Offshore Wind Development Bluewater Wind LLC Peter Mandelstam, Founder and President

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Offshore Wind DevelopmentBluewater Wind
LLCPeter Mandelstam, Founder and President

• Michigan Wind Energy Conference 2009
• Detroit Cobo Hall

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Bluewater Wind is a developer of
offshore wind energy committed to bringing clean,
reliable and affordable electricity to New York,
Delaware, Maryland, New Jersey, New England and
the Great Lakes.
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The Bluewater Wind Team
One or more members have participated in the
development of 23 of the worlds 30 offshore
wind parks

• Category Company
• Wind turbine Vestas
• EPC Contractor Fluor
• Owners Engineer Ramboll
• Permitting Tetra Tech
• Offshore Electrical Engineering SEAS
• Interconnection/Onshore Electrical
  Engineering Energy Initiatives Group
• Electrical Equipment Supply and Installation
  ABB
• Wind Resource Assessment AWS Truewind
• Wind Resource Assessment Garrad Hassan
• Wind Resource Assessment EMD
• Marine Field Studies Aqua Survey
• Marine Field Studies Ocean Surveys
• Federal Regulatory Affairs Hill Kehne
• Insurance Marsh

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Bluewater WindFive Pillars of a Wind Project

• Wind Resource
• Site Control / Access
• Permits
• Interconnection to Grid
• Buyer of Energy

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Desired Qualities of an Offshore Wind Energy Site

• Avg. winds stronger than 18 mph
• Constructible water depths
• No significant water use conflicts
• Environmentally compatible areas
• Accessible transmission ports
• Large available project area footprint

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Proposed Projects
Hull Municipal
Buzzards Bay
Cape Wind Associates
Rhode Island
Deep Water
New Jersey
Cuyahoga County
Delaware
Atlantic Ocean
Southern Company
Project in Federal Waters
Project in State Waters
W.E.S.T. LLC
Gulf of Mexico
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Important Drivers for Offshore Wind

• Policy
• - RGGI 10 participating states, successful
  auctions
• - Increasing number of states with RPS
  requirements
• - Potential national RPS in 2009
• - Increasing costs of carbon-based technologies
• Offshore Resources
• - Stronger, more consistent winds near load
  centers
• - Decreased access to high wind land-based sites
• - Fewer wildlife barriers far offshore (avian
  and bat)
• Market Signals
• - Rising fossil fuel prices
• - Climate change considerations emissions
  reduction requirements
• - Economies of scale

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Bluewaters project portfolio includes the
following RPS states
Policy

• Delaware 20 by 2019
• New Jersey 22.5 by 2021
• New York 25 by 2013
• Rhode Island 16 by 2020

Most of these states have little land-based wind
potential or have considerable roadblocks to
large land-based wind
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Supply Aligned With Demand
Offshore Resources

• 28 of coastal states use 78 of the electricity
  in the U.S.

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The Future of Fossil Fuels?
Market Signals

• National stimulus legislation supports renewable
  energy development
• Volatility of fossil fuel prices risk and
  unpredictability
• Emerging issue of national energy security
  lessen imports by supporting domestic energy
  sources
• Global warming on political agenda
• Coal plants already being reconsidered/avoided

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Delaware Project
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Delaware The RFP

• In 2006, Delmarva Power Light customers saw an
  average rate increase of 59.
• May 1, 2006 - Delaware Legislature enacted House
  Bill 6
• - encouraged new generation sources that
  provide stable energy prices
• - offer long term power purchase agreements
  (PPA)
• November 1, 2006 Delmarva issues approved RFP
  for new generation under long-term contracts.
• Entire RFP process available at
  http//depsc.delaware.gov/irp.shtml

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Delaware The Proposal

• On December 22, 2006, Bluewater submitted bids
  for offshore wind parks. Each is a 600 MW
  facility located approx 12 to 17 nm off the coast
  of Delaware.
• Bluewater was competing against a natural gas
  combined cycle plant and a coal-fired integrated
  gasification combined cycle facility.
• The three proposals are available online
  http//depsc.delaware.gov/electric/irp/rfp_c.shtml
  

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Delaware The Selection

• May 8, 2007 PSC voted unanimously to order
  Delmarva to negotiate with Bluewater for an
  offshore wind contract.
• The two losing bidders, the coal plant and the NG
  plant, were voted to compete against each other
  to act as Bluewater's backup facility.

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Power Purchase Agreement (PPA) with Delmarva
Power Light

• First offshore PPA in the country
• 200MW
• Energy - 103.93/MWh (2009)
• Capacity - 70.23/kW year
• RECs estimated total 8,009,457 _at_ 15.23/MWh
  plus REC multiplier
• 2.5 annual escalator
• 0.74/MWh average monthly distribution customer
  cost impact (2009)

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Term Sheet with Delaware Municipal Electric
Corporation

• Supply of energy, capacity, and RECs to nine
  municipally-owned electric distribution utilities
• 20 year agreement
• Valued at 200 - 300 million over life of
  contract

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Positive Economic Impact Coming to Delaware

• 1.6 Billion investment (450 MW park)
• 200 million direct economic impact for Delaware
• State-wide economic development Delaware as
  offshore staging hub
• Brings up to 500 construction and up to 80-100
  OM jobs to Delaware
• Brings large contracts to Delaware ports
• Construction
• Operations and Maintenance
• Wind technician training at DelTech
• Delaware union jobs
• New businesses locate in places where electricity
  is affordable and stable-priced
• Increased tourism by 2.5 (University of Delaware)

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Supporters of the Bluewater Delaware Wind Park

• Vice President Joe Biden
• US Senator Tom Carper
• Lt. Governor John Carney
• Delaware Treasurer Jack Markell
• Delaware Insurance Commissioner Matthew Denn
• Delaware Municipal Electric Corporation
• Citizens for A Better Sussex
• Citizens for Clean Power
• Coalition for Climate Change Study and Action
• Delaware Audubon Society
• Delaware Building Construction Trades Council
• Delaware Nature Society
• Endecon, Inc.
• Epworth United Methodist Church
• Green Delaware

• League of Women Voters
• Natures Path of Integrated Health
• News Journal Editorial Board
• Delaware Chapter of Sierra Club
• Society of Natural History
• St. Andrews School
• Unitarian Universalists of Southern Delaware
• City of Dover
• City of Lewes
• City of Milford
• City of New Castle
• City of Newark
• City of Seaford
• Town of Clayton
• Town of Middletown

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Public Support for BluewaterPolitical Cartoons
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Next Steps
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Example Offshore Wind Park Layout
Intra-array submarine cables
Offshore transformer platform
Wind turbine array
Submarine cable to shore
OFFSHORE
Connection to existing grid at substation
ONSHORE
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• Met Tower Installation
• Met Tower Designs

Cape Wind
Horns Rev
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Permitting Studies

• Avian studies
• Marine biological studies (mammals, finfish,
  turtles, shellfish)
• Benthic and fisheries habitat assessment
• Water quality studies
• Cultural surveys
• Navigation and FAA studies
• Wetlands and other terrestrial systems

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Foundation InstallationHandling a Monopile
Source RPS Energy Presentation
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Sub-sea Electrical Cable InstallationCable-laying
Vessel at Work
Source www.hornsrev.dk
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Offshore Substation InstallationLifting a
Transformer Platform
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Turbine InstallationAssembling a Tower and
Lifting a Bunny Ear
Source www.mammoetvanoord.com
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Lessons From Delaware Success

• Engage the public early and often
• Identify all stakeholders
• Educate, educate, educate
• Honest and transparent communication
• Visualizations play a critical role in acceptance

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Thank You