Marylands Approach to Offshore Wind Lessons Learned Mary Beth Tung, - - PowerPoint PPT Presentation

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Marylands Approach to Offshore Wind Lessons Learned Mary Beth Tung, - - PowerPoint PPT Presentation

Marylands Approach to Offshore Wind Lessons Learned Mary Beth Tung, Director Maryland Energy Administration Southern States Energy Board September 24, 2017 www.Energy.Maryland.gov 1 Maryland Activities 2010 Maryland initiated the


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www.Energy.Maryland.gov

Maryland’s Approach to Offshore Wind Lessons Learned

Mary Beth Tung, Director Maryland Energy Administration Southern States Energy Board

September 24, 2017

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www.Energy.Maryland.gov

  • 2010 – Maryland initiated the Stakeholder Taskforce

with BOEM

  • 2012 - PSC Order 84692 – Exelon/Constellation

Merger

  • 2013 - Maryland Offshore Wind Energy Act of 2013
  • 2014 - Regulations adopted – Rulemaking 51
  • 2016/2017 - Projects reviewed & approved
  • 2020/2022 – Projects expected to be in operation

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Maryland Activities

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www.Energy.Maryland.gov

  • Current RPS requires 25 percent by 2020

– 2.5 percent (480 MW) offshore wind carve out

  • Created a project application and review process
  • ORECs are the State’s financial support
  • Specifies a max price and rate caps
  • Projects must provide a net benefit to Maryland’s

economy, environment, and public health

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Maryland Offshore Wind

Energy Act of 2013

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  • An OREC is equal to 1 MWh of electricity produced

by offshore wind and its generation attributes

  • ORECs are bundled with energy, capacity, ancillary

services, and environmental attributes

  • OREC Cap - $190/MWh
  • Rate Increase Cap –

– $1.50/month for residential – 1.5%/year for non-residential

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What is an OREC?

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Delmarva Lease Areas

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Maryland Projects

Skipjack (Deepwater Wind)

  • 120 MW
  • Fifteen 8 MW turbines
  • 19 miles from MD
  • $720 million cost estimate
  • Connects to Ocean City, MD
  • Scheduled for November 2022

completion

  • $0.43/month (Res) & 0.43%

(C&I) US Wind

  • 248 MW
  • Forty-one 6 MW turbines or

Sixty-two 4 MW turbines

  • 17 miles from MD*
  • $1.4 Billion cost estimate
  • Connects to Indian River, DE
  • Scheduled for January 2020

completion

  • $0.97/month (Res) & 0.96%

(C&I)

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Approval Conditions

Skipjack (Deepwater Wind)

  • Must spend 34% of total costs

in Maryland

  • $25 million for steel fabrication

facility

  • $13.2 million for port

infrastructure upgrades

  • $6 million to the OSWBDF
  • 913 dev/construction FTE jobs
  • 484 O&M FTE jobs
  • Minority participation (% TBD)

US Wind

  • Must spend 19% of total costs

in Maryland

  • $51 million for steel fabrication

facility

  • $26.4 million for port

infrastructure upgrades

  • $6 million to the OSWBDF
  • 1,298 dev/const FTE jobs
  • 2,282 O&M FTE jobs
  • Minority participation (% TBD)

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  • In Maryland’s experience

– Siting Lease Areas – Preparing the Local Supply Chain

  • Port Infrastructure
  • Local Businesses
  • Workforce Development

OSW Challenges

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OSW Lease Areas

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Delmarva Lease Areas

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Impacts to Visibility

Atmospherics

  • Humidity
  • Sea Spray
  • Glare
  • Weather Events
  • Temperature
  • Time of Day
  • Haze/Smog
  • Lighting

Project Siting

  • Wind Farm Distance
  • Number of Turbines
  • Spacing between Turbines
  • Coverage of the Horizon
  • How good is your eyesight?

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  • Port Infrastructure

– Who pays for upgrades?

  • Local Businesses

– MEA Offshore Wind Business Development Grant Program

  • Workforce Development

– MEA Offshore Wind Workforce Development Grant Program

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Supply Chain

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  • Do your homework
  • Be open, transparent, and inclusive
  • Communicate Effectively
  • Be patient
  • Be consistent

Unsolicited Advice

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www.Energy.Maryland.gov

Mary Beth Tung Director Maryland Energy Administration

Questions?

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