1. Electric Power 2012 Dr. Allan R. Hoffman/U.S. Department of Energy 16 May 2012

2.  Why offshore wind and how big is the resource?  Statistics from one year ago  Current statistics  The USG offshore wind program  Concluding remarks 2

3.  Offshore Wind (OSW) has the potential, when widely deployed, to address two critical issues facing the nation  the need for new electrical energy sources that are ▪ carbon-free ▪ renewable ▪ indigenous to the U.S.  the need to stimulate the economy and create new jobs 3

4.  OSW power plants can produce up to 50% more electricity than onshore cousins due to higher and steadier wind speeds  Proximity to major U.S. load centers with high average electricity costs  50% of Americans live within 50 miles of a coast  Other advantages over onshore locations  allows deployment of larger wind turbines  reduced visual impacts  less turbulence  lower noise constraints (allowing higher rotor speeds) 4

5. 5

6.  OSW is a large, broadly distributed, U.S. energy resource  thirty U.S. states border an ocean or Great Lake  NREL-estimated gross resource at 90m hub height out to 50 nm ▪ wind speeds > 7 m/s: ~3,000 GW ▪ wind speeds > 8 m/s: ~4,000 GW ▪ U.S. installed generating capacity: ~1,000 GW  The global OSW resource is abundant, with the U.S. potential ranked second only to China’s  European Union countries have been first movers and currently lead the world in installed offshore wind power 6

7.  Installed OSW capacity (end of 2010):  European Union: ▪ 2.9 GW in 45 wind farms and 9 countries ▪ 1,136 turbines ▪ foundations: 65% monopiles ▪ average wind farm size: 155 MW ▪ average water depth: 17.4 m ▪ Average distance to shore: 27 km  China: ▪ first OSW wind farm connected to grid: 3 MW x 34 = 102 MW ▪ ten other individual OSW turbines in operation ▪ size range: 1.5-2 MW 7

8.  Installed OSW capacity (end of 2011):  European Union (overall): ▪ 3.8GW in 53 wind farms in 10 countries ▪ 1,371 turbines ▪ foundations: 75% monopiles; 21% gravity-based ▪ two full scale grid-connected floating turbines (2-3MW) ▪ average wind farm size: 200 MW ▪ average water depth: 22.8 m ▪ average distance to shore: 23.4 km  this is a decrease from 2010  average distance for wind farms under construction: 33.2 km 8

9.  Rated by nameplate capacity: ▪ United Kingdom ▪ Walney (phases 1 & 2): 367 MW ▪ Thanet: 300 MW ▪ Linn & Inner Dowsing: 194 MW ▪ Robin Rigg: 180 MW ▪ Gunfleet Sands: 172 MW Ormonde: 150 MW Kentish Flats: 90 MW Barrow: 90 MW Burbo Bank: 90 MW Rhyl Flats: 90 MW 9

10.  Denmark  Horns Rev II: 209 MW  Rodsand II: 207 MW  Nysted: 166 MW  Belgium  Bligh Bank: 165 MW  Netherlands  Princess Amalia: 120 MW  Egmond on Zee: 108 MW  Sweden  Lillgrund: 110 MW  Germany  Alpha Ventus: 60 MW  Baltic I: 48 MW 10

11.  China:  Donghai Bridge: 102 MW  Longyuan Rudong Intertidal: 131.3 MW 11

12.  United Kingdom:  London Array (Phase I): 630 MW  Greater Gabbard: 504 MW  Sheringham Shoal: 315 MW  Lincs: 270 MW  Teesside: 62 MW  Germany:  Trianel Borkum West II: 400 MW  BARD Offshore I: 400 MW  Denmark:  Anholt: 400 MW  Belgium:  Thortonbank Phase 2: 148 MW  China:  Datang Laizhou III: 50 MW 12

13.  United Kingdom:  Dogger Bank: 9,000 MW (13,000 MW potential)  Norfolk Bank: 7,200 MW  Irish Sea: 4,200 MW  Hornsea: 4,000 MW  Firth of Forth: 3,500 MW  Bristol Channel: 1,500 MW  Moray Firth: 1,300 MW  Triton Knoll: 1,200 MW  Sweden:  Blekinge Offshore: 2,500 MW  South Korea:  Korea Offshore: 2,500 MW 13

14.  “A National Offshore Wind Strategy: Creating an Offshore Wind Energy Industry in the United States”  http://www1.eere.energy.gov/wind/pdfs/national_offshore_wind_strategy.pdf http://www1.eere.energy.gov/wind/pdfs/national_offshore_wind_strategy.pdf  announced jointly by DOE and DOI February 2011  goals: ▪ 2020: 10 GW installed @ $0.10/kWh ▪ 2030: 54 GW installed @ $0.07/kWh  Department of the Interior  critical partner – has primary jurisdiction over OSW projects in federal waters  announced “Smart from the Start” initiative November 2010 To facilitate project siting, leasing, construction off the Atlantic Coast http://www.whitehouse.gov/blog/2011/02/10/smart-start-building-clean-energy-future 14

15.  DOE actions in support of the Strategic Plan:  February 2011: announced release of three solicitations (up to $50.5 over five years): Technology Development (up to $25M over 5 years) - support development of innovative wind turbine design tools and hardware ▪ Removing Market Barriers (up to $18M over 3 years): - support baseline studies and targeted environmental research to characterize key industry sectors and factors limiting the deployment of offshore wind. ▪ Next-Generation Drivetrain (up to $7.5M over 3 years): - fund development and refinement of next-generation designs for wind turbine drivetrains 15

16.  DOI actions in advance and support of the Strategic Plan:  June 2010: Interior and 10 East Coast states form OSW Consortium  to promote development of OCS wind resources along East Coast  ME, NH, MA, RI, NY, NJ, DE, MD, VA, NC  February 2011: identified four mid-Atlantic Outer Continental Shelf Wind Energy Areas as part of ‘Smart from the Start’:  Delaware (122 square nautical miles)  Maryland (207 )  New Jersey (417)  Virginia (165)  April 2012: released draft EIS for assessing OSW resource potential in Mid- and South-Atlantic planning areas 16

17.  New Funding Opportunity Announcement by DOE (1 March 2012):  six-year $180M initiative that seeks applications for Research Addressing Market Barriers  reflects increased focus in Wind Power Program on OSW  Includes $20M in FY2012, to fund up to four OSW projects designed to ▪ drive down cost of OSW farms ▪ reduce concerns about ease of permitting, offshore installations, grid integration ▪ reassure financiers about value of investments  Letters of Intent were due March 30 th  applications due May 31st 17

18. 18  private sector initiative  offshore high-voltage direct-current transmission line off the mid-Atlantic Coast, capable of serving up to 7,000 megawatts of power from OSW farms  December 2011: DOI completed internal review of AWC’s Right-of-Way application, prior to its release for public review  Project, if deployed, would span 300 miles of state and federal waters from NJ/NY to VA

19.  A year ago I concluded a talk on OSW with following words: - offshore wind is the most important emerging renewable energy technology - it can, and must, become an important part of the U.S. energy picture and its future economic growth - the U.S. is well behind the Europeans and China at this early stage of OSW development and deployment - nevertheless, given the U.S. resource base, our ability to innovate, and our broad and excellent manufacturing base, we can eventually play a major and even dominant role in OSW if we decide as a nation to do so.  These conclusions are still valid today, with the following caveats:  One year later the decision has been made to put increasing focus in DOE’s future Wind Power Program on OSW  DOE has committed $180M over six years ($20M in FY2012) to getting OSW equipment in the waters off of U.S. coasts 19

20. Contact information: E-mail: allan.hoffman@ee.doe.gov Telephone: 202 /586-8302 20