OFFSHORE WIND CONNECTION & COSTS Mary Doswell Alternative Energy Solutions December 7 th, 2010
Virginia Offshore Wind Integration Study
Virginia Beach Transmission System
Study Scope System studied was a 2020 Summer Peak Loading System Study is not a substitute for a PJM Interconnection Study Two Wind Farm Scenarios Studied 2700 MW Wind Farm Equal to a 900 MW capacity injection 4500 MW Wind Equal to a 1500 MW capacity injection
Landstown Substation Landstown Substation chosen as interconnection site Multiple 230 kv lines present Available land
Virginia Offshore Border Offshore Transmission Station Shore Line Distribution voltage lines Once on shore, attachment facilities could extend several more miles to point of interconnection Attachment Facilities 15 to 25 miles just to shore line. Would be transmission voltage level and possibly need to be multiple DC lines.
Study Results 2700 MW Site 900 MW Capacity Injection No reliability issues identified 2700 MW Energy Injection Three 230 kv lines potentially overloaded Estimated cost to resolve deficiencies $30 M These are optional upgrades developer(s) can opt to have. Otherwise output t of the wind farm may be restricted based on system conditions
Study Results 4500 MW Site 1500 MW Capacity Injection No reliability issues identified 4500 MW Energy Injection Five 230 kv lines potentially overloaded Estimated cost to resolve deficiencies $70 M These are optional upgrades developer(s) can opt to have. Otherwise output of the wind farm may be restricted based on system conditions At this level a second interconnection site should be considered Fentress Substation
Conclusion It will be possible to interconnect a large Wind Farm Site in the area Transmission upgrades required Getting transmission facilities from the offshore sites to interconnection substations will be a major challenge. 1000 MW Involve without many existing system facilities and improvements right-of-ways. Urban area Environmental constraints
Dominion s Interest in Renewable Energy Meet state s renewable goals in Virginia and North Carolina Reduce Dominion s carbon intensity Maintain a balanced and diversified generation portfolio Hedge against potential rise in future fuel costs In 2007, VA passed into law Voluntary Renewable Portfolio Standard (RPS) 4% by 2010, 7% by 2016,12% by 2022, 15% by 2025 VA 2010 law passed to allow arbitrage of Tier I RECs for Tier II RECs : ratepayer benefit Evaluating all available options to meet target Existing utility owned renewable options Build renewable facilities in VA Purchase REC s
Offshore Wind - Cost Comparison $6,000 $400 $5,500 $350 $5,000 $/K KW Installed Cost $4,500 $4,000 $3,500 Project PPA s or applied research to price Renewable Obligations $300 $250 $200 $/M MWH Levelized Cost $3,000 $2,500 $/KW Installed Range Estimatedleveli levelized ed cost or PPA price Low$/MWH Estimated levelized cost or PPA price High $/MWH $150 $2,000 VCERC Emerging Energy Research h2009 UK Department of UK Department of Energy and Climate Energy and Climate Change 2008 (E&Y) Change June 2010 (Mott McDonald) Blue Water Cape Wind Block Island Delaware Massachusetts Rhode Island Il $100
Type of Resourc Resource Low Technology Municipal Solid Waste Resources for Renewable Generation in VA $/MWH Challenges/ Location, High O&M, Local Dispatc chable Non Disp patchable Renewab bles Low Low Low Med Med High Low Landfill Gas Poultry Waste Hydro Power Biomass Onshore Wind Offshore Wind Wave Power Cost of New US EIA Annu Combined Cycle ual Energy Outloo Gas Turbine k 2010 Fuel for these resources are waste products, highly limited and location specific. Location, Emission controls Location, Local Permitting, Environmental, NIMBY Permitting (10 year process) and Environmental Impact Fuel Supply, Transportation, Emissions Impact, Water NIMBY, Land Use, Constructability Military, Permitting, Hurricanes and Limited Global Experience in Offshore Wind Operations Technology and Permitting High Solar Land Area Requirement Low: 0-100 MW Med: 100-500 MW $0 $200 $400 * $/MWH Levelized cost of a resource does not differentiate the value of when generation occurs. Wind powers highest generation is at night, while Biomass operate during peak daytime hours. Estimates based on publicly available data.
Summary Study confirms minimal upgrades required to connect large scale offshore wind Optional transmission upgrades involve relatively modest cost increases for existing facilities and rights-of-way Transmission facilities from the offshore sites to interconnection ti substations ti through h urban areas still a challenge Offshore wind is the least cost-high volume renewable resource in Mid-Atlantic Less costly renewable resources are limited in resource availability Current prices for offshore wind 2 to 3 times higher than conventional generation