Overview

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Overview

• Who Development team and investment principals
• Where Siting assessments for wind, energy,
  waves, and environment
• What Activities to accomplish and equipment
  needed for power plant in-service
• When In-service date
• How Vision roadmap work to overcome
  obstacles

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Transformer
Turbine
Tower
Interconnection / Switchgear
Substation / Transformer
Buried or Covered Cable
Foundation
Anti-scour Protection
Graphic Courtesy of Walt Musial - NREL
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Offshore Wind Development-Design-Build Process
Roadmap
Power Purchase Agreement
Electrical Civil Engineering
Electrical Civil Construction
Bidding Procurement
Site Assessment
Operations Maintenance
Startup Commission
Permits
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Who
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Development Team

• Electricity offtaker
• Developer
• Turbine supplier
• Major equipment suppliers
• Engineering
• Construction
• Commissioning all of above

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Developer Responsibilities

• Secure interconnection agreement, PPA, and
  financing
• Secure permits/approvals
• Project management
• Schedule
• Hire engineering and construction
• Equipment procurement

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Developer Responsibilities - cont.

• Economics through careful project design
• Public acceptance
• Schedule
• Development, engineering, construction, and OM
  cost estimates
• Revenue estimates

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Needed in Hand

• Permits go ahead
• Turbine Agreement performance, cost, delivery
  date, warranty, OM rider
• Interconnection Agreement to grid
• Power Purchase Agreement (PPA) who is paying
  for power

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Where
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Site Assessment Activities

• Environmental fatal flaws
• Permitting requirements (federal, state, local)
• Constructability review
• Who can do it
• What needs to be done
• How it can be done
• When (season) to construct
• Government relations
• Mapping / Renderings

Site Assessment
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Wind Interconnect Studies

• Wind resource
• Turbine energy production drives revenues
• Coordination of interconnect studies and
  preliminary electrical design

Power Curve
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Macro-Turbine Placement A Balancing Act of
Interests

• Meteorological studies best wind
• Setbacks shoreline, conservation and fishing
  areas
• Environmental geologic, archaeological,
  threatened and endangered species, migratory and
  aquatic life
• Other preferences shipping lanes, viewshed

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Turbine Placement Tradeoffs

• Better wind and viewshed further from shore vs.
  increased cable costs and electrical losses to
  transport power onshore
• Space between turbines to minimize cable costs
  vs. minimizing wake effects
• A turbine in the wind shadow of another decreases
  energy output, increases turbulence
• Component life

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Environmental Activities

• Shoreline/wetlands
• Ocean floor
• Threatened and endangered species
• Avian and marine impacts
• Archaeological and cultural artifacts
• Transmission lines

Permits
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Public Acceptance

• Viewshed
• Property values
• Land use and zoning for interconnection and
  construction laydown
• Recreational fishing and boating
• Other land and water uses

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What
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Role of the Utility

• Buy the energy under a PPA or
• Utility Ownership of Assets Rate Base
• Self-build utility as General Contractor, like
  other power plants, or
• Turnkey purchase wind farm at in-service,
  relying on others experience

Power Purchase Agreement
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Power Purchase Agreement Pricing

• Need project capital, operating, and OM costs
• Equipment and labor prices change quickly
  timing is everything
• Need energy production estimates
• Wind resource
• Turbine production curves
• Loss estimates
• Develop pro forma to negotiate PPA pricing

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Major Cost Components Offshore Wind Farm (2002)

• Onshore Turbines Tower are 80 of cost
• Foundations and installation are expensive on
  water

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Electrical Engineering

• Collector system
• Substation design / power factor corrections
• Transport line
• Interconnection
• System protection
• Communications/SCADA

Electrical Civil Engineering
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Collector System

• Individual turbines are strung together on low
  ampacity cable to form a circuit
• Line losses are a consideration function of
  distance and cable ampacity
• A 200-MW wind farm can use 20 miles of cable in
  the collector system circuits alone, not
  including to-shore cabling

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Civil Engineering Site Specific

• Geotechnical investigations
• Foundation design
• Wind, water, and ocean floor loadings
• Thermal testing
• Substation/Interconnection civil design
• Environmental conditions vs. loads are key

Electrical Civil Engineering
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Bidding Procurement

• Onshore is sellers market affects price, high
  demand
• Availability plan ahead
• Long lead times one year for the transformer
  after specification
• Contract administration
• Construction quality assurance evaluate
  equipment during manufacturing process catch
  problems early, before construction
• Procurement desire multiple vendors

Bidding Procurement
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Electrical Civil Construction

• Surveying, site work, roads, restoration
• Foundations, piers, concrete
• Electrical collector systems
• Substations and grid interconnections
• Turbine erection
• Equipment installation
• Control building

Electrical Civil Construction
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Courtesy of Vestas Wind
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Planning Scheduling

• Coordinate thousands of activities
• Start during bid process
• Logistics of labor and materials
• Cranes, barges, helicopters, equipment delivery
  dates
• Critical path items
• Relationship of tasks (predecessors/successors)

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Construction Cost Control

• More than price of materials, labor, delivery
• Track changes and how they affect costs
• Minimize delays, control schedule
• Look at costs in real time during construction
  phase
• Include wind/weather delay days

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Health Safety

• Key focus for each construction team
• Offshore wind farms are in high wind areas
• Added challenge of construction under and over
  water

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Startup Commissioning

• Component measurements
• In situ cable testing, etc.
• Construction environmental compliance
• Energization
• Performance testing

Startup Commissioning
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Operations Maintenance

• Electrical distances to interconnection may be
  long
• Plan for towers as storm shelters
• Corrosion
• Wave action and ice barriers
• Scour inspections

Operations Maintenance
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Operations Maintenance Needs

• Operations and data management information
  systems (SCADA)
• Scheduled and emergency maintenance and repair
  plans
• Environmental risk management systems and
  programs
• Emergency planning and response programs

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When
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When in North America

• Ontario 2 years to in-service turned into
  current moratorium
• Texas Public acceptance, high energy economy,
  existing platforms, get it done, different
  regulatory body within 10 miles of shoreline 3
  years to in-service, 2010
• New England New approvals, politics (blue vs.
  red), public acceptance 5 years public policy to
  in-service, 2012
• Southeast Coast Hard questions already
  answered 8 years in-service, 2015
• Ohio Offshore Lake Erie being reviewed now

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Roadmap Schedule
Power Purchase Agreement
Electrical Civil Engineering
Electrical Civil Construction
Bidding Procurement
Site Assessment
Operations Maintenance
Startup Commissioning
Permits
2007 - 2009
2010 -2012
2012
2012
2013
2014
2015
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How
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Offshore Wind Energy Collaborative Recommendations

• Technology development foundations,
  constructability, size turbines to meet economics
• Environmental compatibility
• Economic and financial viability
• Regulation and government policies
• Leadership must have legislative

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Strategies for Leadership

• Create and maintain a vision of offshore wind as
  part of a mainstream energy mix
• Develop projected timetable for key milestones
• Site-specific implementation plan Utility and
  State coordinated document

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Offshore Roadmap QA

• Who Development team and investment principals
• Where Siting assessments for wind, energy,
  waves, and environment
• What Activities to accomplish and equipment
  needed for power plant in-service
• When In-service date
• How Vision roadmap work to overcome
  obstacles

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Questions?Diane Reinebach, M.S., PERMT, Inc.,
an Alliant Energy Affiliatediane.reinebach_at_rmtinc
.com