Maine Seeks to Assert Itself as Leader in Offshore Energy
In recent months, the State of Maine has sought the spotlight in the offshore renewable energy space. This entry summarizes three major events that have marked the state's move toward a leadership role.
Maine Signs MOU with Nova Scotia
On July 12, 2010, Governor John E. Baldacci signed a Memorandum of Understanding (“MOU”) with Nova Scotia Premier Darrell Dexter to work cooperatively on renewable ocean energy development. Many similar memoranda have been signed between states and federal agencies in the United States, but this is the first that reaches beyond the Nation’s borders. The MOU states that the two governments will work together to advance tidal and offshore wind development efforts by furthering academic research in the area and establishing a formal council to “work together to shape the region’s leadership position in this important new area of renewable energy development.” Although largely a “plan to start planning,” the MOU demonstrates the State of Maine’s desire to be on the leading edge of offshore energy policy and development.
ORPC Reports Successful Test of Commercial-Sized Underwater Turbine
On August 18, 2010, Ocean Renewable Power Company (“ORPC”) reported that its Beta Power System has successfully generated grid-compatible power from tidal currents. The 60 kW Turbine Generator Unit met or exceeded ORPC’s expectations for testing at a range of current velocities. The company will use the data gathered to complete the design of its 150 kW TidGen Power System, which is scheduled for installation in Eastport, Maine in late 2011, and will interconnect to the New England grid through the Bangor Hydro Electric Company system. The TidGen Power System will generate enough electricity to power 50-75 homes.
The full text of ORPC's press release can be found here.
Maine PUC Seeks Proposals for Offshore Wind & Tidal Energy
Following on the heels of ORPC’s announcement, the Maine Public Utilities Commission (“PUC”) announced on September 1, 2010, that it is seeking proposals for long-term (20-year) contracts to supply energy and renewable energy credits from one or more offshore wind energy pilot projects or tidal energy demonstration projects. The PUC is looking for a wind developer with experience relevant to the construction and operation of floating wind turbines and has the potential to construct a deep-water (300 feet or more) offshore wind energy project of at least 100 MW in the future. Any proposed tidal energy demonstration project must have a total installed generating capacity of 5 MW or less.
Proposals will be due on or before May 1, 2011. The full text of the request for proposals ("RFP") can be found here.
Utah's Salt Lake County Will Announce a Solar Project RFP on May 14, 2010
On May 14, 2010, Salt Lake County, Utah will be releasing a Request for Proposals (“RFP”) for a 1 MW solar project. If your company is interested in receiving the RFP as soon as it is released, you should register with BidSync (registration is free).
About the Solar Project:
It is anticipated that the initial solar project will include three County facilities (Salt Palace Convention Center, Environmental Health, and the Riverton Senior Center) with solar installations totaling approximately 1 MW. This solar project will utilize a power purchase agreement (“PPA”) financing model. It will also employ public and private capital, Federal grants, and public/private subsidized bonds that are able to work together efficiently because of the recent Stimulus Bill. The project also makes use of recent changes to Federal tax rules, and the recent re-awakening of private capital markets that make a significant public-private partnership possible. The County is working to coordinate these financial resources to make them easily accessible. More details will be available in the RFP. Longer term, Salt Lake County Mayor Peter Corroon has set a goal to install 10 MW of solar on as many county-owned facilities as possible.
PPAs and Third-Party Financing Now an Option in Utah:
In 2010, with the passage of HB 145 – Renewable Energy Financing Provisions, Utah enabled third-party financing of renewable energy systems for the following entities: a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status. Significantly, this recent legislation clarified that certain third-party financing arrangements are exempt from regulation by the Utah Public Service Commission, which is consistent with how these arrangements are viewed in several other states across the country. This clarification will now open the door for more innovative financing for renewable energy technologies, which has the ability to remove the upfront cost hurdles of capital intensive investments and offer an attractive bundle of services, including: design, installation, financing (including monetizing tax benefits), permitting and interconnection, maintenance, etc.
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.
