Offshore Wind Energy Development for the South Atlantic Bight

Transcription

1 Offshore Wind Energy Development for the South Atlantic Bight Southeast Coastal Wind Conference Charlotte, NC March 9, 2012 What is Santee Cooper? South Carolina Public Service Authority Authority of the state government Quasi-governmental Serve customers in all 46 counties of South Carolina, through our own distribution or the electric co-operatives Our generation portfolio (2010) About 75% coal, 10% nuclear, 10% natural gas, 2% hydro, 3% power purchases and all other. Our retail area NC line to Georgetown Largest power generator in South Carolina 1

2 Why Offshore Wind? Santee Cooper renewable energy leader Conditions support research Large resource Shallow coast Class 6 winds close to shore Good ports 4+years and $1.2mill+ of study Next step - $4 mill more Class 6 Focusing on Georgetown and Little River 2

3 What are Next Steps? Find assistance for $4 million step Two options Without DOE assistance With DOE Actively seeking other partners in the Southeast to participate regional exploration Georgetown site in state waters next phase risk reduction Area of Study PROPOSED CORRIDOR FOR EXPORT CABLE INTERCONNECTION wind study area 3

4 DOE FOA Schedule Sep 2012 Sep 2013 Current DOE Period 1 DOE Period 2 DOE funding applications due (May 2012) DOE decisions (Aug) and awards (Sep 2012) Budget Period 1 is for early design and permitting, including met tower Budget Period 2 is up to four years for project commissioning. The Possible Match Collaboration All Southeast gain experience Shared cost and risk minimizes impact Keeps Southeast in the running for offshore wind benefits Establishes a benchmark for costs in the South Atlantic Bight DOE All about technology and cost Expedite some installations Establish baseline costs in variety of regions Demonstrate various technologies Find solid demonstration projects 4

5 The Hurdles and Hoops Collaborators Need to justify funding Need to see how benefits outweigh risks (outside the comfort zone) Act within DOE timelines Status quo and Inertia DOE Convince them that Southeast can lead (state governments are mixed) Have patience with Southeast s cautious ways The Big Win Collaborators Have real costs and a better idea of what it takes to get them in range Observe the real spin-off effects of OSW A way to make a proactive effort DOE Solid partners Serious evaluation of potential for Southeast Potential for realworld data in hurricanes 5

6 What is DOE Looking For? Primary Goals Install innovative offshore wind systems in most rapid and responsible manner possible Expedite development & deployment of systems with potential to lower the Levelized Cost of Energy below 10c/kWh or local hurdle price Secondary Goals World class demonstration and test capabilities Establish & validate infrastructure for installation and operation Support development of industry utilitize innovative technologies for North America Evaluate siting and approval processes Address public concerns The Challenge Match DOE timelines for Budget Period 1 and 2 - to the willingness to fund work and make commitments with limited info Balance the need for innovation, research and risk with the desire for certainty and low-cost Balance local content with need for low cost 6

7 Current Project Partners There is room for GA, NC and VA to add their strengths and expertise to a regional project 7