2 nd Annual “Ocean Energy for New England” Conference September 17, 2009 Chris Powicki

1. Offshore Renewables for Community Benefit 2nd Annual “Ocean Energy for New England” Conference September 17, 2009 Chris Powicki Principal, Water Energy & Ecology Information Services President, Cape & Islands Renewable Energy Collaborative * The information in this presentation may not reflect the opinions of other CIRenew participants.

2. “Beyond Cape Wind” Process & 2020 Goals Stakeholder Process • “Beyond Cape Wind” approach depolarizes discussion, finds common ground, and sets 2020 goals • EPRI-funded Cape & Islands Energy Technology StrategyProject defines RDD&D priorities Regional Goals for 2020 • Reduce direct fossil fuel use for heating and transport by 50%, relative to 2007 baseline • Develop renewable resources to meet 100% of net annual electricity needs

3. Cape & Islands Energy Technology Strategy Project – 2020 Budgets & Priorities • 2007 Inventory 2020 Budgets • Energy-Intensive Economy: 61 trillion Btu • Heavy Carbon Footprint: 3.9 million MT • High Energy Bill: $1.35 billion • 50% Heating - 10.4 TBtu in 2020 • Fix existing buildings, switch to lower-carbon sources • 50% Transport - 11.5 TBtu in 2020 • Accelerated transition to clean vehicles, including plug hybrids • 100% Green Power - No Limit in 2020 • Offshore wind is critical path for electricity independence, transport electrification Cash for Clunkers!

4. Cape & Islands Energy Technology Strategy Project –Offshore Wind • Cape Wind-size project could meet total 2020 needs if sales decline • Community-scale projects could meet needs of most individual towns • “Beyond Cape Wind” deployment required • Electrify transport: ~100 MW for 25% plug hybrids • Achieve state goal: 500 MW for “2000 by 2020” • Barriers to overcome • Community acceptance • Cost-competitiveness • Technology

5. Cape & Islands Energy Technology Strategy Project –Offshore Interconnection Limits ~20 MW * These are nominal limits, not accounting for average loads at interconnection sites. ~25 MW ~100 MW ~1000 MW ~750 MW ~425 MW ~450 MW ~450 MW ~1100 MW ~350 MW ~70 MW ~70 MW Base Map of Grid Infrastructure: NStar Grid Capacity Constraints Inform Deployment & Interconnection Options; Hyannis & Canal Substations Offer Largest Opportunities Without Major Circuit Upgrade

6. Cape & Islands Energy Technology Strategy Project –High-Level Community Benefits • Greening the Cape & Islands • Huge Progress Toward Independence – 70% • Major Cut in Carbon Emissions – 61% EPRI-CIRenew “Cape & Islands Technology Strategy Workshop” November 5, 2009

7. Community Benefit Considerations for Developing Offshore Renewables • “Visions of Success” (6/18 Forum) • Community-based siting, planning, construction, and operations • Creation of jobs and additional economic activity • Stabilization/reduction of electric rates through long-term contracts • Minimal or no adverse impacts on community character and cultural values • No adverse impacts on navigation and sustainable fishing • Protection of habitats and species • Positive effects on real estate market and recreational fishing • Revenues for addressing energy justice and environmental issues Talisman Energy

8. Integrating Community Benefits at Local, Regional, State & Federal Levels • Launch coordinated and proactive community planning processes • Empower stakeholders and the public • Participate on state-federal task force (MOMP-MMS) • Establish right of first refusal (MOMP) • Develop performance standards (MOMP and MMS multiple-factor auctions) • Secure fixed percentage of leasing and operating revenues (MOMP) Courtesy LANDSAT.ORG

9. Community Benefit Responses • Inform final MOMP and MOMP-MMS implementation • Consensus statement and legislative breakfast • Pursue planning and development of community-scale projects • Edgartown • Create infrastructure to support local ownership and power purchasing • Vineyard Clean Energy Cooperative • Integrate offshore renewables in economic development plans • Comprehensive Economic Development Strategy

10. Questions/Comments? Chris Powicki 774.487.4614 chrisp@weeinfo.com If you are interested in joining the CIRenew mail list, send a note to register@cirenew.org.