Brandi Colander's Blog: Moving Beyond Oil

America's First Utility-Scale Offshore Wind Farm Announces Power Purchase Contract

2010-05-07T15:41:17Z

Offshore wind in the United States took another step forward today. Cape Wind has announced the details of their long term power purchase contract with National Grid. During today's news conference call, National Grid President Tom King and Cape Wind President Jim Gordon discussed the significance of this landmark event.

National Grid has agreed to purchase half of the energy that Cape Wind will generate and RECs for 15 years starting in 2013. Cape Wind will provide National Grid with a bundle of attributes in this agreement that aggregate 20.7 cents per kilowatt hour. The energy price set for 2013 is 12.5 cents per kilowatt hour.

What does this mean?

This means that Cape Wind has moved to the next step in the process of providing alternative energy to up to 75 percent of Cape Cod residents. The contract, to be filed on Monday with the Massachusetts Department of Public Utilities (“DPU”), will increase 3.5% over it's term adding $1.59 to the total monthly bill of the average customer. To those who say they can’t afford this, National Grid says that they can’t afford not to act now. “We need to do more and as we do more, we reduce our costs for all of us,” said Tom King.

National Grid’s projection that their purchase of power from Cape Wind will result in an increase three years from now of $1.59 per month for a typical home’s electric bill is essentially an increase of roughly 5 cents a day. For a nickel a day, Cape Wind is striving to offer cleaner air, new jobs and reduced reliance on oil, coal and gas. As America’s first federally approved utility-scale offshore wind farm continues to move forward, it is important to keep in mind that there are other invisible costs that need to be weighed and balanced. This contract offers a diversification in their portfolio by including the hedge value of a large term contract, environmental attributes, transmission and RECs. With that said, the cost of inaction is indeed higher than a nickel a day.

These long term contracts are essential for offshore wind developers as they need to secure the utility's business in order to attract financing for their projects. Cape Wind is estimated to cost roughly $1 billion. Cape Wind is convinced that they will sell the other 50% of the power for the project. Now that they have their "anchor" customer, National Grid, they have begun negotiations with the banking community and equity investors who have expressed interest as they watch the progress of this project; a mere 9 days after receiving federal approval of this historic project.

The economic recession has had a tremendous impact on our energy prices. The global economic recession has reduced the demand for fossil fuels which, on average, lowers electricity prices, temporarily. As global economies recover, we can anticipate the prices of gas, coal and oil to rise again.

As a matter of process, state regulators have to approve this contract. It is anticipated that the DPU proceeding will take place in six months and the Attorney General's Office will weigh in with an advising opinion. There will be ample opportunity to discuss and debate the contract as the DPU undertakes it process of review.

National Grid has stepped up to support the project because they believe that the nation must move towards a cleaner, greener economy. They emphasized the need to have the United States lead on comprehensive legislation for energy and climate as well as renewables. “The American worker and the economy are losing out daily. China invested more than $400 billion in renewables this year whereas the United States only invested $80 billion,” said King.

As the first utility-scale American offshore wind energy facility, this project represents a giant leap forward for our country’s clean energy future. Cape Wind could jumpstart the U.S. offshore wind industry – paving the way for other facilities to get off the ground nationwide and do it quicker and easier than in the past. It’s more important now than ever to make the right decisions about how to develop energy off our coasts, and doing so in an environmentally sustainable and cost-effective manner is important to Americans.

For 24/7 information on Cape Wind’s potential clean energy offerings by MW hours and carbon dioxide offsets visit: http://www.capewind.org/

Earth Day 2010: What Earth Day Means to Me

2010-04-22T17:14:52Z

Fortunately, when you work at the Natural Resources Defense Council-every day is Earth Day! However, this year, we celebrate the 40th Anniversary of Earth Day. 40 years of taking one day of the year to pause and ponder what impact our daily activities have on the only planet where we are certain that life exists.

For some, Earth Day means that they will make an extra effort to recycle. For others, it means they invest in energy efficient technologies in their home, turning a day of celebrating green into a lifetime of saving them another form of green-money! The opportunities to contribute are infinite, the quest the same. If you pause at all to reflect on this day, you are acknowledging that your heart tugs a bit and you want to do your part.

What does this Earth Day mean to me? It means that we are in a position to determine, perhaps more than any other time in history, the trajectory for the next 40 years of Earth Day celebrations. It presents an opportunity to determine how we will commemorate our planet given the advancements our society has made in education, science, and technology. I recognize that these are lofty ideals, so what can you do now?

Here are a couple of options:

Invest in green power with just three clicks of your mouse!

This site - www.greenpowernyc.com - is a joint effort by the Natural Resources Defense Council and the Alliance for Clean Energy New York.

We created this website to provide New Yorkers with a tool to lead the way in repowering America, starting with their own homes and small businesses.

Simply go to http://www.greenpowernyc.com/ and it'll walk you these through 3 easy steps:

Step 1: Choose the type of renewable energy you want
Step 2: Choose a provider
Step 3: Fill out a short form to sign up

For more information, click here.

Get involved in your backyard (ioby)!

IOBY: is dedicated to fostering environmental action to occur precisely IN OUR BACKYARDS! ioby.org (pronounced eye-OH-be) enables you to support neighborhood level environmental projects with a few simple clicks.

This organization serves as a constant reminder that the environment that needs a little tender loving care is not only the Amazon rainforest or Arctic glaciers but the places where we work and live. There is a pressing need for your involvement much closer to home. Getting involved with ioby allows you to witness firsthand the return on your investment whether you give your time or money.

For more information, click here.

Finally, for me, this Earth Day presents a call to action. I would like to see the world make a commitment to investing in cleaner energy. Like all change, you must start at home. The United States is positioned to demonstrate a commitment to moving beyond business as usual and to remain competitive with the rest of the world by offering innovative solutions that generate clean energy alternatives. Early next week we anticipate comprehensive climate and energy legislation. 40 years from now, we should be able to hold ourselves accountable to the Copenhagen Accord, establish a competitive edge on renewable energy technology and be a global leader in developing sustainable solutions to nurture our ever evolving planet.

Happy Earth Day!

Offshore Wind: Domestic Opportunities and Advantages Abroad

2010-04-21T21:01:02Z

Recently, the American Wind Energy Association, (“AWEA”), the national trade association of America’s wind industry, released their United States Wind Industry Annual Market Report. The report highlights can be found at the end of this blog. Particularly noteworthy, the factoids confirming this industry’s ability to create domestic jobs that reduce our dependence on foreign fossil fuels. Furthermore, the report provided assurances that offshore wind has a bright, albeit challenging road ahead. Perhaps the best way to truly evaluate the promise of offshore renewables, particularly offshore wind, is by looking to those who have forged ahead beyond domestic borders.

According to the European Wind Energy Association, (“EWEA”), Europe decommissioned more coal and nuclear capacity than it installed in 2009 with renewable energy technologies, all together accounting for 61% of new power-generating capacity in 2009. Europe’s extremely impressive advances in offshore wind have led to 17 offshore wind farms currently under construction, expected to provide over 3,500 MW; half of these projects are being constructed in UK waters. I recently published an article in the Electricity Journal looking at offshore wind domestically and abroad. This article provides a regulatory overview of offshore wind in Denmark, the United Kingdom and the United States. Please click here for more information.

The cover of today’s Wall Street Journal provided additional coverage on the impressive advancements of offshore wind in Europe. “The U.K.'s commitment is driven by stringent European Union targets. To meet them, Britain will have to raise the share of its electricity that comes from renewable sources to about 30% by 2020. It's just 7% now. The U.K. also adopted a "carbon budget" a year ago, committing to reduce emissions to at least 34% below 1990 levels by 2018-2022.” In short, Europe made the commitment. This article goes on to comprehensively depict European offshore wind progress highlighting the issues that plague this industry: regulatory and environmental hurdles, siting and cost.

Under President Obama’s leadership, more than two dozen nations came together in Copenhagen giving birth to the Copenhagen Accord. This unparalleled effort aims to reduce the emissions of both developed and developing nations. Furthermore, they are holding themselves accountable by registering their national commitments by the end of January 2010. The United States has committed to a target to reduce emissions in the range of 17 percent below 2005 levels by 2020, 42 percent below 2005 levels by 2030, and 83 percent below 2005 levels by 2050.

America anticipates Department of Interior Secretary Salazar's final decision on the Cape Wind Energy Project very soon, as he has made a public commitment to do so before the end of the month. A favorable decision for Cape Wind would mark the first federally approved offshore wind farm in the United States. NRDC has been involved in the nearly nine years of rigorous review of Cape Wind and believe that the benefits of the project outweigh its impacts, with the implementation of the appropriate mitigation and monitoring measures identified in the review process. Not only could Cape Wind have the capacity to generate up to 468 MW of clean electricity, it could help launch the United States as a leader in renewable energy.

To further emphasize the point, the United States has the potential to be a world leader on clean energy. Americans want and need clean energy jobs now. As we celebrate the 40th Anniversary of Earth Day, we should consider what the next 40 years will look like. We have an opportunity to move beyond business as usual. We have an opportunity to demonstrate our ability to adapt, innovate and compete with the rest of the world. Click here and scroll to the bottom of the page to view a video on domestic green jobs.

Highlights from AWEA’s new report include:

The U.S. wind energy industry installed over 10,000 MW of new wind power generating capacity in 2009, the largest year in U.S. history, and enough to power the equivalent of 2.4 million homes or generate as much electricity as three large nuclear power plants.

In industry rankings, GE Energy remained #1 in U.S. wind turbine sales; NextEra Energy Resources continued to lead in wind farm ownership; and Xcel Energy continued to lead utilities in wind power usage. At the same time, however, more companies are now active in each of these areas, showing that the wind energy market is diversifying as it expands.

There are 36 states that have utility-scale wind projects and 14 states are in the "Gigawatt Club" with more than 1,000 MW of installed wind capacity per state.

In state rankings, Iowa leads in terms of percentage of electricity from wind power, getting 14% of its power from the wind, and also leads in highest number of jobs in the manufacturing sector. Texas consolidated its lead in wind capacity and in largest wind farms installed.

The report's section on manufacturing shows that in spite of a slowdown in wind turbine manufacturing in 2009 compared to 2008, 10 new manufacturing facilities came online in the U.S. last year, 20 were announced, and nine facilities were expanded. The largest category was wind turbine sub-components, such as bearings, electrical components and hydraulic systems. In all, the U.S. wind energy industry opened, announced or expanded over 100 facilities in the past three years (2007- 2009), bringing the total of wind turbine component manufacturing facilities now operating in the U.S. to over 200.

All 50 states have jobs in the wind industry.

Approximately 85,000 people are employed in the wind industry today and hold jobs in areas as varied as turbine component manufacturing, construction and installation of wind turbines, wind turbine operations and maintenance, legal and marketing services, transportation and logistical services, and more.

To ensure a skilled workforce across the wind energy industry, 205 educational programs now offer a certificate, degree, or coursework related to wind energy. Of these 205 programs, the largest segments are university and college programs (45%) and community colleges or technical school programs (43%).

Despite the economic downturn, the demand for small wind systems for residential and small business use (rated capacity of 100 kW or less) grew 15% in 2009, adding 20 MW of generating capacity to the nation. Seven small wind turbine manufacturing facilities were opened, announced or expanded in 2009.

Offshore wind power is gaining momentum in the U.S. The report lists seven projects with significant progress in the planning, permitting, and testing process. Both the federal government and several states established significant milestones in 2009 to encourage offshore wind power development.

America’s wind power fleet of 35,000 MW will avoid an estimated 62 million tons of carbon dioxide annually, equivalent to taking 10.5 million cars off the road.

America’s wind power fleet will conserve approximately 20 billion gallons of water annually that would otherwise be lost to evaporation from steam of cooling in conventional power plants.

OCS Wind Energy Summit

2010-02-19T21:27:46Z

Today, Secretary of the Interior Ken Salazar joined Governors and representatives of the Atlantic Coast states to discuss a regional approach to offshore wind development on the US Outer Continental Shelf (OCS). A press call was held after their meeting which focused on coordinating efforts and the potential of creating an offshore wind energy industry in the US. Secretary Salazar reported that the overarching tone of the conversation was that the US does not want to be left behind the UK and other countries that have moved forward on offshore wind. He emphasized that this is an opportunity to create jobs and clean energy here in the US.

The big outcome of this effort will hopefully be the creation of an Atlantic Wind Consortium to coordinate offshore wind efforts; Salazar noted that in addition to the states that participated today, he anticipates DOE, DOD and FERC also being part of this consortium. Governors and Salazar discussed the importance of the federal government streamlining its process for moving this industry forward. He explained that they are currently evaluating how they can expedite offshore wind permitting processes to assure investors that these projects will move forward.

Offshore transmission concerns were also raised during their meeting. Salazar explained that there are currently efforts underway for groups of states to connect to a transmission backbone. Salazar hopes that within 30 days they can disclose a working document for how they intend on moving forward based on today’s discussions.

Governors and representatives praised President Obama for his leadership, and Secretary Salazar for his follow through, on prioritizing offshore wind and clean energy generation. They echoed the opportunity to create jobs and clean energy domestically and the importance of remaining coordinated in moving forward. Salazar praised the states for their leadership in offshore wind development and acknowledged that the issues raised during their meeting today can be worked through together and they now have a shared priority.

Click here for the Department of Interior’s Media Advisory and participants: http://www.doi.gov/news/mediaadvisories/2010_02_18_advisory.cfm

Secretary Salazar Says No to Continued Uncertainty and Reaffirms Cape Wind Deadline

2010-01-13T23:46:21Z

Today in Washington, D.C., Department of Interior Secretary Ken Salazar met with key Cape Wind stakeholders. Representatives from two of the Wampanoag tribes, the state of Massachusetts, the town of Barnstable, the Martha’s Vineyard Commission, and Clean Power Now were all in attendance. This meeting was a follow up to last week’s decision by the National Park Service that the Nantucket Sound is in fact eligible for listing on the National Register of Historic Places.

“If an agreement among the parties can’t be reached, I will be prepared to take the steps necessary to bring the permit process to conclusion,” Salazar reportedly said last week.

Today, Salazar emphasized his intention to reach a decision on Cape Wind by no later than March 1st. The continued emphasis on this deadline was met with encouragement by Salazar to have both sides work through their differences in the interim or they can expect him to make a final ruling at that time.

During the meeting, Salazar set forth a clearer timeline that will provide an opportunity for public comments on Section 106 while emphasizing the March 1st deadline where parties are expected to sign a Memorandum of Agreement. Then the Department of Interior will move forward with a final Record of Decision or the Secretary will formally terminate the consultation and commence a final 45 day review which would lead to a final Record of Decision in April. Advocates of this technology naturally want to see offshore wind projects move forward and these assurances in timeline are critical for an industry whose investors are watching closely to determine this technology's future in America.

There appear to be two overarching national priorities governing Salazar’s review and decision of the Cape Wind project. The first involves upholding this Administration’s focus on moving America towards a new clean energy frontier while properly siting renewable energy projects. The second priority is more unique to Salazar’s specific role as “chief historic preservation officer” of the country. This second priority is particularly intriguing as it underscores Salazar’s responsibility to properly tell America’s story while shaping and preserving our rich past. This is perhaps a heavier lift that speaks directly to the cultural sensitivities involved in embarking on this new clean energy frontier. With that said the clear take away from this meeting was that Salazar believes that continued uncertainty is bad for everyone and while he wants to make certain that everyone is heard, he is focused on bringing this process to an end.

While today’s meeting reaffirms the Administration’s commitment to putting a timeline on what has been nine years of continued uncertainty, it is still unknown how this process will conclude. It is uncertain as to how proposals for relocation of Cape Wind will be handled although Salazar stressed the notion that potential accommodations within the confines of the existing application can be explored to mitigate historical and cultural impacts. The significance of this meeting will likely not be fully realized for years to come. However, it is clear that many are waiting with bated breath to see how Secretary Salazar is going to manage historical and cultural relationships with advocates and industry while shaping the future of offshore renewables in America.

New Challenges for Cape Wind: National Park Service Weighs In

2010-01-04T22:43:35Z

Today, the National Park Service decided that the Nantucket Sound is in fact eligible for listing on the National Register of Historic Places. This determination will require the Interior Department to consider any related significant archeological, historic and cultural values when reviewing Cape Wind's permit. This long-awaited decision sparked immediate action by Secretary of the Interior Ken Salazar. Salazar has committed to meeting with involved parties next week to find "a common-sense agreement on actions that could be taken to minimize and mitigate Cape Wind's potential impacts on historic and cultural resources."

The National Park Service's Keeper of the National Register of Historic Places made this reviewed based on concerns raised by the Mashpee and Aquinnah Wampanoag tribes. These tribes argue that the designation of Nantucket Sound as a Historic Place is necessary since Cape Wind's 130 turbines will be visible on the horizon. These tribes hold that this visual will compromise their ancient rituals, which require among other things, an unblocked view of the sunrise.

This decision will undoubtedly continue to extend Cape Wind's timeline for bringing their project online and providing renewable energy through offshore wind. The core of this conflict is not new. On land, we have witnessed resistence to energy projects based on a host of challenges including NIMBYism, improper takings, historic and cultural considerations. Change enables new voices to be heard and innovative solutions to be applied. The merits of both sides will be need to be heavily weighed to determine the best way to balance our growing demand for clean energy with the attention to cultural sensitivties as we embark on new ways to generate renewable energy offshore.

NRDC has been following this issue closely. For additional blog coverage please view:

http://switchboard.nrdc.org/blogs/bcolander/us_offshore_wind_development_s.html

http://switchboard.nrdc.org/blogs/plehner/now_is_the_time_for_cape_wind.html

The Next Decade Of Offshore Wind

2009-12-18T19:17:33Z

Emerging Energy Research, EER released a study today on the next decade of progress for the global offshore wind industry. The global installed base is expected to grow to nearly 45GW in 2020. Among other things, this study exhibits the phases of offshore market development:

Phase 1: 1997-2007

Intitial pilots, ramp up to industrial scale wind farms offshore

Phase 2: 2008-2013

Steady deployment of 100MW + farms using 4 MW+ turbines

Phase 3: 2014-2020

Continued expansion to exponentially larger scale projects, greater than 400 MW

Of particular note is the progress in Asia and North America. Currently, these regions are looking aggressively to Europe for cost benchmarking and advanced technology of offshore renewables. It is expected that between 2010 and 2020, these two regions will contribute approximately 25% of the total new offshore wind capacity installed-globally.

The study highlights cost, indicating that cost and learning curves do remain steep with no template project. This has forced the industry to move beyond the prototype model in an attempt to fully capture greater economies of scale with increased project standardization of dimensions and cost.

Europe's leadership in offshore wind deployment can undoubtedly be attributed to progressive policies that have enabled them to create incentives and manageable permitting procedures. This has enabled firms to finance these projects even if their costs vary widely based on specific sites. "With over 30 GW in the pipeline at different development stages and over 3.2 GW under construction, the European offshore wind market is focused on addressing specific, economic, technical and construction risks associated with the final phase of several projects."

"Offshore is still very much a European industry led by the UK and followed by Germany, Sweden, the Netherlands, Belgium, and Denmark," says Sala de Vedruna. EER expects Asia to tap its offshore markets in 2014, led by China and Korea. In North America, test projects in the US (Deepwater Wind) and Canada (NaiKun) may come to fruition by 2012, with over 6 GW projected by 2020, according to EER.

Offshore Renewables: The Atlantic Renewable Energy Office Announcement

2009-12-16T21:14:11Z

On December 9th, Secretary Salazar announced that the Minerals Management Service (MMS) will establish a new regional office in 2010. This office will be dedicated to supporting the development of renewable energy development on the Outer Continental Shelf (OCS) off the Atlantic seaboard. This announcement, made while Salazar was touring the Middelgrunden wind farm near Copenhagen, demonstrates yet another concrete step towards the United States making offshore renewables a reality.

The primary duties of this regional office will be to evaluate permits for renewable energy activities in an “effective, efficient, and consistent manner while being responsive to the States, developers and other stakeholders.” In addition, this office will be responsible for the implementation and management of the offshore renewable energy program, leasing, environmental programs, task force formation, State consultations and post-lease permitting in Federal waters off the East Coast.

The world waits with bated breath to see how the United States will deploy offshore renewables. Perhaps more to the point, the world is particularly interested in how the US will navigate bureaucratic obstacles to offshore renewable energy projects in our current financial climate. The difficulty lies in striking the right balance between launching properly sited, mature technologies with the right mix of financial incentives to enable a new industry to be competitive all while being mindful of the environmental sustainability of a project. Fortunately, it can be done.

Recent developments, such as this, have been encouraging. Here are other encouraging noteworthy developments:

-Department of Interior’s creation of the first-ever framework for offshore renewable energy development

-Secretary Salazar’s announcement of the first-ever exploratory leases for offshore wind production on the OCS offshore in New Jersey and Delaware

-Governors from Virginia, Maryland and Delaware signed a Memorandum of Understanding to generate clean renewable energy

-Secretary Salazar’s attendance at the historic climate change talks in Copenhagen, Denmark

-President Obama’s Ocean Policy Task Force made landmark national ocean policy with the release of their Interim Report of the Interagency Ocean Policy in September and further released their Interim Coastal and Marine Spatial Planning Framework this week

When It Comes to Offshore Wind-Mayor Bloomberg Gets It!

2009-12-14T21:46:36Z

During his trip to Copenhagen, for the historic climate talks, Mayor Bloomberg had the opportunity to visit the Horns Rev 2 offshore wind farm, off the coast of Denmark. The New York Times shows New York City Mayor Michael Bloomberg peering out of a helicopter window at what could foreshadow the future of renewable energy in New York. I had the opportunity to view these same wind turbines and am pleased to hear Bloomberg describe them as “impressive” and going a step further by adding that “[i]t gives you a feeling for what it will be, I hope, off the Long Island shore.”

Bloomberg briefly acknowledged the history of difficulty in moving offshore wind proposals forward in New York. However, this has not stopped him from remaining steadfast in his pursuit to move his renewable energy agenda forward. In New York, Bloomberg is hoping to have a consortium of government agencies and utilities in both Long Island and New York develop what could be the world’s largest offshore wind power complex -- a 700 megawatt renewable energy project expected to cost roughly $3 billion.

Here are more Bloomberg reactions to his offshore wind farm visit in Copenhagen:

“I don’t understand what there is to complain about.”

“Would they rather be staring at a coal plant?”

“It’s a lot better than buying foreign oil.”

Sometimes, you really do have to see it to believe it…and when you do, you often wonder why you can’t have the same. I am glad to see that when it comes to offshore wind -- Mayor Bloomberg gets it!

LI - NYC Offshore Wind Collaborative to Pursue Ocean Floor/Wildlife Surveys

2009-12-11T13:46:26Z

This week, the Long Island – New York City Offshore Wind Collaborative announced that consultants will soon begin to conduct “pre-development activities”. These activities will include desktop studies of the ocean’s wind, wave and wildlife environment. This effort is designed to inform what could be the largest offshore wind farm proposal developed in the country.

The Collaborative, a group that is represented by energy utilities and a host of New York State and New York City agencies, has received responses from approximately 30 wind developers and firms from its Request for Information (RFI). This RFI, issued on July 1st 2009, signaled the tremendous interest in developing a wind farm in the Atlantic Ocean, 13 nautical miles off the shore of the Rockaway Peninsula.

In the spring of 2010, the Collaborative expects to issue a Request for Proposals (RFP). Current projections anticipate that the wind project could be designed for 350 megawatts of generation with the ability to expand up to 700 megawatts. In the interim, engineers and scientists have been enlisted by the Collaborative to conduct desktop studies of the proposed project site. These studies will guide ocean floor surveying, wildlife migration patterns, and help further evaluate the overall feasibility of the project.

This effort represents a critical step in the proper development of offshore renewables. It is indicative of an attempt to get the first generation of offshore wind “right “by ensuring that these projects are built sustainably with environmental implications thoroughly explored prior to deployment. It is critical that appropriate measures are implemented to ensure that offshore renewables are developed without jeopardizing the health of our already-stressed, valuable ocean systems.

The collaborative consists of:

Long Island Power Authority (LIPA)
Con Edison
New York Power Authority (NYPA)
The City of New York/New York City Economic Development Corporation
New York State Energy Research and Development Authority (NYSERDA)
Metropolitan Transportation Authority (MTA)
The Port Authority of New York & New Jersey

The New York State Department of State, Department of Environmental Conservation and Office of General Services are also participating by providing the Collaborative with input and guidance.

The concept for the offshore wind project emanated from Governor David A. Paterson’s Renewable Energy Task Force and is consistent with the Governor’s “45 by 15” program, which establishes the goal for New York State to meet 45 percent of its electricity needs through improved energy efficiency and renewable sources by the year 2015. The offshore wind project is also aligned with City of New York Mayor Michael Bloomberg’s PlaNYC goal to reduce greenhouse gas emissions in New York City 30 percent by 2030. The project would significantly boost the installed capacity of renewable energy in New York City and provide clean energy to thousands of City households, businesses and public institutions.

A transmission interconnection study by the Collaborative concluded that an interconnection for up to 700 MW of wind power, located at a proposed location in the Atlantic Ocean, would be feasible with upgrades to the current transmission systems. An application to interconnect the offshore wind project has been filed with the New York Independent System Operator (NYISO) for up to 700 MW by 2015.

Members of the Collaborative reiterated a strong desire to help implement the plan and some expressed an interest to purchase clean renewable energy from the project. NYPA and NYSERDA indicated they would be able to lend technical support by way of consultants working with each agency on wind power projects. NYSERDA also indicated the possibility of funding being made available from the Regional Greenhouse Gas Initiative aimed at advancing clean, renewable energy projects that will reduce greenhouse gas emissions in the state.

The New York State Department of State and the New York State Department of Environmental Conservation will offer general information on the planning and regulatory aspects of the project.

Offshore Wind Update in the U.S. - Will Rhode Island Be the First?

2009-12-11T12:10:27Z

Yesterday, National Grid signed a development agreement with Deepwater Wind to build what is now anticipated to be the first U.S. offshore wind farm. Under a 20 year power purchase agreement, Deepwater Wind will sell electricity to National Grid from approximately 8 turbines producing 28 megawatts in Rhode Island. This project has the potential of eventually supplying 15% of Rhode Island’s electricity.

Rhode Island has been very clear in their intent to have 25% of its electricity from renewable energy through long-term contracts. In June of 2009, Governor Carcieri signed a law requiring the largest utility in Rhode Island, National Grid, to make long-term contracts to buy 90 megawatts of renewable power. During the signing of this legislation, the Governor noted that this step would assist Deepwater Wind in securing $1.5 billion in funding for its two offshore wind farms.

Of course, other renewable sources will continue to be explored in Rhode Island, in an ongoing effort to provide even more cost effective renewable power. However, offshore wind may have an advantage in Rhode Island of serving as the primary source of renewable energy that they anticipate generating given how suitable their coastline is for offshore renewables and how limited land is for land-based wind farms. What works heavily in Rhode Island’s favor is a mix of geography, construction logistics and limited resistance to the project.

As a matter of process, this project must still be approved by the Rhode Island Public Utilities Commission. By law, the agreement between National Grid and Deepwater will be evaluated to determine whether or not the contract is “commercially reasonable”. Cape Wind is the other contender to become the first offshore wind farm in U.S.

The Deepwater wind farm will be based off the coast of Block Island and is expected to cost 24.4 cents per kilowatt-hour upon operation in 2013; the contract also calls for annual price increases of 3.5%. Currently, the retail price of electricity for a home in Rhode Island is approximately 13 cents per kilowatt-hour. The Governor’s office anticipates that when this project comes online, customers can anticipate an average increase to their monthly electric bill of $1.35.

Deepwater is aiming to have this project up and running by 2012, which based on current projections, should make them the first offshore wind farm in the country. This project would be followed by a larger offshore wind farm, one with 106 turbines and 15 miles off the mainland. This is indeed a tremendous step forward for renewable energy.

DEAL TIMELINE

June 26: Governor Carcieri signs law requiring National Grid to purchase 25% of its electricity from renewable energy.

Aug. 31: Deepwater Wind is the only developer to submit a proposal by National Grid’s deadline.

Oct. 15: National Grid rejects Deepwater’s first offer, estimated at 30.7 cents per kilowatt hour.

Nov. 18: National Grid rejects a second offer from Deepwater of 25.3 cents per kilowatt hour.

Dec. 9: An agreement is reached at 24.4 cents per kilowatt hour.

Inching Toward – But Not Reaching – Stronger Energy Efficiency in Florida

2009-12-01T23:00:27Z

While many states around the country are taking giant steps forward toward greater energy efficiency, Florida is unfortunately just inching along. Today, the Florida Public Service Commission (PSC) set energy efficiency goals of approximately 3.5% over ten years for the State's largest utilities. This is about half of the level advocated by NRDC and Southern Alliance for Clean Energy, as well as the independent energy efficiency expert hired by the staff of the public service commission. It's also far behind the fourteen leading states, which have approved goals between 15% and over 20% over ten years. While the goals set by the PSC are a modest improvement over what the Florida utilities had requested, they leave a tremendous amount of customer savings, economic stimulus and greenhouse gas reductions on the table.

To highlight a positive outcome from this decision, the PSC based its goals on the right cost-effectiveness test - the total resource cost test (TRC). This test ensures that the total cost of energy efficiency measures are less than the total savings. This is a major improvement over the test that the PSC has been relying on for years, but finally discarded today- the rate impact measure (RIM) test. Perversely, the RIM test considers customer savings a bad thing - calling them "lost revenue to utilities" and preventing efficiency measures that will result in lower bills and less pollution.

However, the PSC continued to use a second test that eliminates the most cost-effective energy efficiency measures. This test, called the two-year payback screen, simply defies logic and is a terrible energy efficiency policy for Florida. Why would you eliminate the most cost-effective measures from your goals? The evidence shows that customers still face barriers to adopting these measures and requiring utilities to help their customers overcome them - rather than more expensive measures - is the most cost-effective way to improve energy efficiency.

Fortunately, it was clear during today's hearing that several of the Commissioners understand that this test makes no sense (one called it "arbitrary"). But when it came to voting on goals, the Commissioners only restored the top ten measures that had been eliminated. While this was a slight improvement, it left the goals at less than half of what they should be and still misses almost all of the best opportunities for achieving energy efficiency. We are hopeful, however, that we can build on the skepticism exhibited by several of the Florida PSC's Commissioners and get Florida to join the leading states in making the leap toward greater energy efficiency.

New Website Lets New Yorkers Switch to Clean Energy in Three Clicks

2009-11-30T14:58:04Z

If they knew they had a choice, I'd bet a lot of consumers would quickly support renewable energy. But most consumers just don't know they can start America on the path toward a clean energy economy with their personal energy choices. Now - for New Yorkers who want to use green power and feel like they're making a difference - it just got easier.

A new website launched today simplifies the process of supporting renewable energy in New York! The site - www.greenpowernyc.com - is a joint effort by the Natural Resources Defense Council and the Alliance for Clean Energy New York.

We created this website to provide New Yorkers with a tool to lead the way in repowering America, starting with their own homes and small businesses. It was designed to be an easy streamlined process for supporting green power in only three clicks!!!

Simply go to www.greenpowernyc.com and it'll walk you these through 3 easy steps:

Step 1: Choose the type of renewable energy you want
Step 2: Choose a provider
Step 3: Fill out a short form to sign up

This allows residents and small business owners to select their desired type of clean power and energy provider, and switch to supporting clean energy using renewable energy certificates (RECs). This exciting tool will help New Yorkers cut global warming pollution, increase economic development in the clean energy sector, and avoid the construction of new fossil fuel power plants in the area.

What is a REC? This is how it works: Once electricity is put on the grid, it's impossible to route it to any one destination, like your home. Fortunately, customers are able to purchase RECs that have been sold by the renewable energy generator as environmental commodities. Each certificate represents the environmental benefits of a megawatt-hour of renewable electricity. Your purchase will enable you to make a claim to that renewable energy that no one else can make. Once you've purchased it, that certificate is "retired" so it can't ever be used again.

NRDC is excited about this project that was made possible by a generous donation from the Wolfensohn Family Foundation. Currently, ConEdison Solutions, Community Energy and Sterling Planet are the green power providers participating in this exciting venture. We welcome other green power providers to join this partnership, thereby providing even more clean energy options to NYC residents.

And I encourage my fellow New Yorkers to make the switch!

For more information on RECs and green power purchasing, please visit the following:

http://www.green-e.org/learn_re_claims.shtml

http://www.epa.gov/greenpower/buygp/types.htm

Press release:

http://www.nrdc.org/media/2009/091130.asp

U.S. Offshore Wind Development Stymied Once Again

2009-10-21T22:38:42Z

"Massachusetts blown away in wind power development race" says the Boston Herald, "Stop delaying the process of approving Cape Wind" shouts the Cape Cod Times, "National Grid rejects power offer from Deepwater Wind" reports the Providence Business News. What is all the fuss about? It is quite simple actually, without precedent, brace yourself for chaos.

This week the Boston Herald highlighted Massachusetts' thorny reception for this renewable energy alternative. The article cited the state's reputation for being a hard place to build wind as a result of their extensive local control and permitting processes. Despite the fact that other countries, who have advanced leaps and bounds in the world of offshore wind, have experienced a "snowballing effect" where wind has become vastly more acceptable once citizens have had the opportunity to get comfortable with several projects and shaken the all too familiar and often crippling impact of fearing the unknown.

Earlier this week the Cape Cod Times focused on the most recent roadblock in Cape Wind's enduring eight year challenge of bringing offshore wind to the United States. Timely approval of this project runs parallel to the Administration's aggressive objectives for addressing global warming and energy security through the development of renewable energy. As they continue to await direction from MMS, despite their demonstration that its environmental benefits will likely outweigh its impacts, Cape Wind has failed to move forward. In order for this project to move forward, the pending National Historic Preservation Act (NHPA) Section 106 process needs to be entered with a favorable Record of Decision.

At the heart of Cape Wind's most recent setback for approval are claims from two Indian tribes, the Wampanoag and Horseshoe Shoal. These tribes are alleging that Section 106 requires that the 440 ft tall turbines must be abandoned to comply with NHPA in order to protect artifacts and areas where their cultural ceremonies are held. In a letter to MMS this summer, the Wampanoag Tribe has said that the agency is "failing miserably" to involve these tribes in the Section 106 process. All the same, Cape Wind notes that the tribe has received $50,000 from the Massachusetts Technology Collaborative to conduct a small wind farm construction feasibility study. Furthermore, many find the timing of these new allegations strategically inconvenient as these cultural concerns were not previously raised, despite Cape Wind's extensive and notorious pursuit of approval. This process should be closely watched as it will set the precedent for future renewable energy sites if the designation of sacred lands as tribal cultural properties is upheld.

Finally, the Providence Business Times covered National Grid's rejection of Deepwater Wind LLC's initial proposal to supply electricity from a wind farm planned off the coast of Block Island. While there seems to be encouragement from the Governor of Rhode Island and the Rhode Island Economic Development Corporation to continue these talks, it was very apparent that National Grid did not believe that Deepwater's proposal was "commercially reasonable" at this time. This is particularly disappointing to both Deepwater and Rhode Island as Deepwater's project could serve as a mechanism to make Rhode Island essentially a Northeast offshore wind industry hub; naturally this translates into domestic jobs and enhanced domestic energy security.

As chaotic as this week has been in the world of domestic offshore wind, there is no negating the promise of this technology. Other countries continue to forge ahead while we continue to hope for federal leadership and support for viable renewable alternatives to dirty fuels at scale. In the interim, today's frustrations will hopefully materialize and become tomorrow's examples of offshore wind in the United States.

Florida Utilities Drag State Efficiency Ranking Down

2009-10-21T15:38:33Z

This post is co-authored by Brandi Colander, NRDC, and John D. Wilson, SACE.

Florida is the dim bulb in the otherwise efficiency-dark Southeast, and the 2009 Energy Efficiency Scorecard from ACEEE shows how badly its electric utilities are dragging Florida's ranking down. Slipping from 19th to 23rd in the country in a much-improved study, the impact of Governor Charlie Crist's leadership on energy policy hasn't shown up in a comparison with other states.

This report is extremely timely because it shows the extraordinary customer savings that Florida could achieve if the Florida Public Service Commission approves strong energy efficiency goals on October 27th. Florida's utilities have put forward a deeply-flawed status quo proposal for the next ten years of energy efficiency. In the ACEEE study, Florida's utilities received only 4 out of a possible 20 points for their efficiency programs, ranking Florida 30th in the country for "Efficiency Programs and Policies."

Furthermore, most of the states with lower rankings than Florida are not actively engaged in scaling up energy efficiency. Therefore, of those states with any significant efficiency programs, Florida ranks near the bottom. This is in direct contrast to FPL's claim that it is the "the nation's leading utility in customer energy efficiency programs."

Per customer, Florida's utilities are achieving approximately one-tenth of the amount of energy efficiency as leading states. And we're not the only ones who are noticing: the Florida Chamber of Commerce recently commented on several areas where Florida lags in competitiveness, including Florida's average energy consumption. And the state's economic development authority, Enterprise Florida, has laid out "Sustainable Energy" as part of a "crucial" agenda for the state. Growing Florida's "energy efficiency industry" is not just a matter of saving money or using energy more wisely, it is about building a sustainable need for a skilled local workforce.

Increasing energy efficiency by a factor of ten would mean a major change in the way Florida utilities do business.

Floridians deserve this opportunity.