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Offshore Wind Energy: How much will it cost, CAN it cost?

Opening Plenary Session Virginia Offshore Wind Conference 2011 Virginia Beach, VA 22 June 2011. Offshore Wind Energy: How much will it cost, CAN it cost?.

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Offshore Wind Energy: How much will it cost, CAN it cost?

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  1. Opening Plenary Session Virginia Offshore Wind Conference 2011 Virginia Beach, VA 22 June 2011 Offshore Wind Energy:How much will it cost, CAN it cost? George HagermanVCERC Director of Research Virginia Tech Advanced Research Institute900 North Glebe RoadArlington, VA 22203Email: hagerman@vt.eduPhone: 703-387-6030

  2. How much will offshore wind energy cost?

  3. How much will offshore wind energy cost? Is offshore wind reallythis far off the chart? Industrialrates

  4. U.S. Energy Information Administration Estimates Disagree with U.S. Wind Market Trends

  5. VCERC Modeled Capital Costs Comparedwith European Project Data for Major Cost Centers London Array I630 MW Siemens SWT-3.6-120 Global Tech I400 MW Multibrid M5000 Thanet300 MW if fabricated in Hampton Roads Lincs270 MW Based on MTH announced contract value in March 2010 Lincs270 MW Based on MTH max steel weights if fabricated in Hampton Roads

  6. US Projects Racing to be First are Disadvantagedby Higher Manufacturing Labor Costs in Europe Manufacturing wage data published by U.S. Bureau of Labor Statistics on 22 Oct 2009(www.bls.gov/fls/prodsupptabletoc.htm, Table 8. Hourly compensation, U.S. dollar basis) Cost breakdown and labor/material ratios from Dong Energy presentation dated 11 Aug 2009 (www.energirike.no/pub/56/filer/Dong%20-%20EnergiRikekonferancen%20perhp%202009.pdf)

  7. VCERC Results Compared withRecent National Academy of Sciences Study VCERC: ~10-12 ¢/kWh VCERC: ~06-07 ¢/kWh Coal costs now increasing; offshore wind would increase price stability of Virginia’s energy supply portfolio; see backup slides VCERC: ~11 ¢/kWh VCERC: ~13 ¢/kWh

  8. Ratepayers Must Consider Price Stabilityand the Potential for Future Fuel Price Increases

  9. Coal is No Longer Stably Priced

  10. Thank You! VCERC Offshore Wind Studies Final Report:www.vcerc.org/report.htm Any questions? Email:hagerman@vt.edu

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