Overview of Offshore Wind Projects in New England Waters Michael ...

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Overview of Offshore Wind Projects in New England Waters Michael Ernst, Esq. Program Chair Director of Regulatory Affairs Tetra Tech

Environmental Business Council of New England Energy Environment Economy

Introduction to Tetra Tech • • • •

Full Service Environmental Consultant since 1966 13,000 Employees in 35 states and 16 countries Ranked #1 Wind Power Consultant for 2012 by Engineering News Report Supporting Surveys, Permitting and/or construction of 500 onshore wind farms and following offshore wind projects:  Deepwater Wind Block Island Wind Farm, RI (5 6MW Turbines – all permits filed)  Garden State Ocean Energy LiDAR Buoy, NJ  Dominion Energy Turbines off Virginia (2 6MW turbines – surveys underway)  Statoil Hywind Maine Floating Turbines, ME (4 3MW Turbines – surveys underway)

Introduction to Tetra Tech • • • •

Full Service Environmental Consultant since 1966 13,000 Employees in 35 states and 16 countries Ranked #1 Wind Power Consultant for 2012 by Engineering News Report Supporting Surveys, Permitting and/or construction of 500 onshore wind farms and following offshore wind projects:  Deepwater Wind Block Island Wind Farm, RI (5 6MW Turbines – all permits filed)  Garden State Ocean Energy LiDAR Buoy, NJ  Dominion Energy Turbines off Virginia (2 6MW turbines – surveys underway)  Statoil Hywind Maine Floating Turbines, ME (4 3MW Turbines – surveys underway)

International Offshore Wind Industry  Denmark: First offshore turbines

installed in 1990  European Installations    

4.3 GW installed in 2012 40 GW planned for 2020 150 GW by 2030; 14% of EU demand 40,000 European Jobs Today

 > 300,000 jobs by 2020

 DOE: Atlantic Coast could produce

>54 GW of offshore wind  DOE Projections:  54,000 MW by 2030 =14 M homes  300,000 jobs  Cost reduced to 12-15 cents/kwh

United States Wind Resource

Wind Power Classification Wind Power Class 3 4 5 6 7 a

Resource Potential

Wind Power Density at 50 m 2 W/m

Wind Speeda at 50 m m/s

Wind Speeda at 50 m mph

Fair Good Excellent Outstanding Superb

300 - 400 400 - 500 500 - 600 600 - 800 800 - 1600

6.4 - 7.0 7.0 - 7.5 7.5 - 8.0 8.0 - 8.8 8.8 - 11.1

14.3 15.7 16.8 17.9 19.7 -

Wind speeds are based on a Weibull k value of 2.0

15.7 16.8 17.9 19.7 24.8

. Renewable Portfolio Standard Policies.. www.dsireusa.org / March 2013.

29 states,+ Washington DC and 2 territories,have Renewable Portfolio Standards

(8 states and 2 territories have renewable portfolio goals).

Cost of Offshore Wind First US Projects:  Cape Wind: 18.7 cents/kwh (300 MW)  Deepwater Wind Block Island: 24.4 cents/kwh (30 MW)  Statoil Maine Floating Turbines: 27 cents/kwh (12 MW)  Fishermen’s Energy NJ: ~29 cents/kwh?? (24 MW) Second Generation US Projects:  Deepwater Wind Rhode Island: “mid teens” (1000 MW)  DOE Projects 12-15 cents/kwh by 2030 (500-1000MW)  U. Maine: floating wind farms: 10 cents/kwh by 2030

Selling Offshore Wind Energy Factors affecting sale of offshore wind energy:  Public Utility Commissions must approve costs to ratepayers  MA – DPU approves Cape Wind contracts – cost effective with all benefits

under Green Communities Act  RI – New legislation for PUC to approve net benefits of Block Island Wind  Maine – 2009 Act: net benefits to ME; limited ratepayer impact 

Statoil Contract: 27 c/kwh - $4 Billion lifetime (Charles River Associates)  Peak Coincident Power Production during 11 of 12 last hottest days

 Regional Competitive Procurement  New England RFP approved by Governors for 2014  1000 to 3000 MW spread among many utilities and ratepayers

Offshore Wind Incentives

Offshore Wind Energy Area Leases  Maine: 3 Floating Pilots

 MA: WEA for 9000 MW  RI: July 31 Bids for 3000 MW  NY: NYPA Lease for 750 MW 

  



plus 3 WEAs NJ: 2014 Bids for 5 WEAs, ORECs DE: Lease issued for 400 MW MD: 2014 Bids; OREC VA: 2013 Bids for 2000 MW NC: 2014 Bids for 3 WEAs