Strategically positioned
in the booming wind market

Strategically positioned in the booming wind market

The global off-shore wind farm market is expected to almost double between now and 2025 and the Group is aiming to further strengthen its leadership in this booming industry.

The global off-shore wind turbine market is expecting to boom from $29.4 billion in 2017 to $58.8 billion in 2025 with a compound annual growth rate of 7.7%, according to recent figures published by Reports and Data, a New York based market research and consulting firm catering to varied industries. This considerable development is a result of several factors, from increases in oil prices to a shift to renewable sources of energy. In addition, the giants of the oil and gas industry can find immense potential to shift towards offshore wind energy as they already possess the necessary infrastructure and skill set, thus boosting the market for turbine. Construction of sustainable infrastructure is required for the purpose of off-shore power generation as turbines are anchored to the ocean floor. Given that the oil and gas industries are already participating in this practice, we see more and more oil giants investing in the offshore wind production. Companies like Shell and Statoil are diversifying their reach by entering this new market. Aside from these oil and gas giants, companies providing services such as platforms for offshore fossil fuel are also witnessing the growth of a new market.

From the cable and systems industry standpoint, the growth of the offshore wind market can only be welcomed, as it represents the high end of product offerings in terms of technological excellence and higher added value. As a world leader in this area, a position reinforced by the recent merger with General Cable, Prysmian actually enjoys the advantage of being a growing company in a fast growing market, where it can boast a long-standing track record of offering customers proven, cost-effective cable designs and operating systems.

THE BOOMING WIND MARKET

The market is also rapidly evolving, demonstrating that it is capable of growth even in the absence of subsidies. In 2017, three out of four winning bids in German auctions for projects to commence in 2025 were for subsidy-free power, totalling 1.38GW of new capacity. The cabling industry increasingly believes that further progress in wind offshore cost-reduction could be achieved through the upcoming move to high-voltage (HV) inter-arrays and export lines. As a trusted and dedicated partner, Prysmian continues to support the needs of this growing industry, offering medium voltage inter-array cables, high-voltage alternating current and high-voltage direct current export cables. The growth trend is in fact strictly associated with technological advancements. Even if today the submarine cable infrastructure market is still hinging on 33 kV technology, it is clear that the industry is shifting towards 66 kV, enabling twice as much power to be transported than that of a single array cable, allowing it to work with larger turbines and reduce the length of cables required.

A NUMBER OF MILESTONES. Prysmian leadership is founded upon being a strategic partner for the biggest transmission system operators involved in the development of the offshore industry, as well as the most important developers. Among the several offshore wind farm subsea connections completed, the Group realised a number of milestones in the industry: BorWin2 project (North Sea), the first 800 MW connection to offshore wind parks and the largest VSC system; SylWin1, the highest-ever rated system for VSC technology with a power rating of 864 MW operating at the highest commercially available voltage level of ±320 kV DC; and IFA2, a ±320 kV DC interconnection to connect Tourbe in France to Chilling in Hampshire, UK. One of the most recent projects secured by Prysmian is an approximately €300 million contract from French TSO Réseau de Transport d’Électricité for the 220 kV HV export lines for the first three French offshore wind farms – Fécamp, Calvados and Saint-Nazaire.

NEW ACHIEVEMENTS. Prysmian recently added several important contracts for new cable connections for offshore wind farms and turn-key projects to supply and install submarine inter-array cable systems. Among the latest achievements, a contract was secured for the development of submarine power cable links for Hornsea Project Two in the UK, the world’s biggest offshore wind farm, and the Group succeeded in commissioning the inter-array cable system for the Wikinger offshore wind farm, located within the West of the Adlergrund cluster in the German Baltic Sea. Details of both are reported in the DOING BUSINESS section of Insight.

SHOWCASING IN HAMBURG

Prysmian Group went to Hamburg to exhibit its state-of-the-art range of products and services for the offshore wind industry at the 2018 edition of the Wind Energy event. Wind Energy was a key industry event for the Group to present its developments in innovative, sustainable and cost-effective cable solutions for the offshore renewable power sector, including HVDC technologies for offshore wind farm applications, high-performance 66 kV cables system for inter-array networks, AC and DC power transmission submarine cable systems, and solutions specifically designed to meet demanding conditions and display high resistance to abrasion, UV radiation, corrosion, bending and torsion stress. The Group also presented its innovative Power Link Cable Solutions service designed to provide a comprehensive and effective asset management of submarine cable operations, from prevention to repair.

A WORLD CLASS FLEET TO BE FURTHER STRENGTHENED

Prysmian already holds a 15% market share in the offshore wind cables and systems market and aims to increase it to 30-40% in the near future, leveraging on technological developments in cable manufacturing and installation and on a world class fleet of cable laying vessels. In order to be prepared to support the offshore wind power revolution, between 2012-2016 the Group invested around €200 million to create a world-class fleet of vessels, Cable Enterprise, Giulio Verne and Ulisse, able to lay cables at all water depths. CEO Valerio Battista recently confirmed the additional investment in a new cable-laying vessel for submarine cables, which will allow Prysmian to further strengthen its leadership in terms of resources and assets.

The new cutting-edge cable laying vessel will bolster Prysmian’s turnkey approach, under which it delivers end-to-end EPCI projects, from engineering, manufacturing and installation, to full monitoring and diagnostic services. It will support long-term growth prospects in the submarine cable installation business, strengthening the Group’s interconnection and offshore wind project execution capabilities. The new vessel is intended to be the most capable cable layer in the market and to offer enhanced project versatility thanks to advanced features like deep water installation capabilities for depths of more than 2,000 metres, increased cable loading capacity, performance of complex installation operations supporting a variety of burial systems, including heavy duty ploughs; state-of-the-art positioning and seakeeping systems and a reduced environmental footprint. The cable vessel is expected to be delivered by Q2 2021.