Transcript The Evolution of Offshore Wind Energy in the U.S. Virginia`s Role in

The Evolution of Offshore Wind Energy in the U.S.⎯
Virginia’s Role in Achieving Energy Independence
“All of the Above” Energy Policy
Dirty/Fossil Fuels
Coal
Natural Gas
: 85% of total energy
production
Oil
Clean/Renewable Energy
Biofuels
Solar
Wind
Onshore
Offshore
“All of the Above” Energy Policy
Dirty/Fossil Fuels
Coal
Natural Gas
Oil
Clean/Renewable Energy
Biofuels
Solar
Wind
Onshore
Offshore
: hidden costs
economic
environmental
social
Hidden Costs of Dirty/Fossil Fuels
economic
National/Energy Security:
$1B/Day to Import Crude Oil
$67-83B/yr on Overseas Oil Security MissionsX
Federal Coal Subsidies & Benefit Payments
Estimated at $3.2-$5.4B/YR+
KY: $115MM/yr Coal Subsidies+
VA: $44.5MM/yr Coalfield
Employment Enhancement Tax Credit*
+ Mining
X
Coal, Mounting Costs: The Life Cycle Consequences of Coal
The Pew Project on National Security, Energy and climate
* Commonwealth Institute
Hidden Costs of Dirty/Fossil Fuels
environmental
Climate Change
Contributor: Methane & Carbon due to Mining-Related Land Disturbance:
$2.2B/yr
MTR
500 Appalachian Summits Removed Transforming 1.4mm Acres of Forest
and Burying 2000 Miles of Streams;
2500 miles of Polluted Streams in KY alone
Gulf Oil Spill
Air Pollution
Sludge, Slurry, and “Fly Ash” Ponds
1300 Coal Combustion Waste (“Fly Ash”) impoundments are adjacent to CoalFired Plants, receiving 130 Million Tons of Waste/YR
Hidden Costs of Dirty/Fossil Fuels
Social
100,000 U. S. Miner Deaths since 1900 +
200,000 More from Black Lung Disease
COAL: $345B/yr Health & Environmental Costs*
* harvard medical school survey released 2/17/11
“All of the Above” Energy Policy
Dirty/Fossil Fuels
Coal
: The Last Mountain
Natural Gas
: Gasland
Oil : FUEL
Clean/Renewable Fuels
Biofuels
Solar
Wind
Onshore
Offshore
: FUEL
: Gasland
The Last Mountain
SCALE
Distributed Generation
ROOFTOP SOLAR
MICROTURBINES
Community-Scale
BIOMASS
WIND: ONSHORE
U. S. Currently has 35GW of Onshore
Wind in Place and More on the Way
Klickitat County, WA
“Wind Power is an Economic Engine for a
Rural American Community” (YouTube)
Sherman County, OR
“Wind Blows in to a Patch of Oregon
Known for Its Unrelenting Winds” (NYT,
5/30/11)
SCALE
Distributed Generation
ROOFTOP SOLAR
MICROTURBINES
Community-Scale
BIOMASS
WIND: ONSHORE
Utility-Scale
SOLAR
2/23/10 BrightSource Energy
$1.4B Loan Guarantee to Build Some of the
World’s Largest Solar Plants
6/17/11 Blythe Solar Plant
“Construction Begins on World’s Largest Solar
Power Plant”
SCALE
Distributed Generation
ROOFTOP SOLAR
MICROTURBINES
Community-Scale
BIOMASS
WIND: ONSHORE
Utility-Scale
SOLAR
Wind: Offshore
Offshore Winds Are Stronger and
Steadier than Onshore Winds
Offshore Wind Loads are Closer to
Customers
Offshore Wind Energy has Existed commercially in
europe for nearly 20 Years
U. S. Could Have 20GW of Offshore by
2020 If It Made the Commitment To Do
So
OFFSHORE WIND
DOES NOT EMIT HARMFUL AIR POLLUTANTS, LIKE GREENHOUSE GASES AND MERCURY
WOULD REDUCE THE FINANCIAL RISKS ASSOCIATED WITH FOSSIL FUEL ENERGY
PRODUCTION
NEVER BEEN A WIND BLOWOUT
NO WIND MELTDOWNS
NOT A SINGLE WIND-MINING DISASTER
NO GROUND WATER CONTAMINATION FROM WIND FRACKING
NO CLEAN UP NEEDED FROM A WIND SPILL
U. S. Renewable Resources
SOURCE: DEPARTMENT OF ENERGY, NATIONAL RENEWABLE ENERGY LABORATORY
1953: Outer Continental Shelf Lands Act (OCSLA) enacted
1969: National Environmental Policy Act (NEPA)
1970: The Clean Air Act
1972: The Clean Water Act
1981: Congress enacts a moratorium banning offshore drilling for oil and natural gas
in the majority of the Outer Continental Shelf (OCS)
1990: President George H. W. Bush issues Presidential Directive supporting the 1981
offshore drilling ban
1998: President Bill Clinton extends the Presidential Directive against offshore drilling
through 2012
2005: Energy Policy Act of 2005 authorizes the Minerals Management Service (MMS)
to regulate alternative energy on the OCS including wind, wave, current, tidal, and
hydrogen generation sources.
2006: “An Inconvenient Truth” premieres
2006: Virginia Energy Plan creates the Virginia Coastal Energy Research Consortium
(VCERC) to serve as an interdisciplinary study, research, and information resource for
the Commonwealth on coastal energy issues with an initial focus on offshore winds,
waves, and marine biomass
2008: President George W. Bush lifts a presidential moratorium on drilling for oil and
natural gas on the OCS
2009: 2009 Virginia General Assembly streamlines regulatory process for small
renewable energy policy through passage of Permit by Rule (PBR)
2010:
March 31: President Obama proposes to open vast expanses of American coastlines
that would open up the eastern Gulf and parts of the Atlantic, including off the coast
of Virginia, to offshore oil and gas exploration ending a longstanding moratorium on oil
exploration along the East Coast from the northern tip of Delaware to the central coast
of Florida, covering 167 million acres of ocean
2010:
April 8: My 10-year-old son Louie, a Jack Russell Terrier, loses a 4-month battle with
lymphoma, heightening my awareness of carcinogens in our environment
April 20: Deepwater Horizon Oil Rig explodes and sinks off the Louisiana coast
June 8: U. S. Secretary of the Interior Ken Salazar and the governors of 10 East Coast
states (ME, NH, MA, RI, NY, NJ, DE, MD, VA, and NC) sign a Memorandum of
Understanding that formally establishes an Atlantic Offshore Wind Energy Consortium
to promote the efficient, orderly, and responsible development of wind resources on
the OCS. Salazar quoted as saying “By one estimate, if our nation fully pursues its
potential for wind energy on land and offshore, wind can generate as much as 20% of
our electricity by 2030 and create a quarter-million jobs in the process.”
June 18: Salazar renames MMS the Bureau of Ocean Energy Management,
Regulation, and Enforcement (BOEMRE)
June 19: EPA Administrator Lisa Jackson reports: "Three out of four city officials
expect that their use of clean energy technologies will increase in the next five years,
according to a survey from the U.S. Conference of Mayors. It's great to hear that local
leaders recognize that despite tough economic times, an investment in clean energy
technology is also an investment in job growth, in healthy communities and families
and in the future of our country."
2010:
October 6: Salazar signs the nation’s first lease for commercial wind energy on
the Outer Continental Shelf (OCS) 4.7 miles off the shore of Cape Cod, MA, with
Cape Wind Associates, LLC potential to meet 75% demand for Cape Cod,
Martha’s Vineyard, and Nantucket Island
October 12: Google (37.5% Equity Share “ES”), renewable energy investment
firm Good Energies (37.5% ES), Japanese trading company Marubeni Corporation
(15% ES), and Trans-Elect Development Company (10% ES), LLC, partner to
create the Atlantic Wind Connection (AWC) project an underwater transmission
“backbone” that will connect more than 6,000 MW of offshore wind to the
transmission grid
•350 miles of high voltage direct current (“HVDC”) lines
•New York City to Virginia
•$5B over 10 years in 5 phases to power 1.9mm HH
•Estimated construction start: 2013
•First phase operational: 2016
November 23: Salazar launches a “Smart from the Start” wind energy initiative
for the Atlantic OCS to facilitate siting, leasing, and construction of new projects
SMART FROM THE START
17-20 Agencies/Acts
8 years from application to permit
AGENCIES
Department of the Interior (DOI)
National Parks & Recreation
Fish & Wildlife
Department of Defense (DOD)
U. S. Coast Guard
Environmental Protection Agency (EPA)
U. S. Army Corps of Engineers
National Oceanic and Atmospheric Administration (NOAA)
Department of Energy (DOE)
Federal Aviation Administration (FAA)
ACTS
The Rivers and Harbors Act of 1899
Section 401, Clean Water Act
Endangered Species Act
Coastal Zone Management Act
NEPA
Fish & Wildlife Coordination Act
National Historic Preservation Act (Sunken Historic Vessels)
2010:
December 1: The Obama Administration rescinds its decision to expand offshore oil
exploration into the eastern Gulf of Mexico and along the Atlantic and Pacific Coasts as
part of the next five-year drilling plan, reversing 3/31 policy changes and effectively
extending the drilling moratorium in this area through 2017
2011:
March 23: Swedish Vattenfall Group announces the installation of one of the world's
largest offshore wind turbines, the first of 30 to be installed at its Ormonde Offshore
Wind Farm in The Irish Sea that will ultimately supply clean energy for 100,000 homes
each year.
March 24: Salazar announces plans to auction off 758 million tons of coal reserves in
Wyoming that will take somewhere between 10-20 years to mine
2011:
March 30: The VA Marine Resources Commission unanimously votes to allow
Gamesa Energy to conduct scientific surveys to determine if conditions are ripe for
construction of a single, prototype windmill that would generate as much as 5MW
electricity in waters about 3 miles west of Cape Charles on the Eastern Shore.
May 19: The Federal Energy Regulatory Commission (FERC) unanimously granted a
12.59% return on AWC’s equity investment clearing the way for the energy
transmission backbone to move forward
MID-ATLANTIC BIGHT
Cape Cod, Ma
to
Cape Hatteras, NC
Mid-Atlantic Bight
Cape Cod, Ma
to
Cape Hatteras, NC
Windy
“the Saudi Arabia of offshore wind”
Shallow
Close to Consumers
81% of the Population (245mm People)
Live in 28 Coastal States
Consuming 75% of the Country’s Electricity
State
% of State Electric
Generation Potentially
Supplied by Offshore Wind
Economically
Recoverable
Offshore Wind
Resource (MW)
% of State Electricity
Supplied by Fossil
Fuel (2008)
Primary Source of Electric Energy (2008)
1
Delaware
137%
2,850
91.3%
Coal (70%)
2
Massachusetts
130%
13,800
80.6%
Natural Gas (50.6%)
3
North Carolina
112%
37,900
64.1%
Coal (60.5%)
4
New Jersey
92%
16,000
47.3%
Nuclear (50.6%)
5
Virginia
83%
16,000
58.1%
Coal (43.7%)
6
South Carolina
64%
19,200
47.0%
Nuclear (51.3%)
7
Rhode Island
38%
739
97.8%
Natural Gas (97.4%)
8
Maryland
36%
4,680
62.3%
Coal (57.5%)
9
Florida
16%
10,300
82.1%
Natural Gas (47.1%)
10
New York
12%
4,730
47.7%
Natural Gas (31.3%)
11
Georgia
3%
1,190
73.2%
Coal (62.8%)
Total
48%
127,389
64.9%
Coal (39%)
Maine
913%
38,900
48.4%
Natural Gas (43.2%)
New Hampshire
21%
1,230
46.6%
Natural Gas (30.9%)
Rank by % of
Electricity Wind
Can Provide
Developing 127GW (30% more capacity than comparable oil & gas) offshore wind energy over 20 years would provide
energy at a cost of about $36B less than the production of
economically recoverable new offshore oil and natural gas.
Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil
Offshore Wind Potential
Current Energy Mix
Nearly
58%
from Fossil Fuel
Renewable
3%
Virginia
83%
4th
5.5 Million
Of Virginia’s
Electricity Generation
Largest Offshore Wind
Capacity Potential
on East Coast
Average Homes Powered
Annually
Annual Electricity Fuel Costs
Nuclear
38%
Natural Gas
13%
Coal
44%
Oil
2%
Coal
$926.5 Million
Natural Gas
$762.6 Million
Petroleum
$196.5 Million
Nuclear
$147.7 Million
Average Residential
Cost per kWh
09.6¢
Average Offshore Wind Cost
per kWh
11.8¢
Offshore Wind Potential
Offshore Wind as Percent of Electric Generation
Carbon Dioxide Displaced
16 GW
83%
43.6 million metric tons
Job Creation Estimates of 10,000 to 16,700-26,600 permanent jobs
Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil
Cape Wind
NJ
468MW
Capacity
16GW
130 Turbines
200,000HH
75% of the electricity
for Cape Cod,
Martha’s Vineyard,
and Nantucket Island
DE
Bluewater Wind
Capacity
2.85GW
450MW
DE
VA
Gamesa
Capacity
16GW
5MW
VA
BARRIERS TO ENTRY OF OFFSHORE WIND ENERGY
Former EPA Air Enforcement Division Director Bruce Buckheit is currently working on a
comprehensive study
Environmental Impact Study (EIS)
Adjustment in migratory patterns (Danish 8 year avian study)
Prime scalloping dredging fleet
Military Radar Interference
Shipping Lanes
Intermittency
RECOMMENDATIONS
Eliminate federal subsidies for fossil fuels and redirect these funds to renewable
energies and energy efficiency programs.
Stop all new offshore oil and gas drilling to prevent future spills and minimize
competition for resources and expertise that will slow the development of offshore
wind energy.
Require leasing of installation vessels for offshore wind turbine construction be given
priority so that it is not impeded by offshore oil and natural gas development.
Increase and make permanent the tax credit for investment in advanced energy
property outlined in the American Recovery and Reinvestment Tax Act of 2009. This
legislation extends the 30% credit for investment in qualified property used in a
qualified advanced energy manufacturing project, but ends in 2012. In addition, these
tax credits should be extended to manufacturers of offshore wind turbine components
and turbine installation vessels.
Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil
RECOMMENDATIONS
Increase and make permanent the Innovative Technology Loan Guarantee Program for
opening, expanding or modernizing facilities to manufacture offshore wind turbine
components and extend this program to turbine installation vessel manufacturing.
Use policy mechanisms that increase the long-term demand for and supply of
renewable energies, such as a robust Renewable Electricity Standard or Feed-In
Tariffs, Production and Investment Tax Credits, Loan Guarantee programs for
renewable energy products and technology manufacturers and training programs.
Accelerate the electrification of the transportation fleet through incentives to
automobile manufacturers and purchasers and by building the needed infrastructure
such as charging stations to allow maximal use of this new technology.
Recognize external costs of fossil fuels to ensure realistic cost comparisons.
Set mandatory Renewable Portfolio Standards (RPS) for VA.
Source: Untapped Wealth: Offshore Wind Can Deliver Cleaner, More Affordable Energy and More Jobs Than Offshore Oil