Projo 7 to 7 News Blog

Taking the news pulse of Rhode Island and Southeastern Massachusetts, by Providence Journal and projo.com staff, from 7 to 7, every business day

Get the 7 to 7 on your mobile at www.projo.com. Twitter: projo | RSS | Email alerts

R.I. signs pact for off-shore wind farm

11:43 AM Thu, Jan 08, 2009 |
Maria Armental    Email

PROVIDENCE -- Governor Carcieri today announced that the state has signed a joint development agreement with Deepwater Wind Rhode Island outlining the terms and conditions for the construction of an off-shore wind energy development.

The $1.5-billion project is expected to generate 1.3 million megawatt hours per year of renewable energy, or 15 percent of all electricity used in the state. The project will be privately funded.

Construction is slated to begin in late 2010.

"This agreement sets the stage for Rhode Island to be the leader in the emerging renewable energy industry in the Northeast, and brings us one step closer to increasing our use of renewable sources to generate 20 percent of our electricity needs," Carcieri said in a statement released this morning. "With this agreement, we have set a clear timetable for the development including the construction of a major manufacturing facility at Quonset, bringing an estimated 800 high quality jobs to Rhode Island."

"We see this as a game changing solution to Rhode Island's energy future," said Michael Saul, interim executive director of the Economic Development Corporation.

"Deepwater Wind's presence in Rhode Island will be a catalyst to attract additional jobs in the renewable energy sector and position our state as a leader in renewable energy efforts," Saul said.

Watch a video explaining construction of the wind farm.

Under the agreement, Deepwater Wind will receive preferred developer status, allowing the company first choice of approved sites for the placement and construction of the project.

Approved locations will be determined through the Coastal Resources Management Council's Special Area Management Plan (SAMP).

Deepwater Wind is to establish a regional development office in Rhode Island within 120 days, execute a lease option on land at the Quonset Development Corporation for the construction of a major manufacturing facility to build the support structures on which the turbine and its tower will be based.

The agreement identifies two major construction phases:

Phase one will be a 20-megawatt project to be built in state waters. Construction is expected to begin in late 2010 and be completed in June 2012.

In Phase two, Deepwater Wind will construct a separate utility-scale project capable of producing 1.3 million megawatt-hours per year within three years of approval of Deepwater Wind's submerged federal lands lease application to the federal Mineral Management Service, a division of the Department of the Interior.

Your Turn: Is it a good idea for Rhode Island to sign an agreement to build a wind farm?

Background On The State's Path Towards 20 Percent Renewable Energy:

In 2006, Governor Carcieri announced an ambitious plan to increase the use of renewable sources of energy to generate 20 percent of the state's electricity needs. It was expected that approximately 15 percent would be derived from wind energy. The recently announced Ridgewood Energy project at the central landfill will provide another 5 percent of the state's energy requirement. Together, these projects will be on track to meet the Governor's renewable energy goals.

In June 2007, the Rhode Island Office of Energy Resources received the results of a report it had commissioned to determine the best locations for the development of wind energy projects. The report ranked ten sites according to the amount and cost of producible energy, whether or not the sites were in federal or state waters, and the visibility of the projects from shore. Factors highlighted in the report would guide the selection of sites. Most importantly, the report projected that 15 percent of Rhode Island's average energy demand at a competitive cost could be achieved by establishing a wind farm using areas identified as J and K in the study.

Last fall, an extensive stakeholder process was organized to evaluate the study. Participants in the four stakeholder meetings included city and town representatives, environmental organizations, local economic development organizations, commercial and recreational fishing interests, state government agencies, the U.S. Coast Guard, area university representatives, National Grid officials, and consultants to the RI Office of Energy Resources.

In April, the State issued a formal RFP seeking proposals from private companies to construct and operate an off-shore wind farm. In June, Governor Carcieri announced the team of individuals responsible for selecting the contractor to develop and construct a wind energy project off the shores of Rhode Island.

The Wind Energy Proposal Evaluation Team included several state energy and economic development officials, as well as the Dean of the URI Graduate School of Oceanography, Dr. David Farmer. Seven proposals were received.

In June 2008, the Rhode Island Renewable Energy Fund Board of Trustees approved funding for the development of a SAMP covering Rhode Island's offshore waters, executed by a joint partnership between the Coastal Resources Management Council and the University of Rhode Island. URI will provide data to the CRMC, who will execute the regulatory framework of the SAMP.

Under the federal Coastal Zone Management Act, preparation of a SAMP may enable permitting of projects within the area covered by the SAMP to proceed on the basis of an Environmental Assessment in lieu of an Environmental Impact Statement. The SAMP process is expected to be completed in two years.

Seven proposals were received by the Wind Energy Proposal Evaluation Team. Proposals were evaluated on the basis of total cost to Rhode Island ratepayers, the qualification and experience of the proposer in constructing wind projects, and the number of jobs and the amount of tax dollars to be created. The Evaluation Team was assisted by independent consultants in the area of energy economics and engineering technology, including the National Renewable Energy Laboratory. "The fact that the RFP generated more than double the responses that other states received in similar processes is testimony to the Governor's foresight in embracing the Special Area Management Planning process," commented Andrew Dzykewicz, Commissioner of the Office of Energy Resources. "This demonstrates that, given regulatory certainty, the private sector is ready to invest in projects of this nature, and can provide cost-effective renewable energy to consumers."


social bookmarking

Comments

Thomas Gebhard said:

Does anybody make a 60hz commercial offshore turbine? What will be the PPA cost to Rhode Island taxpayers? How many long term jobs will be created at what cost per job? These are all questions that need to be answered. Why would RI not buy renewable energy from the likes of Hydro Quebec? Was that alternative looked at? In the end, if the power price is not competitive this deal turns into a deal for higher taxes to the ratepayers of RI.

These are only a few questions I would ask.




Leave a comment

Please be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish.




Type the characters you see in the picture above.