Future Pathways for Offshore Wind Projects Interconnecting in Virginia

Virginia aims to achieve a 5,200 MW offshore wind goal by 2032, necessitating stable off-take agreements for project financing. This report explores mechanisms, alternatives, and contractual arrangements to support the viability and expansion of offshore wind energy in Virginia and the Atlantic Coast region.

• Offshore Wind
• Virginia
• Energy Development
• Renewable Energy
• Project Financing

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1. Pathways Forward for Future Offshore Wind Projects Interconnecting in Virginia VOWDA Meeting July 13, 2023 Howard Shafferman, The Haswell Group, LLC

2. Objectives For Virginia to fulfill the 5,200 MW offshore wind goal by 2032, as set forth in the Virginia Clean Economy Act, as amended in the 2023 session Finding pathways to facilitate additional Virginia offshore wind capacity beyond the 5,200 MW goal, through offtakers that require or request it Core issue: Without a financially stable, long-term offtake agreement or other mechanism, no project can be financed and move forward

3. Mechanisms in Virginia to Assist With Viability of Future Offshore Wind Projects Recent acceleration of Commonwealth s offshore wind energy goal of 5,200 MW; Governor s amendments not accepted in 2023 session RPS legislation from 2020 No mandated competitive offshore wind purchase by VA utilities Dominion s preference to build and rate-base future projects Potential legislation?

4. Survey of Atlantic Coast Mechanisms to Encourage Offshore Wind Development Connecticut, Massachusetts and Rhode Island (ISO-NE): required solicitations by distribution utilities New Jersey, Maryland (PJM): ORECs New York: index ORECs

5. Alternatives to Northeast Legislative and Regulatory Regimes: Direct Deals Large entities with green power commitments: collaboration with VEDP Military installations: Navy Mid-Atlantic, Defense Logistics Agency Energy division initial possibilities, more research needed Other options

6. Potential Contractual Arrangements for Direct Deals Conventional PPAs with offtakers Contracts for Differences