Economic Impact & Financing

U.S. Jones Act Compliant Offshore Wind Turbine Installation Vessel Study

Source/Sponsor: 
NYSERDA, MassCEC, MADOER, RI Office of Energy Resources, Clean Energy States Alliance
Creator/Author: 
GustoMSC
Description: 

The U.S. Jones Act Compliant Offshore Wind Turbine Installation Vessel Study examines the functional requirements and costs of constructing purpose-built vessels that would comply with the U.S. Jones Act and meet the needs of the U.S. offshore wind industry. The Jones Act requires any vessel transporting cargo between U.S. ports, or between U.S. ports and offshore facilities, be built and flagged in the U.S. The study presents designs for two Jones Act compliant vessel options: a wind turbine installation vessel and a feeder barge. Estimating packages were sent to multiple U.S. shipyards and indicative prices of $222 million for the wind turbine installation vessel and $87 million for feeder barge were received. Using the cost data, a business model was created that showed 10-years of work, or a pipeline of approximately 3,500 to 4,000 megawatts of offshore wind capacity (roughly equivalent to the expected low regional offshore wind deployment trajectory), would provide the owner of a wind turbine installation vessel with a reasonable rate of return.

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Publication Date: 
Thursday, November 2, 2017
8 MB
Resource Type: 
Document

U.S. Job Creation in Offshore Wind Report

Source/Sponsor: 
NYSERDA, MassCEC, MADOER, RI Office of Energy Resources, Clean Energy States Alliance
Creator/Author: 
BVG Associates Limited
Description: 

The U.S. Job Creation in Offshore Wind report quantifies the job impacts of offshore wind development and specifies the types of jobs to be created. A high market scenario of 8,000 megawatts by 2030 would yield a peak of over 16,000 full-time equivalent (FTE) baseline jobs in the U.S. in 2028, with baseline jobs being ones for which there are no compelling reasons why the work would not be performed by U.S. workers. The jobs most likely to be performed in the U.S. include project development and management, supply and installation of electrical substations and subsea cable, and wind farm operation and maintenance. Additional jobs are also possible, with manufacturing jobs seen as the sector with the greatest potential. When the additional jobs that have a high or medium probability of being performed in the U.S. are included, the number of U.S. jobs would climb to over 36,000 FTE annually between 2026 and 2028. A low market scenario of 4,000 megawatts would create roughly half as many baseline jobs as the high scenario and a smaller proportion of high or medium probability jobs. The high scenario would also trigger more investment in new factories and vessels in the US.

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Publication Date: 
Thursday, November 2, 2017
3 MB
Resource Type: 
Document

Northeast Offshore Wind Regional Market Characterization Report

Source/Sponsor: 
NYSERDA, MassCEC, MADOER, RI Office of Energy Resources, Clean Energy States Alliance
Creator/Author: 
Sustainable Energy Advantage, LLC
Description: 

The Northeast Offshore Wind Regional Market Characterization report identifies the opportunities and challenges that will shape the offshore wind market. It estimates the scale of potential offshore wind deployment to serve Northeast markets through 2030, given the nature of the offshore wind resource, federal lease opportunities, state policies, regional energy needs, existing electricity generation and planned retirements, and transmission capacity. The report finds that a low regional deployment trajectory could lead to 4,000 megawatts of offshore wind generation by 2030 off the Atlantic coast of the Northeast. A high regional deployment trajectory could lead to nearly 8,000 megawatts, which could power almost four million homes. The report also provides background information on topics ranging from interconnection infrastructure and permitting timelines to electricity markets and relevant public policies.

pdf
Publication Date: 
Thursday, November 2, 2017
5 MB
Resource Type: 
Document

2016 Offshore Wind Technologies Market Report Released by DOE

Source/Sponsor: 
U.S. Department of Energy
Creator/Author: 
Office of Energy Efficiency and Renewable Energy
Description: 
The 2016 Offshore Wind Technologies Market Report was developed by the National Renewable Energy Laboratory (NREL) for the U.S. Department of Energy (DOE) and is intended to provide offshore wind policymakers, regulators, developers, researchers, engineers, financiers, and supply chain participants, with quantitative information about the offshore wind market, technology, and cost trends in the United States and worldwide. 
 
In particular, this report is intended to provide detailed information on the domestic offshore wind industry to provide context to help navigate technical and market barriers and opportunities. The scope of the report covers the status of the 111 operating offshore wind projects in the global fleet through December 31, 2016, and provides the status and analysis on a broader pipeline of 593 projects at some stage of development. In addition, this report provides a wider assessment of domestic developments and events through the second quarter of 2017 to provide a more up-to-date discussion of this dynamically evolving industry.
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5 MB
Publication Date: 
Tuesday, August 1, 2017
Resource Type: 
Document

Delaware Establishes Offshore Wind Working Group

Source/Sponsor: 
State of Delaware
Creator/Author: 
State of Delaware
Description: 
Delaware Governor John Carney on August 28, 2017 signed an executive order establishing the Offshore Wind Working Group to study potential environmental and economic development benefits of offshore wind development to serve Delaware.
 
The working group will begin meeting in September and will review economic opportunities and environmental benefits of offshore wind development, and the costs and benefits of developing offshore wind. Working group members also will review laws and regulations governing the development of renewable energy, and recommend changes. Additionally, they will identify barriers and opportunities involved in developing offshore wind to benefit Delawareans.
 
By December 15, 2017, the working group will submit a report to the Governor that makes recommendations on short- and long-term strategies for developing wind power to serve Delaware, and plans to develop job opportunities in the offshore wind industry. The group also will draft any necessary legislation, including possible amendments to Delaware’s Renewable Energy Portfolio Standards Act.
pdf
Publication Date: 
Monday, August 28, 2017
51 KB
Resource Type: 
Document
State: 

An Assessment of the Economic Potential of Offshore Wind in the U.S. from 2015 to 2030

Source/Sponsor: 
U.S. Department of Energy, National Renewable Energy Laboratory
Creator/Author: 
Philipp Bieter, Walter Musial, Levi Kilcher, Michael Maness, and Aaron Smith
Description: 
This study describes an assessment of the site-specific variation of levelized cost of energy (LCOE) and levelized avoided cost of energy (LACE) to understand the economic potential of fixed-bottom and floating offshore wind technologies in major U.S. coastal areas between 2015 and 2030.
 
LCOE alone is not sufficient to assess economic viability because it does not capture the electric system value that can be attributed to a generation source. Therefore, this analysis draws on a “simplified” version of LACE as a metric to capture the system value of a generation technology.
 
LACE varies by location because of differences in the system value of new electricity, which is determined by a range of factors, including the cost of competing generation technologies, the resource mix, demand patterns, and transmission constraints. The difference between LCOE and LACE at a given location (denoted in this report by “net value”) can help inform an initial understanding of the economic potential of a new offshore wind project at a high geospatial resolution.
 
Some general observations include:
  • Offshore wind sites with economic potential are located predominantly in the Northeast and eastern shore of Virginia
  • Across all regions, the number of sites with a positive net value (or a value close to a positive net value) increase over the time period considered
  • State policies have driven offshore wind development recently (e.g., in New York and Massachusetts); these policies may play a key role when assessing the economic viability of offshore wind but are not considered in this analysis
  • Further technology improvements are needed to achieve the cost reductions of this assessment
  • Some regions will likely require unique technology solutions (e.g., to address low wind speeds in the Gulf, icing in Great Lakes, and deep-water floating solutions in the Pacific and Hawaii)
  • The value of offshore wind to the electric grid system under some high-penetration renewable energy scenarios may not be fully represented by net value as calculated in this study. 
 
 
pdf
6 MB
Publication Date: 
Wednesday, March 1, 2017
Resource Type: 
Document
Multi-State:

Tourist Viewshed Externalities and Wind Energy Production

Source/Sponsor: 
Agricultural and Resource Economics Review
Creator/Author: 
Jacob R. Fooks, Kent D. Messer, Joshua M. Duke, Janet B. Johnson, Tongzhe Li, and George R. Parsons
Description: 

This study uses an experiment where ferry passengers are sold hotel room “views” to evaluate the impact of wind turbines views on tourists’ vacation experience. Participants purchase a chance for a weekend hotel stay. Information about the hotel rooms was limited to the quality of the hotel and its distance from a large wind turbine, as well as whether or not a particular room would have a view of the turbine. While there was generally a negative effect of turbine views, this did not hold across all participants, and did not seem to be effected by distance or hotel quality.

Placement of wind turbines has prompted public concerns related to their effects on wildlife and scenic views. This has been especially relevant in coastal areas, where the proposed development of large offshore wind energy facilities in states including Massachusetts, New Jersey, Delaware, Virginia, and Oregon have been seen as a potential threat to the tourism industry. The response from the tourism industry has delayed or even blocked development of offshore wind facilities in some of these states.

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Publication Date: 
Friday, July 28, 2017
253 KB
Resource Type: 
Document

Offshore Wind Incentives for New Development Act Reintroduced

Source/Sponsor: 
Senators Edward J. Markey (MA) and Sheldon Whitehouse (RI), and Congressman Jim Langevin (RI)
Creator/Author: 
Senators Edward J. Markey (MA) and Sheldon Whitehouse (RI), and Congressman Jim Langevin (RI)
Description: 

The Offshore Wind Incentives for New Development (Offshore WIND) Act would extend the 30 percent Investment Tax Credit for offshore wind through 2025. The 2015 omnibus bill extended the Production Tax Credit (PTC) and Investment Tax Credit (ITC) for wind until 2019. But because of the longer planning and permitting times currently needed for offshore wind, the Department of Energy has found that no additional offshore wind projects are projected to be able to qualify for these tax credits before they expire.

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26 KB
Publication Date: 
Thursday, May 11, 2017
Resource Type: 
Document

Massachusetts Utilities File Revised RFP for 400 MW of Offshore Wind Energy Generation

Source/Sponsor: 
Unitil, National Grid and Eversource Energy
Creator/Author: 
Keegan Werlin LLP
Description: 

Unitil, National Grid and Eversource Energy are seeking to procure a total of 400 MW of offshore wind energy generation. This solicitation also allows bidders to offer proposals for up to approximately 800 MW, and the companies will consider procuring up to approximately 800 MW if the Evaluation Team determines that a larger-scaled proposal is both superior to other proposals submitted in response to this RFP and is likely to produce significantly more economic net benefits to ratepayers based on the evaluation criteria set forth in this RFP. To support development of the offshore wind energy market, the companies are seeking proposals that include expandable, nondiscriminatory, open-access offshore transmission facilities for the efficient delivery of their power to the Onshore Transmission System.

This revised RFP addresses the definition of "Offshore Delivery Facilities" as well as spelling, grammar, and spacing issues.

Tags: 
pdf
Publication Date: 
Friday, May 5, 2017
1 MB
Resource Type: 
Document

Massachusetts Utilities File Initial RFP for 400 MW of Offshore Wind Energy Generation

Source/Sponsor: 
Unitil, National Grid and Eversource Energy
Creator/Author: 
Keegan Werlin LLP
Description: 

Unitil, National Grid and Eversource Energy are seeking to procure a total of 400 MW of offshore wind energy generation. This solicitation also allows bidders to offer proposals for up to approximately 800 MW, and the companies will consider procuring up to approximately 800 MW if the Evaluation Team determines that a larger-scaled proposal is both superior to other proposals submitted in response to this RFP and is likely to produce significantly more economic net benefits to ratepayers based on the evaluation criteria set forth in this RFP. To support development of the offshore wind energy market, the companies are seeking proposals that include expandable, nondiscriminatory, open-access offshore transmission facilities for the efficient delivery of their power to the Onshore Transmission System.

Tags: 
pdf
Publication Date: 
Friday, April 28, 2017
2 MB
Resource Type: 
Document

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