Atlantic Wind Connection Users Group Brussels, 09 February 2012 Julien D Hollander
AGENDA What is the Atlantic Wind Connection Project Why invest in a US regulated transmission connection? Conclusion 2
The Atlantic Wind Connection project What is The Atlantic Wind Connection (AWC) project? Transmission backbone of +/- 600Km on the US East Coast, from New Jersey to Virginia; State of the Art technologies Multi terminal HVDC (technologies of the E-highway); Enabling the connection of +/- 7.000MW offshore power and/or playing the role of interconnector for 2.000MW (reducing congestion); Total cost of 5 bil US$ split in 5 Segments with the first (A) from New Jersey to Delaware; Commissioning of the 5 segment is foreseen in 2020 while segment A is foreseen in 2017; Connected to PJM s network; Incentives of the project granted by the federal US regulator FERC; And Elia? Elia has acquired 10% of the first segment of the Atlantic Wind Connection and 5% of the four last segments; Elia has negotiated a long term consultant contract for the project; 3
The Atlantic Wind Connection project 7 4
The Atlantic Wind Connection project Shareholders Google: second world s most valuable brand: a major investor in renewable energy Good Energies: investment fund in the renewable energy, part of COFRA Group (C&A) Marubeni: major conglomerate, industrial goods & services in a broad range of sectors (import/export in textile, food, chemicals, energy, metals, finance, etc. ) Atlantic Grid Investment: founders of the AWC project, owned by Transelect which is a transmission developer (12.000 miles line in management or sold). Atlantic Grid Investment sold its 10% to Elia for the first segment and 5% for the four last segments. 5
AGENDA What is the Atlantic Wind Connection Project Why invest in a US regulated transmission connection? Conclusion 6
Why invest in a US regulated transmission connection? EU electricity high voltage landscape will drastically change in the coming years 2010 2050 7
Why invest in a US regulated transmission connection? today 8
Why invest in a US regulated transmission connection? Positioning the Elia Group as the leader for E-Highways in Europe EU target = 20% of renewables. ENTSO-E: RES capacity will increase from 288GW to more 500GW in 2020; German, Swiss, Italian change in nuclear role leading to swifter RES implementation; EC Priority corridors identifying offshore grids in North & Baltic sea s. The AWC project is an opportunity for Elia delivering a competitive edge in terms of knowledge, experience and potential return * European Commission study: 2020 and beyond 9
Why invest in a US regulated transmission connection? Offshore wind is the only local, accessible, renewable energy resource that is available at a large scale. NREL study shows 64 GW potential offshore wind from just the 4 MidAtlantic States. 10
An opportunity the AWC project Why AWC project is an opportunity in the US? 1. US renewable energy objectives The offshore wind strategic work plan of the Department of Energy (DOE) lays out the national effort to achieve 54GW of offshore wind energy capacity by 2030 (interim 10GW by 2020); Mid Atlantic states have 15GW target in terms of installed renewable energy capacity; Today, 0 MW offshore installed capacity in the US; Expensive and lack of public acceptance to bring Green energy from Midwest; Several offshore wind projects are in development phase Several Coastal States highly need creating new jobs with green industry as target; Connection up to 7.000MW offshore wind park on 12 substations 11
An opportunity the AWC project Why AWC project is an opportunity in the US? 2. Structural need for an interconnection Heavily congested area in the mid Atlantic zone (control area of PJM); Planning issues (almost no land permits anymore) for electrical transmission infrastructure; Mid Atlantic zone needs to enforce its electrical reliability and stability; HVDC backbone with 2.000MW between 4 east coast states and guaranteeing a reliable and stable offshore wind energy integration 3. Need of a front runner project The renewable offshore energy is an all brand new activity in the US (federal and states support); No project equivalent in the US; Necessity to offer guarantees and incentives for shareholders (American Market) Attractive incentives granted by the FERC 12
AGENDA What is the Atlantic Wind Connection Project Why invest in a US regulated transmission connection? Conclusion 13
Conclusion Main Reasons for Elia to participate in the Atlantic wind project : develop Elia s expertise in partner s projects for future EU offshore grids; position the Elia group as a leader for future European Highway development; develop consultancy in the US and other countries. Benefits for Elia s German and Belgian customers and community Elia will develop its know-how and expertise (technology, backbone project development, purchasing, supply chain risks ) for its future European projects; Reinforce the TSO position on the supergrid; AWC = No costs and no risks for the customers and the community. 14