RUMBLE ON THE JERSEY SHORE

A clash of wind, wave energy permits off N.J.
Sandy Bauers, April 4, 2009 (Philadelphia Inquirer)

SUMMARY
Ambitious plans to develop wind off the Jersey shore has run head-on into the plans of wave energy developers.

In the fall of 2008, access to develop offshore wind was granted to 3 projects totaling ~1,000 megawatts, one by Bluewater Wind, one by Garden State Offshore Energy (a joint venture of Deepwater Wind and New Jersey utility PSEG), and one by Fishermen's Energy, a cooperative of commercial fishermen. At the same time, New Jersey Governor Corzine set goals for the state to get 1,000 megawatts of electricity from wind energy by 2012 and 3,000 megawatts by 2020, goals that are only likely to be met by the development of Jersey’s offshore wind resource.

But the Minerals Management Service (MMS) of the Department of the Interior (DOI) hadn’t finished writing the rules for offshore wind so the projects were put on hold.

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At the same time, Grays Harbor Ocean Energy Co. filed 7 proposals for wave installations with the Federal Energy Regulatory Commission (FERC). 2 were in the same area as the permitted wind projects and 1 was very near the 3rd wind project.

The wind developers believe the Grays Harbor locations were more than coincidentally adjacent and accused the wave developer of “site banking” (tying up sites to get stipends for releasing them).

Grays Harbor claims it is merely diversifying, creating options in little-known territory. It says the overlapping sites were the result of all players looking for similar qualities (out of shipping lanes, beyond shore sightlines, in environmenally acceptable bounds, etc). It says it is willing to work with the wind developers and suggests the areas could be sites for both wind and wave installations.

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COMMENTARY
The explanation for why there is a bitter dispute over access to New Jersey offshore turf begins with its immediate adjacency to huge, energy-hungry marketplaces up and down the East Coast.

Another special appeal of offshore New Jersey is that the continental shelf there is wide and the waters are relatively shallow. The environment is less tempestuous and the winds are strong enough and steady.

The wave resource, though invitingly accessible, is not considered at all first-rate. Prevailing winds blow against the waves rolling in off the Atlantic and the wide shallow shelf absorbs much of the force.

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Although at present it is a contentious dispute riddled with a storm of legal filings, protests and accusations, the matter promises to be resolved. DOI and FERC recently reached an agreement on jurisdiction. (U.S. OFFSHORE NEW ENERGY TO GO FORWARD) Though the agreement does not necessarily clarify this situation, it makes a final adjudication one step closer by affirming FERC’s right to permit wave projects. FERC recently heard a Grays Harbor presentation respectfully, suggesting the wind developers will have to deal with "the wave people."

Believing the wave permits to be essentially bogus, the wind developers intend to force the issue. MMS says it is in the process of finalizing its agreement with FERC, suggesting it may yet influence the decision.

Some of the participants on both sides have begun muttering about combining wind and wave projects. It’s an obvious synergy, suggested frequently by forward thinkers, including NewEnergyNews. Split the costs of maintenance and transmission, calculate the contributions of each energy at its source. Bookkeeping is so much easier than turf wars.

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QUOTES
- Mike Olsen, energy attorney, Bracewell & Giuliani: "What's at stake is whether we ever see any renewable energy development on the outer continental shelf. That's the bottom line…"
- Roger Bedard, ocean energy authority, Electric Power Research Institute (EPRI), on New Jersey wave energy: "You're on the wrong coast…"
- Jim Lanard, head of strategic planning, Bluewater: "We thought [Grays Harbor’s action] was a very aggressive filing…"
- Chris Wissemann, head, Deepwater: "It's a big ocean…It's sort of uncanny that Grays Harbor happened to land right on top of two of three mapped wind farms…Had we all banded together and hired someone to elevate the issue…we couldn't have done better."

There is work being done on combining wind turbines with wave energy generators. (click to enlarge)

- Burton Hamner, president, Grays Harbor Ocean Energy Co.: "The wave energy off New Jersey is not particularly good…But FERC regulates wave power, and their permit system exists and can be used, whereas . . . no one can even apply for a project under MMS…And, by the way, anyone else can replicate our strategy…Anybody else who wants to draw boundaries on a map and submit it to FERC can start the permit process…[but it's] long and horrible, you have to start as soon as you can."
- Nelson Garcez, vice president, PSEG Renewable Generation/head, Garden State Offshore Energy: "I'm more positive than I was a couple weeks ago…We really expect that Secretary Salazar . . . will be able to spell out a very clear policy."