Stakeholder Management on Scotland’s Norwegian Interconnector Project Edinburgh 16 th of May 2012 Richard Blanchfield North. Connect UK PM & Head of Technical
Contents 1. North. Connect Project Background 2. Internal Stakeholder Management • Juggling an international JV project 3. External Stakeholder Management • Juggling multiple international interests
North. Connect Owners Non Norway (50%) 25% 16. 7%
Norwegian Partners
UK Nordic • Dominated by thermal • Dominated by hydropower + • • • power (24 h production > daily price fluctuations) Increase of wind power need for flexibility / storage (flexible production -> seasonal price fluctuations) Dry years are a problem 50% of European storage Direction of Energy Exports Storage for night time production + Clean water power replaces thermal energy + At day Daily During night In dry periods Seasonal In wet periods + Additional energy will be stored Windy Calm Wind / Hydro Interoperability
Facts & Figures • • • Bi directional VSC HVDC technology 1400 MW – ½ million homes (Glasgow) Converter stations Aberdeenshire and the Western Fjords • 600 km (= Peterhead to Manchester)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 • Business Plan • UK Landing WP 1 Pre. FEED • EIA / Surveys • Consents • Subsea Survey WP 2 • Detail Design Consultn. • Procurement Financial Close Investment Decision Contract Awards Oct-21 WP 3 Planning Execution Lead Times Installation & Construction 7
Internal Stakeholder Management Juggling an international Joint Venture project
JV / Project Company Governance NCAS (BOARD) Derrick Allan SSE Odd Øygarden E-Co, CHAIR Øyvind Stakkeland Agder Energi NCKS (EXECUTIVE) Per Swenzen Vattenfall Øle Gabrielson Lyse Jo Viljam Drivdal CEO / PM Project Management Team (PMT) 9
Project Delivery Governance Project Manager Commercial Department Permitting Department Technical Department Norway UK Subsea WP 1 WP 2 WP 3 PH 1 PH 2 PH 3 10
Too Many Cooks? • Five organisations, with own systems processes & Governance structures • People at Board / PMT level from different companies, mostly part time seconded into North. Connect • Significant SSE involvement in UK & Agder Energi in Norway 11
Governance & Teamwork • Internal communications are a challenge: Owners Group PMT WP 2 • 15 people in 10 different locations • Clarity of responsibility, activities and reporting • • • E room file sharing Telcos & VC’s Targetted meetings 12
External Stakeholder Management Juggling multiple international interests
Breadth & Depth Scotland Local Regional National Norway Subsea Residents Council Roads dept. Residents Kommune Industry NVE Fisheries Mo. D Coastguard MSP’s Scottish Govt. MOPE Stattnet EU Asset owners Environml. Aberdeenshr. Energetica UK JNCC Nat. Grid Ofgem DECC Commission ACER ENTSO E 14
Communications Strategy • • • Consistent message in all three markets Create a good perception of the project Process for PR and media handling Gradual and balanced escalation of effort Promote political dialogue Communications reference group 15
Techniques Influence Diagrams Statnett as: Owner of ICs Close adviser for MOPE Adviser for NRA (NVE) Key input to construction license, RE and FTL applications Ministry of Petroleum and Energy (MOPE) • MOPE grants: Revenue Exemption (RE) Foreign Trade License (FTL) • MOPE focus on political and socio economic issues • Owner of Statnett SN’s Conflicting roles Statnett as TSO: Tie in to the domestic grid as TSO Obligation for tie in, but no time limits. . Assessment of grid implications Key input to Construction license, REA and FTLA NRA (NVE) • grants construction licence, but reports directly to MOPE • focus on technical issues • MOPE is the appeal body. . . The key issues for permitting processes are the mixed roles of Statnett and the conflict of interest of MOPE as owner and regulator 16
Techniques Stakeholder Positioning 17
Techniques Management Plan 18
In Conclusion
Conclusions • An important project for Scotland • Defining project Governance, processes and systems takes time • Internal management is equally important to external management • Its all about people and relationships
Glen Coe Hardanger Fjord “From Wind to Hydro and back” 21
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