NRG Bluewater Wind Signs Non-Competitive Agreement for Delaware Offshore Wind
NRG Bluewater Wind won the exclusive rights to negotiate with the federal government to build an offshore wind farm off the Delaware coast on March 24, 2011. As the first developer to enter into the “Smart from the Start” program released by the BOEMRE on February 7, 2011, NRG Bluewater Wind signed a non-competitive lease agreement for a proposed 450 MW offshore wind energy facility.
The reason for non-competitive lease? After the DOI released a RFI on April 26, 2010, only two commercial parties submitted interest, Occidental Development & Equities, LLC and NRG Bluewater Wind. The RFI, reviewed by the BOEMRE, invited submissions for interested parties to obtain one or more commercial leases for the construction of a wind energy project(s) on the Outer Continental Shelf (OCS) offshore Delaware. Subsequently BOEMRE determined that Occidental’s proposal “lacked development, construction, operation and maintenance or decommissioning cost details,” and as a result was rejected by the committee.
NRG Bluewater Wind has had their eye on the project since 2006, after Delaware's signed a RPS into law, requiring that 10% of the state's electricity come from renewable sources by 2018. In June and July of 2008 NRG Bluewater Wind and Delmarva Power finalized a 25 – year PPA for up to 200 MW. The project proposes 49 large turbines and 150 smaller ones approximately 13.2 miles off the Delaware coast. The contract requires the turbines start producing electricity no later than 2016. (NRG timeline link below)
The future is still unknown. Although the non-competitive lease agreement is in place, there are a whole slew of rigorous environmental reviews and an extensive permitting process at the federal, state, and local level. Ironically, the goal of “Smart from the Start” program was to cut, in half, the time associated with permitting processes. Optimistically, NRG Bluewater Wind allotted 12 – 24 months for permitting into the timeline. However, if Cape Wind can provide any insight to construction and operation, NRG Bluewater Wind may be in for a long ride.
For more information on BOEMRE announcement: http://www.doi.gov/news/pressreleases/Interior-Initiates-Process-for-First-Smart-from-the-Start-Lease-for-Commercial-Wind-Power-Offshore-Delaware.cfm
NRG Bluewater Timeline: http://www.bluewaterwind.com/de_timeline.htm
“Smart from the Start” http://www.doi.gov/news/pressreleases/loader.cfm?csModule=security/getfile&PageID=186636
RFI: http://www.boemre.gov/offshore/PDFs/FinalDelawareRFI.pdf
DOE: $25 M for Solid State Lighting
The DOE announced that it will allocate $25 million to two Solid-State Lighting (“SSL”) funding opportunities to advance R&D and market adoption of SSL technology. TThis will be the seventh round of such funding that has been awarded in recent years.
Funding is subject to congressional appropriations and will focus on the following:
$15M for core technology projects demonstrating efficiency, performance, and cost targets. Selected projects will fill technology gaps or provide enabling knowledge or data.
$10 million for product development projects using existing technology or research to develop or improve commercially viable materials, devices, or systems, meeting certain performance parameters.
To view the complete SSL Core Technology Research (Round 7) funding opportunity, visit FedConnect, click on "Search Public Opportunities," and search on Reference Number DE-FOA-0000329.
To view the complete SSL Product Development (Round 7) funding opportunity, visit FedConnect, click on "Search Public Opportunities," and search on Reference Number DE-FOA-0000330.
For more information on DOE's Solid State Lighting Program, visit the Solid-State Lighting Web site.
ARRA SGIG Grants Taxable?
Concern is mounting over whether the smart grid awards and project grants to be distributed by the Department of Energy (“DOE”) will be taxable in the hands of the recipients. Certain grants administered by federal, state, or local programs for renewable energy projects located in the US may be reportable by the recipient. The 100 smart grid award recipients, who are waiting for their share of the promised $3.4 billion from the DOE, are anxious to resolve this issue as many of them prepared their budgets (and the DOE may have made the awards) on the assumption that the awards were going to be tax-exempt.
The DOE is working closely with the awardees and the Treasury Department to reach resolution and hopes to provide guidance shortly. We’ll be following this story closely – stay tuned for developments.
DOE Awards $620 Million for Smart Grid and Energy Storage Projects
Yesterday, DOE announced awards of $620 million in American Recovery and Reinvestment Act (“ARRA”) funds for Smart Grid demonstration projects and large-scale energy storage systems. The $620 million is broken down as follows:
• $435 million to support 16 fully integrated, regional Smart Grid demonstrations in 21 states, representing over 50 utilities and electricity organizations with a combined customer base of almost 100 million consumers. The Smart Grid demonstration projects incorporate smart meters, distribution and transmission system monitoring devices and DOE wants the awardees to be role models for the deployment of integrated Smart Grid systems on a broader scale. An additional $1 billion will come from the private sector for a total of $1.6 billion in Smart Grid projects nationally.
• $185 million to fund 16 utility-scale energy storage projects including advanced battery system, flywheels, and compressed air energy systems.
A copy of the DOE’s press release can be found at http://www.energy.gov/news2009/8305.htm
Show Me the Money: DOE To Announce 100 Smart Grid Awards Today
Later today, the Department of Energy will announce the 100 smart grid projects that will receive smart grid stimulus finds. A complete list of the awards should be available later today; three have been announced early:
- Baltimore Gas and Electric: $200,000,000 from DOE and $251,000,000 from other sources
- Sempra Energy: $28,000,000 and $31,000,000 from other sources
- Cobb Electric Membership Corp. (Marietta, GA): $16,000,000 – no information on additional funding requirements
The DOE reported that the quality of the applications were extremely high. The ratio of applications to grants was 4:1 and the funding requested was 5 times the amount that was available.
