1 Off-Shore Wind Update
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Off-Shore Wind Update – Part 2, rev b By John Benson September 2019 1. Introduction Part 1 of this two-part series reviewed the politics in the states that are currently reasonable candidates for offshore wind projects. A link to Part 1 is below. Part 2 of this series focuses on the off-shore projects, the latest off-shore turbine designs from major manufacturers and planned supporting infrastructure for the major offshore projects. https://www.energycentral.com/c/cp/shore-wind-update-%E2%80%93-part-1 2. Major Projects 2.1. New York The State of New York is the customer for Sunrise Wind and Empire Wind below. See Part 1, Section 2.1 for additional details. 2.1.1. Sunrise Wind Sunrise Wind is an offshore lease site 30 miles east of Montauk Point in Long Island. It will be developed by Danish wind power giant Ørsted in partnership with New England energy company Eversource, and it will provide 880 megawatts to the power grid on Long Island. As part of the agreement, Sunrise Wind will build an operations and maintenance hub in Port Jefferson, Long Island, investing in port infrastructure upgrades and establishing offshore wind training programs. The hub will include dockage for a 250 ft. service operation vessel, a warehouse and office facility. Sunrise Wind will be located adjacent to Ørsted’s South Fork Wind Farm and Revolution Wind projects in federal waters off the northeastern coast of the US. The Sunrise wind project will feature SG 8.0-167 DD offshore wind turbines, which will be supplied by Siemens Gamesa under a conditional contract with the project partners. Con Edison Transmission will develop the transmission facilities required to deliver the wind energy to the grid under a memorandum of understanding with the project partners. New York Power Authority (NYPA) will also support the development of the transmission infrastructure. Subject to the partners' final investment decision, the wind farm construction is expected to be started in 2022 and in operation by 2024.1 The offshore wind farm is expected to have an operational life of 25 years. 1 Power Technology, " Sunrise Wind Project, New York", https://www.power- technology.com/projects/sunrise-wind-project-new-york/ 1 2.1.2. Empire Wind Empire Wind will use a site located 14 miles southeast of Manhattan. It will be developed by Norwegian state-owned oil major Equinor and will provide over 800 megawatts of power for New York City.2 The Empire Wind lease area extends 15-30 miles southeast of Long Island, spans 80,000 acres, and covers water depths between 65 and 131 feet. This area has the capacity to produce up to 2,000 megawatts of electricity, enough to power more than 1 million homes. The initial project is expected to be developed with 60-80 wind turbines, with an installed capacity of at least 10 megawatts each. Total investments will be about $3 billion, and the expected startup date is in late 2024. 2.1.3. South Fork Wind Farm South Fork is a 15-turbine, 120 MW offshore wind farm to be constructed by Ørsted. This project will include a state-of-the-art transmission system. This project will generate enough clean energy to power 70,000 average homes. The South Fork Wind Farm will be located in the Atlantic Ocean 35 miles east of Montauk Point, out of sight from Long Island beaches. Its transmission system will deliver power to the local grid in the Town of East Hampton, NY. Onshore and offshore construction is planned to begin in 2021, with the wind farm coming online in 2022.3 Power needs on the South Fork are growing faster than anywhere else on Long Island. In 2015, PSEG/LIPA issued a request for proposals to address this specific need, and more than 20 proposals were received. The South Fork Wind Farm was selected because it was part of a portfolio that was found to be most cost-effective solution. Siemens Gamesa Renewable Energy was conditionally awarded the contract to deliver SG 8.0-167 DD offshore wind turbines for the South Fork project. South Fork Wind is adjacent to Ørsted’s Sunrise and Revolution Wind projects, creating the possibility for multi-site synergies during construction and operation. See operations and maintenance hub under Sunrise Wind above. South Fork will be New York's first offshore wind farm. 2.2. Connecticut & Rhode Island 2.2.1. Revolution Wind Revolution Wind is a next-generation 704-megawatt offshore wind farm with 90 offshore wind turbines serving Connecticut and Rhode Island. The wind farm will be located over 15 miles south of the Rhode Island coast in Ørsted’s federal lease area, located roughly midway between Block Island, R.I., and Martha’s Vineyard, Mass. Once permits are in- hand, local construction work on Revolution Wind would begin as early as 2020, with the project operational in 2023. This project will use Siemens Gamesa Renewable Energy SG 8.0-167 DD wind turbines 2 Equinor, "Empire Wind", https://www.equinor.com/en/what-we-do/empirewind.html 3 Deepwater Wind, "South Fork Wind Farm", http://dwwind.com/project/south-fork-wind-farm/ 2 2.2.2. Constitution Wind This is a 200 MW Project being implemented by Ørsted and Eversource. The lease area is adjacent to the lease for the 800 MW Bay State Wind project (see below under Massachusetts). I believe it may also share transmission facilities with this larger project, and perhaps also with Revolution Wind above, but this is up in the air, as the U.S. Bureau of Ocean Energy Management is considering supporting a northeastern transmission backbone. I believe that most states will support individual transmission lines for each project or small group of projects, and they should have control of this decision. It should be noted that the construction of onshore transmission facilities in each state is a significant part of their local content. See section 4.2 below for more information.4 2.2.3. Block Island Block Island is the one offshore project that is in service. Although it is only 30 MW, being first matters. This project used five GE Haliade 150-6MW turbines, and it has been operating since late 2016.5 2.3. Maryland 2.3.1. Skipjack Wind Farm This is a new offshore wind farm and state-of-the-art subsea transmission system that will be constructed by Ørsted. Capable of delivering 120 MW of clean energy to Maryland’s Eastern Shore, it will generate enough energy to power 35,000 homes.6 The Skipjack Wind Farm is located in the Atlantic Ocean northeast of Ocean City, 19.5 miles away from its closest point in Maryland and 26 miles away from the Ocean City Pier. At those distances, and because it is located northeast of the Maryland coast, Skipjack is the best option to minimize visual impacts from the Ocean City shoreline. GE has been identified as the preferred turbine supplier for this project, with their new 12- megawatt Haliade-X turbine.7 Offshore construction is planned to start as early as 2021, with the wind farm coming online in 2022. 2.3.2. Maryland Offshore Wind Project US Wind Inc. has begun the process of developing approximately 250 Megawatt (MW) offshore wind project off the coast of Maryland, with completion expected in 2022. The scope of the planned project would be the first utility-scale offshore wind project in the U.S., requiring private investment of approximately $2.5 billion to build and install approximately 32 offshore wind turbines 17 miles from shore. Additional wind capacity is possible within the Maryland WEA. An independent third-party management consulting firm hired by the Maryland Public Service Commission estimates that US Wind's project 4 Joshua S Hill, CleanTechnica, "Ørsted & Eversource Announce 200 Megawatt Connecticut Offshore Wind Farm", April 3rd, 2018, https://cleantechnica.com/2018/04/03/orsted-eversource-announce-200- megawatt-connecticut-offshore-wind-farm/ 5 Ørsted, "Real Power", https://orsted.com/en/NewYork 6 Ørsted, "Our Projects in the U.S.", https://us.orsted.com/Wind-projects 7 Karl-Erik Stromsta, Greentech Media, "GE Lands First Orders for 12MW Offshore Wind Turbine, and They’re Huge" Sep 19, 2019, https://www.greentechmedia.com/articles/read/ge-wins-lands-first-big-deals-for- 12mw-offshore-wind-turbine?utm_medium=email&utm_source=Daily&utm_campaign=GTMDaily#gs.4z5lzv 3 will result in nearly $850 million of in-State economic impact, and the creation of over 4,000 full-time equivalent jobs.8 2.4. Virginia 2.4.1. Coastal Virginia Offshore Wind The Coastal Virginia Offshore Wind (CVOW) project calls for development of two 6- megawatt wind turbines on a site leased by the Virginia Department of Mines Minerals and Energy (DMME). Dominion Energy has an agreement with DMME to build and operate the turbines within the 2,135-acre site, which lies 27 miles off the coast of Virginia Beach.9 The commercial lease area totals 112,800 acres and could support more than 2,000 megawatts of renewable energy. That’s enough to power 500,000 homes. Dominion Energy is currently planning offshore activities in 2020 to support development of required construction planning for future phases of this project. On November 2, 2018 the Virginia State Corporation Commission approved the project and granted a certificate of public convenience and necessity to construct and operate the associated Virginia Interconnect Facilities. Dominion Energy has contracted with a global wind leader - Ørsted Energy of Denmark - for construction of the two turbines. And Dominion Energy has selected the L.E.