Offshore Wind: Balancing efficiency and accountability
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Offshore Wind: Balancing efficiency and
accountability
Crystal BallroomThursday, October 13
11:15-12:15
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an ISEA idea...2,000 miles to offshore renewable energy
M. Klepinger, October 2011
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What’s the Big Idea?
GL community should find 2,000 square miles (2%) to be used for offshore energy
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How Will the Best 2,000 Miles Be Identified for Energy?
We’ll Have To Talk About It!
GL community should discuss creating
~The Inland Seas Energy CompactOR
~The Inland Seas Energy Authority (ISEA)
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What is the ISEA Idea?
• Create a new authority for offshore energy management, policy and planning
• Create a development corporation similar to the St Lawrence Seaway (but with triple bottom line)
• Convene leaders to identify which areas need preservation & which areas are best for energy
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Why?
• Creates certainty - a more stable 20-year policy environment - and will focus public debate
• Improves our position, gives us a brand, as we seek international investment in clean energy
• Provides space for the scale of the industry (enough to make billion$ investment worthwhile)
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ISEA Objectives• To capitalize on one of our Great Lakes
natural resource advantages - as the community did with shipping in the 1950s (constructing the new St Lawrence Seaway)
• To build upon the tradition of managing all Great Lakes natural resources for the benefit of future generations... adding offshore energy resources to the mix (along with fisheries, transportation facilities, water quality, etc.)
• To strengthen the Midwest’s economy and reduce greenhouse gas emissions(without unacceptable risks to area ecosystems)
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Why So Few Prospects?
• Wind resources classified as “excellent” to “superb” by the U.S. Department of Energy
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Why So Few Prospects?
• Where are the serious investors? – Existing state statues on Great Lakes bottomland
leasing and permitting were not designed to address offshore wind
– Existing federal Great Lakes management programs are not designed to address offshore wind
– Effect of impulse to “go it alone” in each state• Need to make progress on ice engineering, grids, ports,
installation vessels• Need to find economies of scale, lower costs by acting
together on our mutual interests• Need a regional power authority to set prices long term
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Questions From All Quarters About Great Lakes Wind
Governance questions
Environmental questions
Engineering questions
Price and profitability questions
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Functions of Energy Authority
• Sets 5-yr, 10-yr, 20-yr production goals• Prioritizes research, detailed field investigations• Prepares guidelines for site assessment,
construction, operations, decommissioning• Provides good public venue for federal agencies
(in what is primarily a state leasing decision)
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Functions of Energy Authority
• Partners with states to market sites• Considers state nominations of the most
favorable wind resource areas (WRAs)• Issues bonds and distributes revenues• Sells assets after 20 to 25 years
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Michigan Plows New Ground
• Governor’s Offshore Wind Council 2009• Identified 24 criteria for policy-making• Used GIS mapping to find the “best” & “worst”
• The “Most Favorable” Five Hundred Miles• Wind Resource Areas to be studied further
by industry, agencies and academics• Provides guidance to resource managers• Helps focus limited research dollars
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Application of Criteria Using GIS Mapping Tool
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Most Favorable Wind Resource Areas (Michigan WRAs)
SOURCE: Institute for Fisheries Research, UM/MDNR, GLOW Final Report, October 2010.
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Sanilac County WRA
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Sanilac County WRA
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In a Nutshell
• Great Lakes needs an offshore energy management authority
• Similar to the St Lawrence Seaway – with a triple bottom line mandate
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Where is the goalpost?
• ISEA action plan agreement 2011– Formation of ISEA Alliance
• Policymaker’s retreat 2012– Leader’s summit and visioning
• Identify 2000 Sq. Miles Most Favorable– Focus research and development in these
most favorable areas, begin leasing 2013
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So, What’s Next?
Retreat!Convene leaders of key stakeholder organizations:
~ Council of Great Lakes Governors ~ Great Lakes Commission ~ Great Lakes St. Lawrence Cities Initiative ~ St. Lawrence Seaway Development Corporation ~ International Joint Commission~Two GL environmental organizations & Native American organizations~ AWEA Offshore Wind Working Group, Offshore Wind DC~ Professional staff in the Depts. of Energy, Commerce, State, Interior
WINGSPREAD has offered to host a group of leaders when we’re ready
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Spread the word!Wireless password:
HOW11
Conference website:
Conference.healthylakes.org
Email us photos, comments, tweets or video & we will post online:
On Twitter? Use the hashtag:
#healthylakes