On July 27, New York Governor Kathy Hochul announced the release of the state's third competitive offshore wind solicitation (RFP), seeking to procure a minimum of 2,000 megawatts (MW) of new offshore wind generation capacity, as well as significant capital investment in New York's bourgeoning offshore wind energy supply chain. New York's Climate Leadership and Community Protection Act of 2019 established the goal of developing 9,000 MW of offshore wind capacity, the largest statutory goal to-date of any state in the country, by 2035. Combined with the 4,300 MW of offshore wind generation capacity procured through its prior two solicitations, the RFP will put the state more than two-thirds of the way towards reaching that target.
As with the prior two solicitations, the New York State Energy Research and Development Authority (NYSERDA) will administer the RFP, and will be the counterparty to agreements entered into with the developers of selected proposals.NYSERDA将签订协议购买选定项目生成的离岸风能证书(ORECs),协议基础为开发商提议的固定或指数价。每位开发商必须包含一份至少25年期的建议书,用于向NYSERDA出售ORECs的合同。开发商将保留与ORECs相关联的电能、容量和辅助服务出售权。
RFP仅限于从美国获得风能租约(执行或临时租约)的开发商海洋能源管理局 和每个建议必须显示 向纽约提供电提案中包含的每个离岸风生成设施(可能不包含三个以上设施)必须最小名牌容量为(a)千兆瓦或(b)设施租区最大可用容量,而租区必须位于美国海水容量小于1,000兆瓦高压直接流技术将需安装电网约束区的所有项目使用HVDC使用时,项目必须“打乱备战状态”,或设计时有能力连接离岸电源变电站,从岸上多个离岸风力生成设施带电这一要求旨在加强发电机提供电的可靠性,并为未来的近海风项目提供灵活性。
Each开发者提交建议书时还必须包括供应链投资计划(SCIP ) 。 SCIP的拟议融资可能包括纽约州3亿元资金,如果本地制造nacelles或lips建议书必须包括至少2.00美元的非国家开发建设费用万博体育app手机登录hrefss/grebank.ny.gov/NYGreenBank 筹资(可算作非州筹资)EST处理RFP关键内容,包括资格标准、提交要求、建议书评价过程、合同承诺和授标后过程和协议Interested parties may register here.投标者必须在12月1日前向NYSERDA提交意向通知,最后建议书必须在12月21日前提交
The revised TEN-E Regulation 2022 continues to work towards developing better connected energy networks while updating the TEN-E framework to focus on the latest environmental targets and ensuring consistency with the climate neutrality objectives set out in the EU Green Deal.
Towards a better integrated and greener EU energy market
The TEN-E Regulation 2022 reallocates and identifies 11 priority corridors with the purpose of meeting objectives to (i) reduce carbon emissions by 55% by 2030 and (ii) achieve carbon neutrality by 2050.优先通道侧重于更新基础设施类别,如近海电网通道和可再生和低碳气体,如氢解电机天然气基础设施和石油管道将不再有资格获得PCI状态TEN-E条例2022还确定了新的优先专题领域:(一) 采行配有IT技术(“智能电网”)电气网络;(二) 开发跨边界二氧化碳网络。
/p>能源基础设施项目proto侧重于推广绿色清洁能源的项目可获取PCI状态,如近海风能和可再生/低碳氢化注解氢或可混入其他气体(如天然气或生物甲烷)或自成一体的能源源TEN-E第2022号条例也鼓励智能电网和二氧化碳运输存储的PCIs 。补充地说,TEN-E第2022号条例将欧盟能源市场边界扩展至第三国,为所谓的互利项目引入新合作机制与PCIs相似,如果他们为欧盟总体能源和气候政策提供保障和去碳化服务,可选择它们。
欧盟委员会将每两年通过PCIs和PMIs清单(“EU链表”),第一批欧盟链表将在2023年11月30日前通过。
TEN-E规范2022还为欧盟链表中所有项目规定了新义务PCIs和PMI必须满足强制可持续性标准,并依照举例说,估计耗资8 000亿欧元提高近海可再生能源的摄取量,根据欧盟绿色交易目标,其中三分之二将用于相关电网基础设施。电力传输配电网单实现2030目标每年估计平均投资505亿欧元。
并举,帮助支付巨额费用,欧盟清单上的PCIs和PMIs可能有资格获得财政援助:
连接欧洲机制下Finance支持苏格兰政府热切地确保现有(碳氢化合物)部门就业者得到再技能和再生部门提供的机会,可再生能源价格可承受苏格兰水电部门将在支持这一过渡方面发挥重要作用,计划要求苏格兰政府评估如何为碳密集部门工人创建长期“技能保证”。Plan还突显苏格兰成为欧洲低成本氢矿生产者的潜力苏格兰政府将在2022年能源策略和公正过渡计划中更详细地说明其方法。
This money will fund FEED studies for large-scale renewable Hydrogen production projects with a view to making full investment decisions later in the decade.
The Scottish Government wants to use the £100m fund as a means to accelerate as many projects as possible from pilot stage to large scale commercial and has hypothecated £10m to prioritise innovation and research through the creation of the Scottish Hydrogen Innovation Fund, which will be launched early in 2022.
The remaining £80m of the EETF will fund the development of carbon capture, utilization and storage technologies – suggesting that the Scottish Government views blue Hydrogen as an important element of its Hydrogen revolution.
Timeline
The Plan sets out detailed action points until the end of 2026.苏格兰政府期望到2026年大规模氢生产基础设施到位,与大规模碳捕获存储相联(super>CCS )以及岸上和近海风开发。
计划还提出了2045至2045年Hydrugen经济路径图苏格兰的目标是到2035年实现100%可再生电运营,同时增加向英国和欧洲其他地区的氢输出量In the 2040s, the Scottish Government aims to have capacity to produce 25 GW of Hydrogen and to be established as an enduring and reliable exporter of Hydrogen to Europe.
Underlying Themes
- Strategic Scotland – the Plan stresses Scotland's ideal position – due to its location, infrastructure, skilled workforce and natural resources – to grow its Hydrogen industry and become a world-leader in the Hydrogen sector.
- Private Sector Diversification – the Plan notes the opportunity that Hydrogen offers for existing energy companies not only to diversify their offer, but also to reduce their carbon emissions.
- Regional Approach – the Plan reinforces the importance of Scotland's key regional hubs, in particular Orkney and Shetland, for potential growth in the Hydrogen industry.Aberdeen City is already deemed to be a Hydrogen hub in this regard, and the aim is for the initial public investment in these hubs to facilitate more significant private investment.
- Collaboration – the Plan sets out a collaborative approach to developing Scottish Hydrogen for export, particularly with Germany and other Northern European nations.
Relationship Between Hydrogen and Other Renewable Energy Sources
Although the Plan is not explicit on this point, it acknowledges that initial low-carbon Hydrogen infrastructure will pave the way for establishing the transportation and storage infrastructure to support a green Hydrogen economy in Scotland.
The Plan acknowledges that a strong renewables sector is essential to the development of Hydrogen projects.计划指出岸风部门支持小型和大型可再生水力项目的重要性,但承认该部门需要进一步投资。
离岸风部门更先进Successful bidders in the July 2021 leasing round will be announced in early 2022, and August 2021's leasing round had the specific objective of constructing offshore wind farms to decarbonise oil and gas infrastructure operations, support oil and gas-field decommissioning, and use excess generation to create Hydrogen.
Key Goals
The Plan set out six key goals:
- Drive Scotland's Hydrogen production capability to meet an ambition of 5 GW of renewable and low-carbon Hydrogen by 2030 and 25 GW by 2045.
- Address current barriers to the uptake of green and low-carbon Hydrogen, including high production costs.
- Support the growth of Regional Hydrogen Energy Hubs.
- Encourage demand for Hydrogen by supporting Hydrogen use and developing supply chain capability and export potential.
- Secure broad economic benefit from public sector and private sector support for development of regional Hydrogen production and use.
- Encourage the development of a strong Hydrogen sector in Scotland which supports a just transition to net zero.
II. ACTION PLAN
The Plan sets out six key challenges to be overcome during the next five years.
Scaling Up Hydrogen Production in Scotland
To unlock Scotland's potential to meet its ambitious targets for Hydrogen production, barriers such as regulation, planning laws or infrastructure constraints will need to be addressed.The Plan therefore commits the Scottish Government to a review of existing legislation, regulation and standards, to identify and remove potential barriers to the growth of the Hydrogen industry.
In order to improve understanding of the likely role to be played by Hydrogen in the domestic and global markets, the Scottish Government aims to establish the expected cost-trajectory for renewable Hydrogen up to 2045.
The Scottish Government will work with its counterpart in Whitehall to establish a UK Hydrogen Standard, and until this is established, the Scottish Government will only grant funding to Hydrogen projects with capture rates of at least 90%.将不向COsub>2 排放不减量的新Hydgen网站提供资金。
促进国内Hydrogen市场增长、规模经济和技术进步是关键交通产业被视为可能高氢需求行业。
Scottland政府会邀请能源密集制造厂商申请苏格兰工业能源变换基金赠款支持深度去碳化项目新的工业开发无阻碳排放将不符合苏格兰政府供资计划的资格。In the transport sector, the Scottish Government will establish a consortium for implementation of the Plan.
In the heating sector, the Scottish Government will support SGN (formerly known as Scotia Gas Networks), in converting elements of its network to Hydrogen, but only where doing so is consistent with keeping options open and limiting consumer costs.
Finally, the Scottish Government notes the urgency of amendments to existing UK-wide regulations to support the role of Hydrogen in the gas grid, to support Hydrogen blending and to maximize the volumes of renewable Hydrogen available in the energy system as quickly as possible.
Maximising the Benefits of Integrating Hydrogen into the Scottish Energy System
The Plan notes that converting renewable energy into Hydrogen provides new routes to market and may well change the investment proposition for new and existing renewables investors.
The Scottish Government believes that a key way to maximize the benefits of Hydrogen integration is to work with the UK government, Ofgem and the energy network sector to ensure that regulation rewards Hydrogen projects appropriately.关键行动点是建立氢流交通配送基础支持苏格兰氢流输出目标。
计划强调技能投资,包括提高工人技能并重新培训工人进入Hypgen部门。Hypgen工商开发服务将旨在促进产业和学术研究之间的协作。
企业机构将特别支持Scot2Ger项目,目的是到2024年向德国消费者提供苏格兰生产的可再生氢计划指出必须确保苏格兰氢流国际输出不存在法律或监管障碍,苏格兰氢流行业国际内向投资也不存在障碍。
Scottish Development国际外联方案将与280家被确定为苏格兰氢流行业外国直接投资潜在目标的国际公司积极接触将寻求与德国、比利时、荷兰、丹麦、加拿大、澳大利亚、日本和法国的关键协作。
加强创新和研究 一个新的苏格兰氢创新网络将促进苏格兰氢创新资产间增强协作并避免研究重复苏格兰政府支持苏格兰通过清洁氢欧洲合作伙伴关系申请欧盟资助,并启动150k英磅研究电话支持苏格兰和德国学术应用研究所之间的合作The European Commission seeks stakeholders' feedback until 18 November on its proposal to define cross-border projects in the field of renewable energy generation that would be eligible to receive EU funding under Connecting European Facility instrument.
In July 2021, the European Union adopted its Connecting Europe Facility (CEF) program for the period 2021-2027 worth EUR 33.71 billion to fund the development of high-performing infrastructures in the transport, energy and digital sectors.
Out of the CEF program devoted to energy (EUR 5.83 billion), 15% (EUR 875 million) is earmarked for a new category of eligible projects, namely ‘cross-border projects in the field of renewable energy', including for instance the generation of renewable energy from on- and offshore wind, solar energy, sustainable biomass, ocean energy, geothermal energy, or combinations thereof, their connection to the grid and additional elements such as storage or conversion facilities.
The Commission is now consulting stakeholders on its draft delegated act aiming at laying down the specific selection criteria and selection procedure of cross-border projects in the field of renewable energy.europa.eu/info/law/better调控/Have-your-say/intiatives/13239-Re在这方面,委员会强调推广者似可申请可再生能源领域跨边界项目状况,但不申请CEF供资状态确实必须被视为项目“质量标签”,允许推广者从市场或从会员国获得适当资金ec.europa.eu/news/cef-Energy-eu1-munds-support-prete-stude-service-s/p/p>Covington团队拥有丰富经验帮助你从早期阶段构建欧盟能源项目帮助您准备对咨询的回应-我们经常对一系列问题做-后,设计您的项目并按CEF、欧盟国家援助法、能源监管、公共订约和项目融资供资万博体育app手机登录ahrfss/www.cov.com/en/candido-garcia-molyneux'>CandidoGarcía Molyneux Energy and Project Development and Finance teams.
The focus is on domestically-generated renewable electricity to create a power system based on a mix of renewables, new nuclear power stations, flexible storage, gas with CCS and hydrogen.
Specifically, the NZS undertakes to:
- Secure FID on a large-scale nuclear plant by the end of this Parliament;
- Launch a new £120 million Future Nuclear Enabling Fund.
- Create 40 GW of offshore wind by 2030.
- Create up to one of floating offshore wind by 2030.
- Deploy new measures to help smooth out future price spikes.
2) Fuel Supply & Hydrogen
The NZS re-states the ambition that the UK will deliver 5 GW of hydrogen production capacity by 2030. The UK will at the same time halve emissions from oil and gas and increase the production of biofuels.
Specifically, the NZS undertakes to:
- Provide up to £140 million to establish the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) scheme, with a target of creating up to 250MW of green hydrogen production capacity in 2023.
- Introduce a climate compatibility checkpoint for future licensing on the UK Continental Shelf.
- Regulate the oil and gas sector in a way that minimises greenhouse gases through the revised Oil and Gas Authority Strategy.
3) Industry
The NZS commits the UK to creating four carbon capture usage and storage (CCUS) clusters by 2030. The UK will support a ‘deep decarbonisation of industry' through carbon pricing and the creation of low carbon industry clusters, which would have access to Government support under the CCS Infrastructure Fund and revenue support mechanisms.
Specifically, the NZS undertakes to:
- Accelerate the development of the Hynet and East Coast Clusters to capture 20-30 MtCO2 per year by 2030.
- Create a ‘reserve cluster' of Teesside and the Humber, Merseyside, North Wales and the North East of Scotland.
- Use the Industrial Energy Transformation Fund to future-proof industrial sectors.
- Consult on a net-zero-consistent UK Emissions Trading Scheme (ETS) cap to incentivise cost-effective abatement in industry.
4) Heat and Buildings
The NZS creates a pathway to ensuring that from 2035 all new heating appliances in homes and workplaces are low carbon and sets 2026 as the date for a decision on the role of hydrogen in heating.The Government will seek to reduce electricity costs and to rebalance energy levies (such as RO and FiTs) and obligations (such as ECO) away from electricity to gas.
Specifically, the NZS undertakes to:
- Prevent the sale of new gas boilers beyond 2035.
- A Boiler Upgrade Scheme will incentivize the swap-out of domestic gas boilers.
- Create a new Heat Pump Ready programme to provide funding for heat pump technologies with a target of 600,000 installations a year by 2028.
- Rebalance policy costs from electricity bills to gas bills.
- Fund the Social Housing Decarbonisation Scheme and Home Upgrade Grants and decarbonise public sector buildings by 75% by 2037.
- Launch a Hydrogen Village trial to inform a decision on the role of hydrogen in the heating system by 2026.
- Consider mandatory disclosure requirements for mortgage lenders on the energy performance of homes in their portfolios (UK housing stock generates 20% of carbon dioxide emissions).
5) Transport
The NZS aims to remove all road emissions and begin work to deliver zero emission international travel including through new vehicle grants and investment in electric vehicle infrastructure!and to increase use of public transport, cycling and walking.
Specifically, the NZS undertakes to:
- Introduce a zero emission vehicle mandate to give a clear signal to investors.
- End the sale of new petrol and diesel cars by 2035.
- Increase funding for zero emission vehicle grants and EV Infrastructure.
- Allocate funding to support the electrification of UK vehicles and their supply chains.
- Trial three zero-emission HGV technologies on UK roads to determine their operational benefits and infrastructure needs.
- Introduce funding to promote cycling and walking in UK towns and cities.
- Fund an increase in bus use.
- Make local transport systems net zero, including through zero-emission buses and trains and supporting infrastructure and remove all diesel-only trains by 2040.
- Extend the Clean Maritime Demonstration Competition.
- Research zero emission flights and commercialise sustainable aviation fuel.
6) Natural Resources, waste and fluorinated gases
The NZS sets out the Government's ambition to increase woodland creation in England to meet the UK's overall target of planting rates to 30,000 hectares per year by the next election.NZS旨在鼓励农民实施低碳耕作法,包括通过农林业The NZS sets out the UK's ambition to encourage a circular economy and continue to phase out the use of F-gases.
Specifically, the NZS undertakes to:
- Support low-carbon farming and agricultural innovation.
- Restore 280,000 hectares of peat in England by 2050 and treble woodland creation rates in England.
- Increase investment in net-zero-related R&D across Natural Resources, Waste & F-gases.
- Explore options for the elimination of biodegradable municipal waste to landfill from 2028.
7) Greenhouse Gas Removals
The NZS sets out the UK's ambition to deploy at least 5 MtCO2/year of engineered GGRs by 2030 through Government support to early commercial deployment of GGRs, with an ambition to move towards a market-based framework for GGRs.
Specifically, the NZS undertakes to:
- Invest in the increased deployment of GGRs.
- Explore regulatory oversight monitor, report and verify GGRs.
8) Support the transition with cross-cutting action
The NZS sets out the UK's intention to use its status as COP26 host nation to encourage other countries to get to net-zero by 2050, and set more ambitious interim emissions reduction targets.NZS鼓励私营部门提供绿色金融并设定政策意图使选择绿色选项对消费者更容易和便宜The NZS aims to support training and skills including through a focus on local solutions and undertakes to embed climate into all Governmental policy and spending decisions.
Specifically, the NZS undertakes to:
- Deliver funding to support net zero innovation projects.
- Use the UK Infrastructure Bank (UKIB) to crowd in private finance and pull through low carbon technologies and sectors to maturity and scale.
- Introduce a new Sustainability Disclosures Regime, including mandatory climate related financial disclosures and a UK green taxonomy.
- Reform the skills system to incentivize employers and learners in delivering net zero.
- Publish an annual progress update against a set of key indicators.
Reaction:
Overall, the Net Zero Strategy has been welcomed as providing a clear response to the scale of the climate change challenge and the transformation to the UK economy that decarbonisation will require over the next 30 years.
In particular, commentators welcomed the prominence given to: the ZEV mandate!资助离岸风供应链和基础设施近海传输网络协调承诺审查CfD拍卖频率重写氢雄心and the nuclear power commitments.
Commentators have welcomed the emphasis on carbon sequestration, both through natural means (peat bogs, trees) and new capture and storage technologies. For others, the requirement for the UK Government to reflect environmental issues in national policy- making, is one of the most important commitments in the document, since it places net-zero at the core of governmental decision-making processes.
On the Other Hand…
No Strategy ever satisfies everyone and some of the critical comments are worth examining briefly.
1) Weaknesses of the Policy Offering
- The NZS simply consolidates in one place the various UK Government strategies published in the last 12 months, rather than contributes significant new funding, or policy.
- There is no mention of the EU in the International Cooperation Section of the NZS and therefore no indication of how to solve the issues around carbon pricing cooperation (including any potential linkage between the UK and the EU ETS).
- The PM's 10 Point Plan of last December had already made the commitment to 5 GW of green hydrogen by 2030, so the absence of clarity on the UK's post-2030 hydrogen plans (including silence on the potential split between green and blue hydrogen) in the NZS was a missed opportunity.
2) Reliance on Unproven Technology
- The NZS's low carbon future society relies heavily on a techno-centric, market-driven vision, based on largely unproven technology.
- Greenhouse gas removal technologies (that are untested at scale) must, between now and 2050, be developed and deployed so as to remove and store more carbon than the UK currently emits from all its homes.
- Green hydrogen is allocated a major role, though the UK currently has very few operating production facilities.
- Nuclear has been given a (welcome) central role in addressing renewables' intermittency problems. But the solution chosen – small modular nuclear reactors – uses largely unproven technology.
3) Financing
- The Committee on Climate Change has previously calculated that £1.4tn of investment is required over 30 years (equivalent to 2.4% of the UK's GDP or £46 billion per year) to make the country carbon neutral.
- The scale of finance committed by the government in decarbonising the UK's housing stock is less than a quarter of the investment required by 2025.
- The NZS aims to mobilise £60bn of private finance by 2030 in addition to £26bn of public funds: equivalent to the sum the UK has invested in the renewable industry over the last decade.
- The NZS target for installing heat pumps is 600,000 per year by 2028.But the grant funding available for heat pumps will cover the installation of only 90,000 pumps.
4) Government Inconsistencies
The Treasury's Net Zero Review (NZR), released on the same day as the NZS, accepted that action to mitigate climate change was "essential to long-term UK prosperity". However, there were points where the NZR did not appear to share the NZS enthusiasm for the green revolution:
- The NZR raised concerns about the possibility of ‘industrial leakage' caused by stricter green policies in the UK as compared to other countries.
- The NZR raised concerns that the race to Net Zero was likely to result in the loss of up to £37bn a year in tax revenues from fossil fuel duty.
- The NZR noted the need for new taxes to pay for the NZS.
- The Treasury is concerned about possible job losses caused by the energy transition.
- Treasury officials are said to be considering some form of road pricing as another mechanism to raise funds.
There are other areas of apparent inconsistency:
- The apparent tension between Government commitments to grant new oil and gas licenses in the North Sea and open a new coal mine in Cumbria and the green agenda set out in the NZS.
- The NZS is silent on meat-eating, which contrasts with the approach taken in the UK's national food strategy.
Comment:
For all this criticism, the NZS is a welcome document. It is one of the first to comprehensively attempt to chart with some degree of precision how a country (the UK in this case) will reach its mid-century Net-Zero target.
If it was not clear before, the NZS reveals the almost unimaginable scale of the transformation that will be necessary to reach Net-Zero by 2050. By 2035, electricity will be fully clean!燃气锅炉和油气耗车将从英国房屋和公路上消失by 2025, the UK will be planting trees covering an area the size of Milton Keynes annually. And Net-Zero considerations will be placed at the centre of Government policy decision-making.
It is also clear that the UK is serious about addressing the climate crisis and that there is cross-Party support for accelerating the UK's Energy Transition. The government views its Presidency of COP26 as an opportunity to act as a global catalyst for progress in confronting the climate crisis and the NZS is a road-map to which the UK Government hopes other countries will look for inspiration.
There will be turbulence as the UK economy adjusts to the transformation. Turbulence which may create investment risks, but will also create major opportunities for investment- wind, nuclear, hydrogen, EV, energy efficiency, smart grids, smart storage etc.
Covington is well-placed to offer legal and public policy advice and support to companies seeking to navigate this new environment and discuss these opportunities with you to identify how we might work together.
In the AJP, the Administration explains that one of its goals is to "[e]stablish the United States as a leader in climate science, innovation, and R&D." As part of this effort, the Administration has vowed to invest in demonstration floating offshore wind projects. This is not the only recent federal action that has signaled Washington's newfound support for offshore wind. In December, Congress extended investment and project tax credits for offshore wind projects. The next month, the Administration summarized a collection of federal actions underscoring its commitment to create 30 gigawatts ("GW") of electricity via offshore wind by 2030.
Government actions already have delivered impressive early progress towards this goal.EPA最近https://www.epa.gov/newsreleases/epa-app-air-perti-dection-Educe-winde-wind-a hrefss/www.boem.gov/boem-annocations-Enview-report-ween-force-facility-offshore-Rhode-Island-and-Massachusts'项目Rhode-Island-and-MassachusettsIn 2019, the Bureau of Ocean Energy Management ("BOEM") released a statement explaining that it had "15 active commercial leases for offshore wind development that could support more than 21 gigawatts of generating capacity."
While states up and down the Atlantic Coast has seen a flurry of recent activity, states along the Pacific coast promise to play an important role in achieving the Administration's goals. California in particular appears well positioned to become a leader in offshore wind. A recent study estimates that California has over 200 GW of potential offshore wind capacity, 8.4 GW of which exist in current BOEM "call areas" off of California's central and northern coast.For reference, the California Energy Commission estimated that in 2018 California had approximately 80 GW of electric generation capacity installed across the state. These numbers make it clear that offshore wind in California could go a long way towards meeting the Biden Administration's generation target.
Offshore wind is now poised to play an important role meeting state emission reduction targets, including California's goal of achieving carbon neutrality by 2045. After all, it is a natural complement to California's robust solar generation: it picks up in the evening when the sun goes down, and remains a strong resource overnight. Offshore wind therefore provides a pathway to round-the-clock electricity from renewable resources.
Despite the fact that offshore wind has not yet been utilized in California, a recent joint energy agency study concluded that California will need to harness at least 10 GW of offshore wind to achieve carbon neutrality by 2045. Some do not want to wait that long, and are considering aggressive intermediate targets for offshore wind generation. A previous version of California Assembly Bill 525, proposed formal offshore wind goals for the state, including 3 GW by 2030 and 10 GW by 2040.
Just this week, California and the federal government signaled how serious they are about harnessing this renewable resource to achieve their respective goals. On Tuesday, Governor Newsom and the Biden Administration announced plans to sell offshore wind leases in two of the three existing BOEM call areas: large parcels in Morro Bay and off the coast of Humboldt County. It is estimated that placing turbines on floating platforms 20 to 30 miles off the coast in these areas could generate a total of 4.6 GW of electricity—enough to power 1.6 million homes. Officials are optimistic that the lease sale will occur in 2022.
Despite the state and federal optimism, there are some obstacles that will need to be addressed. In addition to concerns from environmentalists and the fishing industry, some of these concerns include:
- Design Challenges The areas that have the greatest potential for offshore wind in California are much deeper than their Atlantic counterparts. As such, the turbines cannot be mounted on the seafloor, but instead will need to be on floating platforms. This technology is currently expensive, but the rapid technological advances in Europe's offshore wind industry could be a reason for optimism.
- Ocean Use Conflicts Historically, the U.S.Navy has voiced its concerns about offshore windfarms in California causing issues with the Navy's readiness drills along the coast. The Navy has recently changed course, however, and has explained that it is willing to coordinate regarding the siting of a windfarm in Morro Bay, California.
- Transmission Capacity Because offshore windfarms will be located in federal waters several miles off the coast, transmitting the generated electricity will require the construction of new transmission capacity, including seafloor transmission lines that span multiple miles. These lines will then need to connect to the existing onshore grid. Helpfully, two BOEM call areas in California—Morro Bay and Diablo Canyon—have existing transmission infrastructure that could provide potential grid connection points for electricity generated via offshore wind: a nuclear plant slated for retirement in Diablo Canyon, and a retired power plant in Morro Bay.
- Installation Bottleneck As some have pointed out, a century-old law, the Jones Act, poses logistical issues for the installation and maintenance of offshore wind turbines. The Jones Act limits the transportation of merchandise by water between U.S.ports to vessels that are: built in the United States, registered in the United States, and owned by a United States citizen. But the installation of turbines requires specialized ships that the United States does not have— For its part, the Administration sees this as an opportunity as much as an obstacle. It has noted that the construction of a new fleet will be a key source of union jobs. The Administration recently emphasized that offshore wind has already generated jobs in onshore supply chains, including in the steel industry and shipyards as the United States constructs its "first Jones Act compliant wind turbine installation vessel." One report describes construction of that vessel, the Charybdis, as generating 800 jobs in a Brownsville, Texas shipyard that has previously produced offshore oil rigs.
Time will tell whether 30 GW within ten years is achievable given the current obstacles. But the recent pivot of major oil producers to offshore wind bodes well.石油大公司有数十年经验,使复杂近海项目结业并接入大规模建设近海风能所需的资本和供应链行政当局支持近海风能开发的承诺因此可能为它提供独特的契机与化石燃料行业的从业者合作实现雄心勃勃的创造就业和减排目标。
Because two other coastal states in the PJM region, Maryland and Virginia, have adopted offshore wind targets as well, the Study Agreement may be precedent-setting, as utility commissions in those states work towards implementing their respective targets.
Under the State Agreement Approach, one or more state governmental entities in the PJM region authorized by their respective states may voluntarily agree to be responsible for the allocation of all costs of a proposed transmission expansion or enhancement that addresses state public policy requirements. Because the State Agreement Approach is designed to be a flexible mechanism, there is no pro forma service agreement. In its filing of the Study Agreement, PJM explained that the agreement is being used as a first step toward identifying a transmission project tailored to New Jersey's public policy goals.
The Study Agreement requires PJM to use its existing tariff process to convene a competitive proposal window to solicit transmission solutions, and provides notice that PJM will study and plan for New Jersey's public policy goals in the 2020-2021 Regional Transmission Expansion Plan cycle. Among other studies, PJM may perform analyses similar to a system impact or facilities study to assess the deliverability of offshore wind capacity at specific interconnection points.
The Study Agreement also establishes key dates and milestones, including: (1) PJM will endeavor to post preliminary recommendations from project proposals for the NJ BPU to consider by October 15, 2021!PJM将在2022年2月15日或前后向NJBU提供最后传输项目建议,但无论如何不晚于2022年9月1日and (3) no later than 70 days after receiving PJM's final recommendations, the NJ BPU will enter into a term sheet to be filed with FERC. The term sheet will identify the project(s) selected by the NJ BPU, if any, as well as the designated developer(s) and cost allocation methods for such project(s).
Although PJM will make recommendations to the NJ BPU regarding cost-effective transmission enhancements or expansions for inclusion in the Regional Transmission Expansion Plan pursuant to the Study Agreement,, the NJ BPU is not required to select a project proposal submitted as part of the competitive proposal process. The State Agreement Approach allows the NJ BPU to select different proposed transmission enhancements or expansions for inclusion in the Regional Transmission Expansion Plan. As such, in the February 16 order, FERC acknowledged that the selection of any project, developer or cost allocation method may be the subject of subsequent filings by PJM.
A copy of the February 16 order can be found here.
A. Offshore Wind RFP
Gov.Cuomo公告正式开放纽约第二次近海风控项目OREC-RFP20-1(
As part of their proposals, OCREC-RFP requires offshore wind developers to submit a Port Infrastructure Investment Plan (PIIP) that includes at least one of the 11 prequalified New York ports to stage, construct, and manufacture key components, or coordinate operations and maintenance activities associated with the project. Developers' proposals must include a description of the proposed long-term use of the port facilities, including how it will compete with other facilities both regionally and globally. The state will provide up to $100 million in either reimbursable grant funding and up to $100 million in secured financing to assist developers of chosen projects with implementation of their respective PIIPs.开发商提交意向通知提交OREC-RFP截止日期为9月23日,2020年10月20日,如果完全授予,纽约将获得约9 000兆瓦离岸风能约一半的合同承诺Cuomo also announced the opening of two solicitations for land-based renewable energy projects by NYSERDA and the New York Power Authority (NYPA), respectively. NYERDA's solicitation, RECRFP20-1 (REC-RFP) seeks onshore, technologically-established renewable projects (such as solar photovoltaic facilities), which may be paired with energy storage, capable of producing a combined 1.6 million MWh or more. Selected projects will receive index-based or fixed-priced payments for their Renewable Energy Certificates (REC), similar to the payments to be made to project developers under the OREC-RFP. The deadline for submitting an eligibility application under REC-RFP is August 27, 2020, and the deadline for proposals is October 21, 2020.
NYPA's solicitation seeks utility-scale renewable projects that will produce an annual output of up to 2 million MWh or more. Developers of selected projects will enter into contracts to sell RECs, energy and/or capacity to NYPA or a designated entity, and are required to have a nameplate generation capacity that is 20-25 MW or 100 MW or greater. Submissions in response to NYPA's solicitation are due September 14, 2020.
Combined, the REC-RFP and the NYPA solicitation seek to procure sufficient renewable energy capacity to power nearly 500,000 homes. Together with the OREC-RFP, these solicitations are a significant endeavor by the state of New York to further progress towards the goal established by the CLCPA of meeting 70% of its electricity needs from renewable resources by 2030.