scaling up us offshore wind b u s i n e s s i n t e l l i ......scaling up us offshore wind analysis...

3rd Annual

US Offshore Wind 2018 Conference & Expo Boston Park Plaza Hotel June 7-8Your gateway to investments & partnerships in the US offshore wind industry

Get The Brochure Here

Ne EnergyUpdatevvEditable do not delete

Outlined

B U S I N E S S I N T E L L I G E N C E

vv

Scaling Up US Offshore Wind


Outlined

Scaling Up US Offshore WindB U S I N E S S I N T E L L I G E N C E

Analysis of New York, Massachusetts, California, New Jersey, Virginia and Maryland.

In association with the US Offshore Wind 2018 Conference June 7th and 8th, Boston Park Plaza Hotel

vv

Scaling up offshore wind is no easy task in the US. Differences from state to state are potentially as great as they are between countries in Europe. That said, lawmakers increasingly see offshore wind not only as a

source of cost-effective energy but also as a driver of job creation.

Against this backdrop, several US states are now making moves to encourage the development of offshore wind projects. This free whitepaper surveys the most significant examples, including New York,

Massachusetts, California, New Jersey, Virginia and Maryland.

In association with the US Offshore Wind 2018 Conference

http://1.newenergyupdate.com/LP=17076


http://events.newenergyupdate.com/offshore-wind/



3rd Annual




Outlined


vv


New York State’s offshore wind deployment requirements

Block Island, America’s f irst offshore wind farm, gave Rhode Island a lead in the race to commercialize offshore wind in the US.

Following on from the 30-MW, five-turbine Block Island Wind Farm, developer Deepwater Wind is now building a 90-MW, 15-turbine project called the South Fork Wind Farm that is scheduled to be operational by 2022.

The South Fork Wind Farm was proposed in response to New York State’s Reforming the Energy Vision (REV) clean energy initiative but was not primarily about moving to clean generation, says Thomas Falcone, CEO of contracting party the Long Island Power Authority (LIPA).

Instead, LIPA found that delivering power from the wind farm to the South Fork would reduce the cost of upgrades to the local transmission network while helping LIPA to meet New York’s clean energy goals. And since the project was over the horizon, there was little opposition from community groups.

“The fact that it met a particular need in the community helped it get started,” says Falcone, who notes that LIPA turned down three large combined-cycle gas turbine proposals in view of the plummeting cost of renewables.

The New York State Energy Research and Development Authority (NYSERDA) is keen to make sure the momentum of these early projects is not lost.

Greg Matzat, Senior Advisor at NYSERDA, says the authority is undertaking 23 studies, from multi-beam sonar surveys to sediment imaging maps, to make life easier for developers.

NYSERDA has also been active in looking at how the US Merchant Marine Act of 1920, or ‘Jones Act’, might affect offshore project costs.

The Jones Act states that any vessel engaged in transporting goods or passengers between two points in the US must have a US flag, US ownership, and US construction.

This effectively restricts US offshore wind to using nationally manufactured vessels, which haven’t been built yet. However, Matzat says NYSERDA research suggests this may not be a major challenge for the industry.

Evolution of Long Island peak load forecasts over time. Source: LIPA.



3rd Annual




Outlined


vv


“In our installation vessel study, we’ve undertaken a concept design, received multiple cost estimates from U.S. shipyards and presented a business case that shows building a vessel given the project pipeline developing here is all very doable,” he says.

The finding bodes well for offshore wind as New York State aims to meet REV 2030 targets including a 40% reduction in greenhouse gas emissions, from 1990 levels, and the procurement of 50% of electricity generation from renewables.

Another REV target, of a 23% decrease in energy consumption in buildings from 2012 levels, is contributing to a flattening of power demand in areas such as Long Island. That is not expected to act as barrier to offshore wind industry growth, though.

“We are working together to create a large-scale regional market and we are very, very encouraged,” says Liz Gordon, Director of the New York Offshore Wind Alliance, an advocacy group.

The Alliance is pushing actors such as NYSERDA, LIPA and the New York Power Authority to commit to an annual procurement schedule, with a financeable offtake mechanism, 20-year contracts and clearly defined contracting entities, from next year.

Gordon is optimistic about the outlook. “I think the political momentum has shifted,” she says.

The NYSERDA view on offshore wind

New York’s commitment to offshore wind has been underscored by the state’s top clean energy authority.

Offshore wind is “going to be central” to state’s efforts to cut greenhouse gases, says Alicia Barton, President and CEO of the New York State Energy Research and Development Authority (NYSERDA), New York’s large-scale renewables procurement agency.

NYSERDA plays a key role in directing funding from financing bodies such as the Clean Energy Fund, which aims to help deliver over $39 billion in customer bill savings over the next decade, and the NY Green Bank, the largest green bank in the US.

While much of New York State’s Reforming the Energy Vision (REV) involves solar, the state is also looking to procure around 2.4 GW of offshore wind by 2030.

“We know we have a great resource,” Barton says. “We think there’s at least 40 GW of potential there and it’s all located close to where it’s needed. We’ve got a great resource just where we need it.”

NYSERDA aims to publish a full offshore wind masterplan “before the end of the year,” she says, but is already committed to releasing as many details as possible when they become available. “We’re generating the basis for good, sound decision-making,” Barton claims.



3rd Annual




Outlined


vv


The Massachusetts pathway to 1.6 GWMassachusetts is hot on New York State’s heals in efforts to develop a commercial-scale offshore wind sector.

In August, in response to the state’s clean energy RFP, Deepwater Wind proposed Revolution Wind, a utility-scale offshore wind farm paired with an energy storage system. This project would represent the world’s largest offshore wind and battery storage pairing.

While the state has yet to install a single turbine offshore, last year it mandated utility firms Eversource, National Grid and Unitil to procure 1.6 GW of offshore wind by 2027.

The first request for proposals (RFP) under the procurement plan was issued on June 30 and drew interest from three developers: Dong Energy-owned Bay State Wind, Block Island project developer Deepwater Wind, and Vinyard Wind.

Each bidder must propose one project of at least 400 MW, which is the minimum level of generation Massachusetts is looking to procure in this round.

But projects of up to 800 MW will be accepted if they offer better value for money, and developers can also table proposals for as little as 200 MW.

“The Massachusetts RFP is a turning point for offshore wind in the US because it’s a European-style solicitation,” says Erich Stephens, CEO of Vineyard Wind, which is a joint venture between Copenhagen Infrastructure Partners and Iberdrola Group’s Avangrid.

“In some ways, it’s the first point where the US has been invited to the grown-up table,” he says, referring to the large scale of the projects being solicited and the competition among experienced, global players.

All three bidders hold leases awarded in 2012 by the US Bureau of Ocean Energy Management (BOEM) for a high wind-potential area off the coast of Martha’s Vineyard in Massachusetts.

The developers all began survey work last year after the procurement plan was announced, and original equipment manufacturers including GE and Siemens Offshore Wind Power are understood to be lining up to deliver turbines.

At the same time, Massachusetts state bodies that have been working to ensure that the current procurement plan can act as a springboard for the development of a home-grown offshore wind industry.

Early engagement with stakeholder groups including the fishing industry and native American tribes led the BOEM to trim a proposed offshore wind farm area by 60%, but the work is expected to streamline permitting going forward.



3rd Annual




Outlined


vv


New England offshore wind leases. Source: Massachusetts Clean Energy Center.

Similarly, Massachusetts has been laying the groundwork for offshore wind by carrying out wildlife surveys, collecting meteorological data, planning interconnection routes and constructing infrastructure facilities such as the New Bedford Marine Commerce Terminal with a uniform loading capacity of 20 metric tons per square meter. Deepwater Wind has announced plans to use the Marine Commerce Terminal for Revolution Wind’s final turbine assembly and staging operations.

The state is also completing a detailed engineering analysis of 18 waterfront locations that could be developed with industry investment for staging and manufacturing of components.

“Our objective is to make it as easy as possible for this industry to locate and do business in Massachusetts,” says Bill White, Senior Director for Offshore Wind Sector Development at the Massachusetts Clean Energy Center.

Aileen Kenney, Vice President of Permitting and Environmental Affairs at Deepwater Wind, says developers were expecting the work to result in a thriving offshore wind sector in Massachusetts. “In a few years, we’ll be competing for port space,” she says.



3rd Annual




Outlined


vv


Offshore wind development in CaliforniaCalifornia’s world-leading status as a renewable energy pioneer may not necessarily translate into an easy ride for offshore wind.

While there is undeniable demand and support for offshore wind generation, developers will also face major permitting hurdles and a highly competitive clean energy market, experts say.

On top of this, West Coast offshore wind will have to rely on floating platforms that are only now nearing commercial maturity. But while the absence of a floating offshore wind supply chain is a challenge for developers, it is not seen as a limiting factor.

The floating wind pioneer Statoil, for example, managed cut the cost of its spar-buoy floating foundation by 60% in going from a demonstration model to the full-scale commercial design being used at its Hywind project in Europe.

The company is now pursuing a cost reduction strategy that should see floating offshore wind coming in under $150 per MWh before 2025 and below $100 per MWh by 2030.

Based on technology roadmaps such as this, “the limiting factor in California is the siting and permitting process,” says Jim Lanard, CEO of Magellan Wind, which is working closely with Henrik Stiesdal, former CTO of Siemens Wind Power, who has just completed a successful tank-test of the Stiesdal TetraSpar floating substructure, based on industrialized manufacturing processes that claims to significantly reduce the cost of floating offshore wind.

“There are a lot of entities in the state, as well as the federal government, who are part of the permitting process,” explains Joan Barminski, Pacific Regional Director at the Bureau of Ocean Energy Management.

California renewable capacity, in MW, by resource type. Source: CEC.

“One of the things that has been true of California is the jealous guardianship of the ocean,” she notes.

Because of this, few observers foresee commercial-scale offshore wind becoming a reality in California before 2025.



3rd Annual




Outlined


vv


“I think that’s actually pretty aggressive when you look at the fact there are no leases out there yet,” says Knut Aanstad, President at Statoil Wind US.

Nevertheless, the California Energy Commission (CEC) recognizes that offshore wind has a high capacity factor and a complementary generation profile to that of solar, which is currently stressing the Californian grid.

For this reason, the CEC and other stakeholders are working to put in place suitable conditions for offshore wind development, for example by collecting data to inform planning efforts.

This work is not specifically directed at fulfilling the state’s upcoming Renewables Portfolio Standard (RPS) of 33% clean energy generation by 2020, since California is already on track to beat this target.

But developers feel confident the state will require offshore wind procurement to meet its next RPS target, of 50% by 2030. “Even though the market is ready to meet its obligations, additional energy will be needed to meet 50%,” says Alla Weinstein, CEO of Trident Winds, the company that was the first to submit an unsolicited lease request for a 1,000 MW site in California that lead to the creation of the Intergovernmental Task force at the request of Gov. Brown.

The emerging markets for US offshore windWhile New York, Massachusetts and California offer clear promise for offshore wind, they are not the only US states being eyed by developers. At least three others could claim to have a stake in the emerging race to create new projects.

One of them, New Jersey, is actually more of a laggard than a challenger. In 2010, the state launched an Offshore Wind Economic Development Act with the aim of creating 1.1 GW of offshore capacity.

At the time, the Act was arguably the most comprehensive support package for offshore wind anywhere in the US, but the promised funding instruments failed to materialize and Fisherman’s Energy, which was planning to build a 24 MW project, was unable to proceed.

It remains to be seen whether the state will now re-start moves to encourage offshore wind as the industry begins to take off in neighboring New York. In the meantime, other east coast states are moving ahead with plans of their own.

In Virginia, for example, Dominion Energy is joining forces with Denmark’s Dong Energy to create a 12 MW demonstration project off Virginia Beach.

The alliance comes after Dominion, working on its own, failed to meet US Department of Energy deadlines for the project and consequently missed out on $51M in funding. The project is now scheduled to start operating in 2020.

Finally, in May the Maryland Public Service Commission signed off support for two offshore wind farms that should deliver energy at $132 per MWh when entering operation in 2020.

The wind farms, owned by US Wind and Deepwater Wind’s Skipjack Wind Farm, are due to sum 77 turbines and were initially to be located from 12 to 21 nautical miles off the coast of Ocean City.

However, a proposal to move the plants to at least 24 miles away has cast doubt over the viability of the projects. Manufacturers and environmental groups have slated the amendment.



Click Here to secure the Super Early Bird $300 Discount

SECURE INVESTMENTS AND PARTNERSHIPS IN THE US OFFSHORE WIND INDUSTRY BOOM

Bryan Martin Chairman of the Board

Deepwater Wind Managing DirectorD.E. Shaw & Co.

Paul M. RichDirector, Project Development

US Wind, Inc.

David RowlandNew Business Director

IBERDROLA Renovables

Michael OlsenSenior Director

Statoil

Jim LanardCEO

Magellan Wind

Lars Thaaning PedersenCEO

Vineyard Wind

Chris WissemannUS Representitive

innogy

Katharine BondDirector, Public Policy

Dominion Resources Inc.

Gunnar GroeblerSVP Business Area Wind

Vattenfall

Lorry WagnerPresident

LEEDCo

Alla WeinsteinCEO and Founder

Trident Winds

EXECUTIVE SPEAKERS CONFIRMED FOR #USOW18

1. MARKET STRUCTURE AND EVOLUTION Listen to C-level offshore wind leaders answer the big questions about how the US offshore wind market going to shake out in terms of market structure; the road to <10 cents kWh; and funding structures unique to US offshore wind.

2. US OFFSHORE WIND DEVELOPMENT PIPELINE Analyze the US offshore wind development pipeline in a series of state by state panel discussions, providing you with up-to-date information about Wind Energy Areas, state plans and support mechanisms to help finance and develop new offshore wind projects.

3. PROJECT PLANNING & EXECUTION FOR COMMERCIAL DEPLOYMENT Hear the latest on FEDERAL offshore wind area lease planning activities; how to manage stakeholders and reduce time to permitting.

4. SUPPLY CHAIN, INFRASTRUCTURE AND VESSEL CAPABILITIES Learn how businesses and US states are taking steps to build the infrastructure & vessel capabilities to deliver reliable offshore wind projects.

5. COST REDUCTION TECHNOLOGY ROADMAP Discover which technologies will be required deliver the US project pipeline, including wind turbines and fixed/floating foundations; and what role technologies will play in reducing project LCOE in the US.

BUILD YOUR US OFFSHORE WIND BUSINESS PLAN AT THE USOW18 EVENT!

Andy GeissbuehlerAdvisory Director

BVG Associates

1000+attendees

40%offshore wind

developers

45+sponsors and

exhibitors

3RD ANNUAL

organized by

SECURE INVESTMENTS AND PARTNERSHIPSIN THE US OFFSHORE WIND INDUSTRY BOOM

in association with

Gold Sponsor

Silver Sponsor

Bronze Sponsor

Exhibitors

www.newenergyupdate.com/offshore-wind

scaling up us offshore wind b u s i n e s s i n t e l l i ......scaling up us offshore wind analysis...

Documents