Offshore Wind Energy s Role in Achieving 20% by 2030

Transcription

1 Offshore Wind Energy s Role in Achieving 20% by

2 54 GW by

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

4 Current Landscape 4

5 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 No Offshore Wind Projects Installed In U.S. Yet W.E.S.T. LLC US Offshore Wind Projects Proposed Cuyahoga County Gulf of Mexico Hull Municipal Buzzards Bay Cape Wind Associates Rhode Island Winergy New Jersey Delaware Southern Company Atlantic Ocean Project in Federal Waters Project in State Waters 5

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 $0.70/MWh average monthly distribution customer cost impact (real levelized 2007$) 6

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 7

8 Market Drivers 8

9 Supply aligned with demand 28% of coastal states use 78% of the electricity in the U.S. 9

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 10

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 11

12 Growing state RPS Delaware 20% by 2019 Maryland 20% by 2022 requirements 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 12

13 Advances in technology Larger turbines Improved blade designs Decreased mfg. costs 13

14 Land-based Shallow Water Transitional Depth Deepwater Floating Offshore Wind Technology Commercially Proven Technology Demonstration Phase Estimated US Resource 0m-30m 430-GW 0m-30m 430-GW 60m-900m 1533-GW 14

15 Siting Strategies 15

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 16

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 17

18 Ensuring a Future for Offshore Wind in the U.S. 18

19 What s needed to advance offshore wind energy in the Federal policies U.S. 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 19

20 Advancing offshore wind energy Critical mass of projects required to attract European manufacturers Specialized training for offshore wind technicians Reduction of installation costs Overcome accessibility issues continued Credit: GE Energy 20

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 21

22 Thank You For more information contact: Peter Mandelstam