Orrick Offshore Wind Energy Update And Outlook
ORRICKOFFSHORE WINDENERGY UPDATEAND OUTLOOKJanuary 2020
IIII
The global offshore wind markethas grown nearly 30 percent peryear since 2010 and is projected tobe a US 1 trillion industry over thenext two decades.Markets around the world are seeing significant increasesin offshore wind activity driven by more evolved regulatorystructures and cost reductions due to technologicaladvancements and growing competition. In 2019, wind(both onshore and offshore) led overall renewable energyinvestment with US 138.2 billion globally and offshore windcapacity investment was up 19 percent compared to 2018.In the United States, offshore wind energy isquickly transitioning to a viable and gamechanging market sector. The 30 megawatt(MW) Block Island wind project off thecoast of Rhode Island has completed itsthird full year of operation. The first largescale offshore wind project off the coastof Massachusetts is in an advanced stageof project development. A demonstrationproject is under construction by DominionEnergy in Virginia. Numerous powerpurchase agreements (PPAs) and offshorewind renewable energy credit (OREC)contracts have been awarded with coastalstates from Maine to California in variousstages of offshore wind program planning.Things are moving quickly and energyinvestors from North America, Europe andAsia are lining up to get involved.In a number of Asian countries, offshorewind is on a similar trajectory. Taiwan’s 128MW Formosa 1 project recently achievedcompletion, with the first demonstrationturbines in commercial operation since2016. Japan’s Offshore Wind Promotion Actand lucrative feed-in-tariff (FIT) regime areresulting in accelerated progress towardsa robust Japanese offshore wind projectplatform, similar to the progress made inonshore wind and solar energy in Japan overthe past few years. There is also significantprogress in China with well over a gigawatt(GW) of installed offshore wind capacityand many more projects planned or underconstruction. Half of all global offshore windinstalled in 2018 was located in China, whichis currently projected to be the market leaderfor installed offshore wind capacity by 2021.While these markets, and others, are seeingexciting growth in this space, countriesaround the world continue to chase themature offshore wind energy platform inEurope. Europe now has a total installedoffshore wind capacity of approximately 20GW, with more than 4,500 offshore turbinesin 11 countries. Offshore project installationand investment continues at an impressiverate, with nearly a gigawatt of installedoffshore wind capacity in the UK in 2019 andmore than 5 GW of new project contracts inthe pipeline at record low prices. Countriessuch as Denmark, Belgium, Germany andFrance are also advancing their offshorewind programs.A significant, steady buildout of offshorewind energy in the decade starting in 2020is all but certain across Europe, Asia andthe U.S., as well as in other regions thatare just beginning to plan how and whento capitalize on the immense potential ofoffshore wind energy.1
Continuing Declinein Offshore WindEnergy PricesOne of the reasons for the increasing globalbuildout of offshore wind is the decreasingprice curves that we have seen in Europeand are now seeing in United States powerpurchase transactions. The trend is similarto that of U.S. onshore wind and utility-scalesolar over the last 10 years.The rapid decline in prices around the worldfor the power from new offshore windprojects is driven by a number of factors,including market competition, increasingsupply chain efficiency, technologyadvances, and improving forecasts ofperformance based on operational history.In the coming years, these factors areprojected to continue driving pricesdownward. Although various numbers andprojections are available, nobody debatesthe declines are already striking. The U.S.Department of Energy (DOE) released areport in 2018 that found power prices inEuropean offshore wind auctions and PPAsdropped from approximately US 200/MWh for projects commencing operationbetween 2017 and 2019 to approximatelyUS 75/MWh for projects expected tobegin operation between 2024 and 2025.22Bloomberg New Energy Finance reporteda second-half 2019 global benchmark priceof just US 78/MWh, a 32 percent drop fromthe previous year. In June 2019, the planned600 MW Dunkerque project off the coast ofFrance announced a strike price of just 44/MWh. And the United Kingdom’s contractsfor difference auction scheme acceptedbids from three offshore wind projects atapproximately US 50/MWh in 2019.Maryland project and Deepwater’s Skip JackPrices in the U.S. are not far behind. TheNational Renewable Energy Laboratory(NREL) analyzed the planned 800 MWVineyard Wind project off the coast ofMassachusetts, ran a bottom-up costestimate, and found the price premium forthe U.S. market as compared to the moreestablished European markets might be lesssignificant than had been widely expectedor might otherwise be presumed. The year 1price under the Vineyard Wind PPA signed inJuly of 2018 is US 74, escalating to US 118in year 20 for the first 400 MW, and US 65in year 1 for the second 400 MW. This pricedoes not factor in the project’s revenue fromtax benefits and revenue from capacity salesoutside of the PPAs.expected average OREC costs of US 25.14/By way of contrast, the initial price underDeepwater’s Block Island Power PurchaseAgreement was US 244. The pricing ofthe Maryland OREC program for US Wind’sproject is US 132/MWh. And the price on theLong Island Power Authority’s PPA for theSouth Fork project is reported at US 160/MWh for the first 90 MW and US 86/MWhfor the additional 40 MW. The New JerseyOREC price for Orsted’s Ocean Wind projectis US 98.10 (year 1). And in New York’s recentOREC awards, NYSERDA announced averageall-in development costs of US 83.86 andMWh for the Empire Wind and Sunrise Windprojects (note that the projects retain energysales revenue). Pricing on the recentlyawarded Revolution Wind PPAs for powersupply to Connecticut and Rhode Island was 94 and 98.43, respectively, and the recentlyawarded Mayflower Wind PPA for power toMassachusetts utilities is forecasted to bebelow the original price cap of 84.23.When comparing prices, it is important toconsider such factors as the allocation ofenergy and capacity revenue, tax benefits(ITC/PTC and local credits), price escalationfactors, and whether the cost of transmissionis included.
Structure of EnergyPurchase Transactions(PPAs and ORECTransactions)Two different transaction structures havebeen utilized for the purchase and sale ofoffshore wind energy and related productsin the United States. Starting with theearly PPAs for the Bluewater Wind projectin Delaware and the Cape Wind project inMassachusetts, the majority of offshorewind energy transactions have been agreedupon using traditional bilateral PPAs withthe state utilities. These PPAs have beensimilar to utility PPAs for U.S. onshorewind and solar, but with customized andhighly negotiated transaction terms relatedto offshore wind and project-specificconsiderations, including for pricing, projecttimeline, transmission, permitting andvariations in project size and technology.Utility PPAs have been used for the recentoffshore power purchase transactions inMassachusetts, Connecticut, Rhode Islandand for the South Fork project in New York.The second transaction structure is for thepurchase and sale of ORECs, representingthe environmental attributes associated withone megawatt-hour of electricity generatedfrom offshore wind resources and consumedby retail customers. The OREC transactionstructure has been utilized for the recentprocurements of offshore wind energy inMaryland, New Jersey and New York.According to the Departmentof Energy, offshore wind hasthe potential to generatemore than 2,000 GW ofcapacity per year. That’salmost double the nation’scurrent electricity use. Evenif only one percent of thatpotential is captured, itwould mean that offshorewind could power nearly6.5 million U.S. homes withinthe next decade. MARYLANDMaryland passed the Maryland OffshoreWind Energy Act in 2013, amending thestate’s renewable portfolio standard toinclude Maryland ORECs. In 2017, theMaryland Public Service Commission(MDPSC) awarded the state’s first ORECagreements to the 120 MW Skipjack and248 MW US Wind projects. Then in 2019,Maryland increased the requirement forenergy obtained from offshore wind by2030 by an additional minimum of 1.2GW. The 2017 awards set forth ORECprices and maximum OREC quantities forthe two winning bidders. The MarylandOREC program requires “retail electricitysuppliers” (as defined by state law) topurchase ORECs from the project ownersin accordance with guidance set outby the MDPSC. To be eligible for ORECpayments, the project owners must sellall energy, capacity and ancillary servicesassociated with the OREC into theregional PJM Interconnection-operatedmarkets and then distribute the resultingproceeds to the electricity supplierspurchasing the associated ORECs froman escrow account. The MDPSC setan initial price schedule equivalent toUS 131.93/MWh for US Wind and theSkipjack projects. NEW JERSEYThe New Jersey Board of Public Utilities(NJBPU) has implemented an ORECprogram and funding mechanism similarto Maryland’s program to support NewJersey’s offshore wind goals of 3.5 GW ofoffshore capacity by 2030. In 2019, NewJersey selected the 1.1 GW Ocean Windproject being developed by Ørsted withsupport from PSEG, marking the largestsingle procurement of offshore wind inthe U.S. to date. The NJBPU requires NewJersey’s electricity supply companiesto purchase ORECs from the selectedproject according to a set percentageof kWh of energy sold in the state.The program’s “OREC administrator”facilitates the OREC payments to theproject and transfer of ORECs to theelectricity suppliers required to purchasethe ORECs, as well as the transfer ofrevenues from the projects’ sale ofenergy and products into PJM back tothe ratepayers. NEW YORKNew York set a goal for offshore windenergy of 9 GW by 2035, with theprocurement led by the New York StateEnergy Research and DevelopmentAuthority (NYSERDA). NYSERDA’s ORECprogram has NYSERDA procuring ORECsfrom the project owners on behalf ofload serving entities, which in turnare required to purchase ORECs fromNYSERDA. Project owners retain allenergy and capacity revenues generated,while the ORECs act as an additionalsupport mechanism. In 2019, New York’sfirst solicitation of proposals for offshorewind power, two projects were selected:the 816 MW Empire Wind (Equinor) andthe 880 MW Sunrise Wind projects (JV ofØrsted A/S and Eversource Energy). Theprojects have an expected average ORECcost of US 25.14/MWh and an averageall-in development cost of US 83.36/MWh. NYSERDA’s procurement methodsoperate separately from that of publicpower authorities, including the LongIsland Power Authority and its 20-yearPPA with the South Fork Wind project.With New York law mandating 9 GW ofoffshore wind by 2035, further NYSERDAprocurements are likely.Both PPAs and OREC transaction structuresare expected to be utilized in upcomingprocurements of U.S. offshore wind.3
Financing Outlook ForU.S. Offshore WindIf permitting and supply chain hurdles can bemet, the financing market for U.S. renewableenergy projects appears to be robust andready to embrace many of the offshore windprojects mentioned in this update. More than50 financing entities have expressed interestin financing U.S. offshore wind. This includesbetween 20 and 30 European lenders thathave experience with offshore wind andthat will likely be a driving force for offshorewind in the United States. For onshore windprojects in the U.S., both debt and tax equityhave traditionally been available for projectswith strong economic fundamentals inplace. It can be expected that many of theseU.S. onshore wind financing providers willalso participate in upcoming offshore windproject financings. Moreover, many of theplanned U.S. offshore wind projects featurelarge project sizes, strong project sponsorsbacking the projects, and better offtakecontracts than many of the onshore projectsin the current market. Accordingly, manylenders and tax equity investors are anxiousto fund these projects.On the debt side, offshore wind projectsare likely to benefit from the low debt ratesthat exist in the current market. Premiumsfor offshore back-leverage are expectedto be about 25 basis points higher thanfor onshore wind, which has rates as lowas 75 basis points above LIBOR. Europeanlenders will need to be educated on taxequity financings and the intercreditorarrangements between tax equity and debt.Many lenders also perceive offshore windto have heightened construction risk, whichthe industry believes will be manageableover time as the market is educated. At an80 percent investment tax credit (ITC) orproduction tax credit (PTC) level, a typicalcapital stack for projects is expected to beapproximately 50 percent debt, 30 percenttax equity and 20 percent sponsor equity.The share of debt and sponsor equity willrise as the tax credits phase out.The U.S. tax equity market typically utilizes apartnership flip structure where tax equity istargeting post-tax returns of approximatelysix to nine percent. Tax equity typically44prefers not to commit more than 12 monthsbefore the commercial operation date ofa project, which is a challenge for offshorewind. Tax equity will likely accommodateearlier commitments for offshore wind inthe range of 18 to 24 months before thecommercial operation date. At least oneoffshore wind project obtained constructionfinancing prior to having a tax equitycommitment (i.e. no committed takeout). Also, based on public information,the Vineyard Wind project off the coast ofMassachusetts, has been very well receivedin the tax equity and debt markets. Theproject went to market more than 24 monthsbefore its commercial operation date (COD)and received offers for more than two timesthe tax equity capital it was seeking.Unfortunately, recent efforts to pass a federaltax credit specific to offshore wind were notsuccessful. However, there was success inpassing an extension of federal tax creditsfor all wind projects which have the potentialto provide a very significant boost to theoffshore wind market. The extension was fora 60 percent PTC or an 18 percent ITC forwind projects that commence constructionin 2020. Generally, projects must reachCOD by the end of 2024 to qualify for thesecredits. Fortunately, there are a number ofoffshore wind projects that are currentlyexpected to reach COD on or before 2024,which should be in a position to capitalizeon this extension. We believe some of theseprojects will take action this year to startconstruction for PTC/ITC purposes.To qualify for the PTC or ITC, projects needto start construction by the end of 2020by either incurring at least five percent ofthe qualified project costs (i.e., the fivepercent safe harbor) or by commencingphysical work of a significant nature eitheron-site or off-site. The five percent safeharbor is very capital intensive given thesize of offshore wind projects, and weanticipate that very few projects will selectthis option. On-site physical work is alsodifficult because of lack of access to the sitein the ocean and limited ability to do on-sitework at preliminary stages. Accordingly,we expect some projects to elect off-sitephysical work to commence construction in2020. A financeable tax credit qualificationstrategy will be very important for offshorewind projects utilizing PTCs or the ITC, andprojects should expect significant scrutiny oftheir qualification strategies given the costof the offshore projects and the expectationthat multiple tax equity and debt providerswill participate in the financing of theseprojects and will separately diligence the taxcredit qualification strategy. Additionally,offshore developers should be careful aboutbasing their tax credit qualification strategyon physical work on equipment where thetechnology is quickly evolving. For example,starting work on offshore turbines is often achallenge if better turbines are expected tobe available by the time the turbines will beerected. Despite these constraints, it can beexpected that a number of upcoming U.S.offshore wind projects will be able to utilizethe existing federal tax credits and obtain taxequity financing.“A lot of creative solutionsare being utilized in U.S.renewables financings, suchas various flavors of bridgefinancing, vendor equipmentfinancing, mezzaninefinancing, and creativetax equity and term debtstructures. This creativitywill be really helpful tosponsors seeking to mitigatethe risks associated withthe long developmentand construction cycles ofoffshore wind projects.”— Rael McNally, Director of GlobalRenewable Power at BlackRockReal Assets
United States AtlanticSeaboardOffshore wind project development alongthe Atlantic seaboard continues to progressrapidly. Deepwater Wind’s 30 MW/five turbineBlock Island project completed its thirdyear of commercial operation in December2019, providing the sector with a muchneeded tangible precedent for the enormouspotential of U.S. offshore wind. Many moremegawatts of offshore wind energy are inadvanced stages of development.The following section provides a highlevel update on some of the most notablerecent developments in the rapidly evolvingoffshore wind project landscape along theAtlantic Seaboard. MASSACHUSETTSIn August 2016, Massachusetts passeda law requiring its utilities to procure1,600 MW of offshore wind power by2027. In 2018, the state passed newlegislation that would double the offshorewind target to 3,200 MW by 2035. Andin May 2018, Avangrid Renewables andCopenhagen Infrastructure Partners’ 800MW Vineyard Wind project was selectedas the winner of the state’s first majoroffshore wind solicitation, including PPAswith National Grid USA, Eversource Energyand Unitil Corp. in two 400 MW phases tobe located south of Martha’s Vineyard.In August 2019, the U.S. Department ofthe Interior’s Bureau of Ocean EnergyManagement (BOEM) announced itwould be requiring a supplement toVineyard Wind’s environmental impactstatement to inform its decision on theproject’s commercial operations plan,unexpectedly delaying the projectedconstruction schedule. Approval of acommercial operations plan is neededbefore construction of the project cancommence. BOEM explained that thesupplement was requested to includea more “robust cumulative analysis”of environmental impacts. This, asexplained by BOEM, was neededbecause a greater buildout of offshorewind is now reasonably foreseeable ascontrasted to what was contemplated atthe time when the original environmentalimpact statement was prepared. BOEMannounced that this supplement shouldbe available for public comment byearly 2020.Mayflower Wind (a joint venture betweenShell and EDP Renewables) won thesecond RFP process in October 2019and was selected to move forwardwith contract negotiations to provide804 MW of offshore wind power toMassachusetts.Massachusetts is also very active infacilitating development of the localsupply chain by upgrading the NewBedford Marine Commerce terminalfor offshore wind projects, creating theMassachusetts Clean Energy Center’sWind Technology Testing Center thatoffers turbine blade certification tests forturbine blade sections up to 90 meters inlength, and offering the first-in-the-nationoffshore wind training facility located atthe Massachusetts Maritime Academy. NEW YORKNew York has set a goal of developing9,000 MW of offshore wind energyby 2035, with the procurements ledby NYSERDA, which has created theOREC program (described previously) toencourage offshore wind energy projectdevelopment for New York. Under theNew York program, NYSERDA procuresbased on reference prices for energy andcapacity and serves as a type of contractfor differences. In the first solicitationof proposals for offshore wind power,held July 18, 2019, NYSERDA selectedtwo projects, the 816 MW Empire Wind(Equinor US Holdings, Inc.) and the 880MW Sunrise Wind (a joint venture ofØrsted A/S and Eversource Energy).The selected projects have an expectedaverage OREC cost of US 25.14/MWhand an average all-in development costof US 83.36/MWh. Previously, andseparately from NYSERDA’s procurementtrack since it is a public power authority,the Long Island Power Authorityapproved a 20-year PPA to take powerfrom the proposed 90 MW South ForkWind project (Ørsted U.S. Offshore Windand Eversource Energy). This agreementwas amended in 2018 to add another 40MW of power. The South Fork projectis located about 30 miles southeastof Montauk and has an approved siteassessment plan.NYSERDA, available at -and-Developers/2018-Solicitation.ORECs from the offshore wind projectowners on behalf of load serving entities,which in turn are required to purchase theORECs from NYSERDA. Project ownersretain all energy and capacity revenuesgenerated, while the ORECs act as anadditional support mechanism. In its firstsolicitation, NYSERDA required biddersto submit two offer prices: a fixed ORECprice and an indexed OREC price, which is5
NEW JERSEYNew Jersey plans to meet its goal of3,500 MW of offshore wind by 2030through an OREC program similar to thatof Maryland, and tax incentives. In June of2019, the NJBPU granted the state’s firstaward of offshore wind to Ørsted’s 1.1 GWOcean Wind project, marking the largestsingle procurement of offshore wind inthe United States to date. The OceanWind project is located approximately15 miles off the coast of Atlantic City,New Jersey. Two additional 1,200 MWsolicitations are also anticipated, onein 2020 and the other in 2022. TheNJBPU requires New Jersey’s electricitysupply companies to purchase ORECsfrom the selected project accordingto a set percentage of kWh of energysold in the state. The program’s “ORECadministrator” facilitates the ORECpayments to the project and transfer ofORECs to the electricity suppliers requiredto purchase the ORECs, as well as thetransfer of revenues from the projects’sale of energy and products into PJM backto the ratepayers.New Jersey also created an offshorewind tax credit program that providesprojects with tax credits up to 100percent (with a US 100 million limit) ofthe qualified capital investments madein an offshore wind-related facility.New Jersey is also working to supportdevelopment of a local supply chain.In October of 2019, the New JerseyEconomic Development Authorityannounced its proposal for an OffshoreWind Technical Assistance Program.Under this proposal, the New JerseyEconomic Development Authority willcontract an experienced offshore windadvisory and certification company tohelp assure that local companies possessthe requisite credentials to secureoffshore wind contracts. In Novemberof 2019, New Jersey’s governor issueda new executive order directing theNJBPU, the New Jersey Department ofEnvironmental Protection, and otherstate agencies to take all necessaryactions to promote the development ofwind energy off the coast of New Jerseyto meet an increased goal of 7,500 MWof offshore wind energy generation bythe year 2035.66 RHODE ISLANDIn addition to having the DeepwaterWind Block Island project, the RhodeIsland Public Utilities Commissionapproved a 20-year PPA in 2019between DWW Rev I, LLC (a jointventure of Ørsted U.S. Offshore Windand Eversource) and National Grid for400 MW from the Revolution Windproject located in federal waters roughlyhalfway between Montauk, New York andMartha’s Vineyard, Massachusetts. CONNECTICUTIn June 2019, Connecticut passed a billrequiring the Department of Energyand Environmental Protection to solicitup to 2 GW of offshore wind capacityby 2030, and on December 5, 2019, theDepartment selected Vineyard Wind’sbid of 804 MW from the developmentstage Park City Wind project, allowingthe Park City Wind project to enter intonegotiations with United IlluminatingCompany and Eversource Energy, thestate’s two electric companies, for along-term PPA. This selection marks thestate’s third procurement of offshorewind energy and is estimated to provideapproximately US 890 million ineconomic development in Connecticut,including to the Bridgeport harbor andlocal supply chain.Previously in 2018, the state authorizeda total of 304 MW from Ørsted’sRevolution Wind project Bay State Wind(a joint venture of Ørsted U.S. OffshoreWind and Eversource). A 20-year PPAwas signed for the supply of energy fromthe project. This included commitmentsto the development of the state pierin New London, with Governor NedLamont announcing in May 2019 apublic-private partnership investingUS 93 million to upgrade the pier so asto support infrastructure requirements ofoffshore wind projects, with constructionon the pier expected to be completed inearly 2022. MARYLANDIn May 2019, Maryland passed a law thatdoubled the requirement for energyobtained from offshore wind by 2030 byrequiring an additional 1,200 MW, withthe bidding process commencing in 2020and scheduled to continuing in 2021and 2022. Maryland has encouragedoffshore wind through its own ORECprogram, under which all retail electricitysuppliers must purchase ORECs fromselected offshore wind project ownersin accordance with guidance set outby the MDPSC. To be eligible for ORECpayments, the project owners must sellall energy, capacity and ancillary servicesassociated with the OREC into theregional PJM Interconnection-operatedmarkets and then distribute the resultingproceeds to the electricity supplierspurchasing the associated ORECsfrom the escrow account. In 2017, theMDPSC awarded the state’s first ORECagreements to Ørsted’s 120 MW Skipjackproject and a 248 MW project ownedby US Wind, Inc, with an initial priceschedule equivalent to US 131.93/MWhfor the projects. VIRGINIAVirginia recently increased its goal forrenewable energy to 30 percent by 2030.This new renewable energy goal includesup to 2,500 MW of offshore wind tobe developed by 2026. Constructionon Dominion Energy’s Coastal VirginiaOffshore Wind demonstration projectlocated in Dominion’s BOEM lease areaoff the coast of Virginia Beach beganin July 2019 and is expected to becompleted in the 2020/2021 timeframe.Dominion has retained Ørsted for theconstruction of the demonstrationproject. This is expected to befollowed by a commercial-scale project(anticipated to total approximately 2,640MW that will be developed in three, 880MW phases). MAINEIn November 2019, Maine Public UtilitiesCommission approved a contract withCentral Maine Power and Maine AquaVentus for the 12 MW Maine AquaVentus floating demonstration project.This project is part of the Maine OffshoreWind Initiative, a state initiative toidentify opportunities for offshore winddevelopment in the Gulf of Maine.
BOEM Regulatory Road MapInitiateLeasing Process(RFI/Call)LeaseGrantedArea IdentificationWind Energy AreasO 1/2PublishLeasing NoticesO 11/2BOEM Deems COPComplete & SufficientSubmit SAPSite Assessment & Surveys(maximum timeframe)Pre-surveyMeetings/Plan010BOEMApproves COPBOEM Environmental& Technical Reviews 50Installation2NEPA/Environmental ReviewsAuctionBOEM Reviews &Approves SAPSubmit COP(with Project Design Envelope — optional)Submit Design &Installation PlansImage courtesy of BOEMProject Permittingand EnvironmentalConsiderationspermitting and support for the ongoingdevelopment of upcoming projects, orpotential financings or acquisitions remainscomplex and highly project-specific.Now well over a decade into thedevelopment of offshore wind in the U.S.,the permitting and approval process foroffshore wind projects remains lengthyand complicated, and the estimated timefor review and approval remains a criticalfactor in determining when projects canbegin construction and achieve commercialoperation. BOEM oversees the developmentof wind projects in U.S. federal waters.BOEM has published the roadmap aboveoutlining the overall offshore winddevelopment process.In addition, several environmental permitsmust be obtained. Numerous environmentalstudies and consultations of governmentalagencies are involved in obtaining thesepermits (including the BOEM lease, BOEMapproval of a Site Assessment Plan, andBOEM approval of a Construction andOperations Plan). The full diligence of aproject also requires the careful assessmentof potential environmental issues associatedwith onshore interconnection.When BOEM grants a lease to an offshorewind project, development of the projectis conditioned on BOEM approval ofdetailed plans for that project (e.g., theassessment and construction operationplans). This requires review pursuant to theNational Environmental Policy Act (NEPA).NEPA requires that federal agencies, likeBOEM, review the potential environmentalimpacts associated with its decision toissue an approval. A project will also needto obtain other permits from various federalagencies (e.g., United States Army Corpsof Engineers) and will be subject to certainstate and local permits. As a result, the duediligence with respect to environmentalMany environmental and stakeholderissues need to be considered during thepermitting process and related stakeholderdiscussions and negotiations. These issuesare amplified by the scale of the offshorewind projects being developed and thelocation of these projects close to majorU.S. cities. Permits may be appealed, andsome permits provide for opportunities forpublic comment. Depending on the stage ofproject development or timing of a proposedacquisition or financing, certain aspects ofpermitting may require additional scrutinyduring a due diligence process.The stage of project development or timingof a project acquisition, knowledge of thesequence and expected completion ofall required studies and the permittingand approval process can all impactpossible permitting concerns and timelineconsiderations for the developmentprocess a
from offshore wind resources and consumed by retail customers. The OREC transaction structure has been utilized for the recent procurements of offshore wind energy in Maryland, New Jersey and New York. MARYLAND Maryland passed the Maryland Offshore Wind Energy Act in 2013, amending the state's renewable portfolio standard to
An Offshore Wind Energy Roadmap3; Wind Farm Site Decisions and permits issued under the Offshore Wind Energy Act; If necessary, subsidies under the Stimulation of Sustainable Energy Production Decision; and A Development Framework for the development of offshore wind energy, and that of the offshore grid in particular.
Maryland Offshore Wind Energy Act of 2013 Created a "carve-out" for offshore wind within Maryland's Renewable Portfolio Standard (RPS) that is equal to 2.5 percent of all electricity sales within Maryland. Created a financial support mechanism for "Qualified Offshore Wind Projects" via Offshore Wind Renewable Energy Credits (ORECs).
Offshore wind farms are also not subject to the same planning constraints as onshore farms and, if sited sufficiently far offshore, have a lower visual impact " " Offshore Wind in the UK Wind energy resources are abundant and exploitable1, and supplied 9.4% of the UK's electricity needs in 20142. Offshore wind is
Offshore wind farms — the verge of energy revolution 6 Electricity from offshore wind farms enjoys public confidence 8 Domestic electricity production in 2018 10 Wind farms — another milestone of the Polish maritime sector 13 Offshore wind — development and construction 14 Offshore wind — electricity production 16
offshore wind capacity by June 2027 and 3,200 MW by 2035.8 Similarly, Maryland's Offshore Wind Energy Act of 2013 calls for 480 MW of offshore wind capacity to be developed. 9 Proponents of offshore wind energy tout its clean energy bona fides and rapidly decreasing costs (as evidenced by
The socio-economic impact of offshore wind energy in Greece 1. Introduction The offshore wind industry in Europe has been up-and-coming and is expected to grow more in the following decade. Although Greece has yet to exploit its sizeable offshore wind potential, floating offshore wind projects could be developed in Greek waters soon. Alma
Offshore wind is the logical next step in the development of wind energy. With higher wind speeds offshore and the fact that turbines can be placed out of sight, offshore wind helps increase the amount of renewable energy signifi cantly. Off-shore wind has been developed through pilot projects in the 1990s and has seen
Belajar sejarah melalui e-learning bukan menggantikan proses pembelajaran konvensional, namun pembelajaran melalui e-learning ini untuk memperkuat nilai belajar konvensional dengan menggunakan teknologi internet. Maka dalam Kamarga (2002, hlm 55) menyebutkan : Belajar sejarah melalui e-learning dapat diartikan sebagai upaya
