Wind Today - Q1 2008 - (Page 41)

surveyed would prefer to have offshore wind. Then we asked, College of Marine “Suppose you have to Studies pay more for the first Newark, DE three years—wind 19716 power will cost extra, 302-831 -0049 but then it will be www.ocean.udel.edu stable and won’t fluctuate up or down.” (Recently, Delaware had a big electric rate increase because of changes in fossil fuel—natural gas and coal—costs.) In that study, we gave them different numbers: some people were told that wind energy would cost a dollar more, some $5, some $10 to $30 dollars more. We thought the last amount was more than anybody would be willing to pay. Even at these additional costs, the level of support only decreased from 93% to just over 90% that were still in favor. you offshor shore What do you consider a viable offshore project? wind project? A project needs to be big enough for the revenue to offset fixed costs including mobilization, permitting, and construction costs. I think an offshore project should be a minimum of 500 MW. At that size, or even better at a gigawatt, one or two construction vessels can be kept busy for one or two construction seasons. Bluewater Wind has done a good job, from engineering to financing, to taking some pretty narrow margins on the contract itself. They have a financially viable project where electricity costs under 10¢ a kilowatt hour (kWh). Two years ago experts would have said you couldn’t do it for less than 13 or 14¢ per kWh. If you get the right size, and the right people who keep the costs down, even offshore wind energy isn’t that much above the market cost of electricity. Electricity is expensive here on the east coast. ke gro industry What is key to growing the wind industry in the United States? Extend the production tax credit (PTC) out further. It takes five years to do an offshore project, and six to pay off a factory investment. A two-year PTC extension helps land-based projects, but is a barrier to offshore and to domestic manufacturing. European countries have longer-term policies so manufacturers can build a factory with some assurance that they will be able to sell turbines. With just two-year extensions, offshore projects are risky, and we’ll keep buying our turbines from abroad. Renewable Portfolio Standards (RPS) are a great policy at the state level and it’s very helpful. Delaware’s RPS is 20%. The Minerals Management Service (MMS) is working out the rules for offshore development. If we reach 30% wind capacity, we’ll have to have better ways to integrate generation that is not synchonized to load, for example, by dispatch of storage inherent in loads. At one, five, or 10% it’s not really an issue here. When we approach 20% we’ll have to start thinking seriously about it. What do you expect for the futureof wind you expect for futureof energy? Continued rapid growth. Major expansion into the offshore sector on the east coast and maybe the Gulf. The industry will be driven by policy and continued technical development by the industry. Response No. 411 41 http://www.ocean.udel.edu http://www.ocean.udel.edu http://www.rigarus.com http://www.rigarus.com

Table of Contents Feed for the Digital Edition of Wind Today - Q1 2008

Wind Today - Q1 2008 Contents Windpower 2008 U.S. Energy Map Canada Energy Map Global Report Options and Expectations for O&M Service Providers O&M Safety Issues for Wind Farms Guanting Wind Farm to Power 2008 Olympics Operating Economics of Wind Farms Long-Term Operating Costs Post-Warranty Energy Bill Incentives May Have Another Chance Wind Gears: A Closer Look at the Drive Train Elk River Wind Farm Should Lightning Be A Concern For Wind Farms? Interview: Steve Sawyer Zephyr Powers Jiminy Peak Mountain Resort WT News: United States & Canada Interview: Willett Kempton Centennial Wind Energy WT Transmission: Southwest Power Pool EPA's Top 25 Wind Power Projects 2008 RPS Update Mark Scher, MSE Power Systems Richard Legault, Helimax Second Wind Henkels & McCoy NRG Systems Apterra Technologies, Inc. Wind Resource Maps: Michigan and New York Calendar Glossary Product Surveys Ad Index

Wind Today - Q1 2008

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