Infrastructure and Offshore Wind: Delivering Energy for an Industry at Scale

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1 Infrastructure and Offshore Wind: Delivering Energy for an Industry at Scale

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3 Funded by a Team of Global Investors 3

4 The mid-atlantic region offers the most abundant and most attractive offshore wind resources in the country. The Brattle Group The Atlantic Ocean is a magnificent resource of untapped power to generate offshore wind energy, offering more than 60,000 megawatts (MW) of offshore wind potential in the relatively shallow waters of the outer continental shelf. 4

5 There are two ways to get offshore wind to shore: 1. Each wind farm builds its own alternating current (AC) line 2. Interstate backbone transmission line that serves a dozen or more wind farms 5

6 There are two ways to get offshore wind to shore: New York Pennsylvania New Jersey 1. Each wind farm builds its own AC line Washington DC Delaware Maryland 2. Interstate backbone transmission line that serves a dozen or more wind farms Virginia 6

7 Local roads or an interstate highway network? Atlantic Wind Connection: A Superhighway for Offshore Wind Energy Pennsylvania Washington DC Delaware Maryland Virginia New Jersey New York 10 year plan to build 350 mile subsea HVDC transmission system off mid- Atlantic states in 5 phases Enables up to 7,000 MW of offshore wind to be developed 12 or more miles off the coast Helps make offshore wind affordable Enables replacement of 5 coal plants 16 million tons of CO2 Is buildable because it can be permitted Makes the PJM grid more robust $43 billion in benefits from transmission and offshore wind Private venture 7

8 The Atlantic Wind Connection Makes Offshore Wind AWC offshore electric grid uniquely promotes large-scale offshore wind development scale sufficient to make a positive environmental impact, create thousands of jobs, and reduce the cost of offshore wind. Bigger AWC provides a platform on which offshore wind developers can interconnect their wind farms with significantly reduced siting, permitting and interconnection barriers, thus speeding the process of offshore wind development. AWC s offshore electric grid will have a limited number of landfall points and thus, reduce disturbance to sensitive coastal environments. Greener A 2010 Brattle Group study found that AWC will reduce the overall costs of developing nearly 7,000 MW of offshore wind farms by between $1.2 to $3 billion. Affordable 8

9 U.S. energy demand Mid-Atlantic Region 20% of U.S. Population Home to a substantial part of the U.S. population, the Mid-Atlantic region is heavily powered by electricity generated in the Midwest, which is imported to the East Coast states. 9

10 AWC transmission system components Pushing the technical envelope with a multi-terminal HVDC network Buried transmission cable Terrestrial converter stations Offshore converter hub platforms Courtesy of ABB 10

11 University of Delaware Study: Linking Wind Farms Smoothes Out Variability Study focus: 5 years of wind data 11 offshore weathermonitoring stations 2,500 km along East Coast Citation: Kempton et. al, Proceedings of the National Academy of Sciences (2010) Findings: 2 wind farms connected Within 1 hour, wind power output can go from zero to full power or vice versa. Wind power output is highly variable 11 wind farms connected Over 5 years, wind power output never drops to zero. Wind power output is uninterrupted. 11

12 AWC has filed an application with BOEM to obtain a grant for a right-ofway for the cable and hub sites 2011 Atlantic Grid Holdings LLC AWC consists of hubs and cable segments built in phases in concert with offshore wind expansion. This approach results in efficient development of a regional offshore backbone network and predictable interconnection costs for offshore wind projects. 12

13 Congestion and reliability: hidden costs for ratepayers Additional land-based transmission is not the best way to relieve congestion. It is difficult and expensive to implement and vulnerable to failure. Congestion is the inability to deliver power where it is needed. Eliminating congestion would provide huge value to consumers. For example, congestion costs $1 - $2 billion a year in NJ. An offshore backbone is more easily built, electrically separate, and more secure. 13

14 Grid reliability is essential; especially to industrial, commercial and military customers. Northeast blackout of 2003 estimated to cost about $7-$10 billion. AWC technology provides controllability of power flows. AWC can instantly direct power to grid connection points where it is most valuable or most needed to support reliability. AWC can respond to grid stresses like the loss of a large generator or transmission line. AWC can balance the variability of offshore wind with conventional generating resources. AWC can help re-start the grid after a blackout. Courtesy: ABB 14

15 The Atlantic Wind Connection Project: Delivering Energy for an Industry at Scale New York Pennsylvania New Jersey Washington DC Delaware Maryland Virginia 15

16 Kris Ohleth Atlantic Wind Connection (240)