Offshore Wind Opportunities and Challenges

1. Offshore Wind Opportunities and Challenges Capitol Hill Ocean Week Coastal States Organization June 13, 2006 Greg Watson Massachusetts Technology Collaborative watson@masstech.org

2. The Need for Change … and Choice • Global Population Growth • Energy Consumption+50% by 2020 • Fossil Reserves ? • Environmental Impact? • Alternatives ?

3. Current State of Offshore Wind

4. Offshore Projects (2004) 160 MW Offshore Farm – Horns Rev, North Sea

5. 11,455 MW Proposed Offshore Through 2010

6. Proposed US Offshore Activity • Cape Wind • 420+ MW Nantucket Sound (Massachusetts) • Long Island Power Authority • 140MW off the coast of Jones Beach (New York) • Winergy LLC • Applied for numerous permits along East Coast • Southern • To determine if offshore wind power is a feasible renewable energy option for the Mid-Atlantic. The project concept is expected to include three to five wind turbines that could generate 10 megawatts of power,. • Venice, Louisiana • Wind Energy Systems Technology and GT Energy have signed an agreement to develop up to 500 MW of offshore wind power in the Gulf of Mexico, utilizing decommissioned oil drilling platforms. • Corpus Christi, Texas • Alternative Energy Institute and the General Land Office of Texas (GLO) teamed up to install a wind monitoring station on offshore oil platform.

7. Why Go Offshore? Windy land is not always near load centers Grid is not set up for long interstate electric transmission Load centers are close to the ocean US Offshore Wind Resource Graphic Credit: Bruce Bailey AWS Truewind

8. What Does Industry See In Offshore Wind? • A $ Multi-B Industry over the Next 10 Years • Remarkable Growth: 15-25% CAGR • Cost of Electricity Approaching 5-6¢/kWh • Higher Capacity Factors • Less Turbulence and Turbine Fatigue • Larger Machines Sited Near Load Centers • Global Customer Base • Favorable Incentives (RPS, PTC)

9. U.S. Offshore Wind Energy Resource Exclusions 0 to 5 nm – 100% 5 to 20 nm – 67% 20 to 50 nm – 33% Accounts for avian, marine mammal, view shed, restricted habitats, shipping routes & other habitats. Resource not yet assessed

10. “…there may be, conservatively speaking, more than 100 gigawatts of capacity just off of New England” David Garman, Acting Under Secretary, U.S. DOE The Energy Daily, August 30, 2004 New England Offshore Wind Resource

11. Mid-Atlantic Offshore Wind Resource

12. West Coast Offshore Wind Resource

13. US Continental Shelf

14. Other Factors • Factors in the environment that can affect design, performance, or operation • External Conditions most relevant to offshore wind turbines: • Wind • Waves • Ice • Others: currents, temperature, salinity, marine growth, lightning

15. Offshore Wind Technology Challenges • The Key Differencesbetween onshore and offshore • Hydro-dynamic loads + wind loads • Highly corrosive salt-laden air • Dehumidification required to prevent equipment deterioration • Remote, difficult access - autonomous operation essential • Visual aesthetics and noise pollution less problematic than on land • Turbine lower % of costs offshore

16. Turbines

17. Electrical Pitch Drives Doubly-Fed Generator Main Shaft & Bearing Gearbox Epoxy-Glass Composite Blades Transformer & Electrical Power ElectronicConverter Wind Turbines • GE 1.5 MW • 77 M Rotor Diameter • 50-100 M Tower • 98% Availability • Speed 10-20 RPM • Variable Pitch

18. Turbine Size

19. 10 MW Turbine Concept • 180 m rotor diameter • Downwind 2 blade machine • Flexible compliant blades • Flow controlled blades • High rpm/tip velocity > 100 m/s • Gearless direct drive • Space frame structure • Multivariable damping controls • 40 m water depth foundation • Hurricane ride-thru capability Can we build it? Do the economics make sense?

20. Current Foundation Technology

21. Floating Platforms Potential for floating wind energy is going to depend whether the current cost disadvantages can be overcome by the development of innovative solutions to constructions and installation

22. Location: State/Federal Waters • General Rule: • State Waters: up to 3 nautical miles • Federal Waters: > 3 nautical miles • (Submerged Lands Act of 1953, 43 U.S.C. 1301 et seq.)

23. Environmental Siting Concerns • Migratory birds • Endangered species • Migratory bats • Marine Mammals • Fish Habitat Displacement

24. Economic Siting Issues • Visual Impacts • Property Values • Tourism • Commercial and recreational boating • Commercial and recreational fishing • Aviation/radar

25. Collaborative Approach Required to Develop Resource Many Technology Needs Offshore wind energy calls for a broad-based, focused, coordinated approach to planning, research and development, and policy development. Many Stakeholders

26. Offsh0re Wind Collaborative • A principal focus is to broaden the wind resource potential through exploration of deep water and far offshore technologies. • Goal: To overcome the barriers to generating and delivering electricity from U.S. offshore wind farms at a competitive cost by the beginning of the next decade.

27. Process • Consult with key parties to identify key issues and obstacles to a sustainable offshore wind industry. • Develop a Framework that identifies opportunities to take advantage of and barriers to overcome that will lead to successful offshore wind development in the US. • Design a Organizational Development Plan that recommends the organizational structure, funding levels and sources, and human resources necessary to implement the Framework and realize its potential.

28. Collaborative Participants Government • MMS - lead regulatory agency • Coast Guard and Army Corps of Engineers • EPA, NOAA, Fish and Wildlife Service • Department of Energy • State and Local Jurisdictions Industry • Wind manufacturers and developers • Offshore oil/gas, general marine • Utility sector Research Community • National Laboratories • University and research institutes • International liaison / coordination

29. Early 2004: Massachusetts Technology Collaborative, General Electric, DOE agreed to explore collaboration for development of U.S. offshore wind energy Early pilot research Developed “Framework document” based on broad stakeholder input Mid 2005: Framework released addresses challenges and outlines for action: Technology Development Environmental Compatibility Economic and Financial Viability Regulation and Governmental Policies Leadership Coordination Framework Developed

30. Offshore Wind Collaborative (OWC) Expected Outcomes Stimulate Marine Industry • Expand viable resource base into deeper waters • Expand ability to site beyond the horizon • Inter-disciplinary, multi-sector partnerships to reduce cost • Establish US technological & operational leadership • Include wind as a part of the ocean management dialogue • Develop industry in a way that improves our nation’s marine resources Protect the Ocean and Environment

31. Greg Watson Massachusetts Technology Collaborative watson@masstech.org