Wind Energy 101 for Southeastern Policy Makers Overview of Wind Energy Development and Potential in the US Jim Doane, Senior Engineer March 2012, Charlotte, North Carolina, USA Agenda Introduction to PMSS Onshore Wind in the US Offshore Wind Energy o Basics o Potential for the US Conclusions 1
Our Experience There is no substitute for experience; from conception to operations, our consultants know the renewable energy business inside and out. zero 90 1000 40,000 accidents percent onshore wind projects megawatts Accidents or lost time incidents in over 18 years of trading of Europe s installed offshore wind capacity has had input from PMSS Successful onshore wind projects completed across 6 continents of offshore wind project experience throughout Europe, Asia Pacific and North America Onshore Wind Energy 2
Onshore Wind Energy A typical onshore wind farm: Consist of multiple utility scale turbines Turbines are connected in strings back to substation Substation is connected to the main grid Factors that are considered when siting an onshore wind farm: Wind, Wires, and Land Wind Wind Resource Wires Proximity to Grid Land Available Land Source: Nayxa Energy Services Onshore Wind Energy An excellent wind resource has allowed onshore wind energy development to prosper in the US. The best wind resource in the US can be found in the Midwest; A good wind resource and favorable local policy has spurred a great deal of development in these states; To date, there has not been much wind energy development in the Southeastern states onshore. Source: AWEA Q4 2011 Report 3
Onshore Wind Energy Wind energy capacity in the US has grown considerably in the past few years... 50,000 45,000 ~47 GW Total 40,000 35,000 Cumulative Installed Annually 30,000 Megawatts 25,000 20,000 15,000 10,000 5,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Map Source: AWEA Quarterly Report Q42011 Offshore Wind Energy 4
Differences from Onshore There are several elements that differentiate offshore wind from onshore: Installation specialized vessels are necessary Design Loads in addition to wind, need to consider waves, current, and ice Foundations several different options based upon onsite conditions Access can be more difficult due to reliance on sea state All of these factors contribute to the cost and complexity of offshore projects $3 5M/MW vs. $1.5M/MW Source: Renewable UK Offshore Wind Installation The installation of an offshore wind farm is more complex and costly than onshore: Specialized vessels and equipment required Limited availability and long lead times Need to mobilize vessels from overseas, high dayrates increases install costs Jones Act adds further complexity 5
Offshore Wind Foundations The choice of foundation for an offshore wind turbine is dictated by the onsite meteorological and oceanic conditions, geology and water depth, as well as the turbine size: Monopiles Steel cylinder, currently the most common foundation, limited to shallower depths and smaller turbines Gravity Based Steel and concrete structure, limited to shallower depths, complex to construct and install Jacket Structure Steel lattice structure, less sensitive to water depth and turbine weight Monopile Gravity Base Jacket Structure Offshore Access During the operational phase, performance is strongly linked with accessibility. Technicians need to access the turbine regularly Turbines are most commonly accessed by crew boat Access limited to sea states with waves less than 1.5m Access gets harder in the winter time when conditions worsen As a result: Longer down times, more complex repairs Traditionally, the availability of offshore farms has been lower than for onshore projects Options are being explored to help improve accessibility and response time: Floatels and manned platforms will improve response time by providing onsite staging areas Novel means of transferring personnel to turbines will help improve accessibility To improve performance and safety, operations need to be considered as early as possible during the design phase. 6
Extreme Weather Conditions Hurricanes represent a major design consideration for the Southeastern US: IEC Class 1 turbines are designed to withstand up to a Class 3 hurricane In general, risks will have to be mitigated through insurance: Repairing/ replacing damaged equipment Loss of production due to plant downtime Tracks for Category 3+ Hurricanes Dating back to 1879 Source: NOAA Attributes of Offshore Wind Offshore wind has a number of advantages which make it an attractive option: Excellent Wind Resource Proximity to Load Centers Larger Project Capacities Coincidence with Peak Load 7
Offshore Potential in North Carolina An estimate of the offshore wind energy potential for North Carolina: Considering waters within 50nm of shore Assumes one 5MW turbine per km 2 Wind Speed [m/s] Area [km 2 ] Capacity [MW] 7.0 7.5 1,847 9,237 7.5 8.0 4,098 20,491 8.0 8.5 13,655 68,274 8.5 9.0 39,875 199,374 9.0 9.5 16 80 Total 59,491 297,456 Source: NREL Offshore Wind Energy Potential Offshore Potential in the States An estimate of the offshore wind energy potential for the US: 4,150 Gigawatts of total potential in the US Waters within 50nm of shore and the US waters in the Great Lakes Not all accessible with current technology Wind Speed [m/s] Area [km 2 ] Capacity [MW] 7.0 7.5 108,102 540,510 7.5 8.0 174,040 870,202 8.0 8.5 201,159 1,005,795 8.5 9.0 189,213 946,063 9.0 9.5 74,888 374,441 9.5 10.0 64,856 324,282 >10.0 17,805 89,024 Total 830,064 4,150,319 Source: NREL Offshore Wind Energy Potential 8
Proximity to Load Centers Offshore wind is a renewable energy resource that is close to the US s major load centers The majority of the US population lives in close proximity to the coast. These costal areas represent the regions with the greatest electricity demand, and existing electrical infrastructure. Our offshore wind resource can help satisfy the energy demand of many of the US major metropolitan areas. Larger Projects are Possible Offshore Offshore projects can utilize larger turbines The largest onshore turbines are around 3MW Onshore projects face limitations transporting larger components; it is easier to transfer large components offshore The next generation of offshore wind turbines is on the order of 6 7MW in size 9
Load Matching Energy production from offshore wind can help to meet peak demand Onshore wind production is typically greatest at night, when the load is minimal The heaviest loads in the eastern US occur during the warm season, when sea breeze is most prevalent Offshore wind facilities that are able to capture this sea breeze will help to meet peak power demand Source: Freedman et al, 2009 Offshore Wind Power Production and the Sea Breeze Circulation Conclusions In summary... Offshore wind is more complex and costly to implement than onshore wind However, offshore wind energy has some unique benefits that make it a viable source of renewable energy Our offshore wind resource holds a great deal of potential for developing a thriving offshore wind energy sector 10
Thank You Jim Doane Senior Engineer PMSS America, Inc. 590 Madison Avenue 18 th Floor New York, NY 10022 Tel: +1 212 521 4161 Cell: +1 917 975 8900 7 April 2010 Copenhagen www.pmss.com Email: jdo@pmss.com 21 11