Wind Energy in the Southeast: Offshore and Land-Based Potential

Georgia Tech – Clean Energy Speaker Series Southeast Wind Energy: Is An Answer Blowing in the Wind? September 29, 2010

Presented by

Amir Mikhail, Ph.D. Senior Vice President of Engineering Clipper Windpower, Inc.

1 Offshore Wind Resource

2 Project Installations

3 Economics / Cost of Energy

4 Challenges

5 Land-Based

Offshore wind resource: • Higher Winds • Less Variable

Source: Garrad Hassan

Offshore wind resource area and potential by wind speed interval and state within 50 nm of shore.

Source: NREL June 2010

US offshore wind resource at 90 m above the surface.

Total potential: 4 x Installed electric capacity in US.

Source: NREL June 2010

US bathymetry distribution.

East Coast more shallow than West Coast.

Source: NREL June 2010

Distance from US shoreline (nm).

State boundary 3 nm except for Texas and Gulf coast of Florida (9 nm).

Georgia – 90 m (hub height at MSL) offshore wind speed.

2,110 MW Installed Capacity of Offshore Wind Power for Total World Source: BTM Consult ApS – March 2010

Red = (built Mm wind turbines), Purple = (built small wind turbines) Blue=(under construction), Grey=(planned) Source: www.offshorewindenergy.org , September 2008 12 © 2010 Clipper Windpower, Inc. and subsidiaries. All rights reserved. Offshore Wind Growth Forecast

UK offshore Round I and II drive current development; Round III projects pick up in 2013 forward in nine zones totaling 32 GW

Source: BTM Consultancy Report

Germany permits 25 sites (22 North Sea, 3 in Baltic) Transpower installs HVDC substation and transmission backed by utilities at cost of Source: BTM Consultancy Report €500M. Net capacity result by 2020: UK = 40GW Germany = 25GW

Source: EWEA 2010 Report

13 © 2010 Clipper Windpower, Inc. and subsidiaries. All rights reserved. Economics / Cost of Energy Technical Issues – Offshore Technology Typical Offshore Installations: • Danish and UK offshore demonstration and commercial installations. • Costs estimated at $1.5 - $4.5m/MW installed.

Source: National Renewable Energy Laboratory

A generic method for evaluating offshore wind in comparison to other power generation methods is given by:

(Worldwide market, IEC Class I)

WIND FARM (All Europe) YEAR SIZE (MW) Thanet 2010 300 Average Walney Island 2012 386 181 $/MWh Ormonde 2011 150 Sheringham Shoal 2011 317 Borkum Riffgrund West 2013 400 Lincs 2012 270 Borkum West II 2011 200 Meerwind 2012 200 Innogy Nordsee 1 2013 324 Greater Gabbard 2012 504 Nordegrunde 2011 320 Kriegers Flak 1 2013 200 Gwynt y Mor 2013 576 London Array 2012 630 Global Tech 1 2013 400

CAPEX data from Bloomberg New Energy Finance, August 2010. LCOE20 calculated internally using 41% capacity factor and $26/MWh operations cost (K2).

Britannia 10 MW and Liberty 2.5 MW – Size Comparison:

Britannia 10 MW: • Designed for offshore. • Advanced: » Rotor blade airfoils » Gearbox concepts » Controls » Electrical system concepts • New economics of scale for offshore applications.

Offshore Technology Challenges: • Offshore environment: » Wind speed/energy potential » Turbulence and inflow monitoring • Wave loading: » Wave spectrum – Shallow water – Deep water » Extreme waves » Wind-wave correlation • Turbine dynamics – code enhancement & validation: » Fatigue/linear waves and turbulent wind » Stability and controls » Extreme events/non-linear waves • Foundations: Middelgrunden Wind Farm, Denmark » Shallow water – monopole, gravity, suction » Deep water anchors • Grid integration and transmission to shore • Larger RNA to compensate for high cost support structure Source: National Renewable Energy Laboratory 22 © 2010 Clipper Windpower, Inc. and subsidiaries. All rights reserved. Land-Based Land-Based US wind resource with emphasis on the Southeast.

State: Range: GA . 1 – 1 GW SC 1 – 5 GW NC 5 – 10 GW

Total Capabilities By 2030 300 GW

Total capacity = 16 x electrical consumption within the US. Source: PNAS July 2009 Source: US Department of Energy, July 2008

Projected Costs of Generating Energy, 2010 Edition International Energy Agency