09.02.2012 – Julien D’Hollander
AGENDA
• What is the Atlantic Wind Connection Project
• Why invest in a US regulated transmission connection?
• Conclusion
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The Atlantic Wind Connection project
What is The Atlantic Wind Connection (AWC) project?• Transmission backbone of +/- 600Km on the US East Coast, from New Jersey to Virginia;
• State of the Art technologies Multi terminal HVDC (technologies of the E-highway);
• Enabling the connection of +/- 7.000MW offshore power and/or playing the role ofinterconnector for 2.000MW (reducing congestion);
• Total cost of 5 bil US$ split in 5 Segments with the first (A) from New Jersey to Delaware;
• Commissioning of the 5 segment is foreseen in 2020 while segment A is foreseen in 2017;
• Connected to PJM’s network;
• Incentives of the project granted by the federal US regulator FERC;
And Elia?• Elia has acquired 10% of the first segment of the Atlantic Wind Connection and 5% of the
four last segments;
• Elia has negotiated a long term consultant contract for the project;
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Shareholders
• Google: second world’s most valuable brand:a major investor in renewable energy
• Good Energies: investment fund in the renewable energy,part of COFRA Group (C&A)
• Marubeni: major conglomerate, industrial goods & services in a broadrange of sectors (import/export in textile, food, chemicals,energy, metals, finance, etc. )
• Atlantic Grid Investment: founders of the AWC project, owned by Transelectwhich is a transmission developer (12.000 miles line inmanagement or sold).
The Atlantic Wind Connection project
Atlantic Grid Investment sold its 10% to Elia for thefirst segment and 5% for the four last segments.
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09.02.2012 – Julien D’Hollander
AGENDA
• What is the Atlantic Wind Connection Project
• Why invest in a US regulated transmission connection?
• Conclusion
6
Why invest in a US regulated transmissionconnection?
EU electricity high voltage landscape will drastically change in the coming years
2010 2050
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Why invest in a US regulated transmissionconnection?Positioning the Elia Group as “the” leader for E-Highways in Europe
• EU target = 20% of renewables.
• ENTSO-E: RES capacity will increasefrom 288GW to more 500GW in 2020;
• German, Swiss, Italian change innuclear role leading to swifter RESimplementation;
• EC Priority corridors identifyingoffshore grids in North & Baltic sea’s.
* European Commission study: 2020 and beyond
09.02.2012 – Julien D’Hollander
The AWC project is an opportunity for Elia delivering a competitiveedge in terms of knowledge, experience and potential return
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Offshore wind is theonly local, accessible,renewable energyresource that isavailable at a largescale.
NREL study shows 64GW potential offshorewind from just the 4 Mid-Atlantic States.
Why invest in a US regulated transmissionconnection?
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Why AWC project is an opportunity in the US?
1. US renewable energy objectives
• The offshore wind strategic work plan of the Department of Energy (DOE) lays out thenational effort to achieve 54GW of offshore wind energy capacity by 2030 (interim 10GWby 2020);
• Mid Atlantic states have 15GW target in terms of installed renewable energy capacity;
• Today, 0 MW offshore installed capacity in the US;
• Expensive and lack of public acceptance to bring Green energy from Midwest;
• Several offshore wind projects are in development phase
• Several Coastal States highly need creating new jobs with green industry as target;
An opportunity – the AWC project
09.02.2012 – Julien D’Hollander
Connection up to 7.000MW offshore wind park on 12 substations
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Why AWC project is an opportunity in the US?2. Structural need for an interconnection
• Heavily congested area in the mid Atlantic zone (control area of PJM);• Planning issues (almost no land permits anymore) for electrical transmission
infrastructure;• Mid Atlantic zone needs to enforce its electrical reliability and stability;
3. Need of a front runner project• The renewable offshore energy is an all brand new activity in the US (federal
and states support);• No project equivalent in the US;• Necessity to offer guarantees and incentives for shareholders (American
Market)
An opportunity – the AWC project
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HVDC backbone with 2.000MW between 4 east coast states andguaranteeing a reliable and stable offshore wind energy integration
Attractive incentives granted by the FERC
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09.02.2012 – Julien D’Hollander
AGENDA
• What is the Atlantic Wind Connection Project
• Why invest in a US regulated transmission connection?
• Conclusion
13
Main Reasons for Elia to participate in the “Atlantic wind project”:
• develop Elia’s expertise in “partner’s projects” for future EU offshore grids;
• position the Elia group as a leader for future European Highway development;
• develop consultancy in the US and other countries.
Benefits for Elia’s German and Belgian customers and community• Elia will develop its know-how and expertise (technology, backbone project
development, purchasing, supply chain risks…) for its future European projects;
• Reinforce the TSO position on the supergrid;
• AWC = No costs and no risks for the customers and the community.
Conclusion
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