Offshore Wind: Balancing efficiency and accountability

Offshore Wind: Balancing efficiency and

accountability

Crystal BallroomThursday, October 13

11:15-12:15

an ISEA idea...2,000 miles to offshore renewable energy

M. Klepinger, October 2011

What’s the Big Idea?

GL community should find 2,000 square miles (2%) to be used for offshore energy

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)

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

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)

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)

Why So Few Prospects?

• Wind resources classified as “excellent” to “superb” by the U.S. Department of Energy

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

Questions From All Quarters About Great Lakes Wind

Governance questions

Environmental questions

Engineering questions

Price and profitability questions

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)

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

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

Application of Criteria Using GIS Mapping Tool

Most Favorable Wind Resource Areas (Michigan WRAs)

SOURCE: Institute for Fisheries Research, UM/MDNR, GLOW Final Report, October 2010.

Sanilac County WRA

Sanilac County WRA

In a Nutshell

• Great Lakes needs an offshore energy management authority

• Similar to the St Lawrence Seaway – with a triple bottom line mandate

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

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

Michael Klepinger Inland Seas Energy Alliance mikinetics@gmail.com517.676.9858

Spread the word!Wireless password:

HOW11 

Conference website:

Conference.healthylakes.org 

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