Offshore Wind Update Massachusetts Wind Working Group Nils Bolgen May 28, 2014

Offshore Wind Overview New Technology/Higher Cost Huge Resource, Close to Load Better coincidence with peak system loads Massachusetts-made Energy New Industry and Jobs Climate Change Coal and nuclear plant retirements 2

Massachusetts Activities Policy & Legislation Stakeholders engagement Research & Data Supply Chain Analysis Offshore Wind Transmission Project Investment in OSW Infrastructure 3

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Massachusetts Offshore Wind Hub 5

Largest Wind Energy Area on East Coast  ~743,000 acres (3,000 square kilometers)  Water depths range from 35 – 65 meters  Average wind speeds 9.2 – 9.4 m/s NREL projects 5 GW of generating capacity potential To be separated into four lease areas BOEM auction expected November/December

BOEM held the first U.S. auction for offshore wind lease on July 31, 2013 for the RI/MA Wind Energy Area Deepwater Wind won the 164,750-acre lease area RI/MA for $3.8 million Development potential of 1.2 GW 7

Offshore Wind Research Methods – Aerial Surveys – Underwater Passive Acoustic Data MassCEC & BOEM – NE Aquarium – College of Staten Island – UMass Dartmouth SMAST Survey Periods – Year / /12 – Year / /13 – Year /14 - 3/15 Results – Year 1 reports: Dec – Year 2 reports coming Benthic Surveys (2012, 2013) 8

Contractor – Global Wind Network (GLWN) Near Term  Survey capabilities of regional manufacturers and service providers  Focused on machining, forge, casting, electronics, composites, coatings  Connect local manufacturers and service providers with documented developer needs Long Term  Foundations – fabrication, machining, coatings  Towers – fabrication, forging, machining, coatings  Blades – composites, processing, machining  Support Bases & Hubs –fabrication, machining, coatings  Cable & Substation – all major manufacturing sectors 9

Offshore Wind Transmission Project Purpose: Identify and characterize interconnection points Describe transmission infrastructure components and system requirements for WEA development scenarios Identify routes that minimize transmission cable distance with least environmental impact and fewest conflicts (through EEA update of MA Ocean Management Plan) Support coordinated state permitting for the transmission routes in state waters Support coordinated access and permitting process for areas in federal waters 10

Potential Interconnction Points Existing High Voltage Transmission LinesExisting 345 kV Substations 11

System Components for HVDC Transmission Line | miles -- | miles ---- | miles -- | Not to uniform scale 12

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Terminal Before Major Site Work Began: Photo Taken 7/9/2013 Apex 14

View of Terminal Looking South: Photo Taken 4/25/2013 Apex 15

Grenaa-Anholt, Denmark 16