Offshore Wind Wire

By Peter Brennan

So, have you finished reading through your backlog of Top Ten (and Top 11) lists of 2011?

We understand. Looking back on the past year is usually fun (and easy to write). We’ve fallen prey to that temptation ourselves. But in many ways, 2011 was a tough year for the emerging offshore wind industry. Tax incentives and loan guarantees went from uncertain to unlikely. A major project suspended development.

This has all been reported, and we are not going to dwell. We here at Offshore Wind Wire are looking forward to an exciting year. There are so many questions on our minds.

Will federal politicians match policy to rhetoric and actively support the offshore wind industry? Will Fishermen’s Energy deliver on its very ambitious timeline? Can Cape Wind continue its recent momentum and find a buyer for the second half of the project’s planned output? And what will BOEM change its name to this year? (We’re hoping for an unpronounceable symbol).

So, without further ado, here are the top six stories to watch in 2012:

1) The Production Tax Credit

This extension of the PTC is depicted as a make-or-break issue for the industry, but the larger issue is the sporadic approach that Congress has taken to this and other renewable energy incentive programs. As Todd Griset noted in an excellent November column, over the past two decades the PTC “has faced expiration and been extended seven times.” If Congress is serious about developing an offshore wind industry (and that’s an open question) it will need to provide a longer-term strategy. Last July’s Incentivizing Offshore Wind Power Act would be a good start.

2) Fishermen’s Energy

New Jersey-based Fishermen’s Energy has said that they will be able to begin land based construction this year, put “steel in the water” in 2013 and have turbines spinning by Labor Day of that year.  It all apparently hinges on a decision from the state’s board of public utilities. If the project hits, or comes close to, these goals then it seems as if New Jersey will have the first operational offshore wind farm.

3) North Carolina

North Carolina advocates have repeatedly touted their state as having the best offshore wind in the country. When BOEM opens the leasing process for the Tar Heel state, low development costs and a strong resource will present the industry with an enormous opportunity.

4) Cape Wind Buyer

The Cape Wind project received some good news at the end of 2011, when Massachusetts’ highest court approved the power purchase agreement between the developer and National Grid. Company officials are now hoping that the good news will translate into a buyer for the second half of the project’s electricity. In comments to the Associated Press, Cape Wind Vice President Dennis Duffy said that the court’s “decision was a major point, giving everybody a lot of real confidence in the project … the investment community has duly noted that event.”

5) Maryland Legislation

Last year, Maryland Gov. Martin O’Malley introduced a bold plan – requiring utilities to purchase electricity from offshore wind projects. The Maryland legislature was less bold, and got tied up in discussions of conflict of interest and ratepayer costs. O’Malley, thankfully, is back at it. His plan is before the legislature again and Maryland citizens rallied this week at the statehouse to support offshore wind development. If this plan goes through, it will be a testament to political perseverance and grassroots organizing.

6) Floating Turbines in Maine

Maine has been at the forefront of deepwater floating turbine technology for some time now, largely thanks to the efforts of Habib Dagher, UMaine professor and leader of the DeepCWind Consortium. In November it was announced that Norwegian energy giant Statoil had taken an interest in developing a deep water project in the Gulf of Maine. While BOEM will not issue a decision on Statoil’s application until 2014, the Maine Public Utilities Commission is currently reviewing proposals for a deepwater floating pilot project off of Monhegan Island that would consist of eight three-megawatt turbines. The PUC hopes to decide on a developer by early 2012. At that point the future of deepwater wind in the Gulf of Maine will become more clear.