US OFFSHORE WIND PROJECT PIPELINE TRACKER

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DEVELOPMENT: PRE-CONSTRUCTION PLANNING PART 1: PERMITTING & DEVELOPMENTAL MILESTONES US OFFSHORE WIND PROJECT PIPELINE TRACKER Layering permitting requirements against project progress trajectories and supply chain requirements In conjunction with: n Environmental impact assessments n Geophysical Surveying n Geotechnical studies • coastal • wind • seabed n Health & Safety assessments and planning n Project Management • marine permits • licenses and approvals • regulatory issue management • negotiating and securing financing • insurance contracting • contracting engineering companies • procurement management n Financial feasibility studies n Engineering design development/ Front-end engineering and design (FEED) studies: • turbine selection • foundation selection • mechanical and electrical systems • civil engineering work and infrastructures • interface management • health and safety planning • construction and installation plan • O&M model/strategy n Legal experts n Energy regulation experts n Taxation experts n Energy engineers n Electric engineers n Mechanical engineers n Telecom engineers n Computer engineers n Financial analysts n Logistic experts n Geotechnical experts n Drilling system operators n Civil engineers/ foundations experts n Naval engineers n Environmental experts n Sociological experts n Marine biology experts n Technicians n Physicists and weather data experts PRODUCTS AND SERVICES NEEDED PRODUCTS AND SERVICES NEEDED JOB ROLES NEEDED SITE ASSESSMENT LIVE OPPORTUNITIES (updated on Nov 25th, 2019) US projects in Development: Site Assessment phase Progress Checker: US projects in Development: Site Assessment phase Project Developer State Capacity Kitty Hawk Offshore Wind Avangrid Renewables North Carolina Potential to host 1,486 MW Liberty Wind Vineyard Wind LLC Massachusetts Up to 1200MW Equinor Wind - Massachusetts WEA Equinor Wind US LLC Massachusetts TBC Atlantic Shores Atlantic Shores Offshore Wind LLC New Jersey Up to 2.5GW Garden State Offshore Garden State Offshore Energy Delaware Up to 1GW Project SAP COP FDR FIR PPA or OREC Atlantic Shores Equinor Wind - Massachusetts WEA Garden State Offshore Kitty Hawk Offshore Wind Liberty Wind 1 Lessee submits Site Assessment Plan (SAP) 2 BOEM conducts environmental and technical reviews of SAP, reaching a decision to approve, approve with modification or disapprove the SAP 3 If approved, lessee is permitted to assess the site with meteorological buoys and/or towers Lessees are contracted by the BOEM within their lease agreements to complete their Site Assessment activities within a 5-year period. NC VA Kitty Hawk Dominion NY ME NH MA CT NJ DE MD PA RI 1. Lessee may conduct additional site assessment exercises 2. Lessee submits a Construction and Operations Plan (COP) 3. BOEM conducts NEPA Review and Consultation - For each approval that is found to trigger NEPA, either an Environmental Assessment or an Environmental Impact Statement will need to be prepared. 4. BOEM reviews COP deciding to approve, approve with modifications or disapprove 5. BOEM reviews Technical Reviews 6. Lessee submits Facility Design Report (FDR) and Fabrication and Installation Report (FIR) 7. BOEM reviews FDR and FIR and may request revisions/raise objections 8. Offshore wind procurement 9. Power Contract: Typically Power Purchase Agreement or Offshore Wind Renewable Energy Certificates (ORECs) negotiated and signed-off 10. PUC approvals required for shoreline activities including interconnection proposals and power contract approval 11. Proceed to construction Procurement & Manufacturing n Turbine supply • Turbine assembly • Blades • Drive train (gearbox and generator) • Power conversion • Large fabrications • Tower • Nacelle, rotor and assembly • Support structures n Draughtsmen n Manufacturing managers n Production supervisors n CNC machinists n Press brake operators n Training services n Training and resource managers n Instructors n Non-destructive testing (NDT) inspectors n Welders n Platers n Quality Controllers n Specialist coating technicians n Blasting technician appliers JOB ROLES NEEDED LOCAL CONTENT OPPORTUNITIES 1 2 Garden State Offshore Energy Skipjack Ocean Wind Atlantic Shores Offshore Wind Empire Wind South Fork Revolution Sunrise Wind (Massachusetts) Constitution Wind (Massachusetts) Bay State Wind Park City Wind (Massachusetts) Vineyard Wind Equinor (MA) Mayflower Wind Massachusetts Mayflower Wind Connecticut Liberty Wind DEVELOPMENT: SITE ASSESSMENT KEY DEVELOPMENT ACTIVITIES BY PROJECT PHASE 1 n Turbine installation n Foundation installation n Cable installation n Substation structures n Supporting secondary steelworks n Installation ports and logistics n Installation equipment n Onshore works n SCADA equipment n Electrical and electronic instrumentation n Control systems n Installation equipment requirements: • Loaders • Heavy-lift cranes • Floating cranes • High-tonnage trucks • High-tonnage vessels • Cable-laying vessel n Installation infrastructure requirements: • Waterfront site area: 10 hectares • Wharf length: 100 meters for feeder barge/ 200 meters for WTIV Vessel draft: 4 meters for feeder barge/ 12 meters for WTIV • Air draft: 120 meters Wharf live load capacity: 20 metric tons per square meter PRODUCTS AND SERVICES NEEDED Cable manufacturing facility requirements: n Waterfront site area: 12 hectares n Wharf length (if needed): 125 meters n Vessel draft: 12 meters n Air draft: 50 meters n Wharf live load capacity: 5 tons per square meter Substation manufacturing facility requirements: n Waterfront site area: 10 hectares n Wharf length: 50 meters n Vessel draft: 4 meters n Air draft: 40 meters n Wharf live load capacity: 20 metric tons per square meter Materials required for domestic manufacturing: n Steel (Grey cast iron) n High-alloy chronium steel n Copper n Fiberglass n Low alloy and electrical steel n NdFeB material n Pre-stressed concrete Manufacturing machinery required: n Welding machines n Lifting machines n Painting machines n Rolling drilling machines Infrastructure requirements for domestic manufacture Nacelle and rotor coastal assembly facility requirements: n Waterfront site area: 10 hectares n Wharf length: 50 meters n Vessel draft: 4 meters n Air draft: 15 meters n Wharf live load capacity: 20 metric tons per square meter Tower manufacturing, staging and installation requirements: n Waterfront site area: 10 hectares n Wharf length: 50 meters n Vessel draft: 4 meters n Air draft: 15 meters n Wharf live load capacity: 5 metric tons per square meter PRE-CONSTRUCTION PLANNING LIVE OPPORTUNITIES (updated on Nov 25th, 2019) US Projects in Development: Pre-construction Planning phase Progress Checker: US projects in Development: Site Assessment phase Project SAP COP FDR FIR PPA or OREC Bay State Wind Constitution Wind Empire Wind MarWin Mayflower Wind - Connecticut Mayflower Wind - Massachusetts In progress Ocean Wind Park City Wind Revolution Wind Skipjack (under review) X South Fork Wind Farm (under review) X Sunrise Wind (under review) Vineyard Wind 1 (under review) Virginia Wind Energy Area - Phase 1, 2 and 3 CONSTRUCTION & INSTALLATION n Ship crew n Truck drivers n Crane operators n Site security personnel n Cleaning personnel n Security experts n Cable plough operators n Trenching rov operators n Jetting systems operators n Helicopter pilots n Oceanographer n Hydrographer n Offshore processor n Onshore processor n Standardisation experts n Design engineers n R&D engineers JOB ROLES NEEDED CONSTRUCTION & INSTALLATION LIVE OPPORTUNITIES: US projects in Construction & Installation phase Planning & Analysis Leasing Construction & Installation Site Assessment 3 Project Developer State Capacity Coastal Virginia Offshore Wind (CVOW) Dominion Virginia Power Virginia 12 MW Progress Checker: US projects in Construction & Installation phase Project SAP COP FDR FIR PPA or OREC Coastal Virginia Offshore Wind (CVOW) RAP Utility Owned n Site Assessment Plan (SAP) BOEM requires the submission of a SAP by the commercial lease applicant or leaseholder to describe the initial activities necessary to characterize a lease site (e.g., installation of meteorological towers and metocean buoys), resource assessment surveys (e.g., meteorological and oceanographic data collection), or technology testing activities that involve the installation of bottom-founded facilities. BOEM requires the results of site characterization studies to be submitted with the SAP to evaluate the impact of proposed activities on physical, biological, and socioeconomic resources as well as the seafloor and sub-seafloor conditions that could be affected by the construction, installation, and operation of facilities and supporting structures. A SAP must be submitted 12 months from lease or grant issuance. n Construction and Operations Plan (COP) A COP contains information describing all planned facilities that the commercial lease applicant, the leaseholder, or operator of facilities on a commercial lease construct and use for the project, along with all proposed activities including proposed construction activities, commercial operations, and conceptual decommissioning plans for all planned facilities, including onshore and support facilities. A COP must be submitted six months prior to the completion of your site assessment term. A SAP and COP may be submitted concurrently. Facility Design Report (FDR) and Fabrication and Installation Report (FIR) If a lessee’s COP is approved or approved with modifications, the lessee must submit a Facility Design Report (FDR) and a Fabrication and Installation Report (FIR) for BOEM’s review prior to fabricating and installing those proposed facilities. In situations where a lessee’s FIR and/or FDR describe a project that deviates substantially from the range of parameters outlined in the PDE of a lessee’s approved COP, if necessary, BOEM may require a revision to a lessee’s COP and may initiate additional NEPA review and other environmental consultations. PPAs and ORECs PPAs and ORECs are binding commitments with state agencies to construct and operate offshore wind. PPAs are a commitment from a utility or state to purchase power produced at a specific offshore wind facility, while ORECs are credits or certificates awarded from the state to the offshore wind developer that facilitate financing for proposed offshore wind projects. Approvals of PPAs are within the jurisdiction of state public utilities commission (PUCs) that have a statutory duty to regulate the retail sale of electricity. Interconnection approval A developer of an offshore wind project is required to follow federal interconnection regulations as overseen by the Federal Energy Regulatory Commission (FERC). Interconnecting transmission is technically straightforward, but the impact of the new resource on the grid raises questions concerning the cost of interconnecting this power source and who pays for it. Whether a transmission project is in a competitive market or a vertically integrated utility territory, transmission projects may be paid for in one of three ways: (1) the generator pays for transmission services and includes the cost in the PPA; (2) users pay for transmission services; or (3) all users of the transmission system pay for the transmission project. Pinpointing project progress: A permitting checklist Project SAP COP FDR FIR PPA or OREC Coastal Virginia Offshore Wind (CVOW) RAP Utility owned Atlantic Shores Bay State WInd Constitution Wind Empire Wind Equinor Wind - Massachusetts WEA Garden State Offshore Kitty Hawk Offshore Wind Liberty Wind MarWin Mayflower Wind - Connecticut Mayflower Wind - Massachusetts In progress Ocean Wind Park City Wind Revolution Wind Skipjack (under review) South Fork Wind Farm (under review) Sunrise WInd (under review) Vineyard Wind 1 (under review) Virginia Wind Energy Area - Phase 1, 2 and 3 SECTION 2: NAVIGATING FEDERAL AND STATE AUTHORIZATION MILESTONES ConFex JUNE 18-19, 2020 | HYNES CONVENTION CENTER | BOSTON LOCAL INFRASTRUCTURE REQUIREMENTS n Balance of Plant • Array cables • Export cables • Transmission Substation structures: onshore and offshore • Turbine Foundations • Secondary steelwork • Operations base Project Developer State Capacity Aqua Ventus Demonstrator Phase 1, 2 and 3 University of Maine Aqua Ventus Project (floating wind turbines) Maine 12MW Bay State Wind Bay State Wind LLC (JV between Orsted A/S and Eversource Energy) Massachusetts 800MW Constitution Wind Orsted and Eversource 50:50 JV Massachusetts Several options Including a 400MW option. Empire Wind Equinor Wind US LLC New York 816MW MarWin US Wind Maryland 270MW Mayflower Wind - Connecticut Mayflower Wind Energy, LLC (joint venture of Shell and EDP Renewables) Massachusetts Proposal 1: 408MW Mayflower Wind - Massachusetts Mayflower Wind Energy, LLC (joint venture of Shell and EDP Renewables) Massachusetts 804MW Ocean Wind Orsted (PSEG negotiating a 25% equity stake) New Jersey 1,110MW Park City Wind Vineyard Wind LLC Massachusetts 408-1200MW Revolution Wind Orsted and Eversource under a 50:50 JV Rhode Island/ Massachusetts 700MW Skipjack Orsted Delaware 120MW South Fork Wind Farm Orsted and Eversource under a 50:50 JV Rhode Island 130MW Sunrise Wind Bay State Wind LLC (JV between Orsted A/S and Eversource Energy) New York 880MW Vineyard Wind 1 Vineyard Wind LLC Massachusetts 800MW Virginia Wind Energy Area - Phase 1, 2 and 3 Dominion Virginia Power Virginia 880MW x 3 19 commercial offshore wind projects pushing towards grid-connection in the US. 14 projects currently sit within the pre- construction planning stage with the potential to collectively generate >9.3GW of electricity. 9 out of 14 pre-construction projects have secured an off-taker agreement (Power Purchase Agreement or Offshore Wind Renewable Energy Certificate - OREC). NB Procurement obligations cannot be met without the necessary federal and state approvals. 4 out of 14 pre-construction projects have had their Construction & Operations Plans (COP) approved by the Bureau of Ocean Energy Management. COP approval is the permitting mechanism required before construction can commence. Here New Energy Update provides a step-by-step guide to early US offshore wind development, layering federal and state permitting requirements against project progress trajectories to enable you to assess the US offshore wind project pipeline. Initiate Leasing Process Lease Granted Submit SAP Submit COP Submit Design & Installation Plans Auction BOEM Deems COP Complete & Sufficient BOEM Approves COP Area Identification Publish Leasing Notices Pre-survey Meetings BOEM Environmental & Technical Reviews Site Assessment & Surveys 1-12 months 1-18 months 0-1 year 0-1 year 0-5 years NEPA/Environmental Reviews

Transcript of US OFFSHORE WIND PROJECT PIPELINE TRACKER

Page 1: US OFFSHORE WIND PROJECT PIPELINE TRACKER

Lessees are contracted by the BOEM within their lease agreements to complete their Site Assessment activities within a 5-year period.

DEVELOPMENT: PRE-CONSTRUCTION PLANNING

PART 1: PERMITTING & DEVELOPMENTAL MILESTONES

US OFFSHORE WIND PROJECT PIPELINE TRACKER

Layering permitting requirements against project progress trajectories and supply chain requirements

In conjunction with:

n Environmental impact assessmentsn Geophysical Surveying n Geotechnical studies • coastal • wind • seabedn Health & Safety assessments and

planning

n Project Management • marine permits • licenses and approvals • regulatory issue management • negotiating and securing financing • insurance contracting

• contracting engineering companies

• procurement managementn Financial feasibility studies

n Engineering design development/ Front-end engineering and design (FEED) studies:

• turbine selection • foundation selection • mechanical and electrical systems

• civil engineering work and infrastructures

• interface management • health and safety planning • construction and installation plan • O&M model/strategy

■n Legal experts■n Energy regulation

experts■n Taxation experts■n Energy engineers■n Electric engineers■n Mechanical engineers■n Telecom engineers

■n Computer engineers■n Financial analysts■n Logistic experts■n Geotechnical experts■n Drilling system operators ■n Civil engineers/

foundations experts■n Naval engineers

■n Environmental experts■n Sociological experts■n Marine biology experts■n Technicians■n Physicists and weather

data experts

PRODUCTS AND SERVICES NEEDED

PRODUCTS AND SERVICES NEEDED

JOB ROLES NEEDED

SITE ASSESSMENT LIVE OPPORTUNITIES (updated on Nov 25th, 2019)

US projects in Development: Site Assessment phase

Progress Checker: US projects in Development: Site Assessment phase

Project Developer State Capacity

Kitty Hawk Offshore Wind Avangrid Renewables North Carolina Potential to host 1,486 MW

Liberty Wind Vineyard Wind LLC Massachusetts Up to 1200MW

Equinor Wind - Massachusetts WEA Equinor Wind US LLC Massachusetts TBC

Atlantic Shores Atlantic Shores Offshore Wind LLC New Jersey Up to 2.5GW

Garden State Offshore Garden State Offshore Energy Delaware Up to 1GW

Project SAP COP FDR FIR PPA or OREC

Atlantic Shores ✘ ✘ ✘ ✘ ✘

Equinor Wind - Massachusetts WEA ✘ ✘ ✘ ✘ ✘

Garden State Offshore ✘ ✘ ✘ ✘ ✘

Kitty Hawk Offshore Wind ✘ ✘ ✘ ✘ ✘

Liberty Wind ✘ ✘ ✘ ✘ ✘

1 Lessee submits Site Assessment Plan (SAP)

2 BOEM conducts environmental and technical reviews of SAP, reaching a decision to approve, approve with modification or disapprove the SAP

3 If approved, lessee is permitted to assess the site with meteorological buoys and/or towers

Lessees are contracted by the BOEM within their lease agreements to complete their Site Assessment activities within a 5-year period.

N C

V A

Kitty HawkDominion

N Y

M E

N H

M A

C T

N J

D E

M D

P A

R I

1. Lessee may conduct additional site assessment exercises

2. Lessee submits a Construction and Operations Plan (COP)

3. BOEM conducts NEPA Review and Consultation - For each approval that is found to trigger NEPA, either an Environmental Assessment or an Environmental Impact Statement will need to be prepared.

4. BOEM reviews COP deciding to approve, approve with modifications or disapprove

5. BOEM reviews Technical Reviews

6. Lessee submits Facility Design Report (FDR) and Fabrication and Installation Report (FIR)

7. BOEM reviews FDR and FIR and may request revisions/raise objections

8. Offshore wind procurement

9. Power Contract: Typically Power Purchase Agreement or Offshore Wind Renewable Energy Certificates (ORECs) negotiated and signed-off

10. PUC approvals required for shoreline activities including interconnection proposals and power contract approval

11. Proceed to construction

Procurement & Manufacturing

■n Turbine supply • Turbine assembly • Blades • Drive train (gearbox and generator) • Power conversion • Large fabrications • Tower • Nacelle, rotor and assembly • Support structures

■n Draughtsmen■n Manufacturing managers■n Production supervisors■n CNC machinists■n Press brake operators■n Training services■n Training and resource managers

■n Instructors■n Non-destructive testing (NDT) inspectors ■n Welders■n Platers■n Quality Controllers■n Specialist coating technicians■n Blasting technician appliers

JOB ROLES NEEDED

LOCAL CONTENT OPPORTUNITIES

1

2

Garden State Offshore Energy

SkipjackOcean Wind

Atlantic Shores Offshore WindEmpire Wind

South Fork

RevolutionSunrise Wind (Massachusetts)Constitution Wind (Massachusetts)Bay State WindPark City Wind (Massachusetts)Vineyard WindEquinor (MA)Mayflower Wind MassachusettsMayflower Wind ConnecticutLiberty Wind

DEVELOPMENT: SITE ASSESSMENT

KEY DEVELOPMENT ACTIVITIES BY PROJECT PHASE

1

■n Turbine installation■n Foundation installation■n Cable installation■n Substation structures ■n Supporting secondary steelworks■n Installation ports and logistics■n Installation equipment ■n Onshore works ■n SCADA equipment■n Electrical and electronic

instrumentation ■n Control systems

■n Installation equipment requirements:

• Loaders • Heavy-lift cranes • Floating cranes • High-tonnage trucks • High-tonnage vessels • Cable-laying vessel

n Installation infrastructure requirements:

• Waterfront site area: 10 hectares • Wharf length: 100 meters for

feeder barge/ 200 meters for WTIV • Vessel draft: 4 meters for feeder

barge/ 12 meters for WTIV • Air draft: 120 meters

• Wharf live load capacity: 20 metric tons per square meter

PRODUCTS AND SERVICES NEEDED

Cable manufacturing facility requirements:■n Waterfront site area: 12 hectares■n Wharf length (if needed): 125 meters■n Vessel draft: 12 meters■n Air draft: 50 meters■n Wharf live load capacity: 5 tons per square meter

Substation manufacturing facility requirements:■n Waterfront site area: 10 hectares ■n Wharf length: 50 meters■n Vessel draft: 4 meters■n Air draft: 40 meters■n Wharf live load capacity: 20 metric tons per square meter

Materials required for domestic manufacturing:■n Steel (Grey cast iron)■n High-alloy chronium steel■n Copper■n Fiberglass■n Low alloy and electrical

steel■n NdFeB material■n Pre-stressed concrete

Manufacturing machinery required:■n Welding machines■n Lifting machines■n Painting machines■n Rolling drilling machines

Infrastructure requirements for domestic manufacture

Nacelle and rotor coastal assembly facility requirements:■n Waterfront site area: 10

hectares■n Wharf length: 50 meters■n Vessel draft: 4 meters■n Air draft: 15 meters■n Wharf live load capacity:

20 metric tons per square meter

Tower manufacturing, staging and installation requirements:■n Waterfront site area: 10

hectares ■n Wharf length: 50 meters■n Vessel draft: 4 meters■n Air draft: 15 meters■n Wharf live load capacity:

5 metric tons per square meter

PRE-CONSTRUCTION PLANNING LIVE OPPORTUNITIES (updated on Nov 25th, 2019)

US Projects in Development: Pre-construction Planning phase

Progress Checker: US projects in Development: Site Assessment phase

Project SAP COP FDR FIR PPA or OREC

Bay State Wind ✔ ✔ ✘ ✘ ✘

Constitution Wind ✔ ✔ ✘ ✘ ✘

Empire Wind ✔ ✘ ✘ ✘ ✔

MarWin ✔ ✘ ✘ ✘ ✔

Mayflower Wind - Connecticut ✔ ✘ ✘ ✘ ✘

Mayflower Wind - Massachusetts ✔ ✘ ✘ ✘ In progress

Ocean Wind ✔ ✘ ✘ ✘ ✔

Park City Wind ✔ ✔ ✘ ✘ ✘

Revolution Wind ✔ ✘ ✘ ✘ ✔

Skipjack ✔ (under review) ✘ X ✔

South Fork Wind Farm ✔ (under review) ✘ X ✔

Sunrise Wind ✔ (under review) ✘ ✘ ✔

Vineyard Wind 1 ✔ (under review) ✘ ✘ ✔

Virginia Wind Energy Area - Phase 1, 2 and 3 ✔ ✘ ✘ ✘ ✔

CONSTRUCTION & INSTALLATION

■n Ship crew ■n Truck drivers■n Crane operators ■n Site security personnel■n Cleaning personnel■n Security experts

■n Cable plough operators■n Trenching rov operators ■n Jetting systems operators ■n Helicopter pilots■n Oceanographer■n Hydrographer

■n Offshore processor■n Onshore processor■n Standardisation experts■n Design engineers ■n R&D engineers

JOB ROLES NEEDED

CONSTRUCTION & INSTALLATION LIVE OPPORTUNITIES:

US projects in Construction & Installation phase

Planning & Analysis Leasing Construction & InstallationSite Assessment

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Project Developer State Capacity

Coastal Virginia Offshore Wind (CVOW) Dominion Virginia Power Virginia 12 MW

Progress Checker: US projects in Construction & Installation phase

Project SAP COP FDR FIR PPA or OREC

Coastal Virginia Offshore Wind (CVOW) ✔■RAP ✔ ✔ ✔ Utility Owned

■n Site Assessment Plan (SAP) BOEM requires the submission of a SAP by the commercial lease applicant or leaseholder to describe the initial activities necessary to characterize a lease site (e.g., installation of meteorological towers and metocean buoys), resource assessment surveys (e.g., meteorological and oceanographic data collection), or technology testing activities that involve the installation of bottom-founded facilities. BOEM requires the results of site characterization studies to be submitted with the SAP to evaluate the impact of proposed activities on physical, biological, and socioeconomic resources as well as the seafloor and sub-seafloor conditions that could be affected by the construction, installation, and operation of facilities and supporting structures.

A SAP must be submitted 12 months from lease or grant issuance.

■n Construction and Operations Plan (COP)A COP contains information describing all planned facilities that the commercial lease applicant, the leaseholder, or operator of facilities on a commercial lease construct and use for the project, along with all proposed activities including proposed construction activities, commercial operations, and conceptual decommissioning plans for all planned facilities, including onshore and support facilities.

A COP must be submitted six months prior to the completion of your site assessment term.

A SAP and COP may be submitted concurrently.

Facility Design Report (FDR) and Fabrication and Installation Report (FIR)If a lessee’s COP is approved or approved with modifications, the lessee must submit a Facility Design Report (FDR) and a Fabrication and Installation Report (FIR) for BOEM’s review prior to fabricating and installing those proposed facilities. In situations where a lessee’s FIR and/or FDR describe a project that deviates substantially from the range of parameters outlined in the PDE of a lessee’s approved COP, if necessary, BOEM may require a revision to a lessee’s COP and may initiate additional NEPA review and other environmental consultations.

PPAs and ORECsPPAs and ORECs are binding commitments with state agencies to construct and operate offshore wind. PPAs are a commitment from a utility or state to purchase power produced at a specific offshore wind facility, while ORECs are credits or certificates awarded from the state to the offshore wind developer that facilitate financing for proposed offshore wind projects. Approvals of PPAs are within the jurisdiction of state public utilities commission (PUCs) that have a statutory duty to regulate the retail sale of electricity.

Interconnection approval A developer of an offshore wind project is required to follow federal interconnection regulations as overseen by the Federal Energy Regulatory Commission (FERC). Interconnecting transmission is technically straightforward, but the impact of the new resource on the grid raises questions concerning the cost of interconnecting this power source and who pays for it. Whether a transmission project is in a competitive market or a vertically integrated utility territory, transmission projects may be paid for in one of three ways: (1) the generator pays for transmission services and includes the cost in the PPA; (2) users pay for transmission services; or (3) all users of the transmission system pay for the transmission project.

Pinpointing project progress: A permitting checklist

Project SAP COP FDR FIR PPA or OREC

Coastal Virginia Offshore Wind (CVOW) ✔■RAP ✔ ✔ ✔ Utility owned

Atlantic Shores ✘ ✘ ✘ ✘ ✘

Bay State WInd ✔ ✔ ✘ ✘ ✘

Constitution Wind ✔ ✔ ✘ ✘ ✘

Empire Wind ✔ ✘ ✘ ✘ ✔

Equinor Wind - Massachusetts WEA ✘ ✘ ✘ ✘ ✘

Garden State Offshore ✘ ✘ ✘ ✘ ✘

Kitty Hawk Offshore Wind ✘ ✘ ✘ ✘ ✘

Liberty Wind ✘ ✘ ✘ ✘ ✘

MarWin ✔ ✘ ✘ ✘ ✔

Mayflower Wind - Connecticut ✔ ✘ ✘ ✘ ✘

Mayflower Wind - Massachusetts ✔ ✘ ✘ ✘ In progress

Ocean Wind ✔ ✘ ✘ ✘ ✔

Park City Wind ✔ ✔ ✘ ✘ ✘

Revolution Wind ✔ ✘ ✘ ✘ ✔

Skipjack ✔ ✔■(under review) ✘ ✘ ✔

South Fork Wind Farm ✔ ✔■(under review) ✘ ✘ ✔

Sunrise WInd ✔ ✔■(under review) ✘ ✘ ✔

Vineyard Wind 1 ✔ ✔■(under review) ✘ ✘ ✔

Virginia Wind Energy Area - Phase 1, 2 and 3 ✔ ✘ ✘ ✘ ✔

SECTION 2: NAVIGATING FEDERAL AND STATE AUTHORIZATION MILESTONES

ConFexJUNE 18-19, 2020 | HYNES CONVENTION CENTER | BOSTON

LOCAL INFRASTRUCTURE REQUIREMENTS

■n Balance of Plant • Array cables • Export cables • Transmission

• Substation structures: onshore and offshore • Turbine Foundations • Secondary steelwork • Operations base

Project Developer State Capacity

Aqua Ventus Demonstrator Phase 1, 2 and 3

University of Maine Aqua Ventus Project (floating wind turbines)

Maine 12MW

Bay State Wind Bay State Wind LLC (JV between Orsted A/S and Eversource Energy)

Massachusetts 800MW

Constitution Wind Orsted and Eversource 50:50 JV Massachusetts Several options Including a 400MW option.

Empire Wind Equinor Wind US LLC New York 816MW

MarWin US Wind Maryland 270MW

Mayflower Wind - Connecticut Mayflower Wind Energy, LLC (joint venture of Shell and EDP Renewables)

Massachusetts Proposal 1: 408MW

Mayflower Wind - Massachusetts Mayflower Wind Energy, LLC (joint venture of Shell and EDP Renewables)

Massachusetts 804MW

Ocean Wind Orsted (PSEG negotiating a 25% equity stake)

New Jersey 1,110MW

Park City Wind Vineyard Wind LLC Massachusetts 408-1200MW

Revolution Wind Orsted and Eversource under a 50:50 JV Rhode Island/ Massachusetts

700MW

Skipjack Orsted Delaware 120MW

South Fork Wind Farm Orsted and Eversource under a 50:50 JV Rhode Island 130MW

Sunrise Wind Bay State Wind LLC (JV between Orsted A/S and Eversource Energy)

New York 880MW

Vineyard Wind 1 Vineyard Wind LLC Massachusetts 800MW

Virginia Wind Energy Area - Phase 1, 2 and 3

Dominion Virginia Power Virginia 880MW x 3

19 commercial offshore wind projects pushing towards grid-connection in the US.

14 projects currently sit within the pre-construction planning stage with the potential to collectively generate >9.3GW of electricity.

9 out of 14 pre-construction projects have secured an off-taker agreement (Power Purchase Agreement or Offshore Wind Renewable Energy Certificate - OREC). NB Procurement obligations cannot be met without the necessary federal and state approvals.

4 out of 14 pre-construction projects have had their Construction & Operations Plans (COP) approved by the Bureau of Ocean Energy Management. COP approval is the permitting mechanism required before construction can commence.

Here New Energy Update provides a step-by-step guide to early US offshore wind development, layering federal and state permitting requirements against project progress trajectories to enable you to assess the US offshore wind project pipeline.

Initiate Leasing Process

Lease Granted

Submit SAP

Submit COP

Submit Design & Installation Plans

Auction

BOEM Deems COP Complete &

Sufficient

BOEM Approves

COP

Area Identification

Publish Leasing Notices

Pre-survey Meetings

BOEM Environmental &

Technical ReviewsSite Assessment & Surveys

1-12 months 1-18 months 0-1 year 0-1 year0-5 years

NEPA/Environmental Reviews

Page 2: US OFFSHORE WIND PROJECT PIPELINE TRACKER

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