Virginia Jumping in to Offshore Wind
In late February, the Associated Press reported that the Minerals Management Service received proposals from two Virginia companies for leases on the outer continental shelf to develop offshore wind farms. Apex Wind Energy Inc. is proposing to lease 116,000 acres for an undetermined number of wind turbines with the potential to generate up to 1,500 megawatts of power, and Seawind Renewable Energy Corp. envisions building 240 turbines to generate enough power for more than 250,000 homes annually, according to a company statement.
Both wind farms would be located 12 miles off of Virginia Beach.
The Virginia Offshore Wind Coalition estimates the development of a wind power hub in Virginia has the potential to become an $80 billion industry creating more than 10,000 jobs. Coalition members include the Cities of Virginia Beach and Norfolk, Apex Offshore Wind, AREVA, BAE Systems Ship Repair, Colonna’s Shipyard, Dominion Virginia Power, Earl Energy, Fugro Atlantic, Old Dominion Electric Cooperative, Science Applications International Corporation, Seawind Renewable Energy Corporation, Weeks Marine and W. F. Magann.
Michigan GLOW Council Issues Legislative Recommendations for Offshore Wind
Michigan's Great Lakes Wind Council (GLOW Council), an advisory body within the Michigan Department of Energy, Labor & Economic Growth to examine issues and make recommendations related to offshore wind development in Michigan, has issued recommendations for a regulatory framework for offshore wind in Michigan's Great Lakes. These recommendations follow the GLOW Council's September 1, 2009 report (see previous blog entry), which contained proposed steps forward to developing an offshore wind industry in Michigan.
The recommendations, dated March 3, 2010, include a process that the Council recommends for inclusion in any bill introduced into the legislature to regulate offshore wind energy development in the Great Lakes, as well as recommendations for changes to transmission siting laws when the transmission relates to service of an offshore wind energy development.
Michigan Announces $1.3M in Grants for Offshore Wind Research
On February 8, 2010, the Michigan Public Service Commission issued an order approving $1.6 million in Michigan Energy Efficiency grants, $1.3 million of which will go to Grand Valley State University, Michigan Alternative and Renewable Energy Center, in partnership with the University of Michigan Memorial Phoenix Energy Institute to conduct and/or perform studies to explore the feasibility of deployment of offshore wind technologies in Michigan.
The grants are part of the Low‑Income and Energy Efficiency Fund, which provides energy bill assistance for low‑income customers and promotes the efficient use of energy by all customer classes.
Cuyahoga County Issues RFP for Studies on Lake Erie
On January 21, 2010, the Great Lakes Energy Development Task Force, under the authority of Cuyahoga County, issued a Request for Proposals to agencies and organizations interested in providing Avian and Bat ecological studies. The studies supplement the Task Force's Feasibility Study for an early stage commercial deployment project consisting of up to eight (8) turbines with total rated capacity at 20 MW for a Lake Erie Wind Power Project near the water intake crib of the City of Cleveland, Ohio.
Completed proposals must be submitted to the Cuyahoga County Office of Procurement and Diversity, no later than 11:00 a.m. on February 22, 2010.
New York Power Authority issues RFP for Great Lakes Wind
Earlier this week, the New York Power Authority issued a Request for Proposals for the development of offshore wind projects in either Lake Ontario or Lake Erie. The Power Authority is soliciting proposals for the development of a utility scale, offshore wind power project in the range of 120 to 500 MW. The date for submitting an optional Notice of Intent to submit a proposal is March 20, 2010. Questions about the RFP will be accepted until April 9, 2010. The due date for proposals is June 1, 2010. Any winning project(s) would be expected to be awarded by December 2010. The target date for completion of the power purchase agreement (PPA) negotiations is May 31, 2011. Prospective developers are encouraged to periodically check the NYPA website to see if there are any modifications to the dates.
The RFP can be accessed directly through the NYPA website.
Maryland Jumps Into Offshore Wind
The Maryland Energy Administration has issued a Request for Expression of Information and Interest to gather information from industry representatives on the potential for offshore wind development in the state. The MEA is also simultaneously initiating a study to evaluate opportunities for offshore wind energy on the Maryland coast (state waters) and the Outer Continental Shelf (federal waters). This study will "assess the viability of offshore wind energy generation and build on important marine spatial planning work being currently developed by the Maryland Department of Natural Resources and The Nature Conservancy."
Under Maryland's Renewable Portfolio Standard, at least 20 percent of the retail sales of electricity in the state must come from renewable resources by 2022. Responses to the REII are due by January 31, 2010. Prospective developers interested in participating in the strategy process must submit a response to the MEA by February 28, 2010.
Michigan's Great Lakes Wind Council Finalizes Offshore Report
On September 1, 2009, the Great Lakes Wind Council, created by Michigan Governor Jennifer Granholm in February 2009, issued its final report to the Governor. The intended purpose of the report is to identify criteria that can be used to review applications for offshore wind development in the Great Lakes, and to identify criteria for identifying and mapping areas that should be categorically excluded from offshore wind development as well as those areas that are most favorable to such development.
Recommendations contained in the report include a set of criteria (broken out into most favorable areas, conditional areas, and categorical exclusion areas) to identify and map prudent siting for offshore wind, legislative and rule changes to establish a bottomland leasing process, the state ask the U.S. Army Corps of Engineers prepare a Programmatic Environmental Impact Statement, and the Public Service Commission convene a forum to work with stakeholders on the economic analysis of different policy scenarios.
The report further recommends exclusion of offshore wind permits and leases from Part 325 of Michigan’s Natural Resources and Environmental Protection Act, clarification of state law to provide for offshore waters to be included in the public trust, and creation of a new statute governing offshore wind that would outline application requirements, permit review criteria, site assessment requirements, construction and operation plans requirements, decommissioning plans, and uses of funds by the state.
Interior Issues Limited Leases for Offshore Wind Projects
On June 23, 2009, the Minerals Management Service, a division within the U.S. Department of Interior, issued five limited leases to offshore wind energy developers for wind data collection on the Outer Continental Shelf. These leases will allow for the construction of meteorological towers to collect site-specific data on wind speed, intensity, and direction. The data collected under these leases will be shared with the MMS, and "used to inform and support future commercial renewable energy projects, such as wind turbine farms, to help coastal States meet mandated renewable energy portfolio standards."
The leases were issued to Deepwater Wind (two locations off the coast of New Jersey), Bluewater Wind (one location off New Jersey, one location off Delaware), and Fishermen's Energy (one location off New Jersey).
Rhode Island Legislation Proposed to Move Offshore Wind Forward
Rhode Island has introduced legislation to encourage offshore wind development. Under the draft bill, the state's largest electricity supplier, National Grid, would be required to purchase the energy output from an offshore wind project proposed by the state's selected preferred offshore wind developer, Deepwater Wind. National Grid has said that it supports the proposal, under which it would be permitted to collect a payment from its customers equal to around 3 percent of the value of the renewable energy contracts it signs.
