Offshore Wind: Global Progress in the Past Year

1. Offshore Wind: Global Progress in the Past Year Electric Power 2012 Dr. Allan R. Hoffman/U.S. Department of Energy 16 May 2012

2. Outline of Presentation • Why offshore wind and how big is the resource? • Statistics from one year ago • Current statistics • The USG offshore wind program • Concluding remarks

3. Why Offshore Wind? • Offshore Wind (OSW) has the potential, when widely deployed, to address two critical issues facing the nation • the need for new electrical energy sources that are • carbon-free • renewable • indigenous to the U.S. • the need to stimulate the economy and create new jobs

4. Why Offshore Wind? (continued) • OSW power plants can produce up to 50% more electricity than onshore cousins due to higher and steadier wind speeds • Proximity to major U.S. load centers with high average electricity costs • 50% of Americans live within 50 miles of a coast • Other advantages over onshore locations • allows deployment of larger wind turbines • reduced visual impacts • less turbulence • lower noise constraints (allowing higher rotor speeds)

5. How Big is the Resource?

6. How Big is the Resource? (continued) • OSW is a large, broadly distributed, U.S. energy resource • thirty U.S. states border an ocean or Great Lake • NREL-estimated gross resource at 90m hub height out to 50 nm • wind speeds > 7 m/s: ~3,000 GW • wind speeds > 8 m/s: ~4,000 GW • U.S. installed generating capacity: ~1,000 GW • The global OSW resource is abundant, with the U.S. potential ranked second only to China’s • European Union countries have been first movers and currently lead the world in installed offshore wind power

7. Statistics From One Year Ago • Installed OSW capacity (end of 2010): • European Union: • 2.9 GW in 45 wind farms and 9 countries • 1,136 turbines • foundations: 65% monopiles • average wind farm size: 155 MW • average water depth: 17.4 m • Average distance to shore: 27 km • China: • first OSW wind farm connected to grid: 3 MW x 34 = 102 MW • ten other individual OSW turbines in operation • size range: 1.5-2 MW

8. Current Statistics • Installed OSW capacity (end of 2011): • European Union (overall): • 3.8GW in 53 wind farms in 10 countries • 1,371 turbines • foundations: 75% monopiles; 21% gravity-based • two full scale grid-connected floating turbines (2-3MW) • average wind farm size: 200 MW • average water depth: 22.8 m • average distance to shore: 23.4 km • this is a decrease from 2010 • average distance for wind farms under construction: 33.2 km

9. European Union :Top Operational Wind Farms • Rated by nameplate capacity: • United Kingdom • Walney (phases 1 & 2): 367 MW • Thanet: 300 MW • Linn & Inner Dowsing: 194 MW • Robin Rigg: 180 MW • Gunfleet Sands: 172 MW • Ormonde: 150 MW • Kentish Flats: 90 MW • Barrow: 90 MW • Burbo Bank: 90 MW • Rhyl Flats: 90 MW

10. European Union:Top Operational Wind Farms (continued) • Denmark • Horns Rev II: 209 MW • Rodsand II: 207 MW • Nysted: 166 MW • Belgium • Bligh Bank: 165 MW • Netherlands • Princess Amalia: 120 MW • Egmond on Zee: 108 MW • Sweden • Lillgrund: 110 MW • Germany • Alpha Ventus: 60 MW • Baltic I: 48 MW

11. Top Operational Wind Farms (continued) • China: • Donghai Bridge: 102 MW • LongyuanRudong Intertidal: 131.3 MW

12. Top 10 OSW Farms Under Construction • United Kingdom: • London Array (Phase I): 630 MW • Greater Gabbard: 504 MW • Sheringham Shoal: 315 MW • Lincs: 270 MW • Teesside: 62 MW • Germany: • TrianelBorkum West II: 400 MW • BARD Offshore I: 400 MW • Denmark: • Anholt: 400 MW • Belgium: • Thortonbank Phase 2: 148 MW • China: • DatangLaizhou III: 50 MW

13. Top 10 OSW Farms Proposed • United Kingdom: • Dogger Bank: 9,000 MW (13,000 MW potential) • Norfolk Bank: 7,200 MW • Irish Sea: 4,200 MW • Hornsea: 4,000 MW • Firth of Forth: 3,500 MW • Bristol Channel: 1,500 MW • Moray Firth: 1,300 MW • Triton Knoll: 1,200 MW • Sweden: • Blekinge Offshore: 2,500 MW • South Korea: • Korea Offshore: 2,500 MW

14. The USG Offshore Wind Program • “A National Offshore Wind Strategy: Creating an Offshore Wind Energy Industry in the United States” • http://www1.eere.energy.gov/wind/pdfs/national_offshore_wind_strategy.pdf • announced jointly by DOE and DOI February 2011 • goals: • 2020: 10 GW installed @ $0.10/kWh • 2030: 54 GW installed @ $0.07/kWh • Department of the Interior • critical partner – has primary jurisdiction over OSW projects in federal waters • announced “Smart from the Start” initiative November 2010 • To facilitate project siting, leasing , construction off the Atlantic Coast • http://www.whitehouse.gov/blog/2011/02/10/smart-start-building-clean-energy-future

15. The USG Offshore Wind Program (continued) • DOE actions in support of the Strategic Plan: • February 2011: announced release of three solicitations (up to $50.5 over five years): • Technology Development (up to $25M over 5 years) -support development of innovative wind turbine design tools and hardware • Removing Market Barriers (up to $18M over 3 years): - support baseline studies and targeted environmental research to characterize key industry sectors and factors limiting the deployment of offshore wind. • Next-Generation Drivetrain (up to $7.5M over 3 years): - fund development and refinement of next-generation designs for wind turbine drivetrains

16. The USG Offshore Wind Program (continued) • DOI actions in advance and support of the Strategic Plan: • June 2010: Interior and 10 East Coast states form OSW Consortium • to promote development of OCS wind resources along East Coast • ME, NH, MA, RI, NY, NJ, DE, MD, VA, NC • February 2011: identified four mid-Atlantic Outer Continental Shelf Wind Energy Areas as part of ‘Smart from the Start’: • Delaware (122 square nautical miles) • Maryland (207 ) • New Jersey (417) • Virginia (165) • April 2012: released draft EIS for assessing OSW resource potential in Mid- and South-Atlantic planning areas

17. The USG Offshore Wind Program (continued) • New Funding Opportunity Announcement by DOE(1 March 2012): • six-year $180M initiative that seeks applications for Research Addressing Market Barriers • reflects increased focus in Wind Power Program on OSW • Includes $20M in FY2012, to fund up to four OSW projects designed to • drive down cost of OSW farms • reduce concerns about ease of permitting, offshore installations, grid integration • reassure financiers about value of investments • Letters of Intent were due March 30th • applications due May 31st

18. Atlantic Wind Connection (proposed) • private sector initiative • offshore high-voltage direct-currenttransmission line off the mid-Atlantic Coast, capable of serving up to 7,000 megawatts of power from OSW farms • December 2011: DOI completed internal review of AWC’s Right-of-Way application, prior to its release for public review • Project, if deployed, would span 300 miles of state and federal waters from NJ/NY to VA

19. Concluding Remarks • A year ago I concluded a talk on OSW with following words: - offshore wind is the most important emerging renewable energy technology - it can, and must, become an important part of the U.S. energy picture and its future economic growth - the U.S. is well behind the Europeans and China at this early stage of OSW development and deployment - nevertheless, given the U.S. resource base, our ability to innovate, and our broad and excellent manufacturing base, we can eventually play a major and even dominant role in OSW if we decide as a nation to do so. • These conclusions are still valid today, with the following caveats: • One year later the decision has been made to put increasing focus in DOE’s future Wind Power Program on OSW • DOE has committed $180M over six years ($20M in FY2012) to getting OSW equipment in the waters off of U.S. coasts

20. Thank You Contact information: E-mail: allan.hoffman@ee.doe.gov Telephone: 202 /586-8302