ML103620037

2010/09/02-Creating an Offshore Wind Industry in the United States: a Strategic Work Plan for the United States Department of Energy, Fiscal Years 2011-2015

ML103620037
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Issue date:	09/02/2010
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PREDECISIONAL DRAFT Creating an Offshore Wind Industry in the United States:

A Strategic Work Plan for the United States Department of Energy, Fiscal Years 2011 - 2015 U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Wind & Water Power Program September 2, 2010 Version p2.0

PREDECISIONAL DRAFT Alphabetical List of Contributing Authors:

Jacques Beaudry-Losique, US Department of Energy (DOE)

Jocelyn Brown-Saracino, Sea Grant Fellow Patrick Gilman, DOE Michael Hahn, DOE Chris Hart, PhD, DOE Jesse Johnson, Sentech Megan McCluer, DOE Laura Morton, DOE Brian Naughton, PhD, New West Gary Norton, Sentech Bonnie Ram, Energetics Wendy Wallace, Energetics OSWInD Strategic Work Plan -i-

PREDECISIONAL DRAFT Executive Summary Creating an Offshore Wind Industry in the United States: A Strategic Work Plan for the United States Department of Energy was prepared by the U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE), Wind and Water Power Program to outline the actions that it will pursue to support the development of a world-class offshore wind industry in the United States. The Strategic Work Plan is an action document that amplifies and draws conclusions from a companion report, Large-Scale Offshore Wind Energy for the United States: Assessment of Opportunities and Barriers (NREL 2010).

In FY 2011, DOE will initiate a formal activity, titled the Offshore Wind Innovation and Demonstration (OSWInD) Initiative, to promote and accelerate responsible commercial offshore wind development in the U.S., guided by this Strategic Work Plan.

Key Points

• Offshore wind energy can help the nation reduce its greenhouse gas emissions, diversify its energy supply, provide cost-competitive electricity to key coastal regions, and stimulate economic revitalization of key sectors of the economy.

• Key barriers to the development and deployment of offshore wind technology include the relatively high cost of energy, technical challenges surrounding installation and grid interconnection, and the untested permitting requirements for siting wind projects in federal and state waters.

• The Strategic Work Plan lays out the details for the OSWInD Initiative, which will work to lead the national effort to overcome these barriers and achieve the scenario of 54 GW at 7-9 cents per kilowatt-hour by 2030, with an interim target of 10 GW at 13 cents per kilowatt-hour by 2020.

• In order to accomplish this goal, the OSWInD Initiative must achieve two critical objectives:

reduce the cost of offshore wind energy and reduce the timeline for deploying offshore wind energy.

• Immediately upon its inception, the OSWInD Initiative will initiate or expand a suite of seven major activities, administered through three focus areas, targeted at these critical objectives.

• The three focus areas are Technology Development, Market Barrier Removal, and Advanced Technology Demonstration Projects.

• The seven major activities are innovative turbines; innovative balance of system; computational tools and test data; resource planning; siting and permitting; complementary infrastructure; and advanced technology demonstration projects.

• These seven activities will facilitate gigawatt-scale offshore wind deployment and will augment the nearly $100M allocated to offshore wind research and test facilities through the American Reinvestment and Recovery Act of 2009 (ARRA).

OSWInD Strategic Work Plan - ii -

PREDECISIONAL DRAFT Table of Contents Executive Summary....................................................................................................................................... ii Table of Contents ......................................................................................................................................... iii List of Figures ............................................................................................................................................... iv List of Tables ................................................................................................................................................. v

1. Introduction ............................................................................................................................................. 1

2. Rationale for a National Offshore Wind Program .................................................................................... 2 2.1 Resource Size ..................................................................................................................................... 3 2.2 Benefits to Offshore Wind Deployment ............................................................................................ 4

3. Key Barriers to Offshore Wind Deployment ............................................................................................ 6 3.1 High Capital Costs and Cost of Energy ............................................................................................... 6 3.2 Technical and Infrastructure Challenges............................................................................................ 7 3.3 Permitting Uncertainty ...................................................................................................................... 8

4. DOE Offshore Wind Program ................................................................................................................... 8 4.1 OSWInD Strategy................................................................................................................................ 9 Technology Development ..................................................................................................................... 9 Market Barrier Removal...................................................................................................................... 10 Advanced Technology Demonstration Projects .................................................................................. 15 Impact Analysis ................................................................................................................................... 15 Current Offshore Wind Activities ........................................................................................................ 16 4.2 OSWInD Implementation .................................................................................................................. 17 Focus Area 1: Technology Development ............................................................................................ 17 Focus Area 2: Market Barrier Removal ............................................................................................... 26 Focus Area 3: Advanced Technology Demonstration Projects ........................................................... 41 OSWInD Strategic Work Plan - iii -

PREDECISIONAL DRAFT List of Figures Figure 1. The OSWInD strategy drives toward scenarios through progress on critical objectives .............. 1 Figure 2. The OSWInD Initiative broken down into Focus areas and Activities ........................................... 2 Figure 3. EERE Analysis of Possible Future Electricity Supply Mix (DOE) ..................................................... 3 Figure 4. U.S. offshore wind speed estimates at 90-m height ...................................................................... 4 Figure 5. Coastal versus inland state retail electric rates (DOE 2008). ......................................................... 5 Figure 6. Lifecycle Cost Breakdown - Offshore Wind (NREL) ....................................................................... 7 Figure 7. Focus areas, Activities, and Research areas of the OSWInD Initiative......................................... 11 Figure 8. Major phases of the current OSWInD deployment timeline. ...................................................... 13 Figure 9. Details and Research Areas for Activity 1.1 ................................................................................. 17 Figure 10. Details and Research Areas for Activity 1.2 ............................................................................... 19 Figure 11. Details and Research Areas for Activity 1.3 ............................................................................... 20 Figure 12. Details and Research Areas for Activity 2.1 ............................................................................... 26 Figure 13. Details and Research Areas for Activity 2.2 ............................................................................... 30 Figure 14. Details and Research Areas for Activity 2.3 ............................................................................... 32 Figure 15. Understanding External Conditions To Define the Design Parameters (DOE).......................... 33 Figure 16. Research Area and Detail Timeline in Quarters and Years ........................................................ 40 OSWInD Strategic Work Plan - iv -

PREDECISIONAL DRAFT List of Tables Table 1. Activity 1.1: Methods and Verification ......................................................................................... 22 Table 2. Activity 1.1 (contd): Methods and Verification............................................................................ 23 Table 3. Activity 1.2: Innovative Turbines ................................................................................................. 24 Table 4. Activity 1.3: Innovative Balance of System .................................................................................. 25 Table 5: Details of Activity 2.1..................................................................................................................... 35 Table 6: Details of Activity 2.1 (contd) ....................................................................................................... 36 Table 7: Details of Activity 2.2..................................................................................................................... 37 Table 8: Details of Activity 2.2 (contd) ....................................................................................................... 38 Table 9: Details of Activity 2.3..................................................................................................................... 39 OSWInD Strategic Work Plan -v-

PREDECISIONAL DRAFT

1. Introduction Offshore wind energy can help the nation reduce its greenhouse gas emissions, diversify its energy supply, provide cost-competitive electricity to key coastal regions, and stimulate economic revitalization of key sectors of the economy. However, if the nation is to realize these benefits, key barriers to the development and deployment of offshore wind technology must be overcome, including the relatively high cost of energy, technical challenges surrounding installation and grid interconnection, and the untested permitting processes governing deployment in both federal and state waters.

In FY 2011, the United States Department of Energy (DOE) will initiate a formal Offshore Wind Innovation and Demonstration (OSWInD) Initiative to promote and accelerate responsible commercial offshore wind development in the U.S. Creating an Offshore Wind Industry in the United States: A Strategic Work Plan for the United States Department of Energy is an action document that will guide this new Initiative as it supports the development of a world-class offshore wind industry in the United States able to achieve 54 gigawatts of offshore wind deployment at a cost of 7-9 cents per kilowatt-hour by the year 2030, with an interim target of 10 gigawatts at 13 cents per kilowatt-hour by 2020.

To realize these scenarios, the OSWInD Initiative must achieve two critical objectives: reduce the cost of offshore wind energy and reduce the timeline for deploying offshore wind energy. As Figure 1 illustrates, the OSWInD Initiative has developed a strategy that drives towards these scenarios by making measurable gains against each of the critical objectives.

Scenarios 54 GW at 7-9 ¢/kWh by 2030 (10 GW at 13 ¢/kWh by 2020)

Critical Reduce Reduce COE deployment Objectives timeline Program OSWInD Strategy Figure 2. The OSWInD strategy drives toward scenarios through progress on critical objectives In FY2011, the OSWInD Initiative will expand or initiate a suite of seven major activities, administered through three focus areas, targeted at these critical objectives (see Figure 3). The three focus areas are Technology Development, Market Barrier Removal, and Advanced Technology Demonstration Projects. The seven major activities are Innovative Turbines; Innovative Balance of System; Computational Tools and Test OSWInD Strategic Work Plan PREDECISIONAL DRAFT Data; Resource Planning; Siting and Permitting; Complementary Infrastructure; and Advanced Technology Demonstration Projects. Taken together, this effort will facilitate gigawatt-scale offshore wind deployment and will augment the nearly $100M allocated to offshore wind research and test facilities through the American Reinvestment and Recovery Act of 2009 (ARRA).

OSWInD Program Technology Advanced Technology Development Market Barrier Removal Demonstration Projects Focus Computational Tools Siting and Permitting Projects (1-?)

and Test Data Complementary Innovative Turbines Infrastructure Activity Innovative Balance of Resource Planning System Figure 4. The OSWInD Initiative broken down into Focus areas and Activities Section 2 of this document discusses the rationale for a national offshore wind initiative. Section 3 lays out the key barriers to the creation of a world-class U.S. offshore wind industry. This discussion summarizes both technical and market barriers and lays out the assumptions and conclusions that influenced DOEs decision-making regarding this Strategic Work Plan. Section 4 introduces the OSWInD Initiative in more detail and lays out its structure.

2. Rationale for a National Offshore Wind Program Increasing the use of renewable energy for electricity generation is crucial to mitigating the risks of climate change and shifting the nation to a long-term low-carbon economy. As stated in the North American Leaders Declaration of Climate Change and Clean Energy, the Obama Administration has set goals to reduce the nations carbon dioxide (CO2) emissions by 50% by 2030 and 80% by 2050 (White House 2009).

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Because offshore wind power generates electricity without emitting CO2, gigawatt-scale offshore wind deployment could contribute significantly to a national climate change mitigation strategy.

DOE has conducted a portfolio benefits analysis to develop a high-level strategy for achieving the Administrations ambitious goals for transforming the nations energy supply. EERE calculations of the potential future energy generation mixture in the United States have found that wind power could contribute both the fastest deployment and highest overall generation contribution of the renewable energy technologies (see Figure 5 below). An earlier scenario analyzed in the EERE report 20% Wind Energy by 2030 found that the United States could generate 20% of its electricity from wind energy by 2030, with offshore wind providing 54 GW of capacity (DOE 2008). These scenarios clearly show the potential for wind energy, and offshore wind in particular, to address the daunting challenge of reducing CO2 emissions in a rapid and cost-effective manner.

Figure 6. EERE Analysis of Possible Future Electricity Supply Mix (DOE) 2.1 Resource Size The energy-generating potential of offshore wind is immense due to the lengthy U.S. coastline and the quality of the resource found there (offshore winds blow stronger and more uniformly than on land, resulting in greater potential generation). Offshore wind resource data for the Great Lakes, U.S. coastal waters, and Outer Continental Shelf up to 50 nautical miles from shore indicate that for annual average wind speeds above 8.0 m/s, the total gross resource of the United States is 2,957 GW or approximately three times the generating capacity of the current U.S. electric grid. Of this capacity, 457 GW is in water shallower than 30 m, 549 GW in water between 30 m and 60 m deep, and 1,951 GW in water deeper than 60 m (see Figure 7). The scale of this theoretical capacity implies that under reasonable economic scenarios, offshore wind can contribute to the nations energy mix to significant levels.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Figure 8. U.S. offshore wind speed estimates at 90-m height The vast majority of current offshore wind projects are in the European Union (EU), where utility-scale planning for offshore wind has at least a 10-year history. Shallow water technology is proven in Europe, with 39 projects constructed and more than 2,000 megawatts (MW) of capacity installed, although this market is heavily subsidized. The EU and the European Wind Energy Association (EWEA) have established aggressive targets to install 40 GW of offshore wind by 2020 and 150 GW by 2030.

2.2 Benefits to Offshore Wind Deployment Each average GW of wind power capacity can generate 3.2 million megawatt-hours of electricity annually, avoids 1.8 million metric tons of carbon emissions and saves 1.2 million tons of coal or 20.9 billion cubic feet of natural gas, and 1.3 billion gallons of water.

Regionally high electricity costs in coastal regions, more energetic wind regimes offshore, and close proximity of offshore wind resources to major electricity demand centers could allow offshore wind to compete relatively quickly with fossil fuel-based electricity generation in many coastal areas. The 28 coastal and Great Lakes states in the Continental U.S. use 78% of the nations electricity (20% Report), and face higher retail electricity rates than their inland neighbors (Figure 9). Mid-Atlantic and Northeastern coastal states in particular face a dual problem in their high electricity costs and dependence on a high-carbon, price-volatile supply of fossil fuels for generation. In states lacking substantial onshore renewable resources, offshore wind deployment will be critical in meeting their renewable energy standards or goals.

In states with high electricity rates, offshore wind energy may quickly become cost-competitive. Finally, the proximity of offshore wind resources to major load centers minimizes the need for new transmission.

Deployment of wind energy along U.S. coasts would also trigger direct and indirect economic benefits.

According to NREL analysis, offshore wind would create approximately 20.7 direct jobs per annual OSWInD Strategic Work Plan PREDECISIONAL DRAFT Atlantic coastal states weighted average retail rates (13.1 cents/kWh) 2030 Offshore wind COE target (7 cents/kWh)

Figure 10. Coastal versus inland state retail electric rates (DOE 2008).

• The 2007 national average wholesale electricity price, that is an average of spot market prices for day-ahead electricity delivery in the NERC regions with wholesale power markets, is 5.72 cents per kWh. However, prices spiked in 2008 and vary by region (New England spot prices averaged 9.00 cents per kWh in 2008). (EIA 2010)

OSWInD Strategic Work Plan PREDECISIONAL DRAFT megawatt in the United States. If 54 GW were installed in the U.S., more than 43,000 permanent operations and maintenance (O&M) jobs would be created, while more than 1.1 million job-years would be required to manufacture and install the turbines (NREL White Paper). Many of these jobs would be located in economically depressed ports and shipyards, which could be revitalized as fabrication and staging areas for the manufacture, installation, and maintenance of offshore wind turbines.

3. Key Barriers to Offshore Wind Deployment The major barriers to deployment of offshore wind power in U.S. waters include the high costs of offshore wind facilities; the technical challenges and lack of current infrastructure to support the fabrication, installation, interconnection, and maintenance of these systems; and the untested permitting requirements for siting wind projects in federal and state waters.

3.1 High Capital Costs and Cost of Energy Offshore wind installations have higher capital costs than land-based installations per unit of generating capacity, largely because of turbine upgrades required for operation at sea and increased costs related to turbine foundations, balance-of-plant infrastructure, interconnection, and installation. In addition, one-time costs are incurred with the development of the infrastructure to support the offshore industry, such as vessels for installation, ports and harbor upgrades, manufacturing facilities, and workforce training programs. NREL reports estimate a current baseline installed capital costs for offshore wind of $4,250/kW based on energy market surveys (NREL White Paper). Several important offshore technology issues require research and development in order to achieve competitive market pricing in the long term; these issues include reducing installed capital costs, improving reliability, and increasing energy capture. In the longer term, innovative, comparatively inexpensive foundation designs will be required in order to harness the massive wind resource located in waters deeper than 60 meters.

In addition to elevated capital costs, offshore wind energy currently has higher cost of energy (COE) than comparable technologies. As discussed throughout this Strategic Work Plan, a critical objective of the OSWInD Initiative is to lower the offshore wind COE. Since COE is calculated as a unit of currency per unit of energy (typically $/MWh or ¢/kWh),

lowering project costs of a project only attacks COE by lowering the numerator. In order to have a game-changing impact on COE, on the order of cutting current COE projections by over 50%, the OSWInD Initiative will work with all necessary parties to drastically increase the denominator, or OSWInD Strategic Work Plan PREDECISIONAL DRAFT the energy generated by a single unit, in addition to lowering in the numerator. Higher energy generation will result from larger, more efficient, more reliable turbines with access to the best wind resource possible.

Achieving Cost of Energy reduction goals will require substantial improvement in all components of offshore wind project development, capital expenditures, and operational processes (Figure 11).

• Turbine Capital Cost: reduction in capital and installation costs of all turbine components

• Balance of Station Capital Cost: reduction in capital and installation costs of foundation structures, cabling, substations and other non-turbine components

• Operations, Maintenance and Replacement Cost:

reductions in scheduled Other Variable Costs, 11%

maintenance as well as improved reliability through Turbine, 27%

lower replacement costs for components, such as O&M, 20%

gearboxes, generators and blades.

Electrical

• Capacity Factor: improved Infrastructure, 11%

overall system performance Other Capital Costs, 3%

including siting, energy Logistics and Project capture and availability Development and Installation, Support Structure, 10% 13%

Permits, 4%

• Transmission & Grid Integration Cost: including low cost transmission Figure 12. Lifecycle Cost Breakdown - Offshore Wind (NREL) configurations and wind integration into power management systems

• Start-up & Permitting Cost: including reducing cost of delays due to permit approval times

• Cost of Capital: including reduced financial risks, lower insurance & warranty premiums via stable & predictable production output and life cycle operational time.

3.2 Technical and Infrastructure Challenges Significant challenges to offshore wind power deployment related to resource characterization, grid interconnection and operation, and infrastructure will need to be overcome. The offshore wind resource is not well-characterized; this significantly increases uncertainty related to potential project power production and turbine and array design considerations, which in turn increase financing costs. The implications for adding large amounts of offshore wind generation to the power system need to be better understood in order to ensure reliable integration and evaluate the need for additional grid infrastructure such as an offshore transmission backbone. Finally, with current technology, cost-effective installation of offshore wind turbines requires specialized turbine installation vessels, purpose-built portside infrastructure for installation, operations, and maintenance, and robust undersea electricity transmission lines and grid OSWInD Strategic Work Plan PREDECISIONAL DRAFT interconnections. These vessels and this infrastructure do not currently exist in the U.S., and legislation such as the Jones Act limits the ability of foreign-flagged vessels of this kind to operate in U.S. waters.

3.3 Permitting Uncertainty Offshore wind projects face uncertain permitting processes that substantially increase the financial risk faced by potential project developers and financiers and that discourage investment both in projects and in development of supply chain and other supporting infrastructure. Current estimates for project approvals on the Outer Continental Shelf (OCS) range from 7 to 10 years. In the Great Lakes, in which eight states and two Canadian provinces claim jurisdiction, numerous competing activities and the lack of an overarching regulatory framework create additional and unique permitting challenges.

Numerous state and federal entities have authority over siting, permitting, and installation of offshore wind facilities; each contributes to the complexity and length of the process.

Federal agencies and departments with jurisdiction to regulate and approve offshore wind projects and related infrastructure include the Department of the Interior, which through the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) serves as the lead agency in permitting offshore wind energy on the OCS; the Army Corps of Engineers (ACOE), which is responsible for permitting any potential obstruction or alteration of U.S. navigable waters, and currently serves as the lead federal agency in permitting offshore wind in state waters, including the Great Lakes; and a host of other federal entities, such as the Environmental Protection Agency (EPA), Fish and Wildlife Service (FWS), National Park Service (NPS), National Oceanic Atmospheric Administration (NOAA), National Marine Fisheries Service (NMFS), Federal Aviation Administration (FAA), Department of Defense (DOD), U.S.

Coast Guard (USCG), and the Federal Energy Regulatory Commission (FERC). An equal or greater number of state and local government entities as well as numerous other stakeholders must also be consulted in the permitting process.

4. DOE Offshore Wind Program DOE, as a non-regulatory agency, is in a unique position to provide national leadership through collaborative barrier-breaking partnerships with other federal agencies, the States, academia, and industry.

This section of the Strategic Work Plan lays out a detailed program for accelerating offshore wind deployment in the U.S. through targeted technical research and development, partnerships to remove market barriers, and implementation of pioneering demonstration projects. Through such a program, DOE OSWInD Strategic Work Plan PREDECISIONAL DRAFT can capitalize on its unique position to help eliminate uncertainty, mitigate risks, and facilitate the use of the first projects as testbeds for research and development.

4.1 OSWInD Strategy As discussed in Section 2 above, a common set of challenges and barriers confront the initial U.S.

deployment of offshore wind energy and the long term growth of offshore wind into a major industry and significant contributor to the nations energy needs. The OSWInD strategy considers two critical objectives in attacking these barriers.

Offshore Wind Critical Objectives

• Reduce the cost of energy through technology development to ensure competitiveness with other electrical generation sources;

• Reduce deployment timelines and uncertainties limiting U.S. offshore wind project development.

To meet these objectives, the OSWInD Initiative will undertake a set of seven major Activities administered through three Focus Areas. The activities will be further broken down into Research Areas, Details and Stages. See Figure 7 for a representation of the Program to the Research Area level and section 4.2 for an in-depth discussion of the remaining levels. A strategic discussion of the three Focus Areas concludes section 4.1.

Technology Development Currently, more than 2 GW of offshore wind capacity is installed in Europe and about 5 GW of offshore wind is proposed for the U.S. (NREL WP), indicating that a certain level of technological readiness already exists, although significant government subsidy will be required to make initial projects economically competitive. A world-class research and development program is needed to integrate the resources and expertise of the country through coordinated investment and information exchange in order to propel the U.S. to the leading edge of offshore wind technology. In the short-term, the Technology Development Focus Area will concentrate primarily on risk reduction to facilitate the initial deployment of offshore wind projects in U.S. waters. Over the long term, the Technology Development Focus Area will have a primary goal of developing new technologies that lower the cost of energy, sustain the growth of the industry, and make offshore wind cost-competitive without subsidies.

Facilitating deployment of the initial projects in the U.S. is a top priority in the short-term because these installations will provide experience, generate performance data, and highlight unforeseen issues, all of which will help inform and prioritize the OSWInD Initiatives longer-term technology research and development program. Design codes, standards development, and performance models are some of the specific Technology Development activities that will both lay the foundation of a long-term research and development program and reduce risk for developers, regulators, designers, and financiers involved in the first offshore wind installations. Special consideration to technical improvements needed to adapt primarily European technologies to the U.S. offshore environment will also be a priority.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT OSWInDs long-term research and development strategy will focus primarily on hardware development to both reduce the life-cycle costs of offshore wind energy systems and expand access to the most promising wind resource areas. More than half of the estimated life-cycle cost of an offshore wind turbine farm is determined by the foundation, electrical infrastructure, installation and logistics, and operations and maintenance costs.

Successful implementation of this ambitious national research and development program will require collaboration with federal and state agencies, universities, international organizations, non-governmental organizations, and complementary industries such as the U.S. offshore oil and gas and European offshore wind industries. Identifying shared priorities in research will be critical to maximizing investment with minimal overlap. Access to shared resources, especially test facilities, will be integral to developing the next generation large offshore wind turbines. As a final step, field testing could be conducted offshore to provide platforms for testing pre-commercial turbines before full deployment and to collect performance data to benefit the entire industry and lead to improved reliability. The specific activities and detailed research areas that form the Technology Development focus area will be presented in the OSWInD Initiative Implementation section.

Market Barrier Removal Long-term gigawatt deployment of offshore wind energy in the United States cannot exist within the current landscape in which the regulatory process is still uncertain and the estimated timeline from initial bidding to project approval ranges from 7-10 years (Figure 13).Moreover, key market, social and environmental risks are not well-understood; offshore wind resources are poorly characterized; and essential transmission, supply chain, installation and maintenance infrastructure does not yet exist. Absent a clear vision to overcome these recognized stumbling blocks, project development risks will continue to be unmanageable and COE will increase.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT OSWInD Initiative Program

3. Adv. Tech.

1. Technology Development

2. Market Barrier Removal Demonstration Projects Focus 1.1 Computational 2.2 Tools and Test Data 1.2 Innovative Turbines 1.3 Innovative Balance of System 2.1 Siting and Permitting Complementary Infrastructure 2.3 Resource Planning 3.1 Projects (1-?) Activity 1.1.1 Performance 2.1.1 Market 2.2.1 Domestic 1.2.1 New Turbine 1.3.1 Support 2.3.1 Resource 3.1.1 Planning and Modeling and Perception and Manufacturing and Concepts Structure Characterization Siting Validation Benefits Supply Chain 2.2.2 Transmission 1.1.2 Design Tools 1.2.2 Advanced 1.3.2 Balance of 2.1.2 Regulatory 2.3.2 Facility 3.1.2 Construction Planning and and Standards Drive Concepts System Processes Design Conditions and Installation Interconnect Research 2.1.3 2.2.3 Ports, 1.2.3 Controls and 3.1.3 Testing and 1.1.3 Field Testing Environmental Vessels, and Power Electronics Experimentation Risks Operation 3.1.4 Reporting 2.1.4 Radar and Communications Figure 14. Focus areas, Activities, and Research areas of the OSWInD Initiative OSWInD Strategic Work Plan PREDECISIONAL DRAFT Reducing Cost of Energy: An Analysis of Interrelated Factors Table 10 provides a long term scenario for achieving a $.07- $.09/kW Cost of Energy for offshore wind by 2030 through addressing the full range of critical interrelated factors outline below.

I. Increased system efficiency and decreased capital costs via (a) development of larger scaled systems and (b) innovative component and overall system designs:

- Installed Capital Cost will need to be reduced by 39% to $2,600./kW from $4,259./kW

- Average Turbine rating will need to increase from 3.6 MW to 10.0 MW

- Capacity Factor will need to improve from 39% to 45%.

II. Decreased operational and replacement costs:

- Operating costs in a difficult marine environment must be continually reduced to compete with land-based systems

- Fully loaded replacement cost, including the cost of marine transport and component replacement costs will need to be reduced via higher reliability and innovative, low maintenance designs.

Year 2010 2015 2020 2025 2030 Component Installed Cap Cost/kW $ 4,259 $ 3,900 $ 3,400 $ 2,900 $ 2,600 Fixed Charge Rate 20% 17% 14% 11% 8%

Turbine Rating (MW) 3.6 5.0 6.0 8.0 10.0 Rotor Diameter 107 126 136 156 175 Annual Energy Production / turbine 12276 17905 22029 31040 39381 Capacity Factor 38.93 40.88 43.67 44.29 44.96 Array Losses 10% 9% 8% 7% 7%

Availability 95% 96% 97% 97% 97%

Rotor Cp 0.45 0.46 0.47 0.49 0.49 Drivetrain Efficiency 0.9 0.9 0.95 0.95 0.95 Rated Windspeed (m/s) 12.03 12.03 12.03 12.03 12.03 Average Wind Speed at Hub Heights 8.8 8.91 8.96 9.09 9.17 Wind Shear 0.1 0.1 0.1 0.1 0.1 Hub Height (m) 80 90 95 110 120 Generator Geared Geared DDPM DDSC DDSC Cost of Energy ($/kWh) 0.269 0.2057 0.1486 0.1035 0.0712 DDPM: direct-drive permanent magnet; DDSC: direct-drive superconducting.

Reference:

From an unpublished National Renewable Energy Laboratory analysis April, 2010.

III. Decreased financing costs via reduced project risks:

- Fixed Charge financing rate will need to be reduced from current estimated 20% to target level of 8% via decrease in perceived investor risk. Fixed charge rate includes financing fees, cost of capital/return on equity, fees during construction, insurance and warranty fees.

- Regulatory and permitting approvals will need to be predictable and timely

- Installation construction costs, system performance and maintenance and replacement requirements will need to be stable and predictable.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT The OSWInD Initiative will provide this clear vision for overcoming market barriers through three primary Activities:

• Resource Planning, which will address wind resource characterization and other data required for Coastal and Marine Spatial Planning and other efforts to plan the use of marine resources;

• Siting and Permitting, which will address policy and economic analysis, radar interference, regulatory processes, environmental and socioeconomic barriers, public acceptance, interagency dialogue concerns and risk management;

• Complementary Infrastructure, which will address domestic manufacturing and supply chain development, transmission and interconnection planning, and specialized vessels and other installation, operations and maintenance technology.

Figure 15. Major phases of the current OSWInD deployment timeline.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Close collaboration among key federal and state agencies as well as other stakeholders will be a cornerstone of the Programs strategy in this area. Responsibility for the barriers facing offshore wind is widely distributed among federal and state agencies, as well as a wide range of stakeholders.

Considering the scale and geographic BOEM MOU and Action Plan distribution proposed for offshore wind energy, very little site-specific data exists On June 29, 2010, the Department of the Interior and the on external conditions that influence Department of Energy signed a new Memorandum of design requirements, energy production Understanding that will strengthen the working relationship and therefore economic viability. The between the two agencies on the future development of Program will facilitate collaboration commercial offshore renewable energy projects on the U.S.

between key agencies and research Outer Continental Shelf. Under the Action Plan developed pursuant to the MOU, the DOE Wind Program and DOIs organizations to establish a national data Bureau of Ocean Energy Management and Regulatory network for characterizing the wind Enforcement have committed to improved exchange of resource and other factors such as wave data on offshore wind resources and technologies, engage action and seabed mechanics. These stakeholders on critical barriers, and collaborate on factors are not well documented but must research projects to achieve objectives in 5 initiatives, be better know for accurate marine spatial including:

planning, establishment of prioritized

• Developing attainable deployment goals for offshore wind zones, and financial due offshore wind on the OCS diligence.

• Reducing siting and permitting timelines for project developers Though DOE has no legal authority to

• Improving resource assessment capabilities mandate the removal of many of the

• Developing technical standards for the U.S.

hurdles barring accelerated gigawatt-scale offshore wind industry

• Reducing public acceptance risk through deployment of offshore wind, the agency information exchange and public engagement is uniquely placed to play a catalytic role in Successful implementation of the MOU and the Action Plan addressing such barriers by bringing depth will be critical to reducing the deployment barriers of knowledge of the technology and the identified in this Plan.

industry, technical and financial resources.

The Program will thus aggressively engage federal and state regulators, resource management agencies, and outside stakeholders to drive collective action toward the creation of an offshore wind industry, through the establishment of formal working arrangements such as memoranda of understanding with key agenciesfor example, the Memorandum of Understanding between DOE and the DOI on the future development of commercial offshore renewable energy projects on the OCS (see text box above, and Appendix A).

Safety, domestic economic benefits, cost-effective installation and operations, and practical grid integration processes are dependent upon development of large-scale local, regional and national infrastructure components dedicated to meeting the requirements of the offshore industry. The Program plans research activities with states, federal agencies and industry to develop optimized, integrated strategies for meeting these needs and funding technical development.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Advanced Technology Demonstration Projects The OSW Program will undertake Advanced Technology Demonstration Projects to impact the speed and scale of offshore wind development. Through these demonstration partnerships, DOE will support specific research, engineering and planning activities related to deployment of ground-breaking commercial or research-based offshore wind energy projects. On a cost-share basis, DOE will invest in specific aspects of project development that reduce siting and planning barriers or risks; reduce balance-of-plant infrastructure costs; enable full-scale testing of components, turbines and arrays; and/or support initial deployment of innovative technology. By providing funding, technical assistance and government coordination to accelerate deployment of demonstration projects, DOE can help eliminate uncertainty, mitigate risks, and facilitate the use of the first commercial projects as testbeds for R&D.

Key elements of the Demonstration Project focus area include:

• Multiple partnerships in a well-publicized 5-year program awarded through competitive solicitation

• Groundbreaking offshore projects of diverse geographic locations & technical focus areas

• Partnerships with commercial developers, industry, university research consortia, and utilities

• Program structure that grows and adapts with industry circumstances and successes

• Parallel DOE program to utilize BOEM research leases for later-stage projects

• Phased stage-gate process - projects must qualify for next phase

• Phase 1 activities that focus on factors enabling deployment; facility engineering; test readiness.

• Phase 2 activities that include installation and operational testing Selection criteria for the Demonstration Project include:

• 3-5 projects, minimum 50% cost share

• Prior progress toward deployment particularly in permitting

• Demonstrated technical expertise

• How funds would accelerate realization of project goals

• How project success would advance industry knowledge base

• How awardees and partners would support research Impact Analysis The OSWInD Initiative carries out cost and benefits analysis to provide a context for decision-making and to help define ongoing program activities and metrics. Development of analysis based (COE and other) metrics are critical for reporting progress and judging technical feasibility of new technology. These analysis activities include a coherent metric system to track program impact, cost of deployment barriers analysis to characterize program performance, and support for the development of analysis tools to assist the program in prioritizing major program research and deployment elements.

The cost modeling examines micro-economic cost and supply (e.g. O&M, installation, turbine subcomponents, etc.), but also considers macro effects (e.g. commodity prices, exchange rates, policy, etc.). These activities require substantive knowledge and evaluation tools, some of which remain to be developed. The analysis areas include national energy penetration modeling such as ReEDs, NEMS, and Markel. These efforts support national-scale initiatives to quantify carbon reductions, and enhance high penetration renewable scenario modeling. They also integrate offshore wind projections with ongoing job models such as JEDI that are already underway and include market and policy analysis on offshore wind projects, both in the US and Europe, as appropriate.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT OSWInD will develop and track metrics for its activities in each of the Focus Areas listed above to inform decision making regarding support for technology development and to assess the long range industry impact of DOE investment.

Current Offshore Wind Activities There are several offshore wind activities in which DOE is currently engaged. These activities are summarized here, but discussed in more detail in Appendix B.

DOE has invested a total of $99.5M through the American Reinvestment and Recovery Act of 2009 (Recovery Act), FY09 appropriations, and FY10 appropriations into offshore-related activities within the wind program. The current offshore wind activities support all three focus areas of the OSWInD Initiative:

technology development, market barrier removal, and advanced technology demonstration projects.

Activities in support of the technology development focus include: 1) the large drivetrain testing facility at Clemson University, 2) the large blade test facility at Massachusetts Clean Energy Center, and 3) research conducted at the University of Maine, the University of Delaware, and the University of Toledo. The large drivetrain and large blade test centers provide national infrastructure for full scale tests of key turbine components. The facilities will enable testing of a 15MW drive trains and blades up to 70m in length.

These facilities are important national investments as currently, there are not any facilities in the U.S.

where testing of the large drivetrains and blades predicted for offshore wind technology deployments can occur. University research will result in the validation of coupled aeroelastic/hydrodynamic models for floating wind turbine platform deployments; modeling work on two-bladed, downwind floating turbine concepts; feedback to technology developers on corrosion protection; feedback to developers on gearbox reliability; and materials innovation using composites for tower and blade structures.

Market barrier removal activities include: 1) Environmental research at the University of Maine, Michigan State University; 2) Projects addressing marketplace acceptance at the University of Delaware, Sustainable Energy Advantage LLC, Great Lakes Commission, Princeton Energy Resources International, LLC, and the South Carolina Energy Office; and 3) workforce development work at the University of Massachusetts, University of Maine, University of Toledo, and University of Delaware. The environmental research will investigate avian, bat and marine animal interactions for both the great lakes and the Atlantic seaboard.

The market acceptance research will investigate solutions to current barriers for offshore wind deployment.

The workforce development activities will result in new offshore wind specific curriculum at the community college, university undergraduate, and university graduate levels.

The current activity which supports the advanced technology demonstration project focus is the deployment of a floating platform/turbine into the Gulf of Maine. The Recovery Act enabled DOE to fund the University of Maine to deploy a 100kw wind turbine into deep water in the Gulf of Maine. The University of Maine will deploy a turbine/foundation design down-selected from three floating platform concepts tested in a wave tank testing facility. The turbine will be instrumented to gather empirical data which will be used to validate current aero-elastic/hydrodynamic models.

In addition to the activities mentioned above, the Department maintains a core competency of technical experts, distinguished in their field, at the DOE National laboratory complex to support key activities essential to the national agenda. Finally, the Department is actively engaged in interagency collaborations OSWInD Strategic Work Plan PREDECISIONAL DRAFT through activities with the MMS MOU Action Plan and the National Ocean Council, and other teams attempting to address the myriad of regulatory and permitting issues.

4.2 OSWInD Implementation This section takes a detailed look at how each of the Focus areas, Activities, and Research areas will be implemented as the Program matures. At the end of each Focus area discussion, it includes a chart that shows Details and Stages for each Research area.

Focus Area 1: Technology Development The research efforts in focus area 1 will be targeted at overcoming technological barriers to achieving a robust offshore wind industry able to achieve the deployment goal of 54 GW of offshore wind by 2030. The specific activities will focus on improvements to models, design tools, components, turbines and the balance of plant that will lead to a lower cost of energy, reduction in technological risk, and increased access to wind resources. The activities are highly integrated such that results of one area used as inputs to another 1.1 Computational Activity Tools and Test Data area and ultimately guided by a system-level optimization methodology. The 1.1.1 Performance 1.1.2 Design Tools Technology Development Focus area is Modeling and 1.1.3 Field Testing Research and Standards Validation broadly categorized into three main activities; (1.1) Computational Tools and 1.1.2.1 Partner 1.1.3.1 Conduct 1.1.1.1 Modeling Test Data, (1.2) Innovative Turbines, with EU labs field testing and (1.3) Innovative Balance of System.

1.1.3.2 Grid 1.1.2.2 OSW Activity 1.1: Computational Tools 1.1.1.2 Validation standards interconnection instrumentation and Test Data: The development of innovative technology begins with 1.1.1.3 System- 1.1.2.3 Coupled computational tools which are verified level Optimization Dynamic Simulation Detail through field tests. Collecting data on current turbine performance and 1.1.2.4 Extreme reliability along with environmental loads models design conditions such as metocean data and extreme weather events 1.1.2.5 Advanced subsurface enables updating and improving the structural models design tools that allow new turbines, Figure 16. Details and Research Areas for Activity 1.1 components and control systems to be developed as well as refinement of economic analysis based on turbine performance models. Current offshore technology is largely derived from land-based designs that have been conservatively modified for offshore use. The development of new design tools, standards and testing methods will lay the foundation for safer, more reliable, cost-effective, and higher performing offshore wind turbines. Financial and regulatory risks are also reduced through the development of validated standards and performance tools which increase confidence in the long term performance of offshore wind installations.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Research Area 1.1.1: Performance Modeling and Validation: In assessing the economic feasibility of a project, developers and financiers rely on models that predict the amount of energy a wind project will produce over its lifetime. Therefore, it is crucial to accurate project planning and credibility with the financial community that offshore energy production models be developed and validated by existing projects.

Development of a computational model that reliably predicts individual wind turbine performance in large offshore arrays is needed. Once this model is created, it must be validated using field test data. This capability will allow more reliable power production predictions, thus reducing project performance risk and cost of capital.

The performance of optimized offshore turbine designs may take advantage of innovations and design opportunities that were previously rejected for land-based turbines. The optimized system may include turbines that cost more per megawatt if it is balanced against reduced life-cycle project costs for the offshore system as a whole. Methodologies and computational tools will have to be developed that evaluate proposed improvements to subsystems and measure the impact on the overall system in terms of cost of energy and other relevant metrics.

Research Area 1.1.2: Design Tools and Standards: Offshore wind turbines employ technologies and designs that significantly depart from existing land-based turbine technology. The development of new and accurate computer models is necessary to aid in the development of optimum offshore designs. DOE will support development of computational tools needed to address structural design, control systems, aerodynamics, energy production, certification verification issues, multiple turbine array effects, multiple array impacts on a regional basis, resource characterization and meteorological/oceanographic phenomena. These tools will address the unique extreme environments in the US including hurricanes and ice conditions to allow deployment in all regions of the U.S.

Advanced design tools allow the reliable prediction of the behavior of complex ocean environment conditions and this new capability will permit the rigorous assessment and development of these innovative turbine concepts, components, and foundations. In the longer term, these advanced design tools will be necessary to develop and evaluate the floating platform designs necessary to reach deepwater resource locations especially off the Coast of Maine and the West Coast.

A robust set of standards must be developed for the benefit of designers, developers, regulatory agencies and the industry at large to reduce risk and increase reliability. Partnerships with International and national standards-writing entities will result in access to existing guidelines and standards which can serve as a baseline for US national efforts. It is essential that US standards harmonize with International standards to ensure access to global markets. These standards will lead to increased reliability, lowered risk, and lower cost of capital.

Research Area 1.1.3: Field Testing: The most effective way to establish offshore design requirements and confirm performance is through measurements made on actual wind turbines at sea. It will be necessary to instrument and measure multiple turbines to capture regional and technology design differences. DOE and national labs will partner with university research centers and industry in planning a long-term national operational data program.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Field test data from multiple diverse test sites is essential for computer model validation and to support innovation. This field test data should include grid interconnection and research instrumentation.

Additionally, it is important to collaborate with industry to establish a national or international database of shared operating experience which can lead to industry-wide understanding of the failures and costs of existing designs to direct and inform future research and development towards the highest impact activities.

Activity 1.2: Innovative Turbines: In order to lower overall project cost of energy, innovative integrated turbine configurations (rotor, drivetrain, tower, controls) are needed to reduce system weight relative to rated capacity, simplify installation processes, drastically reduce maintenance requirements by improving reliability, increase energy capture and, in general, benefit from economies of scale. DOE will form partnerships with research consortia, including industry, to identify, model and eventually demonstrate candidate system configurations with high impact potential on the cost of energy.

Research Area 1.2.1: New Turbine Concepts: It is 1.2 Innovative Activity generally recognized that Turbines larger turbines are needed to overcome the added cost of 1.2.1 New Turbine 1.2.2 Advanced 1.2.3 Controls and the foundation and other Concepts Drive Concepts Power Electronics Research capital costs associated with offshore wind turbines. A concept study of a large, 1.2.1.1 Large 1.2.2.1 Innovative 1.2.3.1 Conditions-turbine concepts drive trains based monitoring efficient and cost-effective turbine system will highlight the research and development 1.2.1.2 Advanced 1.2.2.2 Reliability 1.2.3.2 Advanced areas that will be required to rotors framework control systems Detail realize a system of that size.

This will help direct research 1.2.2.3 O&M and development of advanced priorities components, especially rotors, which will be required to Figure 17. Details and Research Areas for Activity 1.2 achieve the turbine design requirements. Concepts that achieve major weight reduction will also help enable future floating foundation designs.

Research Area 1.2.2: Advanced Drive Concepts: Innovative turbine drivetrains that have the potential for lower cost of energy, improve reliability, reduce weight and increase energy capture must be developed to enable the cost-effective, next generation turbines. DOE will support pre-prototype studies modeling integration of superconducting generators, transverse flux topologies and other enabling technologies into advanced turbine drivetrains. The drivetrain test facilities and eventually an offshore test bed will lower the risk for industry to develop these next generation drive concepts.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Research Area 1.2.3: Controls and Power Electronics: Due to their increased size and cost, offshore turbines offer new possibilities in control and power electronic sophistication not economically feasible in smaller systems. R&D leading to advances in condition monitoring systems, control algorithms, blade control strategies and power conditioning can increase turbine energy production, capacity factor and component lifetime.

A condition-based monitoring system consisting of a comprehensive suite of sensors and robust algorithms that detect impending problems before they occur, would improve availability and reliability with lower operating costs and improved energy capture which is especially valuable for the relatively remote, and limited accessibility of offshore turbines. This comprehensive suite of sensors and robust algorithms can also be combined into control systems that increase hurricane survivability, reduce operational loads, and provide sufficient damping for floating platforms.

Activity 1.3: Innovative Balance of System: A DOE-sponsored design 1.3 Innovative Balance of System Activity effort for U.S.-engineered support structures, anchors, and moorings will lead to identification of significant cost-saving opportunities for wind 1.3.1 Support 1.3.2 Balance of Structure System Research power plants in both shallow water, and in deeper water with both fixed-bottom and floating substructures.

Engineering trade-off analyses will be 1.3.1.1 Shallow 1.3.2.1 Hardware and Transitional followed by detailed design studies development Depth and prototype testing. Meanwhile, the development of grid architecture and hardware will integrate with 1.3.1.2 Deep 1.3.2.2 Integration innovative foundations and turbine (>60m depth) studies Detail concepts into a system-level optimization methodology to produce an optimized offshore next-generation 1.3.1.3 Anchors wind turbine technology platform. and Mooring Such efforts would draw upon the knowledge and expertise of the Figure 18. Details and Research Areas for Activity 1.3 nations marine engineering industry.

Research Area 1.3.1: Support Structure: Innovative shallow, transitional, and deepwater substructure designs that lower capital and installation costs and expand access to available wind resources will be developed. Advanced computational design tools for rigorously analyzing and reliably predicting the behavior of these complex subsurface structures will dramatically decrease the technology adoption timeline and enable focused and cost effective technology development through design trade-off studies leading to eventual prototype hardware demonstrations. Additionally, innovative anchors and mooring technology for these advanced substructure designs will further reduce cost and risk. Advanced control systems will help reduce loads on foundations and enable the development of floating systems which will OSWInD Strategic Work Plan PREDECISIONAL DRAFT require stability control and load minimization. Foundation designs will have to be done in tandem with installation strategies to optimize the time, cost and complexity of the construction phase which is susceptible to weather, availability of specialized equipment and variability of seabed conditions.

Offshore Wind Platform Options Land-based Shallow Transitional Deepwater Water Depth Floating 0m-30m Commercially 30m-60m Proven Demonstration Technology Phase Research Area 1.3.2: Balance of System: The design of the wind turbine array grid including inter-turbine connection schemes and substation designs as well as longer connections to the main electrical grid will all need to be optimized in order to make offshore wind developments economical. Design studies for high-voltage direct current, superconducting and other technologies will be undertaken to evaluate the available options. Concepts and hardware that allow for load balancing, short term forecasting of wind farm production and other grid services will also help make offshore wind more economical and integrate better with the existing electrical grid infrastructure. Reliability of the substations is also of vital importance especially as farms grow in size and more distant from shore.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 1. Activity 1.1: Methods and Verification Activity 1.1: Technology Development - Computational Tools and Test Data Research Area Title Detail Deliverable Impact Timeline Partners Develop wind turbine & array Computational models that Reliable power production predictions Update existing model Labs, Academia, performance models reliably predict individual turbine reduce project performance risk, to beta version NOAA,NCAR, 1 and array performance in large lower cost of capital and increase incorporating offshore Onshore offshore farms energy capture conditions - 1 year Validate performance models with Validation of above model with Reliable power production predictions 2 years - post Labs, wind array Performance field test data field test data reduce project performance risk, installation of turbine. operators, 1.1.1 Modeling and 2 lower cost of capital and increase Validation energy capture Develop methodologies and Concepts, methods and Enables optimized designs which System-level model Labs, Academia, computational tools to optimize computational tools to assess ultimately lead to lowest cost of development - 2 years Industry 3 next generation offshore wind impacts of proposed subsystem energy turbines, arrays, O&M strategies, improvements etc at a system-level Partner with European labs to Existing research and operational Test data from European installations Establish and support Labs, European access existing databases data from European offshore provides baseline for design tool Partnerships -1 year Labs 1

wind installations development Access Data - Ongoing Develop standards for offshore Robust suite of design and Standards lead to increased reliability, Draft guidelines - 1 year Labs, BOEM, 2 wind. Harmonize with European operation standards for U.S. lowered cost, and lower cost of capital Gap-filling studies - 2 Offshore wind standards Offshore Wind Industry years industry Coupled Dynamic Computational Validated model to evaluate Allows development of floating 2 years - validated code Labs, Academia Model Development dynamic response on the coupled platforms and optimization of full with field test data Design Tools 3 wind turbine and support turbine systems 1.1.2 and Standards structure to wind and wave loading Develop and validate loads models Validated model that accurately Essential capability to enable Study on hurricane Labs, Academia, for extreme environments predicts wind turbine loads under deployment in Southeast and Great design loads - 6 months ABS 4 (hurricanes, ice, etc.) extreme environmental Lakes and inform standards Validation on scale conditions development models - 1 year Advanced design tools for complex Computational Model that New capability permits rigorous 2 years after studies on Labs, Academia 5 subsurface structures reliably predicts behavior of assessment of innovative structures metocean conditions complex subsurface structures completed OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 2. Activity 1.1 (contd): Methods and Verification Activity 1.1: Technology Development - Computational Tools and Test Data Research Area Title Detail Deliverable Impact Timeline Partners Instrument - 1 year Implement data gathering Data Collection -

1 campaign and gather test data from Field testing is essential for model Ongoing multiple field test sites (fixed, validation and to support innovation Analysis - 1 year Labs, Academia, 1.1.3 Field Testing floating, regional) Field test data from diverse sites and technological risk reduction States Provide grid interconnection and Field testing is essential for model Demo project 2 research instrumentation for field Field test equipment operational validation and to support innovation awardees, Labs, test sites at sites identified in above task and technological risk reduction 5 yrs States OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 3. Activity 1.2: Innovative Turbines Activity 1.2: Technology Development - Innovative Turbines Research Area Title Detail Deliverable Impact Timeline Partners Large, Cost Effective Turbine Concept Turbine concepts with full cost Larger machines are needed 5 years Labs, Inventors, Studies analysis, demonstrated engineering to lower balance of station Industry, 1 feasibility, and tradeoffs for costs that dominate offshore academia hardware development. project economics New Turbine Advanced Rotor Development New materials, manufacturing Innovations in materials, Concept - 1 year Labs, academia, 1.2.1 methods and design concepts to manufacturing and design Materials and coatings industry, Concepts enable next generation rotor lead to load and weight evaluation - 1 year 2 development reduction enabling higher Manufacturing energy capture and larger methods - 2 years machines Blade testing - 2 years Evaluate and develop innovative Innovative turbine drivetrains Innovations in the market that Concept - 1 year Labs, Inventors, turbine drivetrains with potential for demonstrated to improve increase reliability, lower Subcomponent testing Industry lower cost of energy reliability, lower cost, reduce costs, and increase energy -1 year 1 weight, and increase energy capture Subscale system testing capture - 1 year Advanced drive Full scale prototype - 2 1.2.2 concepts years Develop Reliability Framework and Ongoing reliability characterization Database that Instrumentation - 6 NL, Industry, O&M Priorities and analysis reporting gathers/provides information months Industry, 2 targeted at improving Data collection and reliability and asset analysis - 4 years management Evaluate and develop condition based A comprehensive suite of sensors Improved availability and 2 yrs Labs, Academia, monitoring systems for offshore and robust algorithms that detect reliability with lower industry, 1 systems impending problems before they operating costs and improved Onshore occur energy capture Controls and 1.2.3 Power Evaluate and develop advanced control Control systems that increase Increase survivability, 2 yrs after Labs, Academia, Electronics systems for offshore wind turbines hurricane survivability, reduce increased energy capture, and computational tools Industry 2 operational loads, and provide enables floating platforms are available sufficient damping for floating platforms OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 4. Activity 1.3: Innovative Balance of System Activity 1.3: Technology Development - Innovative Balance of System Research Area Title Detail Deliverable Impact Timeline Partners Evaluate and Develop low cost offshore Innovative shallow, transitional Demonstrated and validated Scale Model design & Labs, Oil and Gas support structures for a variety of and deepwater support innovative support structures testing - 2 years industry, 1

water depths and offshore conditions structure designs that lower that lower cost and expand Full scale Prototype - 2 Developers including floating platforms. capital and installation costs access to resources years 1.3.1 Support Structures Evaluate and develop innovative Innovative anchor and mooring Lower cost of energy, Mooring concepts and Labs, Oil and Gas anchors and moorings for floating designs for floating offshore increased reliability, and testing - 2 years Industry, Coast 2 offshore systems in coordination with systems that lower cost and risk improved investor confidence Platform integration - Guard water program to reduce cost and risk 1 year Offshore Grid Hardware and Grid architecture and hardware Improved array efficiency, Concept studies and Labs, Submarine 1 Integration Studies design concepts feed in to system level evaluation - 3 years cable industry, optimization consultants 1.3.2 Balance of System Evaluate and develop grid hardware New hardware solutions Enables larger and more Hardware Labs, Submarine developed based on above efficient and reliable electrical development and cable industry, 2 designs grids leading to lower COE testing - 5 years consultants and O&M costs OSWInD Strategic Work Plan PREDECISIONAL DRAFT Focus Area 2: Market Barrier Removal At the heart of market barrier removal is the effort to increase the efficiency of the current deployment timeline as summarized in figure 8 above. The following discussion of Activities and Research Areas will focus on this goal.

Activity 2.1: Siting and Permitting: In order to meet programmatic goals for offshore wind deployment, permitting and siting timelines and costs need to be reduced; key market, socioeconomic, and environmental risks need to be better understood and mitigated; and strategies to build public 2.1 Siting and Permitting Activity acceptance of the technology need to be applied to regions with near- 2.1.1 Market 2.1.2 Regulatory 2.1.3 term deployment. Concerted Perception and Processes Environmental 2.1.4 Radar Research Benefits federal investment and 2.1.2.1 Efficient 2.1.3.1 Env. 2.1.4.1 engagementcoordinated within 2.1.1.1 Policy regulatory Monitoring Assessment and analysis processes technology Characterization and across agencies and in close partnership with states, non- 2.1.4.2 Radar 2.1.1.2 Market 2.1.2.2 Proactive 2.1.3.2 Baseline mitigation governmental organizations, and analysis siting and planning studies techniques other stakeholderswill be Detail required to enable both the short- 2.1.1.3 Costs and benefits analysis and long-term success of a vibrant offshore wind industry in the U.S.

2.1.1.4 Economic and social risks While DOE has no legal authority in the siting or regulation of offshore wind installations, the Wind Figure 19. Details and Research Areas for Activity 2.1 Program can make a significant impact in the planning, siting, and permitting processes by partnering with federal, state, and local agencies that regulate and manage these projects in state and federal waters. By supporting research and analysis to better understand regulatory uncertainties and to identify, reduce, and mitigate key environmental and social science risks and by producing and disseminating critically needed objective information to enable informed decision making by stakeholders, DOE will jumpstart the nascent offshore wind industry.

Efforts in this program area will be targeted at overcoming common barriers currently facing offshore investment and deployment. Priority will be given to efforts leveraging DOE investment with initiatives funded by other federal agencies, state and local governments, and by the private sector, including utilities.

The activities supporting implementation of the DOI-DOE MOU Action Plan referenced above will be critical in these initiatives Research areas will include four broad categories, presented below.

Research Area 2.1.1: Market Perception and Benefits: Development of a utility scale project requires capital investment of hundreds of millions, even billions, of dollars. As experience from land based wind and European offshore wind development have shown, policy options and financial mechanisms can have major impacts on the viability of projects. Credible, objective analysis to inform stakeholders and compare OSWInD Strategic Work Plan PREDECISIONAL DRAFT options is often lacking. In the absence of sophisticated and broadly accepted methods of analyzing costs and benefits associated with these investments, there will continue to be a wide variety of often contradictory data and interpretations on both the public value of offshore wind and its financial viability.

Under this research area, DOE will support the development of standardized methods, models and guidelines for the development of credible information on and tools for the evaluation of the costs and benefits of offshore wind. In addition, DOE will support quantifying relevant positive and negative externalities, such as environmental and socioeconomic impacts, in cost of energy calculations, and support objective analysis of policy and regulatory options related to offshore wind to enable informed decision-making on relevant questions regarding relevant choices at the project, industry, and energy policy levels.

Public acceptance of offshore wind will also be crucial, both to the deployment of specific projects and the long-term success of the industry. The development of offshore wind could pose risks to competing uses, such as fishing, tourism, and military operations; affected communities and organizations will also have concerns that will need to be addressed. Many of these issues will be site-specific, but many will have common themes that DOE is well-placed to address. To identify and better understand the potential socioeconomic impacts of offshore wind energy and the concerns of key stakeholders and communities, DOE will work with BOEM, other interagency partners, and key stakeholders to identify gaps in understanding, followed by targeted research aimed at developing risk mitigation measures and communication strategies to build needed public acceptance of offshore wind.

Research Area 2.1.2: Regulatory Processes: Planning an offshore project requires consideration of hundreds of important environmental and potentially conflicting use factors, as well as compliance with a multitude of regulations enforced by agencies with varying levels of jurisdictional authority. The estimated timeline for project approvals ranges from 7 to 10 years and the regulatory processes remain untested, increasing uncertainty and risk for investors.

DOE will work closely with other federal and agencies at a staff and policy level to develop recommendations to reasonable and efficient permitting timeframes. DOE will also support efficiency in permitting through the support and development of mechanisms such as standardized protocols for baseline planning surveys and monitoring programs, and the development of adaptive management strategies.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Current government planning for offshore wind investments, particularly at a federal level, has taken a first-come-first serve approach with regard to siting offshore wind projects that may not be optimal to achieve deployment at the speed and scale necessary to meet national objectives. Such an approach, while allowing a greater degree of flexibility to individual developers, misses efficiencies in required baseline data collection, environmental review and other permitting requirements that could be realized through a more proactive process. Properly designed, a proactive approach to siting and permitting may have the potential to significantly accelerate responsible installation of projects and to reduce the permitting costs and risks associated with offshore wind development.

To facilitate a more robust, broad-based siting strategy, DOE will work with other agencies and stakeholders to identify priority areas for offshore development through mechanisms such as the National Ocean Councils regional coastal and marine spatial planning processes, and will build on ongoing interagency efforts, including DOEs MOU with DOI, DOIs state offshore wind energy task forces, and DOIs MOU with the Atlantic Offshore Wind Energy Consortium, with the ultimate goal of identifying priority development zones for near-term, gigawatt-scale deployment.

Research Area 2.1.3: Environmental Risks: Hundreds of environmental studies have been conducted in Europe in conjunction with offshore wind development. While the U.S. can leverage lessons learned from these studies, few studies have been done in U.S. waters. Consequently, major data gaps exist that can delay and add significant risk for both project developers and regulators seeking to install offshore facilities.

Filling these gaps requires upfront investments in long-term, expensive research thatwhile of long-term benefit to the entire industryhas largely fallen to the first generation of individual project developers.

To better inform the public and decision-makers on the extent of potential environmental impacts, to avoid having individual developers shoulder the high costs of research, and to build the knowledge base, DOE will institute nationally coordinated efforts at gathering and analyzing environmental data and making it available to all stakeholders. This effort will include joint work with other agencies to coordinate identification of gaps and priority risks, analysis of European studies to identify data and conclusions applicable to the U.S., the aggregation and dissemination of existing environmental data through publicly-available databases, the collection of baseline data to fill key gaps, site-specific efforts such as before-after-control-impact (BACI) studies of relevant marine ecology in key geographic areas, development of tools and technologies for cost-effective pre- and post-construction environmental monitoring and mitigation, and development of broadly acceptable integrated environmental risk assessment and decision-making strategies. These investments will take the burden of research off of individual project developers and result in a learning process that will, over time, reduce perception of environmental and statutory risks to OSWInD Strategic Work Plan PREDECISIONAL DRAFT the regulatory and resource management agencies involved, reduce environmental requirements on project developers, and increase community acceptance.

Research Area 2.1.4: Radar and Other Technical Challenges: Potential interference of wind turbine arrays with radar signals presents a serious concern for many stakeholders including commercial aviation and the Departments of Defense and Homeland Security. The Department of Energy is a member of the sub-interagency policy committee on radar. This committee is chaired by the National Security Council and involves representatives from DOD, DHS, FAA, NOAA, and Director of National Intelligence. The committee focuses on identifying and resolving conflicting priorities regarding interaction between wind turbines and radar systems.

In order to effectively characterize the technical challenges and develop mitigation options, analysis of radar/turbine interaction factors will be conducted with key interagency partners. While many offshore radar issues are similar to those associated with land-based systems, there are also circumstances unique to offshore facilities. Therefore, additional research is needed to complement land-based efforts.

OWS Program activities will complement, and will be defined by, the collaborative framework being established for interagency radar investigations. This framework includes:

• Joint assessment studies to inform research needs

• Roadmapping that will prioritize R&D activities by individual agencies and identify opportunities of joint research projects between agencies

• Funded R&D on wind turbine mitigation technologies that can be implemented by the wind industry

• Validation of new technologies that can allow development of the nations wind resources without jeopardizing national security missions A goal of this approach is to dramatically reduce the need for project-by-project technical assistance through broadly accepted technology mitigation measures.

OWS Program-supported research will complement land-based initiatives by identifying offshore specific radar mitigation options for use by the wind industry and radar operators. These efforts will be informed by the experience and investigations carried out in conjunction with the European offshore wind industry, such as tests with integrating supplemental radar systems, and modifications to radar processing software.

Activity 2.2: Complementary Infrastructure: Research efforts will address infrastructure challenges that, if not adequately resolved on a national level, pose significant restrictions to offshore wind market growth and deployment. Priority will be given to efforts leveraging DOE investment with initiatives funded by other federal agencies, state and local governments, and the private sector, including utilities.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Research Area 2.2.1: Manufacturing and Supply Chain Development: The supply chain is defined as the system of manufacture and/or procurement of components, subcomponents and materials that comprise the assembled turbine and completed offshore facility. Domestic infrastructure is critical to the practicality and financial viability of individual offshore projects. Domestic manufacturing and the growth of U.S. based suppliers is also key to asserting global technical leadership and 2.2 realizing the full economic Complementary Activity benefit of the industry. Specific Infrastructure advantages to U.S. manufacture 2.2.1 Domestic of offshore turbines, tower 2.2.2 Transmission 2.2.3 Ports, Vessels, Manuf. and Supply Planning and Operation Research structures and the balance-of-Chain plant components such as 2.2.1.1 National undersea cable lie in reducing 2.2.2.1 Technology 2.2.3.1 Optimized infrastructure Characterization IO&M strategies transportation and transactional assessment costs in installation and 2.2.1.2 National operational periods.

2.2.2.2 Initial 2.2.3.2 Vessels and infrastructure integration analysis IO&M technology development In addition to offering financial Detail incentives such as tax credits 2.2.1.3 Manuf. 2.2.2.3 2.2.3.3 Reliability Improvement Collaborative utility framework and and loan guarantees, DOE will Techniques studies O&M priorities provide technical support to companies seeking to supply 2.2.2.4 Advanced offshore turbines and Technology Assessments components, and to economic development agencies seeking to establish manufacturing Figure 20. Details and Research Areas for Activity 2.2 facilities in their regions. The goal for this effort is to coordinate, facilitate, and leverage research activities at national laboratories, universities, and other agencies such as the U.S. Dept. Interior to facilitate U.S.-based manufacture, assembly, transport and O&M of wind turbines systems components. Such support includes studies needed to optimize integrated manufacturing and installation strategies; manufacturing process R&D for components such as blades; and analyses of critical material supply and demand factors to be faced by the growing industry.

Research Area 2.2.2: Transmission Planning and Interconnect Strategy: Offshore projects are being planned in close proximity to major urban load centers, requiring interconnection with some of the countrys major energy service providers. Grid interconnection studies are required to ensure that the impacts of large concentrations of offshore wind generation facilities on these transmission networks are properly understood and can be effectively integrated into the day-to-day power management strategies of the utilities; in addition to identifying system upgrades needed for reliable interconnection.

Studies will also assess the value of these utilities receiving offshore wind energy versus energy from other sources or regions; and the potential value to the East Coast grid of an extended offshore electric delivery network.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT The OSWInD Initiative will collaborate with DOEs Office of Electricity Delivery and Energy Reliability (OE) in developing a long-range DOE approach to characterize and address the needs for transmission planning and interconnection strategies specific to offshore wind energy. The following near-term research activities will support OE-led interconnect-wide transmission planning and address related long-range industry needs and utility challenges.

• Technology/Industry Characterization

• Initial Integration Analysis

• Collaborative Utility Studies

• Advanced Technology Assessments Research Area 2.2.3: Ports, Vessels and Operations: Offshore wind provides an opportunity for revitalization of a number of U.S. port and heavy industry facilities. Due to the large scale of offshore wind turbine components and tower/foundation structures it is advantageous to limit or eliminate overland transport from the most effective assembly and installation scenarios. In addition, European experience has clearly indicated that it will be necessary to create a purpose-built installation, operations, and maintenance (IO&M) infrastructure for offshore wind, including specialized vessels and port facilities. To assist industry and regional port facilities in making informed decisions regarding requirements for and design of IO&M infrastructure, DOE will participate in collaborative needs and capabilities studies for the benefit of all national regions.

A significant portion of the cost differential between land-based and offshore systems lies in the transport and erection requirements. European experience indicates that specialized wind system installation vessels, rather than adapted oil and gas vessels, will be required to cost-effectively meet high volume installation needs. DOE will support development of integrated manufacturing, transport, installation, and maintenance strategies leading to specialized vessels, safety systems, and tooling.

O&M analysis and planning at the onset of design and development of projects can contribute significantly to reduction of the Cost of Energy by optimizing system reliability and availability. Through maintainability analysis, taking into account projected reliability of components and periods of access limitations, this effort can support accurate energy production estimates as well as providing targeted reliability goals at a component and vessel fleet level. The program will include establishment of operations databases and development of advanced O&M strategies based on data analysis targeted at improving asset management.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Activity 2.3: Resource Planning: In order to assess potential offshore project 2.3 Resource Planning Activity sites and establish zones of prioritized activity, it is essential to have accurate field data, mapping and databases.

Although many agencies, universities and 2.3.1 Resource 2.3.2 Facility Characterization Design Conditions Research other organizations have programs nominally addressing offshore data needs, there has been no national scale 2.3.1.1 Data gaps 2.3.2.1 Data gaps coordination to integrate these efforts in analysis analysis meeting an agreed upon set of data needs for the offshore industry. This OWS Program activity will ensure a 2.3.1.2 National 2.3.2.2 National nationally coordinated effort to collect resource database planning database and disseminate data for use in planning plan Detail individual projects and carrying out critical marine spatial planning activities 2.3.1.3 Mesoscale in support of responsible offshore wind modeling development.

Most meteorological, wave, and seabed 2.3.1.4 Adv.

Meteorological data used in assessing potential offshore Instrumentation wind sites is based on extrapolations of data from on-shore sites, buoys or limited surveys. Such projections have Figure 21. Details and Research Areas for Activity 2.3 not been validated for accuracy. Little wind data has been gathered at actual offshore sites due the cost and lack of practical instrumentation. Similarly, little data exists on seabed conditions required to design foundations and plan cable trenching. These data are critical in assessing the costs, energy production, design requirement and overall economic viability of projects.

DOE will collaborate with other agencies such as DOI, NOAA and US Army Corps of Engineers in establishing common databases, ensuring that available data is utilized, supporting new measurement initiatives, and funding development of advanced instrumentation technology.

Research Area 2.3.1: Resource Characterization: DOEs memoranda of understanding with the DOI and NOAA establish a framework for effective national collaboration and for defining the highest priority research areas related to characterization of wind resources. This collaborative framework consists of the following key resource characterization planning activities:

OSWInD Strategic Work Plan PREDECISIONAL DRAFT

• Engagement of industry experts and formation of an Interagency Working Group

• Preparation of a Data Requirements Document identifying exactly which data - collected and compiled to specified protocols - is needed by the offshore industry

• Completion of a Gaps Analysis to determine the relevance of existing data, the best sources of data in the future, required modeling and extrapolation software and recommendations for advanced technology development

• Kick-off of a long-range Implementation Plan that acts as a roadmap for OWS and national partners in coordinating and supporting the specific activities needed meet the stakeholder needs defined in the activities above.

Research initiatives to be informed by these planning activities include a resource characterization campaign for the Outer Continental Shelf and Great Lakes; mesoscale atmospheric modeling to predict long range weather trends; analysis of extreme events such as hurricanes; assessment and refinement of advanced instrumentation and methodologies; and joint efforts in establishment of GIS databases and methods.

Research Area 2.3.2: Facility Design Conditions: To support reliable and safe offshore plant design and provide data for emerging marine spatial planning activities, a long term concerted effort to collect and disseminate critical field information beyond wind characteristics is needed. This data provides the basis for technical requirements governing structural design and establishes operating parameters of turbines, towers and balance of plant structures and cables.

Application of these requirements to facility Figure 22. Understanding External Conditions To Define the design impact determinations of practicality, Design Parameters (DOE) reliability and economic viability.

For instance, information on water depth, current, seabed migration, and wave action is used to study mechanical and structural loading on potential turbine configurations, assessing impacts of external site-specific conditions, in terms of both survival during extreme loading and long-term fatigue damage and degradation. Other quantifiable factors of the design environment include marine-growth, tidal forces, salinity, and icing, as well as the geotechnical characteristics of the sea or lake bed.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT The first steps toward making this design and planning information available are a gaps analysis to identify critical non-wind data and assess best means of collection; and implementation of a plan establishing a national network to make the data available and support required research and development. These activities will leverage the existing knowledge base of ocean engineering established by the oil and gas industry.

Figure 16 constructs a timeline for the execution of the details and stages of technology development and market barrier removal research areas.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 5: Details of Activity 2.1 Activity 2.1 - Siting and Permitting Research Area Title Sub-task Deliverable Impact Timeline Partners Ongoing policy Annual market data report and analysis of Reduced information barriers to 2011: First market report; NREL and other National and market emergent policy and economic questions investment; better decisions by policy Ongoing: Policy and market Labs as required 1

analysis makers and other stakeholders analysis Offshore Costs & Standard methodologies for project costs & Allow apples-to-apples comparison of 2011: Methodologies National Labs, private Benefits Analysis benefits evaluation, including quantification of offshore wind with competing developed; sector consultants, 2

externalities and COE analysis of non-technology generation technologies to enable Ongoing: Follow-on work as universities Policy and barriers and costs informed decision making necessary 2.1.1 Public Acceptance Economic and Studies to improve understanding of and Reduced study costs to developers, 2011: Conduct gap analysis Universities, Labs, NGOs, Public mitigation options for key socioeconomic and reduced permitting and NEPA 2011: Develop collective developers, State and Acceptance Risk public acceptance risks; targeted engagement of timelines, reduced risks to investors, research agenda; issue first Federal regulatory Reduction key stakeholders through publications, electronic regulators, improved public acceptance solicitation for key research agencies, other 3

media, workshops, etc of OSW 2012-2015: Follow-on stakeholders research as needed Efficient Recommendations to increase efficiency of Decreased timeline and risks 2011: Develop DOI: BOEM, FWS, other Regulatory Federal and State project authorization processes associated with siting and permitting recommendations; solicit for DOI agencies; NOAA; Processes and shorten timelines; standardized protocols for to both developers and regulators standardized protocols State and regional 1

environmental monitoring and mitigation; 2012-2015: Finalize organizations adaptive management strategies protocols, conduct follow-up research as necessary Regulatory 2.1.2 Processes Proactive Coastal and Marine Spatial Planning (CMSP) to Accelerated deployment in priority 2011: Identify high-potential DOI: BOEM, FWS, other Planning and identify zones for near-term, GW-scale regions; reduced environmental study zones; DOI agencies; NOAA; Siting deployment; improved broad-scale costs to developers; reduced 2011-2015: Participate in State and regional 2

environmental and ocean use data; plan for permitting timelines; reduced long- NOC-led CMSP processes; organizations potential research leases term risks to investors and regulators provide technical support as necessary OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 6: Details of Activity 2.1 (contd)

Activity 2.1 - Siting and Permitting Research Area Title Sub-task Deliverable Impact Timeline Partners Environmental Risk Improved environmental monitoring Reduced environmental study costs to 2011: Conduct gap Developers, universities, Reduction technologies; broad-scale environmental developers, reduced permitting and analysis and monitoring labs, NGOs, consultants, baseline data to fill key gaps; significantly NEPA timelines, reduced environmental technology roadmap; Federal and State regulators Environmental enhanced understanding of wide range of and statutory risks to investors, issue first solicitation; and resource managers 2.1.3 1 Risks environmental impacts regulators 2012-2015: Conduct needed multi-year studies, solicit follow-on work as needed Radar Outreach Evaluation of potential radar challenges Effective mitigation menu for radar and 2011: Quantify potential NL, Industry, Universities, and Mitigation within the OCS and engage key stakeholder turbine technologies that supports radar challenges; issue DOD, DHS, DOT, Techniques to proactively develop mitigation options synergistic mission (i.e. energy first solicitation 2.1.4 Radar 1 production and agency mission) 2012-15: Develop mitigation options; solicit follow-on work as needed OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 7: Details of Activity 2.2 Activity 2.2 Complementary Infrastructure Research Timeli Area Title Sub-task Deliverable Impact ne Partners National Infrastructure Quantify existing and potential Enhanced likelihood of 2011 - NL, Assessment and infrastructure needs and supplier efficient buildup of national 2012 Industry, 1 Development Strategy opportunities as well as critical path to scale infrastructure to meet States, Domestic effective growth industry needs. Agencies, Manufacturing and 2.2.1 Supply Chain Manufacturing Quantify existing and potential Manufacturing strategy 2012 - NL, Development Improvement Techniques component needs and supplier targeted at the build-out of a 2013 Industry, 2 opportunities. Identify technical pathway robust supply chain States, for market entry of large offshore Agencies, components Technology/Industry Provide baseline information on Primary target for activity: 2011 OE, NL, Characterization projected scale of offshore wind industry, interconnect-wide planning Industry, 1 deployment scenarios, technology and collaboratives Utilities, power production characteristics UWIG, Initial Integration Assess offshore applicability of current Identify gaps and recommend 2011 - OE, NL, Analysis wind integration solution sets. activities to address them in 2012 Industry, 2

operational integration studies. Utilities, Transmission UWIG, Planning & Collaborative Utility Case studies and joint analysis carried Activities will be based on 2011 - OE, 2.2.2 Interconnect Studies out with utilities having large-scale integration concerns and 2014 Utilities, Strategies 3 offshore wind development proposed in technical challenges identified UWIG, their service areas. by partner organizations Advanced Technology Identify potential advanced marine grid Technical analyses will be 2011 - OE, NL, Assessments and interface hardware designs such as focused on advancements that 2015 Industry, HVDC offshore 'backbone'; marinized lower costs, increase reliability, Utilities, 4

substations; advanced undersea cable reduce risks or facilitate UWIG, concepts; optimized inter-array grids. acceptance.

OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 8: Details of Activity 2.2 (contd)

Activity 2.2 Complementary Infrastructure Research Area Title Sub-task Deliverable Impact Timeline Partners Analysis and models to identify the most practical means of reducing cost of energy NL, 1

Optimized IO&M through IO&M techniques and supporting Required for effective decision Industry, Strategies infrastructure while ensuring safety. making by industry 2011 - 2012 Industry, Vessels, Facilities & NL, Ports, Vessels Technology for Stage 1 - Identify needs, solutions, costs Enhance efficient buildup of Stage 1 - Industry, 2.2.3 and 2 Installation, Operations and timeframes for development; Stage 2 - national scale infrastructure to 2011; Stage 2 States, Operations

& Maintenance Technical and financial support meet industry needs. - 2012-2015 Agencies, Database that Develop Reliability Ongoing reliability characterization and gathers/provides information Stage 1 - NL, 3

Framework and O&M analysis reporting. Stage 1 - Plan; Stage 2 - targeted at improving reliability 2011; Stage 2 Industry, Priorities Implementation and asset management - 2012-2015 Industry, OSWInD Strategic Work Plan PREDECISIONAL DRAFT Table 9: Details of Activity 2.3 Activity 2.3 Resource Planning Research Timeli Area Title Sub-task Deliverable Impact ne Partners Data Gaps Analysis Planning report assessing national status Required for effective long- 2011 NL, Industry, and future needs with respect to meeting pre- range interagency planning Academia, 1 determined industry and stakeholder data and interagency coordination NOAA, NWS, requirements BOEM, NCAR, DoD, NSF National Resource Plan to establish network of Required for effective 2011 NL, Industry, Database Plan instrumentation, databases and protocols to ongoing characterization of Academia, meet pre-determined data requirements offshore resource and design NOAA, NWS, 2 conditions, including local and BOEM, NCAR, Resource regional variations DoD, NSF 2.3.1 Characterization (Wind) Refined Mesoscale Reliable OCS and Great lakes mesoscale Models that provides the 2011 - NL, Industry, Modeling & Mapping models and user tools information necessary to 2015 Academia, 3 support technology, siting, NOAA, NWS, and economic decisions BOEM, NCAR, DoD, NSF Advanced Evaluation and validation of advanced and Identification of cost- 2011- NL, Industry, Meteorological applicable technologies (i.e. SODAR, LiDAR, effective siting tools validated 2015 Academia, 4 Instrumentation, Tools etc.) and related modeling tools to the satisfaction of structural NOAA, NWS, and Methodologies designers and financial BOEM, NCAR, institutions DoD, NSF Data Gaps Analysis Report identifying critical non-wind data for Required to develop a 2011 NL, Industry, turbine, foundation and balance of plant national databases of local Academia, design such as water depth, currents, seabed and regional design conditions NOAA, NWS, mechanics, wave action, and ice loading and BOEM, NCAR, 1 recommend means to collect data for national DoD, NSF and regional use Facility Design 2.3.2 Conditions National Offshore Interagency and multi-organization plan to Information feeds into 2012 - NL, Industry, Planning Database establish national network to collect and development of priority 2013 Academia, 2 make critical data available offshore wind zones and NOAA, NWS, reduction of timelines BOEM, NCAR, DoD, NSF OSWInD Strategic Work Plan PREDECISIONAL DRAFT Figure 23. Research Area and Detail Timeline in Quarters and Years OSWInD Strategic Work Plan PREDECISIONAL DRAFT Focus Area 3: Advanced Technology Demonstration Projects DOE issued a Request for Information (RFI) on June 15, 2010 seeking input from the public on the research, development, and deployment of offshore wind demonstration projects. Under this RFI, DOE sought specific information for targeting limited federal resources on activities with the highest potential for positive impact to the benefit of all stakeholders, including growth of the national knowledge base. 123 responses were received from 113 individual parties including developers, research universities, federal and state organizations, environmental and wind industry groups, members of the public, and broad consortia of all of these. A wealth of information was received on numerous topics and the types of support activities and technical assistance DOE could provide in order to have the greatest impact on reducing demonstration project cost, timeline to deployment, and risks -

technical, financial, environmental, or social.

Example input from the RFI:

...the greatest positive impact from [DOE] demonstration projects would be those that can demonstrate [offshore wind in the US] while also simultaneously performing other functions important for a new product, such as testing, validation or certification. Such combined activities provide a large multiplier on the benefit, with little increase in project cost. University of Delaware Experiment with attached growth and artificial reef development. Compare the overall impact and benefits to the environment and wildlife of a wind turbine in the marine environment. Sierra Club Development of specific design requirements for offshore wind turbines, starting with a clear definition of the reliability, availability and maintainability requirements, similar to those in other industries such as conventional power generation, rail, and aerospace would be extremely valuable for the developing offshore wind power industry in the US. As such, DOE should support development of these requirements and facilitate collaboration between relevant stakeholders. Boulder Wind Power Demonstration Project Funding: The Department anticipates allocating 30% of its FY2011 budget for offshore wind to advanced technology demonstration projects. By partnering in innovative projects and test facilities, DOE will accelerate market development, reduce industry risk, and enable field testing of technology developments.

Through cost-sharing initiatives, chosen through competitive solicitations, DOE will partner with one or more commercial developers, research consortia, power producers and/or utilities on at least three groundbreaking and diverse offshore projects with the goal of jumpstarting the offshore wind industry and increasing the common knowledge base for all industry stakeholders. DOE proposes issuing competitive funding opportunities to potential partners who demonstrate a minimum awardee cost share of 50%.

Projects: DOE proposes that the demonstration projects are diversified by geographical region, water depths, and innovative technologies. Consideration will be given to regions or states in which either wind research or commercial leases already have been proposed or have commenced, those in which OSWInD Strategic Work Plan PREDECISIONAL DRAFT federal or states have issued public Requests for Information, and/or those where initial environmental studies have been commenced or completed.

Activities: Use of DOE funds will include, but is not limited to:

• Innovative engineering activities (foundations and electrical systems, facility infrastructure, installation systems and methods)

• Field testing (use of designated turbines and foundation structures as industry R&D test-beds, which could include grid interconnection)

• Identification of research gaps and market barriers related to the marine environment (including resource assessment, environmental and socio-economic research, efficiency in state and/or federal permitting. planning, and siting) and development of reports and a knowledge base for industry.

Project success will advance industry expertise in engineering, facility design, installation, and federal and state siting processes. Success will be measured by verification of advanced technologies, installation of testing facilities, and advancement toward DOE deployment goals.

High Impact: Successful deployment of advanced technology demonstration projects will make offshore wind cost-competitive with other generation through reduction of uncertainties and refinement of technology. In addition, it will catalyze the nascent commercial offshore wind industry resulting in gigawatt-scale deployment of offshore wind technology.

The OSWInD Initiative seeks to provide support for Advanced Technology Demonstration Projects through collaborative partnerships. By providing funding, technical assistance and government coordination to accelerate deployment of these demonstration projects, the Initiative can help eliminate uncertainties, mitigate risks, and facilitate the development of the U.S. Offshore Wind Industry.

Within these demonstration partnerships, DOE may fund specific technical research, engineering, and planning activities that demonstrably enhance the timely execution of innovative commercial or research-based offshore wind energy projects. DOE funds may also support capital expenditures within these projects for materials or equipment that are clearly necessary to achieve the technology demonstration benefits of the project, to the extent those benefits are clearly supported in the applicants proposal.

Projects will be sought that are diverse in geographical region, water depth, and innovative technology.

Applicants will be encouraged to convey how project success will advance industry expertise in engineering, facility design, installation, performance evaluation and key federal or state siting processes; as well as further industry acceptance by key institutions, such as the public at large and the finance industry, through reduced risks and uncertainties.

Recognizing the magnitude and complexity of these industry challenges, DOE will investigate partnering with broad consortia having world-class capabilities and resources. Membership of such a consortium could include a world-class research entity, a major public or private utility, a transmission company, an OSWInD Strategic Work Plan PREDECISIONAL DRAFT offshore wind developer, an original equipment manufacturer (OEM) team capable of manufacturing all components of an offshore wind turbine system, marine installation specialists with experience in the marine environment, and a state or local government.

A detailed discussion of the deployment timeline for a proposed project is a key consideration when looking at a potential partnership. Projects that do not begin construction by 2015 will not be considered. The deployment timeline discussion should include feasible, innovative, and collaborative solutions to addressing current market barriers to deployment.

Key criteria that DOE will consider in evaluating potential partnerships will include:

• Cost share

• Relative strength of collaborative partnerships

• Demonstrated technical expertise

• Progress to date toward project deployment, particularly in siting and permitting

• How DOE funds/support would accelerate realization of project goals

• How the project success would advance industry knowledge base

• How the project would support innovative research

• Support from State and local communities

• Feasibility of proposed deployment timeline OSWInD Strategic Work Plan PREDECISIONAL DRAFT

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OSWInD Strategic Work Plan