ATM RIWINDS RWEI 2008 v3

Presentation toMid-Atlantic/Southeast Regional Wind Energy Institute Annual Meeting: 

Presentation to Mid-Atlantic/Southeast Regional Wind Energy Institute Annual Meeting Presented by: Daniel Mendelsohn Applied Technology & Management November 13-14, 2008 RIWINDS: Rhode Island Offshore Wind Development

RIWINDS Program Objective: 

RIWINDS Program Objective Provide 15 Percent of Rhode Island’s 1,000 MW Annual Average Electric Energy Demand by 2012 Requires Approximately 450 MW of Wind Capacity 1.3 M MWh/yr

RIWINDS Program Overview: 

RIWINDS Program Overview Phase I: Feasibility Study (Siting) Stakeholder Review Special Area Management Plan (SAMP) Development Phase II: Project Development

Development ProcessTimeline: 

Development Process Timeline

Phase I: Feasibility Project: 

Phase I: Feasibility Project Technical Feasibility Economic Feasibility RIWINDS Wind Energy Siting Study Level I & Level II Screening Wind Speed Land Use Accessibility Electric Load Interconnection Environmental Permitting Site Energy Potential Turbine Performance Capital Costs Economic Analysis Financing O&M RECs $ / kWh Market Price Comparison Project Feasibility

Project Approach : 

Project Approach Define Indicative Project Classes 30 MW Offshore Project 200 MW Offshore Project Perform Screening Analyses using GIS and Geo-Referenced Database Determine Final Study Areas Estimate Project Performance and Cost Determine if Cost of RI Wind Energy is Competitive with Conventional Energy

RI Wind Resource Analysis: 

RI Wind Resource Analysis Wind speed at 80 meter hub height in m/s Source: Derived from AWS Truewinds Data Wind Turbine Components Commercially Available Equipment GE 3.6 MW Wind Turbine model Monopole foundation Standard Hub Height of 80m

Offshore Screening Analysis: 

Offshore Screening Analysis

Offshore Screening and Energy Results: 

Offshore Screening and Energy Results Total Potential Wind Energy Generation - Over 6 million MWh/yr - Onshore – Less than 2 % - Offshore – More than 98 % Offshore Results - 10 Areas Identified - Total of 98 Square Miles - Over 6.6 MMWh/yr Wind Energy Potential

Capital CostSummary: 

Capital Cost Summary Projected Wind Energy Costs Comparison to Wholesale Market Price Forecasts

Key Overall Findings: 

RIWINDS Goal of 15 % is Achievable 98 % of Wind Opportunity is Offshore 78 % of Offshore Wind Opportunity is in State Waters Cost of Wind Energy Appears to be Competitive with the Projected Market Value of Electricity Key Overall Findings

Stakeholder Review: 

Stakeholder Review Identification of stakeholders Towns State/federal regulatory community Conservation/environmental groups Resource/fisheries groups National Grid Stakeholder issues Identification of issues to be addressed in EIS and permitting process Differentiation of sites for assessment Stakeholder Issues Conflicts with Existing Use (e.g. Fisheries, Recreational…) Conflicts with Future Use Impacts on Environmental Resources Aesthetics Interconnection with the Power Grid Project Economics Benefit Sharing

Slide13: 

Site Ranking Combination of areas needed to attain RIWINDS goal of 1.3 M MWh/yr Considerations for ranking: - Energy cost - State vs. Federal Waters - Proximity to shore: + shorter transmission line -/+ visibility - Contiguous areas - Fishing and recreation

Slide14: 

Vantage Point: Black Rock Visualization – Area J & K Leftheri Pavlides : RI Wind Power Project Director, Michael Harper, Daniel Perri, Antonio Migliaccio, Erin Gibbons

Special Area Management Plan: 

Special Area Management Plan Define Use Zones For Rhode Island’s Offshore Waters Regional Form of Ocean Governance Control of Projects in Offshore Environment Follow State and Federal Regulatory Framework for Offshore Alternative Energy Development Coastal Resource Management Council and Univ. of Rhode Island in Coordination with RIDEM, USACOE, MMS Project Started Aug. 1, 2008 2 Year, $3M Study Development Areas To Be Identified After Year 1

SAMP Study Area: 

SAMP Study Area

Ocean SAMP: 

Ocean SAMP The Planning Process – Mapping exercise of existing uses and critical resources/transportation zones – Site Selection Screening Criteria – Conflict Analysis Develop for Public Review – Ocean Zoning Map – Regulatory program for project development – Regulatory program for resource protection – Management Document

Ocean SAMP: 

Ocean SAMP The Result: Pre-selected sites Environmental accountability Public and government support Permitting predictability Similar successful model UK Crown Estate for Renewable Energy Consistent with proposed legislation to amend the CZMA for renewable energy

Ocean SAMP - Status: 

Ocean SAMP - Status TECHNICAL PROGRESS Side scan and sub-bottom survey off the south and southwest coast of Block Island complete, data processing in progress. (10 day, R/V Endeavour cruise). Summary of large scale coastal geology mainly complete. Comparison of AWS True Winds to coastal observation stations mainly complete. Analysis of AIS data performed with comparisons to USCG designated shipping lanes, etc complete. Review of jacket based offshore wind structures in progress Extreme wave analysis complete for site off Block Island Discussions in progress about coordinating meteorological tower siting and operation with regional IOOS initiatives (MARCOOS, NERACOOS)

Ocean SAMP - Status: 

Ocean SAMP - Status COORDINATION PROGRESS First SAMP stakeholder meeting held Meeting with fishing community held. Coordination continues with US Army Corp and MMS Tier #1 screening in progress Tier 1 Screening: “Deal breaker" analysis, i.e. no possibility for tradeoffs (e.g. can't put a wind farm in the shipping lanes) Tier 2 Screening: will be conflict resolution type analysis (e.g. fishing vs wind farm, etc).

Phase II: Project Development: 

Phase II: Project Development Rhode Island Energy Independence 1 Development RFP Issued Apr, 2008 Generate >15% of RI Electric Energy Preferred Focus on Areas J,K, but Coordination with SAMP State Will Support Project Regulatory Requirements Coordination With Stakeholder Group

Phase II: Project Development: 

Phase II: Project Development Focus on Low Energy Cost and Fulfillment of State RPS – 16% RE By 2020 State Developing Long Term Contract Mechanism for RE Purchase Distribution Companies Power Authority RI Municipals Participation 7 Bidders Submitted Proposals Deepwater Wind Selected Sept, 2008 Agreement under Negotiation

Challenges: 

Immature Status of U.S. Offshore Wind Market Insufficient Electric Transmission System Capacity Financing in De-regulated New England Electric Market (i.e. Long Term Power Contracts to Finance Projects are Not Currently Available) Public Acceptance is Critical State/Federal Permitting Coordination Financing in Current Market Challenges Wind Energy Offers Stable and Predictable Prices and Environmental Benefits Offshore Wind Offers Opportunities for Business Development Available State and Federal Financial Incentives (i.e., PTCs, RECs, CREBs) and Opportunities