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Policy Research Corporation Study on the economic effects of Maritime Spatial Planning Case studies April 2010 Commissioned by DG Maritime Affairs and Fisheries

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Policy Research Corporation

Study on the economic effects of

Maritime Spatial Planning

Case studies

April 2010 Commissioned by

DG Maritime Affairs and Fisheries

Nota Bene

This document is part of the “Study on the economic effects of Maritime Spatial Planning". In order

to get a complete understanding of the concepts, definitions and methodology used in this document it

is advised to read the main report first.

Study carried out on behalf of the European Commission

Directorate-General for Maritime Affairs and Fisheries

MARE.E.1 "Maritime Policy Baltic and North Sea"

European Commission

B-1049 Brussels

Tel: +32 2 29 69 135

e-mail: [email protected]

Policy Research Corporation

April 2010

Office Belgium: Office The Netherlands:

Jan Moorkensstraat 68 Parklaan 40

2600 Antwerp 3016 BC Rotterdam

tel : +32 3 286 94 94 tel: +31 10 436 03 64

fax : +32 3 286 94 96 fax: +31 10 436 14 16

e-mail : [email protected] e-mail : [email protected]

website : www.policyresearch.be website : www.policyresearch.nl

This document is part of the draft final report on the economic benefits of Maritime Spatial Planning .

It is intended for internal use only. No part of the document may be published in any form without the

prior permission of the European Commission – DG Maritime Affairs.

Table of contents

European Commission study - i -

TABLE OF CONTENTS

I. INTRODUCTION: CASE STUDIES AND RELEVANCE ........... ............................................1

II. CASE STUDY I: MARITIME SPATIAL PLANNING IN PORTUGAL ................................3

II.1. INTRODUCTION........................................................................................................................................ 3

II.2. CHARACTERISTICS OF THE PORTUGUESE MARINE AREA AND ITS ACTIVITIES........................................... 5 II.2.1. General characteristics ............................................................................................................... 5 II.2.2. Maritime activities and sea-use................................................................................................... 5

II.3. BENEFITS OF MARITIME SPATIAL PLANNING FOR THE SHALLOW PORTUGUESE WATERS....................... 12 II.3.1. Decreasing transaction costs..................................................................................................... 12 II.3.2. Better investment climate .......................................................................................................... 19

II.4. STATUS OF MARITIME SPATIAL PLANNING IN PORTUGAL ..................................................................... 21

II.5. CASE STUDY I: SUMMARY...................................................................................................................... 21

III. CASE STUDY II: MARITIME SPATIAL PLANNING AND A TRANSNATIONAL GRID .........................................................................................................23

III.1. THE ECONOMIC BENEFITS OF A TRANSNATIONAL OFFSHORE GRID ........................................................ 25

III.2. THE RELATIONSHIP BETWEEN MARITIME SPATIAL PLANNING AND THE TRANSNATIONAL

OFFSHORE GRID..................................................................................................................................... 25

III.3. THE ECONOMIC BENEFITS OF THE ACCELERATION OF THE DEVELOPMENT OF A TRANSNATIONAL

GRID DUE TO THE ZONING APPROACH.................................................................................................... 26 III.3.1. Reduction of search costs .......................................................................................................... 27 III.3.2. Acceleration............................................................................................................................... 27

III.4. CASE STUDY II: SUMMARY .................................................................................................................... 32

IV. ANNEXES.....................................................................................................................................35

IV.1. PORTUGUESE CASE STUDY..................................................................................................................... 35

V. REFERENCES.............................................................................................................................45

WEBSITES...................................................................................................................................................... 45

Study on the economic effects of Maritime Spatial Planning – case studies

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Table of contents

European Commission study - iii -

LIST OF FIGURES AND TABLES

Figure 1 : Depth of the European waters .......................................................................................3 Figure 2 : Depth of Portuguese waters and scope..........................................................................4 Figure 3 : Potential conflicts of interest.......................................................................................14 Figure 4 : Scenarios for the development of the maritime economy...........................................18 Figure 5 : Schematic representation of an offshore grid..............................................................24 Figure 6 : Proposal offshore network 2030 for the north Sea (EWEA).......................................24 Figure 7 : Schematic representation of the consequences of zones for the transnational

grid ..............................................................................................................................26 Figure 8 : Portugal’s marine areas ...............................................................................................35 Figure 9 : Alentejo oil exploration area .......................................................................................36 Figure 10 : Peniche oil exploration area ........................................................................................37 Figure 11 : Detail of the Alentejo oil exploration area and its coincidence with the 12NM

border ..........................................................................................................................38 Figure 12 : Proposed offshore wind farms and nearshore areas ....................................................38 Figure 13 : Proposed zones for wave farms...................................................................................39 Figure 14 : Some fishing ports.......................................................................................................40 Figure 15 : Marine offshore aqua farms ........................................................................................41 Figure 16 : Natura 2000 areas........................................................................................................42 Figure 17 : Main areas for marine tourism ....................................................................................42 Figure 18 : Current activities in southern Portugal........................................................................43 Figure 19 : Current activities in northern Portugal ........................................................................43 Figure 20 : Potential areas of conflict (left) and proposed concession areas for wave

energy (right)...............................................................................................................44

Table 1 : Key figures shipping 6 Table 2 : Key figures dredging 7 Table 3 : Key figures offshore oil & gas 7 Table 4 : Key figures offshore renewable energy 8 Table 5 : Key figures fisheries 10 Table 6 : Key figures marine aquaculture 11 Table 7 : Key figures nature conservation 11 Table 8 : Key figures marine tourism 12 Table 9 : Main future potential conflicts of interest 17

Study on the economic effects of Maritime Spatial Planning – case studies

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Table 10 : Contribution of MSP in transaction costs in Portugal 19 Table 11 : Value added of MSP by accelerating investments in marine aquaculture (4%) 20 Table 12 : Value added of MSP by accelerating investments in offshore wind energy

(4%,) 20 Table 13 : Emissions saved due to an acceleration of the completion of the transnational

grid 30 Table 14 : PV of avoided CO2 emissions due to an acceleration of the completion of the

offshore grid (6%, 2010) 31 Table 15 : PV of acceleration of the completion of the offshore grid (6%, 2010) 32 Table 16 : PV of acceleration of the offshore grid (6%, 2010) 32

Introduction

European Commission study - 1 -

I. INTRODUCTION: CASE STUDIES AND RELEVANCE

The report on the economic effects of Maritime Spatial Planning (hereafter MSP) has delivered

understanding of the range of benefits MSP (macro scale) can have for the European Union Member

States. Since the report provides an aggregated view it was decided to include 22 country reports to

highlight the benefits per Member State, as well as two case studies. These two case studies have the

objective to provide a detailed analysis of the economic benefits on a country-specific/case-based

level in order to improve the understanding of the analyses and calculations conducted in the study.

The two case studies that were selected have a different scope. The first case study has a national

scope and involves a wide variety of the maritime activities identified in the main report. The second

case study is concentrated around one specific activity/subject and has a transnational scope.

The first case study concerns the economic benefits of MSP in Portugal. The reasons for selecting

Portugal are fourfold:

- Portugal has a large EEZ of which a very small part is usable for most maritime activities.

Hence competition for space is likely to occur in the future;

- Portugal still has a large traditional fishing fleet (small vessels) which is dependent on these

waters. Although the relative economic impact of this industry is limited in the GDP of

Portugal (0.4%) it has a substantial socio-economic importance in coastal areas;

- Investors are currently investigating in potential activities such as aquaculture in Portuguese

waters which may prove to be beneficial due to the conditions in these waters; exploration

and mining of deep water mineral resources which may prove to trigger a change to the

current maritime economic performance; offshore wind energy etc;

- The country is in a start-up process of an integrated maritime spatial plan (as one of the pillars

of the National Ocean Strategy).

Portugal is currently in the process of setting-up and implementing MSP. A first draft of their plan

should be finished by mid 2010. This case study has been sent to various stakeholders in Portugal and

received comments were incorporated.

Study on the economic effects of Maritime Spatial Planning – case studies

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The second case study concerns the development of a transnational electricity grid between Belgium,

Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Sweden and the UK. The

development of this grid has significant benefits. Although the development of the grid is rather the

result of political ambitions, MSP provides benefits for the development of the grid as it may enhance

knowledge and information between the countries involved. Hence MSP may lead to the acceleration

of the development. As was highlighted in the main report, acceleration leads to benefits1.

1 All consulted experts are listed in Annex 2 of the main report.

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 3 -

II. CASE STUDY I: MARITIME SPATIAL PLANNING IN PORTUGAL

II.1. INTRODUCTION

Portugal has one of the largest EEZ’s in Europe, but has only a small strip of shallow water in front of

its mainland coast. Compared to the rest of Europe, this is rather unique. Figure 1 shows these

differences. The North Sea is almost entirely less than 200 meters deep. The Atlantic Ocean on the

other hand, is characterised by some small shallow areas up to 200 meters depth, but is overall a deep

sea. Since a shallow sea is more favourable for many maritime activities, competition for space is

likely to evolve in Portuguese waters since its maritime economy has been developing quickly.

Figure 1 : Depth of the European waters

Source : Policy Research Corporation based on Encyclopedia Britannica, 2009.

MSP is a useful tool to manage the process of balancing interests between the activities involved.

Application of the ten key principles will lead to the allocation of space to competing maritime

Study on the economic effects of Maritime Spatial Planning – case studies

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activities as well as by improving and accelerating (administrative) processes and/or procedures. In

this respect, MSP may create economic benefits, which are quantified in this case study.

A more detailed map of the sea depth in front of the Portuguese coast is depicted in Figure 2. The

blue line indicates the scope of this case study, i.e. the territorial sea or the 12 Nautical Miles (NM)

area, which largely coincides with the shallow sea area. This chapter will therefore exclusively deal

with maritime activities taking place in the mainland territorial sea.

Figure 2 : Depth of Portuguese waters and scope

Source : Policy Research Corporation based on Wikimedia Commons

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 5 -

II.2. CHARACTERISTICS OF THE PORTUGUESE MARINE AREA AND ITS ACTIVITIES

II.2.1. GENERAL CHARACTERISTICS

Portugal has a coastline of approximately 1 187 km2. Its marine areas are situated in the North-East

Atlantic and comprise the coastal and territorial waters as well as an Exclusive Economic Zone

(EEZ). For more information, see Figure 8 in annex IV.1 .the Portuguese territorial waters extend 12

nautical miles into the ocean and comprise an area of 64 145 km². Its EEZ is one of the largest in

Europe and has a size of approximately 1 700 000 km². This is due to the autonomous regions, i.e.

Azores and Madeira3.

An important characteristic is the depth of the Portuguese waters. There is a relatively small strip of

shallow water near the Portuguese mainland (0-200, 200-1 000 m), followed by a steep slope and

passing into deep water (> 1 000m). Since many maritime activities4 require shallow waters, the

shallow strip which largely coincides with the Portuguese territorial sea is already intensively used.

Activities such as fisheries, marine aquaculture, offshore oil exploration and extraction, nature

conservation, marine tourism and dredging are all performed in this small area and plans exist to

extend most of these activities.

II.2.2. MARITIME ACTIVITIES AND SEA -USE

This paragraph deals with the characteristics of the maritime activities taking place in the Portuguese

marine areas and more specifically in the territorial seas. Locations of activities are to be found in the

Annexes at the end of this chapter.

II.2.2.1. Shipping

Over 67% of imports reach Portugal over sea, which indicates the importance of shipping for

Portugal5. The key figures of the Portuguese shipping industry are shown in Table 1. There are

approximately 300 ships per day in Portugal’s waters6. The Portuguese controlled fleet consists of 39

ships larger than 1 000 GT7, 128 ships sail under Portuguese flag. The most important container and

cargo ports are Lisbon, Leixoes and Sines8. Furthermore, it should be mentioned that there is at

present available capacity as well as development capacity in Portuguese ports, hence creating a

2 European Commission (2008), The economics of climate change adaptation in EU coastal areas 3 Ministry of National Defense (2007), National Ocean Strategy 4 Fisheries, offshore wind energy, marine aquaculture, marine tourism, dredging, etc 5 Expert interviews 6 Expert interviews 7 Institute of Shipping and Logistics (2009), Shipping Statistics Yearbook 2008 8 Eurostat: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database

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framework for growth of shipping. Next to cargo, about 735 000 ferry passengers arrive or embark in

Portugal9. Overall, the shipping industry has a value added of € 183 million10.

Table 1 : Key figures shipping

762 137Number of passengers (’08)Ferry ports

Sines: 24 668 771

Leixoes: 14 698 117

Lisbon: 11 789 432

Metric tonnes (’08)Cargo ports

Container ports

Shipping register (> 1 000 GT)

Shipping movement

Lisbon: 557 608 TEU

Leixoes: 457 506 TEU

Sines: 233 111 TEU

Container throughput (’08)

Controlled fleet: 39 ships

National flag: 128 ships

Number of vessels (’08)

300 ships per day in Portuguesewaters

Number of vessels (’09)

SHIPPING

762 137Number of passengers (’08)Ferry ports

Sines: 24 668 771

Leixoes: 14 698 117

Lisbon: 11 789 432

Metric tonnes (’08)Cargo ports

Container ports

Shipping register (> 1 000 GT)

Shipping movement

Lisbon: 557 608 TEU

Leixoes: 457 506 TEU

Sines: 233 111 TEU

Container throughput (’08)

Controlled fleet: 39 ships

National flag: 128 ships

Number of vessels (’08)

300 ships per day in Portuguesewaters

Number of vessels (’09)

SHIPPING

Source : Policy Research Corporation based on multiple sources (footnotes 4-9)

Since the greater part of shipping is transit and takes place outside the territorial waters11, this activity

is less important for the purpose of this case study. However, it should be mentioned that the passage

towards the most important ports are potential areas of conflict for maritime activities claiming a

permanent space in the territorial sea.

II.2.2.2. Dredging

The key economic figures for dredging in Portugal are displayed in Table 2. In 2008, dredging

revenues amounted to € 14.25 million, resulting in a value added of € 5.8 million for the Portuguese

economy12. For 2010 the value added of dredging is estimated to be € 6.4 million. These figures are

derived from the total turnover of dredging in Europe, based on the following parameters: the number

and size of national ports, the number of river deltas, the flooding chance for each country and the

size of the marine aggregates industry. Compared to Europe, the Portuguese dredging industry

represents 1.12% of total European dredging revenues and value.

9 Eurostat: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database 10 Policy Research Corporation based on Eurostat: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_

database 11 Expert interviews 12 Policy Research Corporation based on the International Association of Dredging Companies (2008)

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 7 -

Table 2 : Key figures dredging

€ 14 million€ million (’08)Revenues

€ million (’08 & ‘10)€ 5.8 million

€ 6.4 millionAdded value

DREDGING

€ 14 million€ million (’08)Revenues

€ million (’08 & ‘10)€ 5.8 million

€ 6.4 millionAdded value

DREDGING

Source : Policy Research Corporation based on the International Association of Dredging Companies

II.2.2.3. Offshore oil & gas

Portugal does not exploit any gas or oil reserves, as indicated in Table 3. There are no prospective gas

sites in Portuguese waters. However, there are some oil exploration activities taking place in two areas

in front of the coast of Portugal. The first area is the Alentejo basin and is depicted in Figure 9 in

Annex IV.1. The Alentejo basin covers an area of about 9 000 km² and comprises three exploration

licenses13. These licenses were granted in 2007 for an initial term of eight years and are renewable for

another 30 years in case of production14. The second area is the Peniche basin, which consists of four

licensed areas15, as shown in Figure 10 in the Annexes. Both exploration areas are considered as “very

high potential” areas16.

Table 3 : Key figures offshore oil & gas

No production licenses.Number of licenses (’10)Production licenses

Number of licenses (’10)Gas: no exploration licenses.

Oil: 7 exploration licensesExploration licenses

OFFSHORE OIL & GAS

No production licenses.Number of licenses (’10)Production licenses

Number of licenses (’10)Gas: no exploration licenses.

Oil: 7 exploration licensesExploration licenses

OFFSHORE OIL & GAS

Source : Policy Research Corporation based on multiple sources (footnotes 13-14)

The four licensing blocks in the Peniche area are located at a depth in a range of 200 – 3 000 m (left

of the blue line in Figure 10) and fall outside the 12 NM zone as illustrated and defined in Figure 2.

With respect to the Alentejo area, there is only a small part of the exploration area that coincides with

the territorial sea, as can be seen from Figure 11 in the Annexes. This implies that oil exploration

activities in the Portuguese territorial sea are minimal and fall outside the scope of this chapter.

13 Lavagante, Santola and Gamba. 14 http://tullowoil.com/tlw/operations/eu/portugal/ and www.energy-pedia.com/article.aspx?articleid=138799 15 Camarão, Amêlijoa, Mexilhão and Ostra. Source: Petrobras (2007), Exploring frontiers around the world: from

Brazilian deepwater to Gulf of Mexico 16 According to Jose Fernando de Freitas of Petrobras Portugal. Petrobras owns a significant part of the exploration licenses

for the Alentejo and Peniche area. (www.energy-pedia.com/article.aspx?articleid=138799)

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II.2.2.4. Offshore renewable energy

The key figures for offshore renewable energy in Portugal are displayed in Table 4. Currently, there

are no offshore wind farms operating in Portuguese waters as the process of developing offshore wind

farms has just started. Moreover, since the areas suitable for wind turbines with fixed foundations are

scarce, i.e. areas with a maximum depth of 30 – 40 meters, the development of offshore wind farms is

highly dependent on the development of floating turbines. Currently, this technology is in an early

stage. The European Wind Energy Association estimates no offshore wind farms to be operational by

202017. However, there are plans for the construction of two wind farms. The first wind farm, Branca,

will consist of 86 floating turbines of 3.5 MW (301 MW). The Branca wind farm will be located 17

km from the shore at a depth of 56 – 79 m18. The second wind farm, WindFloat, will consist of one

floating turbine with a capacity of 5 MW at a depth of over 50 meters19. Moreover, the Portuguese

Transmission System Operator or TSO is prepared to have 550 MW of near shore wind power by

2019 (up to 35 meters deep). More specifically, the TSO is prepared to have 330 MW north of

Peniche, 137.5 MW near Viana do Castelo and 82.5 MW south of Lisbon20. No specific plans for such

near shore wind farms are currently submitted. Both the planned offshore wind farms and the

potential near shore areas are depicted in Figure 12 in Annex IV.1. These five areas account for a total

capacity of 856 MW.

Table 4 : Key figures offshore renewable energy

Operational: 2.25 MW

Planned: upgrade to 20 MWCapacity (MW)Wave energy

Capacity (MW)

No offshore wind farms in operation

> 50 m depth: 306 MW planned

< 50 m depth: 550 MW possible by 2019

Offshore wind energy

OFFSHORE RENEWABLE ENERGY

Operational: 2.25 MW

Planned: upgrade to 20 MWCapacity (MW)Wave energy

Capacity (MW)

No offshore wind farms in operation

> 50 m depth: 306 MW planned

< 50 m depth: 550 MW possible by 2019

Offshore wind energy

OFFSHORE RENEWABLE ENERGY

Source : Policy Research Corporation based on multiple sources (footnotes 17-25)

With respect to wave energy, Portugal has a resource of 15 GW available due to its geographical and

geological position. With an average flux of 40 kW/m, Portugal is a region with medium-high wave

resource21. Wave devices are ideally installed in water depths in a range of 50 – 80 m, implying a total

length of usable coast of about 250 km. Proposed concession zones for wave farms are displayed in

Figure 13 in the Annex IV.122. These zones cover an area of approximately 335 km², of which a

17 European Wind Energy Association (2009), Pure Power – Wind energy targets for 2020 and 2030 18 www.4coffshore.com/windfarms/windfarms.aspx?windfarmId=PT02 19 www.4coffshore.com/windfarms/windfarms.aspx?windfarmId=PT01 20 Trancoso, Riflet, Domingos (2009), Forecasting offshore wind power in Portugal 21 Wave energy can be exploited in an economically viable way, when wave resource exceeds 15-20kW/m (Wave Energy

Centre (2008), Potential and Strategy for the Development of Wave Energy in Portugal). 22 1st phase, 2nd phase and 2nd priority areas refer to the extent of potential conflict with other maritime activities. This is

considered in Paragraph II.3.

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 9 -

minimum of 20% is reserved for local navigation passages23. Currently, there are three Pelamis24

devices of 750 kW (2.25 MW) operational in front of the coast of Aguçadoura. The farm is located in

one of the proposed concessions areas depicted in Figure 13 in Annex IV.1. This wave farm is the

world’s first multi-unit wave farm as well as the first wave energy converter of a commercial order.

Moreover, there are plans to expand this project into a farm of 20 MW25.

II.2.2.5. Fisheries

The key figures of the Portuguese fisheries sector are displayed in Table 5. The Portuguese fishing

fleet comprises about 8 585 vessels with a total of 106 516 GT. This fleet can be divided into the local

fleet, the coastal fleet and the long-distance fleet. The local fleet consists of a large number of small

vessels with a length until 9 m, accounting for 82% of total vessels. However, these local vessels only

account for 7.2% of total gross tonnage26 and catch a variety of species27. Local vessels with an open

deck are restricted to an area of 6 miles from the coast, whereas those with a closed deck can fish up

to 30 miles from the coast28. The coastal fleet consists of polyvalent, purse seine and trawl29 fishing

vessels and operates in areas further from the coast, as well as outside the national EEZ. The long-

distance fishing vessels fish mainly in Moroccan waters30. There are about 27 000 people employed in

the fisheries sector, comprising 16 000 fishermen31. Total catches in 2006 amounted to 229 094 tonnes

of live weight, whereas total landings comprised 165 525 tonnes of product weight with a value of €

213 million32. The direct value added of the fisheries sector in 2010 is estimated at approximately €

365 million33.

In terms of contribution to the national GDP, the fisheries sector only contributes 0.4%. However,

many coastal communities depend almost exclusively on fisheries, rendering it important on a socio-

economic level34.

23 Wave Energy Centre (2004), Potential and Strategy for the Development of Wave Energy in Portugal 24 Pelamis Wave power is a manufacturer of wave energy devices. The company is based in the UK, Scotland.

(http://www.pelamiswave.com/index.php) 25 http://www.pelamiswave.com/content.php?id=149 26 Eurostat: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database 27 Expert interviews 28 Decree No 43/87, July 17 29 A purse sein is a large net towed, usually by two boats, that encloses a school of fish and is then closed at the bottom by

means of a line (Collins English Dictionary). Trawls are nets pulled behind a boat at large depth. 30 Food and Agriculture Organization: www.fao.org/fishery/countrysector/FI-CP_PT/en 31 Expert interviews 32 Eurostat: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database 33 Policy Research Corporation based on Eurostat 34 OECD: http://www.oecd.org/dataoecd/10/8/34431028.pdf

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Table 5 : Key figures fisheries

+/- 16 000 fishermen

+/- 27 000 employees(’09)Employment

€ 241 million€ (’07)Value of landings

Tonnes of product weight (’07)

Tonnes of live weight (’08)

Number of vessels & GT (’08)

181 403 tonnesLandings

240 050 tonnesCatches

8 585 vessels, 106 516 GT

0 – 9m: 84% of vessels

9 – 33 m: 16% of vessels

> 33m: 0.7% of vessels

Register of fishing boats

FISHERIES

+/- 16 000 fishermen

+/- 27 000 employees(’09)Employment

€ 241 million€ (’07)Value of landings

Tonnes of product weight (’07)

Tonnes of live weight (’08)

Number of vessels & GT (’08)

181 403 tonnesLandings

240 050 tonnesCatches

8 585 vessels, 106 516 GT

0 – 9m: 84% of vessels

9 – 33 m: 16% of vessels

> 33m: 0.7% of vessels

Register of fishing boats

FISHERIES

Source : Policy Research Corporation based on multiple sources (footnotes 26-32)

The ports with the largest weight of landed fish in 2007 are Olhão, Sesimbra, Matosinhos and Aveiro

(> 5 000 tonnes). The ports with the largest value of landed fish in 2007 are Sesimbra, Peniche and

Olhão (> € 15 million)35. Besides these ports, coastal towns such as Vila do Conde are fisheries-

dependent as well36. An issue of socio-economic importance for the fishing industry is the changing

climate, causing fish stocks to move slightly north37.

Based on the above, the focus is on the local fisheries sector, considering the 6 NM restriction and the

high socio-economic importance to coastal communities. Potential conflicts of interest with other

maritime activities will be discussed in Paragraph II.3.1.2.

II.2.2.6. Marine aquaculture

The key figures for the Portuguese marine aquaculture industry are displayed in Table 6. Currently,

there are 24 operational offshore aqua farms in the Portuguese territorial waters of which 6 in the

mainland territorial waters. These six aqua farms are shown in Figure 15 in Annex IV.1. Moreover,

the government has assigned one large area near Olhão, which consists of 60 plots or concessions.

Currently, 56 of these plots are licensed, representing 18 individual aqua farms38. The direct value

added of the total sector (marine and inland) in 2010 is estimated at approximately € 23 million39.

35 National Institute of Statistics and Directorate General of Fisheries and Aquiculture (2008); Fisheries Statistics 2007 36 Moniz, Kovács, Vicente & Ramos (2000), Fisheries Development and Fisheries Dependent Communities in Portugal:

Socio-Economic Change and Strategic Planning 37 Expert interviews 38 Expert interviews 39 Policy research corporation based on OECD

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 11 -

Table 6 : Key figures marine aquaculture

1 070 tonnes

€ 4.07 millionTonnes (’07)Value € (’07)

Production

Number of areas and farms (’09)

24 offshore aqua farms

1 designated area with 60 plotsLocations

MARINE AQUACULTURE

1 070 tonnes

€ 4.07 millionTonnes (’07)Value € (’07)

Production

Number of areas and farms (’09)

24 offshore aqua farms

1 designated area with 60 plotsLocations

MARINE AQUACULTURE

Source : Policy Research Corporation based on multiple sources (footnotes 38-40)

II.2.2.7. Nature conservation

The key figures with respect to nature conservation in Portugal are displayed in Table 7. Currently,

1 763 km² of marine space is recognised as Natura 2000 area40, whereas 5 698 km² of marine space is

recognised as an OSPAR Marine Protected Area (MPA)41. Moreover, regarding the protection of the

fisheries resources, there are two designated zones in which fisheries are temporary restricted or

certain types of fishing gears are not allowed42.

Table 7 : Key figures nature conservation

5 698 km²

(8 MPAs)Marine area (’07)OSPAR MPAs

Marine area (’09) 1 763 km²Natura 2000

NATURE CONSERVATION

5 698 km²

(8 MPAs)Marine area (’07)OSPAR MPAs

Marine area (’09) 1 763 km²Natura 2000

NATURE CONSERVATION

Source : Policy Research Corporation based on multiple sources (footnotes 42-44)

All Portuguese Natura 2000 areas are shown in Figure 16 in the Annexes. Since all areas are located

in the territorial sea, they will create some potential conflicts of interest with other maritime activities,

which will be covered in Paragraph II.3.1.2. Recently, the Rainbow hydrothermal vent field was

indicated as the first Marine Protected Area located in the extended continental shelf.

II.2.2.8. Marine tourism

The key figures with respect to Portuguese marine tourism are shown in Table 8. The port of Lisbon is

a significant cruise port in Europe, accounting for 408 000 passengers43 in 2008. For the whole of

Portugal, there were 37 000 passengers embarking and 786 000 passengers arriving in 200844. All

40 European Commission – DG Environment: http://ec.europa.eu/environment/nature/natura2000/db_gis/pdf/area_calc.pdf 41 OSPAR Commission (2007), 2006 Report on the Status of the OSPAR Network of Marine Protected Areas 42 Expert interviews 43 European Commission (2009), Study on Tourist Facilities in Ports 44 European Cruise Council (2009), Contribution of Cruise Tourism to the economies of Europe

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together they spent € 49.4 million45. This leads to a value added of € 19.5 million for 2008. Other

forms of marine tourism (i.e. diving, whale watching, etc.) create approximately € 200 million of

revenues and a value added of approximately € 96 million in 201046. This is particularly important in

the Algarve, where many coastal communities are highly dependent on marine tourism47. These areas

are depicted in Figure 17 in the Annexes.

Table 8 : Key figures marine tourism

€ 96 million€ (’10)Added value other forms of

marine tourism

€ 49.4 million€ (’08)Cruise expenditures

Embarking: 37 000 passengers

Arriving: 786 000 passengersNumber of passengers (’08)Cruise passengers

€ 19.5 million€ (’08)Added value cruise tourism

€ (‘10)

Number of passengers (’08)

€ 200 millionRevenues other forms of

marine tourism

Lisbon: 408 000 passengersCruise ports

MARINE TOURISM

€ 96 million€ (’10)Added value other forms of

marine tourism

€ 49.4 million€ (’08)Cruise expenditures

Embarking: 37 000 passengers

Arriving: 786 000 passengersNumber of passengers (’08)Cruise passengers

€ 19.5 million€ (’08)Added value cruise tourism

€ (‘10)

Number of passengers (’08)

€ 200 millionRevenues other forms of

marine tourism

Lisbon: 408 000 passengersCruise ports

MARINE TOURISM

Source : Policy Research Corporation based on multiple sources (footnote 45-49)

Other activities such as exploration and mining of deep water minerals will be probably developed in

the future.

II.3. BENEFITS OF MARITIME SPATIAL PLANNING FOR THE SHALLOW PORTUGUESE

WATERS

II.3.1. DECREASING TRANSACTION COSTS

Applying the key principles of MSP (see main report, Chapter II) will create clarity and certainty,

which is likely to reduce the costs for companies to start or conduct an activity. The following

paragraphs deal with the lowering of search, legal & administration costs, as well as reducing

conflicts of interest. Only the latter are quantified.

II.3.1.1. Lower search, legal & administration costs

For Portugal, search costs are likely to be lowered for offshore wind and wave energy, as well as for

aquaculture, since these maritime activities require significant exploratory time and investigation to

45 European Commission (2009), Study on Tourist Facilities in Ports 46 Policy Research Corporation on Eurostat (cfr. main report for detailed explanation)

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 13 -

identify the optimal location. Hence, legal costs will be lowered since contracts and negotiations can

be reduced or even avoided.

Concerning administrative costs several benefits may apply. Currently, it takes one to two years to

receive an offshore aquaculture permit in Portugal, involving eight legal entities. The installation of a

one-stop-shop for aquaculture is therefore likely to create significant economic benefits. Furthermore,

a one-stop-shop for all maritime activities that need a permit, license or certification might create

some economic benefits. Portugal is currently working on the simplification of the licensing process

and the installation of a one-stop-shop.

II.3.1.2. Reducing conflicts between maritime activities

In Portugal there appears to be opposition from the fisheries sector and the local population to the

installation of offshore wind and wave farms. This is caused by the fact that suitable locations are to

be found in close proximity to the shore. A clear Maritime Spatial Plan is likely to reduce legal costs

for these maritime activities, since the government has already decided in advance where these

activities can be legally located.

Figure 3 shows the location restraints for all maritime activities in the territorial sea (12 NM zone),

with the exception of dredging and shipping48.

47 Expert interviews 48 The locations for dredging are not known. Shipping in the territorial sea is concentrated around the Lisboa-Setubal-Sines

and Leixoes-Aveiro ports navigation access zones.

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Figure 3 : Potential conflicts of interest

Source : Policy Research Corporation based on Google Earth

Based on this map, the following potential conflicts of interest might be identified:

− between nature conservation and fisheries;

− between nature conservation and aquaculture;

− between nature conservation, fisheries, aquaculture and marine tourism in the South;

− between the Agouçadora wave farm in the North and fisheries.

There is evidence of some local conflicts of interest between fisheries and nature conservation, as well

as between marine aquaculture and nature conservation49. The focus will be on the actual conflicts of

interest cited by experts, while the potential conflicts of interest identified based on Figure 3, are to be

kept in mind.

Figure 18 in the Annexes displays the potential conflicts of interest in southern Portugal. The Natura

2000 sites in this region cover a significant area along the shores. Since Lagos, Sines, Olhão and

Tavira are important fishing ports and the southern region is an important fishing area in general, the

fishery sector cites a conflict of interest with these marine protected areas. The marine aqua farm near

49 Expert interviews

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 15 -

Sines is also likely to create a conflict of interest with the fisheries sector and the Natura 2000 site.

Moreover, Figure 18 shows that the Algarve area is an important area for marine aquaculture and

marine tourism, which might potentially conflict with fisheries and nature conservation. Although

experts do not cite actual conflicts with respect to marine tourism, it is important to take this sector

into account, due to its socio-economic importance.

Figure 19 in the Annexes shows the current maritime activities taking place in northern Portugal. A

potential conflict of interest can be identified around Aveiro, where fisheries and nature conservation

coincide. However, since this is a “Birds Directive” site, the potential conflict is likely to be

negligible50. As already stated above, the Agouçadora wave farm is likely to conflict with fisheries

near Póvoa de Varzim. However, no actual conflicts are cited by experts.

It has to be mentioned that dredging is likely to create potential conflicts of interest with other

activities and mainly with fisheries. Since the exact dredging locations are not known, this is based on

scenarios (cfr. main document).

a/ Future potential conflicts of interest

Current potential conflicts of interest are likely to continue and grow in the future51. More specifically,

the Natura 2000 Network will be extended in Portugal as well as all over Europe and is likely to

create more potential conflicts of interest with the fisheries sector, marine aquaculture and marine

tourism.

Moreover, emerging activities that are currently negligible in terms of size are likely to create new

potential conflicts of interest in the future. Offshore energy is such an emerging sector, including

offshore wind energy, wave energy and oil exploration and production.

Offshore wind energy is likely to create potential conflicts of interest in the future. However, since

there are plans for only two wind farms, future locations for wind farms are not yet known. This

makes it difficult to predict specific, local potential conflicts of interest. Experts52 state that the most

probable future conflicts of interest are likely to arise with the fisheries sector and nature

conservation. Other potential conflicts might arise with marine tourism and shipping. The latter refers

to problems with passages to ports.

In 2004, the Wave Energy Centre investigated the potential for wave energy in Portugal and proposed

a strategy for the development of wave energy53. More recent studies by the Wave Energy Centre have

50 Birds Directive Sites rarely prohibit the occurrence of maritime activities involved in this case study. 51 Expert interviews 52 Expert interviews 53 Wave Energy Centre (2004), Potential and Strategy for the Development of Wave Energy in Portugal

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been performed but these are confidential54. This implies that the development of wave energy can be

seen as an emerging activity that might reach a significant size in the future. The proposed wave

energy strategy of the Wave Energy Centre entails an overview of potential locations for wave farms,

as well as potential conflict zones with other maritime activities. Both are compared in Figure 20 in

Annex IV.1. The phase 1 proposed concession areas (blue zones in the right-hand figure) present no

potential conflicts of interest with other maritime activities. However, the second phase zone (pink

zone in the right-hand figure) might create a potential conflict of interest with trawl fisheries in that

same area. The second priority zone (orange zone in the right-hand figure) might create conflicts of

interest with craft fisheries, i.e. traditional local fisheries55. Since the Natura 2000 Network will

expand in the future, it is likely that potential conflicts of interest will also arise between wave farms

and Natura 2000 sites.

A final emerging form of offshore energy is the offshore oil industry. However, since the current

exploration blocks are mainly located outside the territorial sea, potential conflicts of interest with

respect to offshore oil exploration and production fall outside the scope of this chapter. Since

dredging is expected to grow in the future, this activity is likely to create a potential conflict of

interest with fisheries and offshore wind energy (cfr. supra). Table 9 shows an overview of the main

potential conflicts of interest in the future (i.e. up to 2030) as identified above.

54 http://www.wavec.org/index.php/40/reports/ 55 Wave Energy Centre (2004), Potential and Strategy for the Development of Wave Energy in Portugal

Case study I: Maritime Spatial Planning in Portugal

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Table 9 : Main future potential conflicts of interest

Fisheries

Nature conservation

Marine tourism (incl. cruise)

Wave energy

Offshore wind energy

Wave energy

Fisheries

Aquaculture

Nature conservation

Marine tourism (incl. cruise)

Shipping

Dredging

Fisheries

Nature conservation

Marine tourism (incl. cruise)

Offshore wind energy

Offshore wind energy

Wave energy

Fisheries

Aquaculture

Marine tourism (incl. cruise)

Nature conservation

Dredging

Offshore wind energy

Wave energy

Aquaculture

Nature conservation

Marine tourism (incl. cruise)

Fisheries

Future potential conflicts of interest

Fisheries

Nature conservation

Marine tourism (incl. cruise)

Wave energy

Offshore wind energy

Wave energy

Fisheries

Aquaculture

Nature conservation

Marine tourism (incl. cruise)

Shipping

Dredging

Fisheries

Nature conservation

Marine tourism (incl. cruise)

Offshore wind energy

Offshore wind energy

Wave energy

Fisheries

Aquaculture

Marine tourism (incl. cruise)

Nature conservation

Dredging

Offshore wind energy

Wave energy

Aquaculture

Nature conservation

Marine tourism (incl. cruise)

Fisheries

Future potential conflicts of interest

Source : Policy Research Corporation

b/ Cost reduction in transaction costs

Making a reliable estimation of the impact MSP has on transaction costs is impossible due to the high

variability caused by a number of factors. Therefore four scenarios have been drawn in which

potential future situations can benefit from MSP, as shown in Figure 4.

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Figure 4 : Scenarios for the development of the maritime economy

SCENARIO 1No conflicts due to industry adaptation

SCENARIO 1No conflicts due to industry adaptation

In this scenario maritime industries can co-exist due to industry adaptation. The value of MSP with regard to conflicts is nil, hence it has limited the impact on transaction costs.

In this scenario maritime industries can co-exist due to industry adaptation. The value of MSP with regard to conflicts is nil, hence it has limited the impact on transaction costs.

SCENARIO 2:Limited and incidental conflicts

SCENARIO 2:Limited and incidental conflicts

In this scenario limited and incidental conflicts are concentrated around the renewable energy industry and aqua culture industry. The value of MSP is limited to ad hoc conflicts with these industries. Transaction costs are therefore slightly higher than in the first scenario.

In this scenario limited and incidental conflicts are concentrated around the renewable energy industry and aqua culture industry. The value of MSP is limited to ad hoc conflicts with these industries. Transaction costs are therefore slightly higher than in the first scenario.

SCENARIO 3:Frequent conflictsSCENARIO 3:

Frequent conflicts

In this scenario frequent conflicts apply between the maritime industries: shipping, oil & gas, renewable energy, aquaculture. Transaction costs are high, but are mainly allocated to the new industries.

In this scenario frequent conflicts apply between the maritime industries: shipping, oil & gas, renewable energy, aquaculture. Transaction costs are high, but are mainly allocated to the new industries.

SCENARIO 4:Strong conflictsSCENARIO 4:Strong conflicts

In this scenario strong conflicts exist between all maritime activities. Hence economic growth is limited due to competition for maritime space in a number of European regions and high transaction costs for all maritime activities.

In this scenario strong conflicts exist between all maritime activities. Hence economic growth is limited due to competition for maritime space in a number of European regions and high transaction costs for all maritime activities.

Source : Policy Research Corporation

The scenarios provide the baseline needed to calculate the effects of MSP since they reflect a potential

future situation without MSP being developed in Europe. The baseline used for these scenarios is the

situation in which there is a lack of certainty & predictability and lack of integrated coordination

systems. In the first scenario, this leads to little difficulties with regard to conflicts; industries will

adapt and can subsequently co-exist with no cost of conflict as a result. The value of MSP will be to

enhance administrative procedures so economic activities can be developed faster. In the fourth

scenario substantial conflicts between all maritime activities exist. The value of MSP will be to

organise marine space in such a way that all industries can co-exist, transaction costs (specifically cost

of conflict) are reduced and acceleration of economic activity can take place.

Table 10 gives on overview of the possible contribution of MSP in transaction costs in Portugal.

These numbers are calculated based on the scenarios presented in Figure 4. In scenario 1, MSP will

not create any value added by reducing transaction costs, as maritime activities will be able to co-

exist. In scenario 2, limited conflicts will occur between three industries, namely aquaculture, offshore

wind energy and wave and tidal energy. MSP will be able to reduce transaction cost within these

industries. If the transactions costs that can be reduced due to the implementation of MSP would be

equal to 1% of the value added of these industries, than MSP will reduce the transaction costs with €

0.3 million in 2020 and € 7 million in 2030. In scenario three conflicts will occur more frequently but

remain concentrated between five industries namely shipping, including cruise tourism, oil and gas

exploration and production, offshore wind energy, wave and tidal energy and aquaculture. If it is

assumed that the transaction costs that could be reduced due to MSP within these industries would be

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 19 -

equal to 1% of the total value added of these industries, than MSP could reduce transaction costs by €

3 million in 2020 and € 10 million in 2030. In the fourth scenario, the changes of conflict are the

highest and can occur between all different maritime activities. If MSP could reduce the transaction

costs, caused by these conflicts, by 1% of the value added of all these maritime activities, than MSP

could reduce the transaction costs by € 7 million in 2020 and by € 14 million in 2030.

Table 10 : Contribution of MSP in transaction costs in Portugal

141072030

3

Scenario 3

2020

€ million – ∆ 1% transaction costs

7

Scenario 4

0.3

Scenario 2

0

Scenario 1

141072030

3

Scenario 3

2020

€ million – ∆ 1% transaction costs

7

Scenario 4

0.3

Scenario 2

0

Scenario 1

Source : Policy Research Corporation

II.3.2. BETTER INVESTMENT CLIMATE

II.3.2.1. Acceleration of investments

One of the potential benefits of Maritime Spatial Planning is that it might accelerate investments in

some emerging maritime activities. This acceleration will mainly be achieved for marine aquaculture

and offshore wind energy. Since wave farms are still in a very early stage of development and

sufficient data about its development are not available, a possible acceleration for wave farms is not

taken into account.

Table 11 and Table 12 display the benefits caused by MSP by accelerating investments in offshore

aqua farms and offshore wind farms. This is done for three possible acceleration scenarios, i.e. MSP is

likely to accelerate investments by one, two or three years. Since MSP brings these benefits forward,

they can be invested at an interest rate of 4%56. These investment revenues are displayed in Table 11

and Table 12. For the calculations, the value added of offshore wind farms and aquaculture was

estimated for 2020 and 2030. For aquaculture this was estimated to be € 30.7 million in 2020 and €

42.5 million in 2030; for wind farms the value added was estimated to be € 0.2 million in 2020 and €

663.3 million in 2030. It was assumed that the aquaculture would grow with 3% every year and the

growth of the wind farm industry was based on figures of EWEA.

56 Throughout the report, an investment rate of 6% has been used. This means that € 100 in year 1 will be equal to € 106 in

year 2. However, due to the fact that the added value of the different maritime activities in 2020 and 2030 are displayed in constant prices of 2010, this investment rate has been corrected for an inflation rate of 1.9%.

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If MSP would accelerate the aquaculture industry with 1 year, this would mean that the value added

that was generated in 2021 could already be generated in 2020, i.e. instead of an value added of € 30.7

million in 2020 an added value of € 31.6 million (i.e. value added of 2021) can be generated. The

extra value added that can be generated is € 0.9 million. This can be invested at an interest rate of 4%,

which means that € 0.04 million interest can be gained. This extra interest gain is directly attributable

to MSP. The same calculations can be made for the other figures57.

Table 11 : Value added of MSP by accelerating investments in marine aquaculture (4%)

€ 0.05 million

€ 0.2 million

€ 0.5 million

1 year

2 years

3 years

2030

€ 0.04 million

€ 0.15 million

€ 0.4 million

1 year

2 years

3 years

2020

ACCELERATION OF INVESTMENTS IN AQUACULTURE

€ 0.05 million

€ 0.2 million

€ 0.5 million

1 year

2 years

3 years

2030

€ 0.04 million

€ 0.15 million

€ 0.4 million

1 year

2 years

3 years

2020

ACCELERATION OF INVESTMENTS IN AQUACULTURE

Source : Policy Research Corporation

Table 12 : Value added of MSP by accelerating investments in offshore wind energy (4%,)

€ 0.3 million

€ 1.2 million

€ 3 million

1 year

2 years

3 years

2030

€ 0.01 million

€ 0.1 million

€ 0.3 million

1 year

2 years

3 years

2020

ACCELERATION OF INVESTMENTS IN OFFSHORE WIND FARMS

€ 0.3 million

€ 1.2 million

€ 3 million

1 year

2 years

3 years

2030

€ 0.01 million

€ 0.1 million

€ 0.3 million

1 year

2 years

3 years

2020

ACCELERATION OF INVESTMENTS IN OFFSHORE WIND FARMS

Source : Policy Research Corporation

II.3.2.2. More investments

It is likely that the completion of the maritime spatial plan will bring about new investments in marine

aquaculture, which could lead to an increased value added for the Portuguese marine aquaculture

industry. Currently, the six operational offshore aqua farms in the mainland territorial sea create a

production value of about € 4 million. If new farms are assumed to be of a comparable size and

57 The value added of aquaculture is estimated to be € 30.7 million (2020); € 31.6 million (2021); € 32.6 million (2022); €

33.6 million (2023); € 42.5 million (2030); € 43.8 million (2031); € 45.1 million (2032); € 46.5 million (2033). The value added of wind farms is estimated to be € 0.2 million (2020); € 0.5 million (2021); € 1.2 million (2022); € 2.6 million (2023); € 663.3 million (2030); € 670.6 million (2031); € 677.9 million (2032); € 685.4 million (2033)

Case study I: Maritime Spatial Planning in Portugal

European Commission study - 21 -

nature, it is estimated that MSP can contribute to the creation of new activity with a production of

about € 0.67 million per aqua farm.

With respect to offshore wind farms, it is optimal (from an economic perspective) to build these farms

as close as possible to the shore. As already stated above, the development of offshore wind farms in

shallow waters (i.e. fixed foundations) is currently opposed to by fishermen and the local population.

MSP can contribute in creating more investments in offshore wind energy by reducing or eliminating

the conflict of interest between fisheries and offshore wind farms, if both industries point out which

marine areas are crucial for their activity. However, this should be assessed on a case-by-case basis

and not on a generic level.

II.4. STATUS OF MARITIME SPATIAL PLANNING IN PORTUGAL

The identified problems did not go unnoticed to the Portuguese government. In 2006, the Ministry of

Defense published the National Ocean Strategy, with the central objective to make “a better use of

ocean and coastal resources, promoting sustainable economic and social development, through an

efficient, responsible and committed coordination that actively contributes to the International Oceans

Agenda”. For this purpose, the Interministerial Commission for Maritime Affairs was created. One of

the strategic actions is the development of a spatial planning of maritime activities, which includes

amongst others the mapping of current and future activities58.

Preparation for the development of the Maritime Spatial Plan started at the end of January 2009. The

first phase of the process includes characterisation studies and diagnoses. This entails amongst others

the identification and gathering of base information, benchmarking, a first round of coordination with

different stakeholders, the characterisation and mapping of maritime resources as well as maritime

activities and a diagnostic synthesis and SWOT matrix of the maritime space. The second phase aims

to develop a preliminary proposal of the plan, where the potential of each activity is assessed from a

sustainable point of view and potential conflicts are evaluated. This preliminary version should be

finished by the first half of 201059.

II.5. CASE STUDY I: SUMMARY

Portugal has only a small strip of shallow water in front of its coast, which is likely to be competed for

by different maritime activities. MSP is a useful tool to manage the process of balancing interests

between the activities involved. The Portuguese government has recognised this and is currently

working on the development of an Integrated Maritime Spatial Plan, which will become effective in

2013 or afterwards.

58 Ministry of National defense (2007). National Ocean Strategy 59 Expert interviews and http://poem.inag.pt/index.php?option=com_content&view=article&id=4&Itemid=18&lang=en

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Application of the ten key principles of MSP will create economic benefits, by the allocation of space

to competing maritime activities as well as by improving and accelerating (administrative) processes

and/or procedures. More specifically, MSP will lead to lower coordination costs for the government,

as well as for companies. The latter involves lower search, legal & administrative costs, as well as a

reduction of conflicts of interest between maritime activities. Currently, the main conflicts of interest

arise between fisheries & nature conservation and marine aquaculture & nature conservation. In the

future, conflicts are expected to increase between these industries, but new conflicts of interest are

expected to arise due to the evolution of offshore renewable energy (i.e. offshore wind and wave

energy). Besides these economic benefits, MSP might also lead to a better investment climate, which

implies a possible acceleration of investments as well as the creation of more investments.

Case study II: Maritime Spatial Planning and a transnational grid

European Commission study - 23 -

III. CASE STUDY II: MARITIME SPATIAL PLANNING AND A

TRANSNATIONAL GRID

During the Copenhagen Climate Conference in December 2009, the “North Sea Countries’ Offshore

Grid Initiative” was signed by nine north-western European countries60. These countries aim to sign a

binding agreement by the end of 2010 for the development of an offshore electricity grid in the North

Sea and the Irish Sea61. Such an offshore grid is necessary for multiple reasons of which one is to

bring electricity produced by offshore wind farms to the European mainland.

Nowadays, offshore wind farms are directly connected to shore in radial connections, which allow

power to flow in a single direction and to one country. However, a transnational offshore grid would

connect groups of offshore wind farms with each other and to the shores of different countries through

several hubs and interconnectors. Figure 5 provides a schematic representation of interconnections

between offshore wind farms. Figure 6 shows the most likely configuration of an offshore grid, as

proposed by the European Wind Energy Association.

The nine countries involved have allocated priority zones for offshore wind farms, taking other

maritime activities into account. Furthermore, a knowledge base has been created (Defra, EWEA, etc)

and objectives have been set. If this would not have been the case, the development of a transnational

grid would have incurred a delay since the location and capacity of future wind farms is an essential

input in the planning process of the grid. As an integrated zoning approach is one of the key principles

of Maritime Spatial Planning, the aim of this case study is to quantify the difference in value added

between a situation in which these principles would not have been applied and the current situation in

which they have.

60 The countries involved are Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Sweden and

the UK. 61 http://ec.europa.eu/avservices/services/showShotlist.do?out=PDF&lg=En&filmRef=67310

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Figure 5 : Schematic representation of an offshore grid

Wind farm

Onshore connection point

Cable connection

Wind farm

Onshore connection point

Cable connection

No offshore grid

Offshore grid

No offshore grid

Offshore grid

Source : Policy Research Corporation

Figure 6 : Proposal offshore network 2030 for the north Sea (EWEA)

Source : EWEA European Offshore Wind Map 2009

Case study II: Maritime Spatial Planning and a transnational grid

European Commission study - 25 -

III.1. THE ECONOMIC BENEFITS OF A TRANSNATIONAL OFFSHORE GRID

A transnational grid creates significant benefits, such as increased flexibility to transport and trade

energy. Furthermore, it will also avoid the loss of wind energy that cannot be utilised currently due to

the lack of sufficient transmission capacity. If no transnational grid is created, a growing amount of

wind energy cannot be brought ashore because of this increasing lack of transmission capacity. In this

respect, the development of an offshore grid is likely to reduce parts of the downtime62 caused by the

loss of generated electricity. However, the installation of such a grid will not remediate the other

causes of downtime, which are the following:

− Maintenance;

− Failures and repair of these failures;

− Too much wind power, causing wind turbines to be shut down;

− Too little wind power, failing to move the blades of the turbines.

To sum up, a transnational grid is likely to reduce parts of the downtime, implying a larger amount of

wind energy entering the energy mix. More specifically, the grid will contribute to a reduction in

emissions, as well as a reduction in the overall electricity generating costs. The latter is based on the

assumption that once a wind farm is installed, wind energy is a free energy source, with the exemption

of annual operation & maintenance costs. However, the latter are borne with or without the

transnational grid and are not relevant for the quantification of the benefits of MSP with respect to the

transnational grid.

III.2. THE RELATIONSHIP BETW EEN MARITIME SPATIAL PLANNING AND THE

TRANSNATIONAL OFFSHORE GRID

In the introduction of this case study, it was mentioned that the current status of Maritime Spatial

Planning adopted in the countries involved, contributes to the acceleration of the development of the

offshore grid. Without this approach, information about locations of future wind farms would not

have been publicly available and would have to be gathered first63, which obviously causes a delay.

This implies that in the absence of offshore wind energy zones, the grid will be finalised later in time,

implying that the economic benefits of the grid will also occur later in time.

To sum up, the presence of a key principle of MSP, i.e. zoning, has implicitly led to the acceleration

of the development of the grid, which in its turn will lead to an acceleration of the identified benefits.

62 Downtime is defined as the difference between the energy that could have been produced by the windmill if it had been

working at full capacity over a given period of time and the actual energy produced over the same period of time. The percentage of downtime is therefore the compliment of the capacity factor. The capacity factor is defined as the energy production over a given time period divided by the amount of energy that could have been produced by the windmill if it had been working at full capacity over the same period of time. With an estimated capacity factor of 40%, a downtime of 60% is implied.

63 This implies that the first five key principles of MSP are (largely) fulfilled.

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The following paragraph compares two situations, differing in the presence of a zoning approach, and

quantifies the economic benefits encountered in the situation where zones are already identified.

III.3. THE ECONOMIC BENEFITS OF THE ACCELERATION OF THE DEVELOPMENT O F A

TRANSNATIONAL GRID DUE TO THE ZONING APPROACH

This paragraph aims to quantify the economic benefits of a transnational grid caused by the presence

of a zoning approach. In other words, what has been the value added caused by the implementation of

the zoning approach up to this moment, i.e. 2010? This is done by comparing two situations, as

represented in Figure 7.

Figure 7 : Schematic representation of the consequences of zones for the transnational grid

December ’09 Copenhagen: decision to build transnational grid BE, DE, DK, FR, IE,

LU, NL, SE, UK

December ’09 Copenhagen: decision to build transnational grid BE, DE, DK, FR, IE,

LU, NL, SE, UK

Situation 1: no zoning approachSituation 1: no zoning approach Situation 2: zoning approach(status quo)

Situation 2: zoning approach(status quo)

Lack of informationLocation of future wind farms is

largely known

Search costs

Prolonged planning

No search costs

Acceleration of the developmentof the transnational grid

Acceleration of the reduction in emissions

Acceleration of the decrease in electricity generating costs

Source : Policy Research Corporation

In the first situation, it is assumed that no zones for offshore wind farms are created up to this moment

in time, i.e. 2010. The second situation represents the current situation or status quo, i.e. zones for

offshore wind farms are identified by the nine countries involved. It is assumed that the decision to

build an offshore grid is taken at the same moment in both situations, i.e. 2010.

Without the allocation of zones, the development of the grid encounters high search costs, due to the

lack of information and knowledge about future wind farm locations, as well as a prolonged planning

phase. In the second situation, this information is already known, which implies an accelerated

development of the grid compared to the first situation.

Case study II: Maritime Spatial Planning and a transnational grid

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In sum, the zoning approach implies a minimisation of search costs as well as an acceleration of the

development of the transnational grid.

The acceleration of the grid causes the economic benefits of the transnational grid to be realised

earlier in time, as stated in Paragraph III.2. These benefits can be summarised by a reduction in

downtime, causing a reduction in emissions and a decrease in electricity generating costs, as stated in

Paragraph III.164. The identified benefits are elaborated on and quantified in the following

paragraphs.

III.3.1. REDUCTION OF SEARCH COSTS

In the first situation, locations of future wind farms are not known. Assuming that the development of

the transnational grid cannot start without this information, it has to be gathered from the countries

involved. Search costs refer to the costs to be made by the developers of the grid (i.e. those

responsible for the planning process) to search for this information. This implies finding and

contacting the responsible departments in the countries involved and convincing them to create zones

for offshore wind farms, while taking other maritime activities into account. These benefits are not

quantified, due to the fact that it is impossible to estimate key inputs such as the size of the team

responsible for gathering this information, the number and duration of contact moments. However,

these search costs are not encountered in the status quo scenario, which is a significant benefit

resulting from the presence of offshore zones and should therefore be taken into account.

III.3.2. ACCELERATION

The fact that zones for future wind farms are not known in the first situation (no zoning), implies a

delay for the development of the grid in this scenario, due to time needed to gather this important

information. In other words, the second scenario (status quo) has a head start, resulting in an

accelerated development of the offshore grid and an acceleration of the economic benefits of a

transnational grid. To quantify this acceleration and the benefits it causes, the following assumptions

are made:

− In the status quo situation, the offshore grid will be finalised end 203065.

− The economic benefits of the grid are only realised when the grid is completely finalised, i.e. not sooner than 2030.

64 The increasing flexibility to trade and transport energy is not explicitly calculated, since this is not a direct consequence

of the zoning approach. It is mainly due to large overseas interconnectors which do not necessarily comprise connections with offshore wind farms. The part that is attributable to connecting offshore wind farms and consequently to the zoning approach is already taken into account in the reduction of the downtime.

65 This is considered to be a realistic horizon according to the European Wind Energy Association (http://www.ewea.org/fileadmin/ewea_documents/documents/publications/EWEA_opinion/Europe_s_offshore_wind_future_needs_new_transnational_power_grid.pdf)

Study on the economic effects of Maritime Spatial Planning – case studies

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− The estimated offshore wind power capacity for 2030 is the same in both scenarios. The pace of the development of offshore wind farms is considered to be mainly driven by the supply chain. Although zoning might increase investment certainty for wind farm developers, it does not alter the supply chain.

The acceleration is considered to be the time needed for the countries to draw up a zoning plan in

situation 1 (no zoning), which is similar to the plans currently in place. This is estimated by looking at

the actual time the countries spent on developing their plans in the status quo situation. On average, it

took approximately four years to establish the current zones in the North Sea and Irish Sea region,

which is used as an input to quantify the economic benefits realised in situation 2 (status quo).

However, the quantification of these benefits is also carried out for an acceleration of 1.5 and 6.5

years, to account for the variability between countries. The quantifications are thus performed for

three scenarios:

− The grid will be ready mid 2032 (situation 1 without zoning) instead of end 2030 (status quo situation);

− The grid will be ready end 2034 (situation 1 without zoning) instead of end 2030 (status quo situation);

− The grid will be ready mid 2037 (situation 1 without zoning) instead of in end 2030 (status quo situation).

The main result of acceleration is a partial reduction in downtime in the status quo situation. A part of

total downtime is caused by the lack of transmission capacity in the absence of an offshore grid,

resulting in a significant level of electricity unable to reach the shore. Since the grid will be finalised

earlier in the status quo situation (i.e. 2030), some portion of this ‘lost’ electricity is recovered earlier

in time due to the presence of the grid. This means that a certain amount of electricity enters the

energy mix in 2030 instead of in 2032, 2034 or 2037. The amount of energy recovered is estimated as

follows:

− The total offshore wind power capacity in 2030 for the nine countries involved is estimated at 137.51 GW66;

− A capacity factor67 of 40% is assumed to prevail until 2030, resulting in 60% of downtime or 722.77 TWh/year;

− The transnational grid is assumed to reduce total downtime by a factor of 0-30%, split up in ranges of 10% (i.e. 0-10%, 10-20%, 20-30%).

To sum up, situation 2 (status quo) recovers 0-30% of total downtime 1.5, 4 or 6.5 years earlier than

in situation 1. This implies an acceleration of the reduction of emissions and the reduction of

generating costs. In the following paragraphs these economic benefits are quantified.

66 Own calculations based on European Wind Energy Association (2009), Pure Power – Wind energy targets for 2020 and

2030 67 The capacity factor of a power plant is the ratio of the actual output of a power plant over a period of time and its output

if it had operated at full nameplate capacity the entire time

Case study II: Maritime Spatial Planning and a transnational grid

European Commission study - 29 -

III.3.2.1. Acceleration of the reduction of emissions

An accelerated finalisation of the offshore grid results in an acceleration of reduced emissions.

Emissions of CO2, NOX, SO2 and PM10 are considered in this paragraph, since these are the main

pollutants of electricity generation. In the status quo situation, the reduction in downtime caused by

the transnational grid leads to a reduction in emissions from 2030 and onwards, whereas in situation 1

(lack of key principles applied by the European countries), this reduction only commences mid 2032,

end 2034 or mid 2037.

Only CO2 is quantified in monetary terms because it is the only pollutant which is traded on a market.

This is not the case for NOX, SO2 and PM10, which cannot be converted into monetary values.

Therefore these values have been quantified in terms of avoided tonnes. Table 13 shows the amount

of avoided emissions of NOX, SO2 and PM10 in the status quo situation. This is displayed for all three

scenarios, both in acceleration and reduced downtime. The calculation is based on the estimated

installed capacity of wind power in 2030 for the nine countries involved and the average emissions of

CO2, NOX, SO2 and PM10 per TWh generated in 2006. The average emission for the nine countries

involved amounted to 132 million tonnes CO2 per produced TWh, 0.35 million tonnes of NOX per

produced TWh, 0.77 million tonnes of SO2 per produced TWh and 1.19 million tonnes of PM10 per

produced TWh68. In 2030, the installed capacity of offshore wind energy is estimated to be 137.56

GW. In scenario 1 (downtime reduction between 0% - 10%) 72.28 TWh downtime can be avoided by

the installation of the offshore grid69. This means that per year 9 538 tonnes of CO2, 25 tonnes of

NOX, 55 tonnes of SO2 and 86 tonnes of PM10 can be avoided in scenario 1. If the transnational grid is

accelerated by 1.5 years due to available maritime spatial plans in these nine countries, 14 307 tonnes

of CO2 (= 9 538 tonnes x 1.5), 38 tonnes of NOX, 83 tonnes of SO2 and 129 tonnes of PM10 can be

avoided, as shown in Table 1370.

68 The average emissions in 2006 have a lower renewable energy penetration, but can still be used for the purpose of this

calculation. It is assumed that renewable energy sources will be deployed to the maximum in 2030 (supply chain driven), implying that the production from offshore wind energy which is lost due to transmission constraints is backed up by classic or fossil-fueled energy sources. Policy Research Corporation based on European Environment Agency (2008), Air pollution from electricity-generating large combustion plants and European Commission (2009), Study on tourist facilities in ports

69 The total full capacity production is equal to 1 205 TWh (i.e. 137.56 GW*365 days*24 hours). The average downtime is estimated to be 60% i.e. 722 TWh (0.6*1 205 TWh). In scenario 1, it is assumed that between 0% and 10% of this downtime can be avoided through the installation of the offshore grid i.e. between 0 TWh and 72 TWh.

70 Same calculcations can be made for an acceleration of 4 years and 6.5 years.

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Table 13 : Emissions saved due to an acceleration of the completion of the transnational grid

0 – 61 997

61 997 – 123 988

123 988 – 186 985

0 – 38 152

38 152 – 76 300

76 300 – 114 452

0 – 14 307

14 307 – 28 613

28 613 – 42 920

0-10%10-20%

20-30%

CO2

0-10%10-20%20-30%

0-10%10-20%20-30%

0-10%10-20%20-30%

Downtime reduction

0 – 558

558 – 1 115

1 115 – 1 673

0 – 361

361 – 721

72 – 1 082

0 – 166

166 – 331

331 – 497

Acceleration of 6.5 years

0 – 343

343 – 686

686 – 1 029

0 – 222

222 – 444

444 – 666

0 – 102

102 – 204

204 – 306

Acceleration of 4 years

0 – 129

129 – 257

257 – 386

PM10

0 – 83

83 – 166

166 – 250

SO2

0 – 38

38 – 76

76 – 114

NOx

Acceleration of 1.5 years

Avoided Emissions(million tonnes)

0 – 61 997

61 997 – 123 988

123 988 – 186 985

0 – 38 152

38 152 – 76 300

76 300 – 114 452

0 – 14 307

14 307 – 28 613

28 613 – 42 920

0-10%10-20%

20-30%

CO2

0-10%10-20%20-30%

0-10%10-20%20-30%

0-10%10-20%20-30%

Downtime reduction

0 – 558

558 – 1 115

1 115 – 1 673

0 – 361

361 – 721

72 – 1 082

0 – 166

166 – 331

331 – 497

Acceleration of 6.5 years

0 – 343

343 – 686

686 – 1 029

0 – 222

222 – 444

444 – 666

0 – 102

102 – 204

204 – 306

Acceleration of 4 years

0 – 129

129 – 257

257 – 386

PM10

0 – 83

83 – 166

166 – 250

SO2

0 – 38

38 – 76

76 – 114

NOx

Acceleration of 1.5 years

Avoided Emissions(million tonnes)

Source : Policy Research Corporation

CO2 certificates are traded, which makes it possible to quantify the economic benefit of the

accelerated reduction in this particular pollutant. The spot price of one ton of CO2 in 2030 is estimated

by using two scenarios. The first scenario departs from the spot price in 201071, which is corrected for

20 years of estimated inflation72. This results in an estimated spot price of about € 20/ton. The second

scenario estimates the 2030 spot price at € 49, based on the estimated spot price in 202073 and

corrected for inflation74. The figures in Table 14 are calculated as follows. In scenario 1 (downtime

reduction 0 – 10%) 14 307 million tonnes of CO2 can be avoided if MSP has accelerated the

transnational grid by 1.5 years. If the transnational grid would not have been installed in 2030 but

only in mid 2031, this would mean that 9 538 tonnes of CO2 would have been emitted between

January 2030 and December 2030 and 4 769 tonnes of CO2 between January 2031 and mid 2031.

However, due to MSP the transnational grid will already be installed in 2030 and these emissions can

be avoided. This means that – in case the spot price for CO2 is € 20 / ton - € 190 million can be

avoided between January and December 2030 and another € 95 million between January – mid 2031.

In present value this means that in total € 86 million can be gained because of the acceleration of the

transnational grid with 1.5 years due to MSP, if 10% of the downtime can be reduced. The same

calculations can be made for the other scenarios.

71 Spot price of 21/01/2010. Source: http://www.ecx.eu/Market-data-snapshot 72 Inflation between 2010 and 2030 is estimated at 1.9% per year. 73 http://www.emissierechten.nl/, CO2 market, trader nervousness, November 16th 2009. 74 Inflation between 2020 and 2030 is estimated at 1.9% per year.

Case study II: Maritime Spatial Planning and a transnational grid

European Commission study - 31 -

Table 14 : PV of avoided CO2 emissions due to an acceleration of the completion of the offshore grid (6%, 2010)

0 – 324

324 – 648

648 – 973

0 – 214

214 – 427

427 – 641

0 – 86

86 – 173

173 – 259

0-10% 10-20%20-30%

CO2 - € 20/ton

CO2 - € 49/ton

PV of avoided emissions

(€ million)

0-10% 10-20%20-30%

Downtime reduction

0 – 808

808 – 1 617

1 617 – 2 425

Acceleration of 6.5 years

0 – 533

533 – 1 065

1 065 – 1 598

Acceleration of 4 years

0 – 215

215 – 431

431 – 646

Acceleration of 1.5 years

0 – 324

324 – 648

648 – 973

0 – 214

214 – 427

427 – 641

0 – 86

86 – 173

173 – 259

0-10% 10-20%20-30%

CO2 - € 20/ton

CO2 - € 49/ton

PV of avoided emissions

(€ million)

0-10% 10-20%20-30%

Downtime reduction

0 – 808

808 – 1 617

1 617 – 2 425

Acceleration of 6.5 years

0 – 533

533 – 1 065

1 065 – 1 598

Acceleration of 4 years

0 – 215

215 – 431

431 – 646

Acceleration of 1.5 years

Source : Policy Research Corporation

III.3.2.2. Acceleration of the reduction of electricity generating costs

The quantification of the reduction in generating costs is based on the assumption that electricity

produced from wind farms has a zero cost which should be explained as follows. Building a wind

farm naturally has costs at the time of installation, but these costs are made whether windmills

produce electricity 0% - 50% or 100% of the time75. The difference in productivity, without additional

investments to be made, leading to additional revenue is what economists call marginal revenue.

After all, the only input required is wind which is a free natural resource

Applying the MSP principles will lead to acceleration of the grid, hence to accelerating of the

prevention of losing electricity which cannot be transported to land. This means that if the

transnational grid is accelerated with 1.5 year and the downtime could be reduced with 10% 72.28

TWh per year (see paragraph III.3.2.1) will be gained and will not have to be produced by other

sources, which implies that certain costs will not have to be made.

Table 15 gives an overview of the total costs that can be avoided by accelerating the transnational

grid. The calculations conducted for the benefits of the transnational grid are based upon the estimated

average fuel cost for 2030, which are likely to be avoided in situation 2 (status quo) after 2030, but

would have to be incorporated in situation 1 (no zoning) for 1.5, 4 or 6.5 years76. In 2030, the average

fuel cost is estimated to be € 29.40/MWh77. If the acceleration of the grid with 1 year could reduce the

downtime with 72.28 TWh, this would mean that € 2 125 million of fuel costs do not have to be made.

The present value of the costs that could be reduced by accelerating the transnational grid are

presented in Table 15.

75 The costs made for the installation of a wind farm are considered to be sunk costs. Sunk costs are non-recoverable costs

regardless of future events. 76 Total generating costs comprise fuel costs, non-fuel generating costs and annual capital costs. It is assumed that the sum

of the average overall non-fuel generating costs and annual capital costs for the estimated energy mix in 2030, differ in a minimal way from those of offshore wind farms. For this reason, only fuel costs are regarded in the calculation.

77 European Energy and Transport - Trends to 2030, Update 2007

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Table 15 : PV of acceleration of the completion of the offshore grid (6%, 2010)

Fuel costs

PV of avoided generating cost

(€ million)

0-10%10-20%

20-30%

Downtime reduction

0 – 3 694

3 694 – 7 388

7 388 – 11 082

Acceleration of 6.5 years

0 – 2 434

2 434 – 4 867

4 867 – 7 301

Acceleration of 4 years

0 – 984

929 – 1 969

1 969 – 2 953

Acceleration of 1.5 years

Fuel costs

PV of avoided generating cost

(€ million)

0-10%10-20%

20-30%

Downtime reduction

0 – 3 694

3 694 – 7 388

7 388 – 11 082

Acceleration of 6.5 years

0 – 2 434

2 434 – 4 867

4 867 – 7 301

Acceleration of 4 years

0 – 984

929 – 1 969

1 969 – 2 953

Acceleration of 1.5 years

Source: Policy Research Corporation

III.4. CASE STUDY II: SUMMARY

This case study demonstrated the economic benefits of applying the MSP key principles for offshore

wind farms with respect to the development of a transnational grid. This has resulted into zones

designated for offshore wind parks, based on future power levels in these areas. Since these zones

were created by taking the presence of other maritime activities into account, this zoning approach is

considered as a result of the first five key principles of MSP. The zoning approach has implicitly led

to an accelerated completion of the offshore grid, resulting in an accelerated realisation of its

economic benefits. The benefits of this zoning approach up to this moment in time (i.e. 2010) are

quantified by calculating the economic benefits resulting from an accelerated reduction in emissions

and generating costs, as well as by the absence of search costs.

The absence of search costs is not quantified, but should be taken into consideration in a qualitative

way. The reduction in emissions of NOx, SO2 and PM10 is quantified in terms of tonnes. The avoided

NOx emissions might reach to about 500 million tonnes, depending on the acceleration. For SO2, the

avoided emissions add up to 250, 666 or 1 082 million tonnes, whereas the avoided PM10 emissions

might reach between about 400 to 1 700 million tonnes. The avoided CO2 emissions and generating

costs are quantified in monetary terms and are displayed in Table 16. These range from € 0 – 3.6

billion if the offshore grid is accelerated 1.5 years, depending on the estimated spot price of CO2 and

the downtime reduction. For an acceleration of 4 years, the avoided costs range from € 0 – 8.9

million, whereas an acceleration of 6.5 years might avoid € 0 – 13.5 million.

Table 16 : PV of acceleration of the offshore grid (6%, 2010)

0 – 4.5

4.5 – 9.0

9.0– 13.5

0 – 3

3 – 5.9

5.9 – 8.9

0 – 1.2

1.2 – 2.4

2.4 – 3.6

0-10%10-20%

20-30%

Fuel costs + CO2 (€ 48.76/ton)

Fuel costs + CO2 (€ 19.56/ton)

PV of avoided generating cost and avoided emissions

(€ billion)

0-10%

10-20%20-30%

Downtime reduction

0 – 4.0

4.0 – 8.0

8.0 – 12.1

Acceleration of 6.5 years

0 – 2.6

2.6 – 5.3

5.3– 7.9

Acceleration of 4 years

0 – 1.1

1.1 – 2.1

2.1– 3.2

Acceleration of 1.5 years

0 – 4.5

4.5 – 9.0

9.0– 13.5

0 – 3

3 – 5.9

5.9 – 8.9

0 – 1.2

1.2 – 2.4

2.4 – 3.6

0-10%10-20%

20-30%

Fuel costs + CO2 (€ 48.76/ton)

Fuel costs + CO2 (€ 19.56/ton)

PV of avoided generating cost and avoided emissions

(€ billion)

0-10%

10-20%20-30%

Downtime reduction

0 – 4.0

4.0 – 8.0

8.0 – 12.1

Acceleration of 6.5 years

0 – 2.6

2.6 – 5.3

5.3– 7.9

Acceleration of 4 years

0 – 1.1

1.1 – 2.1

2.1– 3.2

Acceleration of 1.5 years

Source : Policy Research Corporation

Case study II: Maritime Spatial Planning and a transnational grid

European Commission study - 33 -

Study on the economic effects of Maritime Spatial Planning – case studies

- 34 - European Commission study

Annexes

European Commission study - 35 -

IV. ANNEXES

IV.1. PORTUGUESE CASE STUDY

Figure 8 : Portugal’s marine areas

Source : http://poem.inag.pt/index.php?option=com_content&view=article&id=2&Itemid=15&lang=en

Study on the economic effects of Maritime Spatial Planning – case studies

- 36 - European Commission study

Figure 9 : Alentejo oil exploration area

Source : Policy Research Corporation based on Tullow Oil, 2009.

Annexes

European Commission study - 37 -

Figure 10 : Peniche oil exploration area

Source : Policy Research Corporation based on Google Earth and Petrobras, 2007

Study on the economic effects of Maritime Spatial Planning – case studies

- 38 - European Commission study

Figure 11 : Detail of the Alentejo oil exploration area and its coincidence with the 12NM border

Source : Policy Research Corporation based on Google Earth

Figure 12 : Proposed offshore wind farms and nearshore areas

Source : Policy Research Corporation based on Google Earth

Annexes

European Commission study - 39 -

Figure 13 : Proposed zones for wave farms

Source : Policy research Corporation based on Wave Energy Centre

Study on the economic effects of Maritime Spatial Planning – case studies

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Figure 14 : Some fishing ports

Source : Policy Research Corporation based on Google Earth

Annexes

European Commission study - 41 -

Figure 15 : Marine offshore aqua farms

12 NM border

Marine offshore aqua farms

12 NM border12 NM border

Marine offshore aqua farmsMarine offshore aqua farms

Source : Policy Research Corporation based on Google Earth

Study on the economic effects of Maritime Spatial Planning – case studies

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Figure 16 : Natura 2000 areas

Source : Policy Research Corporation based on http://natura2000.eea.europa.eu/# and Google Earth

Figure 17 : Main areas for marine tourism

Source : Policy Research Corporation based on Google Earth

Annexes

European Commission study - 43 -

Figure 18 : Current activities in southern Portugal

Main fishery-dependent areas

Natura 2000

Marine tourism

12 NM border

Marine offshore aqua farms

Main fishery-dependent areasMain fishery-dependent areas

Natura 2000 Natura 2000

Marine tourismMarine tourism

12 NM border12 NM border

Marine offshore aqua farmsMarine offshore aqua farms

Source : Policy Research Corporation based on http://natura2000.eea.europa.eu/# and Google Earth

Figure 19 : Current activities in northern Portugal

Wave farmWave farm

Main fishery-dependent areasMain fishery-dependent areas

Natura 2000 Natura 2000

12 NM border12 NM border

Marine offshore aqua farmsMarine offshore aqua farms

Source : Policy Research Corporation based on Google Earth

Study on the economic effects of Maritime Spatial Planning – case studies

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Figure 20 : Potential areas of conflict (left) and proposed concession areas for wave energy (right)

Source : Policy research Corporation based on Wave Energy Centre

References

European Commission study - 45 -

V. REFERENCES

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world: from Brazilian deepwater to Gulf of Mexico

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European Commission (2009), Study on Tourist Facilities in Ports

European Commission (2008), European Energy and Transport - Trends to 2030, Update 2007

European Commission (2008), The economics of climate change adaptation in EU coastal areas

European Cruise Council (2009), Contribution of Cruise Tourism to the economies of Europe

European Environment Agency (2008), Air pollution from electricity-generating large combustion

plants

European Wind Energy Association (2009), Pure Power – Wind energy targets for 2020 and 2030

Institute of Shipping and Logistics (2009), Shipping Statistics Yearbook 2008

International Association of Dredging Companies (2008), Delphi Survey

Ministry of National Defense (2007), National Ocean Strategy

Moniz, Kovács, Vicente & Ramos (2000), Fisheries Development and Fisheries Dependent

Communities in Portugal: Socio-Economic Change and Strategic Planning

National Institute of Statistics and Directorate General of Fisheries and Aquiculture (2008), Fisheries

Statistics 2007

OECD (2003), Country note on National Fisheries Management Systems - Portugal

OSPAR Commission (2007), 2006 Report on the Status of the OSPAR Network of Marine Protected

Areas

Trancoso, Riflet, Domingos (2009), Forecasting offshore wind power in Portugal

Wave Energy Centre, (2004), Potential and Strategy for the Development of Wave Energy in Portugal

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Collins English Dictionary: http://www.collinslanguage.com/

Emissierechten.nl: http://www.emissierechten.nl/

Encyclopedia Britannica: http://www.britannica.com/

Energy-pedia news: www.energy-pedia.com/article.aspx?articleid=138799

Study on the economic effects of Maritime Spatial Planning – case studies

- 46 - European Commission study

European Climate Exchange : http://www.ecx.eu/

European Commission – DG Environment: http://ec.europa.eu/environment/nature/natura2000/db

_gis/pdf/area_calc.pdf

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4C Offshore Global Offshore Wind Farms Database: http://www.4coffshore.com/offshorewind/