offshore wind & transmission networks in southern new england

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Offshore Wind & Transmission Networks in Southern New England New England Roundtable Friday December 9, 2011 Bill Moore CEO Deepwater Wind

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Page 1: Offshore Wind & Transmission Networks in Southern New England

Offshore Wind & Transmission Networks in Southern New England

New England Roundtable Friday December 9, 2011

Bill Moore CEO Deepwater Wind

Page 2: Offshore Wind & Transmission Networks in Southern New England

•  Recent trends in OSW technology and

economics

•  Deepwater Wind

•  Importance of scale and innovative

transmission solutions for competitive

economics

Overview

2 © Deepwater Wind Holdings, LLC

Page 3: Offshore Wind & Transmission Networks in Southern New England

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1

2

3

4

5

6

2002 2003 2008 2009 2012

Turb

ine

Cap

acity

(MW

)

Horns Rev 1Denmark

Vestas V80 (80m)

NystedDenmark

Siemens 2.3(93m)

Lynn and Inner Dowsing

UKSiemens 3.6

(120m)

Alpha VentusGermany

REpower 5M (126m)

ThortonbankBelgium

REpower 6M (126m)

Increases in turbine nameplate capacity reduces installation costs on a $ / MW basis

Larger-Capacity Turbines

3 © Deepwater Wind Holdings, LLC

Page 4: Offshore Wind & Transmission Networks in Southern New England

Today’s offshore wind projects are much larger – both in number of turbines and in total capacity – than those of just a few years ago

Growth in European Project Sizes

4 © Deepwater Wind Holdings, LLC

60  MW

90  MW108  MW

110  MW194  MW

209  MW300  MW

184  MW

630  MW

0

50

100

150

200

250

2003 2005 2007 2009 2011 2013

Num

ber  o

f  Turbine

s

Year  of  Construction

Growth  in  Project  Nameplate  Capacity

Page 5: Offshore Wind & Transmission Networks in Southern New England

Foundations in deeper waters allow projects to be built cost-effectively on a gigawatt scale

Future Projects will be even Larger

5 © Deepwater Wind Holdings, LLC

Page 6: Offshore Wind & Transmission Networks in Southern New England

Improved Equipment Pricing • Larger orders of turbines, foundations and cable yield better unit pricing

Economies in Operations & Maintenance • Larger projects will incur roughly the same fixed O&M costs, which can spread such cost over greater capacity

Reduced Logistics and Installation Costs • Larger projects can justify the fixed costs of local fabrication, yielding much lower transportation costs.

Economies of Scale for Offshore Wind

6 © Deepwater Wind Holdings, LLC

Page 7: Offshore Wind & Transmission Networks in Southern New England

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§  Reduced visibility. Locate 13-20+ miles offshore to avoid controversy.

§  Proven technology. Use jacket foundations to build in deep water.

§  Stronger wind resource. Deep-water sites are more energetic.

§  Economies of scale. Larger projects with larger turbines will have lower unit costs..

§  Regional Energy Centers. Supply clean power to entire regions, not just individual states, with innovative transmission solutions.

Over the horizon wind

Page 8: Offshore Wind & Transmission Networks in Southern New England

•  Siemens will supply the Block Island Wind Farm with its latest purpose-built offshore turbine

•  6 MW (67% larger than 3.6 MW) + 154m rotor (44% larger than 107m)

•  First deployment in the US and only the second in the world

•  Higher output means lower unit cost of energy – fewer turbines installed for the same power output

•  Direct drive = 50% fewer rotating parts = lower maintenance costs + greater reliability

Siemens 6MW x 154m dd for Block Island

© Deepwater Wind Holdings, LLC

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Page 9: Offshore Wind & Transmission Networks in Southern New England

•  Three types of market needs: 1.  Intermittency Balancing - -

providing access to addition resources to firm wind power

2.  Multi-Market Distribution - - providing multiple markets with access to a utility scale wind farm

3.  Cost Effective Delivery - - minimizing transmission cost

•  Deepwater’s Block Island Transmission System provides balancing for our Block Island Wind Farm: –  Exports power to mainland when

wind farm produces more than Block Island needs

–  Imports power from mainland when wind farm (rarely) produces less than Block Island needs

Transmission must be Designed to meet Market Need

© Deepwater Wind Holdings, LLC

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Page 10: Offshore Wind & Transmission Networks in Southern New England

Offshore Wind is Important for New England

Offshore wind is the renewable resource closest to the region’s population and electricity demand centers.

The south of New England has more population and generation than the north

10 © Deepwater Wind Holdings, LLC

Southern New England has more aggressive RPS targets than Northern New England.

Page 11: Offshore Wind & Transmission Networks in Southern New England

•  “NE – LI Connector” – A network providing access to multiple markets

•  Multiple buyers = larger scale project = lower unit cost of supply

DWEC 1 GW : a regional energy center in the AMI

11 © Deepwater Wind Holdings, LLC

Page 12: Offshore Wind & Transmission Networks in Southern New England

Reach multiple energy markets at lower unit cost • Scale Drives Costs

–  Build at 1GW size è lower $/MWH • Regional Procurement

–  Multiple states each receive smaller, cheaper allotment of much larger, more efficient “regional energy center”

Multiple grid interconnect points in adjacent RTOs •  Improve grid reliability • Exploit price arbitrage between markets • Reduce single-point interconnection risks

12 © Deepwater Wind Holdings, LLC

Why networks?

Page 13: Offshore Wind & Transmission Networks in Southern New England

Commercial Realities • Offshore wind will succeed in NE only with lower pricing

Dominance of Scale Economies • Technical change in design of WTGs and HVDC systems è clear cost advantage for larger scale OSW projects

The Missing Link • Innovative transmission systems è GW-scale projects

Conclusions

13 © Deepwater Wind Holdings, LLC

Page 14: Offshore Wind & Transmission Networks in Southern New England

Questions?

Bill Moore [email protected]

PROPRIETARY AND CONFIDENTIAL

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