NEW WIRES FOR OCEAN WIND

$5 Billion Plan to Build First Offshore Power Transmission System; Some offshore wind players argue a big-ticket transmission backbone would only drive up the cost of delivering power to customers
Tom Johnson, October 13, 2010 (NJ Spotlight)

"The nation has yet to build its first offshore wind farm, but that fact isn’t preventing some deep-pocketed investors from backing a $5 billion offshore transmission system…The project, involving a 350-mile long underwater transmission line stretching from Virginia to New Jersey, aims to tap into the vast wind potential identified off the coast…[and] capitalize on the twin goals of the eastern states, to promote renewable energy sources and decrease their dependence on fossil fuels.

"Its backers say the proposal could be the 'spark' that paves the way for a new industry, one with the potential of thousands of new jobs along the East Coast…[I]t could reduce project costs for the proposed wind farms…by cutting transmission needs…The proposed undersea transmission backbone would be capable of carrying 6,000 megawatts of power, enough to serve 1.9 million homes…"

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"…Trans-Elect Development Corp., an independent transmission company…would build the backbone…There are many uncertainties…not least the $5 billion price tag, which probably ultimately would be borne by electric customers…[If] the project is underway by 2013 and operational by 2016…[that would be] before any offshore wind farms are operating, a fact that likely would lead to cheap coal power being carried by the transmission system from the South into the Northeast…

"…[Environmentalists] would consent to that tradeoff because of the potential of tapping renewable energy off the coast. The federal government projects a potential of 60,000 megawatts of offshore wind capacity along the eastern seaboard."

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"Without the backbone transmission system, the regional power grid would probably not be able to handle any new offshore wind projects after an initial 1,000 megawatts are deployed…[B]ackers, which include Google, Inc., are providing the initial investment for the Atlantic Wind Connection project developed by Trans-Elect Development Corp…

"Atlantic Wind Connection needs approval from various governmental and other agencies, including the Federal Energy Regulatory Commission. PJM Interconnection, which operates the regional power grid covering the East Coast out to Chicago, also must give its blessing…[T]he project developers anticipate their biggest hurdle will be getting PJM’s approval."