon nts. Initi l ss ssm nt on h rmonic filt r in th OnSS will lso b impl m nt d. Th b sic studi s will consid r initi l WTG si s nd t nt tiv OWF l out wh r th rr c bl s int rconn ctin th WTG r incorpor t d. Indic tiv bud t: US$350,000-700,000. 68 R ctiv pow r nd pow r f ctor control m int in d b prop r si in /s l ction of shunt r ctors, c p citor b nks, st tic s nchronous comp ns tors, or simil r. 15 Pr p r tor Studi s 166 ■ D t il d l ctric l studi s ( ft r WTG contr ct w rd) Th fin l d t il d studi s will r l on th fin l s l ction of WTG si nd loc tion. Th d t il d l ctric l mod l of th WTG r d will form b sis for fin l fin -tunin of th OnSS HV compon nt r tin s nd lso iv b sis to id ntif th si /r tin of th h rmonic filt r b nks69. Th s studi s will lso involv tr nsi nt nd d n mic simul tions th t onl c n b impl m nt d b us of v r sp ci li d softw r tools. T r t is obt inin pr limin r r m nt with TSO prior to comm nc m nt of th m nuf cturin of m in l ctric l compon nts. Indic tiv bud t: US$350,000-700,000. ■ As-built rid compli nc studi s ( ft r construction) Durin th t st nd commissionin of th OWF s v r l m sur m nts of th l ctric l pl nt ch r ct ristics nd ov r ll p rform nc will b x cut d. Fin l l ctric l studi s will compl m nt th v rific tion of th OWF rid cod compli nc nd constitut th fin l cc pt nc from th TSO for OWF rid conn ction nd op r tion. Indic tiv bud t: US$250,000-500,000. 15.6 PORT AUTHORITY CONSULTATION (SHORT, MEDIUM, AND LONG TERM) Th Consult tion or Stud with Loc l uthoriti s should focus on th d v lopm nt of port f ciliti s in two m jor r s: Tr nsport nd Inst ll tion nd Op r tions nd M int n nc , s w ll s lookin to th short- nd m dium-t rm solutions. In n r l, it is r comm nd d, iv n Sri L nk ’s commitm nt to offshor wind, th t m dium-t rm vi w of port d v lopm nt is dopt d inst d of short-t rm vi w, in ord r th t futur proj cts will b simil rl support d, r ducin th CAPEX p r proj ct du to r p titiv s vin s. How v r, short-t rm stud m still b p rform d to show cl r r l tionship b tw n m dium- t rm pl nnin nd cost s vin s. 15.6.1 Hi h-l v l Port Ass ssm nt Sp cific t mpor r r quir m nts for l r -sc l inst ll tion c mp i n, includin offic sp c , supportin v ss l b rthin (CTVs, j ckup b r , c bl l in v ss l, c bl buri l nd tr nchin , tc.), cr n inst ll tion, nd onshor ri in . It should b not d th t for such l r proj ct, m n t sks will b runnin concurr ntl nd th r for it is ss nti l to h v suffici nt b rthin sp c to llow th s t sks to b p rform d without bottl n cks on th proc ss s. ■ Ass ssm nt of c ndid t port(s) suit bilit for OWF construction ports includin : • Si nd d pth of port s cc ss • B rth v il bilit 69 Th s will b r quir d b TSO to minimi / limin t h rmonic distortion inj ct d into th pow r rid b th OWF. 167 Offshor Wind Ro dm p for Sri L nk • L down rd • L nd sid cc ss rr n m nts, tc. ■ How lon would it t k to impl m nt t mpor r solution nd d commission it (to iv n id of th tot l tim th r will b not v il bl for comm rci l us )? ■ Wh t will b th imp ct for th loc l communit nd nvironm nt of t mpor r solution? ■ Wh t is th tim sc l of such t mpor r solution to impl m nt nd how do s it ff ct th critic l p th? Indic tiv bud t: US$50,000-100,000. 15.6.2 D t il d Port Stud In t rms of d t rminin lon r-t rm str t , th followin should b consid r d. D v lopm nt of fix d b rthin for t l st two wind f rm inst ll tion c mp i ns concurr ntl , but most lik l not sh rin r sourc s. D v lopm nt of th mod l for xp ndin th port to th n c ss r si , f sibilit , cost, nd critic l p th for proj ct d v lopm nt. At wh t point do s it b com f sibl to inv st in furth r port infr structur ? Is th r cut-off for on nd two ddition l b rths b s d on th xp ct tions of futur offshor wind inv stm nt in th r ? Th tot l vi bl v il bl wind r sourc su sts th t n inv stm nt in “wind inst ll tion hub” would b f sibl option to op n up th possibilit of si r construction for up to 10GW of wind in th imm di t r . Wh t would b r quir d for port xp nsion to s rvic m dium t rm, m dium-to-l r sc l offshor wind inst ll tions? ■ Exp nd d port ntr nc width to 200m minimum. ■ S v r l d dic t d b rthin s of >200m ch, pr f r bl ch s rvic d b d dic t d cr n , offic , consum bl s stor , nd s curit . ■ Exp nsion of port cc ss b l nd, to llow for incr s d tr ffic nd si . ■ Improv m nt of port f ciliti s ( . ., s cur stor , offic sp c , tc.). ■ Exp nsion of s -f cin port f ciliti s such s port ntr nc , d pth, nd prot ction. ■ Consid r tion of construction of multipl windf rms simult n ousl from sin l port. ■ Consid r tion of op r tions nd m int n nc ctiviti s nd r quir m nts. ■ Sit visits nd consult tion with loc l st k hold rs. Indic tiv bud t: US$300,000-600,000. 15 Pr p r tor Studi s 168 16 STAKEHOLDERS Th k st k hold rs th t h v b n id ntifi d r list d in T bl 16.1 und r four m in roups: ■ Gov rnm nt: Gov rnm nt d p rtm nts, r ul tors, nd institutions t n tion l nd r ion l l v l. ■ Int rn tion l non- ov rnm nt l or ni tions (NGOs): Int rn tion l NGOs with n int r st in offshor wind in Sri L nk . ■ N tion l non- ov rnm nt l or ni tions (NGOs): N tion l NGOs with n int r st in offshor wind in Sri L nk . ■ Ac d mi nd civil soci t : N tion l nd int rn tion l c d mic institutions nd civil soci t or ni tions with n int r st in offshor wind in Sri L nk . TABLE 16.1: LIST OF KEY STAKEHOLDERS FOR OFFSHORE WIND DEVELOPMENT IN SRI LANKA. N m W bsit Gov rnm nt l Ministr of Pow r nd R n w bl En r http://pow rmin. ov.lk/ Sust in bl En r Authorit https://www. n r . ov.lk/ C lon El ctricit Bo rd https://c b.lk/ N tion l NGOs Wind Forc Ltd https://windforc .lk/ LTL Holdin s Ltd https://ltl.lk/ltl-holdin s/ S nok Wind Pow r Pvt https://www.s noksl.com/ L nk Tr nsform rs https://ltl.lk/ C l x R n w bl s https://www.c l xr n w bl s.com/ Ch mb r of Comm rc https://www.ch mb r.lk/ Int rn tion l NGOs IFC https://www.ifc.or / Asi n D v lopm nt B nk https://www. db.or / J p n Int rn tion l Coop r tion A nc https://www.jic . o.jp/ Ac d mi Univ rsit of Mor tuw https://uom.lk/ Op n Univ rsit of Sri L nk https://ou. c.lk/ Univ rsit of J fn http://www.jfn. c.lk/ 169 Th followin or ni tions w r invit d to st k hold r consult tions: ■ Gov rnm nt st k hold rs: Ministr of Pow r nd R n w bl En r , Sust in bl En r Authorit , C lon El ctricit Bo rd ■ Priv t s ctor st k hold rs, includin proj ct d v lop rs: Wind Forc Ltd, LTL Holdin s Ltd, S nok Wind Pow r Pvt. 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Av il bl : https://www. bco.n t/. 177 Offshor Wind Ro dm p for Sri L nk ACRONYMS AND ABBREVIATIONS GENERAL ACRONYMS AND ABBREVIATIONS: ABEX Ab ndonm nt xp nditur s AC Alt rn tin curr nt AIS Autom tic Id ntific tion S st m AEP Annu l n r production BoP B l nc of pl nt BST B sic s f t tr inin CAPEX C pit l xp nditur s CCH C t c ns’ critic l h bit ts CfD Contr ct for diff r nc COD Comm rci l op r tion d t CPT Con p n tr tin t stin CTV Cr w tr nsf r v ss l DBFO D si n, build, fin nc , op r t DC Dir ct curr nt DEVEX D v lopm nt xp nditur s EBSA Ecolo ic ll or Biolo ic ll Si nific nt M rin Ar s EENS Exp ct d n r not s rv d EHS Environm nt l, H lth, nd S f t EIA Environm nt l imp ct ss ssm nt ESIA Environm nt l nd Soci l Imp ct Ass ssm nt ENS En r not s rv d EPC En in rin , procur m nt, nd construction EPCI En in rin , procur m nt, construction, nd inst ll tion EUR Euro FiT F d in t riff FTE Full tim quiv l nt GDP Gross dom stic product GVA Gross v lu dd d ACRONYMS AND ABBREVIATIONS 178 GW Gi w tt HH Hub h i ht H&S H lth nd s f t HV Hi h volt HVDC Hi h volt dir ct curr nt IAC Int r rr c bl s IBA Import nt Bird nd Biodiv rsit Ar s IEIA Initi l nvironm nt l imp ct ss ssm nt IMMA Import nt m rin m mm l r s IRA Int rn tion ll r co ni d r s KBA K biodiv rsit r s kWh Kilow tt hour LCOE L v li d cost of n r LLD Loss of Lo d Dur tion LOLE Loss of Lo d Exp ct d LPA L ll prot ct d r s MAF Mid-t rm d qu c for c st MVAC M dium volt lt rn tin curr nt MW M w tt MWh M w tt hour NDC N tion ll D t rmin d Contribution NSIP N tion ll si nific nt infr structur proj cts O&M Op r tion nd m int n nc OHS Occup tion l H lth nd S f t OEM Ori in l quipm nt m nuf ctur rs OnSS Onshor subst tion OPEX Op r tion l xp nditur s OSS Offshor subst tion OSW Offshor Wind OWF Offshor wind f rm PoC Point of conn ction PPA Pow r purch s r m nts PPP Public priv t p rtn rship PtX Pow r to X R&D R s rch nd d v lopm nt RE R n w bl n r ROV R mot l op r t d v hicl 179 SOV S rvic op r tion v ss l SPA Sp ci l prot ction r s SS El ctric l pow r subst tion TEU Tw nt -foot quiv l nt unit TP Tr nsition pi c UDL Uniforml distribut d lo d UNFCCC Unit d N tions Fr m work Conv ntion on Clim t Ch n US$ Unit d St t s doll rs VPPA Virtu l pow r purch s r m nt VRE V ri bl r n w bl n r WACC W i ht d v r cost of c pit l WTG Wind turbin n r tor XLPE Cross-link d pol th l n COMPANY AND INSTITUTE ACRONYMS AND ABBREVIATIONS: ADB Asi n D v lopm nt B nk BOI Bo rd of Inv stm nt CEA C ntr l Environm nt l Authorit CEB C lon El ctricit Bo rd DEA D nish En r A nc EBRD Europ n B nk for R construction nd D v lopm nt ESMAP En r S ctor M n m nt Assist nc Pro r m EU Europ n Union GE G n r l El ctric GEBCO G n r l B th m tric Ch rt of th Oc ns GWA Glob l Wind Atl s GWO Glob l Wind Or nis tion HELCOM Th B ltic M rin Environm nt Prot ction Commission IEA Int rn tion l En r A nc IFC Int rn tion l Fin nc Corpor tion IMCA Int rn tion l M rin Contr ctors Associ tion IMO Int rn tion l M rin Or ni tion IPP Ind p nd nt pow r produc rs IUCN Int rn tion l Union for Cons rv tion of N tur MVOW MHI V st s Offshor Wind NEWA N w Europ n Wind Atl s ACRONYMS AND ABBREVIATIONS 180 OECD Or nis tion for Economic Co-op r tion nd D v lopm nt OFTO Offshor Tr nsmission Own r OSPAR Conv ntion for th Prot ction of th M rin Environm nt of th north st Atl ntic PUCL Public Utiliti s Commission of Sri L nk SEA Sust in bl En r Authorit SGRE Si m ns G m s R n w bl En r TSO Tr nsmission S st m Op r tor UNECE Unit d N tions Economic Commission for Europ UNDP Unit d N tions D v lopm nt Pro r mm UK Unit d Kin dom WB World B nk WBG World B nk Group 181 Offshor Wind Ro dm p for Sri L nk APPENDIX A — SRI LANKA PRIORITY BIODIVERSITY VALUES 1 INTRODUCTION Th World B nk Group (WBG) commission d Th Biodiv rsit Consult nc to provid nvironm nt l support for th WBG Offshor Wind D v lopm nt Pro r m. This support includ s th compl tion of rl -st id ntific tion of priorit biodiv rsit v lu s nd v il bl sp ti l d t to inform th offshor wind countr ro d m p for Sri L nk . Incorpor tin consid r tions of priorit biodiv rsit v lu s in th ss ssm nt of ‘pr ctic l pot nti l’ for offshor wind d v lopm nt is ss nti l to void dv rs imp cts from in ppropri t d v lopm nt nd provid found tion for pip lin of b nk bl proj cts li ibl for fundin b Int rn tion l Fin nc Institutions. Th World B nk (WB) nd Int rn tion l Fin nc Corpor tion (IFC) nvironm nt nd soci l r quir m nts r int r l to th Offshor Wind D v lopm nt Pro r m, nd th production of individu l countr ro dm ps. Th n bl WB, IFC, nd cli nt countri s to b tt r m n th nvironm nt l nd soci l risks of proj cts, nd to improv d v lopm nt outcom s. Th WB Environm nt l nd Soci l Fr m work, nd th IFC Sust in bilit Fr m work promot sound nvironm nt l nd soci l pr ctic s, tr nsp r nc nd ccount bilit . Th s fr m works d fin cli nt r sponsibiliti s for m n in risks nd nsur th t offshor wind s ctor pr p r tor work is li n d with ood int rn tion l industr pr ctic (GIIP). Of p rticul r r l v nc to this stud r : ■ WB Environm nt l nd Soci l St nd rd 6 (ESS6) Biodiv rsit Cons rv tion nd Sust in bl M n m nt of Livin N tur l R sourc s (2018), to th r with th ssoci t d Guid nc Not ESS6 (2018); nd ■ IFC Environm nt l nd Soci l P rform nc St nd rd 6 (PS6): Biodiv rsit Cons rv tion nd Sust in bl M n m nt of Livin N tur l R sourc s (2012), to th r with th ssoci t d Guid nc Not 6 (2019). Th obj ctiv of this stud is to id ntif priorit biodiv rsit v lu s nd r s th t support th s v lu s th t should ith r b xclud d from offshor wind d v lopm nt (i. ., no- o r s), or r quir ddition l ss ssm nt throu h subs qu nt M rin Sp ti l Pl nnin (MSP), sit s l ction, nd Environm nt l nd Soci l Imp ct Ass ssm nt (ESIA) proc ss s. To m t GIIP, wind d v lopm nts in r s supportin priorit biodiv rsit v lu s would lik l b subj ct to r strictions in th form of r t r r quir m nts for b s lin studi s, s w ll mor int nsiv miti tion m sur s to void, minimi nd r stor dv rs nvironm nt l imp cts. Accordin to IFC PS6 nd ESS6, proj cts situ t d within critic l h bit ts r r quir d to d monstr t th t: ■ No oth r vi bl lt rn tiv s within th r ion xist for d v lopm nt of th proj ct on modifi d or n tur l h bit t th t r not critic l; ■ Th proj ct do s not l d to m sur bl dv rs imp cts on thos biodiv rsit v lu s for which th critic l h bit t w s d si n t d, nd on th colo ic l proc ss s supportin thos biodiv rsit v lu s; App ndix A — Sri L nk Priorit Biodiv rsit V lu s 182 ■ Th proj ct do s not l d to n t r duction in th lob l nd/or n tion l/r ion l popul tion of n critic ll nd n r d or nd n r d sp ci s ov r r son bl p riod of tim ; nd ■ A robust, ppropri t l d si n d, nd lon -t rm biodiv rsit monitorin nd v lu tion pro r m is int r t d into th cli nt’s m n m nt pro r m. In ddition, proj cts n d to chi v n t ins of thos biodiv rsit v lu s for which th critic l h bit t w s id ntifi d. This stud h s focuss d on th followin k roups of priorit biodiv rsit v lu s, which h v b n id ntifi d throu h r vi w of th sci ntific lit r tur nd on xp ri nc s in w ll-d v lop d offshor wind m rk ts: ■ L ll Prot ct d Ar s (LPAs) nd Int rn tion ll R co ni d Ar s (IRAs) - s s ction 3 ■ M rin M mm ls (c t c ns nd pinnip ds) - s s ction 4 ■ Birds - s s ction 5 ■ S Turtl s - s s ction 6 ■ Fish - s s ction 7 ■ N tur l H bit ts70 - s s ction 8 2 METHODOLOGY For ch roup of priorit biodiv rsit v lu s, v il bl lob l nd r ion l sp ti l d t s ts w r id ntifi d nd scr n d for inclusion in on of two sp ti l d t l rs for us in th countr ro dm p: ■ Exclusion on (i. ., r s to xclud from th t chnic l ss ssm nt of offshor wind r sourc ); nd ■ R striction on (i. ., hi h-risk r s r quirin furth r ss ssm nt of risk durin MSP, sit s l ction, nd/or ESIA). Num rous lob l nd r ion l biodiv rsit d t s ts xist (prim ril produc d b c d mic, sci ntific nd ov rnm nt nd non- ov rnm nt l or ni tions) nd r us ful nd import nt r sourc s. Bro dl , th s d t s ts provid n indic tion of th distribution of iv n biodiv rsit v lu s. For x mpl , d t s ts show: ■ V rifi d point r cords of sp ci s occurr nc ; ■ Sp ci s r n m ps; ■ Th xt nt of p rticul r h bit t or cos st m t p , or loc tion of k h bit t f tur s; ■ Mod ll d indic tiv h bit t suit bilit ; nd 70 For th purpos s of this stud , m rin b nthic inv rt br t s r includ d s int r l compon nts of m rin n tur l h bit ts. 183 ■ Th bound ri s of lob ll import nt LPAs nd IRAs th t r pr s nt r s of hi h biodiv rsit cons rv tion v lu . Thr t n d nd r n -r strict d sp ci s r th focus of crit ri 1 nd 2 for th d t rmin tion of critic l h bit t, s d fin d b IFC PS6 nd th r for r pr s nt priorit biodiv rsit v lu s. As found tion l st , th IUCN R d List w s scr n d to id ntif ll thr t n d nd ll r n - r strict d71 m rin sp ci s with lob l r n s th t ov rl p with Sri L nk ’s Exclusiv Economic Zon (EEZ). Thr t n d nd r n -r strict d sp ci s r th focus of crit ri 1 nd 2 for th d t rmin tion of critic l h bit t, s d fin d b IFC PS6 nd th r for r pr s nt priorit biodiv rsit v lu s. A d t il d lit r tur s rch w s compl t d to id ntif sp ti l d t nd ddition l cont xtu l inform tion on th s sp ci s. In ddition to id ntif in di iti d sp ti l d t , suppl m nt r d t sourc s w r id ntifi d nd r summ ri d in th followin subs ctions. In ddition to informin this countr ro dm p, th v il bl s cond r d t is vit ll import nt to inform futur MSP, sit s l ction, nd ESIA st s of offshor wind d v lopm nt. 3 LEGALLY PROTECTED AREAS AND INTERNATIONALLY RECOGNIZED AREAS LPAs nd IRAs r pr s nt hi h-v lu r s d si n t d for v rious biodiv rsit cons rv tion obj ctiv s, nd som should b xclud d from consid r tion for offshor wind d v lopm nt b c us of this. For x mpl , d v lopm nt in K Biodiv rsit Ar s (KBAs – s s ction 3.3) should b void d b c us th s sit s r pr s nt th most import nt pl c s in th world for sp ci s nd th ir h bit ts72. In UNESCO N tur l nd Mix d World H rit Sit s73, nd Alli nc for Z ro Extinction (AZE) sit s, WBG/ IFC st nd rds prohibit d v lopm nt (IFC 2012). Oth r t p s of d si n t d r , such s Ecolo ic ll or Biolo ic ll Si nific nt M rin Ar s (EBSAs, s s ction 3.4), m b much l r r sp ti l d si n tions nd offshor wind d v lopm nt m b f sibl if it is c r full m n d nd d v lopm nt ctiviti s r coordin t d to void k s nsitiv p riods for biodiv rsit . 3.1 N tion ll Prot ct d Ar s A prot ct d r is cl rl d fin d o r phic l sp c , r co ni d, d dic t d, nd m n d, throu h l l or oth r ff ctiv m ns, to chi v th lon -t rm cons rv tion of n tur with ssoci t d cos st m s rvic s nd cultur l v lu s (IUCN D finition 2008). Th r fford d v r in l v ls of l l prot ction in diff r nt n tion l jurisdictions — how v r, th r oft n und rpinn d b commitm nts m d und r int rn tion l conv ntions. 71 R n -r strict d m rin sp ci s r d fin d b IFC PS6 s h vin n xt nt of occurr nc l ss th n 100,000km2. 72 K biodiv rsit r s.or 73 Th r r no UNESCO N tur l nd Mix d World H rit Sit s d si n t d in Turk with m rin compon nts. App ndix A — Sri L nk Priorit Biodiv rsit V lu s 184 Th LPA s st m in Sri L nk is d cl r d und r th F un nd Flor Prot ction Ordin nc . LPAs in Sri L nk ccount for 26.5 p rc nt of th tot l r of th countr . Th r r r n of LPA t p s, which r li n d with th IUCN m n m nt c t ori s74, nd includ th followin 75: ■ Strict n tur r s rv s ■ N tion l p rks ■ N tur r s rv s ■ Jun l corridors ■ M rin n tion l p rks ■ Buff r on s ■ M n d l ph nt r s rv ■ S nctu ri s Of th s , m rin n tion l p rk, n tur r s rv s, nd s nctu ri s r m rin , or h v m rin compon nts, with 27 LPAs cov rin tot l of 100,966 h ct r s of m rin r 76 (Fi ur 1 nd T bl 1). A M rin N tion l P rk is d fin d s n r which includ s th s s w ll s th dj c nt co st l b lt which pr domin ntl consists of cor l r fs, s r ss m dows, nd oth r simil rl v lu bl cos st ms. Entr into n tur r s rv is not p rmitt d. A s nctu r is n r for hum n ctivit , but this ctivit will b subj ct to r ul tions. A s nctu r conv s th low st form of prot ction wh n comp r d to oth r prot ction st tus s. It is unlik l th t offshor wind d v lopm nt would b comp tibl with th cons rv tion obj ctiv s of th m rin n tion l p rks or n tur r s rv s nd th r for th h v b n includ d in th xclusion on . Althou h hum n ctivit is p rmitt d in s nctu ri s, du to th lik l s nsitivit of th priorit biodiv rsit v lu s from imp cts from offshor wind d v lopm nt, th r lso includ d in th xclusion on . Oth r t p s of LPA onl cov r t rr stri l non-m rin r s nd th r for not includ d in th scop of th stud . 74 https://www.iucn.or /th m /prot ct d- r s/ bout/prot ct d- r -c t ori s 75 http://lk.chm-cbd.n t/?p _id=302 76 http://iucnsril nk .or /cons rv tion-sri-l nk /m rin -prot ct d- r s/ 185 Offshor Wind Ro dm p for Sri L nk FIGURE 1: PROTECTED AREAS IN SRI LANKA. App ndix A — Sri L nk Priorit Biodiv rsit V lu s 186 TABLE 1: PROTECTED AREAS IN SRI LANKA WITH MARINE COMPONENTS77. Tot l D cl r d P rc nt of D cl r d L ll Prot ct d Ar M rin Ar (h ) Ar (h ) Ar th t is M rin Hikk duw M rin N tion l P rk 102 102 100% Pi on Isl nd M rin N tion l P rk 471 471 100% Ad m’s Brid M rin N tion l P rk 18,990 18,990 100% D lft Isl nd N tion l P rk (includ s 1,846 124 6.71% 100m wid b lt of n r shor w t rs) Uss n od N tion l P rk (includ s 349 200 57% 500m wid b lt of n r shor w t rs) Chundikul m N tion l P rk 19,565 8,606 43% N ru N tur R s rv 4,464 1,157 25% N ndik d l N tur R s rv 4,142 3,602 87% N rkovil N tur R s rv 7,882 5,242 66% Vid th lthiv N tur R s rv 29,180 22,412 77% P r itiv S nctu r 97 97 100% Gr t Sob r Isl nd S nctu r 65 65 100% Littl Sob r Isl nd S nctu r 6 6 100% Rum s l S nctu r 171 160 94% Rock Isl nd S nctu r 1 1 100% B r r f S nctu r 30,670 30,670 100% V nk l i S nctu r 4,839 3,014 62% R k w S nctu r (includ s 500m 271 226 83% wid b lt of n r shor w t rs) God w S nctu r (includ s 500m 231 192 83% wid b lt of n r shor w t rs) Kokil i S nctu r 1,995 1,995 100% S ruwil -All i S nctu r 15,540 611 3.90% Kudumbi l P n m S nctu r 6,534 338 5% Nim l w S nctu r 1,066 36 3.40% K l m ti S nctu r 2,525 338 13% Y l N tion l P rk 241,868 252 0.10% Kum n N tion l P rk 88,129 353 0.40% Bund l N tion l P rk 9,138 1,706 18% 77 D t sh r d b th D p rtm nt of Wildlif Cons rv tion (2018) with th Du on nd S r ss Cons rv tion Proj ct — Sri L nk , sourc : http://iucnsril nk .or / cons rv tion-sri-l nk /m rin -prot ct d- r s/ 187 Offshor Wind Ro dm p for Sri L nk 3.2 R ms r Sit s R ms r sit s r w tl nds of int rn tion l import nc th t h v b n d si n t d und r th crit ri of th R ms r Conv ntion on W tl nds for cont inin r pr s nt tiv , r r , or uniqu w tl nd t p s, or for th ir import nc in cons rvin biolo ic l div rsit . Contr ctin p rti s r xp ct d to m n th ir R ms r Sit s to m int in th ir colo ic l ch r ct r nd r t in th ir ss nti l functions nd v lu s for futur n r tions. Th r r six R ms r sit s d si n t d in Sri L nk , on of which ncomp ss s m rin compon nts: V nk l i S nctu r 78. This sit supports hi h cos st m nd sp ci s div rsit . Th w tl nd is import nt for m n w t rbird sp ci s includin nnu l mi r nts. Oth r import nt biodiv rsit f tur s includ ov r 60 sp ci s of fish s w ll s f din nd br din rounds for r r nd thr t n d sp ci s such s m rin turtl s nd du on s. It is unlik l th t offshor wind d v lopm nt is comp tibl with m int inin R ms r sit s’ colo ic l ch r ct r nd function nd th r for V nk l i S nctu r R ms r Sit h s b n includ d in th xclusion on l r. 3.3 K Biodiv rsit Ar s KBAs h v b n d si n t d to cov r th most import nt pl c s in th world for sp ci s nd th ir h bit ts. KBAs r id ntifi d usin lob l st nd rd th t includ crit ri th t w r d v lop d throu h multi-st k hold r proc ss. Th s crit ri includ qu ntit tiv thr sholds th t m n th t sit s r lob ll import nt for th lon -t rm surviv l of biodiv rsit . KBA id ntific tion is ri orous, tr nsp r nt, nd c n b ppli d consist ntl in diff r nt countri s nd ov r tim . Sit s qu lif s lob l KBAs if th m t on or mor of 11 crit ri , clust r d into fiv hi h r l v l c t ori s: thr t n d biodiv rsit , o r phic ll r strict d biodiv rsit , colo ic l int rit , biolo ic l proc ss s, nd irr pl c bilit 79. Th KBA crit ri r bro dl li n d with IFC PS6 crit ri for critic l h bit t, lthou h KBA crit ri r wid r, nd th r for not ll KBAs will qu lif s critic l h bit t. All xistin BirdLif Int rn tion l Import nt Bird Ar s (IBA) qu lif s KBAs (s s ction 3.3.1). All xistin Alli nc for Z ro Extinction (AZE) sit s r lso KBAs. Sri L nk h s 12 d si n t d KBAs with m rin compon nts. Th m jorit of th s r found on th north nd w st co sts. J fn L oon (K Biodiv rsit Ar s P rtn rship 2020 ), Ar l South- Pun l i (K Biodiv rsit Ar s P rtn rship 2020b), nd K ts Isl nd-M nd thiv (K Biodiv rsit Ar s P rtn rship 2020c) r clust r d in th north, mph sisin th import nc of this r for biodiv rsit . Th s r s ll support m n rov s nd s ltm rsh which r vit l for m rin f un s w ll s bird lif . Two KBAs, Bund l compl x nd Y l , on th south st co st r import nt r s for th L ss r Adjut nt (L ptoptilos j v nicus — IUCN Vuln r bl ). Th popul tion nd colo of this sp ci s is poorl und rstood in Sri L nk . How v r, th r mi r tor nd r known to br d on th isl nd (D Silv t l. 2015). D si n tion s KBA do s not conf r l l prot ction. How v r, th IUCN r comm nds th t nvironm nt ll d m in industri l ctiviti s nd infr structur should b void d within KBAs80 nd th r for ll KBAs h v b n includ d within th xclusion on l r. 78 https://rsis.r ms r.or /sit s/d f ult/fil s/rsiswp_s rch/ xports/R ms r-Sit s- nnot t d-summ r -Sri-L nk .pdf?1618474853 79 http://www.k biodiv rsit r s.or /workin -with-kb s/proposin -upd tin /crit ri 80 https://port ls.iucn.or /libr r /sit s/libr r /fil s/r sr cfil s/wcc_2016_r c_102_ n.pdf App ndix A — Sri L nk Priorit Biodiv rsit V lu s 188 3.3.1 Import nt Bird Ar s Th BirdLif Glob l S bird Pro r mm h s id ntifi d M rin IBAs th t includ s bird br din coloni s, for in r s round br din coloni s, non-br din (usu ll co st l) conc ntr tions, mi r tor bottl n cks, nd f din r s for p l ic sp ci s. Th m thodolo for th d si n tion of m rin IBAs is d scrib d in th m rin IBA tookit (BirdLif Int rn tion l 2010). Sri L nk h s no m rin r s IBAs81. How v r, th r r s v r l co st l IBAs th t includ m rin bird sp ci s in th ir d si n tion. Th s includ : ■ J fn L oon (Spot-bill d, P lic n P l c nus philipp nsis), P ri k l puw mouth (Curl w S ndpip r, C lidris f rru in ); ■ Mund l L k (M rsh S ndpip r, Trin st n tilis; G r n , Sp tul qu rqu dul ); ■ An iwilund w compl x (Spot-bill d P lic n, P. philipp nsis); ■ Bund l compl x (L ss r Adjut nt, L ptoptilos j v nicus; Spot-bill d P lic n, P. philipp nsis); nd ■ Y l (L ss r Adjut nt, L. j v nicus; Spot-bill d P lic n, P. philipp nsis; Ori nt l D rt r, Anhin m l no st r). All KBAs, includin IBAs, h v b n includ d within th xclusion on l r. 3.4 Ecolo ic ll or Biolo ic ll Si nific nt Ar s EBSAs r sp ci l r s in th oc n th t support th h lth functionin of oc ns nd th m n s rvic s th t it provid s. Th Conf r nc of th P rti s (COP 9) to th Conv ntion on Biolo ic l Div rsit dopt d th followin s v n sci ntific crit ri for id ntif in EBSAs: uniqu n ss or r rit , sp ci l import nc for lif histor st s of sp ci s, import nc for thr t n d, nd n r d, or d clinin sp ci s nd/or h bit ts, vuln r bilit , fr ilit , s nsitivit , or slow r cov r , biolo ic l productivit , biolo ic l div rsit , nd n tur ln ss. Th id ntific tion of EBSAs nd th s l ction of cons rv tion nd m n m nt m sur s is m tt r for st t s nd comp t nt int r ov rnm nt l or ni tions, in ccord nc with int rn tion l l w (includin th UN Conv ntion on th L w of th S ). Th crit ri do not includ qu ntit tiv thr sholds, but in principl th h v lot in common with WBG/IFC N tur l H bit ts d finition nd critic l h bit t crit ri , nd could th r for constitut nd import nt hi h-l v l pl nnin consid r tion for offshor wind d v lopm nt. Th r r four EBSAs (Conv ntion on Biolo ic l Div rsit 2016) in Sri L nk : ■ Sri L nk n sid of Gulf of M nn r; ■ Th south rn co st l nd offshor w t rs b tw n G ll nd Y l N tion l P rk; ■ Co st l nd offshor r of th Gulf of M nn r; nd ■ Trincom l C n on nd ssoci t d cos st ms. Th import nt f tur s r co ni d in ch of th s EBSA d si n tions r summ ris d in T bl 2. 81 http://d t on .birdlif .or /countr /sri-l nk /m rin 189 Offshor Wind Ro dm p for Sri L nk Du to th l r sp ti l xt nt of th EBSA nd l ck of d t il d sp ti l inform tion on th distribution of th ir biodiv rsit v lu s, ll four EBSAs r includ d in th r striction on l r. How v r, ddition l surv d t is r quir d to b tt r ss ss wh th r offshor wind d v lopm nt is ppropri t within th EBSA. TABLE 2: EBSAS IN SRI LANKA (CONVENTION ON BIOLOGICAL DIVERSITY, 2016). M rin N tur l EBSA Turtl s Birds Fish M mm ls H bit ts Th south rn Th r is p rticul rl Th r supports n/ M n import nt Hi hl productiv co st l nd import nt For popul tions of fiv fish r sp ci s upw llin s st m. offshor p m blu wh l s sp ci s of s turtl . includin skipj ck w t rs (B l nopt r Of th s , th h wksbill tun (K tsuwonus b tw n musculus br vic ud ) turtl (Er tmoch l s p l mis) nd llowfin G ll nd Y l s w ll s Br d ’s imbric t ) is list d s tun (Thunnus N tion l P rk wh l s (B l nopt r critic ll nd n r d, lb c r s), swordfish br d i). Unlik oth r nd th r n (Ch loni (Xiphi s l dius), popul tions of p m m d s) nd lo rh d s ilfish, nd m rlins blu wh l s, r sid nts (C r tt c r tt ) turtl s (Istiophorus) r do not mi r t to nd n r d. Turtl s us support d b th r . cool r w t rs, but this r to mi r t to Juv nil wh l sh rks r m in in th r nd from n stin sit s (Rhincodon t pus), r-round to f d. nd to m t . m nt ( nus M nt ), Th r lso supports nd mobul (f mil sp rm wh l s (Ph s t r Mobulid ) r s m croc ph lus), h v b n si ht d in humpb ck wh l s th r . (M pt r nov n li ) nd Risso’s dolphins (Gr mpus ris us). Sri L nk n Glob ll nd n r d This co stlin This r supports This str tch of sid of th Gulf m rin m mm l is import nt for subst nti l co stlin h rbour of M nn r sp ci s includin nd n r d sp ci s of div rsit of fish, fr il nd s nsitiv th blu wh l s turtl s, lik l du sh rks, nd r s. cos st ms such s (B l nopt r musculus) to th s r ss nd cor l r fs, s r ss nd du on (Du on m n rov s cos st ms b ds, m n rov s, du on ) h v b n which function s stu ri s, nd r cord d in th r . f din rounds. mudfl ts. Tr dition ll import nt n tur l p rl b ds r lso loc t d h r . Co st l nd S r ss in th r Th Gulf of M nn r n/ n/ Cor l r fs, offshor r provid s import nt is n import nt m n rov s, nd of th Gulf of f din nd nurs r for in nd mi r tor s r ss b ds. M nn r rounds for du on (D. rout for oliv ridl du on ) nd oth r l r (L pidoch l s oliv c ). m rin m mm ls. App ndix A — Sri L nk Priorit Biodiv rsit V lu s 190 M rin N tur l EBSA Turtl s Birds Fish M mm ls H bit ts Trincom l Th r is import nt Fiv sp ci s of s n/ Th r Cor l r f h bit ts, C n on nd for 11 sp ci s of turtl s r l on th r supports wh l mud fl ts, fjords, nd ssoci t d c t c ns: two sp ci s for for in , n stin , sh rks (R. t pus). n import nt multipl cos st ms of b l n wh l s – blu nd s mi r tor subm rin c n on wh l (B. musculus) rout : r n turtl (C. compl x. nd Br d ’s wh l m d s), oliv ridl (B l nopt r d ni); turtl (L. oliv c ), nd nin sp ci s h wksbill turtl (E. of tooth d wh l s imbric t ), lo rh d – sp rm wh l (P. turtl (C. c r tt ), nd m croc ph lus), kill r l th rb ck turtl wh l (Orcinus orc ), (D rmoch l s cori c ). dw rf sp rm wh l (Ko i sim ), Lon m n’s b k d wh l (Indop c tus p cificus), f ls kill r wh l (Ps udorc cr ssid ns), rou h-tooth d dolphin (St no br d n nsis), bottl nos dolphin (Tursiops trunc tus), strip d dolphin (St n ll co rul o lb ), nd spinn r dolphin (St n ll lon irostris). 3.5 Import nt M rin M mm l Ar s Import nt M rin M mm l Ar s (IMMAs) r joint proj ct b tw n th IUCN Sp ci s Surviv l Commission (SSC) nd World Commission on Prot ct d Ar s (WCPA) (IUCN-MMPATF 2019). IMMAs r d fin d s discr t portions of h bit t, import nt to m rin m mm l sp ci s, th t h v th pot nti l to b d lin t d nd m n d for cons rv tion. IMMAs r d si n t d usin st nd rd crit ri , throu h th or ni tion of r ion l xp rt workshops: ■ Crit rion A – Sp ci s or Popul tion Vuln r bilit : Ar s cont inin h bit t import nt for th surviv l nd r cov r of thr t n d nd d clinin sp ci s. ■ Crit rion B – Distribution nd Abund nc • Sub-crit rion B1 – Sm ll nd R sid nt Popul tions: Ar s supportin t l st on r sid nt popul tion, cont inin n import nt proportion of th t sp ci s or popul tion, th t r occupi d consist ntl . • Sub-crit rion B2 – A r tions: Ar s with und rl in qu liti s th t support import nt conc ntr tions of sp ci s or popul tion. ■ Crit rion C – K Lif C cl Activiti s • Sub-crit rion C1 – R productiv Ar s: Ar s th t r import nt for sp ci s or popul tion to m t , iv birth, nd/or c r for oun until w nin . • Sub-crit rion C2 – F din Ar s: Ar s nd conditions th t provid n import nt nutrition l b s on which sp ci s or popul tion d p nds. 191 Offshor Wind Ro dm p for Sri L nk • Sub-crit rion C3 – Mi r tion Rout s: Ar s us d for import nt mi r tion or oth r mov m nts, oft n conn ctin distinct lif -c cl r s or th diff r nt p rts of th r-round r n of non-mi r tor popul tion. ■ Crit rion D – Sp ci l Attribut s • Sub-crit rion D1 – Distinctiv n ss: Ar s which sust in popul tions with import nt n tic, b h vior l or colo ic ll distinctiv ch r ct ristics. • Sub-crit rion D2 – Div rsit : Ar s cont inin h bit t th t supports n import nt div rsit of m rin m mm l sp ci s. Th crit ri h v qu ntit tiv thr sholds th t r li n d with both IUCN st nd rd for th id ntific tion of KBAs (IUCN 2016), nd IFC PS6 crit ri for critic l h bit t. Th r for , IMMAs should n r ll m t IUCN KBA nd pot nti ll IFC Critic l H bit t crit ri . Th r r two IMMAs in Sri L nk , for which th IMMA qu lif in crit ri nd sp ci s r summ ri d in T bl 3: ■ Th southw st to st rn Sri L nk IMMA, loc t d on th southw st to st rn co sts of th isl nd; nd ■ Th Gulf of M nn r nd P lk B IMMA. Southw st to st rn Sri L nk IMMA is critic l f din , br din , nd c lvin r for blu wh l , sp rm wh l , nd spinn r dolphin. Th lob l popul tion of blu wh l s is stim t d t 5,000–15,000 (IUCN 2018) nd th Sri L nk n r sid nt popul tion t 600–1,500 m tur individu ls (Ch n 2019). This r is th r for lik l to qu lif s critic l h bit t, s 10-12 p rc nt of th lob l popul tion r sid in th r . Th IMMA lso supports wid sp ci s div rsit . Th r is l r d r of ov rl p b tw n th IMMA nd m rin prot ct d r s, lthou h th IMMA xt nds ov r much l r r s r . Du to l ck of d t il d inform tion on th sp ti l distribution of wh l popul tions within this l r r , this IMMA is includ d within th r striction on . How v r, ddition l surv d t is r quir d to b tt r ss ss wh th r offshor wind d v lopm nt is ppropri t within this IMMA. Th Gulf of M nn r nd P lk B IMMA is d si n t d for du on . Althou h th IMMA onl cov rs 0.32 p rc nt of th du on r n , with l ss th n 300 individu ls l ft in South Asi , n r s us d b du on for f din , br din , nd c lvin is of hi h r ion l si nific nc . Offshor wind d v lopm nt pos s numb r of risks to th du on popul tion, of which disturb nc is possibl of most conc rn. Althou h d t on du on uditor bilit is l ckin , du on uditor s nsitivit is stim t d to f ll b tw n th low-fr qu nc nd mid-fr qu nc c t c ns (K nt t l. 2009). How v r, du on r spons tim is slow, oft n r sultin in bo t strik s v n b slow movin v hicl s. Du on s h v b n found to r ct to hi h-sp d outbo rd bo t motors t 150m dist nc nd ircr ft n in s from 300m, but r bl to h bitu t to bo t nois s in bus h rbours. Th r is l ck of studi s on th imp cts of pilin -r l t d nois imp cts on du on , how v r th r r studi s on Phocid s ls th t provid n indic tion of pot nti l imp cts. (F ulkn r t l. 2019) pr dict d th t Phocid s ls would App ndix A — Sri L nk Priorit Biodiv rsit V lu s 192 suff r p rm n nt h rin loss (t rm d P rm n nt Thr shold Shift, PTS) up to 2.4km from pil drivin . (Russ ll t l. 2016), r cord d si nific nt t mpor r displ c m nt in H rbour S l of up to 25km from th c nt r of th wind f rm durin pilin . R ss ssm nt of th d t from (Russ ll t l. 2016) w s compl t d b (Wh t t l.. 2020). This pr dict d th t four of th 24 tr ck d s ls r c iv d nois l v ls th t xc d d th thr shold t which PTS would occur nd tw lv w r pr dict d to xc d th thr shold for t mpor r h rin loss (t rm d T mpor r Thr shold Shift, TTS). PTS thr sholds w r xc d d b tw n 3.9 nd 6.9 km from pilin ctiviti s, nd TTS thr sholds w r xc d d up to 17km w . In s p r t stud , si nific nt r duction in s l numb rs w s obs rv d t Røds nd s l s nctu r , situ t d t n kilom t rs from th pilin ctivit (Edrén t l. 2004). Nois prop tion dist nc s from pilin will v r ccordin to sit -sp cific f ctors such s b th m tr , substr t , nd pil t p – s w ll s pot nti l miti tion m sur s th t mi ht b mplo d ( . ., bubbl curt ins). Th r is n d for furth r r s rch nd ss ssm nt, but iv n th pot nti l risk to du on s from und rw t r nois , disturb nc is lik l to b si nific nt if unmiti t d pilin t k s pl c . Th b sis for th d lin tion of th bound ri s of th Gulf of M nn r nd P lk B IMMA is not known, but xt nds si nific ntl b ond th r s of m pp d s r ss b ds (s s ction 8.2). Th r for , Gulf of M nn r nd P lk B IMMA is provision ll tr t d s R strict d Zon , but n propos d wind d v lopm nt within 25km of surroundin s r ss b ds would lik l b hi h risk with r sp ct to pot nti l imp cts on du on , nd r quir c r ful ss ssm nt prior to th sitin of propos d offshor wind d v lopm nts. TABLE 3: IMMAS IN SRI LANKA. IMMA Addition l Sp ci s - (IMMA IMMA Ar (km2) Prim r Sp ci s 82 Crit ri Crit rion D (ii) Div rsit ) B l nopt r d ni, B l nopt r omur i, St n ll Sp rm Wh l A; B (2); C tt nu t , St n ll co rul o lb , Ph s t r m croc ph lus (1, 2) Tursiops trunc tus, St no br d n nsis, L nod lphis hos i, Gr mpus ris us, Globic ph l Southw st to m crorh nchus, P ponoc ph l st rn Sri 28,699 l ctr , Ps udorc cr ssid ns, L nk 83 Blu Wh l A; B (2); C F r s tt nu t , Orcinus orc , (1, 2) Ko i sim , Ko i br vic ps B l nopt r musculus Spinn r Dolphin B (2); C (1, 2) St n ll lon irostris Gulf of M nn r Du on 20,663 A; B (1); C (2) nd P lk B 84 Du on du on 82 https://www.m rin m mm lh bit t.or /imm s/imm -crit ri l/ 83 https://www.m rin m mm lh bit t.or /portfolio-it m/southw st- st-sri-l nk / 84 https://www.m rin m mm lh bit t.or /portfolio-it m/ ulf-m nn r-p lk-b / 193 Offshor Wind Ro dm p for Sri L nk 4 MARINE MAMMALS Sri L nk supports hi h div rsit of m rin m mm ls, with 27 sp ci s r cord d to d t . Of th s , six r ss ss d s lob ll thr t n d (T bl 4). M rin m mm ls f tur promin ntl in th d si n tions of s v r l ov rl ppin LPAs nd IRAs s d scrib d in s ction 3, p rticul rl th two IMMAs nd four EBSAs. Di iti d sp ti l d t s ts in ddition to thos list d in s ction 3 w r not found for m rin m mm ls, lthou h th r r ddition l surv nd si htin d t v il bl th t would b us ful to inform MSP, sit s l ction, nd ESIA. It is lik l th t th m jorit of th import nt r s for m rin m mm ls r includ d in d si n t d PA nd IRAs.TABLE 4: THREATENED MARINE TABLE 4: THREATENED MARINE MAMMALS OCCURRING IN SRI LANKA. L tin N m Common N m IUCN Thr t St tus Glob l R n Ar (km2 ) B l nopt r musculus Blu Wh l EN 434,753,529 Sous plumb Indi n Oc n Humpb ck Dolphin EN 493,077 Du on du on Du on VU 6,469,966 N ophoc n phoc noid s Indo-P cific Finl ss Porpois VU 2,946,071 Ph s t r m croc ph lus Sp rm Wh l VU 347,262,853 Sous chin nsis Indo-P cific Humpb ck Dolphin VU 1,074,612 5 MARINE TURTLES Th r r fiv thr t n d sp ci s of m rin turtl s with lob l r n s th t ov rl p with th Sri L nk EEZ: oliv ridl turtl (L pidoch l s oliv c ), r n turtl (Ch loni m d s), h wksbill turtl (Er tmoch l s imbric t ), l th rb ck turtl (D rmoch l s cori c ), nd lo rh d turtl (C r tt c r tt ) (T bl 5). TABLE 5: THREATENED MARINE TURTLES OCCURRING IN SRI LANKA. L tin N m Common N m IUCN Thr t St tus Glob l R n Ar (km2) L pidoch l s oliv c Oliv Ridl VU 79,530,390 Er tmoch l s imbric t H wksbill Turtl CR 276,653,106 Ch loni m d s Gr n Turtl EN 176,482,666 D rmoch l s cori c L th rb ck VU 216,124,441 C r tt c r tt Lo rh d Turtl VU 271,358,117 Gr n turtl s nd oliv ridl turtl s r th most bund nt sp ci s of turtl lon th co sts of Sri L nk . Th s two sp ci s ccount for th m jorit of n stin sit s, with 68 p rc nt nd 30 p rc nt r sp ctiv l in 2014 (J thil k t l. 2017) fiv sp ci s w r r port d in th co st l b lt of Sri L nk comin for n stin : r n turtl (Ch loni m d s). Both sp ci s r known to n st t m n sit s cross th southw st rn to th south st rn co st (T bl 6). Littl is known bout h wksbill, l th rb ck, nd lo rh d turtl s in Sri L nk ; how v r, th h v b n obs rv d n stin t sm ll numb r of b ch s (T bl 6). Sri L nk n lo rh d turtl s do not int rbr d with thos ls wh r nd r consid r d s p r t m n m nt unit (H m nn t l. 2013). As lo rh d turtl s r not known to n st in th north st rn Indi n Oc n (H m nn t l. 2013), Sri L nk n n stin sit s r r ion ll import nt for th sp ci s. App ndix A — Sri L nk Priorit Biodiv rsit V lu s 194 Althou h turtl n stin b ch s r distribut d cross th ntir co stlin , xc pt in Putt l m nd G mp h districts, th prim r n stin b ch s c n b found on th w st, south, nd th south st rn co sts. G ll nd H mb ntot districts in p rticul r h rbour th most us d n stin b ch s. M rin turtl n stin b ch s f tur in th d si n tions of LPAs nd EBSAs s d scrib d in s ction 3. How v r, th r r lso m n import nt n stin sit s lon th w st co st which r not cov r d b th s d si n tions. Th loc tions of n stin b ch s h v b n di iti d from th followin sourc s, J thil k t l. 2017; D p rtm nt of Wildlif Cons rv tion (DWC), Sri L nk ; Biodiv rsit Educ tion And R s rch (BEAR) fiv sp ci s w r r port d in th co st l b lt of Sri L nk comin for n stin : r n turtl (Ch loni m d s), which r includ d in th xclusion on . Tr ckin studi s h v shown th t th n ritic r s up to 10km ith r sid of n stin b ch r import nt h bit t for both r n nd lo rh d turtl s (possibl limit d to 1-2km from th co st for r n turtl nd 5km for lo rh d (Tuck r t l. 1995; Schofi ld t l. 2010; W rs t l. 2011)), nd for juv nil turtl s m kin th ir w to th oc n post-h tchin . Th id ntifi d n stin b ch s, plus 5km buff r r includ d within th xclusion on . Inform tion on s turtl for in or mi r tor b h vior r s in Sri L nk is limit d (N l 2012; H m nn & Limpus 2019). Offshor n r K nd kuli , thous nds of oliv ridl turtl s r t ch r without n stin in th r . Lo rh d turtl s h v b n obs rv d for in off th Gulf of M nn r (H m nn t l. 2013). H wksbill turtl s h v b n obs rv d for in in s r ss b ds, cor l r fs, nd rock r fs. No inform tion bout th ir for in or mi r tor b h vior for Sri L nk w s found. 195 Offshor Wind Ro dm p for Sri L nk TABLE 6: MAJOR NESTING BEACHES*. Oliv Ridl L th rb ck Lo rh d Loc tion Gr n Turtl H wksbill Turtl Turtl Turtl Turtl Ahun ll    Akur l  Amb l n od   Amb l ntot   B l piti   B nthot   Bund l      Duw mod r   H b r duw   K h w    Ko l    Kos od      M h p l n     M v l   Mount L v ni    Induruw    R k w      Us n od    W r h n   W dik nd  Y l    *Sourc s: (R j k run t l. 2009; D p rtm nt of Wildlif Cons rv tion (DWC), Sri L nk 2014; J thil k t l. 2017) App ndix A — Sri L nk Priorit Biodiv rsit V lu s 196 6 BIRDS 6.1 S bird Br din Coloni s S nd Isl nd III (9.067°N 79.633°E) is four-h ct r isl nd to th w st of M nn r Isl nd nd is th most import nt isl nd for s bird br din in Sri L nk . This is th onl known br din colon in Sri L nk for m n s birds includin soot t rn (On choprion fusc tus), bridl d t rn (St rn n th tus), S und rs’s t rn (S. s und rsi), ros t t rn (St rn dou llii), common t rn (S. hirundo), nd brown nodd (Anous stolidus) (Asi n D v lopm nt B nk (ADB) 2017). Both r t r cr st d t rn (Th l ss us b r ii) nd littl t rn (St rnul lbifrons) lso m k us of this r s br din colon (Asi n D v lopm nt B nk (ADB) 2017). S nd Isl nd III is loc t d within Ad m’s Brid M rin N tion l P rk nd h s th r for b n includ d in th xclusion on . No ddition l di iti d sp ti l d t w s found in r l tion to br din s bird sp ci s; how v r th followin sub-s ctions m k s r f r nc s to studi s th t provid surv nd si htin s d t v il bl th t would b us ful to inform MSP, sit s l ction nd ESIA. 6.2 Fl w s / Bottl n cks Th r t st thr t to mi r tor s birds from offshor wind d v lopm nt is collision with turbin s. Th w st co st, from th Guld of M nn r southw rds, is p rticul rl import nt for mi r tor s birds with up to 400,000 birds fl in southw rds durin d tim (D Silv 1997). Durin th southw st monsoon from Jun /Jul to Octob r/Nov mb r m ss mi r tion of bridl d t rns occurs, join d b oth r sp ci s such s w d -t il d sh rw t r (Puffinus p cificus), Wilson’s storm-p tr l (Oc nit s oc nicus), l ss r fri t bird (Fr t ri l), brown sku (C th r ct nt rctic ), pom rin sku (St rcor rius pom rinus), brown nodd , (Anous stolidus), nd l ss r nodd (Anous t nuirostris). In th int r-monsoon l p riod (Octob r/Nov mb r) l r numb r of Wilson’s storm-p tr ls (Oc nit s oc nicus) rriv in Sri L nk . This sp ci s lik l us s th w st co st s st in r b for continuin on to br din r s in Ant rctic (D Silv 1997). Durin this p riod m n wint r visitors, such s th bl ck t rn (Chlidoni s ni r) lso rriv lon th w st co st. Jun /Jul brin s th onl summ r br din visitor, th ros t t rn, which n st on th w st co st. Th width of th mi r tor corridor for s birds lon th w st co st is unknown; how v r, l r numb rs of mi r tor s birds r visibl from l nd b s d v nt points lon th w st co st, includin T l wil , Chil w, N ombo, Colombo ( nd its co st l suburbs), B ruw l , B ntot , Amb l n od , Hikk duw , nd G ll . For non-m rin mi r tor bird sp ci s, th r t st thr t from offshor wind st ms from collision with turbin s loc t d on mi r tor bottl n cks. Sri L nk is situ t d on th C ntr l Asi n/South Asi n fl w . Ov r 300 sp ci s mi r t lon th C ntr l Asi n Fl w includin s v r l sp ci s th t und rt k r ul r, s son l mov m nts within th Indi n subcontin nt. Amon th s r th indi n pitt (Pitt br ch ur ), pi d thrush (Zooth r w rdii), nd k shmir fl c tch r (Fic dul subrubr ) (VU), ll of which wint r in south rn Indi nd Sri L nk (BirdLif Int rn tion l n.d.). D spit w lth of inform tion for oth r fl w s, d t is l ckin for Sri L nk r rdin th s son l composition of mi r tor w v s (Kot m t l. 2006). Sri L nk is lso import nt for th E st Asi -Austr l si n fl w s birds mi r t round th Indo-M l p ninsul nd down th st Asi n co stlin to con r t t sm ll numb r of sit s, includin Sri L nk (B mford t l. 2008). 197 Offshor Wind Ro dm p for Sri L nk Non-m rin mi r tor birds nt r Sri L nk throu h s v r l ntr points. Th m jor ntr points includ Ad m’s Brid nd M nn r (Asi n D v lopm nt B nk (ADB) 2017). Ad m’s Brid provid s on of th import nt ntr points intro Sri L nk for thous nds of mi r tor birds rrivin throu h th E st Asi n-Austr l si n Fl w . Th s birds ith r nt r M nn r from J ffn p ninsul or throu h R m sw r m vi Ad m’s Brid . It is lik l th t m n w k fli rs follow Ad m’s Brid wh n nt rin Sri L nk to void wid w t r crossin s. M nn r is lso k ntr nd xit point for mi r tor birds usin th C ntr l Asi n Fl w . Th birds th n disp rs into th w tl nd h bit ts of th r , which r hi hl colo ic ll si nific nt for nnu l mi r nts, providin f din rounds nd wint rin sit s for m n w t rbirds. This r th r for pl s n import nt rol in Sri L nk for mi r tor birds (Asi n D v lopm nt B nk (ADB) 2017). No ddition l di iti d sp ti l d t w s found in r l tion to mi r tor bird sp ci s; how v r, it is cl r th t th whol w st co st of Sri L nk is v r import nt for mi r tor s birds. 6.3 Thr t n d M rin Birds in Sri L nk Onl thr thr t n d m rin bird sp ci s h v IUCN lob l r n s th t ov rl p with Sri L nk EEZ (T bl 7), includin sin l tru s bird (Proc ll riid ) sp ci s — trind d p tr l (Pt rodrom rminjoni n – vuln r bl ). How v r, th r is no furth r publish d inform tion bout th trind d p tr l’s us of Sri L nk s f din , br din , or mi r tor r s. Th spoon-bill d s ndpip r (C lidris p m — critic ll nd n r d) w s spott d for th first tim in Sri L nk in ov r 40 rs in 2018 t V nk l i S nctu r 85. Th l ss r djunct (L ptoptilos j v nicus – vuln r bl ) is known to br d on th isl nd but ctiv n sts r r r l obs rv d. Th r l r l r strict d to th dr lowl nd r s on Sri L nk , includin co st l w tl nds (D Silv t l. 2015). No ddition l di iti d sp ti l d t w s found in r l tion to thr t n d bird sp ci s. TABLE 7: THREATENED MARINE BIRD SPECIES OCCURRING IN SRI LANKA. L tin N m Common N m IUCN Thr t St tus Glob l R n Ar (km2 ) C lidris p m Spoon-bill d S ndpip r CR 537,244 L ptoptilos j v nicus L ss r Adjut nt VU 3,076,578 Pt rodrom rminjoni n Trind d P tr l VU 47,405,599 85 https://mi r ntw tch.wordpr ss.com/2018/06/25/spoon-bill d-s ndpip r-found-in-sri-l nk / App ndix A — Sri L nk Priorit Biodiv rsit V lu s 198 7 FISH Accordin to th IUCN R d List, th r r 21 thr t n d bon fish nd 66 thr t n d c rtil inous fish sp ci s whos lob l r n s ov rl p th Sri L nk n EE, of which 16 c rtil inous fish r critic ll nd n r d. V r f w LPA nd IRA d si n tions (s ction 3) includ fish s sp cific f tur s of int r st, lthou h m n includ h bit ts th t r lik l import nt to fish. Fish r id ntifi d s import nt f tur s of th two of th thr Sri L nk n EBSAs. Th south rn co st l nd offshor w t rs b tw n G ll nd Y l N tion l P rk is d si n t d for import nt fish r sp ci s, nd th Trincom l C n on nd ssoci t d cos st ms for wh l sh rk (T bl 2). No ddition l di iti d sp ti l d t h s b n id ntifi d in r l tion to fish. 8 NATURAL HABITATS 8.1 Thr t n d N tur l H bit ts Althou h Sri L nk h s no offici l list of thr t n d n tur l h bit ts, s v r l cos st ms r hi hl import nt both colo ic ll nd conomic ll for th countr . This includ s p rl muss l b ds, s r ss b ds, m n rov s, cor l r fs, nd co st l s nd dun s. ■ P rl b ds: Th Gulf of M nn r is on of th most bund nt sourc s of n tur l p rls lob ll (K tupoth 2019), m kin this r of hi h conomic nd colo ic l import nc to Sri L nk . To th north, P lk B nd th Gulf of Kutch r lso import nt p rl b d r sourc s for Indi . In th Gulf of M nn r, th s p rl b ds r conc ntr t d lon th co stlin from M nn r Isl nd in th north to K lpiti in th south. Whil th r is no di iti d sp ti l inform tion, v il bl m ps show th t p rl b ds f ll within th Gulf of M nn r EBSA, which is th r for includ d in th r striction on . ■ S r ss: S r ss b ds support hi h biodiv rsit nd provid ss nti l cos st ms (Du rt t l. 2008; B rt lli & Unsworth 2014) formin xt nsiv h bit ts which support hi hl div rs communiti s. Th s r ss s th ms lv s ssimil t nd c cl nutri nts nd oth r ch mic ls. Th ir xt nsiv bov - nd b low- round biom ss tr ps s dim nts, r ducin co st l turbidit nd rosion, s w ll s providin h bit t for oth r or nisms both tt ch d nd fr -livin (H mmin & Du rt 2000). Th provid import nt f din , br din , nd nurs r rounds for m n thr t n d sp ci s, includin du on s nd m rin turtl s. Fift n sp ci s of s r ss r found in Sri L nk lon th w st rn, northw st rn, nd north rn co stlin (P h l w tt r chchi n.d.). Import nt s r ss r sourc s r clust r d lon th northw st rn co st from Putt l m L oon in th Gulf of M nn r to th north rn nd of P lk B . Isol t d s r ss b ds c n lso b found on th st co st n r Kokkil i L oon. Du to th ir import nc for th cos st m nd thr t n d m rin sp ci s ( sp ci ll du on ), th m pp d r s of s r ss b ds sourc d from th All n Cor l Atl s86 r includ d in th xclusion on . 86 https:// ll ncor l tl s.or / 199 Offshor Wind Ro dm p for Sri L nk ■ M n rov s: M n rov s r p tchil distribut d lon th ntir Sri L nk n co stlin (Ch ndr s k r t l. 2016). Th l r st m n rov r s loc t d in th north, northw st rn, nd st co sts. Du to th n d for fr shw t r input, th r clust r d round l oons nd stu ri s. Th tot l xt nt of m n rov s round Sri L nk h s b n stim t d t 4,000–10,000h (J tiss 2012). Th pl k rol s nurs r r s for v ri t of sp ci s, includin comm rci ll import nt fish. Much of th m n rov distribution f lls within LPAs nd IRAs. Th m pp d r s of m n rov sourc d from Cl rks L bs87 r includ d in th xclusion on . ■ Cor l r f: Cor l r fs r m inl found on th south nd northw st co st s w ll s th st co st t Trincom l . Cor l r fs r ss nti l for m n thr t n d m rin sp ci s in Sri L nk , includin s turtl s du on s, nd div rsit of fish sp ci s. Whil th m jorit of offshor r fs r und m d, th n r-shor r fs h v low cor l cov r du to d m b hum n ctiviti s, includin cor l minin nd d structiv fishin pr ctic s (Lind n & Sporron 1999). Cor l r f hotspots includ J fn P ninsul r, th Gulf of M nn r, N ombo, Hikk duw , G ll , M t r , B ss s, P ss kud h, nd Trincom l 88. Th m jorit of th r m inin cor l r fs li within LPAs or IRAs. Th m pp d r s of cor l r f sourc d from th All n Cor l Atl s r includ d in th xclusion on . 8.2 Thr t n d M rin B nthic Inv rt br t s in Sri L nk Sri L nk h s tot l of 65 thr t n d m rin inv rt br t s, comprisin i ht sp ci s of s cucumb r (Holothuroid ), 56 sp ci s of ston cor l (Scl r ctini ), nd on octocor l (H liopor c ). All of th s sp ci s r cov r d b th r s m pp d s cor l r fs, which is includ d in th xclusion on . Frin in cor l r f c n b found round th co stlin . Import nt cor l r f r s includ th Gulf of M nn r, B r R f M rin S nctu r , K nd kuli , T l wil , Chil w, N ombo, Colombo, Amb l n od to Hikk duw , Hikk duw M rin S nctu r , G ll includin Rum ss l r f, Un w tun , W li m , Polh n , M t r , T n ll , Gr t nd Littl B ss s, nd B tticolo nd Trincom l . All of th s r fs r t l st som wh t d m d b hum n ctiviti s (R j suri 1997). 87 https://cl rkl bs.or / qu cultur / 88 https://www.sl m.lk/cor ls App ndix A — Sri L nk Priorit Biodiv rsit V lu s 200 9 SUMMARY S ctions 3 to 8 provid th r tion l for th di iti d sp ti l d t includ d within th xclusion nd r striction on l rs to b t k n into ccount within th Sri L nk offshor wind ro dm p. Th s r summ ris d in T bl 8 lon with th sourc s of th r l v nt di iti d sp ti l d t . TABLE 8: SUMMARY TABLE OF DIGITIZED SPATIAL DATA TO BE INCLUDED IN EXCLUSION AND RESTRICTION ZONE. Priorit Av il bl Di iti d Zon Sourc Biodiv rsit v lu Sp ti l D t L r M rin n tion l p rks World D t b s on Prot ct d Ar s (WDPA) N tur r s rv s L r provid d b R nil N n kk r — S nctu ri s ori in l sourc unconfirm d LPAs nd IRAs R ms r sit s www.ib t- lli nc .or KBAs, includin IBAs nd www.ib t- lli nc .or Exclusion AZE sit s Zon Turtl n stin b ch s Ad pt d from R j k run t l. 2009; M rin Turtl s id ntifi d from publish d D p rtm nt of Wildlif Cons rv tion (DWC), lit r tur , plus 5km buff r Sri L nk 2014; J thil k t l. 2017 S r ss b ds https:// ll ncor l tl s.or / N tur l H bit ts Cor l r fs M n rov s https://cl rkl bs.or / https://www.cbd.int/ EBSAs LPAs nd IRAs http://www.m rin m mm lh bit t.or / R striction IMMAs imm - tl s/ Zon M rin M mm ls 25km buff r round Ad pt d from s r ss b ds l r sourc d (du on ) s r ss b ds from https:// ll ncor l tl s.or / 201 Offshor Wind Ro dm p for Sri L nk 10 REFERENCES Asi n D v lopm nt B nk (ADB) (2017) Environm nt l Imp ct Ass ssm nt (Dr ft). 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