Cooperation on Offshore Wind Development in Northeast States
Explore the potential for increased cooperation among Northeast states for offshore wind development. Key facts on offshore wind, reasons for development, and the importance of regional collaboration are highlighted in this informative content.
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The Potential for Increased Cooperation on Offshore Wind among the Northeast States Warren Leon, Executive Director
About CESA Northeast Members Connecticut Department of Energy and Environmental Protection Connecticut Green Bank Massachusetts Clean Energy Center Massachusetts Department of Energy Resources Massachusetts Department of Environmental Protection New Hampshire Public Utilities Commission - Sustainable Energy Division New York State Energy Research and Development Authority Rhode Island Commerce Corporation Rhode Island Office of Energy Resources Vermont Public Service Department - Clean Energy Development Fund Clean Energy States Alliance (CESA) is a national, nonprofit coalition of public agencies and organizations working together to advance clean energy. CESA members mostly state agencies include many of the most innovative, successful, and influential public funders of clean energy initiatives in the country. CESA manages the Northeast Wind Resource Center with SEA.
Key Facts about Offshore Wind 8,000 megawatts installed and in operation in Europe Resource is significant In Mid-Atlantic and New England waters, technical potential of 400 GW in water up to 30 meters in depth plus 300 GW more in waters up to 60 meters The federal government and state governments have been working hard to set the stage for offshore wind development Industry is making progress in cutting costs through innovation and partnerships The cost of offshore wind energy is currently higher than other renewable and fossil fuel resources www.cesa.org 3
The Take-Away Message Offshore wind development is important for the region, but is difficult 4 www.cesa.org 4
Reasons for Developing Offshore Wind Help achieve individual state RPS targets and comply with EPA s Clean Power Plan Address peak demand by providing more electricity during summer and winter peaking hours Increase fuel diversity and regional energy security Delink the region from the volatility of fossil fuel price fluctuations Reduce pollution and greenhouse gas emissions Create good-paying jobs installing and maintaining offshore wind farms Create a regional supply chain that would boost regional economic development Reduce the need for long- distance transmission upgrades Address electricity needs in load centers with high electricity costs by siting renewable generation close to metropolitan areas Provide a higher capacity factor and increased production per MW, compared to other renewable energy sources
How to Achieve Large-Scale Development Continue individual states existing efforts Continue to work with the federal government and encourage the federal government to remain active in promoting offshore wind development Increase cooperation and collaboration among the states A supplement to, not a substitute for, states individual actions www.cesa.org 6
The Case for Collaborative Action General discussions in recent years and considerable agreement that there would theoretically be benefits from working together Areas of possible cooperation spelled out in various reports. For example: Collaborative Procurement of Offshore Wind Energy (CESA, 2015) Up in the Air: What the Northeast States Should Do Together on Offshore Wind, Before It s Too Late (Clean Energy Group and Navigant, 2015) www.cesa.org 7
Possible Areas of Multi-State Collaboration (from CEG/Navigant Report) 1. Regional Offshore Wind Target. The establishment of a practical regional target (or target range) would create a clear demand signal to offshore wind developers that the region is open to support projects. 4. Procurement. Joint or cooperative power procurement from one or more large offshore wind projects would reduce costs and create a reliable pipeline for project developers. 2. Coordinated Policy Incentives. Making policy drivers, including incentives for developers, consistent across the region would drive demand and produce cost reductions over time. 5. Economic Development. Coordinated rather than purely competitive action could spur economic development from the creation of clean energy jobs, potentially including manufacturing facilities. 3. Financing. New, regional financing mechanisms for regional and single projects would be desirable, including use of bonds and various measures through green bank financing. 6. Transmission. Joint public funding of regional transmission and interconnection facilities associated with regional projects. 7. Permitting. Standardized policies for permitting offshore wind facilities. 8
Questions to Answer before Collaboration Can Work Which of the possible ideas are practical? Which possible areas of collaboration would have the greatest impact on offshore wind development? What is best for individual states to continue to do on their own? 9 www.cesa.org 9
Proposal to DOE State Energy Program Four states jointly submitted: MA, ME, RI, NY NH supportive but not actively participating CESA to serve a project coordination role Project goal Prepare a Roadmap: a strategy for achieving a significant regional market Identify what the states should do on their own Identify what the states can and should do collaboratively www.cesa.org 10
If the Proposal Is Funded Work would start in the fall Research analysis to inform the Roadmap Considerable outreach to and input from stakeholders The Roadmap document to be produced by late-2016 www.cesa.org 11 www.cesa.org 11
Remember the Offshore Wind Hub www.offshorewindhub.com Comprehensive repository of state-related documents on offshore wind for the states from ME to NJ Help wanted Submit information about additional documents to include An activity of the
Contact Info Warren Leon Clean Energy States Alliance www.cesa.org wleon@cleanegroup.org www.cesa.org 13
