Offshore Wind Transmission Study Comparison of Options

Total Page:16

File Type:pdf, Size:1020Kb

Offshore Wind Transmission Study Comparison of Options Offshore Wind Transmission Study Comparison of Options prepared for New Jersey Board of Public Utilities December 29, 2020 Page 1 Table of Contents I. Executive Summary ....................................................................................................................1 Recommendation ................................................................................................................................. 4 II. Background ................................................................................................................................5 Radial Export Cables ............................................................................................................................. 5 Ocean Grid ............................................................................................................................................ 6 Hybrid System ....................................................................................................................................... 8 Power Corridor ..................................................................................................................................... 8 III. Information Gathering Process ................................................................................................. 10 July-August 2020 OSW Transmission Stakeholder Meetings ............................................................. 12 IV. European Lessons Learned ........................................................................................................ 16 Study 1: Offshore Wind - A European Perspective, New York Power Authority ................................ 18 Study 2: Market Design for an Efficient Transmission of Offshore Wind Energy, DIW ECON ............ 21 Study 3: Connecting Offshore Wind Farms – A Comparison of Offshore Electricity Grid Development Models in Northwest Europe, Navigant Netherlands B.V. ................................................................. 24 Study 4: Transmission Policy Lessons from Europe’s Offshore Wind Experience, Dr. Deniz Ozkan .. 28 Lessons Learned Findings ................................................................................................................... 29 V. Offshore Transmission for New Jersey ...................................................................................... 33 Early OSW Development ..................................................................................................................... 33 Current OSW Development ................................................................................................................ 34 New Jersey OSW Potential ................................................................................................................. 35 VI. Capital Costs of Offshore Transmission Designs ......................................................................... 38 Stakeholder Positions on Capital Cost ................................................................................................ 38 Competitive Pressures to Minimize Capital Costs .............................................................................. 40 PJM Studies for New Jersey’s State Agreement Approach................................................................. 42 Onshore Capital Costs ......................................................................................................................... 43 VII. Project-on-Project Coordination and Risk .................................................................................. 44 Coordination Challenges ..................................................................................................................... 44 Regulatory Risks .................................................................................................................................. 46 OSW Project Delays ............................................................................................................................ 47 German Project-on-Project Risk Example ........................................................................................... 49 U.S. Examples ...................................................................................................................................... 51 Project-on-Project Risk Impacts on Ratepayers ................................................................................. 52 VIII. Environmental Impacts ............................................................................................................. 53 NY/NJ Ocean Grid ............................................................................................................................... 54 Construction Method.......................................................................................................................... 54 BOEM Environmental Studies ............................................................................................................. 56 Environmental Impacts During Construction ..................................................................................... 57 Environmental Impacts During Operation .......................................................................................... 58 Future Proofing ................................................................................................................................... 61 - i - IX. Technology, Redundancy, Reliability, and Losses ....................................................................... 63 Overview ............................................................................................................................................. 63 HVAC and HVDC Technology .............................................................................................................. 64 HVAC and HVDC Common and Differentiating Factors ...................................................................... 65 Cable and Converter Reliability .......................................................................................................... 66 Redundancy ........................................................................................................................................ 67 Performance ....................................................................................................................................... 67 Engineering, Procurement, and Construction .................................................................................... 68 Losses .................................................................................................................................................. 69 Operating and Maintenance Costs ..................................................................................................... 69 Ocean Grid Energy Transfers .............................................................................................................. 70 HVAC and HVDC Applications to Date ................................................................................................ 71 X. Long-Term Planning versus Flexibility ........................................................................................ 74 Long-Term Planning Considerations ................................................................................................... 74 Headroom at Points of Interconnection ............................................................................................. 75 Extrinsic Benefits................................................................................................................................. 76 XI. Business Structure, Financing, and Ratepayer Risk ..................................................................... 77 Offshore Transmission Business Structures........................................................................................ 77 Onshore Transmission Examples ........................................................................................................ 79 Financing ............................................................................................................................................. 79 Cost Recovery and Ratepayer Risk ..................................................................................................... 81 XII. State Benefits and Procurement Process ................................................................................... 83 State Benefits ...................................................................................................................................... 83 Procurement Process .......................................................................................................................... 84 State Agreement Approach ................................................................................................................ 86 Common Concerns.............................................................................................................................. 86 Appendix 1 – Radial Export Cable, Ocean Grid, and Power Corridor Comparison Table ................... A1-1 - ii - I. Executive Summary Levitan & Associates, Inc. (LAI) prepared this Transmission Study for the New Jersey Board of Public Utilities (Board) to evaluate the range of commercial, technical, environmental, and operational advantages / disadvantages of offshore wind (OSW) transmission options. LAI’s scope of work was centered on the evaluation of radial export cable and ocean
Recommended publications
  • Applications of Systems Engineering to the Research, Design, And
    Applications of Systems Engineering to the Research, Design, and Development of Wind Energy Systems K. Dykes and R. Meadows With contributions from: F. Felker, P. Graf, M. Hand, M. Lunacek, J. Michalakes, P. Moriarty, W. Musial, and P. Veers NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. Technical Report NREL/TP-5000-52616 December 2011 Contract No. DE -AC36-08GO28308 Applications of Systems Engineering to the Research, Design, and Development of Wind Energy Systems Authors: K. Dykes and R. Meadows With contributions from: F. Felker, P. Graf, M. Hand, M. Lunacek, J. Michalakes, P. Moriarty, W. Musial, and P. Veers Prepared under Task No. WE11.0341 NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. National Renewable Energy Laboratory Technical Report NREL/TP-5000-52616 1617 Cole Boulevard Golden, Colorado 80401 December 2011 303-275-3000 • www.nrel.gov Contract No. DE-AC36-08GO28308 NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof.
    [Show full text]
  • Analyzing the Energy Industry in United States
    +44 20 8123 2220 [email protected] Analyzing the Energy Industry in United States https://marketpublishers.com/r/AC4983D1366EN.html Date: June 2012 Pages: 700 Price: US$ 450.00 (Single User License) ID: AC4983D1366EN Abstracts The global energy industry has explored many options to meet the growing energy needs of industrialized economies wherein production demands are to be met with supply of power from varied energy resources worldwide. There has been a clearer realization of the finite nature of oil resources and the ever higher pushing demand for energy. The world has yet to stabilize on the complex geopolitical undercurrents which influence the oil and gas production as well as supply strategies globally. Aruvian's R'search’s report – Analyzing the Energy Industry in United States - analyzes the scope of American energy production from varied traditional sources as well as the developing renewable energy sources. In view of understanding energy transactions, the report also studies the revenue returns for investors in various energy channels which manifest themselves in American energy demand and supply dynamics. In depth view has been provided in this report of US oil, electricity, natural gas, nuclear power, coal, wind, and hydroelectric sectors. The various geopolitical interests and intentions governing the exploitation, production, trade and supply of these resources for energy production has also been analyzed by this report in a non-partisan manner. The report starts with a descriptive base analysis of the characteristics of the global energy industry in terms of economic quantity of demand. The drivers of demand and the traditional resources which are used to fulfill this demand are explained along with the emerging mandate of nuclear energy.
    [Show full text]
  • Offshore Wind and Hydrogen: Solving the Integration Challenge
    OFFSHORE WIND AND HYDROGEN SOLVING THE INTEGRATION CHALLENGE OSW-H2: SOLVING THE INTEGRATION CHALLENGE 1 ACKNOWLEDGMENTS The study was jointly supported by the Offshore Wind Industry Council (OWIC) and Offshore Renewable Energy (ORE) Catapult, and delivered by ORE Catapult. The Offshore Wind Industry Council is a senior Government and industry forum established in 2013 to drive the development of the UK’s world- leading offshore wind sector. OWIC is responsible for overseeing implementation of the UK Offshore Wind Industrial Strategy. ORE Catapult is a not-for-profit research organisation, established in 2013 by the UK Government as one of a network of Catapults in high growth industries. It is the UK’s leading innovation centre for offshore renewable energy and helps to create UK economic benefit in the sector by helping to reduce the cost of offshore renewable energy, and support the growth of the industry. AUTHORS: ANGELIKI SPYROUDI KACPER STEFANIAK DAVID WALLACE STEPHANIE MANN GAVIN SMART ZEYNEP KURBAN The authors would like to thank a number of organisations and stakeholders for their support through Steering Committee and Expert Group meetings or individually. They include, in alphabetical order: Atkins (David Cole), BEIS (Tasnim Choudhury, Simone Cooper Searle, David Curran, Rose Galloway – Green, Fiona Mettam, Alan Morgan, Allan Taylor, Mark Taylor, Rita Wadey, Alex Weir) Committee on Climate Change (Mike Hemsley, David Joffe, Julia King), Crown Estate Scotland (Mark McKean), EDF Energy (David Acres), Energy Systems Catapult (Nick
    [Show full text]
  • Jp Elektroprivrede Hz Herceg Bosne
    Vjesnik JP ELEKTROPRIVREDE HZ HERCEG BOSNE CHE Čapljina – 30 godina www.ephzhb.ba INFORMATIVNO - STRUČNI LIST / Godina X. / Broj 44 / Mostar, srpanj 2009. Informativno-stručni list, Vjesnik Glavni i odgovorni urednik: JP Elektroprivreda HZ HB d.d., Mostar Vlatko Međugorac Izdaje: Uredništvo: Sektor za odnose s javnošću Vlatko Međugorac, Mira Radivojević, mr. sc. Irina Budimir, Vanda Rajić, Zoran Pavić Ulica dr. Mile Budaka 106A, Mostar tel.: 036 335-727 Naklada: 800 primjeraka faks: 036 335-779 e-mail: [email protected] Tisak: www.ephzhb.ba FRAM-ZIRAL, Mostar Rukopisi i fotografije se ne vraćaju. 2 INFORMATIVNO STRUČNI LIST JAVNOGA PODUZEĆA ELEKTROPRIVREDE HZ HERCEG BOSNE Sadržaj Novim informacijskim sustavom (SAP-om) do boljega poslovanja .......4 Održana VII. skupština Elektroprivrede HZ HB ................................7 Izvješće neovisnoga revizora ..................................................................8 str. 4 Potpisani ugovori o istražnim radovima na CHE Vrilo.......................10 Elektroprivreda i liberalizacija tržišta ..................................................11 30. rođendan CHE Čapljina ...............................................................13 Posjet njemačkoga veleposlanika i predstavnika KfW banke hidroelektrani Rama ............................................................................14 Primjena novih Općih uvjeta i Pravilnika o priključcima ....................16 HE Mostarsko Blato u izgradnji .........................................................17 str. 7 Uspješno provedena
    [Show full text]
  • Planning for Wind Energy
    Planning for Wind Energy Suzanne Rynne, AICP , Larry Flowers, Eric Lantz, and Erica Heller, AICP , Editors American Planning Association Planning Advisory Service Report Number 566 Planning for Wind Energy is the result of a collaborative part- search intern at APA; Kirstin Kuenzi is a research intern at nership among the American Planning Association (APA), APA; Joe MacDonald, aicp, was program development se- the National Renewable Energy Laboratory (NREL), the nior associate at APA; Ann F. Dillemuth, aicp, is a research American Wind Energy Association (AWEA), and Clarion associate and co-editor of PAS Memo at APA. Associates. Funding was provided by the U.S. Department The authors thank the many other individuals who con- of Energy under award number DE-EE0000717, as part of tributed to or supported this project, particularly the plan- the 20% Wind by 2030: Overcoming the Challenges funding ners, elected officials, and other stakeholders from case- opportunity. study communities who participated in interviews, shared The report was developed under the auspices of the Green documents and images, and reviewed drafts of the case Communities Research Center, one of APA’s National studies. Special thanks also goes to the project partners Centers for Planning. The Center engages in research, policy, who reviewed the entire report and provided thoughtful outreach, and education that advance green communities edits and comments, as well as the scoping symposium through planning. For more information, visit www.plan- participants who worked with APA and project partners to ning.org/nationalcenters/green/index.htm. APA’s National develop the outline for the report: James Andrews, utilities Centers for Planning conduct policy-relevant research and specialist at the San Francisco Public Utilities Commission; education involving community health, natural and man- Jennifer Banks, offshore wind and siting specialist at AWEA; made hazards, and green communities.
    [Show full text]
  • Northwest Ohio Aug 8 2013 OPSB App.Pdf
    568;1=.9; 6126 =25- /*84! 7*<3-250 ,6<5;>! 6126 *4.5-.- *LLHGA?NGKJ NK NFC 6FGK 7KQCM 9GNGJE +K?MB /KM ? ,CMNGDGA?NC KD .JPGMKJICJN?H ,KIL?NG@GHGNR ?JB 7O@HGA 5CCB 9O@IGNNCB +R 568;1=.9; 6126 =25- .5.80>! 33, ,*9. 56" $&"#$)'".3"+05 *4.5-.- *7732,*;265 *<0<9; (! %#$& August 8, 2013 COLUMBUS I CLEVELAND Ms. Betty McCauly CINCINNATI-DAYTON Administration/Docketing MARIETTA Ohio Power Siting Board th BRICKER&ECKLERLLP 180 East Broad Street, 11 Floor 100 South Third Street Columbus, OH 43215-4291 Columbus, Ohio 43215-3793 MAIN: 614.227.2300 FAX: 614.227.2390 Re: Northwest Ohio Wind Energy www.bricker.com Case No. 13-197-EL-BGN [email protected] Dear Ms. McCauly: Sally W. Bloomfield 614.227.2368 [email protected] Enclosed, please find an original and five copies of the Amended Application of Northwest Ohio Wind Energy for a Certificate of Environmental Compatibility and Public Need under Chapter 4906-17 of the Ohio Administrative Code (OAC). Pursuant to OAC 4906-5-03(A)(3), the applicant makes the following declarations: Name of Applicant: Northwest Ohio Wind Energy LLC c/o National Wind, LLC 706 Second Avenue South, Suite 1200 Minneapolis, MN 55402 Name/Location of Proposed Facility: Northwest Ohio Wind Energy wind farm Townships of Blue Creek and Latty Paulding County, Ohio Authorized Representative Technical: Marcus V. da Cunha National Wind LLC 706 Second Avenue South, Suite 1200 Minneapolis, MN 55402 Telephone: (612) 746-6617 E-Mail: [email protected] 6555997v1 #2/-0.2 ! $-01.2 "**'(&$,) "* %"+ Ms.
    [Show full text]
  • U.S. Offshore Wind Power Economic Impact Assessment
    U.S. Offshore Wind Power Economic Impact Assessment Issue Date | March 2020 Prepared By American Wind Energy Association Table of Contents Executive Summary ............................................................................................................................................................................. 1 Introduction .......................................................................................................................................................................................... 2 Current Status of U.S. Offshore Wind .......................................................................................................................................................... 2 Lessons from Land-based Wind ...................................................................................................................................................................... 3 Announced Investments in Domestic Infrastructure ............................................................................................................................ 5 Methodology ......................................................................................................................................................................................... 7 Input Assumptions ............................................................................................................................................................................................... 7 Modeling Tool ........................................................................................................................................................................................................
    [Show full text]
  • IFA2 Latest: Leading Consultants Arcadis Appointed to Complete Airfield Assessment at Daedalus
    Investors Home Press Releases Media Contacts Home / Press Releases / IFA2 latest: Leading consultants Arcadis appointed to complete airfield assessment at Daedalus Independent compatibility study announced by National Grid IFA2 Ltd for proposed project at Daedalus site 28 Jul 2016 Leading consultants Arcadis appointed to help ensure IFA2 energy project can coexist with airport operations at the Daedalus site Assessment commissioned by National Grid IFA2 Ltd in conjunction with land owner Fareham Borough Council Assessment will be carried out between July and September 2016 Expert consultants have been hired to help ensure that proposed cross channel energy link IFA2 can operate alongside the Solent Airport at Daedalus. National Grid IFA2 Ltd, in conjunction with land owner Fareham Borough Council have appointed leading consultants Arcadis to carry out an independent assessment looking at how the IFA2 electricity interconnector would operate alongside the Solent Airport at the Daedalus site in Lee-on-the-Solent, Hampshire. National Grid IFA2 Ltd is proposing to lease land at Daedalus for the British part of its proposed IFA2 project, which would help boost access to safe, reliable, affordable energy supplies by providing a new energy link with France. Arcadis have been commissioned to carry out the assessment to ensure that the interconnector will be able to coexist with site owner Fareham Borough Council’s Vision for Daedalus and won’t adversely affect operations at the airport. Arcadis will start work on their assessment this month with the report due to be completed in September 2016. Morris Bray, from National Grid IFA2, who helped commission the assessment, said: “This independent assessment should help provide reassurance that our proposals won’t affect Fareham Borough Council’s Vision for Daedalus including its continued use as an operational airport.” Stef Scannali, Arcadis Head of Safety Risk Management, said: “We’re delighted to be supporting National Grid IFA2 Ltd and Fareham Borough Council on this vital project.
    [Show full text]
  • US Offshore Wind Energy
    U.S. Offshore Wind Energy: A Path Forward A Working Paper of the U.S. Offshore Wind Collaborative October 2009 Contributing Authors Steven Clarke, Massachusetts Department of Energy Resources Fara Courtney, U.S. Offshore Wind Collaborative Katherine Dykes, MIT Laurie Jodziewicz, American Wind Energy Association Greg Watson, Massachusetts Executive Office of Energy and Environmental Affairs and Massachusetts Technology Collaborative Working Paper Reviewers The Steering Committee and Board of the U.S. Offshore Wind Collaborative owe a debt of gratitude to the following individuals for their careful and thoughtful review of this Working Paper and for offering their invaluable comments and suggestions. Walter Cruikshank, U.S. Department of the Interior Soren Houmoller, 1st Mile (DK) Chris Jenner, RPS Group (UK) Jim Manwell, University of Massachusetts Walt Musial, ex officio, National Renewable Energy Laboratory Bonnie Ram, Energetics USOWC Board of Directors Jack Clarke, Mass Audubon Steve Connors, Massachusetts Institute of Technology John Hummer, Great Lakes Commission Laurie Jodziewicz, American Wind Energy Association Jim Lyons, Novus Energy Partners Jeff Peterson, New York State Energy Research and Development Authority John Rogers, Union of Concerned Scientists Mark Sinclair, Clean Energy States Alliance Greg Watson, Massachusetts Executive Office of Energy and Environmental Affairs and Massachusetts Technology Collaborative Walt Musial, ex officio, National Renewable Energy Laboratory Cover: The Middelgrunden offshore wind farm in
    [Show full text]
  • Report from the Consultation Session
    REPORT FROM THE CONSULTATION SESSION DECEMBER 2017 Summary Upon invitation, a group of 30 industry representatives gathered in Amsterdam on 30 November 2017 to discuss the NSWPH vision and solution for the future offshore wind and onshore grid challenges. This was an opportunity to create a common understanding on the vision and discuss first findings from detailed studies by the consortium on the Hub & Spoke and Hub as an Island concepts. New partners to the consortium bring relevant expertise on Power to Gas (Gasunie) and port development and land reclamation (Port of Rotterdam). The visionary NSWPH project creates excitement with policy makers. It covers five important policy dimensions i) regional cooperation ii) internal market iii) energy efficiency iv) climate action and v) innovation and competitiveness. Feedback from industry participants Provide more information about the timeline. Be clear about the end game, provide a roadmap (or ‘staircase’) up to 2050. Include a more prominent ‘German angle’, building on existing experience with further offshore wind clusters. Consider UK representation in the consortium. Focus on the system economic perspective of this solution and not the LCoE. Start from functional specification and invite market parties to develop designs / solutions. Be open to other solutions e.g. consider enhancing or reuse of existing infrastructure. A hub as an island does not create a nearshore environment. The biggest advantage for wind farm developers would be the island to turbine distance. Wind farm O&M is not a driver for an Ijmuiden Ver island solution. The case for Power to Gas on a NSWPH island was not highlighted in the presentation.
    [Show full text]
  • Reforming the Electricity Market
    HOUSE OF LORDS Select Committee on Economic Affairs 2nd Report of Session 2016–17 The Price of Power: Reforming the Electricity Market Ordered to be printed 8 February 2017 and published 24 February 2017 Published by the Authority of the House of Lords HL Paper 113 Select Committee on Economic Affairs The Economic Affairs Committee was appointed by the House of Lords in this session “to consider economic affairs”. Membership The Members of the Select Committee on Economic Affairs are: Baroness Bowles of Berkhamsted Lord Layard Lord Burns Lord Livermore Lord Darling of Roulanish Lord Sharkey Lord Forsyth of Drumlean Lord Tugendhat Lord Hollick (Chairman) Lord Turnbull Lord Kerr of Kinlochard Baroness Wheatcroft Lord Lamont of Lerwick Declaration of interests See Appendix 1. A full list of Members’ interests can be found in the Register of Lords’ Interests: http://www.parliament.uk/mps-lords-and-offices/standards-and-interests/register-of-lords- interests Publications All publications of the Committee are available at: http://www.parliament.uk/hleconomicaffairs Parliament Live Live coverage of debates and public sessions of the Committee’s meetings are available at: http://www.parliamentlive.tv Further information Further information about the House of Lords and its Committees, including guidance to witnesses, details of current inquiries and forthcoming meetings is available at: http://www.parliament.uk/business/lords Committee staff The staff who worked on this inquiry were Ayeesha Waller (Clerk), Ben McNamee (Policy Analyst), Oswin Taylor (Committee Assistant) and Dr Aaron Goater and Dr Jonathan Wentworth of the Parliamentary Office of Science and Technology. Contact details All correspondence should be addressed to the Clerk of the Economic Affairs Committee, Committee Office, House of Lords, London SW1A 0PW.
    [Show full text]
  • Empire Offshore Wind LLC Empire Wind 1 Project Article VII
    Empire Offshore Wind LLC Empire Wind 1 Project Article VII Application Pre-Filed Direct Testimony June 2021 PRE-FILED DIRECT TESTIMONY Pre-filed direct testimony in support of the Article VII Application for the Empire Wind 1 Project is presented by witnesses by subject area, as follows: Witness Exhibit(s) Sponsored Laura Morales Exhibit 1: General Information Regarding Application Laura Morales, Nathalie Schils Exhibit 2: Location of Facilities Laura Morales, Joel Stadell, Exhibit 3: Alternatives Sabrina Hepburn Laura Morales, Joel Stadell, Exhibit 4: Environmental Impact Sabrina Hepburn, Robert Jacoby, Katherine Miller, June Mire, Ryan Earley Joel Stadell Exhibit 5: Design Drawings Julia Bovey, Geir Miskov, Joel Exhibit 6: Economic Effects of Proposed Facility Stadell Laura Morales, Joel Stadell, Exhibit 7: Local Ordinances Sabrina Hepburn Laura Morales, Nathalie Schils Exhibit 8: Other Pending Filings Geir Miskov, Joel Stadell Exhibit 9: Cost of Proposed Facility Joel Stadell Exhibit E-1: Description of Proposed Transmission Facility Joel Stadell Exhibit E-2: Other Facilities Joel Stadell Exhibit E-3: Underground Construction Georges Charles, Joel Stadell Exhibit E-4: Engineering Justification Laura Morales, Sabrina Hepburn Exhibit E-5: Effect on Communications Laura Morales, Sabrina Hepburn, Exhibit E-6: Effect on Transportation Joel Stadell, Ryan Earley Laura Morales, Erin Lincoln Appendix B: Sediment Transport Analysis Empire Wind 1 Project Pre-Filed Direct Testimony Article VII Application Witness Exhibit(s) Sponsored Laura Morales, Katherine Miller Appendix C: Coastal Zone Management Consistency Statement Julia Bovey Appendix D: Public Involvement Plan Laura Morales, June Mire Appendix E: Benthic Resource Characterization Reports Benjamin R.T. Cotts and William Appendix F: Electric- and Magnetic-Field Assessment H.
    [Show full text]