09-02-2012_plenaire%20vergadering_4aprojetatlanticwindconnection

Atlantic Wind Connection

Users GroupBrussels, 09 February 2012

Julien D’Hollander

09.02.2012 – 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 ofinterconnector 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;

09.02.2012 – Julien D’Hollander 3


7


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 broadrange of sectors (import/export in textile, food, chemicals,energy, metals, finance, etc. )

• Atlantic Grid Investment: founders of the AWC project, owned by Transelectwhich is a transmission developer (12.000 miles line inmanagement or sold).


Atlantic Grid Investment sold its 10% to Elia for thefirst segment and 5% for the four last segments.



AGENDA



• Conclusion

6

Why invest in a US regulated transmissionconnection?

EU electricity high voltage landscape will drastically change in the coming years

2010 2050



today


Why invest in a US regulated transmissionconnection?Positioning the Elia Group as “the” leader for E-Highways in Europe

• EU target = 20% of renewables.

• ENTSO-E: RES capacity will increasefrom 288GW to more 500GW in 2020;

• German, Swiss, Italian change innuclear role leading to swifter RESimplementation;

• EC Priority corridors identifyingoffshore grids in North & Baltic sea’s.

* European Commission study: 2020 and beyond


The AWC project is an opportunity for Elia delivering a competitiveedge in terms of knowledge, experience and potential return

9

Offshore wind is theonly local, accessible,renewable energyresource that isavailable at a largescale.

NREL study shows 64GW potential offshorewind from just the 4 Mid-Atlantic States.



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 thenational effort to achieve 54GW of offshore wind energy capacity by 2030 (interim 10GWby 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;

An opportunity – the AWC project


Connection up to 7.000MW offshore wind park on 12 substations

11

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;

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)

An opportunity – the AWC project


HVDC backbone with 2.000MW between 4 east coast states andguaranteeing a reliable and stable offshore wind energy integration

Attractive incentives granted by the FERC

12


AGENDA



• Conclusion

13

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.

Conclusion


09-02-2012_plenaire%20vergadering_4aprojetatlanticwindconnection

Documents

julien dhollanderagenda

bil us

julien dhollander09

us renewable energy

segments elia

potential return9offshore

us east coast

midatlantic states