1 | Program Name or Ancillary Texteere.energy.gov Offshore Wind Energy Overview Patrick Gilman Environmental & Siting Specialist Wind and Water Power Program February 16, 2011

2 | Energy Efficiency & Renewable Energyeere.energy.gov Agenda 1.Overview of offshore wind technology 2.National Offshore Wind Strategy 3.DOE offshore wind research plan – Removing Market Barriers solicitation – Research plan – Interagency collaboration

3 | Energy Efficiency & Renewable Energyeere.energy.gov Offshore Wind: Huge Potential Great Lakes: 734 GW Pacific: 930 GW Atlantic: 1256 GW Gulf Coast: 594 GW Hawaii: 637 GW Total gross resource potential does not consider exclusion zones or siting concerns Proposed project Europe: 3 GW offshore wind installed, 3 GW under construction, 20 GW permitted China: 135 MW installed, 2 GW authorized US: 2.4 GW proposed

4 | Energy Efficiency & Renewable Energyeere.energy.gov EnergyEnvironmentEconomy Large renewable resource close to load (1070 GW in shallow waters; 4150 GW total) Reduced GHG emissions (2.7 M tons CO 2 emissions avoided / GW / year) Jobs manufacturing, installing, operating, and maintaining systems (54 GW of offshore = 43,000 permanent jobs) Availability matches peak load (28 coastal states consume 78% of electricity) Reduced water consumption (81 billion gallons saved annually) Economic recovery and industrial development (1 GW offshore = $4.2B investment) Energy diversity & security Reduced need for new land-based transmission Potential for cost- competitive electricity in high-price markets Offshore Wind Benefits

5 | Energy Efficiency & Renewable Energyeere.energy.gov Environmental Impacts of Offshore Wind Wide range of potential impacts, little U.S. data: – Benthic communities – Bird and bat mortality – Construction and operation noise – Migratory displacement – EMF effects – Human: cultural, socioeconomic Substantial European experience: 350+ studies, no showstoppers identified From the Final Report of Danish Monitoring Program, 2006:“…offshore wind power is indeed possible to engineer in an environmentally sustainable manner that does not lead to significant damage to nature.…the prospects for future expansion of offshore wind farms look bright.”

6 | Energy Efficiency & Renewable Energyeere.energy.gov Offshore Wind Turbine Components Blades Tower Nacelle Transition Piece Rotor Hub Gearbox Generator Foundation Evolution of Foundation Designs

7 | Energy Efficiency & Renewable Energyeere.energy.gov Evolution of Commercial Wind Technology

8 | Energy Efficiency & Renewable Energyeere.energy.gov Announced by Secretary of Energy Chu and Secretary of the Interior Salazar on 2/7/2011 Developed over 7+ months with input from federal partners, industry, stakeholders, and public Demonstrates strong commitment by federal government to developing offshore wind energy resources in a responsible manner Leverages capabilities, expertise, and funding of individual agencies to increase federal government’s ability to accelerate responsible offshore wind deployment National Offshore Wind Strategy

9 | Energy Efficiency & Renewable Energyeere.energy.gov Key Points of National Strategy 1.Offshore wind can create substantial benefits for the nation: – Reduced GHG emissions – Diversified energy supply – Economic revitalization 2.The challenges facing offshore wind deployment are daunting: – High capital & financing costs – Lack of specialized infrastructure – Lack of site data and experience with permitting processes 3.To realize these benefits in spite of the challenges, DOE will: – Reduce the levelized cost of energy from 26.9 ¢/kWh to 7 ¢/kWh by 2030 – Help reduce market barriers: environmental impacts, infrastructure, transmission – Partner in the installation of the first demonstration-scale projects 4.Understanding and mitigating environmental impacts of offshore wind are critical to this strategy

10 | Energy Efficiency & Renewable Energyeere.energy.gov DOE Offshore Wind Funding Opportunities: $50.5 million, 5 years Technology Development FOA (up to $25M, 5 years) – Long-term technology R&D to reduce cost of offshore wind energy Market Barriers Removal FOA (up to $18M, 3 years) – Research to close data gaps needed for project permitting; expand knowledge base on offshore wind environmental effects; develop strategies & planning for long- term industry cost-competitiveness – Topics: 1.Offshore wind market & economic analysis 2.Environmental & socioeconomic risk reduction: – Mid-Atlantic Baseline Study, Environmental Monitoring Methods and Technologies 3.Manufacturing & supply chain development 4.Transmission planning & interconnect strategies 5.Ports, vessels & operations 6.Wind energy resource characterization & design conditions 7.Marine navigation & communications equipment impacts Next-Generation On/Offshore Drivetrain FOA (up to $7.5M, 3 years) – Develop core technologies for next-generation turbines, ensuring competitiveness of domestic OEMs More to come – Stay tuned

11 | Energy Efficiency & Renewable Energyeere.energy.gov 1.Baseline environmental data collection and analysis 2.Developing the necessary technologies and methods to assess and monitor environmental impacts 3.Before-After-Control-Impact type studies on actual wind farms from site assessment through operations to identify specific impacts 4.Development of avoidance and mitigation measures 5.Studies on cumulative impacts of large-scale deployment Environmental Research Plan

12 | Energy Efficiency & Renewable Energyeere.energy.gov DOE can’t go it alone: collaboration with federal & state agencies, NGOs and other stakeholders is essential We’re ready to partner: DOE is eager to work with other agencies to meet these challenges A Call to Action

13 | Energy Efficiency & Renewable Energyeere.energy.gov Thank You Patrick Gilman Environmental & Siting Specialist DOE Wind and Water Power Program