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National Offshore Wind Energy Grid Interconnection Study Executive Summary

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National Offshore Wind Energy Grid Interconnection Study Executive Summary National Offshore Wind Energy Grid Interconnection Study Executive Summary DOE Award No. EE-0005365 ABB, Inc. 12040 Regency Pkwy. Suite 200 Cary, NC 27518-7708 Project Period: 10/11 – 04/14 Authors: John P. Daniel Dr. Shu Liu Dr. Eduardo Ibanez (Principal Investigator) ABB, Inc. National Renewable Energy Laboratory ABB, Inc. 919-856-2473 303-384-6926 940 Main Campus Dr. [email protected] [email protected] Raleigh, NC 27606 919-856-3306 [email protected] Ken Pennock Dr. Gregory Reed Spencer Hanes AWS Truepower University of Pittsburgh Duke Energy 518-213-0044 412-383-9862 704-382-4560 [email protected] [email protected] [email protected] July 30, 2014 ACKNOWLEDGMENTS This report is based on work supported by the U.S. Department of Energy (DOE) under Award No. EE-00005365. The authors wish to express appreciation for the kind support from DOE and the many industry leaders that have contributed through direct input and comment on the work as it has progressed. In particular, we would like to thank the study’s technical review committee (TRC) for their tremendous input and support for this work. Representatives from utilities, regional system operators, government, and the wind industry comprised the TRC. Technical Review Committee American Wind Energy Association Offshore Wind Development Coalition Chris Long Doug Pfeister Bureau of Ocean Energy Management PJM Casey Reeves Scott Baker Ken Schuyler Electric Reliability Council of Texas U.S. Department of Defense Cathey Carter Louis Husser ISO-New England U.S. Department of Energy Jon Black Charlton Clark Rich Kowalski Brad Ring Melissa Callaway National Renewable Energy Laboratory Xero Energy Limited Aaron Bloom Jeff Fodiak Dennis Elliott Helen Snodin Study Team ABB, Inc. National Renewable Energy Laboratory John Daniel Dr. Eduardo Ibanez Dr. Shu Liu Dr. Trieu Mai Dr. Lang Chen Michael Heaney Dr. Jiuping Pan Lynn Coles AWS Truepower University of Pittsburgh Ken Pennock Dr. Gregory Reed Jaclyn Frank Brandon Grainger Charles Alonge Matthew Korytowski Duke Energy Spencer Hanes 2 DISCLAIMER Any findings, opinions, conclusions, or recommendations expressed in this report are those of the authors and do not necessarily reflect the view of the U.S. Department of Energy. 3 TABLE OF CONTENTS LIST OF ACRONYMS ................................................................................................................................................... 5 LIST OF FIGURES ........................................................................................................................................................ 6 LIST OF TABLES .......................................................................................................................................................... 7 SYNOPSIS ..................................................................................................................................................................... 8 KEY RESULTS AND OBSERVATIONS ................................................................................................................................. 8 SUMMARY .................................................................................................................................................................. 10 BACKGROUND............................................................................................................................................................. 10 OFFSHORE WIND DEVELOPMENT—STAGING PROJECTIONS ............................................................................................ 12 WIND PRODUCTION PROFILE DEVELOPMENT ................................................................................................................. 14 INITIAL INTEGRATION ANALYSIS .................................................................................................................................... 16 TECHNOLOGY OVERVIEW ............................................................................................................................................. 18 TECHNOLOGY ASSESSMENTS ....................................................................................................................................... 20 Costs .................................................................................................................................................................... 20 Reliability .............................................................................................................................................................. 22 Technology Comparison ...................................................................................................................................... 24 Production Costs .................................................................................................................................................. 26 REGULATORY REVIEW ................................................................................................................................................. 27 State of Offshore Wind in the United States in 2014 ............................................................................................ 27 Offshore Wind Development Framework ............................................................................................................. 30 Recommendations ............................................................................................................................................... 36 REFERENCES............................................................................................................................................................. 38 4 LIST OF ACRONYMS AAM - alternative arm modular MISO - Midcontinent Independent System Operator AC - alternating current MMC - modular multi-level AWC - Atlantic Wind Connection MMS - Minerals Management Service BA - balancing areas MOU - memorandum of understanding BOEM - Bureau of Ocean Energy Management MTDC - multi-terminal direct current CF - capacity factor MVDC - medium-voltage direct current COE - cost of energy MW - megawatts COWICS - Carolina Offshore Wind Integration Case MWh - megawatt-hours Study NAMTGM - North American transmission grid model CREZ - competitive renewable energy zone NCF - net capacity factor CSP - concentrating solar power NEPA - National Environmental Policy Act CTL - cascaded two-level NREL - National Renewable Energy Laboratory DC - direct current NERC - North American Reliability Corporation DFIG - doubly-fed induction generator NOWEGIS - National Offshore Wind Energy Grid DOE - U.S. Department of Energy Interconnection Study DOI - U.S. Department of the Interior NOAA - National Oceanic and Atmospheric DOWNVInD - Distant Offshore Wind farms with No Administration Visual Impact in Deepwaters nmi - nautical mile EA - environmental assessment NPC - neutral-point-clamped EENS - expected energy not supplied NWPP - Northwest Power Pool EIA - U.S. Energy Information Administration OCS - Outer Continental Shelf EIS - environmental impact statement ODIS - National Grid’s Offshore Development EMM - U.S. Energy Information Agency Electricity Information Statement Market Modules OREC - offshore wind renewable energy certificate ENTSO-E - European Network of Transmission PCC - point of common coupling System Operators for Electricity PJM - the regional transmission organization covering EPR - ethylene propylene rubber all or parts of 13 states and the District of ERCOT - Electric Reliability Council of Texas Columbia ERGIS - Eastern Renewable Generation Integration PPA - power purchase agreement Study PUC - public utilities commission EWITS - Eastern Wind Integration and Transmission REC - renewable energy certificate Study ReEDS - Regional Energy Deployment System FERC - Federal Energy Regulatory Commission RPS - renewable portfolio standards GIP - generator interconnection process RTO - regional transmission organization GW - gigawatts TRC - technical review committee HV - high voltage TWh - terawatt-hours HVAC/HVDC - high-voltage alternating/direct current USGS - U.S. Geological Survey IEC - International Electrotechnical Commission var - volt-ampere reactive IEEE - Institute of Electrical and Electronic Engineers VOWTAP - Virginia Offshore Wind Technology IGBT - insulated-gate bipolar transistor Advancement Program ISO - independent system operator VSC - voltage source converter ISO-NE - Independent System Operator New England WEA - wind energy area kV - kilovolts WTG - wind turbine generator kW - kilowatts XLPE - cross-linked polyethylene LCC - line-commutated converter LCOE - levelized cost of energy LMP - locational marginal prices MASS - Mesoscale Atmospheric Simulation System 5 LIST OF FIGURES FIGURE ES-1. NOWEGIS TASKS AND STUDY FLOW ........................................................................................................... 11 FIGURE ES-2. INSTALLED ONSHORE AND OFFSHORE WIND AS OUTLINED IN 20% WIND ENERGY BY 2030 ................................ 12 FIGURE ES-3. ONSHORE AND OFFSHORE WIND DEPLOYED IN 2030 ...................................................................................... 13 FIGURE ES-4. OFFSHORE WIND BUILD-OUT FOR THE EAST COAST ....................................................................................... 14 FIGURE ES-5. MAP OF NATIONAL WIND NET CAPACITY FACTOR ............................................................................................ 16 FIGURE ES-6. BOX PLOTS SHOWING HOURLY AND 10-MINUTE
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