DOE to award up to $180M for offshore wind demo projects; targeting lowering levelized cost of energy (LCOE) below 10¢/kWh
02 March 2012
The US Department of Energy (DOE) is soliciting (DE-FOA-0000410) proposals for up to four offshore wind energy projects to receive up to $180 million over six years, including an initial commitment of $20 million in fiscal year 2012. Funding is subject to Congressional appropriations.
The US has offshore wind resources estimated at more than 4,000 gigawatts, with strong, consistent winds located in the Atlantic, Pacific, the Great Lakes and the Gulf of Mexico.
DOE is focusing this latest research and demonstration initiative on innovative technologies that will achieve large cost reductions over existing offshore wind technologies. The demonstrations will help address key challenges associated with installing utility-scale offshore wind turbines; connecting offshore turbines to the power grid; and navigating new permitting and approval processes.
The primary goals of the Advanced Technology Demonstration Projects are to:
Install innovative offshore wind systems in U.S. waters in the most rapid and responsible manner possible; and
Expedite the development and deployment of innovative offshore wind energy systems with a credible potential for lowering the levelized cost of energy (LCOE) below 10 ¢/kWh or the local “hurdle” price at which offshore wind can compete with other regional generation sources without subsidies. (LCOE is the sum of all annual costs divided by the amount of electricity produced per year.)
In addition to the new funding, the Department is continuing to work with partners across the federal government to implement a comprehensive offshore wind energy strategy, conduct resource assessments, and streamline siting and permitting.
Applicants to the competitive solicitation are expected to form world-class consortia of energy project developers, equipment suppliers, research institutions and marine installation specialists. Energy Department funds may be used to cover up to 80% of a project’s design costs and 50% of the hardware and installation costs. Letters of intent are due on 30 March and applications are due on 31 May 2012.
Clean local wind energy @ $0.10/Kwh and electrified vehicles would be a better solution than ICEVs using $4.50/gal imported liquid fossil fuel.
Posted by: HarveyD | 02 March 2012 at 08:47 AM
This is such a total farce. Obama, in his first two years in office with a supermajority of democrats, could have opened up all offshore areas to wind production. This is simply more crony capitalism & political payback, which is all that Obama cares about. He does NOT genuinely want energy independence as quickly as possible.
Posted by: ejj | 04 March 2012 at 09:47 AM
Aah, Wind Energy.
Then I must be at Boondoggle Central.
Here in Ontario, Canada we are currently being fleeced by wind energy companies. As were Holland and Germany before us.
The sad fact is that wind energy doesn`t make practical sense unless the wind farm also has the appropriate energy storage.
In order to èffect energy savings you must be able to power down an equivalent amount of your steam turbine plant - colloquially referred to as `spinning reserves`.
Who doesn`t like the thought of megawatts of wind energy coming in - just for the taking.
But our problem with the grid is not energy it`s power.
The problem is that when wind energy starts arriving outside of peak power demand periods it doesn`t help matters. Major power systems will simply allow the supply voltage to increase by a volt or two. 30MW of added wind power to an existing local base load of 3000MW can be soaked up with a 1% rise of utility voltage - from 110 to 111Vac for instance.
Sure, meters in every house and business will register this incremental fact so at least the excess power will be billed over millions of customers. But will our actual quality of life alter. Hardly.
Only when wind farm contracts demand the setting up of the appropriate energy storage - which is about one seventh of the installed capacity over 24hrs - can the equivalent spinning reserve be safely removed from the grid and allow real savings to be made.
Posted by: T2 | 12 March 2012 at 02:38 PM