NewEnergyNews: TODAY’S STUDY: A NEW PLAN FOR U.S. OCEAN WIND

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

The challenge now: To make every day Earth Day.

YESTERDAY

  • TODAY’S STUDY: What Utility Bill Demand Charges Are And What They Do
  • QUICK NEWS, February 28: Bernie And The Science Guy Talk Climate Change; The Great Wind Deal Will Get Better; Is Solar Plus EVs The Answer To Climate Change?
  • THE DAY BEFORE

  • TODAY’S STUDY: Wind’s Big Year
  • QUICK NEWS, February 27: Heartland City Leaders Face Climate Change; EVs Nearer To Going Plug-Free; Politics Block Farmers From Growing Solar
  • THE DAY BEFORE THE DAY BEFORE

  • Weekend Video: A Rogue Climate Scientist Talks To Seth Meyers
  • Weekend Video: The Rogue Scientist Does A Climate Denier Fact Check
  • Weekend Video: How Anybody With A Good New Energy Idea Can Change The World
  • THE DAY BEFORE THAT

  • FRIDAY WORLD HEADLINE-Climate Change Is More Than Warming
  • FRIDAY WORLD HEADLINE-China Takes Global Wind Lead
  • FRIDAY WORLD HEADLINE-Aussies Lead Charge To Solar+Storage
  • FRIDAY WORLD HEADLINE-How Brexit Could Impact UK Ocean Energy
  • AND THE DAY BEFORE THAT

    THINGS-TO-THINK-ABOUT THURSDAY, February 23:

  • TTTA Thursday-Infrastructure Fix Should Face Changing Climate
  • TTTA Thursday-Grid Operator Says ‘Gimme More Ocean Wind!’
  • TTTA Thursday-Marines Assault Old Energy In $80 Million Solar Build
  • TTTA Thursday-Cars With Plugs Face Fight With Agro-Oil Alliance
  • THE LAST DAY UP HERE

  • ORIGINAL REPORTING: The Urgent Need For Planning New Transmission Now
  • ORIGINAL REPORTING: Four Ways To Reconsider Net Metering
  • ORIGINAL REPORTING: The Energy Storage Solution
  • --------------------------

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    Anne B. Butterfield of Daily Camera and Huffington Post, f is an occasional contributor to NewEnergyNews

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    Some of Anne's contributions:

  • Another Tipping Point: US Coal Supply Decline So Real Even West Virginia Concurs (REPORT), November 26, 2013
  • SOLAR FOR ME BUT NOT FOR THEE ~ Xcel's Push to Undermine Rooftop Solar, September 20, 2013
  • NEW BILLS AND NEW BIRDS in Colorado's recent session, May 20, 2013
  • Lies, damned lies and politicians (October 8, 2012)
  • Colorado's Elegant Solution to Fracking (April 23, 2012)
  • Shale Gas: From Geologic Bubble to Economic Bubble (March 15, 2012)
  • Taken for granted no more (February 5, 2012)
  • The Republican clown car circus (January 6, 2012)
  • Twenty-Somethings of Colorado With Skin in the Game (November 22, 2011)
  • Occupy, Xcel, and the Mother of All Cliffs (October 31, 2011)
  • Boulder Can Own Its Power With Distributed Generation (June 7, 2011)
  • The Plunging Cost of Renewables and Boulder's Energy Future (April 19, 2011)
  • Paddling Down the River Denial (January 12, 2011)
  • The Fox (News) That Jumped the Shark (December 16, 2010)
  • Click here for an archive of Butterfield columns

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    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

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      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

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    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • TODAY AT NewEnergyNews, March 1:

  • ORIGINAL REPORTING: Distributed Energy Resources On The Rise
  • ORIGINAL REPORTING: How To Build The Wires New Energy Needs
  • ORIGINAL REPORTING: How The Power System Will Benefit From Cars With Plugs

    Tuesday, February 24, 2015

    TODAY’S STUDY: A NEW PLAN FOR U.S. OCEAN WIND

    Up In The Air; What the Northeast States Should Do Together on Offshore Wind Before It’s Too Late

    Clean Energy Group Lewis Milford and Val Stori & Navigant Bruce Hamilton and Jim Peterson February 2015

    Executive Summary

    According to the latest news, the country’s first proposed offshore wind project, Cape Wind, might never be built. Despite the best efforts of Massachusetts state officials to support the market for years, the disappointing news highlights a stark conclusion: current offshore wind policy isn’t working.

    While the Cape Wind project floundered amidst fierce local opposition, the project’s difficulties highlight a larger policy problem—it is difficult, if not impossible, for any single state to jumpstart the offshore wind industry.

    With the Northeast’s keystone project in limbo, only a few small projects might be built.

    Going forward, there is no solid pipeline of large projects to prove the economic and environmental benefits of this technology and bring it to scale.

    The bottom line is that a new policy approach must be put in place to support a robust offshore wind industry in the United States. To be effective, that approach must rely on multi-state collaboration.

    Offshore wind will only become cost competitive and reach its true potential if the states in the Northeast region act together to help create a market for the technology. The current, go-it-alone, single-state policy approach has failed.

    Without effective collaboration among the states, a market for offshore wind in the Northeast will not develop and the few small projects in development might well be the last. It is that simple.

    This paper takes up the challenge of multi-state policy collaboration on offshore wind. It does the following:

    • It shows the strong regional economic opportunities for offshore wind in the Northeast.

    • It shows the multiple regional environmental benefits of a growing offshore wind market.

    • It details the many challenges and barriers to a strong regional market, and then lists actions Northeast states could take together to build this market—from setting regional procurement targets to developing joint financing and development mechanisms to concerted supply chain development.

    • It details specific policy measures states could adopt together to build out this market, including creation of multi-state buyers’ networks and bargaining agents to purchase offshore wind power on behalf of multiple states.

    • It then proposes a regional collaborative process for the states to use to consider these measures and to decide whether to pursue offshore wind as a regional no-carbon resource.

    While hopeful, this paper does not minimize the challenges. It notes that offshore wind is currently an expensive power resource, much as solar PV technology was twenty years ago. Since that time, policy measures, business models, and incentives—all targeted directly to solar technology—have brought precipitous drops in solar prices to customers.

    As a result of those concerted policies, in many regions of the country, solar has become an affordable, financeable, and commercially viable source of energy.

    The same can happen with offshore wind. But its high upfront capital costs require significant policy support and greater multi-state collaboration to achieve scale.

    If the states do not act together, the region might well lose the ability to capture the benefits of an expanding offshore wind market. That will leave the offshore wind technology and supply chain development to foreign countries to capture the global market for offshore wind. It will leave the region ever more reliant on imported power or on natural gas to try to meet climate goals. It will mean the region will miss out on the economic and environmental benefits of this promising, large-scale, no-carbon energy technology.

    If the country wants to capture these benefits, now is the time to decide which way the region and the industry in the U.S. will go. The policy status quo will not do.

    Multi-State Actions on Offshore Wind: Policies and Process to Move Forward

    If it is the ultimate goal of any East Coast state to develop major offshore wind projects, it is imperative that those states work together through consistent and cooperative regional policies.

    Multi-state action is needed to drive demand, organize procurement, and plan for transmission and distribution. Multi-state cost sharing will reduce impacts on rate-payers and improve the prospects for the participating states to develop a native supply chain.

    This paper recommends the states consider seven multi-state policies for regional action.

    • Regional Offshore Wind Target. The establishment of a practical regional target (or target range) for offshore wind capacity would create a clear demand signal to offshore wind developers that the region is open to support projects.

    • Coordinated Policy Incentives. Individual state policy drivers, including any incentives for developers, should be consistent across the region to drive demand and produce cost reductions over time through scale up of the offshore wind resource.

    • Financing. States should develop new, regional financing mechanisms for regional and single projects including use of bonds and various measures through green bank financing.

    • Procurement. Through various policy mechanisms, states should jointly mandate the procurement of power from one or more large offshore wind projects to reduce costs and create a reliable pipeline for project developers with an aggregated demand from multiple states.

    • Economic Development. Coordinated rather than purely competitive action would spur economic development activity in the region through the creation of clean energy jobs and potentially new manufacturing facilities.

    • Transmission. States should develop joint public funding of regional transmission and interconnection facilities associated with regional projects.

    • Permitting. It is essential to the success of the multi-state projects that the policies ultimately adopted for permitting these facilities be standardized.

    The paper also recommends consideration of various implementing mechanisms for these policies to be adopted, including a multi-state buyers’ consortium, a state acting on behalf of other states as a bargaining agent, and a multi-state authority.

    The paper also recommends the creation of a multi-year process for states to assess whether and how they would pursue these policies together.

    Regional Opportunities for Offshore Wind…Economic, Environmental, and Energy Assurance Benefits to the Region…Policy Goals and Rationale for Multi-State Collaboration…Regional Offshore Wind Target…Coordinated Policy Incentives…Financing…Offshore Wind Energy Procurement…Economic Development and Supply Chain Strategies…Transmission…Permitting…Implementation Mechanisms for Policy Goals…Multi-State Consortium…Multi-State Bargaining Agent Arrangements…Multi-State Power Authority…Regional Process for Multi-State Collaboration…Proposed Activities for Consideration…Timeline…

    Conclusion

    After the troubling conclusion of the Cape Wind project and the uncertainty about future offshore wind projects, energy policy makers who care about the industry are at a crossroads.

    The current policy direction is not working to attract developers to the U.S. There is now little to show for a decade of policy experimentation to create large-scale, offshore wind projects and markets. The industry’s fate in limbo.

    At the same time, there is no clear new direction that has yet emerged to capture this attractive renewable resource. Doing more of the same—the single-state approach to create market demand—obviously will not work.

    The only feasible policy goal is to achieve scale through coordinated, multi-state policies.

    It is clear that such an approach would be difficult and complicated. However, the positive news is that states in the Northeast probably have the longest history of working together on complex energy and environmental issues.

    It is time for the states to come together once again to explore whether they want to do what’s needed to create an offshore wind industry. A great deal of work is required to analyze whether the recommendations offered here, and others, would produce the desired results. But we will not know unless the states agree to come together and find out.

    Without a commitment to explore new multi-state policies, the future of offshore wind in the region will remain up in the air.

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