BIG WIND OFF THE JERSEY SHORE

Offshore wind is finally about to happen in the U.S. and, in typical American style, the situation has gone from stasis to gold rush to a few weeks.

Delaware is leading the pack. Rhode Island is a step behind. New Jersey just got into 3rd place but New York is breathing down all their necks.

The action is in the upper Mid-Atlantic because it had become clear it is the place in the U.S. best suited for offshore winds. The continental shelf there is wide and shallow and there is a dense, electricity-hungry population immediately adjacent with a worn out, inadequate grid on its west.

The New Jersey project, just awarded rights and $19 billion in grants by the New Jersey Board of Public Utilities, has an interesting improvement on the other states' plans that could make it more feasible. It will be 16-to-20 miles offshore, much farther off the coast and in much deeper water than the other proposed projects.

Farther out means less opposition, better wind and quicker payoff.

Deepwater Wind, project developers in the Garden State Offshore Energy joint venture, says it can build in depths to 100-feet with the same technology used to build deep water oil and gas rigs. (See OFFSHORE OIL SCIENCE BRINGS OFFSHORE WIND IN)

Costs will be within feasibility limits because of Deepwater Wind’s expertise and because far offshore wind blows during daytime peak demand periods, allowing the installation to sell its power at the higher (peak period) prices. The joint venture expects to break even within 7 years.

Other offshore wind projects, notably Cape Wind in Massachusetts, have been stopped cold by environmentalists and residents concerned with seashore aesthetics. The New Jersey installation will be too far offshore to cause such passionate opposition.

15-to-20 miles offshore, turbines will not be visible. (from the NY Times. click to enlarge)

Huge Offshore Wind Farm Wins Approval
Ken Belson, October 3, 2008 (NY Times)

WHO
New Jersey Board of Public Utilities; Garden State Offshore Energy; P.S.E.G. Renewable Generation, subsidiary of P.S.E.G. Global; Deepwater Wind

WHAT
The Board of Public Utilities gave rights to build a big offshore wind installation to Garden State Offshore Energy. With those rights comes $19 million in state grants, moving another offshore wind project a step closer to reality.

click to enlarge

WHEN
- In recent weeks, Delaware and Rhode Island took steps to allow offshore wind installations. (See U.S. OFFSHORE WIND, ONE STEP CLOSER)
- The New Jersey project is seen as an outgrowth of New Jersey’s Energy Master Plan, mandating the state’s utilities to obtain 20% of their power from New Energy sources by 2020.
- The New Jersey project is expected to begin producing electricity in 2013.

WHERE
The Board of Public Utilities’ granted rights for an installation 16-to-20 miles off the coast of New Jersey’s Atlantic and Ocean counties in the southern part of the state.

WHY
- Garden State Offshore Energy is a joint venture. It includes P.S.E.G. Renewable Generation (subsidiary of P.S.E.G. Global).
- P.S.E.G. is New Jersey’s largest utility.
- The New Jersey approvals are expected to push New York state regulators to support projects off the south shore of Long Island and New York City where, last week, the Long Island Power Authority and Con Edison announced they would undertake a feasibility study for a wind installation 10 miles off Queens. (See LONG ISLAND OFFSHORE WIND – BETTER THE 2ND TIME?)
- The Garden State Offshore Energy project will have 96 turbines and a 346-megawatt capacity.
- The turbines will be built in a rectangle ½-mile long by 1/3-mile wide.
- The project will cost $1+ billion.
- The next steps: Permits from state and federal agencies; commitments from manufacturers for turbines (assembled in New Jersey, creating 100s of new jobs).
- NYC Mayor Michael Bloomberg recently expressed support for offshore wind projects and installations about NYC skyscrapers, promising the city will solicit proposals.

Will there be green flags off the East Coast soon? (click to enlarge)

QUOTES
- Nelson Garcez, vice president of renewable generation, P.S.E.G.: “People don’t have to choose between clean energy and a clear view…”
- Peter Iwanowicz, director, New York State Climate Change Office: “It’s like a rising tide lifting all boats…More projects in the Northeast helps with public acceptance that we need more clean electrons and helps us guard against rising fossil fuel prices and water levels on the coast.”