Transcript AEP, Air Emissions, and Coal

OFFSHORE WIND
CONNECTION & COSTS
Mary Doswell
Alternative Energy Solutions
December 7th, 2010
Virginia Offshore Wind
Integration Study
Virginia Beach Transmission
System
Study Scope
System studied was a 2020 Summer Peak
Loading System
Study is not a substitute for a PJM Interconnection Study
Two Wind Farm Scenarios Studied
2700 MW Wind Farm
4500 MW Wind
• Equal to a 900 MW capacity
injection
• Equal to a 1500 MW capacity
injection
Landstown Substation
Landstown Substation chosen as interconnection site
Multiple 230 kV lines
present
Available land
Virginia
Offshore
Border
Offshore
Transmission
Station
Shore
Line
Distribution
voltage lines
Once on shore,
attachment facilities
could extend several
more miles to point
of interconnection
Attachment Facilities – 15 to 25 miles just to
shore line. Would be transmission voltage
level and possibly need to be multiple DC
lines.
Study Results 2700 MW Site
900 MW Capacity Injection
• No reliability issues identified
2700 MW Energy Injection
• Three 230 kV lines potentially overloaded
• Estimated cost to resolve deficiencies $30 M
• These are optional upgrades developer(s)
can opt to have. Otherwise output of the wind
farm may be restricted based on system
conditions
Study Results 4500 MW Site
1500 MW Capacity Injection
• No reliability issues identified
4500 MW Energy Injection
• Five 230 kV lines potentially overloaded
• Estimated cost to resolve deficiencies $70 M
• These are optional upgrades developer(s) can opt
to have. Otherwise output of the wind farm may be
restricted based on system conditions
At this level a second interconnection
site should be considered
• Fentress Substation
Conclusion
It will be possible to
interconnect a large Wind
Farm Site in the area
Transmission upgrades
required
Getting transmission
facilities from the offshore
sites to interconnection
substations will be a major
challenge.
Urban area
1000 MW
without many
system
improvements
Involve
existing
facilities and
right-of-ways.
Environmental
constraints
Dominion’s Interest in Renewable Energy
Meet state’s renewable goals in Virginia and North Carolina
Reduce Dominion’s carbon intensity
Maintain a balanced and diversified generation portfolio
Hedge against potential rise in future fuel costs
In 2007, VA passed into law Voluntary Renewable Portfolio Standard (RPS)
• 4% by 2010, 7% by 2016,12% by 2022, 15% by 2025
VA 2010 law passed to allow arbitrage of “Tier I RECs” for “Tier II RECs”:
ratepayer benefit
Evaluating all available options to meet target
• Existing utility owned renewable options
• Build renewable facilities in VA
• Purchase REC’s
Offshore Wind - Cost Comparison
$6,000
$400
$5,500
$350
$300
$4,500
Project PPA’s
or applied
research to
price
Renewable
Obligations
$4,000
$3,500
$3,000
$250
$200
$/KW Installed Range
Estimated levelized cost or PPA price - Low $/MWH
$2,500
$150
Estimated levelized cost or PPA price - High $/MWH
$2,000
$100
VCERC
Emerging Energy UK Department of UK Department of
Research 2009 Energy and Climate Energy and Climate
Change 2008 (E&Y) Change June 2010
(Mott McDonald)
Blue Water Delaware
Cape Wind Massachusetts
Block Island Rhode Island
$/MWH Levelized Cost
$/KW Installed Cost
$5,000
Resources for Renewable Generation in VA
$/MWH
Non Dispatchable
Renewables
Low
Landfill Gas
Low
Poultry Waste
Low
Hydro Power
Med
Biomass
Med
Onshore Wind
High
Offshore Wind
Low
Wave Power
High
Solar
Low: 0-100 MW
Med: 100-500 MW
Challenges/
Location, High O&M , Local
Fuel for these resources
are waste products, highly
limited and location
specific.
Cost of New Combined Cycle Gas Turbine
US EIA Annual Energy Outlook 2010
Dispatchable
Type of Resource
Technology
Resourc
Low Municipal Solid Waste
Location, Emission controls
Location, Local Permitting ,
Environmental, NIMBY
Permitting (10 year process) and
Environmental Impact
Fuel Supply, Transportation,
Emissions Impact, Water
NIMBY, Land Use, Constructability
Military, Permitting, Hurricanes and
Limited Global Experience in
Offshore Wind Operations
Technology and Permitting
Land Area Requirement
$0
$200
$400
* $/MWH Levelized cost of a resource does not differentiate the value of when generation occurs.
Wind powers highest generation is at night, while Biomass operate during peak daytime hours. Estimates based on publicly
available data.
Summary
Study confirms minimal upgrades required to
connect large scale offshore wind
• Optional transmission upgrades involve relatively modest cost
increases for existing facilities and rights-of-way
• Transmission facilities from the offshore sites to
interconnection substations through urban areas still a
challenge
Offshore wind is the least cost-high volume
renewable resource in Mid-Atlantic
• Less costly renewable resources are limited in resource
availability
Current prices for offshore wind 2 to 3 times higher
than conventional generation