Embed Size (px)
Citation preview
1
Offshore Wind Energy’s Role in Achieving 20% by 2030
2
54 GW by 2030
3
Can we meet this goal?
• Land-based wind energy has grown at a 30% annual growth rate over the past five years
• Achieving 54 GW by 2030, would require offshore to grow at a 23% annual growth rate (avg. 3,375 MW/year) assuming 2,000 MWs are installed by 2014
4
Current Landscape
5
US Offshore Wind Projects Proposed
Atlantic Ocean
Gulf of Mexico
Cape Wind Associates
Winergy
W.E.S.T. LLC
Hull Municipal
Southern Company
Cuyahoga County
No Offshore Wind Projects
Installed In U.S. Yet
New Jersey
Delaware
Buzzards Bay
US Offshore Wind Initiatives
Project State MW
Capewind MA 468
Hull Municipal MA 15
Buzzards Bay MA 300
Rhode Island (OER) RI 400
Winergy NY 10
New Jersey (BPU) NJ 350
Delmarva DE 450
Southern Company GA 10
W.E.S.T. TX 150
Cuyahoga County OH 20
Total MW 2173
Rhode Island
Project in Federal Waters
Project in State Waters
6
The country’s first offshore PPA
• 200MW signed PPA between Bluewater Wind & Delmarva Power• Energy - $98.93/MWh (2007$)• Capacity - $70.23/kW year• RECs - $15.23/MWh• 2.5% annual escalator• $0.70/MWh –average monthly distribution customer cost impact (real levelized 2007$)
7
Term Sheet with Delaware Municipal Electric Corporation
• Supply of energy, capacity, and RECs to nine municipally-owned electric distribution utilities
• 20 year agreement• Valued at $200 - $300 million over life of
contract
8
Market Drivers
9
Supply aligned with demand28% of coastal states use 78% of the electricity in
the U.S.
10
Wind resource and proximity to load
• Close proximity to large and growing load centers along eastern seaboard
• Lack of high wind, land-based sites in Northeast
• Strong correlation between production and peak loads
11
State and federal policies resulting in higher fossil fuel
costs
• RGGI – 10 states signed MOU– First auction in September
• National cap and trade legislation likely in 2009
• Debate shifting from causes of global climate change to solutions
12
Growing state RPS requirements
• Delaware 20% by 2019• Maryland 20% by 2022• New Jersey 22.5% by 2021• Pennsylvania 18% by 2020/2021– Over 20 million MWh’s by 2020 in DE, MD, NJ,
and PA combined• New York 24% by 2013• Rhode Island 16% by 2020
Database of State Incentives for Renewables and Efficiency
13
Advances in technology
• Larger turbines
• Improved blade designs
• Decreased mfg. costs
14
Offshore Wind Technology
CommerciallyProven
TechnologyDemonstration
Phase
Land-based Shallow Water
Transitional Depth
Deepwater Floating
60m-900m1533-GW
Estimated US Resource
0m-30m430-GW
0m-30m430-GW
15
Siting Strategies
16
Offshore wind park development• Identify site– Wind resource ≥ to 18 mph– Moderate water depths & suitable sea floor
conditions– Minimal conflicts over ocean use– Compatibility with other environmental goals– Access to electric transmission– Ports available for construction and O&M
17
Offshore wind park development continued
• Engage the public early and often– Identify all stakeholders– Educate, educate, educate– Honest and transparent communication– Visualizations play a critical role
18
Ensuring a Future for Offshore Wind in the U.S.
19
What’s needed to advance offshore wind energy in the
U.S.• Federal policies– Short Term - stable production incentive (PTC)– Mid Term - national RPS and transmission legislation– Long Term - effective carbon regulation
• Continued refinement of technology• Fair lease and operating fees for a
nascent industry
20
Advancing offshore wind energy continued
• Critical mass of projects required to attract European manufacturers
• Specialized training for offshore wind technicians
• Reduction of installation costs
• Overcome accessibility issues Credit: GE Energy
21
For more information on offshore wind energy
• American Wind Energy Assoc. – awea.org• British Wind Energy Assoc. – bwea.org• Windpower.dk• Utility Wind Integration Group – uwig.org• www.ocean.udel.edu/windpower/
