This Request for Proposals (RFP) solicits proposals for a private partner to move forward with the Rhode Island Energy Independence I project. The project would supply not less than 1.3 million megawatt-hours per year (or 15% of the energy consumed by Rhode Island's electricity customers).
Staff recommends that the state agencies approve the Bluewater-Delmarva (DPL) power purchase agreement (PPA), with the condition that the Public Service Commission (PSC) enter an order approving a non-bypassable charge that spreads the cost to Delmarva’s entire customer base.
In this 25-year Power Purchase Agreement (PPA), Delmarva Power & Light (DPL) Company agrees to purchase up to 300 MW at a cost to ratepayers of 10.56 cents/kWh. Bluewater Wind agrees to build a 150 turbine, 450MW offshore wind project.
In this 25-year contract, Delmarva Power (DPL) agreed to purchase 200MW, at 9.893 cents/kWh, of offshore wind power from Bluewater Wind. Bluewater is authorized to market an additional 400MW of power to other potential buyers in New Jersey and Maryland.
The NJ Division of Rate Counsel's consultant testifies that the proposed Fishermen's Energy (FERN) Atlantic City Windfarm project, and its Offshore Renewable Energy Credits (ORECs) prices, do not produce a net economic benefit to New Jersey ratepayers, and, if approved and developed, could lead to a loss of nearly 30,000 jobs and a loss of $1 billion in net economic output on net present value terms. On an annual basis, the project would increase rates by between $15 million to $37 million per year. Over a twenty-year time frame, the project would lead to a rate increase of $286.3 million. According to the consultant, the project should also be rejected since it fails to meet the statutory nameplate capacity limitation outlined in the Offshore Wind Economic Development Act (OWEDA).
The public opinion survey found that support for an offshore wind farm off the Atlantic City shore was almost 30 percentage points higher than a similar question asked in 2006. Sixty-six percent of respondents felt that an offshore wind project would have a positive impact on Atlantic City and the local environment. More than three-quartes of visitors said it would have no effect on whether or not they would visit Atlantic City, and another 19% said the would be more likely to visit the area.
The law authorizes the Virginia Marine Resources Commission (VMRC) to lease subaqueous lands for the generation of offshore wind energy.
The Minority Report refutes claims made in the Majority Report, and concludes that the Power Purchase Agreement (PPA) between Bluewater Wind and Delmarva Power (DPL) is in the public interest and deserves the approval of the Delaware General Assembly.
Garden State Offshore Energy's (GSOE) draft structure of an offshore wind set-aside, or “carve-out”, within New Jersey’s Renewable Portfolio Standard (RPS), which calls for 1000 MW by 2012 and 3000 MW by 2020.
Map of Damariscove offshore energy demonstration site.