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The Current - November 2010 | Maryland Clean Energy Center Login | About Us | Contact Us | Register ● Clean Energy Technologies The Current - November 2010 ● Using Clean Energy Articles In This Issue: ● Business Resources ● Proposed transmission line, federal leases bolster prospects for offshore wind power in ● Research & Development Maryland ● ● Programs & Incentives Pepco, BGE revise smart meter plans to include more consumer education and cost- protection ● Find ● Senator Pinsky Vows To Correct Net Metering Law During 2011 Session ● News & Events ● Fairfield Renewable Energy project in Baltimore poised to create nearly 600 green jobs, 140 MW of clean energy ● New Solar Thermal Division at regional chapter of the national Solar Energy Industries Association ● Cyber security experts from NIST, State of Maryland and MITRE to discuss ‘Stuxnet,’ other threats Dec. 14 at Clean Energy Technology Incubator in Baltimore ● Pepco’s Reliability Enhancement Plan for Maryland ● Upcoming Events: - Maryland offshore wind conference, December 4 in Annapolis - ACORE’s Phase II Renewable Energy Policy Forum - Maryland Clean Energy Legislative Day, January 27, 2011 in Annapolis "THE CURRENT" NEWSLETTER SERIES IS MADE POSSIBLE THANKS TO PEPCO HOLDINGS INC: http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-november2010 (1 of 21)6/27/2012 2:05:17 PM The Current - November 2010 | Maryland Clean Energy Center Proposed transmission line, federal leases bolster prospects for offshore wind power in Maryland Two major announcements in less than a month could propel Maryland closer to creating an offshore wind power industry. Bidding Is Open for Leasing Wind Parcels Offshore Near Ocean City Gov. Martin O’Malley, the Maryland Energy Administration and the federal Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) have opened the bidding process for companies interested in leasing parcels off the Maryland coast to develop wind power farms. “I think this is all very good news for the offshore wind industry,” said Jean-Paul Crouzoulon, vice president of operations with Areva Renewables North America in Bethesda. Areva, which is headquartered in France, is vying for the contract to supply turbines to NRG Bluewater Wind’s Mid- Atlantic Wind Park in Delaware and exploring Jean-Paul Crouzoulon of AREVA options to manufacture turbines in North America. Renewables. AREVA is seeking to build wind turbines for wind systems offshore The BOEMRE announcement in early November Delaware. made Maryland just the second state in the nation, after Massachusetts, to begin the leasing process for offshore wind projects. Based on two years of work by the Maryland Offshore Wind Task Force, BOEMRE approved 277 square nautical miles off a 31-mile stretch of Maryland coastline as possible lease sites for wind farms. The leasing area, which is set along the Outer Continental Shelf, would not permit turbines within 10 nautical miles of Ocean City’s beach or 20 nautical miles of the Assateague National Seashore. The process gives would-be wind-power developers 60 days to file an expression of interest with federal authorities. http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-november2010 (2 of 21)6/27/2012 2:05:17 PM The Current - November 2010 | Maryland Clean Energy Center Governor Martin O’Malley described the launch of the leasing process as “another step forward for Maryland’s new economy. By harnessing the outstanding wind resources off of Maryland’s coast, we can create thousands of green collar jobs, reduce harmful air pollution and bring much needed, additional clean energy to Maryland.” Map illustrates tracts to be leased offshore State officials estimate that a 1-gigawatt wind Ocean City for wind energy turbines. development off Maryland’s coast could create as many as 4,000 jobs in manufacturing and construction during the five-year development period and 800 permanent jobs once the wind turbines went into operation. Crouzoulon described the leasing arrangement as a “critical step” to the development of an offshore wind industry in Maryland. “It is critical because frankly today siting and permitting are still things that haven’t been resolved and we still have question marks when we look to the future,” he said. “For developers, it is good news that there is now a process for them to apply and bid for land.” Crouzoulon predicted the leasing process would attract a “fair amount” of expressions of interest from developers and create the prospect of multiple wind farms off Maryland’s coast. “Developers are not here to build a wind farm. They are here to launch an industry,” he said. “You launch an industry by having several projects so you can afford a transmission line and have a supplier of wind turbines move here and build a supply chain. You are not going to do that with one wind farm of 100 megawatts.” Google, Trans-Elect Partnership Aiming for Mid-Atlantic Sub-Sea Transmission Line In mid-October, Chevy Chase-based Trans- Elect Development Co. announced that it had http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-november2010 (3 of 21)6/27/2012 2:05:17 PM The Current - November 2010 | Maryland Clean Energy Center forged a partnership with Google and other major investors to develop a $5-billion, sub-sea, transmission network to bolster the PJM Interconnection grid and serve wind farms off the Mid-Atlantic coast. Andrew Gohn, a clean energy program manager specializing in wind energy at the Maryland Energy Administration, suggests the Trans-Elect transmission line might make the Map illustrates the Atlantic Wind Connection region more attractive to wind power developers. and how it plans on transmitting electricity onshore. Trans-Elect and its investors have proposed to build the Atlantic Wind Connection project – a 350-mile power-transmission network that would run beneath the ocean floor from Virginia to New Jersey. Connecting to land at multiple points, the line could handle 6,000 megawatts of offshore wind and would tie into the PJM grid, which serves 13 states and the District of Columbia. Gohn points to a proposal that NRG Bluewater Wind submitted in 2007 to build a 600- megawatt offshore wind facility and bring the power ashore at Ocean City. PJM Interconnection officials who evaluated the project, concluded that Bluewater would have to spend $200 million upgrading transmission lines to the site “so that particular project ended up being cost- prohibitive for Bluewater,” he said. “An offshore backbone transmission line, like the one being proposed by Trans-Elect, could dramatically lower the cost of deployment of wind farms,” Gohn added. Markian Melnyk, a principal in Atlantic Wind Connection, said the transmission line could address two major energy problems in the Mid-Atlantic: the high cost of peak power in a region with congested transmission lines and the challenge of finding adequate sites to build clean energy facilities. “The Mid-Atlantic region’s electric transmission corridor is critically congested to the point that http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-november2010 (4 of 21)6/27/2012 2:05:17 PM The Current - November 2010 | Maryland Clean Energy Center we pay higher prices because we don’t have the transmission capacity to get access to broad energy resources. So when we are using a lot of power, we have to turn on more expensive generation,” Melnyk said. “Because this region is so heavily populated, it is also extremely difficult to build new energy developments on land.” The Atlantic Wind Connection would actually increase the number of commercially viable sites for wind farms, Melnyk said. “Right now, the transmission grid along the Mid-Atlantic coast is not all that strong. That means that early wind projects would connect to the best spots in the grid. Later projects would have to settle for worse spots,” he said. “The Atlantic Wind Connection backbone dramatically opens up the number of potential interconnection points and makes them much more convenient for developers.” The Atlantic Wind Connection project faces some challenges. The Federal Energy Regulatory Commission (FERC) does not currently have a template for assessing offshore wind power transmission lines. Furthermore, guidelines for assessing any new transmission lines within the PJM grid are “very strict and rigid” and do not include consideration of a project’s ability to tap clean energy sources, Melnyk said. The Mid-Atlantic governors, however, have already appealed to FERC to open up the guidelines for assessing new transmission lines to consider state policy objectives, including renewable portfolio standards (RPS), Gohn said. FERC officials, he added, “have been very easy to work with on this. We are getting strong indications that they will consider state RPS issues.” Maryland officials hope to solidify connection to proposed Trans-Elect line Some Maryland officials and developers are anxious to see Trans-Elect solidify Phase II of the Atlantic Wind Connection. The development plan includes bringing power lines ashore initially in just three states – Virginia, Delaware and New Jersey. Trans-Elect plans to land a line at an undisclosed location in Maryland during a later phase of the development. http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-november2010 (5 of 21)6/27/2012 2:05:17 PM The Current - November 2010 | Maryland Clean Energy Center “That is a concern and we want to get that Phase II done as quickly as possible,” Gohn said. “We do not want to be left out of this process because it is going to be important for us in terms of deploying offshore wind.” Tom Carlson, Maryland state director of the Chesapeake Climate Action Network (CCAN), stresses that Maryland will also need to take other initiatives to turn the possibility of an offshore wind power industry into a reality. “For offshore wind to compete and be successful, it requires long-term, power-purchase contracts. But a lot of energy contracts are short term,” Carlson said. CCAN is currently working with the governor’s office and the MEA to draft legislation that would mandate some long-term purchase contracts for clean energy.