Bay State Wind 400 Megawatt Public Bid
Bay State Wind 400 Megawatt Public Bid
Bay State Wind 400 Megawatt Public Bid
Submitted to
Project benefits
$700 million Increasing and diversifying energy supply Enhances energy reliability and resilience
direct investment in the commonwealth.
• Dramatically advances the commonwealth’s use • Delivers power directly to high-demand areas in
of carbon-free renewable energy Massachusetts, relieving constraints on the grid
$8.75 million • Reduces electricity price spikes that hit communities • State-of-the art battery storage system to meet
to support the commonwealth’s and businesses hardest during peak winter usage peak consumer demand
cornerstone programs for low income
175,000 families. Consumer benefits Economy-wide benefits
is the number of cars that would need to
be removed from the road to equal the • Bay State Wind will generate over $700 million in
greenhouse gas reductions from Bay $30 million energy consumer savings over the project’s
State Wind. in lease payments, fees and taxes to needed economic shot in the arm for areas like New
lifetime
support local government functions over Bedford and Fall River
the operational lifespan. • These investments in turn get “recycled” through
the Massachusetts economy, generating another
$1 billion in added value
$150 million
estimated annual winter price
reduction benefits.
Over 850
annual jobs created during construction.
Over 7,900
direct and indirect jobs over the life of the project. 3 Bay State Wind 3
Why Bay State Wind?
Bay State Wind brings together a formidable partnership of two large energy
companies with one common goal, to ensure the high-quality delivery of the
power of offshore wind to Massachusetts.
In Eversource, you have more than a century of Our intention is simple, to guarantee that Massachusetts
local New England knowledge and unparalleled successfully delivers one of the largest offshore wind
experience building and operating electrical farms in the US and becomes the North American hub for
transmission systems. In Ørsted, you get unrivaled the offshore wind industry. We will do this by delivering
industry expertise and the experience of delivering for consumers, workers, businesses, the environment and
the most technologically advanced offshore wind the commonwealth. Our corporate goals are completely
farms at the lowest cost to consumers. aligned with the policy objectives of Massachusetts and
we welcome the responsibility in delivering them.
4 5
Bay State Wind 5
The Bay State Wind advantage
A partner for the long haul Financial capacity
Bay State Wind will construct, own Backed by Eversource and Ørsted,
and operate the offshore wind Bay State Wind has unbeatable
farm throughout its lifetime. We financial strength. In 2016,
are committed to Massachusetts combined assets exceeded $50
for the long haul and spreading billion and combined annual cash
the benefits of our projects into the flows totaled almost $4 billion.
local community. Crucially, the partnership will be
able to construct this offshore wind
Strength of supply chain farm without the need to bring in
Ørsted is leveraging its market- other financial partners.
leading global position and US
project pipeline to give suppliers Record of environmental
greater certainty in making stewardship
long-term decisions to invest in Ørsted began life as Danish Oil
the commonwealth and the US, and Natural Gas. Since that time,
resulting in a major boost to the the company has increasingly
local economy. moved into renewable energy
as the world and the company’s
Knowledge of New England’s values have changed. We recently
electrical system changed our name to Ørsted to
Bay State Wind will utilize the reflect our move towards 100%
deep knowledge of its partners
to deliver offshore wind power
renewable energy. Eversource is
focused on being a catalyst for
Case Study
Ørsted is in the process of
HFIG has sought to work with various
into the electrical system, serving clean energy development in New constructing the world’s largest other sea users. Of these, by far the
Massachusetts as efficiently England. It allocates 7 percent of offshore wind farm off the east
as possible. Ørsted’s extensive its annual revenues – or more than coast of England, an area with
most positive response has come
experience with undersea electricity $500 million annually – to energy an historic fishing industry similar from Ørsted, which has collaborated
transmission systems will ensure the efficiency programs for its nearly to Massachusetts. Ørsted has
maximum amount of clean energy 4 million customers. Its energy been dedicated to constructive with us on a study of the ecological
is delivered to shore. Eversource’s
sophisticated understanding of New
efficiency programs have been
consistently ranked number one in
engagement with the Holderness
Fishing Industry Group (HIFG) in the
effects of the construction and
England’s electrical grid will enable the country. local area. operation of the Westermost Rough
Bay State Wind’s clean energy
to be delivered to Massachusetts We are skilled at undertaking wind farm. The wind farm study is the
consumers efficiently and
effectively.
complex infrastructure projects
in sensitive locations and are the
first of its kind to be conducted
only developer with a marine anywhere in the world and is proving
biologist on staff who has a focus
on protection of the North Atlantic
to be of significant value in
Whale. assuaging fishermen’s concerns
about offshore wind development.
The proposal is to build a state-of-the-art, 400 MW installation using the very latest in offshore energy technology.
If built today, Bay State Wind would be the largest offshore wind farm in the US – a scale that the project team
behind Bay State Wind has the expertise and proven track record to deliver.
• Only this scale of development can genuinely deliver on the policy goal of Massachusetts to become the hub
of the offshore wind industry in North America
• A project of this scale delivers maximum impact for the supply chain, jobs and state and local tax revenues
• Helps to achieve genuine diversification of energy supply, helping to avoid price hikes for customers
8 9
Bay State Wind 9
Other community benefits
Bay State Wind is committed to spreading the benefit Collaborative research and initiatives
of its proposed ambitious partnership with the Conditional upon award, Bay State Wind will implement
Commonwealth of Massachusetts throughout the a portfolio of collaborative research and programmatic
communities it will serve. initiatives for the protection of New England's fisheries
and whale populations, including:
Skills and training
We have entered into a Memorandum of Understanding • Woods Hole Oceanography Institute
with the Massachusetts Maritime Academy to $500,000, multi-year grant for the development of
financially support scholarships, which offers students advanced whale detection systems
from under-represented communities the opportunity
of careers in the maritime industries. • New England Aquarium Right Whale Project
$500,000 grant, in collaboration with Massachusetts
We have also entered into a Memorandum of Lobstermen's Association and others, to improve the
Understanding with Bristol Community College right whale population status through prevention of
(conditioned upon award) to provide 1 million dollars gear entanglement
for the Bay State Wind Faculty Endowment that will
Project benefits
provide funding for five years for a professor that will • Whale Alert Project
focus on offshore wind training and curriculum. $25,000 annual grant for the refinement of the
Whale Alert System to prevent lethal ship strikes
Help with energy bills for low-income households
Increasing and diversifying energy supply Bay State Wind will leverage the expertise and financial Bay State Wind has struck landmark agreements with • Mitigation and Monitoring Advisory Panel
The 400 MW offshore wind farm proposed by strength of its partners, as well as the benefits of four of Massachusetts' leading Community Action Bay State Wind will develop a panel that
Bay State Wind will dramatically advance the economies of scale, to deliver its many benefits to Agencies to help low-income families with their energy includes right whale specialists, acousticians and
commonwealth’s utilization of carbon-free energy consumers at a materially lower price than any offshore bills. Bay State Wind will contribute up to $8.75 million environmental representation to provide input for a
resources. And by diversifying the commonwealth’s wind resource contracted in the US to date. over the life of the project to help to alleviate the mitigation and monitoring plan
energy supply, Bay State Wind will help dampen energy burden on low income households and make
volatile electricity prices that often-hit communities Clean energy benefits low-income homes more energy efficient. • Center for Coastal Studies
and businesses during the hard winter periods. Bay State Wind will realize the commonwealth’s clean $5,000 annual grant (up to 5 years) for the Marine
energy goals established by the landmark Act to Debris Program to promote marine waste reduction
Consumer benefits Promote Energy Diversity passed by the commonwealth and recycling initiatives
Electricity customers in Massachusetts benefit in two of Massachusetts in 2016, building the foundations for a
key ways: new industry that will grow and is expected to deliver • National Ocean Science Bowl/Blue Lobster Bowl
a significant portion of energy for the US in the future, $5,000 annual grant (up to 5 years) to support
• Savings on annual electricity bills replacing carbon based generation. We want Bay State the highly-regarded high school Ocean Science
• The most cost-effective offshore wind proposal Wind and Massachusetts to be the catalyst for change. Education Program and encourage students to
enter into the renewable energy field
Analysis conducted by Levitan and Associates for Bay Enhance electricity reliability
State Wind estimated that Massachusetts consumers By capturing New England’s powerful offshore wind
could save up to $150 million per year on their winter resource through the most advanced generation,
electricity bills through the Bay State Wind project. transmission and storage technologies, Bay State Wind
will deliver a steady stream of carbon-free power to
Massachusetts, significantly improving the reliability of
the commonwealth’s energy supply during peak
winter periods.
10 11
Bay State Wind Bay State Wind 11
Launching a new American industry
right here in Massachusetts
Through our detailed and ambitious ports and supply chain strategy, Bay State
Wind will deliver high skilled, high paying jobs to Massachusetts. With strong
vendor relationships stretching back over 20 years, we are perfectly placed to
deliver new jobs through suppliers across Massachusetts.
New Bedford
New Bedford is one of our preferred staging areas
for construction, as well as the operations and
maintenance base throughout the lifetime of the
wind farm.
Somerset
Bay State Wind’s offshore wind power will make
landfall at Somerset. Where the electricity transmission
cable comes onshore, Bay State Wind will build a new
electrical substation as well as an advanced technology
energy storage system. Local construction jobs will be
spurred during development as well as local property
tax revenues that will continue throughout the
project's life.
Massachusetts Boston
1
• Preferred site for the outfitting and painting of
transition pieces
2) Brayton Point
Northampton • Landfall of the export cable
• Onshore project substation
• Grid connection
• Deployment of the battery storage facility
• Potential site for manufacture of steel towers
Nantucket
Key
15 15
Bay State Wind
baystatewind.com
@BayStateWind
16
LONG-TERM CONTRACTS FOR A
400 MW OFFSHORE WIND ENERGY PROJECT
WITH AN
Prepared for
Submitted by
Portions of this Proposal contain confidential, proprietary, and/or commercially sensitive information, and
which accordingly have been redacted from the “Public Version” of this Proposal. Bay State Wind LLC
has submitted a Confidential/Privileged Version of this Proposal which includes the redacted information,
and which should be treated as a non-public record that is exempt from disclosure pursuant to
applicable laws or as expressly set forth in the Request for Proposals.
Contents Proposal of Bay State Wind LLC for Long-Term Contracts for Offshore Wind Energy Projects
Contents
1. CERTIFICATION, PROJECT AND PRICING DATA (CPPD FORM) .................. 1-1
2. EXECUTIVE SUMMARY OF THE PROPOSAL .................................................. 2-1
2.1 Bay State Wind – Bringing Home the Promise of Offshore Wind ....................... 2-2
2.2 Why Bay State Wind? ...................................................................................................... 2-4
2.2.1 Technical Acumen ............................................................................................. 2-7
2.2.2 Financial Capacity and Independence............................................................ 2-8
2.2.3 Strength of Supply Chain Relationships ........................................................ 2-9
2.2.4 Demonstrated Commitment to the Economic Future of the Region .. 2-9
2.2.5 Knowledge of New England’s Electric System .......................................... 2-10
2.2.6 Environmental Stewardship ........................................................................... 2-10
2.3 Project Summary............................................................................................................. 2-10
2.3.1 Generation ........................................................................................................ 2-11
2.3.2 Transmission ..................................................................................................... 2-11
2.3.3 Storage ............................................................................................................... 2-12
2.3.4 Construction and O&M Ports ...................................................................... 2-12
2.4 Consistency of the Bid with Statutory Review Criteria – The Bay State
Wind Advantage.............................................................................................................. 2-12
2.4.1 Enhanced Electricity Reliability ..................................................................... 2-13
2.4.2 Contribution to Reducing Winter Electricity Price Spikes .................... 2-14
2.4.3 Cost-Effectiveness to Electric Ratepayers ................................................. 2-14
2.4.4 Avoid Line Loss and Mitigate Transmission Costs .................................. 2-14
2.4.5 Project Viability; Reasonableness of Timeframe....................................... 2-15
2.4.6 Promote Energy Storage Systems................................................................ 2-16
2.4.7 Mitigate any Environmental Impacts............................................................ 2-16
2.4.8 Create and Foster Employment and Economic Development in the
Commonwealth................................................................................................ 2-17
2.4.9 Benefits to Low Income Ratepayers ........................................................... 2-20
2.5 Scale Matters.................................................................................................................... 2-20
2.6 Alternative Bids ............................................................................................................... 2-24
2.7 Project Entities and Affiliates ....................................................................................... 2-25
3. OPERATIONAL PARAMETERS....................................................................... 3-1
3.1 Maintenance Outage Requirements ............................................................................. 3-1
3.1.1 Foundations and Structures ............................................................................ 3-2
3.1.2 WTGs ................................................................................................................... 3-2
3.1.3 Offshore Transmission Assets (OSS, Offshore Export Cable and
Array Cables) ...................................................................................................... 3-3
3.1.4 OnSS ..................................................................................................................... 3-4
3.2 Operating Constraints..................................................................................................... 3-5
3.2.1 Technical Parameters........................................................................................ 3-5
3.2.2 Operating Constraints...................................................................................... 3-5
3.2.3 Offshore Accessibility, in Case of Assets Failure ....................................... 3-5
Tables
259BTable 2.1 Key Project Parameters ....................................................................................................... 2-2
260BTable 2.2 Summary of Proposed Generation and Proposed Assets in the Preferred
Option1 ................................................................................................................................. 2-11
261BTable 3.1 Indicative Planned Outage Overview per Main Asset .................................................. 3-1
26BTable 3.2 Benefits to the ISO-NE System of the Bay State Wind Project ................................. 3-7
263BTable 4.1 Measurement Heights Relative to MSL (m) .................................................................... 4-2
264BTable 4.2 Vortex Mesoscale Data Summary. .................................................................................... 4-4
........................................................ 4-9
26BTable 4.4 Long-term Correction Factors ....................................................................................... 4-10
................................................... 4-11
268BTable 4.6 Net Annual Energy Production (P50 and P90)............................................................ 4-14
............................................................................................. 4-15
270BTable 5.1 Projects Financed and Developed by Ørsted ................................................................. 5-7
271BTable 5.2 Projects Financed and Developed by Eversource ......................................................... 5-9
27BTable 5.3. Eversource Selected Consolidated Financial Data – Balance Sheet and Income
Statement ............................................................................................................................. 5-10
273BTable 5.4. Eversource Selected Consolidated Cash Flow Data – Funds from Operations
and Debt Issuances ............................................................................................................ 5-10
274BTable 5.5. Ørsted Selected Consolidated Financial Data – Balance Sheet and Income
Statement ............................................................................................................................. 5-10
275BTable 5.6. Ørsted Selected Consolidated Cash Flow Data – Funds from Operations and
Debt Issuances .................................................................................................................... 5-11
276BTable 5.7 Ørsted and Eversource Credit Ratings......................................................................... 5-12
27BTable 5.8 Depreciation Period by Asset Type............................................................................... 5-15
278BTable 7.1 Timeline of Completed Project Activities and Milestones .......................................... 7-2
279BTable 7.2 Projected Timeline for Receipt of Project Permits, Licenses, and
Environmental Assessments and/or Environmental Impact Statements ..................7-2
280BTable 7.3 Ørsted Experience in Permitting Offshore Windfarms ............................................... 7-5
281BTable 7.4 Eversource EIA Experience – Project Highlights ........................................................... 7-8
...................... 7-12
283BTable 7.6 Project Support Letters .................................................................................................... 7-26
284BTable 8.1 Summary of Proposed Generation and GLL Proposed Assets in the Preferred
Option ...................................................................................................................................... 8-3
285BTable 8.2 Key Foundation Details........................................................................................................ 8-4
..............8-6
.............................................................................................................. 8-8
................................................. 8-8
............................................. 8-8
290BTable 8.7 Electrical System Specifications/400 MW Case.............................................................. 8-9
.................................................................................... 8-9
........................................................................................................... 8-10
................................................................................ 8-13
294BTable 8.11 Same or Similar Equipment in Operation (based on Preferred Option) ................... 8-19
295BTable 9.1 Ongoing and Completed Work under the Geoscience and Permitting Work
Streams .................................................................................................................................... 9-5
................................................................................ 9-7
297BTable 10.1 Example of Preferred Vessel Types ............................................................................... 10-3
.................................................................. 10-8
29BTable 10.3 Deployment Activity Responsible Parties .................................................................. 10-23
30BTable 11.1 Ørsted’s Operated Sites as of 2017 .............................................................................. 11-8
....................................................................................................... 12-8
............................................................................................. 12-11
30BTable 12.3 Ørsted Project Experience ............................................................................................ 12-15
304BTable 12.4 Eversource Project Experience ..................................................................................... 12-17
305BTable 13.1 Project Anticipated Emissions ......................................................................................... 13-1
306BTable 14.1 Jobs Created by Indirect Employment Effects ............................................................. 14-5
307BTable 14.2 Average Labor Income of Indirect Employment Effects ........................................... 14-5
308BTable 14.3 State and Local Tax Revenue Direct, Indirect, and Total Effects ........................... 14-7
309BTable 14.4 Gross State Product Direct, Indirect, and Total Effects ........................................... 14-8
................................................................ 15-17
31BTable 15.2 OSS Specifications ............................................................................................................ 15-23
312BTable 15.3 OSS Components............................................................................................................. 15-28
Table 15.4 Onshore Components .................................................................................................... 15-29
............................................... 15-30
Figures
Figure 2.1 Global Offshore Wind Capacity ........................................................................................ 2-5
Figure 2.2 First Mover Advantage on WTG Technology................................................................ 2-6
............................................................................................................... 2-18
........................................................................................................ 2-21
................................ 3-3
................................................................................................................. 3-8
Figure 3.3 Up- and Downwards Regulation of Production.......................................................... 3-10
......................... 3-14
.................... 3-14
Figure 4.1 Air-Sea Interaction Tower. ................................................................................................. 4-3
Figure 4.2 The WindCube LiDAR at the Air-Sea Interaction Tower .......................................... 4-3
Figure 4.3 ASIT Lidar and Mesoscale Data Coverage ...................................................................... 4-4
Figure 4.4 Elevation Map of the Lease Area with the Wind Data Sources................................. 4-5
........................................................................................................................................ 4-6
................................. 4-7
..................................................................................................................................... 4-7
.........4-8
...................................................................................................................................... 4-8
......................................................................................... 4-9
.................................................................................... 4-10
...................................................................................... 4-11
.................................................................... 4-12
................................................................................ 4-16
................................................................................................. 5-2
............................................................................. 6-3
........................................................ 6-4
..................6-7
Figure 6.4 Local Zoning Map for the Town of Somerset ............................................................. 6-10
Figure 6.5 FEMA Flood Mapping, Brayton Point, Somerset, Massachusetts ............................ 6-12
........................................................................... 6-18
Figure 7.1 Projects where EIA or Major Permitting Work was carried out by Ørsted..........7-4
Figure 7.2 Bay State Wind in the News ........................................................................................... 7-24
Figure 8.1 Project and Transmission Authority Scope .................................................................... 8-4
Figure 8.2 MP and TP with Scour Protection Stone Bed ................................................................ 8-5
................................................................................... 8-5
..................................................................................... 8-6
................................................................................................................................... 8-7
............................................................ 8-10
............................................................................................................. 8-11
Figure 8.8 380 MW OSS (Gode Wind 01, Germany)................................................................... 8-12
................................................................................................. 9-2
.............................................................................. 10-1
Figure 10.2 Transportation and Installation of a MP (Westernmost Rough, 2014) ............... 10-11
Figure 10.3 Installation of a TP (Westernmost Rough, 2014) ..................................................... 10-11
................................................................... 10-12
Figure 10.5 Upending of Tower Section in Load Out Port (Gode Wind 2015)..................... 10-13
Figure 10.6 Towers Assembled and Ready at the Load Out Port (Gode Wind 2015) ........ 10-13
Figure 10.7 Towers Assembled and Ready for Loadout (Gode Wind 2015).......................... 10-14
Figure 10.8 Nacelles Pre-assembled and Ready at the Load Out Port (Gode Wind 2015) 10-15
Figure 10.9 Blades Ready at the Load Out Port (Gode Wind 2015) ........................................ 10-15
Figure 10.10 Loading towers onto installation vessel (Gode Wind 2015) ................................. 10-16
Figure 10.11 WTG Installation Vessel at Work - Installation of a WTG Blade (Borkum
Riffgrund Wind Farm 1 2014) ....................................................................................... 10-17
Figure 10.12 DP2 Vessel and CTV (Gode Wind 01+02 2015) ..................................................... 10-18
Figure 10.13 Typical Jacket Transported Horizontally .................................................................... 10-20
........................................................................................................................... 11-2
................................................................................................................... 11-3
....................................................................................... 11-7
........................................................................... 12-3
Figure 12.2 Total Constructed Capacity by Ørsted (MW) ........................................................... 12-4
Figure 12.3 Ørsted Organization with Number of FTE Employees in Each Unit (as per
Dec. 2016)............................................................................................................................ 12-7
.......................................................................................................... 15-4
.................................................................................................................. 15-9
............................................................................................ 15-13
15-21
........................................................................................................ 15-22
Figure 15.6 OSS Foundation ................................................................................................................ 15-24
Figure 15.7 OSS Topside with Deck Configuration....................................................................... 15-24
Figure 15.8 Typical Ørsted-designed Topside with a 4-leg Jacket (Westermost Rough
Windfarm, United Kingdom) ......................................................................................... 15-25
...................................................................................................................... 15-26
Figure 15.10 Typical Trench/Conduit Configuration – Illustrative ............................................... 15-27
Attachments
Attachment 1-1
Attachment 2-1
Attachment 2-2
Attachment 2-3
Attachment 3-1
Attachment 3-2
Attachment 4-1
Attachment 4-2 Site Assessment Plan (SAP)
Attachment 4-3 SAP Approval Letter from BOEM
Attachment 4-4
Attachment 4-5
Attachment 4-6
Attachment 4-7
Attachment 5-1
Attachment 5-2 DONG Energy Annual Report 2014
Attachment 5-3 DONG Energy Annual Report 2015
Attachment 5-4 DONG Energy Annual Report 2016
Attachment 5-5 Eversource 2014 Financial Report
Attachment 5-6 Eversource 2015 Financial Report
Attachment 5-7 Eversource 2016 Financial Report
Attachment 5-8
Attachment 5-9
Attachment 5-10
Attachment 6-1
Attachment 7-3
Attachment 7-4
Attachment 7-5
Attachment 7-6 Project Support Letters
Attachment 7-7
Attachment 7-8
Attachment 7-9
Attachment 7-10 Wood's Hole Oceanographic Institution Letter of Support
Attachment 8-1
Attachment 8-2
Attachment 8-3
Attachment 8-4
Attachment 9-1
Attachment 9-2
Attachment 10-1
Attachment 10-2
Attachment 10-3
Attachment 12-1
Attachment 14-1
Attachment 14-2
Attachment 15-1
Attachment 15-2
Attachment 16-1
Attachment 17-1
Attachment 17-2
TP transition piece
TSS Traffic Separation Scheme
USACE U.S. Army Corps of Engineers
USCG U.S. Coast Guard
USEPA U.S. Environmental Protection Agency
WAP Weatherization Assistance Program
WHOI Woods Hole Oceanographic Institute
WTG wind turbine generator
XLPE cross-linked polyethylene
Confidentiality Statement
Portions of this Proposal contain confidential, proprietary, and/or commercially sensitive
information, and which accordingly have been redacted from the “Public Version” of this
Proposal. Bay State Wind LLC has submitted a Confidential/Privileged Version of this
Proposal which includes the redacted information, and which should be treated as a non-
public record that is exempt from disclosure to the maximum extent permissible under
applicable laws and as expressly set forth in the Request for Proposals.
Bay State Wind LLC (Bay State Wind, the Bidder), a 50/50 joint venture between Ørsted
North America Inc. (Ørsted NA) and Eversource Investment, LLC (ESI) (collectively “Owners”)1,
is proud to propose the Bay State Wind Project (the Project), a first-of-its kind U.S. utility-scale
offshore wind farm located approximately 25 miles (40 kilometers [km]) off the south coast
of Massachusetts. The Project will provide 400 megawatts (MW) of clean, reliable offshore
wind energy to the Commonwealth of Massachusetts at the lowest possible cost, maximizing
long-term economic and environmental benefits.
This Bid consists of state-of-the-art wind turbine generators (WTG), associated inter-array
cabling, an onshore substation (OnSS) and offshore substation (OSS), export cable, a battery
energy storage system, and onshore works for grid connection to the ISO New England (ISO-
NE) electric grid. The individual wind turbine size, total number of WTGs, and other aspects of
the Project, may change in order to reflect the latest developments in technology and to
optimize Project cost and performance prior to final permitting and construction.
The Project includes optionality for either a generator lead line (GLL) or expandable
transmission system (ETS), as required in Section 2.2.1.3 of the RFP, the latter of which
could provide up to 1,600 MW of
transmission capacity. This Bid presents the ETS solution.
The Project can offer this clean power to the Commonwealth at
for power and RECs.
For the ETS included in this Bid, the Bidder proposes a FERC
tariff.
Key Project parameters are detailed in Table 2.1.
1 Ørsted NA is an indirect wholly-owned subsidiary of Ørsted (Ørsted). ESI is an indirect wholly-owned subsidiary of
Table 2.1
259B Key Project Parameters
Project Size 400 MW
Location (Site Control) Bureau of Ocean Management (BOEM) Lease OCS-A 0500
Generator Lead 1 X 400 MW OSS with kilovolt (kV) subsea cable
Storage System 30 MW/60 megawatt-hour (MWh) (2 hour discharge)
Products Offered Energy and Renewable Energy Credits
Point of Interconnection (POI) Brayton Point, Massachusetts
Price (power and RECs)
Term 20 years;
Qualified Capacity (expected) – Summer
Qualified Capacity (expected) – Winter
O&M and Construction Base New Bedford, Massachusetts
Commercial Operation
2.1 Bay State Wind – Bringing Home the Promise of Offshore Wind
Ørsted and Eversource are proud to Key Project Benefits
propose the Bay State Wind Project • in net lifetime economic benefits
(the Project), a first-of-its kind U.S. • million short tons of greenhouse gas emissions
utility-scale offshore wind farm avoided over the 20-year contract period
located approximately 25 miles (40 • $158 million annual reduction in winter prices
km) off the south coast of • 850 construction jobs and permanent O&M jobs
Massachusetts. The Project will • 7,939 indirect jobs created
provide 400 MW of clean, reliable • Over $300 million in total direct investment in the
offshore wind energy to the Commonwealth
Commonwealth of Massachusetts at • $8.7 in total contributions to low income programs
the lowest possible cost, maximizing long-term economic and environmental benefits. The
Bidder is a 50/50 joint venture that brings together world-leading offshore wind generation
and transmission development, operational experience and regional knowledge of electricity
markets. The resulting collaboration will dependably deliver offshore wind to the
Massachusetts market at the lowest cost to consumers.
Entering into a long-term contract with the Bidder’s project is a cost-effective strategy for the
Massachusetts Electric Distribution Companies (EDCs) and the Commonwealth to pursue.
The Project will:
Enhance electric reliability by capturing New England’s powerful and consistent
offshore wind resource through the most advanced generation and transmission
technology, providing much needed electricity supply directly into the constrained
Southern Massachusetts and Rhode Island (SEMA/RI) load zone.
Contribute to reductions in winter price spikes by providing additional energy and
capacity where and when the resource is needed most through industry-leading high
load factor generation integrated with a significant storage system that will deliver
during periods of highest demand.
Ørsted’s leadership in global offshore wind development is unparalleled with nearly three-
times the installed capacity as its closest competitors. Over the past 25 years, Ørsted has
constructed 3.8 gigawatts (GW) of offshore wind capacity, with another 5 GW under
construction taking its operation base to 8.8 GW of capacity by 2022 (Figure 2.1). The
lessons learned over this 25+ year evolution culminate in this Project, reflecting the very best
in offshore wind design, engineering, finance and construction, and adapting these best
practices to the U.S. East Coast market.
Ørsted brings to the Project many “firsts” in the offshore wind industry, including but not
limited to:
Pioneered the industry with the development of the first-ever offshore windfarm
(Vindeby, 1991);
Successfully developed the first commercial-scale offshore windfarm in the world
(Horns Rev I, 2003);
Designed and constructed the largest windfarm in operation today (London Array,
2013);
Competitively awarded a power purchase agreement (PPA) for what will be the largest
windfarm in the world once constructed (Hornsea I and II, 2,600 MW);
Achieved a significant cost milestone as the first developer to win a tender with a
zero-subsidy bid (Germany);
First developer to effectively decommission an operating offshore windfarm and
restore seabed to former conditions (Vindeby);
First developer to integrate battery storage as part of an offshore wind farm (Burbo
Bank Extension);
and
Ørsted’s better understanding of life-cycle cost and risk, gained from almost three decades of
offshore wind experience, allows capture of the first-mover advantage on key technology, as
demonstrated in Figure 2.2.
Ørsted’s “develop, build, own, and operate model” means the Bidder is vested in the long-
term success of our wind farms. Ørsted’s track record demonstrates that it is careful not to
overpromise; and always live up to our commitments. Ørsted remains responsible for
delivering on its obligations over the life of the asset. Unlike other developers, whose
interests may be more short-term, our financial success is inextricably linked to the
performance of generation assets over their useful life. This means that Ørsted’s interests
are well-aligned with those of utilities and the electricity consumers Ørsted serves.
Eversource, a Fortune 500 company based in Boston and Hartford, has been serving
Massachusetts customers for over 100 years. During that time, Eversource has continuously
supported both the energy policy and goals outlined by the Commonwealth, in addition to the
growth of the 191 communities that it serves. Eversource, which is only one of four North
American energy companies recognized as an Environmental, Social, and Governance (ESG)
leader, is New England's premier energy company and transmission developer. Eversource
brings to bear its deep commitment of supporting the Commonwealth's renewable energy
goals, and has utilized its considerable experience in doing this to interconnect renewable
generation sources, such as wind power, into the electrical system. As New England's
premier transmission developer, Eversource is also able to interconnect resources in the
most reliable and cost efficient manner possible, thereby sustaining both the integrity of the
transmission system, while also alleviating costs for all customers. Finally, Eversource is
recognized as the leader in providing top tier reliability, with the utmost focus on safety, to all
customers within the New England region.
Together, Ørsted and Eversource bring a winning combination to the development of the
U.S.’s first utility-scale offshore windfarm. These strengths are encapsulated in the following
core competencies:
Technical acumen (engineering, procurement and project management);
Financial capacity and independence;
Their financial strength and proven track record have been, and will continue to be, critical in
enabling them to fund project construction and operation, and, where desirable, to attract
capital from investors on terms more favorable than less financially robust developers could
obtain. Their financial resilience will insulate the development, construction and operation of
Bay State Wind from the inevitable ups-and-downs of the business cycle.
The Bidder intends to finance the development, construction and operation of the Project
exclusively with capital from its Owners. Doing so eliminates the risk that project-level
financing imposes on projects of this type, ensuring that financing issues will not delay
project construction or otherwise impede the delivery of clean energy to Massachusetts
ratepayers. The Owners will secure the funds for their respective capital contributions to the
Project through a combination of internally generated cash flows and capital markets
issuances at the publicly traded parent level.
Eversource and Ørsted have the financial wherewithal and project-development experience
to adopt a strategy that will maximize the benefit of the federal investment tax credit (ITC).
Specifically, they can fully utilize the ITC without bringing in other tax equity partners (even for
an 800-MW project). In contrast, developers that are less financially robust, have less
experience, or are subject to constraints imposed by third-party tax-equity investors will face
considerably greater challenges in maximizing the value derived from the ITC, especially in
light of the federal tax reforms under consideration by Congress. By virtue of the financial
strength and proven track record that Eversource and Ørsted possess, the Project is uniquely
positioned to qualify for the ITC on an accelerated schedule that will maximize value, and to
apply that value efficiently, passing resulting cost reductions on to Massachusetts
ratepayers.
and 3) battery storage system. These are summarized in Table 2.2 and described in turn.
Additionally, the Bidder summarizes here our construction plan and use of regional port
facilities.
Table 2.2
260B Summary of Proposed Generation and Proposed Assets in the Preferred Option1
Generation
WTG
Foundations Monopile/Transition Piece (MP/TP)
Transmission & Onshore Facilities
Array cable kV cables
Export cable kV cable
OSS
OnSS Traditional open air solution
Battery storage system 30 MW/60 MWh
1
The Preferred Option represents the Bidder’s current understanding of the generation, transmission
and other facilities necessary to provide 400 MW of offshore wind energy generation capacity to the
EDCs. As discussed elsewhere in this Section 2, the Bidder will continue to review and may modify the
Preferred Option to ensure that it provides the most advantageous and cost-effective solution to the
Commonwealth, the EDCs, and the ratepayers.
2.3.1 Generation
The 400-MW Project will be situated within the boundaries of Bay State Wind’s federal Lease
Area, located approximately 25 miles (40 km) off the southern coast of Massachusetts. The
Preferred Option’s generation solution will consist of the
WTG with a m rotor diameter. This WTG is a
WTG platform,
. As discussed in
Section 8, Ørsted is in discussion with WTG manufacturers who can provide
viable generation solutions. Final selection will be made post-award. The Bid will consist of
, each of which will use conventional MP technology to fix the WTG to the seabed.
This foundation technology has been used by Ørsted in a safe, economical, and
environmentally sound way in over 1,000 prior applications and is entirely suitable for
conditions found in near-shore conditions of the Project site.
2.3.2 Transmission
The Bidder explored several alternatives for an expandable, open access, non-discriminatory
offshore transmission solution. While several permutations were explored, these ultimately
coalesced into two options that differ based on size and timing of the build-out. These two
options include
Ultimately, the
approach was adopted as the most cost-effective and prudent choice given the uncertainties
surrounding the size and location of future offshore wind development.
The Bidder’s proposed ETS, which is the is a modular and truly
expandable design.
The OnSS will be designed to accept export cables of capacity to receive the full
1,600 MW of offshore wind generation. The ETS will be equipped with
to provide prudent redundancy and reliability benefits to the system
and to offshore generators. Once fully constructed, the ETS will connect to the onshore grid
at the Brayton Point 345-kV Substation or the Bourne 115-kV Substation.
2.3.3 Storage
The Preferred Option includes the deployment of a 30-MW/60-MWh battery storage solution,
located at the OnSS at Brayton Point. The storage system will be operated in load-following
mode, charging with power from the offshore wind farm in off-peak hours and discharging
during peak hours to provide additional system reliability and peak price mitigation. Under
the Preferred Option, the supplier is ; however, final selection will
be made post-award.
2.4 Consistency of the Bid with Statutory Review Criteria – The Bay State
Wind Advantage
Massachusetts’ landmark clean energy legislation, An Act to Promote Energy Diversity, sets
out the important public policy objectives that are behind the state’s offshore wind
procurement strategy. This section considers nine criteria for bid selection that are indicative
of the diverse set of grid-related, economic
Bay State Wind – By the Numbers
and environmental priorities that drive this
and future offshore wind procurements in • 400 MW – Nameplate capacity
the Commonwealth. The following • – Average annual capacity factor
discussion highlights how this Bid achieves • – Availability
- and indeed excels - in bringing these • – Expected annual yield (GWh)
benefits to the Massachusetts ratepayer • MW – Winter Qualified Capacity (expected)
and citizens at large. • MW – Summer Qualified Capacity (expected)
Optimized windfarm layout: Using proprietary tools that integrate skills and
knowledge from across Ørsted’s significant offshore wind organization, the Bidder is
able to optimize the Project’s site layout for aerodynamics reducing wake loss and
increasing overall generation. The Bidder’s advanced optimization tools also reduce
CAPEX by factoring in foundation and array cable costs to determine the optimal
position for each WTG.
Static Synchronous Compensator (STATCOM): The provision of a STATCOM provides
greater voltage stability for ISO-NE due to its fast reactive power response. This
significantly improves the stability of the system and aids ISO-NE in avoiding
cascaded trips and partial blackouts.
The Bidder is committed to qualifying the Project’s capacity in the ISO-NE Forward Capacity
Market (FCM).
The lifetime net ratepayer benefit of the Bay State Wind Project is conservatively estimated to be
more than
2.4.4 Avoid Line Loss and Mitigate Transmission Costs
One of the primary advantages of the Project is that it will tie directly into the SEMA/RI
control area at Brayton Point, significantly minimizing line losses associated with
transmission from projects bringing power into Massachusetts from neighboring control
areas. As noted previously, preliminary analysis from ISO-NE suggests that the Project can
safely interconnect the expected capacity at this point with no significant upgrades. More
importantly, the addition of 400 MW of clean and renewable generation will help defer or
displace expensive transmission associated with terrestrial wind projects projected to serve
Massachusetts’ Class I RPS program.
Additionally, the Bidder’s approach is to use state-of-the-art transmission technology
to minimize line losses to the maximum extent possible.
From a ratepayer perspective, our pricing proposal holds customers harmless from
transmission cost overruns, however unlikely. The cost of the GLL is included in our fully
bundled PPA price, providing the Bidder with a strong incentive to control costs and maximize
delivered throughput. Similarly, under our ETS solution, the proposed formula rate tariff
which limits ratepayer exposure to
Deviating from our normal practice by taking early investment decisions on some
long lead-time items ahead of securing necessary construction permits;
Entering into detailed discussions resulting in letters of support with builders of Jones
Act-compliant heavy lift installation and transportation vessels; and
Front-loading our site survey activities as much as possible, being the first to mobilize
vessels for the geophysical and geotechnical survey campaign to document seabed
conditions.
By the same token, the Bidder strives to make commitments that are responsible and well-
informed. Our proposed COD of strikes the right balance between an optimized
engineering, procurement, permitting and construction schedule and the best interests of
the Commonwealth.
As documented in Section 7, our extensive team of internal and external subject matter
experts, in consultation with outside advisory groups, is transferring the accumulated
experience and lessons learned from our state-of-the-art offshore environmental
minimization and mitigation program to these shores. This extends both to the site lease
area and export cable route – Ørsted has successfully laid cable in environmentally sensitive
ecosystems throughout Northern Europe and the Bidder will parlay that expertise to ensure
no harm to New England’s vital coastal resource. Eversource’s experience in successfully
navigating the permitting process for a number of complex infrastructure projects is also
being brought to bear for our onshore activities.
• Woods Hole Oceanography Institute (WHOI) - $500,000, multi-year grant fund for the development of advanced whale
detection systems
• New England Aquarium Right Whale Project (in collaboration with Lobster Foundation of MA) - $500,000 grant fund
(50/50 split) to improve the North American Right Whale population status through prevention of gear entanglement.
• Whale Alert Project - $25,000 annual grant for the refinement of the Whale Alert System to prevent lethal ship strikes.
• Bay State Wind will develop a Mitigation and Monitoring Advisory Panel that includes right whale specialists,
acousticians, and environmental (E-NGO) representation to provide input for a mitigation and monitoring plan.
• Center for Coastal Studies (CCS) – grant of $5,000/year (up to 5 years) for the Marine Debris Program to promote
marine waste reduction, removal and recycling initiatives
• National Ocean Science Bowl/Blue Lobster Bowl - grant of $5,000/year (up to 5 years) to support the highly regarded
high school ocean science education program and encourage students to enter into the renewable energy field.
2.4.8 Create and Foster Employment and Economic Development in the Commonwealth
For the Bidder, the task at hand is not simply to build a project, it is to build a U.S.-based
offshore wind industry, with significant supply chain investments in Massachusetts. The
Bidder aims to deliver on the promise of high skilled, high paying jobs that is part and parcel
of building this new U.S.-based industry with a multitude of local suppliers. And the team is
uniquely positioned to do just that. Our strong vendor relationships, built in some cases
across two decades of collaboration, gives us the credibility to get our suppliers to commit to
our vision of a vibrant and sustainable U.S. market - and to make concrete investment
decisions on that basis. As Figure 2.3 illustrates, while much of this activity is naturally
concentrated along Massachusetts’ coastal communities, the opportunity to tap into the
Commonwealth’s solid base of advanced manufacturing and high-tech service industries
enables us to also involve inland communities statewide in this green industry.
Local economic development highlights of the Project include:
An estimated 850 construction job-years.
An estimated 7,939 indirect jobs.
̶ Participating in BCC’s K-12 initiative to train middle school and high school science teachers
on developing an offshore wind energy curriculum
̶ Hosting BCC student interns
̶ Serving as a guest lecturer in BCC’s offshore wind courses
Exploring a collaboration with BCC and other industry stakeholders to develop an
offshore wind training center in New Bedford, Massachusetts. In addition, the MOU
contains a pledge of $1 million contingent upon a PPA to use for various initiatives
such as; scholarships, classroom needs, training programs, infrastructure projects as
they relate to a new campus location.
The numbers speak for themselves. We believe we have put forward a bid price that is
compelling. Should the Commonwealth want to get the lowest possible price for electricity
consumers with the greatest economic benefits in terms of jobs and economic development
opportunities, a large scale project is the way to go. It would further put Massachusetts
ahead of other states competing for their share of offshore wind economic development.
As the Evaluation Team compares projects of varying sizes, the Bidder wants to underscore
two points.
First, purchasing a significantly lower cost large-scale project today is demonstrably in the
public interest. As the Evaluation Team considers the possibility of future cost reductions, a
level playing field analysis will consider the weighted average price of two sequential 400-
MW bids against today’s price for an 800-MW bid. If the 800-MW bid is percent lower
than a 400-MW bid in this solicitation, then the Evaluation Team should understand that the
next solicitation will have to produce a 400-MW bid that is percent lower to match on
price (Figure 2.4). In addition, 800 MW will attract supply chain investments earlier
compared to potentially two 400-MW projects with different configurations. Although we
firmly believe that the U.S. offshore wind industry still has a distance to travel down the cost
curve, we do not see such a dramatic cost decline as feasible in the very short-term.
Second, we encourage
the Evaluation Team to
also consider the window
of opportunity presented
by the Federal
Investment Tax Credit
(ITC). The ITC provides a
five-year declining
federal incentive for the
development of offshore
wind. Project that
commence construction
in 2018 will qualify for an
18 percent tax credit
while those starting in
2019, the final year of
the ITC, will only qualify for 12 percent. Thereafter, unless extended by Congress, the Federal
ITC will go to 0 percent. Every dollar that is realized from the ITC is one less dollar that would
have to be incurred by Massachusetts ratepayers. All else being equal, should
Massachusetts defer procurement it could otherwise make today it will also lose out on this
important federal benefit.
In developing this Bid, the Bidder recognizes the burgeoning interest that has been shown
across the Northeast region in offshore wind generation. In addition to future solicitations
under the Energy Diversity Act, several states have followed Massachusetts’ lead by
announcing their own commitments to the development of offshore wind generation
resources through procurement processes. This includes:
Connecticut: The Connecticut Department of Energy and Environmental Protection
(DEEP) issued a draft RFP on December 15, 2017 for, among other things, offshore wind
wind development enumerated above, including but not limited to net economic
benefits, winter price suppression effects, enhanced reliability, and early and greater
achievement of greenhouse gas reduction targets. Moreover, the 800 MW bid
enhances Massachusetts competitive position relative to other states in the quest for
local supply chain development.
To facilitate the Evaluation Team’s review of these separate bid cases and how they differ
from one another, the Bidder has developed a matrix highlighting those sections of the bid
that materially differ from one another. This matrix can be found at Attachment 2-3.
9.6 %
12.4 %
average hourly energy average hourly energy
delivery increase in delivery increase in
summer peak hours with winter peak hours with
battery time-shifting battery time-shifting
3. OPERATIONAL PARAMETERS
In this section, the Bidder outlines the maintenance outage requirements, operating
constraints, and reliability benefits of the Bay State Wind Project’s Preferred Option. The
Preferred Option Project has been designed with redundant equipment, which will minimize
maintenance requirements, disruptions in service, and overall risks to the utility grid, while
maximizing the predictability, reliability, and ancillary benefits of the generating and energy
storage assets. For example, the Project includes the installation of two transformers working
in parallel, meaning that if one is out of operation, the Project will still be able to produce and
deliver energy. This level of optimization is possible due to the deep well of experience and
expertise that the Bidder draws from with respect to its owners Ørsted and Eversource.
The Bidder will develop and implement an overall maintenance plan that is based on the
specific equipment and features of the Project. This plan will detail the activities and
frequency of the surveys, inspections, and regular maintenance to be performed, including
scheduled outage events. All of these activities will be conducted according to industry best
practices and the experience of the Bidder’s Owners, to preserve asset integrity, extend its
lifetime as far as possible, and minimize any outages, as outlined in Table 3.1 below.
Table 3.1
261B Indicative Planned Outage Overview per Main Asset
Main System Sub-systems Scheduled Outage Extent of Outage
WTG Maintenance WTG including tower
Program
Balance of Plant, Structures (Foundations
including OSS and OSS Topside)
Maintenance HV Cables
Program
HV Systems on OSS
3.1.2 WTGs
The Preferred Option is the
It is expected that the WTG OEM Service Provider will directly support the Project for up to
years during the operation ramp-up. The WTGs will be subject to planned maintenance,
including general inspection, sampling, testing, and replacement. To improve operability and
performance control, the WTGs will be continuously remotely monitored. Uninterrupted
monitoring allows for immediate identification and response to any issues that may arise. In
case of a failure, a troubleshooting team will service and repair the affected WTG.
This offshore wind industry practice is based on the manufacturer’s requirements as it is a
precondition for maintaining the initial warranty. By employing components with higher
reliability and increasing equipment condition monitoring, the Bidder aims to minimize the
amount of service hours required during the annual service, or even reduce service to every
second year or more. This will lead to a significant decrease of outages, maintenance cost
and resources, and an increase in PBA.
3.1.3 Offshore Transmission Assets (OSS, Offshore Export Cable and Array Cables)
The offshore transmission assets will be designed for the highest possible time availability
target. To realize this target, the Bidder intends to employ a
approach for inspections of offshore transmission assets.
3.1.4 OnSS
The Bidder will monitor the OnSS both remotely and locally on a continuous basis. The
equipment in the OnSS will be configured with a condition monitoring system that will sound
an alarm upon detecting equipment issues. In addition, the substation will be inspected
every month for anomalies with the equipment operation. The Bidder will put in place an
established and documented program for the maintenance of all equipment critical to the
reliable operation of the station. Maintenance programs will conform to the equipment
manufacturer’s recommendations.
In addition, a reliability maintenance program will be implemented. Preventive maintenance
will be performed to ensure reliability of the substation and line equipment, and planned
outages will be conducted in accordance with the NERC/NPCC Standard-TOP-003-1. This
equipment will be maintained in accordance with the interconnection agreement. In addition,
all protective system maintenance will be performed in accordance with the NPCC PRC 005-
2 standard. Substation equipment will be maintained by qualified personnel in accordance
with applicable industry standards and good utility practice to provide maximum operating
performance and reliability.
All major equipment will be under long-term warranty. During the warranty period, the
manufacturers will provide the necessary services to maintain or replace the equipment. The
manufacturers will also be responsible for the cost of the equipment as well as any cost
incurred by the Bidder to support the repair and/or replacement. Outside contractors will be
Operating constraints for the Project are primarily related to technical parameters defined by
the equipment OEMs, which can be categorized by wind resources and weather conditions
(see Section 4.1 for more detailed information), grid outages determined by ISO-NE, and HSE
issues.
The individual assets will be operated and maintained in accordance with the Bidder’s and
subcontractors’ safety policies, user manuals, and regulations.
increase operational cost due to the monitoring activities and overall compliance with the
requirements.
Operating constraints and restrictions have been accounted for in the availability and Annual
Energy Production (AEP) assessment and do not seem to be problematic.
3.3 Reliability
Describe how the proposal would provide enhanced electricity reliability to Massachusetts, including
its impact on transmission constraints.
2 Comments of Massachusetts Department of Energy Resource in Docket DPU 15-37, Pg. 11.
The Project’s capabilities for enhancing electricity reliability in the Commonwealth are further
outlined in Table 3.2 and Sections 3.3.1 through 3.3.7 below. These capabilities will improve
the reliability and efficiency of the ISO-NE system.
Table 3.2
26B Benefits to the ISO-NE System of the Bay State Wind Project
Capability System Stability System Balancing Network Optimization
Sub-second speed of
frequency response
Delivery of reactive power
and voltage support
Fast ramp-down/de-load
Fast ramp-up at all
operating ranges
STATCOM to dampen
harmonic distortions
Automated response in
system events
Real-time “available
power estimation”
3.3.1 Avoiding Transmission Constraints
As described in Section 6, the Project proposes to interconnect with the ISO-NE system at
Brayton Point, in proximity to the main load centers in the region. By doing so, the Project will
avoid key transmission constraints that would increase the cost of delivering energy
produced by the Project to customers located within these load centers.
The Project provides more consistent output during the winter months, enhancing reliability,
as demonstrated by the Project’s capacity factors which approximate percent during
these months. To the extent offshore wind displaces gas-fired generation during the peak
hours of winter months and reduces the fuel demand of natural gas-fired generators, the
Project will aid pipeline congestion, exerting downward pressure on delivered gas costs, i.e.,
the primary driver of wholesale energy prices in New England. The Bidder’s winter season
production could also supplant the cost and emissions of either oil-fueled or dual-fueled
power plants that burn oil when natural gas is unavailable or uneconomic. See Figure 3.2
below, simulating the effect that a 400-MW offshore wind facility connecting into SEMA/RI
could have had in displacing thermal generation during the 2014 Polar Vortex event.
To assess the effect of the Project on winter price spikes, the Bidder commissioned LAI to
perform an estimate of the effect of the Project on future energy prices. The full report,
“Contribution to Reducing Winter Price Spikes by the Bay State Wind Project”, can be found
in Attachment 3-1.
The price reduction impacts are reported as a reduction of the total cost to load
Massachusetts customers and as Massachusetts load-weighted, average price impact.
All prices reported in this report are in real 2016 dollars. Key results of the analyses are
summarized below.
With respect to the incremental RE scenario, the winter price reduction in Massachusetts is
greatest for the highest decile (10th) of Locational Marginal Prices, about $4.35 to
$4.55/MWh, depending on the winter season definition. The top decile includes price spikes
as well as other high prices. For the lower deciles, the absolute price reduction is less, but
the percentage reduction is greater than for the top decile.
Based on data for November 2010 through October 2014, the annual price reduction over
all hours ascribable to incremental offshore wind averages approximately $158 million per
year for EDCs in the Commonwealth.
Note: At wind speeds of 8m/s and above. Based on meso-scale data from the four nodes closest to the project site
wind speeds were at 8m/s and above 63 percent of the time between 2006 and 2016.
Energy Cost-to-Load – The annual sum of the hourly products of EDC loads and
corresponding zonal market energy prices (LMPs).
EDC Share of System-wide Production Cost – The annual sum of hourly variable
production costs for all New England Generators, multiplied by a factor representing
the Massachusetts EDC share of total load. In certain procurements, this measure
has been used in a weighted sum with Energy Cost-to-Load in order to assess the
impact on customers, in general, and Massachusetts residents, in particular. The
EDC share of system-wide production cost tends to be a more robust indicator than
Cost-to-Load both for an individual contract as well as for a portfolio of contracts.
Capacity Cost-to-Load – The change in annual FCM charges assigned to
Massachusetts EDCs attributable to the award of a given project or portfolio. The
charges could be affected by the addition of the awarded project as a capacity
resource and/or by changes in energy prices affecting the FCM clearing price.
Transmission Cost – The deferral or avoidance of transmission costs to move
renewable energy from Northern New England to Massachusetts load centers.
Although not directly counted in the cost-effectiveness test, these results are amplified when
taking into account the 850 direct construction jobs; around permanent O&M jobs and
7,939 indirect jobs and significant resultant economic activity from the Bidder’s material
long-term investment in the Commonwealth. These numbers also do not capture the value of
avoided emissions, including greenhouse gas (GHG) emission reductions mandated under
the GWSA.
storage solutions
around the world including the recently completed
is committed to advancing
energy storage technology through ongoing partnerships with other Massachusetts energy
storage technology development vendors and our region’s leading academic institutions.5
Furthermore, as this
would be the first time a large battery storage system is deployed alongside a large offshore
wind farm in the U.S., the Project would secure a unique competence for
As designed, the battery storage unit will function as a time-shifting device, charging in the
off-peak hours when demand is low (e.g., hours 10:00 pm – 5:00 am), and releasing the
energy during on-peak hours. The battery storage unit will be sized to have a capacity
equivalent to approximately percent of the Bidder’s nameplate capacity (30-MW/60-MWh)
and the ability to provide full discharge for 2 hours. This means that the battery will be able
to increase the Project’s energy delivery by an average of percent every day during the 2-
hour winter peak period. During summer months, the discharge can be spread over the 5-
hour summer peak demand period, increasing the Bidder’s average energy delivery during
peak demand by an average of percent.
This ability to shift significant amounts of energy to when it is most needed in the system will
not only help increase system reliability, it will also have a tangible impact on winter and
summer peak prices.
Through its ability to time-shift production, the Project will also support the Commonwealth’s
goal of maximizing the value of clean, renewable energy and reducing greenhouse gas
emissions (see Section 13).
By delivering 400 MW clean energy generating capacity close to Massachusetts’ main load
centers, the Project will help moderate system peak load requirements throughout its
lifetime. This is particularly true due to the Preferred Option’s consistently high average
production rate, achieved by deploying the WTG
In addition, the Bidder’s proprietary site layout
optimization tools will enable it to minimize the shadowing effect between the WTGs (wake
losses) and maximize the wind climate usage. Furthermore, by pairing the Project with a
state-of-the-art 30-MW/60-MWh battery storage system, the Project can store production
during hours with low demand and deliver them at periods of high demand, thus allowing it
to better follow the Commonwealth’s anticipated peak load hours (see Section 3.3.8). By
doing this, the Project is able to create the most value for Massachusetts ratepayers. In the
following section, the Bidder will quantify its contribution to moderating system peak load
requirements.
Attachment 3-2 provides:
1) Net hourly energy production, based on the wind resource data (a 12 x 24 energy
projection) at P50, with and without impact of battery storage system, the latter has
been included solely for purposes of comparison as the Bidder intends to deploy the
battery storage system. The attachment also includes the following information:
̶ Estimated average output for each summer period (June- September) from 1:00 - 6:00 pm
with combined offshore wind farm and battery storage system
̶ Estimated average output for each winter period (October-May) from 5:00 – 7:00 pm with
combined offshore wind farm and battery storage system
The strategic use of a battery to better cover the peak load demand leads to an uplift of
in summer and in winter compared to the previously presented average
productions.
The Project’s production profile for an average day (24 hours) in July and March at P50 are
provided in Figures 3.4 and 3.5. The peak hours, as defined in the RFP, have been
highlighted. The chart displays two production profiles: (1) the blue line is the offshore wind
asset in isolation, and (2) the red line shows the combined offshore wind farm and battery
storage system and shows the increased energy delivery during peak hours as described
above.
% %
electrical availability for the
efficiency offshore substation
% %
uptime for each average net
wind turbine capacity factor
Additionally, in June of this year, Bay State Wind became the first U.S. developer to receive
approval from BOEM for deployment of a floating light detection and ranging (FLiDAR) and
met ocean buoy. The discussion below describes the status and long-term benefit of this
data collection effort.
Primary Data
Air-Sea Interaction Tower Light Detection and Ranging (LiDAR)
Since October 8, 2016, a WindCube V2 profiling LiDAR (unit WLS7 436) has been deployed
at the Air-Sea Interaction Tower (ASIT) near Martha’s Vineyard by the MassCEC. The ASIT is
operated by Woods Hole Oceanographic Institution. The LiDAR campaign is executed by AWS
Truepower and the data collected are in the public domain. The LiDAR is located 16 miles
(26 km) from the proposed wind farm site area, and the measurement heights available are
shown in Table 4.1. The position of the LiDAR on the tower is shown in Figures 4.1 and 4.2.
Table 4.1
263B Measurement Heights Relative to MSL (m)
Measurement heights relative
to MSL (m)
53
60
80
90
100
110
120
140
160
180
200
Figure 4.1 Air-Sea Interaction Tower. The location of the WindCube LiDAR is marked with the red
circle.
Before deployment, WLS7 436 was validated by NRG Systems. The reference instrument was
another WindCube LiDAR. The reference LiDAR had previously been certified by the Technical
University of Denmark in a validation against an onshore met mast. NRG Systems validated
the wind speed of WLS7 436 at heights of 40 m, 80 m, 120 m, and 160 m. The wind
direction was validated at 100 m. The ASIT LiDAR is too far from the site to serve as a direct
measurement of the wind conditions at the wind farm but it is a valuable reference source of
validated hub height wind speed measurements.
The ASIT LiDAR data coverage was 92 percent. The data availability over time is plotted in
Figure 4.3.
Figure 4.3 ASIT Lidar and Mesoscale Data Coverage
Reference Data
Vortex Mesoscale Data
Mesoscale modelled data from the commercial provider Vortex is the primary source of wind
data for the project (Table 4.2). The National Oceanic and Atmospheric Administration
(NOAA) buoys and the Buzzard’s Bay tower provide long-term data sources in the region, but
they are at such low heights that vertical extrapolation to hub height would be highly
uncertain.
Table 4.2
264B Vortex Mesoscale Data Summary.
Mesoscale Model
Input Data Parameters Applied Period Height [m]
MERRA2 Wind speed, wind
direction, temperature, 01/2006 – 06/2017 120 aMSL
ERAI pressure
The four mesoscale nodes closest to the site area, labeled VORp005, VORp006, VORp007,
and VORp008, are used to derive a representative wind climate (Figure 4.4). Modeled data
based on two input sources (MERRA2 and ERAI) are available at each node. The mesoscale
data are available at heights from 50 m to 150 m above mean sea level (aMSL) in steps of
10 m. The wind climate is derived from the level at 120 m aMSL, as this is closest to hub
height.
Figure 4.4 Elevation Map of the Lease Area with the Wind Data Sources
Since the mesoscale data are sampled hourly, the 10-minute LiDAR data are averaged to
hourly values. Only LiDAR data with availability higher than 80 percent are included. In
addition, for hours where less than 80 percent of the data are usable after filtering on
availability, the average is set to not a number (ignored). The concurrent period is the period
with simultaneous data for the ASIT LiDAR and both mesoscale sources. It is limited by the
lag in the mesoscale data, which are only available after some time (Figures 4.3 and 4.5).
Two separate methods for correcting the mesoscale modelled data are used:
Scaling: The scaling method derives a scaling factor as the ratio between the LiDAR
mean wind speed and the mesoscale mean wind speed over the concurrent period.
Only timestamps where both the LiDAR and the mesoscale wind speeds are defined
and less than 25 m/s are included. A separate scaling factor is derived for ERAI
( ) and MERRA2
Calibration: The calibration method compares mesoscale to LiDAR wind speeds in
30° sectors defined by the mesoscale wind direction. A linear regression with an
offset defines the relation between the mesoscale and LiDAR wind speeds. This
relation is used to correct the mesoscale wind speeds corresponding to wind
directions in the smaller interval of ±2.5° around the center of the sector. A sector-
wise calibration is obtained by shifting the regression sector in steps of 5°. A
separate calibration is undertaken for the ERAI and MERRA2 mesoscale wind
speeds. The sector-wise results are illustrated in Figure 4.6. The scaling parameters
and the sector-wise linear regression parameters are then applied to the four
mesoscale nodes surrounding the wind farm. The mesoscale wind direction is not
corrected.
The correlation between the ASIT LiDAR wind speed and the mesoscale modelled wind speed
without correction, with the mean wind speed scaling and the calibration method are shown
in Figures 4.7, 4.8, and 4.9, respectively.
From the qualification of mesoscale models in Europe it is known that the mesoscale wind
speed distribution is skewed relative to measurements, resulting in a larger Weibull k-factor
and a positive bias on the AEP. To correct for this the AEP is calculated for both the
mesoscale data and the ASIT LiDAR in the concurrent period.
Figure 4.10 shows that the corrected mesoscale has a positive bias on both the gross and
the net AEP, as expected from previous findings in Europe. The average bias over the two
correction methods and the ERAI and MERRA2 sources is . Hence a gross AEP
adjustment with an efficiency of is applied in the yield calculation.
Wind Shear
A wind shear is derived by fitting the wind speed profile at each of the four mesoscale nodes
to a power law profile. It is assumed that any correction to the mesoscale wind speeds is the
same at all heights. Hence the shear is calculated from the uncorrected mesoscale data. A
separate shear is calculated for the ERAI and MERRA2 data.
The wind shear from the mesoscale modelled data is divided up in to 12 sectors as can be
seen in Table 4.3 and Figure 4.11. The observed variation across sectors is typical of
offshore sites.
With an average wind shear of the mean wind speed is expected to increase by
approximately for an increase of 10 m around hub height.
Long-term Wind Climate
Only full data years are included in the wind climate analysis. The mesoscale time series at
the four nodes closest to the wind farm site cover the period 2006-2016 at the time of
writing. New data become available monthly, but with a lag of a few months.
To correct for any deviation from the long-term mean wind speed over the period 2006-2016
the mesoscale node VORr014 is used, since for this location a time series extending back to
1996 was purchased. A long-term correction factor is derived for both the ERAI and the
MERRA2 wind speed data by calculating the mean wind speed at 120 m aMSL at VORr014
in the period 2006-2016, which is concurrent with the data at the four primary mesoscale
nodes, and in the period 1996-2016, which constitutes the long-term period. The ratio of
former to the latter gives the long-term correction factor, which is applied to the wind speeds.
These are summarized in Table 4.4.
Table 4.4
26B Long-term Correction Factors
Mesoscale source Long-term correction factor [-]
ERAI
MERRA2
Raw wind speed measurements from the ASIT LiDAR and mesoscale data from all used
nodes, as well as time series of the final wind climate for the site are shared in
Attachment 4-1.
Indicate where the data was collected and its proximity to the proposed site. Include an identification
of the location and height for the anemometers and/or “range gate” heights for sensing by LiDAR that
were used to arrive at an assessment of the site generation capability.
See the preceding discussion for a description of where the data was collected and its
proximity to the proposed site.
Describe any additional wind data collection efforts that are planned or ongoing.
first lease holder in New England to receive BOEM approval of its SAP and the only one with
FLiDAR units deployed within its lease area.
Provide (a) at least one year of hourly wind resource data. Real Data collected from the site is
preferred, though projected data is permissible. Methodology must also be included and (b) a wind
resource assessment report from a qualified unaffiliated third party wind resource assessment firm.
Include an analysis of the available wind data which addresses the relationship between wind
conditions and electrical output.
See Attachment 4-1. A discussion of the methodology and analysis of wind resource data is
provided above.
In addition to this ongoing data collection, and as discussed above, the Bidder has enlisted
to provide a third-party wind assessment (Attachment 4-4).
Provide a projection of net annual energy production, including projections of average net hourly
energy production, based on the wind resource data (a 12 x 24 energy projection) at both P50 and
P90 levels.
6 Joint Committee for Guides in Metrology. 2008. Evaluation of Measurement Data – Guide to the Expression of Uncertainty
the given loss (i.e., 1-efficiency). The total uncertainty on the production is the square root of
the sum of squares of all the individual uncertainties (weighted by their sensitivities). From
the total uncertainty, the net AEP at the P90 level (or any other percentile) can be found by
assuming that the AEP distribution is a normal distribution with a mean value of net AEP
(P50) and a standard deviation given by the total uncertainty.
The Net AEP (P50 and P90) is presented in Table 4.6.
Table 4.6
268B Net Annual Energy Production (P50 and P90)
Net AEP GWh/y
P50
P90
The average gross and net hourly AEP for P50 and P90, based on the wind resource data
presented in Section 4.1.1, are provided in Attachment 4-5. Note that no energy storage
impact is included.7 Based on the long-term wind climate, a time series of hourly gross
production is derived. The P50 and P90 levels for each hour and month are calculated. The
P50 (P90) is the median (P90 percentile) of the production values in a given hour and
month. The variation represents the fluctuations in the wind speed from day to day within a
month and from year to year.
In a second step, the P50 and P90 production in each hour and month is divided by the total
gross production over the year to generate the corresponding fraction of the production
occurring in a particular hour on a representative day of a particular month. Finally, the
fractional production values are scaled by the net AEP, producing a 12x24 matrix of
projected hourly energy generation in MW. All losses and availability assumptions are
included. The losses are assumed to be distributed evenly across all hours, months and
years.
Provide a site-adjusted power curve. Each curve should list the elevation, temperature and air density
used.
7 Similar 12x24h production matrices are included in the third-party wind assessment (Attachment 4-4). Note however, that
in the third party report, the entries in the matrices correspond to monthly totals in a given hour reported in GWh, while in
Attachment 4-5 the values representing an average day for every hour and month are reported in MWh. Therefore, the
values in Attachment 4-5 have to be multiplied by the number of days in a month and divided by 1000 to be compared with
the values in Attachment 4-4.
how much force the WTG exerts on the flow as a function of wind speed. This input is
necessary for the calculation of the wake losses.
The WTGs in this proposal have a nameplate capacity of kilowatt (kW).
8 This is further attested to by the independent engineering company in their third party wind resource assessment
report (Attachment 4-4) (Attachment 4-6).
Identify the assumptions for losses in the calculation of projected annual energy production, including
each element in the calculation losses.
Blade Surface Roughness. Contamination of the rotor by dirt and insects will lead to an
increase in the surface roughness, which in turn leads to lower aerodynamic efficiency of the
blade. Offshore, due to the remote location, the occurrence of blade contamination due to
dirt and insects is expected to be quite low. In addition, the expected high frequency of
sustained periods of rain will act as a very efficient cleaning system for the blades, reducing
any contamination to a negligible level. It has been also assessed that the risk of icing is
negligible at the wind farm location. Based on all the considerations above, the Blade
Surface Roughness efficiency is set to 100 percent.
Representativeness of Wind Conditions. This adjustment factor accounts for potential
adjustments to the power curve due to the differences between the wind conditions under
which the power curve is measured and under which the wind turbines operate within the
offshore wind farm. This is represented by an adjustment of on the power
curve.
Induction Zone Adjustment. This adjustment accounts for the free wind speed, as measured
during power curve tests, being affected by the WTG induction zone, also known as
compression zone effect, which have a boosting effect. The adjustment to the power curve is
done with a factor of percent.
Electrical Efficiency. Modeled electrical efficiencies for the wind farm and electrical system
are estimated to be percent based on the specific planned wind farm layout. The factor
includes efficiencies gained from use of cutting-edge technologies such as the WTG
transformer, array cables, export cable and substations (transformer units, reactors and
filters).
Turbine Availability. Each WTG’s availability is assumed to be percent uptime from year
and percent from year onwards, which is an estimate based on Ørsted’s
experience gained from operating wind farms using mature WTG technology (Figure 3.1),
furthering improvement and performance management. This factor takes account of
scheduled and unscheduled losses due to downtime of the WTGs. Ramp-up adjustments are
accounted during the early operation start-up.
Array Cable Availability. The array cables availability is assumed to be percent uptime,
based on Ørsted’s experience gained from operating wind farms. Issues that may affect
availability are the design of the cable entry system and ground conditions on the site.
Substation Availability. The OSS is expected to have an availability of percent, which
accounts for the energy lost in the offshore electrical components including
transformers and offshore shunt reactors. The OnSS availability is percent, which
includes losses in the onshore transformers, shunt reactors, harmonic filters and STATCOMs.
These factors take account of scheduled and unscheduled losses due to downtime.
Scheduled downtime is reduced to an absolute minimum by 1) designing the system with
dual transformers and 2) performing scheduled maintenance during the low-wind months
and on one transformer at a time.
Export Cable Availability. This factor takes account of losses due to failures of the export
cable, both offshore and onshore, and is represented by an availability of percent.
Grid Availability. Grid availability can be defined as the losses due to the main onshore
transmission grid being unavailable, and it is represented by an availability of percent.
The energy delivery plan is based on the input and methodology presented in Sections 3.4
and 4.1.2, and it is provided as a P50 average year expectation for the hourly profile (see
Attachment 3-2). Additionally, the energy delivery plan includes the benefits from the energy
storage battery proposed in Sections 3.3.8 and 3.4.
The energy delivery profile provided here confirms that the Project conforms to all
requirements set out in Section 2.2.1.3 of the RFP, including:
1. A price schedule for energy delivery conforming to Section 2.2.1.4 of the RFP (see
Part III and VI in the CPPD, Attachment 1-1)
2. A proposal that consists of a GLL and ETS project as required by Sections 2.2.1.3.1
and 2.2.1.3.2 of the RFP (see Sections 8 and 15 in the Bid)
3. The Project will propose a battery storage system to create the most value for
Massachusetts ratepayers and as such the delivery profile will conform to the
request that a Project’s energy delivery follows the Commonwealth’s load as closely
as possible. This is further elaborated upon in Sections 3.3.8, 3.4, 4.1, and 4.2.
Further, the Project conforms to all requirements of Section 2.2.1.7 of the RFP. As described
in Section 6.6, the Bidder has already received a queue position from ISO-NE ( ), and
ISO-NE completed its Feasibility Study for the Project’s interconnection at Brayton Point on
April 7, 2017. In the study, ISO-NE found that the Bidder could connect 800 MW at the
Brayton Point POI with no need for system upgrades. Additionally, ISO-NE has completed a
Preliminary Non-Binding Overlapping Impact (PNOI) Study with 800 MW of injection to the
Brayton Point 345-kV Substation. This study assesses the Project’s ability to provide
incremental capacity in a manner that meets the Capacity Capability Interconnection
Standard (CCIS). The PNOI Study assessed the injection of 800 MW and identified upgrades.
However, given the Project’s anticipated Qualified Capacity of in summer and
in winter, the Bidder anticipates that the binding ISO-NE study will find no upgrades will
be required. In the event that the ISO-NE binding study does identify upgrades, these will be
constructed as necessary. This is also discussed in the CPPD, Part VII.
As an Offshore Wind Energy Generation proposal, this Project will produce Class-1
Renewable Energy Certificates (RECs) (see Section 7.6). The Bidder will use the New England
Power Pool (NEPOOL)-generation information system (GIS) to track these Class-1 RECs and
their environmental attributes as they are delivered throughout the lifetime of the Project.
While the Bidder has not currently registered with NEPOOL-GIS it will do so at the appropriate
time to allow it to deliver GIS Certificates as required by the RFP. As required by the form of
PPA, the Bidder will deliver RECs either directly into each EDC’s account or execute an
irrevocable forward transfer certificate. Documentation will be provided once available.
20 + offshore
wind farms
financed 50B
Owners’ assets
total more than
$
100 %
~ 4B
$ combined
annual
funded by operating
equity contributions cash flow
Borkum Riffgrund Offshore Wind Farm
Section 5 Financial/Legal
5. FINANCIAL/LEGAL
Bidders are required to demonstrate the financial viability of their proposed project.
The proposed Project’s financial viability is based on several factors, primarily the financial
strength of Ørsted and Eversource, and their combined experience in financing, constructing,
and operating offshore wind generation around the world and electric distribution and
transmission facilities in New England. Ørsted and Eversource are publicly traded companies
with a combined market capitalization of approximately $40 billion, and combined operating
cash flows of approximately $4 billion annually. Their financial strength and proven track
record have been, and will continue to be, critical in enabling them to fund project
construction and operation, and, where desirable, to attract capital from investors on terms
more favorable than less financially robust developers could obtain. The financial strength of
Ørsted and Eversource – and by extension the Bidder’s financial strength – is described in
greater detail in the following responses.
Long-term PPAs awarded through this RFP Process will create a predictable, long-term
revenue stream from credit-worthy counterparties that appropriately value clean, renewable
energy from offshore wind generation. The prospect of predictable, long-term revenue will
give the Bidder and its affiliates the certainty necessary for them to make the substantial
capital contributions needed to finance the Project, not to mention significant flexibility in
financing it. This flexibility, combined with the considerable financial strength of Ørsted and
Eversource, will give the Bidder and its affiliates access—if needed—to the lowest-cost
sources of capital, ultimately reducing the cost of the clean energy delivered from the Project
to Massachusetts ratepayers.
The Bidder is 50 percent controlled by each of ESI and Ørsted NA. Specifically, ESI and
Ørsted NA (together, the Owners) jointly own the Bidder’s parent company (and sole member-
manager), Bay State HoldCo LLC. Bay State HoldCo LLC is managed by a four-person board
of directors who constitute “managers” within the meaning of the Delaware Limited Liability
Company Act. At the direction and under the supervision of the directors of Bay State HoldCo
LLC, the Bidder’s project-development activities are facilitated by a four-person steering
committee. The individuals who hold (and have previously) held these positions are listed in
Section 5.7.
The Bidder has no subsidiaries, but has two affiliates (in addition to its parent) that are
likewise jointly controlled by the Owners: BSW ProjectCo LLC and its sole member-manager,
BSW HoldCo LLC. The governance of BSW ProjectCo LLC and BSW HoldCo LLC mirrors that of
the Bidder and Bay State HoldCo LLC, with the same individuals serving on the boards of
directors and steering committees for both sets of companies. An organization chart
depicting the foregoing structure is provided in Figure 5.1.
As previously noted, the Bidder holds a federal offshore wind energy lease (BOEM Renewable
Energy Lease No. OCS-A 0500), as well as certain other property rights, and has engaged in
permitting activities for the proposed Project. BSW ProjectCo LLC has to date engaged in
project development activities for the proposed Project, such as entering into agreements
with partners, consultants, and property owners, as well as contributing to the drafting of this
proposal. In the event that the proposed Project is selected in this RFP for negotiation, the
Bidder intends to: (1) assign the geographic portion of BOEM Renewable Energy Lease No.
OCS-A 0500 where the proposed Project will be constructed from Bidder to BSW ProjectCo
LLC, as provided by BOEM’s regulations (and as further discussed in Section 6.2.1); and (2)
sign PPAs associated with the proposed Project with the EDCs in the name of BSW ProjectCo
LLC.
The development, construction and operation of the Project will be supported by the Owners
and their affiliates. Specifically, Ørsted North America and its affiliates will be supplying
construction, operation, and maintenance services for the offshore portions of the Project,
while Eversource Investment and its affiliates will be supplying those services for the onshore
portions of the Project. Ørsted is the industry leader in offshore wind, having constructed 3.8
GW of generation over the past 25 years across numerous markets (approximately 30
percent of global installed capacity), with another 5.0 GW under construction. Ørsted’s
2,000+ employees together possess unparalleled expertise in offshore wind design,
engineering, permitting, finance, procurement, construction, and operation that will be put to
use for the benefit of the Project. Eversource is likewise an industry leader in its field, having
successfully developed hundreds of transmission projects over the past decade. Relying on
8,000 employees across the region, Eversource has unmatched knowledge of New England’s
electrical system, and extensive experience in interconnecting renewable resources in a
reliable and cost-effective manner. Ørsted and Eversource’s capabilities, track records, and
collective talent pool—all of which are further discussed in Section 12—are invaluable assets,
and when paired with the companies’ financial strength will ensure that the Project delivers
reliable, cost-effective renewable energy to Massachusetts ratepayers.
To date, the Owners have provided funding to the Bidder by providing equity contributions to
Bay State HoldCo LLC, which Bay State HoldCo LLC has in turn used to provide equity
contributions to the Bidder. The Owners have taken the same approach to funding BSW
ProjectCo LLC through BSW HoldCo LLC, and intend to continue funding both the Bidder and
BSW ProjectCo LLC in this manner until operation. Section 5.3 provides further explanation
of the expected financing plan.
The Bidder has been authorized to submit this proposal by a written consent from its sole
member, Bay State HoldCo LLC. A copy of the written consent is included as Attachment 5-1.
The Project will be financed by its Owners, which plan to finance the development,
construction, and operation of the Project with 100 percent equity. Since the financing for
the Project will solely be equity from its Owners and not reliant upon outside parties, a
detailed financing plan is not necessary; however, additional details are included herein.
Ørsted and Eversource’s combined financial strength eliminates the risk project-level
financing imposes on projects of this type, ensuring that financing issues will not delay
project construction or otherwise impede the delivery of clean energy to Massachusetts
ratepayers.
Ørsted will secure the funds for its portion of the capital contributions to the Project as it
does for all the projects across its portfolio of offshore wind farms and non-wind energy
projects, through a combination of:
Cash flow from existing business (~$1.6 billion cash flow from operating activities in
2016);
Debt issuance by Ørsted; and
Capital recycling through divestment of assets (~$1.3 billion cash flow from
divestments in 2016).
Eversource will secure the funds for its portion of the capital contributions to the Project as it
does for its other energy infrastructure investments, through a combination of:
Internally generated cash flow (~$2.2 billion cash flow from operating activities in
2016); and
Debt issuance by Eversource
ii. The project’s existing initial financial structure and projected financial structure
As discussed in Section 5.3.i, the Project is currently financed with 100 percent equity,
equally contributed by Ørsted and Eversource through Bay State HoldCo LLC and BSW
HoldCo LLC. The financial structure will be 100 percent equity during development,
construction and operation.
iii. Expected sources of debt and equity financing
As discussed in Section 5.3.i, the Project will be financed with 100 percent equity from its
Owners.
iv. Estimated construction costs
As discussed in Section 5.3.i, the Project’s projected capital structure will be 100 percent
equity.
vi. Describe any agreements, both pre and post commercial operation date, entered into with
respect to equity ownership in the proposed project and any other financing arrangement.
Ørsted and Eversource entered into multiple agreements related to the ownership, financing,
development, and operation of the Project in December 2016. First, ESI acquired a 50
percent membership interest in Bay State HoldCo LLC (the Bidder’s sole member-manager),
as well as in BSW HoldCo LLC (the sole member-manager of BSW ProjectCo LLC), through
two subscription agreements. Second, the Owners entered into two limited liability company
agreements, for Bay State HoldCo LLC and BSW HoldCo LLC, respectively that provide for
governance of all four jointly-controlled companies, as well as the mechanics of project
financing. (As discussed in Section 5.2, the Bidder intends to assign a portion of its offshore
lease to BSW ProjectCo LLC in the event of success in the RFP Process, and for BSW
ProjectCo LLC to enter into PPAs with the EDCs.)
In addition, the financing plan should address the status of the above activities as well as the
financing of development and permitting costs. All bidders are required to provide this information.
Ørsted is the world’s leader in offshore wind development and construction, with over 25
years of experience executing complex capital projects, including 22 operational offshore
wind projects with 3.8 GW of operational capacity. Similarly, with the completion of hundreds
of capital projects over the past decade, Eversource has established a successful track
record in delivering customer value and demonstrated expertise in building, financing,
owning and maintaining infrastructure for the electric industry. Eversource’s annual
investment in energy infrastructure has averaged $1.8 billion over the last three years
ending 2016.
Tables 5.1 and 5.2 provide lists of offshore wind projects and other large energy distribution
projects financed and developed by the Owners.
Table 5.1
270B Projects Financed and Developed by Ørsted
Construction Permanent Permanent
Capital Commercial Capital Capital
Project Size Construction Structure / % Operation Structure Structure /
Name Location Type (MW) Start (Year) Ørsted (Year) (Year) % Ørsted Status
Offshore 100% Equity / Under
Borssele 1&2 Netherlands 700 TBD 2021 TBD TBD / TBD
Wind 100% Ørsted Construction
United Offshore 100% Equity / Under
Hornsea 1 1,218 2016 2019 TBD TBD / TBD
Kingdom Wind 100% Ørsted Construction
Borkum Offshore 100% Equity / 100% Equity / Under
Germany 450 2017 2019 2017
Riffgrund 2 Wind 100% Ørsted 50% Ørsted Construction
Walney United Offshore 100% Equity / Under
660 2015 2018 2017 TBD / TBD
Extension Kingdom Wind 100% Ørsted Construction
United Offshore 100% Equity / 100% Equity / Under
Race Bank 573 2015 2018 2017
Kingdom Wind 100% Ørsted 50% Ørsted Construction
Burbo Bank United Offshore 100% Equity / 100% Equity /
258 2015 2017 2016 Operating
Extension Kingdom Wind 100% Ørsted 50% Ørsted
Offshore 100% Equity / 100% Equity /
Gode Wind 1 Germany 332 2015 2016 2015 Operating
Wind 100% Ørsted 50% Ørsted
Offshore 100% Equity / 100% Equity /
Gode Wind 2 Germany 252 2015 2016 2014 Operating
Wind 100% Ørsted 50% Ørsted
Westermost United Offshore 100% Equity / 100% Equity /
210 2014 2015 2014 Operating
Rough Kingdom Wind 100% Ørsted 50% Ørsted
Borkum Offshore 100% Equity / 100% Equity /
Germany 312 2013 2015 2012 Operating
Riffgrund 1 Wind 100% Ørsted 50% Ørsted
West of
United Offshore 100% Equity / 100% Equity /
Duddon 389 2013 2014 2010 Operating
Kingdom Wind 50% Ørsted 50% Ørsted
Sands
Offshore 100% Equity / 100% Equity /
Anholt Denmark 400 2012 2013 2011 Operating
Wind 100% Ørsted 50% Ørsted
Gunfleet United Offshore 100% Equity / 100% Equity /
12 2012 2013 2012 Operating
Sands 3 Kingdom Wind 100% Ørsted 100% Ørsted
United Offshore 100% Equity / 100% Equity /
Lincs 270 2011 2013 2009 Operating
Kingdom Wind 25% Ørsted 25% Ørsted
Table 5.2
271B Projects Financed and Developed by Eversource
Permanent
Construction Commercial Capital Permanent
Project Size Construction Capital Operation Structure Capital
Name Location Type (MW) Start (Year) Structure1 (Year) (Year) Structure2 Status
Interstate
Electric 44% Debt / 44% Debt /
Reliability CT 345 kV 2013 2015 2015 Operating
Transmission 56% Equity 56% Equity
(NEEWS)
Long-Term 115 kV
Electric 44% Debt / 44% Debt /
Lower SEMA MA and 2009 2014 2014 Operating
Transmission 56% Equity 56% Equity
Upgrades 345 kV
Greater
115 kV
Springfield Electric 44% Debt / 44% Debt /
MA / CT and 2011 2013 2013 Operating
Reliability Transmission 56% Equity 56% Equity
345 kV
(NEEWS)
115 kV
Middletown Electric 44% Debt / 44% Debt /
CT and 2003 2009 2009 Operating
to Norwalk Transmission 56% Equity 56% Equity
345 kV
Glenbrook Electric 44% Debt / 44% Debt /
CT 115 kV 2006 2008 2008 Operating
Cables Transmission 56% Equity 56% Equity
Long Island
Electric 44% Debt / 44% Debt /
Replacement CT 138 kV 2006 2008 2008 Operating
Transmission 56% Equity 56% Equity
Cable
Stoughton Electric 44% Debt / 44% Debt /
MA 345 kV 2005 2007 / 2009 2007 / 2009 Operating
Cables Transmission 56% Equity 56% Equity
Bethel to Electric 44% Debt / 44% Debt /
CT 345 kV 2004 2006 2006 Operating
Norwalk Transmission 56% Equity 56% Equity
1. During construction, Eversource typically finances projects with a combination of short-term debt and internally generated cash flow. Projects are not financed at the project
level with non-recourse debt, but rather on balance sheet at the regulated entity developing the project. Capital structure for the regulated entity is generally maintained at
the allowed ratemaking capital structure, which can change over time. The current allowed capital structure has been provided.
2. Once a project reaches commercial operations, short-term financing during construction is typically replaced with long-term debt, but the capital structure will continue to be
generally maintained at the allowed ratemaking capital structure, which can change over time. The current allowed capital structure has been provided.
As discussed throughout Section 5, Ørsted and Eversource are stable and diverse energy
companies with robust balance sheets that reflect the financial strength needed to complete
and operate the Project in the ordinary course of their respective businesses.
Financial and cash flow data for Ørsted and Eversource is provided in Tables 5.3, 5.4, 5.5,
and 5.6.
Table 5.3.
27B Eversource Selected Consolidated Financial Data – Balance Sheet and Income Statement
(Millions of Dollars) 2016 2015 2014
Balance Sheet Data:
Property, Plant and Equipment, Net $21,351 $19,892 $18,647
Total Assets 32,053 30,580 29,740
Total Capitalization 20,470 19,542 18,946
Income Statement Data:
Operating Revenues 7,639 7,955 7,742
Net Income 950 886 827
Table 5.4.
273B Eversource Selected Consolidated Cash Flow Data – Funds from Operations and Debt
Issuances
(Millions of Dollars) 2016 2015 2014
Net Cash Flow Provided by $2,175 $1,434 $1,652
Operating Activities
Issuance of Long-term Debt 800 1,225 725
Increase/(Decrease) in Short-term (12) (242) 285
Debt
Total Debt Issuances 788 983 1,010
Table 5.5.
274B Ørsted Selected Consolidated Financial Data – Balance Sheet and Income Statement
(Millions of Dollars) 2016 2015 2014
Balance Sheet Data
Total Assets 20,473 22,119 22,487
Capital Employed 9,144 9,140 9,827
Income Statement Data
Revenue 9,180 9,817 9,192
EBIT 2,082 281 339
From DONG Energy 2016 Annual Report
Assumes DKK to USD exchange rate of 0.15
Table 5.6.
275B Ørsted Selected Consolidated Cash Flow Data – Funds from Operations and Debt
Issuances
(Millions of Dollars) 2016 2015 2014
Cash flow from operating activities 1,691 1,128 1,435
Interest-bearing net debt 519 1,379 597
From DONG Energy 2016 Annual Report
Assumes DKK to USD exchange rate of 0.15
As demonstrated, both Eversource and Ørsted are large, growing companies, and have a
combined market capitalization of approximately $40 billion. Moreover, both possess deep
capital-market expertise, as evidenced by their ability to routinely access the public debt
markets. For example, in November 2017, Ørsted successfully issued green hybrid capital
securities and green senior unsecured bonds totaling €1.25 billion (approximately $1.5
billion) and over the course of 2017 the Eversource Parent successfully issued $1.2 billion of
Series K and Series L Senior Notes.
Although the Bidder does not have any audited financial statements or annual reports, the
annual reports for Ørsted (formerly known as DONG Energy) and Eversource for the past
three fiscal years (ending December 31, 2016) are provided as Attachment 5-2, Attachment
5-3, Attachment 5-4, Attachment 5-5, Attachment 5-6, and Attachment 5-7. Moreover, the
unaudited 2014, 2015, and 2016 annual financials for the Bidder and its joint venture
affiliates are provided as Attachment 5-8.
The Bidder does not have any outstanding debt and therefore does not have a credit rating.
The current senior unsecured (long-term) debt ratings of Ørsted and Eversource are provided
in Table 5.7.
Table 5.7
276B Ørsted and Eversource Credit Ratings
Sponsor S&P Moody’s Fitch
Ørsted BBB+ (stable) Baa1 (stable) BBB+ (stable)
Eversource A (stable)1 Baa1 (stable) BBB+ (positive)
Rating for senior unsecured long term debt. Corporate Credit rating is A+
The governance of the Owners’ four jointly-controlled companies is discussed in Section 5.2.
The directors of both Bay State HoldCo LLC and BSW HoldCo LLC are
The
steering committee members for both the Bidder and BSW ProjectCo LLC are
There is one former director: who resigned effective March 31, 2017.
There are two former steering committee members: , who
resigned effective January 1, 2017; and who resigned
effective April 3, 2017.
The Owners have ample resources to provide bid security on behalf of the Bidder. Eversource
Investment has an intercompany credit facility with Eversource in the amount of million
with untapped capacity of million. In addition, Eversource has access to a commercial
paper program of billon, with remaining capacity of over million. Ørsted NA has a
million credit facility with Nordea and a million credit facility with
The Owners will arrange for the security required under the RFP Process to be provided in the
form of cash deposits or letters of credit. Ørsted and Eversource are rated by the three major
credit rating agencies as set forth in Section 5.6.
Neither Ørsted nor Eversource have experienced any current credit issues or recent rating
downgrade events, and neither is aware of any pending credit issues or credit rating
downgrade events, nor any other financial issues raised by rating agencies, banks, or
accounting firms. As demonstrated in Section 5.6, all three major credit rating agencies rate
Ørsted’s and Eversource’s credit as stable, and both are well regarded and maintain strong
investment grade credit profiles. Additionally, in December 2017, S&P raised Eversource’s
corporate rating to A+ (stable), reflecting S&P’s assessment of Eversource’s business risk
profile as excellent. Eversource currently maintains the highest credit rating of any company
in the Energy and Utility industry in the United States.
By virtue of the financial strength and proven track record that Eversource and Ørsted
possess, the Project is uniquely positioned to qualify for the federal ITC on an accelerated
schedule that will maximize value, and to self-monetize that value efficiently, passing
resulting cost reductions on to Massachusetts ratepayers.
The Project’s efficient self-monetization of tax attributes will maximize cost-savings for
Massachusetts ratepayers. Because the Project need not rely on third-party tax-equity
investment, it will be unaffected by volatility in the appetite for and—crucially—the pricing of
such investment. By eliminating monetization risk in this way, the Bidder can pass the
maximum benefit of the ITC on to Massachusetts ratepayers. This attribute is critical to the
success of the Project, as it significantly reduces the aforementioned risks to ITC
qualification and overall financing execution that other developers could face.
The ITC is available for wind facilities that commence development by December 31, 2019,
but its value decreases each year after 2016, as follows:
By December 31, 2016 – 100% value, or 30% of Qualified Energy Property
By December 31, 2017 – 80% value, or 24% of Qualified Energy Property
By December 31, 2018 – 60% value, or 18% of Qualified Energy Property
By December 31, 2019 – 40% value, or 12% of Qualified Energy Property
Eversource and Ørsted have the financial wherewithal and project-development experience
to adopt a strategy that would (subject to timely execution of long-term PPA through this RFP
Process) allow the Project to qualify for the ITC. The Bidder has been working
collaboratively with a number of key potential suppliers and specialist advisors to ensure that
the ITC qualification strategy is complaint with guidance from the IRS, is feasible having
taken into account suppliers’ manufacturing capacity over the relevant timescales and does
not sacrifice technical design flexibility. In addition to the ITC qualification strategy, the
Bidder holds several key attributes which will re-risk the efficient monetization of the tax
credits given that the Bidder can: (1) build on balance sheet; (2) rely on know-how from a
proven track record of project execution; and (3) self-monetize the ITC. In contrast,
developers that are less financially robust, have less experience, or are subject to constraints
imposed by third-party tax-equity investors would face considerably greater challenges in
qualifying for the ITC in
There is no pending litigation or dispute—nor has there been any in the past three years—
related to any project developed, owned, or managed by the Bidder or any of its affiliates in
the U.S.
See the annual reports referenced in Section 5.6, which disclose material litigations involving
the Owners’ respective affiliates. In particular, Ørsted NA’s affiliate Elsam Kraft A/S is party
to litigation in which the Danish competition authority found that it charged excessive prices
in the Danish wholesale power market from 2003 through 2006 (a period when Elsam Kraft
A/S was not yet owned by Ørsted NA’s ultimate parent company). An appeal of that
determination is currently pending before the High Court of Western Denmark. Following the
Danish competition authority’s finding, consumers also brought claims for damages, for
which a litigation provision has been established.
On November 16, 2017, an action captioned Breiding v. Eversource Energy, et al, C.A. No.
17-12274-DJC (the “Action”), was filed in the U.S. District Court for the District of
Massachusetts against affiliates of Eversource and Avangrid, Inc., another company engaged
in the energy generation and distribution business. The complaint alleges that Eversource
and Avangrid, Inc. each possessed and exercised monopoly power that enabled them each to
manipulate the wholesale prices of natural gas sold to electric generation facilities in New
England that in turn artificially inflated electric rates charged to customers. The Action
purports to be brought as a class action on behalf of electric distribution customers, as well
as other New England electric customers. The Action asserts claims under the federal
antitrust laws as well as certain state law causes of action. The time within which the
Eversource has to respond to the complaint has not yet elapsed. Eversource believes that
the Action is without merit and intends to contest the matter vigorously.
On October 13, 2017, the Connecticut Public Utilities Regulatory Authority opened Docket
No. 17-10-3, entitled “PURA [Connecticut Public Utilities Regulatory Authority] Review of the
LDCs’ Gas Supply Portfolio, Asset Strategies and Practices”. The purpose of the docket is to
review the gas supply portfolio, asset strategies, and practices of Connecticut’s local gas
distribution companies, including Yankee Gas, and will include the Local Distribution
Companies’ use of load forecasting, daily and intra-daily nominations, deliveries and
imbalance, to evaluate compliance with requirements to provide safe and reliable service for
gas customers under Connecticut law and in the context of the growing dependency of the
electric grid on natural gas resources. A scheduling order has not yet been issued in this
docket.
For tax purposes, the Project will be depreciated in accordance with IRS guidelines. For
accounting purposes, the major components of the Project will be depreciated over their
operating lifetimes, as outlined in Table 5.8.
Table 5.8
27B Depreciation Period by Asset Type
Asset Type Depreciation Period
Generation facilities (WTGs)
Transmission lines (lead lines or expandable transmission)
OSS
OnSS
Battery storage system
The Project will obtain development, construction and permanent financing through the
Owners in the form of equity contributions. Ørsted and Eversource are committed to
financing the Project, which will not need to rely on any external financing for construction or
operation.
In all cases, long-term PPAs will enable the Owners to obtain the necessary internal
approvals to authorize the substantial capital contributions needed to finance the Project.
Moreover, the long-term PPAs will make it easier for the Owners to access the public debt
markets at the parent level, as creditors rely on secured revenue streams to achieve the
necessary comfort level to make their investments.
See Section 5.3 for details regarding the financing plan.
The Bidder has not entered into or executed any agreements for energy, RECs or capacity for
the Project.
Bay State Wind has been in active discussions with municipal, corporate, and non-profit
organizations in relation to the potential purchase of energy or RECs from additional
generation constructed in the Lease Area. These discussions are specific to the opportunity
for those organizations to procure energy or RECs from new offshore wind energy generation.
None of these potential agreements would affect the Project or pose an adverse risk to
Massachusetts ratepayers. The key potential impact relevant to this bid submission is the
opportunity to develop additional generation capacity at no cost to ratepayers while providing
supplemental net economic benefits to the Commonwealth.
At this stage, Bay State Wind has secured a Letter of Intent with Southcoast Health System,
as provided in Attachment 5-9.
Bay State Wind believes that building partnerships with local institutions like these will be
critical to growing broad awareness and support for an offshore wind industry in
Massachusetts. Corporate offtake is also a leading driver of renewable energy growth in the
U.S. and Bay State Wind endeavors to see Massachusetts serve as the pace setter for
corporate offtake of offshore wind power.
None of the agreements contain any binding commitments with respect to energy, RECs
and/or capacity. The discussions that Bay State Wind is having with potential corporate
partners have only just begun, and activity in this area will be ramped up over the course of
2018 and beyond. The agreements executed at this stage are indicative of the types of
arrangements that Bay State Wind continues to pursue and mature.
As detailed in Section 5.2, Ørsted NA and ESI jointly control four companies that are involved
in the proposed Project.
Virtually all of Eversource’s business is conducted in the energy sector. Ørsted owns,
sometimes jointly, over one hundred entities active in the energy sector. Please see
Attachment 5-10 for corporate structures for Ørsted and Eversource, as well as Ørsted’s and
Eversource’s 2016 Annual Reports (Attachments 5-4 and 5-7) for a complete list of active
affiliated entities and joint ventures.
As discussed in Section 5.17, the Bidder’s affiliates include two of the EDCs, and measures
have accordingly been put in place to guard against unfairness or undue preference for the
Bidder in this RFP Process.
The Bidder and its affiliates have not taken any of the above-described actions in the last five
years. For the avoidance of any doubt, this response encompasses not only the Bidder’s
three affiliates that are jointly controlled by Ørsted NA and ESI, but also Ørsted and
Eversource’s affiliates.
The Bidder has an affiliate relationship with two of the EDCs (as discussed below), and
acknowledges that conflicts of interest are an important issue that the Evaluation Team and
the Independent Evaluator must consider. Accordingly, measures have been put in place to
ensure that the Bidder and its affiliates comply not only with applicable law, but also with
voluntary standards to prevent any actual or apparent instance of unfairness, discrimination,
or undue preference toward the Bidder in this RFP Process.
ESI is an affiliate of NSTAR Electric Company d/b/a Eversource Energy and Western
Massachusetts Electric Company d/b/a Eversource Energy, two of the Massachusetts EDCs
participating in the RFP Process, and both members of the Evaluation Team. See Attachment
5-10 for Eversource’s corporate structure. Eversource maintains a rigorous compliance
program, Code of Business Conduct, and policies to avoid conflicts of interest and
appearances of impropriety, and to ensure compliance with state and federal codes of
conduct and affiliate transactions rules. In particular, Eversource has endorsed and
supported the use of the Utility Standard of Conduct for the RFP Process, which is binding on
all Eversource employees (including ESI), and whose principles are consistent with
Eversource’s compliance program and Code of Business Conduct.
More importantly, Eversource and Ørsted have also adopted additional measures to ensure
and facilitate adherence to the Utility Standard of Conduct. To effectuate the Utility Standard
of Content’s requirement of a Bid Team and an Evaluation Team, affected Eversource
employees receive a copy of the Utility Standard of Conduct and a roster of the employees on
each team, and sign a certificate acknowledging and agreeing to follow the Utility Standard of
Conduct. Employees assigned to each team are required to wear color-coded identification
badge covers that clearly identify Bid Team members (green) and Evaluation Team members
(red). Affected employees are given training on—and periodic reminders of—their obligations,
with a single point of contact (the Deputy General Counsel & Chief Compliance Officer)
identified for any compliance-related questions. In addition, the Eversource Bid Team and
Evaluation Team use separate IT server locations that have security limiting access to
specific team members as approved by the Chief Compliance Officer and IT. Employees of
Ørsted NA and its affiliates also receive an updated Bid Team roster periodically. All meetings
of the joint venture steering committees and boards of directors begin with a reminder of the
Standard of Conduct and the importance of separation between the Bid Team and the
Evaluation Team.
Beyond the Utility Standard of Conduct and internal measures in furtherance of it, Ørsted and
Eversource are subject to the following requirements and procedures:
The fairness measures imposed by Section 83C as well as the Massachusetts
Department of Public Utilities’ (DPU) implementing regulations thereunder, including
the appointment of the Independent Evaluator responsible for overseeing the RFP
Process and authorized to order the setting aside of any winning bid found to be the
result of a process that was not fair and objective, and that was substantially
prejudiced as result.
The Bidder is unaware of any pending litigation, disputes, claims or complaints involving the
Bidder or any affiliate of the Bidder against any of the EDCs or any affiliate of any EDC.
Neither the Bidder nor any of its affiliates has been implicated in any litigation, disputes,
claims or complaints, or events of default or other failure to satisfy contract obligations, or
failure to deliver products, involving, and relating to the purchase or sale of energy, capacity
or renewable energy certificates or products in the U.S.
See Section 5.11 on litigation involving Ørsted’s NA’s affiliate Elsam Kraft A/S.
See Section 5.11 on litigation involving affiliates of Eversource.
Neither the Bidder, the Owners or their affiliates, nor any of their respective directors,
employees, or agents (acting in their professional capacities) is currently under investigation
by any governmental agency, or has in the last four years been convicted or found liable for
any act prohibited by State or Federal law in any U.S. jurisdiction involving conspiracy,
collusion or other impropriety with respect to bidding on any contract, or has been the
subject of any debarment action.
See Section 5.11 on litigation involving affiliates of Eversource.
The marked-up form PPAs submitted with this Bid have received the necessary approvals
from the managers of the Bidder, Bay State HoldCo LLC, BSW ProjectCo LLC, and BSW
HoldCo LLC (although changes to the form PPAs made during the negotiation process may
require further such approvals).
Offshore Delivery Facilities
Agreement
In this section, the Bidder demonstrates that its two categories of bids (Offshore Wind Energy
with a Project-Specific GLL and Offshore Wind Energy with an ETS Proposal) conform to
applicable FERC regulatory requirements.
None of the EDCs has a financial or voting interest, direct or indirect, in the Bidder or the
proposed Project.
As noted in Section 5.17, the Bidder is an affiliate of NSTAR Electric Company d/b/a
Eversource Energy and Western Massachusetts Electric Company d/b/a Eversource Energy,
two of the Massachusetts EDCs participating in the RFP Process, and both members of the
Evaluation Team. See Attachment 5-10 for Eversource’s corporate structure.
As discussed in Section 5.3, Ørsted and Eversource entered into multiple agreements related
to the ownership, financing, development, and operation of the Project in December 2016.
First, Eversource acquired a 50 percent membership interest in Bay State HoldCo LLC (the
Bidder’s sole member-manager), as well as in BSW HoldCo LLC (the sole member-manager
of BSW ProjectCo LLC), through subscription agreements. Second, the Owners entered into
limited liability company agreements for Bay State HoldCo LLC and BSW HoldCo LLC that
provide for governance of all four jointly-controlled companies, as well as the mechanics of
project financing.
Eversource’s contribution to ESI to date has been provided in the form of inter-company debt
from Eversource. ESI has a revolving credit agreement with Eversource to facilitate the
issuance of intercompany debt.
Figures 6.1 and 6.2 provides a site plan of the Preferred Option, identifying the Lease Area,
offshore wind generation facilities, the OSS, OnSS and interconnection point, and export and
inter-array cables. The WTGs and array cable layouts are all confined within the Lease Area
and have been developed to optimize production, maximize safety during operations, and
minimize the environmental footprint. A ‘buffer area’ between the edge of the Lease Area
and the proposed WTGs and OSS has been included to ensure that all installation and
maintenance activities take place within the Lease Area, without impacting waters outside of
OCS-A 0500. This also ensures that no turbine winglets overhang outside the Lease Area
border. The export cable from the OSS to the OnSS also includes a buffer around it within the
Lease Area to allow effective and safe maintenance activities to be carried out should they
be needed. The proposed layouts do not overlap any known shipwreck, to both minimize
safety concerns and to protect cultural resources. Due to expected helicopter support during
operations, two helicopter corridors are considered for the OSS (one for take-off and one for
landing). These are aligned with the main wind direction so that pilots can safely fly in and
out. Finally, an additional buffer has been considered along the borders with the neighboring
lease areas. The purpose is to minimize wake effects between neighboring wind farms
thereby maximizing production from all potential operators for the overall benefit of the
Commonwealth.
Deployment facilities are identified in Section 10.1 (Figure 10.1).
A site plan for the OnSS is provided in Section 15.1 (Figure 15.4). A site plan for the battery
storage system is provided in Attachment 8-3.
These figures should be considered illustrative, with the exception of proposed onshore POI
and related facilities.
Assumed right of way width: Not included in Figure 6.1 as it has yet to be negotiated with
landowners, and permitted through appropriate federal and state agencies.
Total acreage: The export cable is ( ) long. The Phase I development area
(WTG layout) is approximately 30,090 acres in size. The OnSS site is acres and the
proposed interconnection corridor is long. All of this is depicted in the site
plans (Figures 6.1 and 6.2).
Anticipated interconnection point: Under the ETS, the Bidder will use Brayton Point and
Bourne as primary POIs. Each will serve 800 MW of the 1,600 MW capacity.
10 Documentation of re-assignment of the Lease to Ørsted (formerly DONG Energy) as well as a clarification on Lease
Lease from the Bidder to BSW ProjectCo LLC, the Bidder would proceed with constructing
and operating the Project—as well as signing PPAs—in its own name.
The export cable route as shown in Figure 6.1 is currently envisioned to cross federal,
Massachusetts State, and Rhode Island State waters before landing at the OnSS site. The
Lease provides for a Project Easement in Lease Addendum D which will grant the rights for
the location and operation of the cable to the boundary of Federal and State waters.
The Bidder proposes to build a new substation at this site. The export cable
from the proposed OSS will land and be terminated at the new OnSS site, at which power will
be stepped up from . Underground circuits will be installed to interconnect
the new OnSS with the existing 345-kV substation, owned by National Grid and located
approximately to the south, on land currently owned by
On November 9, 2017, the Bidder entered into an Option to Purchase Agreement (Option
Agreement) with the The Option Agreement gives the Bidder the
exclusive right to purchase this site, and is valid for an initial term of 18 months (the Option
Period). The Option Period may be extended for an additional 12 months.
To complete the interconnection between the new substation and the existing National Grid
substation, an easement will be required on lands formerly owned by to support
installation of underground duct bank, conduit, and cables. The Bidder anticipates that a
portion of the required easement will be co-located within an easement area held by National
Grid, in which overhead transmission facilities are currently operated and maintained.
The Bidder had previously considered siting its new substation facility on Dynegy property, at
the location of the former Brayton Point Generating Station. The Bidder initially contacted
representatives of Dynegy in March 2016 to open a dialogue intended to advance acquisition
of rights to the property. In June 2016, however, Dynegy informed the Bidder that it planned
to conduct a competitive solicitation to sell the Brayton Point site (300+ acres in total), and
that only bids to acquire the complete site, accepting any environmental liabilities/risks,
would be considered. Because the Bidder does not need 300+ acres, nor was it able to
properly characterize environmental conditions of the site (and liabilities related to such
conditions), it was not able to put forth a successful bid. As such, the Bidder pursued other
site alternatives, resulting in the Option Agreement for described above.
If Dynegy is able to complete the sale of its Brayton Point property, the Bidder expects to
work directly with the new owner to acquire the necessary easement rights described above,
to complete the interconnection to the National Grid Substation.
iii. Describe the status of acquisition of real property rights, any options in place for the exercise of
these rights and describe the plan for securing the necessary real property rights, including the
proposed timeline. Include these plans and the timeline in the overall project timeline.
The properties identified for the Project include both on- and off-shore components. The
Lease Area and export cable routes are currently used for recreational and commercial
boating activities; and will continue to be in use during construction and operation of the
Project. Potential impacts and mitigation for such impacts to marine and ocean uses in the
Project Area are addressed in Section 7.4.
In order to protect the public and the offshore assets of the Project, the Bidder will work with
the U.S. Coast Guard (USCG) to establish aids to navigation and Notices to Mariners, with
NOAA to map Project areas on nautical charts, and with local fishing and boating
organizations and community leaders during construction, as spotters and spokespersons
emphasizing the need to avoid use conflicts and maintain safety.
For onshore facilities at Brayton Point, the Bidder intends to construct the landing and
substation site entirely upon the in Somerset, Massachusetts. The
will be vacated in its entirety upon closing, and all existing buildings/structures will
be removed. As such, this site will be used exclusively in support of the proposed Project.
There will be no other/joint uses of the site. It is expected that any easements secured from
Dynegy (or subsequent owner), to complete the interconnection between substation facilities
will be made use-exclusive to the Bidder in order to protect public safety. As noted above, a
portion of the proposed easement will be co-located in an existing easement held by National
Grid, within which other transmission structures and uses will continue to exist. The Bidder
expects to coordinate closely with National Grid, through the ongoing ISO-NE Interconnection
Review process, and during negotiations to acquire said easement, to ensure that all existing
facilities can continue to be operated and maintained safely.
Offshore, the Project (i.e., the generation assets) will be located within the designated Lease
Area (Figure 6.1). A proposed export cable route is currently being assessed with regard to
environmental constraints and technical requirements. Once approved by BOEM in the COP,
the easements will be included in Addendum D of the Lease. As discussed in Section 6.2, the
export cable route will cross Federal, Massachusetts State, and Rhode Island State Waters
before landing at the OnSS site. The Bidder will receive the necessary state permits
(Massachusetts Chapter 91 Waterways License; Rhode Island Department of Environmental
Management [RIDEM] Easement Agreement) prior to construction. See Section 7.1 and
Attachment 7-1 for additional details on Project permitting.
Onshore, the portion of the site on which the Bidder will construct its substation and a
portion of its underground interconnection facilities is zoned Residential by the Town of
Somerset. Portions of the area for which an easement will be required for interconnection to
the existing National Grid substation facility are also zoned Residential, while other portions
are zoned Industrial. The National Grid substation is located on property zoned Industrial (the
Dynegy site).
Local zoning for the Town of Somerset is displayed in Figure 6.4. The current version of the
Town of Somerset Zoning By-Laws is provided in Attachment 6-3.
Section 4 of the Zoning By-Law sets forth Use Regulations within each of the Town’s zoning
districts, and Section 5 identifies applicable Dimensional Requirements by district. Section
4.2.6 of the By-Law discusses industrial uses and indicates where such uses are allowed by
district. This section specifically identifies electrical substations as a use that is allowable by
Special Permit within Residential district. The Planning Board is the Special Permit granting
authority in Somerset. This same section, 4.2.6, indicated that substations are an allowable
use within Industrial Districts.
Based on the foregoing, the Bidder expects to be required to obtain a Special Permit from the
Somerset Planning Board for construction of the proposed substation and associated
ancillary facilities (i.e., underground transmission interconnections) since those facilities will
be located, in part, in a Residential District. Facilities proposed to be built on land currently
held by Dynegy are allowable uses as these would be located in an Industrial District. The
Bidder will coordinate and work closely with local officials, including those responsible for
review and enforcement of local zoning requirements, and will endeavor to comply with local
zoning requirement and procedures. It is not anticipated at this time that zoning exemptions
under Massachusetts General Law (M.G.L.) Chapter 40A will be required, however, a final
determination to that effect will be made in due course, as the Project proceeds.
Permitting Plan and timeline:
Local zoning and floodplain information is not applicable for the offshore portions of the
Project. Permitting requirements including COP approval and receipt of a Massachusetts
Chapter 91 Waterways License and a RIDEM Easement Agreement, are described in Section
7.1. In general, the waters off of southern New England experience high levels of
commercial, military, and recreational vessel traffic. The Lease Area is to the north of the
Nantucket-Ambrose Traffic Separation Scheme (TTS) and to the southeast of the
Narragansett Bay and Buzzards Bay TTSs. Although there is some commercial traffic passing
through the Lease Area, the heaviest trafficked routes into and out of southern New England
waters are to the west and outside of the area proposed for the first phase of development.
Similarly, vessel trip report data illustrate that the areas with the highest levels of
recreational fishing activity are to the west of the Lease Area. Therefore, this is not expected
to conflict with the construction and operation of the Project. Existing waterway use in the
Project Area is further described in Section 7.4.
The site on which the Bidder proposes to construct its OnSS is currently owned by
Current uses of the site are related to
The site is bounded to the north by residential uses; to the east by largely undeveloped land
owned by Dynegy including an existing electric transmission corridor with structures/uses
maintained by National Grid; to the south by land owned by Dynegy (principally, the site of
the former Brayton Point Generation Station), and to the west by Lee River.
The Bidder proposes to construct underground transmission facilities to interconnect to
National Grid’s existing 345-kV substation on the Dynegy/Brayton Point site. The lands on
which these underground facilities will be constructed are owned by Dynegy (at present) and
would be partially co-located within the existing National Grid right-of-way that runs north
from the Brayton Point site.
According to published data by the Federal Emergency Management Agency (FEMA), portions
of the site on which the Bidder proposes to construct its OnSS and interconnection facilities
is within Zone (see Figure 6.5). This area is designated as a Special Flood Hazard Area,
which is an area subject to inundation during the 100-year flood event (i.e., 1 percent chance
of flooding on an annual basis). The Bidder will construct all facilities to withstand such
storm/flood events and to ensure the safe and reliable operation of its facilities.
The plan to obtain site control of the interconnection path is detailed in Section 6.2.
The Bidder filed for interconnection relatively early in the process and is significantly more
progressed than the other offshore wind queue positions involved in this RFP Process. On
August 1, 2016, the Bidder filed a Capacity Network Resource Interconnection Service
request with ISO-NE for the Project to interconnect 800 net MW capacity at Brayton Point in
Somerset, Massachusetts, under the ISO-NE Open Access Transmission Tariff Schedule 22-
Standard Large Generator Interconnection Procedures (LGIP). A copy of the interconnection
request confirmation is included as Attachment 6-4. The Bidder received Queue Position
ISO-NE completed its Feasibility Study for the Project’s interconnection at Brayton Point on
April 7, 2017. The Feasibility Study shows that the Bidder can connect up to 800 MW at the
Brayton Point POI with no system upgrades required. The Feasibility Study is Critical
Energy/Electric Infrastructure Information (CEII) and can be made available to persons with
the required clearance upon request. On September 4, 2017, ISO-NE started the System
Impact Study, which is slated for completion in Q1 2018.
ISO-NE performed an evaluation of the PNOI studies for Queue Position
Capacity Commitment Period, and issued its findings on March 24, 2017. The PNOI
Study is CEII and can be made available to persons with the required clearance upon
request. Based on the results of the PNOI Study no system upgrades were assumed.
The Bidder encourages the Evaluation Team to request that ISO-NE provide the PNOI Study
and Feasibility Study to the Evaluation Team in accordance with Section 1.7.4.1 of the RFP.
To date ISO-NE has completed the project Feasibility Study and PNOI Study. The Feasibility
Study and PNOI Study are CEII and can be made available to persons with the required
clearance upon request. The Bidder encourages the Evaluation Team to request that ISO-NE
provide the Feasibility Study and PNOI Study to the Evaluation Team in accordance with
Section 1.7.4.1 of the RFP.
ISO-NE started the System Impact Study on September 4, 2017 and expects to complete it in
Q1 2018. The Feasibility Study, based on N-1 and N-1-1 thermal and voltage analysis, shows
that the Project can interconnect 800 MW to the POI at the Brayton Point 345-kV Substation
without any upgrades to the transmission system. The Feasibility Study also assessed the
performance of the wind farm start-up, power factor requirements, and short-circuit
requirements. During startup, the windfarm does not violate any high or low voltage criteria.
The power factor analysis shows the windfarm fully meets the power factor requirements of
the LGIA Appendix G. The short-circuit analysis showed no significant impact on the ISO-NE
grid circuit breaker duty as a result of interconnecting the Project.
After completion of the System Impact Study the Bidder will submit, in Q1 or Q2 2018,
Proposed Plan Applications for Project I.3.9 approval. Based on the ISO-completed Feasibility
Study the Bidder expects no upgrades to the ISO-NE transmission system, aside from
expanding the Brayton Point 345-kV Substation. However, if the System Impact Study
identifies any upgrades, the Bidder, after review of the System Impact Study results, will
submit together with the Transmission Owner additional Proposed Plan Applications for the
required upgrades on the transmission system and will commit to construct such required
upgrades.
Upon completion of the System Impact Study, the Bidder may request ISO-NE to undertake a
Facilities Study. A Facilities Study will provide the detailed costing estimates of the network
upgrades which National Grid must build at Brayton Point, the decision will not be made until
the completed System Impact Study has been reviewed with ISO-NE. If the Facilities Study is
waived, the Bidder can begin working towards signing a LGIA after the System Impact Study.
If successful, the Bidder expects to execute an LGIA in .
The PNOI Study is discussed in Section 6.15.
Large offshore windfarms undertake harmonic studies to determine the level of harmonic
distortion within the windfarm interconnection facilities and at the onshore POI. Harmonic
assessments are required to determine if harmonic filters are required and if so, their
technical specifications. To undertake a harmonic assessment Bay State Wind has engaged
National Grid to begin a harmonic measurement campaign at the onshore POI at Brayton
Point in order to record the background harmonic measurements. This is required for the
harmonic assessment and to complete a harmonic filter design.
In addition to which is currently at the System Impact Study assessment stage with
ISO-NE, the Bidder has also filed an additional Interconnection Request for 880 MW in the
Cape Cod area with a POI at the Eversource Bourne 115-kV Substation, with the Canal 345-
kV Substation as a backup POI. A copy of the interconnection request confirmation is
included as Attachment 6-1 which was assigned Queue Position This second
Interconnection Request is for use as part of the ETS which is described in more detail in
Section 6.13 and Section 15, or may be used for future RFP solicitations. The Bidder has
elected for ISO-NE to perform a Feasibility Study for which ISO-NE has said is
expected to be studied in Q3 2018. Since the ISO-NE Feasibility Study could not be
performed in time for submission with this proposal, performed, for the
Bidder, an independent feasibility type study for However, ISO-NE did complete a
Preliminary Non-Binding Overlapping Impact Analysis (PNOI) for which showed that
no transmission elements are overloaded for each scenario evaluated. The PNOI Analysis
report is CEII and can be made available to persons with the required clearance upon
request.
ISO-NE started the System Impact Study on September 4, 2017. The scheduled completion
is Q1 2018. The feasibility study has been completed and this shows the project can inject
800 MW to the POI at the 345-kV Brayton Point Substation without any network upgrades
required and no adverse impact to the reliability of the onshore system. A description of the
ISO-NE studies is provided in Sections 6.6 and 6.7. The feasibility study includes all prior
queued projects; hence earlier queued projects are not impacting the bidder. If withdrawal of
an earlier queued project were to impact the interconnection request, the bidder will make
the necessary upgrades required.
The ISO-NE has completed the project Feasibility Study (on April 7, 2017) and PNOI Study (on
March 24, 2017). The Feasibility Study results show that based on N-1 and N-1-1 thermal
and voltage analysis the Project can interconnect 800 MW to the POI at National Grid’s
Brayton Point 345-kV Substation without any upgrades and adverse impact to the onshore
transmission system. The Feasibility Study also assessed the performance of the wind farm
start-up, power factor requirements, and short-circuit requirements. During startup, the
windfarm does not violate any high or low voltage criteria. The power factor analysis shows
the windfarm fully meets the power factor requirements of the LGIA. The short-circuit analysis
showed no significant impact on the grid circuit breaker duty as a result of interconnecting
the wind farm. The Feasibility Study technical assumptions are described in the study report.
The Feasibility Study evaluated a 2021 transmission system representation. Steady state
analyses were completed for summer peak, shoulder and minimum load levels based on the
NEPOOL 2016 Capacity, Energy, Load and Transmission (CELT) Report, issued in May 2016.
The feasibility study includes all relevant prior queued planned projects. The non-binding cost
estimate to expand the 345-kV Brayton Point Substation in order to interconnect the Bidder’s
project ( is . This cost estimate, provided by National Grid, is in current
year (2017) dollars with (-50 percent/+200 percent) accuracy. The bidder does not have
additional cost estimate details.
If an earlier queued project were to withdraw this would in general result in less thermal
stress on the transmission system in the area. Therefore no adverse thermal impact would
be expected. Also, the Project has adequate voltage control capability and therefore the
withdrawal of an earlier queued project would have no adverse impact on the Bidder’s
project. However, if the withdrawal of an earlier queued project were to impact the
interconnection request, the bidder will make the necessary upgrades required. The Bidder is
not expecting any impact on the interconnection costs from the withdrawal of an earlier
queued project.
The Project has significant dynamic reactive capability and the bidder is not expecting the
System Impact Study to result in any required upgrades to the transmission system.
However, if any such required upgrades are identified in the presently ongoing System
Impact Study the Bidder will commit to making such required upgrades.
In general the Feasibility Studies and the System Impact Studies are performed in
accordance with the Network Capability Interconnection Standard (NCIS), where local
generation displacement is acceptable. In these two studies the Bidder selected for Capacity
Network Resource Interconnection Service (energy capability and capacity capability).
ISO-NE has also completed, in accordance with the Capacity Capability Interconnection
Standard, a PNOI Study for Brayton Point. In the PNOI Study three generation dispatch and
system configuration scenarios were evaluated. Scenarios #1 and #2 did not include the
SEMA/RI area identified system upgrades and were therefore not further considered.
Scenario #3, which included the preferred transmission system upgrades identified in the
recently completed wide area SEMA/RI study, identified potential minor overloads (3
percent) on two 345 kV overhead transmission lines. The rating of these two 345 kV lines will
need to be verified since the ratings used in the PNOI Study for these two lines may be sag
limited. The 3 percent overloads on these two lines was due to a single stuck breaker
contingency at the West Farnum Substation. As described on Page 10 in the Notes Section of
the ISO-NE PNOI Study report, under less conservative stressed system conditions, the
violations identified in Scenario #3 may not be an issue. Therefore, based on the above
considerations no significant network upgrades were assumed for the purpose of
participating in the FCM.
ISO-NE has not notified Bay State Wind of any interconnection request process changes
while the project has been under study. If any process changes are proposed by ISO-NE Bay
State Wind will complete any necessary studies per ISO-NE requirements. Accordingly, since
there is not an alternative interconnection scenario being provided at this time, there are not
additional studies using the proposed ISO-NE-process applicable for integration into the
proposal.
Furthermore, if additional studies are necessary, ISO-NE does have an ongoing process
whereby interconnection requests that are submitted within 180 calendar days of each other
may be studied as part of a cluster study, allowing the studies to be completed in parallel as
opposed to sequentially in order to speed up the study process. This is not applicable to the
Project because the System Impact Study has already commenced without any involvement
of other queue positions. The Feasibility Study is CEII and can be made available to persons
with the required clearance upon request. The Bidder encourages the Evaluation Team to
request that ISO-NE provide the Feasibility Study to the Evaluation Team in accordance with
Section 1.7.4.1 of the RFP.
Electrical models are proprietary to a third-party WTG manufacturer and the Bidder has a
limited right of use. The Bidder is not authorized to release these models to the Evaluation
Team. If the Evaluation Team needs access to these models, the Bidder will help applicable
parties obtain access to such documents pursuant to a multi-party non-disclosure
agreement.
A one-line diagram for the Preferred Option’s transmission system is provided as Figure 6.6
and Attachment 6-6. In the diagram, WTGs are abstracted and do not appear, and the
diagram is oriented with the array system at the bottom and grid interconnect at the top.
A full description of the planned interconnection facilities is provided in Section 8.1 and
Section 15.1.
In the Preferred Option, the proposed Project will consist of the following major components:
Wind Farm Array System and WTGs –
. The individual WTG size and total number of WTGs may change in order to optimize
Project cost and performance. However, the total generation delivered at the Brayton Point
345-kV Substation will remain at 400 MW. Each WTG will be equipped with its own dedicated
generator step-up transformer. These transformers have a no-load tap changer.
Refer to Section 8.1.2 for further information on the WTGs. The individual WTGs and their
generator step-up transformers will be connected to a submarine array cable network,
which will terminate at an OSS. Section 8.1.4 provides further information on the array
cables.
OSS – The OSS contains the transformers and switchgear required to connect the array
cables and transform the voltage up to kV for export to shore. For the 400 MW
generation to Brayton Point, the OSS will consist of
transformers; each transformer will have switchgear sections ( in total), with
submarine cables terminating at each switchgear section ( ).
There are installed to
compensate for the export cable charging current. The transformers will be
interconnected with tie switches. Section 8.1.7 and Section 15.1
provides further information on the OSS.
kV Circuit – circuit will connect the OSS to a new OnSS, with each
circuit connecting 400 MW of offshore WTGs. The circuit will consist of a
submarine cable portion, approximately long, and an underground cable
portion (the length will depend on routing). The circuit will have approximately
which will be compensated by
Section 8.1.5 provides
further information on the export cable.
OnSS – A new onshore air insulated substation will be constructed to terminate the
circuit from the OSS. The OnSS will consist of the following equipment:
submarine/underground circuit from the offshore wind generation
switchgear housing circuit breakers and disconnect switches
fixed shunt reactor
variable shunt reactor
harmonic filter
STATCOM
30-MW with 60-MWh Battery Energy Storage Device
transformers equipped with load tap changers
The two halves of the 400-MW OnSS will be connected with a
will connect the new OnSS to the 345-kV Brayton Point
Substation.
Section 8.1.8 provides further information on the OnSS.
Brayton Point 345 kV Substation Upgrades – The upgrades of the existing Brayton Point 345-
kV Substation are subject to the System Impact Study not yet finalized by ISO-NE. The
Feasibility Study, also performed by ISO-NE prior to the System Impact Study, shows that
Brayton Point 345-kV Substation will be expanded with a number of 345-kV gas-insulated
system bay positions. This will include the installation of new circuit breakers at the Brayton
Point 345-kV Substation. The underground cables from the new OnSS will terminate at the
new bay(s) at the Brayton Point 345-kV Substation.
Upgrades to the Existing ISO-NE Transmission System – Aside from the upgrades required at
the Brayton Point 345-kV Substation, no other system upgrades will be required.
Voltage Control – The WTG step-up transformer no-load tap will be set at 1.015 pu boost,
based on the Feasibility Study conducted by ISO-NE. A power plant controller will dispatch the
WTG reactive power in order to regulate the voltage at the OSS to . The
transformers at the new OnSS will be equipped with load tap changers which will control the
voltage at the bus.
IDV file are provided as Attachment 6-7. The IDV files are suitable for steady state analysis of
the windfarm.
2. If the Bidder does not use PSSE, provide in text format necessary modeling data as follows:
Line Data:
Voltage: Thermal Ratings:
Impedances (r, X and B)
Line Length/to and from bus numbers and names
Not applicable; data for the line characteristics and electrical properties are provided as IDV
file in Attachment 6-7.
- Transformer data: (including Phase shifting transformers if applicable):
Terminal Voltages: Thermal Ratings:
Impedance
From: To:
(bus numbers and names)
Not applicable; data for the onshore and offshore transformers are provided as IDV file in
Attachment 6-7.
- Reactive compensation models as necessary
Not applicable; data for the reactive compensation are provided in the IDV file in Attachment
6-7.
- Other changes to the model that would occur due to a Project such as terminal changes for
lines/transformer/generator leads/loads etc.
The IDV file provided in Attachment 6-7 represents the offshore windfarm electrical system
for steady state analysis. No changes to the existing onshore electrical system are necessary,
subject to the results of the ISO-NE feasibility study discussed in Section 6.7.
The energy provided by the Bidder is able to be delivered to the EDCs without material
constraint or curtailment as studied in the ISO-NE Feasibility Study and System Impact Study
and described in Section 6.7.
ISO-NE has completed a PNOI Study for Brayton Point in accordance with the capacity
capability interconnection standard (CCIS), and issued its findings on March 24, 2017. The
ISO-NE PNOI Study modeled three generation dispatch and system configuration scenarios.
Scenario #3 included the preferred transmission system upgrades identified in wide area
SEMA/RI study recently completed. Scenarios #1 and #2 did not include the SEMA/RI area
identified upgrades and were therefore not further considered. In Scenarios #3 the PNOI
Study identified two minor overloads (3 percent) on two 345 kV overhead transmission lines.
The rating and possible mitigation for these two lines will need to be verified. Also, under less
conservative stressed system conditions, the violations identified in scenario #3 may not be
an issue. Therefore, based on the results of the PNOI Study, it is not expected that any
network upgrades will be required for the Project to connect at the CCIS.
The PNOI Study is Critical Energy/Electric Infrastructure Information (CEII) and can be made
available to persons with the required clearance upon request.
The Bidder encourages the Evaluation Team to request that ISO-NE provide the PNOI Study
and Feasibility Study to the Evaluation Team in accordance with Section 1.7.4.1 of the RFP.
Additional detail on the Bourne POI and associated studies is provided in Attachment 6-1.
In addition, the integration of a battery system as proposed herein will further ensure that the
Bidder will be able to deliver the contemplated energy without material constraint or
curtailment.
The proposed point of delivery at Brayton Point is sufficient to ensure full dispatch of the
Project’s generation profile without any system upgrades. The existing 1.5 GW coal power
station at Brayton Point was shut down in May 2017; this frees up sufficient capacity for the
Project. This is supported by the results of the Feasibility Study performed by ISO-NE, as
described in Section 6.7, and further detailed below.
ISO-NE completed a comprehensive Interconnection Feasibility Study for in the spring
of 2017. The Feasibility Study evaluated steady-state thermal and voltage performance of
the ISO-NE transmission system following N-1 (single contingency events) and N-1-1 (two
independent contingency events). The analysis was performed in accordance with NPCC and
ISO-NE transmission planning standards. The study results showed no violations of voltage or
thermal reliability criteria and no violations of ISO-NE line-out criteria with the proposed
Project delivering up to 800 MW at the Brayton Point POI.
To be conservative, the two Preferred Option Project STATCOMs were modeled out of service
in the steady state voltage and thermal analysis. This approach was taken to demonstrate
that the Project has sufficient reserve reactive power capability, which is further assessed in
ISO-NE’s System Impact Study. The additional reactive power reserve capability modeled in
the Feasibility Study will ensure that the results of ISO-NE’s System Impact Study will not
require the Project to incorporate additional equipment to meet acceptable dynamic system
performance.
The steady-state analysis evaluated the Project impact on the New England transmission
system reliability performance at summer peak, shoulder, and minimum load levels. Heavy
transfers in and out of SEMA and Rhode Island were used to stress the Project area.
The following dispatches were tested:
Peak Load with high SEMA/RI Import
Peak Load with high West to East Transfers
Shoulder load with high SEMA/RI Export
Minimum load for HV stress
In all cases, the Project was dispatched against western Massachusetts generation remote
to the Brayton Point study area.
The Feasibility Study results showed no violations of voltage or thermal reliability criteria. As
well, the Feasibility Study determined that the Project meets the power factor requirement at
the POI in accordance with the Appendix A requirements of the LGIA.
A short-circuit assessment was also performed as part of the Feasibility Study to determine
the Project’s impact on the transmission system fault current levels and breaker duty. The
short-circuit study found no significant impact as a result of interconnecting the Project at the
345-kV Brayton Point Substation.
The Feasibility Study further assessed the start-up sequencing of the Project to demonstrate
the Project would not violate voltages at the 345-kV Brayton Point Substation during Project
startup. The assessment confirmed that voltages would not be violated.
The Feasibility Study also performed a project collector system analysis to demonstrate that
the settings of the WTG voltage control, WTG transformer taps, offshore and onshore load
tap changer taps, variable shunt reactor taps, and STATCOM voltage control were selected
for optimum performance.
The results of the Feasibility Study, with some possible adjustments, are generally used in
the steady-state portion of the ISO-NE System Impact Study. Therefore, the results of the
Feasibility Study are a very good indication that the Project will have no impact on the steady-
state performance of the ISO-NE transmission system.
The Bidder received The Bidder has signed Conditional upon PPA
the industry-first a Memoranda of award, the Bidder is
approval of a Site Understanding with committing more than $2
Assessment Plan by Massachusetts Maritime million to support New
Academy, Bristol England’s preeminent
the Bureau of Ocean
Community College, Action institutions with
Energy Management
for Boston Community collaborative research and
in June 2017, and
Development, South Shore programmatic initiatives
deployed two FLiDARs
Community Action Council, to protect the region’s
and a wave buoy
International Brotherhood indigenous fisheries and
to collect valuable of Electrical Works, and whale populations.
wind resource and others.
metocean data.
Deployed FLiDAR Buoy
Section 7 Environmental Assessment, Permit Acquisition Plan and New Class I RPS Certification
The permit matrix included in Attachment 7-1 lists the permits, licenses, and environmental
assessments and/or environmental impact statements required to construct and operate the
Project, and identifies the regulatory agencies responsible for issuing approval of same. The
list also details the status relating to any permit applications or permits that have been
secured by the Project at this stage.
Furthermore, the schedule provided in Section 9 is based on a robust understanding of the
necessary permits, licenses, environmental assessment and/or environmental impact
statements required for construction and operation of the Project. This understanding is
informed by consultation with federal and state regulatory agencies, previous environmental
assessment experience (see Section 7.3), and a thorough review of the U.S., Massachusetts
and Rhode Island regulatory framework.
The Bidder has reviewed federal, state, and local permitting requirements to identify the
applicable regulatory framework for the construction and operation of an offshore wind
energy project. As detailed in Sections 7.3 and 7.5, the Bidder has extensive experience in
permitting projects of similar complexity and has undertaken significant activities in
advancing the permitting process ahead of responding to this RFP. A summary of milestones
achieved to date is provided in Table 7.1.
Table 7.1
278B Timeline of Completed Project Activities and Milestones
Activity/Milestone Date
Lease OCS-A 0500 went into effect April 1, 2015
12-month extension of the Preliminary Term granted by BOEM April 27, 2016
Submitted SAP Survey Plan June 16, 2016
SAP Survey Plan accepted by BOEM August 10, 2016
Completed preliminary site assessment activities including geophysical and September – October
geotechnical surveys 2016
Submitted SAP to BOEM 20 December, 2016
Interagency kick-off meeting with federal and Massachusetts and Rhode Island February 7, 2017
state agencies as well as the Federally Recognized Tribes
Submitted COP Survey Plan February 28, 2017
Submitted Cable Route Survey Plan, Avian Survey Protocol, and Marine Mammal March – April 2017
& Sea Turtle and Fisheries Baseline Characterization Approach Memos
SAP was approved June 29, 2017
Deployed FLiDARs to assess meteorological conditions at Lease Area in support July 8, 2017
of Project engineering and design
Completed avian surveys across the Lease Area May – October 2017
Completed export cable route reconnaissance survey May – October 2017
Completed reconnaissance wetlands and cultural resources surveys at Brayton Point August – September 2017
The complete timeline for seeking and obtaining all required permits, licenses, and
environmental assessments and/or environmental impact statements is detailed in Section 9.1
and is summarized below in Table 7.2. The Bidder anticipates approval of the COP with BOEM’s
Record of Decision in ; however, all permits and approvals will not be received until
given that certain permits can only be issued 6 months before the start of construction.
This projection is based on multiple factors including engagement with the regulatory community,
understanding of the federal and state permitting process, milestones achieved to date, as well
as Ørsted’s and Eversource’s experience in conducting environmental impact assessments and
permitting complex projects.
Table 7.2
279B Projected Timeline for Receipt of Project Permits, Licenses, and Environmental Assessments
and/or Environmental Impact Statements
Activity/Milestone Date
1Note that certain federal and state agency approvals have a statutory “start” date such that receipt of approval must be timed to
within 6-12 months of start of construction even if the materials needed to support permit application are available.
The permitting process is comprehensive with multiple agencies and other stakeholders
involved at the federal, state, and local level. A matrix of applicable regulations and permits,
including the current status and/or anticipated date of receipt, is provided in Attachment 7-1.
The applicable federal and state regulatory requirements for development within the Lease
Area and interconnection in Massachusetts are summarized in Attachment 7-4.
The Bidder’s Owners, Ørsted and Eversource, have extensive experience in permitting of
complex infrastructure projects across Europe and New England, including the undertaking
of Environmental Impact Assessments (EIAs) as part of the development process.
Ørsted has a proven track record for successfully leading the development process including
EIA work involving approximately 25 offshore wind farm projects. The extensive experience
Ørsted brings to the Project team through producing or managing the EIA or being the
responsible lead for obtaining or amended existing permits for construction and/or operation
of offshore wind projects across Europe is illustrated in Figure 7.1 and Table 7.3.
Figure 7.1 Projects where EIA or Major Permitting Work was carried out by Ørsted
Table 7.3
280B Ørsted Experience in Permitting Offshore Windfarms
Permit Capacity Construction
Project Country approval Ørsted permitting involvement (MW) Completed
Vindeby DK 1990 First-ever offshore windfarm in the world. 4.95 1991
Project was successfully decommissioned by
Ørsted in 2017.
Middelgrunden DK 1999 Ørsted responsible for permitting process 20 2000
for the WTGs located close to
Copenhagen.
Horns Rev 1 DK 2001 Ørsted responsible for permitting process. 160 2002
Nysted DK 2001 Ørsted responsible for permitting process. 166 2003
Horns Rev 2 DK 2005 Ørsted responsible for permitting process. 209 2009
Avedøre DK 2008 Ørsted responsible for permitting process 7 2009
for intertidal-based WTGs.
Gunfleet Sands UK 2004 Ørsted responsible for permitting process 108 + 65 2011
1+2 for offshore and onshore parts of the
development.
Walney 1+2 UK 2008 Ørsted responsible for permitting process 184+ 184 2012
for offshore and onshore parts of the
development.
London Array UK 2006 Ørsted responsible for permitting process 630 2012
1 for offshore and onshore parts of the
development.
Anholt DK 2010 Consent provided by Authority. Ørsted 400 2013
responsible for specific stakeholder
agreements (e.g. with fisheries) and
environmental monitoring.
Gunfleet Sands UK - Ørsted responsible for permitting process 12 2013
III Demo for offshore and onshore parts of the
demonstration project.
West of UK 2008 Ørsted responsible for permitting process 389 2014
Duddon Sands for offshore and onshore parts of the
development.
Borkum DE 2004/ Permitted by other developer. Ørsted 312 2015
Riffgrund 1 2014 applied for amendment of existing consent
to allow for the first-ever suction buckets in
Germany. Successfully managed challenging
noise requirements during construction.
Westermost UK 2012 Ørsted achieved amendment of existing 210 2015
Rough consent under the Section 36 regime to
allow for bigger WTGs. Achieved local
planning consent for OnSS at very short
timescale.
Gode Wind DE 2013 Ørsted applied for amendment of existing 332+252 2016
I+II consent to allow for bigger WTGs.
Successfully managed challenging noise
requirements during construction.
Similarly, Eversource has experience in the development of large, complex energy projects
that require robust EIAs. Over the past 10-15 years, Eversource has planned, designed,
permitted, and constructed over $2.8 billion of major transmission upgrades in southern
New England. Eversource has developed extensive relationships with local, state, and federal
agencies with whom it is necessary to work to successfully site and permit such projects, and
is intimately familiar with the regulatory framework in the New England states. Table 7.4
provides an overview of several illustrative projects for which Eversource was required to
complete the robust EIA process with either federal and/or state oversight.
Four of the five projects highlighted below are interstate transmission projects. These
projects demonstrate Eversource’s experience in completing permitting and siting efforts for
multi-State projects and is directly applicable to the Bidder’s proposed solution. This
experience demonstrates Eversource’s ability to complete these processes successfully, and
to secure approvals/authorizations that are consistent across multiple jurisdictions.
Relying on these strengths, the Bidder is supported by a very experienced team, combining
permitting and EIA expertise and knowledge from the European wind markets with local
knowledge of the regulatory regime and the EIA process in the U.S.
Table 7.4
281B Eversource EIA Experience – Project Highlights
Environmental Permitting Scope Permit / Siting Challenges Outcome/Status
Martha’s Vineyard Hybrid Submarine Cable Project – Construction of a 4.5-miles (7.2-km)-long cable across Vineyard Sound from Falmouth MA to
Tisbury MA. This was a first-of-its-kind collaboration between Comcast and NSTAR.
• National Environmental Policy Act (NEPA) review by • First infrastructure project permitted • Successful installation on time and on
lead federal Agency (U.S. Army Corps of Engineers under the Massachusetts Ocean budget
[USACE]) Management Plan (implemented on Dec 31, • Avoided protected eelgrass beds
• Section 106 consultation with Massachusetts Historical 2009) • Awarded the Environmental Business
Commission and Bureau of Underwater Archaeological • Underwent three project siting reviews Council’s Nicholas Humber
Resources (BUAR) (DPU, Cape Cod Commission, and Environmental-Energy Award for
• Section 401 Water Quality Certification by the MADEP Martha’s Vineyard Commission DRI Outstanding Collaboration (2013)
• M.G.L. Chapter 91 Waterways Licensing from MADEP review)
• Massachusetts Environmental Policy Act (MEPA) review, • Collaborative effort with Comcast Cable
including preparation of Draft and Final Environmental company
Impact Reports (EIRs) • Traversed busy public ferry service route
• Massachusetts Department of Public Utilities (DPU) during installation
Siting Division Section 72 License • Protected eelgrass beds along shoreline
• Consultation with Massachusetts Office Coastal Zone
Management and review under the Massachusetts
Oceans Management Plan
• Consultation with Massachusetts Division of Fisheries &
Wildlife’s Natural Heritage & Endangered Species
Program (NHESP)
• Consultation with Massachusetts Division of Marine
Fisheries
• Cape Cod Commission Development of Regional Impact
(DRI) review
• Martha’s Vineyard Commission DRI review
• Local Conservation Commission approval under the
Wetland Wetlands Protection Act
The Bidder views community engagement as a critical and integral part of the siting and
development process and, as such, it is closely connected to such work streams as
environmental permitting and supply chain development. Since the announcement of the
Project in September 2015, the Bidder has undertaken a comprehensive public engagement
and media campaign.
13 http://www.mass.gov/governor/press-office/press-releases/fy2017/governor-baker-signs-comprehensive-energy-
diversity-law.html
14 https://www.nwf.org/News-and-Magazines/Media-Center/News-by-Topic/Global-Warming/2016/09-06-2016-MA-
Offshore-Wind-Power-Takes-Another-Step-Forward.aspx
As discussed above, the Bidder’s initial outreach and engagement has resulted in letters of
support for the Project from several individuals and organizations, as identified in Table 7.6.
Copies of these letters are included in Attachment 7-6.
Table 7.6
283B Project Support Letters
Organization Individual
Action for Boston Community Development John Wells, Vice President, Real Estate & Energy
(ABCD) Services
Action, Inc. Elliott Jacobson, Vice President for Energy Services
Bristol Community College (BCC) Laura L. Douglas, President
Cape & Vineyard Electric Cooperative, Inc. Leo Cakounes, President
Cape Cod Chamber of Commerce Wendy K. Northcross, Chief Executive Officer
House of Representatives Representative Antonio F.D. Cabral, 13th Bristol
District
House of Representatives Representative Dylan Fernandes, Barnstable,
Dukes, and Nantucket District
House of Representatives Representative Patricia A. Haddad, 5th Bristol
District
House of Representatives Representative Paul A. Schmid, 8th Bristol District
Immigrants’ Assistance Center, Inc Helena DaSilva Hughes, Executive Director
Massachusetts Senate Senator Julian Cyr, Cape and Islands District
Massachusetts Senate Senator Mark Montigny, Assistant Majority Leader,
Second Bristol and Plymouth District
Massachusetts Senate Senator Michael J. Rodrigues, First Bristol and
Plymouth District
New Bedford Economic Development Anthony R. Sapienza, Chair, Board of Directors
Council
New Bedford Wind Energy Center Paul L. Vigeant, Managing Director
New England Aquarium Scott D. Kraus, VP, Senior Science Advisor
People Acting in Community Endeavors Bruce Morell, Executive Director
(PACE), Inc.
South Shore Community Action Council Daniel Shannon, President, Board of Directors
(SSCAC), Inc.
SouthCoast Chamber Rick Kidder, President/CEO
The Lobster Foundation of Massachusetts Mike Bartlett, President
Town of Aquinnah James Newman, Chairman, Aquinnah Board of
Selectmen
United Way of Greater New Bedford Michelle N. Hantman, President/CEO
Survey Plan was accepted by BOEM on August 10, 2016 and the SAP was approved on June
29, 2017 after completion of preliminary site assessment activities in September/October
2016. Notably, this marked the first time BOEM has ever approved a SAP for offshore wind
development, and the agency commended this milestone as “a pioneering effort”. With SAP
approval completed, the Bidder successfully launched two FLiDAR buoys and a wave buoy in
July 2017 and is now collecting metocean data in the Lease Area that will be used in the
development and design of the proposed wind farm.
The Bidder has engaged with BOEM, NOAA NMFS, U.S. Fish and Wildlife Service, MADEP,
Massachusetts Department of Marine Fisheries, BUAR, MHC, Rhode Island Coastal
Resources Management Council, Rhode Island Department of Environmental Protection, RI
HPHC and other state and local agencies, as well as the Tribes, regarding site
characterization and assessment plans for specific resources. In February 2017, the Bidder’s
permitting team met with federal and state regulatory agencies in Boston to:
introduce the Bidder’s project and permitting team;
outline the key components of the development process, scope, project definition,
and timeline;
review the proposed survey rationale and methodology for site and resource
characterization;
gain a common understanding of the agencies’ and developer’s roles,
responsibilities, objectives and information needs; and
seek regulatory agency input and agree on next steps.
The meeting was the first opportunity to meet with the regulatory community critical to the
success of the Project and engage in constructive dialogue about the Project scope and the
road ahead. Subsequently, the Bidder has continued to engage with federal and state
regulatory agencies regarding specific survey protocols and the Project’s approach to the
COP as well as providing updates on Project status. An overview of our engagement efforts
with the regulatory agencies is provided in Attachment 7-7. The Bidder anticipates working
closely with federal and state regulators throughout the Project development process.
Tribal Nations: The Bidder has identified the three federally recognized tribes in
Massachusetts and Rhode Island (Mashpee Wampanoag, Wampanoag Tribe of Gay Head
[Aquinnah] and the Narragansett Tribe) and has developed a special engagement program
relating to Tribal interests. Additionally, the Bidder is committed to following direction
provided in the Renewable Energy Program Regulations (30 CFR 585), Section 106 of the
National Historic Preservation Act, and in the terms and stipulations of the Lease, which
require engagement with the Tribes and consideration of Tribal interests. The Bidder has
conducted the necessary pre-survey meetings and has engaged with a Qualified Marine
Archaeologist to review the potential for impacts associated with site assessment activities
completed to date. Although not required by the Lease, the Bidder has also reached out to
the Tribes to present survey results. Additionally, the Bidder is actively engaged in exploring
other opportunities to support Tribal initiatives related to cultural resource investigations. An
overview of outreach with the Tribal Nations is included in Attachment 7-8.
Environmental groups: The Bidder has engaged and consulted with several major national
and regional environmental organizations (including Natural Resources Defense Council,
National Wildlife Federation, International Fund for Animal Welfare, and Conservation Law
Foundation) on a number of occasions to understand the issues, exchange data and
information and discuss the proposed approach to data collection and impact assessment
relating to the protection of North Atlantic Right Whales and other protected marine mammal
species found off the northeast Atlantic coast and, more specifically, within the Lease Area
and close proximity. To support this effort, the Bidder participates in externally-led initiatives
including the ad hoc Habitats Working Group established by the Massachusetts Office of
Coastal Zone Management (in collaboration with the Mass CEC, the American Wind Energy
Association’s (AWEA’s) Offshore Committee, and BOEM. Semi- monthly meetings have been
held to gather input, hear concerns, and share updates regarding the Bidder’s plans and
activity status. In addition, the Bidder has and will have opportunities to engage with
representatives of these organizations at marine science conferences including
OCEANOISE2017, the Biennial Conference on the Biology of Marine Mammals, and the North
Atlantic Right Whale Consortium annual meeting as well as industry-specific conferences
sponsored by AWEA. The Bidder will continue to engage in the semi-monthly meetings as well
as meet one on one with representatives of these organizations as opportunities allow.
On a going forward basis, and conditional upon PPA award, Bidder is making a major
resource commitment towards the support of New England’s preeminent research,
philanthropic, educational and advocacy institutions in implementing a portfolio of
collaborative research and programmatic initiatives for the protection the region’s indigenous
whale populations. This multi-year commitment will be comprised of the following elements:
1. Woods Hole Oceanography Institute (WHOI) ($500,000, multi-year)
Bay State Wind will fund a technology advancement/study for development and
improvement of real-time detection systems for right whales for potential use during
construction. This will include utilization of digital acoustic monitoring buoys and
slocum gliders and potentially include an oceanographic sensor suite. The system will
be linked to the Whale Alert system. See Attachment 7-10 for a Letter of Support
from WHOI.
2. New England Aquarium Right Whale Project/Lobster Foundation of Massachusetts
($500,000; multi-year)
Bay State Wind will provide financial support to the New England Aquarium Right
Whale Project and to the Lobster Foundation of Massachusetts for use in mitigating
right whale gear entanglements. The funding is conditional on full cooperation and
approval of all project spend between the two organizations and additional approval
establishes the protocol by which construction contractors will work with IBEW local unions,
and to prioritize the use of Massachusetts-based union workers. If Bay State Wind is the
selected Bidder under the current RFP, the PLA will be included in all relevant contracts
between the Bidder and construction contractors, and all construction contractors will be
required to sign onto and accept the terms of the PLA.
Further recognizing that certain offshore work requires specialized skills and experience, and
that a shortage of such skilled workers currently exists in Massachusetts, the Bidder and the
IBEW have also entered into an MOU to accompany the aforementioned PLA. This MOU
establishes a mutual commitment between the Parties to collaborate in the development of
a training program to help developed a skilled labor force to support offshore wind
construction in Massachusetts. Both the proposed Project, assuming the Bidder is
successful, and the growing offshore wind industry in Massachusetts (and likely beyond) can
be expected to reap the benefits of such a training program.
The PLA and MOU documents can be amended to allow other trade groups/organizations to
become Parties as the Project advances.
Universities and research institutions: The Bidder has undertaken several separate but
interrelated initiatives with area universities and institutions to support workforce
development, training, and primary research in offshore wind-related fields of study:
1. Massachusetts Maritime Academy (MMA)
The Bidder has entered into an MOU with the MMA, a fully accredited, four year, co-
educational state university offering Bachelor and Master of Science degrees that are
highly regarded in the worldwide maritime industry and beyond. As the MOU attests,
the partnership between the Bidder and MMA will serve as a vehicle for “building a
strong workforce development system aligned with state education policies and
economic development goals. This partnership will focus on gateway communities to
ensure educational academic opportunities for K-12 students, technical training and
hiring of skilled workers in the emerging U.S. offshore wind industry, and provide
citizens with knowledge, skills, and education to be well trained members of the
community who are afforded the opportunity to apply for and retain competitive jobs,
high wages, social mobility and satisfying careers.” The Bidder has made an
unconditional grant of $25,000 for 2018 to support scholarships to underprivileged
students who come from Gateway Cities; four additional annual grants of $50,000
will be contingent upon a PPA award.
2. New Bedford Wind Energy Center
A grant of $25,000 has been made to support the New Bedford Wind Energy Center.
The New Bedford Wind Energy Center is a partnership of the city’s Harbor
Development Commission, the New Bedford Economic Development Council, and
Bristol Community College. The center’s mission is to capture all the benefits
possible, including local job creation and investments, from the development of the
offshore wind industry in Massachusetts. Grant funds will be applied to support the
Center’s research and training efforts, furthering the development of a large-scale
offshore wind industry in Massachusetts.
Bidder will ramp up its efforts consistent with the stakeholder engagement plan as we move
into the more visible development stages of the Project. This should give the Evaluation
Team confidence – as it does for the Bidder – that the Bidder is building up a strong base of
community goodwill, and ensures that the Project delivers clean power for all of
Massachusetts while respecting the communities it impacts.
As a new offshore wind energy facility, energy from the Project will qualify as a New Class I
Renewable Portfolio Standard (RPS) Eligible Resource because it meets the standards
defined in M.G.L. c. 25A, § 11F, and 225 CMR 14.00.
While the Bidder has not currently submitted its Class 1 RES application with the DOER it will
do so at the appropriate time, and provide documentation once available.
The Bidder will utilize the NEPOOL GIS tracking system for attribute tracking, which will allow
MADEP, in consultation with DOER, to accurately measure progress in achieving the
Commonwealth’s goals under Chapter 298 of the Acts of 2008 or Chapter 21N of the
General Laws.
The Bidder agrees to deliver the RECs associated with offshore wind energy generation into
the EDCs’ NEPOOL GIS accounts.
with a monopile
foundation. The Bidder has extensive experience with the
platforms and has installated more
than 1,000 monopile foundations.
With more than 25 years of experience in the industry,
22 operational wind farms at a total capacity of 3.8 GW,
and an additional 5.0 GW to be delivered by the end of
2022, the Bidder has a proven track record of successfully
delivering its projects as committed.
25 + years of experience
in the offshore
wind indusry 22 7 operational
wind farms of
3.8 GW capacity
projects
under
construction
8.8 GW of installed
capacity by the
end of 2022 1,000 monopile
foundations
installed
Anholt Offshore Wind Farm
Section 8 Engineering and Technology; Commercial Access to Equipment
This section discusses how the Bidder is bringing together the accumulated experience of
Ørsted and Eversource designing, procuring, building, and operating offshore wind farms and
power transmission solutions. Recent auction results in Germany and the UK have
demonstrated Ørsted’s commitment to lowering price and the power of focused efforts to
reduce all costs and optimize production. Ørsted was a successful bidder in the most recent
auctions in UK, Germany and the Netherlands, setting a new global price level.
Ørsted’s multi-disciplinary Product Line team is dedicated to scrutinizing all cost items, and
providing improved engineering solutions where they have impact to cost and performance.
This scrutiny is brought to bear on the supply chain as well, in collaboration with suppliers,
enabling them to reduce costs and provide higher value with their products. The Bidder is
determined to bring this process of continual refinement and cost reduction to bear on the
Bay State Wind Project. Moreover, Bidder is committed to developing a U.S.-based supply
chain. Ørsted’s long-term, synergistic relationship with suppliers enables us to provide
suppliers with greater visibility into our entire portfolio of future U.S. projects and to secure
commitments to incrementally growing a local manufacturing presence. This confidence in
Ørsted’s role in shaping U.S. market development has enabled some of Ørsted’s trusted
suppliers, most notably foundation and WTG suppliers and vessel owners, to make firm
commitments for this project, expressed in their written support (see Section 8.2).
In past years, Ørsted has consistently been instrumental in bringing technological advances
into projects, for example:
The first offshore wind project applying battery technology. (Burbo Extension)
The first project with the present Siemens D6/D7/D8 platform (Westermost Rough).
The first project with the MHI Vestas V164 platform (Burbo Bank Extension). It
brought MHI Vestas back as a supplier to the offshore wind market.
Ørsted’s in-house Product Line team will apply the most recent technological advances; an
optimized design, supply chain, and logistical train; and safe and environmentally sound
solutions and work methods to the U.S. offshore wind market, thus delivering cost savings to
Massachusetts’s ratepayers. The Bid anticipates future price reductions and passes those
savings on to the ratepayers of the Commonwealth.
Table 8.1
284B Summary of Proposed Generation and GLL Proposed Assets in the Preferred Option
Generation
Foundations Monopile/Transition Piece (MP/TP) solution by
The Bidder is currently evaluating several manufacturers for equipment procurement and
has initiated dialogue with these providers. The following discussion identifies the Preferred
Option. However, final selections will be made based on competitive tenders conducted post-
award. An overview of the manufacturers under consideration, including a track record of
equipment operations, is provided in Sections 8.2 and 8.3.
The Project design can be broken down into several key components:
Foundations;
WTGs;
Array and export cables;
OSS and OnSS; and
Battery storage.
These are designed to generate and bring power to a suitable grid injection point operated by
a Transmission Authority (Figure 8.1).
Figure 8.1 Project and Transmission Authority Scope
8.1.1 Foundations
A MP/TP design is assumed for all WTG positions based upon the preliminary site data
obtained. This foundation method is well-known and very mature, being Ørsted's preferred
foundation method in Europe over the past 17 years. Ørsted has placed more than 1,000
MP-based foundations and will, in the coming years before the Massachusetts project goes
online, add another 500 new positions through its existing pipeline. Based upon the early
site investigation results, the Preferred Option is the MP, because it the most economical
solution and the simplest and least time consuming to install.
This foundation is based on a large steel pipe (MP) that is driven into the seabed. A TP is
bolted to the top of the MP. Key details are highlighted in Table 8.2 and shown in Figure 8.2.
Table 8.2
285B Key Foundation Details
The Bidder is also evaluating the use of piled jackets and suction bucket jackets, all of which
could potentially be used as alternatives. The final foundation package selected will depend
on the water depth, WTG size, and the results of detailed geotechnical investigations.
8.1.2 WTGs
In the Preferred Option, the Bidder is using the
as shown in Figures 8.3 and 8.4.
For this Project the WTG will be modified to meet specific U.S. conditions (e.g., grid frequency
and voltage level),
Table 8.7
290B Electrical System Specifications/400 MW Case
Installed WTG Capacity
POI (Point of Interconnection)
Number of circuits (number of export cables)
Grid voltage level (OnSS to Grid)
Transmission system voltage level (OSS to
OnSS, export cable)
Array voltage level (WTG to OSS, array
cable)
Export Cable
The export cable system connects the OSS to the OnSS, delivering High Voltage power to
Brayton Point for the Grid. The export cable system is comprised of
Cable specifications are shown below in Table 8.9. A cross-section of the armored, insulated,
highly engineered 3-core subsea cable design is shown below (Figure 8.7)
A map showing the export cable route can be found in Figure 6.2
The Bidder has utilized similar equipment in previous projects.
8.1.5 Interlinks
Under the ETS option, the OSSs would be connected by submarine cable interlinks.
One interlink would connect the OSSs that interconnect to Brayton Point. A second interlink
would connect the OSSs that would, in turn, interconnect to Bourne (2 interlinks in total). See
Section 15.1 for additional information on the interlinks.
8.1.6 OSS
The OSS will be located within the Lease Area and will serve to convert and package energy
for transfer from the WTGs to the OnSS. The 400-MW substation will consist of a topside
structure and a jacket substructure. The final dimensions of the OSS will be determined by
the Project capacity, as the jacket substructure is dependent on water depth and wave and
swell exposure.
The Bidder is considering the use of pin piles or suction buckets to fix the jacket to the
seabed. The OSS will carry equipment for high-voltage transmission and distribution, along
with other equipment such as a backup diesel generator, batteries, and panels for WTG
control.
The topside structure will be equipped with a crane, helicopter deck, and boat landing for
maintenance of the OSS and WTGs. The structural system for the topside is a steel brace
column system with architectural walls (climate shield) that are non-load-carrying except for
local wind load. The main braces and columns are tubulars (circular members) whereas
members in the decks are wide flange H profiles. This type of structural system has been
used on 15 of Ørsted’s previous OSSs. This method has also been used at the majority of oil
and gas installation in the Gulf of Mexico and elsewhere.
The reasons for choosing the system are:
Many fabricators from which to choose ensuring selection of a proven structural
solution (as well as competitive pricing);
Allows for parallel fabrication as each deck can be fabricated separately; and
Robust system offering the flexibility needed to incorporate changes as design
proceeds and/or if required by permits/siting agencies.
The cable and cellar deck will be open decks and the remaining rooms will in general be
closed, climate-controlled rooms with the exception of the transformer and shunt rooms,
which will be natural ventilated via openings in the walls.
8.1.7 OnSS
The OnSS will be located at on an approximately
-acre site near the export cable landing point. The substation will be sized for 400 MW of
offshore generation capacity. Please refer back to Section 6 for additional information
regarding the OnSS site, including the system interconnection point (the existing National
Grid Brayton Point Substation) and other alternatives considered. Overall, the equipment
selected to be utilized in the substation is extremely reliable. Eversource has extensive
experience utilizing this equipment, most of which has demonstrated an average useful life
of forty years.
The engineering of the OnSS will be based on open air structures using insulated 345kV
equipment. The Bidder is considering both gas and air insulated equipment. The substation
will be equipped with from
the offshore platform, and to the National Grid
substation at Brayton Point. A control center will be equipped with protective relaying and
control systems, as well as local and remote control of equipment. The primary equipment,
including electrical components is provided in Table 8.10.
The OnSS will be equipped with harmonic filtering and reactive compensation equipment.
The harmonic filters are present to mitigate any impact of harmonics on the onshore grid
from the WTGs, or dampen any amplification of existing harmonics present in the 345-kV grid
due to amplification by the export system cable circuits. Variable and fixed shunt reactors
compensate for the export cable charging and harmonic filters. The variable shunt reactor in
connection with the STATCOM will serve to control the Brayton Point 345-kV bus to a target
voltage determined by ISO-NE.
Both the onshore and OSSs are equipped with Supervisory Control and Data Acquisition
(SCADA) systems. The SCADA system main
task is to provide Monitoring, Control and Under the Preferred Option,
Protection of the HV and MV components. The
secondary task is to provide interface to will construct and install the
external systems, and monitor and control the Project’s battery storage system. has
LV system and Auxiliary Systems. Ultimately extensive experience installing and
presenting all information on a Human commissioning commercial grid energy
storage solutions with over MW of
Machine Interface (HMI flat screen
energy storage installed, under construction
presentation) allowing also alarms and
or in late stages of development at
system events to be logged and managed. numerous sites around the world.
Overall, the equipment Bay State Wind has
selected to be utilized in the substation is extremely reliable and is expected to perform to its
project life of . Eversource has extensive experience utilizing this
equipment.
Ørsted helps drive local economic growth through its ‘multi-contract developer’ approach
which retains full control of the supply chain. As overall construction contracts are not
subcontracted, the Bidder is able to secure high levels of local supplier engagement. This
control also allows monitoring of the supply chain in an area and active engagement by the
Bidder where there may not be sufficient competition. By engaging directly with suppliers we
can help lower barriers to entry for new players. This, in turn, helps create local jobs and
greater competition, and reduce the costs of electricity from offshore wind. Concrete
examples of how Ørsted works to remove barriers to entry for new supply chain companies
include:
Splitting contracts into smaller scopes to enable new or specialized suppliers to more
easily bid and thus enter the market;
Facilitating discussions between our established suppliers and new potential sub-
suppliers;
Arranging regional supply chain events to highlight commercial opportunities for
potential suppliers; and
Spending time with suppliers to improve their understanding of our requirements and
terms and conditions.
Ørsted prides itself on its credentials as a long term investor and is deeply committed to the
regions and local areas where it constructs and operates offshore wind farms. The ‘multi-
contract developer’ approach is therefore important as it allows Ørsted to better realize the
potential that offshore wind development can have on a region’s economy; and to reduce the
cost of electricity through increased competition.
Consistent with Bidder’s standard practice, equipment suppliers have not yet been selected
and firmly contracted. Rather, the Bidder has entered into detailed dialogues with many
suppliers concerning 1) technology available for the Project, 2) possibilities for localizing
manufacturing, and 3) pricing. The Bidder is committed to supporting development of the
supply chain in the United States, and across the industry driving decreased costs and
increased safety and quality. Experience gained during many offshore wind farm projects and
other large scale utility projects show that the best way of obtaining these goals is through a
combination of long term collaboration and an open competitive approach, allowing the most
optimal solutions to be chosen for the project while making room for new and innovative
players to enter the industry. Due to this approach – together with the known lead times of
the different components - suppliers are not yet firmly contracted.
While it is not possible to list a chosen supplier per component, the known potential
suppliers are listed in Attachment 8-1. The Bidder expects that additional suppliers with
operations in Massachusetts will be identified during the development phase, and invited to
submit qualifications and participate in the open competitive approach.
In addition, the Bidder has committed to a dedicated full-time Massachusetts-based
employee, with the sole role of identifying and supporting local suppliers through the tender
processes and development of the supply chain; and continuing to employ a multi-contract
approach to the development and construction of our offshore wind projects. Beginning in
2018, in addition to the Head of Procurement based in Boston, the Bidder will hire a local
contract manager to strengthen resources and engagement in the local supplier qualification
and negotiation processes. It is expected that in the coming years the Bidder will hire several
procurement staff locally who will work with different supplies and services sourced in
Massachusetts and throughout the industry in the U.S.
To even further deepen the local supply chain, the Bidder generally requests major suppliers
to set forth similar requirements for their sub-supplier markets. These goals include
achieving a maximum of local supply and jobs by focusing on the right opportunities for local
potential suppliers; collaborating with suppliers across tiers and across markets to develop a
sustainable and competitive offshore wind supply chain; and identifying, developing, and
sharing (e.g. via project specific supply chain events) opportunities to increase business for
Massachusetts-based suppliers.
In selecting the equipment for the Project, the Bidder will focus on, in no particular order, the
supplier’s or manufacturer’s:
Ability to develop the local supplier market;
Track record and references;
Financial rating;
Safety and quality records; and
Price level of their proposals.
Foundations Suppliers
The Bidder has entered into an exclusive Letter of Intent with a global leader in the
manufacture of for the local manufacturing of a critical component
(see Attachment 8-2). Under this arrangement, will be
performed in Massachusetts, which will support a large number of local jobs and economic
growth. The agreement with the key supplier is exclusive to the Project due to the long and
trusting relationship between developer and supplier and is emblematic of the Ørsted
philosophy of using its buying power to leverage local economic development activity and
cost reduction. This key supplier has delivered large-scale Ørsted in
Europe on time, budget and according to quality and safety requirements. The supplier is
also dedicated to continual cost reduction and development of a sustainable long term U.S.
manufacturing base in order to eliminate transportation cost.
In addition, WTG tower manufacturer
, which is expected to add 150-200 jobs when the plant is operating at full capacity. This
comes in addition to the direct and indirect jobs assessed in this section, since the
commitment has come in after completing the calculations. See Attachment 8-2 for a Letter
of Intent.
WTG Suppliers
The Bidder has run a Request for Information process and has had very close dialogue with
the three major WTG suppliers over the last year –
- concerning the supply of WTGs for the Project.
As part of this process, all three manufacturers have committed to being ready to participate
with binding offers containing:
Maximum production at the lowest total cost over the life of the project;
Capacity to deliver on schedule; and
OSS Suppliers
Over the past year, Bidder has received budget proposals from several capable OSS
suppliers, both U.S.-based and abroad. A minimum of three of those are committed to
participating in our competitive tender. A Letter of Support from a
potential U.S.-based OSS design firm is included as Attachment 8-2. In addition, one of these
OSS suppliers, is located in New England with parts of its manufacturing in
Massachusetts. This supplier has submitted to us their Letter of Support in participating in
the future competition, which is included as Attachment 8-2.
Cable Suppliers
The Bidder is currently engaged with several possible suppliers to deliver cables for the
Project, and plans to finalize the selection and contract signing for the supply cables by early
Based on the Bidder’s extensive global experience and knowledge of cable suppliers
from 20+ offshore wind projects, the Bidder is confident that this approach will deliver the
highest value for rate-payers and help develop a U.S. offshore wind supply chain while
ensuring a high level of project viability. The Bidder’s preferred and back-up solutions are
outlined below:
Array Cables
The Bidder is engaging with
The Bidder is also monitoring the U.S. market to identify capable U.S. suppliers.
Export Cables
The Bidder will collaborate with a broad range of cable suppliers including pre-selected
suppliers for ongoing projects such as Hornsea 02 (1,386 MW offshore UK) to ensure the
greatest degree of competition and leverage potential scale benefits when negotiating with
suppliers.
Onshore Suppliers
The Bidder has long-standing relationships with both equipment suppliers as well as civil and
electrical construction contractors that will be utilized for the onshore work. To the extent
possible, contracts will be executed with local suppliers for the onshore construction scope
as well as the equipment.
Battery Storage Suppliers
Over the past year, the Bidder has received proposals from several U.S. based battery
storage suppliers, which are committed to participating in our competitive tender for this
equipment.
Vessel Suppliers
Procurement of vessels, including the construction of two new-built Jones Act-compliant
installation and transport vessels, is a key component of project planning with regards to
equipment; installation and transport vessel suppliers are discussed in Section 9.2.
The Bidder’s strategy for supplier selection in terms of technology risk is to use proven
technology. The critical equipment components for this Project are based on earlier versions
that have been manufactured and operated with success on various large-scale offshore
wind farms by the Bidder as well as the general offshore wind industry. As such, all
equipment used in this Project has a long history of reliable operation and poses no practical
technological risk. Furthermore, the Bidder has installed, operated and maintained
equipment from the majority of the manufacturers referenced in the table provided in
Attachment 8-1. Table 8.11 identifies similar equipment in use by the same manufacturers.
Total
Number capacity Est. Generation Past
Equipment Supplier installed (MW) 3 Years (GWh)
WTG
MP foundation
Array cables
Offshore transformer
Export cable
3 Based solely on projects where Bidder constructed OSS. However, it is worth noting that, barring corrosion and
climate protection, the transformer technology employed offshore is similar to transformers deployed onshore
across the globe, meaning the real figure numbers in the thousands.
4 Estimate based on data from the 4C Offshore Wind Farm Database, using fully commissioned offshore wind
projects. While there will have been some variations across different suppliers the general design will have
been similar.
To deliver a cost-effective low risk Project the Bidder will employ technology, equipment and
methodologies that are mature (i.e. currently operational or in the construction phase for
other large scale offshore wind farms). In other words, all critical components that the Bidder
plans to use on the Project are based on established earlier versions that have been
manufactured and operated successfully by the bidder on multiple large-scale offshore wind
projects.
The only major component in the Project that could be said to be less mature is the battery
storage system which the Bidder plans to deploy to maximize the benefits of the Project’s
energy delivery to the Commonwealth. However, under the Preferred Option,
is widely recognized as a pioneer and
leader in the market for utility scale energy storage. has extensive experience installing
and commissioning commercial grid energy storage solutions with over MW of energy
The list of equipment needed is shown in Attachment 8-4. The Bidder has interpreted “full
and complete list of equipment needed” as including only components and major sub-
components.
As described in Sections 8.2 and 8.5, equipment and suppliers are not yet firmly contracted
although the Bidder has initiated detailed dialogues with many suppliers. A timeline for
securing equipment components in provided in Section 9.
The Bidder’s approach to securing such equipment is two-fold; for certain components of the
onshore scopes that are considered standard items, framework agreements are already
secured with suppliers. Contracts for such equipment would be directly awarded to the
applicable supplier, which in many cases would have guaranteed lead times for delivery. The
framework agreements for standard long lead equipment are typically valid for 3-5 years.
With regards to the non-standard, customized equipment items, competitive bids would be
solicited prior to awarding. In this scenario, suppliers would be vetted and pre-qualified by
the Project team prior to being included on the bid list to ensure that the Bidder has an
established working relationship and prior experience with the suppliers providing proposals.
In both cases, pricing would be fixed at the time of contract execution to minimize
uncertainty around cost risks throughout the duration of the Project.
16 Bloomberg New Energy Finance lists the U.S. as having 675-MW installed battery storage capacity as of 2017.
Another third procurement methodology used, especially for larger offshore CAPEX supply
and services, is target-oriented collaboration contracting which is a procurement strategy
Ørsted has used over the past 5 years. This strategy has reduced cost and increased safety
and quality
All equipment will be contracted and procured once siting and permitting activities are
underway, allowing ample time for the equipment to be delivered on-site or to a storage
facility prior to construction. Many of the non-standard long lead equipment will warrant a
factory acceptance test prior to shipping, which will ensure that the equipment is in proper
working order prior to delivery on site. This process greatly reduces risk and eliminates
uncertainty, which in turn ensures that construction goes smoothly and schedule delays are
minimized.
The long lead equipment and services required for this Project include:
Foundations – As documented
in Attachment 8-2, the Bidder has entered into a
, which outlines the intention – exclusive to the
Bidder with regards to this RFP - to set up significant parts of the foundation manufacturing
in The contract is estimated to be closed in
WTGs – including the WTG towers, the nacelles, and the blades. The choice of technology
depends on the supplier choses which will depend on the competitive tender taking place
through first half of It is expected that the technology will be selected in
Array Cables – Ørsted has full supply security for the array cables
9. PROJECT SCHEDULE
A bidder must demonstrate that its proposal can be developed, financed, and constructed and be
technically viable within a commercially reasonable timeframe. The bidder is required to provide
sufficient information and documentation that shows that the bidder’s resources, process and
schedule are adequate for the acquisition of all rights, permits and approvals for the project and for
the financing of the project consistent with the proposed project milestone dates.
Bidders are required to provide a complete critical path schedule for the project from the notice of
selection of the project for contract consideration to the start of commercial operations. For each
project element, list the start and end date.
In the Preferred Option, the Bidder will bring the Project to COD by
The proposed schedule for the development and construction of the Project is achievable,
supported by Ørsted’s history with planning and executing multiple large scale offshore wind
projects and Eversource’s knowledge of the local regulatory framework and supply chain
dynamics. Bay State Wind has planned for contingencies and unexpected events. The
Bidder’s ability to execute the Project as committed is supported by its history of 22 offshore
wind farms already developed, constructed and in current operation in Europe, with an
additional seven wind farms currently under construction (see Section 12). As detailed in
Section 5, financing of the Project does not require any outside lending arrangements due to
Ørsted’s and Eversource’s financial strength. Technical design and constructability is
retained in-house and is based on almost three decades of experience with engineering,
procuring, and constructing offshore wind farms and complex onshore transmission lines.
This in-house experience and technical know-how is what sets the Project apart from all other
offshore wind developers.
The Bidder seriously evaluated the feasibility of a and determined that it would
significantly increase cost and risk to the Commonwealth. To enable the earliest COD
possible,
This enables us to put forward
the most aggressive yet realistic timeline. Similarly, the Bidder’s dialogue with vessel owners
has revealed that the earliest possible delivery of Jones Act-compliant vessels is such
that offshore installation of TPs and WTGs cannot be initiated prior to Finally, the
Preferred Option WTG, which will provide the greatest value to Massachusetts ratepayers,
Below, Section 9 highlights our expertise in planning and demonstrates the Bidder’s ability to
execute the Project in a commercially reasonable timeframe.
9.1.3 Planning and Management Tools to Predict and Track the Construction Campaign
While refining the construction campaign for the Project, the Bidder will utilize Ørsted’s vast
experience from previous planned and executed projects. Ørsted has developed several tools
based on lessons learned from previous projects, one of which is an offshore reporting tool
installed on each vessel during the construction campaign and managed by Ørsted’s own
client representatives onboard. This tool captures all installation statistics including
construction status, installation activity durations, and weather downtime. This data is
benchmarked against the anticipated durations for the campaign. The activities and
durations are saved within an accessible database system that enables future projects to
easily and more precisely estimate the duration of future construction campaigns.
In addition to this tool, Ørsted has also developed measures to model offshore construction
campaigns durations and weather downtime by inputting and evaluating known durations of
the previous offshore activities in concert with a 37-year-record weather file. A Monte Carlo
analysis provides a P2017, P50 and P80 duration for the installation campaign.
These two tools, together with the experience of the project management team enables the
Bidder to precisely estimate how long the installation campaign will take, the most optimal
time to launch and not least what float is necessary between the construction scopes to
ensure a smooth campaign without either too much float or unnecessary downtime on
construction vessels.
17 P20; P50; P80 refer to the confidence level of the probability of the modelled duration not being exceeded. Looking
across the last 37 years of recorded weather for the site, load out harbors etc., the modelled installation campaign would
in 20 percent, 50 percent or 80 percent of the time be executed within the modelled period.
Geoscience Investigations
As part of the Project the Bidder must contract vessels to perform substantial investigations
of the seabed as well as the environment to gain an understanding of potential impacts that
the Project may have and to complete necessary modeling and design. This work
commenced in 2016 and to date the Project has made use of both U.S. and non-U.S. flagged
vessels (Table 9.1). For future survey works the Bidder will endeavor to use U.S. flagged
vessels whenever possible and cost effective, but expects to continue using a mix of U.S. and
non-U.S. flagged vessels due to a limited number of suitable vessels in the U.S. It is worth
noting that there are no Jones Act compliance issues related to the use of non-U.S. flagged
vessels for the purposes of geophysical and geotechnical investigations.
Finally, as shown in Table 9.1 the Bidder has already completed a significant part of the site
investigation and permitting work. This is important as supply and installation contracting
time schedules are closely linked between scopes. The fact that the Bidder has performed
this amount of work contributes significantly to the robustness of the construction time
schedule.
Table 9.1
295B Ongoing and Completed Work under the Geoscience and Permitting Work Streams
Scope Description Vessel Status
Desktop studies of site Included geological studies NA Completed 2016
and initial UXO study
Geophysical 1a screening 900 m line separation grid RV Ocean Researcher Completed 2016
survey reconnaissance for
accurate bathymetry,
supporting seabed mapping
and structural modeling
Geotechnical 1a Initial seabed geological Fugro Synergy Completed 2016
investigation formation and geological
classification
Geophysical 1b export Reconnaissance along the RV Shearwater Completed 2017
cable route survey export cable route for RV Ocean Researcher
accurate bathymetry,
seabed mapping and
structural modeling
Geophysical 1b site Ultra-high-resolution RV Ocean Researcher Initiated 2017
survey as per 1a but with
greater resolution to
better understand and
evaluate seabed conditions
(80 m line separation grid)
purpose-built offshore WTG jack-up vessels in 2010 and 2012, each at the value of around
$150M18. Around the same time, due to limited supply of vessels for foundation installation,
Ørsted was a critical driver in bringing Swire Blue Ocean’s purpose-built offshore wind
installation vessels Pacific Orca and Pacific Osprey to the market, by committing a pipeline of
offshore wind farm projects to Swire Blue Ocean.
Today, Ørsted maintains an ongoing dialogue with the major offshore wind installation
players about development of new installation vessels, methods, tools and concepts. This is
part of Ørsted’s work to bring down the cost of offshore wind energy.
Ørsted brings this experience to the U.S. market, and in order to facilitate the construction of
a Jones Act-compliant heavy lift installation and transportation vessel for the Project, Ørsted
has:
Thoroughly evaluated the market for parties interested in building a Jones Act-
compliant offshore wind installation and transportation vessel;
Talked to more than 25 different U.S. or international companies interested in
building, owning or operating a Jones Act-compliant offshore wind installation and
transportation vessel;
Assessed the companies’ interest, ability and credibility in bringing a Jones Act-
compliant offshore wind installation and transportation vessel to the market; and
Entered into detailed technical and commercial discussions with the most promising
suppliers, to help them mature their concepts and their business cases up until
investment decision. The discussions are ongoing.
The Letters of Support and Letters of Intent, provided in Attachment 9-2 from four potential
contractors represent the most promising delivery of the necessary Jones Act-compliant
offshore wind installation and transportation vessels. The Bidder is, as stated in the Letters
of Support, in close technical collaboration with these suppliers regarding Jones Act-
compliant heavy lift installation and transportation vessels for offshore wind installation. All
of these companies are committed to collaborating with the Project in order to reach the best
solution regarding the necessary vessel which, as the Preferred Option, will enable the
Project to install WTGs from and TPs from
This also means that pre-assembly of the WTGs can take place locally in ,
creating local jobs and supporting economic growth.
Cable Installation
The Bidder has investigated the cable installation market in the U.S. thoroughly and
concluded that there are available contractors and vessels for cable installation for limited
parts of the scope. In order to mitigate risk and ensure high efficiency during installation, the
majority of the installation scope will be performed with state-of-the art European vessels
and equipment; however, the Project intends to utilize sustainable and efficient U.S.
equipment and vessels, as available, for smaller aspects of the scope. For example, the
Bidder intends to install the inter-array cables out of .
18 https://www.a2sea.com/a2sea-invests-in-a-new-jack-up-vessel/
Laydown Facilities
The Bidder has signed an option agreement to lease MassCEC’s New Bedford Marine
Commerce Terminal as the installation hub for as the Preferred Option, and
freighters will deliver components from Europe or the U.S. to the laydown facility at
the terminal. It is anticipated that construction management will operate in at a
sister location, which will transform into the O&M base post-construction.
The site facilities necessary for the Preferred Option are provided in Table 9.2; backup
locations are also listed. Laydown facilities are also discussed in Section 10.2.
Since 2015, the Bidder has been actively engaged in development of the Project and has
initiated several critical path items necessary to maintain the current Project schedule. The
status of important Project milestones, including several critical path items, is provided
below.
Interconnection Request and Studies. In August 2016, the Bidder filed an application with
ISO-NE for interconnection at Brayton Point. As discussed in Section 6.6, the ISO-NE
Feasibility Study was completed in April 2017 and the ISO-NE System Impact Study is
expected to be completed in Q1 2018. The ISO-NE I.3.9 process is not considered critical
path for the Project.
Site Access for Interconnection. The Bidder has entered into an Option agreement to
purchase a . This site is the
location of the Bidder’s proposed OnSS. Additional easements are needed from Dynegy (or
subsequent property owner) and/or National Grid for installation of underground facilities
needed for completion of the interconnection to National Grid’s existing 345-kV substation at
Brayton Point. National Grid is an active participant in the ISO-NE Interconnection Process for
and the Bidder expects to secure the necessary easements in 2018.
Site Assessment and Characterization. Physical surveys for the two-year environmental
studies were commissioned in early 2016. To support the Project schedule, the Bidder has
advanced the Phase 1B geophysical and geotechnical surveys and export cable survey into
the summer and fall of 2017 to ensure the required seabed and environmental data are
collected to support follow-up studies and engineering and design of the Project. Two LiDAR
buoys were deployed in July 2017 within the Lease Area to collect pertinent data, such as
weather, wind speed and direction, and significant wave height and direction. The Bidder will
continue to perform site assessment and characterization surveys including field work and
desktop assessment through Q3 2019.
Federal, State and Local Permitting. As discussed in Section 7.2, the Bidder received
industry-first approval for its SAP in June 2017. In February 2017, the Bidder filed a revised
COP Survey Plan and BOEM accepted the plan in November 2017. The Bidder continues to
consult with BOEM and other federal and state agencies regarding necessary environmental
and cultural impact assessments in support of the anticipated COP filing and other required
permits. After Phase 1B geophysical and geotechnical surveys are completed, the Bidder will
submit all the required federal, state and local permit applications including the COP. The
Bidder anticipates submitting the COP in
Attachment 7-1 provides a list of federal, state, and local permits with date
of expected application and expected receipt of permits, approvals and/or licenses.
Technology and Services Procurement. Procurement studies and confidential meetings have
been initiated as part of the Bidder’s technology access strategy (see Section 8.2).
Additionally, the Bidder has signed an option agreement to lease MassCEC’s New Bedford
Marine Commerce Terminal as a construction port. Ørsted’s internal Marine and Ports
Department has made three (3) separate site visits to the New Bedford Marine Commerce
Terminal to obtain required details to plan for construction. Eversource has great local
experience in OnSS construction in Massachusetts and strong relationships with local
suppliers.
Construction. Construction of the OnSS is anticipated to commence
Construction of offshore components of the Project, including the
foundations, WTGs, OSSs, and export and inter-array cables,
In this section, the Bidder outlines its construction plans for all major Project components,
including related logistics, site control, and the roles and responsibilities of third parties. The
Bidder again brings to bear its deep well of experience in executing large-scale, off-shore
wind projects around the world; indeed, the Bidder’s owners will furnish hundreds of
employees dedicated to each of the major installation packages.
With its unique multi contracting approach that breaks major work packages into more
discrete tasks, and the greater deployment of its own human resources the Bidder retains
control over the outfitting, assembly, deployment and commissioning to a greater degree
than any other developer in the business. This enhanced control covers not only the
procurement phase and the division of work scopes into more narrow delivery packages, but
also characterizes the construction phase. In the present context, it means that Bidder is
better positioned to define where the different activities will take place, to assert greater
control of local content.
The construction setup has evolved over years of collaboration with key suppliers and
contractors. The Ørsted approach to collaboration is typically that of a long-standing
relationship, where procedures, vessels and tools are optimized from project to project to
achieve those significant cost reductions for which Ørsted is known.
Figure 10.1 shows the logistics activities for the Project and their geographical spread. As
depicted, much of the logistical activity is concentrated in Massachusetts.
As described in Section 14, a significant number of jobs will be created in around the
Commonwealth in consequence of the Bidder’s more active control of activities and
deliberate policy of locating these activities to support the development of a local supply
chain.
This remainder of this section describes: 1) the major tasks associated with the deployment
of the proposed Project, 2) the sites where these activities are slated to occur; 3) the wide
array of specialized vessels to be used for the construction works – some of which will be
new built, Jones’ Act compliant vessels; and finally 4) the split of the overall Project scope
into the various installation responsibilities.
The Bidder will take a multi contracting approach to equipment procurement and installation
of the Project, the two major tasks associated with the deployment of the proposed project.
Ørsted has successfully developed and followed this approach though its entire portfolio of
offshore wind projects completed to date.
To acquire the necessary equipment and install the Project, Ørsted has an Engineering,
Procurement and Construction (EPC) organization with over 900 employees, employing
technical specialists and dedicated Managers to the installation of each of the package
scopes in this project. For every project under installation, daily progress is recorded in
corporate systems, which gives unique comparative data in helping to determine how much
time each installation task should take and under all weather conditions. The major
installation package’s necessary equipment includes:
foundations;
WTGs;
array cables;
export cable;
OSS;
onshore cables; and
OnSS including battery storage.
Each package will have its own installation contract with a specialized contractor, and each
offshore package will require specialized vessels as described in Table 10.1. The WTG will be
installed by the supplier, using the supplier’s specialized lifting equipment and product
specific procedures.
Installation vessel
capable of installing the ~37000
Monopiles (MPs)
foundations in dynamic gross tonnage
position (DP2) mode2
Jack-up transportation
~11000
Transition Pieces and installation vessel
gross
(TPs) specialized for offshore
tonnage
wind farms
Jack-up transportation
and installation vessel
Wind Turbine specialized for WTG ~16000
Generators gross
(WTGs) tonnage
Maersk Connector
Harvey Deep-Sea
McDermott DB50
Offshore DP2 Heavy lift vessel 29,722 gross A DP2 capable vessel for lifting and installing
Substation (OSS) (1) tonnage the OSS.
1 These are illustrative or otherwise model examples of a vessel class or type being considered for each role.
The overall coordination and management of the offshore construction work will be carried
out under the Ørsted EPC Director, with dedicated construction site staffing. This approach
gives the in-house EPC organization full control of the installation campaign, maintaining
quality and schedule goals. The Bidder will house a permanent offshore presence at the site,
with a dedicated Service Operating Vessel (SOV) or a jack-up platform having
accommodation for workers. Sailing back and forth from land will leave too few effective
working hours in a day to secure work progress. On-site coordination and HSE functions will
be primarily carried out from this vessel.
As discussed above, the Bidder has secured an option to lease the New Bedford Marine
Commerce Terminal for construction of the Project.
As discussed in Section 9.2, the Bidder has identified several waterfront facilities for
purposes of installation and O&M. The status of acquisition of real property rights for these
sites is provided in Table 10.2. Acquisition of these sites is not on the critical path; however,
the overall project schedule accounts for the time necessary to secure the real property
rights.
iii. Identify any joint use of existing or proposed real property rights for marine terminal or
waterfront facilities.
As stated above, the Bidder, Vineyard Wind LLC, and Deepwater Wind LLC have signed identical
option agreements with MassCEC entitling them to lease the New Bedford Marine Commerce
Terminal in case of success in the RFP Process. In the event that the instant Section 83C
solicitation results in multiple awards, with multiple winning bidders identifying the New Bedford
Marine Commerce Terminal as their preferred staging area for elements of project construction,
the option agreement contains mechanisms whereby priority use of the terminal can be agreed
upon by the winning bidders or decided by a “tie-breaker.” In the event that the Bidder is unable
to use the New Bedford Marine Commerce Terminal, it has identified alternative facilities as
described in Section 9.2 (Table 9.2).
The proposed approach for staging and deployment of major Project components is provided
below. A summary table identifying the number, type and size of vessels that will be used and
their respective roles is provided in Table 10.1.
The Bidder has thoroughly reviewed and evaluated the requirements of the Jones Act to
ensure that installation and operation of the Project is fully compliant with the Jones Act.
10.3.1 Foundations
The foundation construction and installation package consists of MP and TP fabrication, TP
outfitting, and MP and TP installation on site. In the Preferred Option, the foundation
package will contribute the most to new Massachusetts jobs.
Jones Act Applicability: No, because no transportation of merchandise between two points in
the U.S. has occurred.
MP Installation
A non-U.S.-flagged DP2 vessel will transport the MPs from to the site
position and complete installation of the MP, using a pile gripper to keep the MP in position
during the piling process. After piling is finished the hammer will be lifted off the MP and
placed on the vessel deck prior to moving to the next position and repeating the process. The
DP2 vessel will be capable of carrying 7-9 sets of MPs onboard depending of the size and
weight of the MP.
Jones Act Applicability: No, because no transportation of merchandise between two points in
the U.S. has occurred.
TP Outfitting in
The TP tubes will be outfitted in
Like the MP, the TP consists of a tube, but is much shorter, on the order of 25 m. In addition,
the fully outfitted TP is significantly more complicated than the MP. In addition to the pipe,
the TP consists of an external steel / concrete platform, internal steel platforms, and
electrical items, such as lights, wires, switch gears, cable trays and various gauges, as well
as rails for the elevator that runs up to the nacelle from the top of the TP. The steel platforms
consist of standard steel profiles that are cut and welded manually, produced either at a
central production location near the port or dispatched to local subcontractors in the area. All
steel parts must be painted before assembly. Once the platforms are mounted in the TP, the
assembly of all internal components can take place and the TPs loaded onto an installation
vessel.
Jones Act Applicability: No, because no transportation of merchandise between two points in
the U.S. has occurred.
TP Installation
In the Preferred Option, a Jones Act-compliant vessel will install the TPs. The installation
vessel will transport the TPs from the outfitting port in to the site position, dynamically
maintain position on-site, and start the installation of the TP. First, an anode cage will be
installed on the TP. Next, the TP is placed on top of the MP and bolted together. During the
bolting process a remotely-operated vehicle will create and secure a connection between the
anode cage and the MP for cathodic protection. When foundation installation is finished a
tent or similar cover will be put on top of the TP to protect the structure and electrical
components inside.
Jones Act Applicability: Yes, in the Preferred Option, a Jones Act-compliant vessel will be
used.
Figures 10.2 and 10.3 show the transportation and installation of a MP and TP.
Figure 10.2 Transportation and Installation of a MP (Westernmost Rough, 2014)
10.3.2 WTG
To allow for an effective WTG installation, installation out of a local harbor is preferable. To
comply with Jones Act, under the Preferred Option, the Bidder is working with four vessel owners
to support the construction of two Jones Act-compliant heavy lift installation and transportation
vessels. This will support an effective and safe installation campaign on this Project, but it will
also pave the way for future offshore wind farms in the U.S.
When assembling the complete tower structure, the bottom tower section is upended from
horizontal to vertical and bolted into a temporary tower stacking foundation near the
quayside (Figure 10.5). Thereafter, middle section(s) are stacked and bolted on top, the
service-lift is installed inside the complete structure, and multiple electrical connections are
run for HV cable, communication, DAVIT crane and nautical marking components.
Certification work is carried out on certified structural elements and components. Pre-
commissioning work prior to load out includes applying ID markings and a QC walk-down with
the owner’s representative (Figures 10.6 and 10.7).
Figure 10.5 Upending of Tower Section in Load Out Port (Gode Wind 2015)
Figure 10.6 Towers Assembled and Ready at the Load Out Port (Gode Wind 2015)
Figure 10.7 Towers Assembled and Ready for Loadout (Gode Wind 2015)
Nacelles are unloaded at the pre-assembly harbor by means of multi wheelers or a harbor
crane. A thorough inspection for overseas transport damage is conducted, and pre-assembly
consists mounting the Heli-hoist (basket), cooling unit with wind measurement instruments,
and aviation marking components. If a nacelle is stored for a longer period, it needs to be
conditioned by means of dehumidification and rotating of the entire drive train (e.g.
generator). Prior to getting ready for load out, the nacelle assembly are pre-commissioned,
ID-markings applied, and a QC walk-down with the owner’s representative is conducted
(Figure 10.8).
Figure 10.8 Nacelles Pre-assembled and Ready at the Load Out Port (Gode Wind 2015)
WTG blades are stored at the pre-assembly site as well, transported via harbor crane and
trucks with special trailers. Little pre-assembly or inspection is required (Figure 10.9).
Figure 10.9 Blades Ready at the Load Out Port (Gode Wind 2015)
The Bidder intends for MassCEC’s New Bedford Marine Commerce Terminal to be a critical
part of this Project’s success, and the highly skilled and appropriately licensed workforce
supporting this task will include:
Site management (e.g. Site Manager, Supervisor(s), Planner, HSE, Secretary);
Crane drivers;
Multi wheeler and heavy lifting truck drivers;
Other logistics vehicle site drivers;
High voltage electricians;
Low voltage and communication electricians;
WTG Installation
After pre-assembly of the WTGs in the WTG components (blades, nacelle and
tower) are loaded onto the Jones Act-compliant heavy lift installation and transportation
vessel, as the Preferred Option. WTG components are fastened onto the deck of the
installation vessel using specially-designed seaworthy fastenings. Once fully loaded up to six
WTGs sets can be stored on board for transport and installation offshore (Figure 10.10).
Figure 10.10 Loading towers onto installation vessel (Gode Wind 2015)
Once positioned at the offshore site, the installation vessel jacks up and connects with a
preinstalled foundation via gangway. Installation for each WTG is performed in five lifts;
tower, nacelle, and three blades. This method of installing full towers and single blades from
a dedicated installation vessel has proven to be an efficient and safe way to install WTGs
offshore (Figure 10.11).
Figure 10.11 WTG Installation Vessel at Work - Installation of a WTG Blade (Borkum Riffgrund Wind Farm 1
2014)
WTG Commissioning
After installation, the WTG is connected to grid and commissioned. will serve as
the commissioning harbor and
however, commissioning would likely be completed by technicians hosted by either a crew
transfer vessel (CTV) and/or DP2 vessel with a “walk to work” access system (Figure 10.12).
The DP2 vessel uses a gangway system to transfer commissioning technicians to the WTGs
and acts as a hotel vessel at the same time. CTVs push onto the boat landing on the
foundations to allow technicians to ascend the WTG.
WTGs typically begin producing power 1 to 4 days after installation has been completed.
Figure 10.12 DP2 Vessel and CTV (Gode Wind 01+02 2015)
Cable crossings will require special measures such as rock placement; mattresses; and/or
propriety separation devices;
Further, the operation will be assisted by survey vessels for pre cable lay surveys, post cable
lay surveys, and Depth of Burial (DOB) surveys; and crew boats for tower teams, messenger
wire installation, etc.; and a cable protection system during the cable installation period.
Both ends of the cable will be pulled into the TP or the OSS cable deck. After temporary hang-
offs are installed a cable termination crew will commence final installation and
commissioning.
10.3.5 OSS
OSS Fabrication and Installation
The OSS components - jackets, piles and topside - will be fabricated in selected fabrication
yards, transported to the site and installed. The topside and jacket will be loaded onto
separate U.S. flagged barges at the fabrication yard and towed to the offshore site (Figure
10.13). The transit time could be up to 14 days, depending on yard location. A heavy lift
vessel will sail directly to the site, to meet the towed barges. The jacket will be lifted from the
barge and placed on the seabed, and secured by use of 4 to 8 piles or suction buckets.
Figure 10.13 Typical Jacket Transported Horizontally The topside will then be lifted in
position on the jacket by the
heavy lift vessel, and secured by
welding to the jacket. The lifting
operation, described in detail in
Attachment 10-3, will not
contravene the requirements of
the Jones Act because no
transportation of merchandise
between two points in the U.S.
has occurred.
It is anticipated that the
OSS Commissioning
All electrical equipment on the OSS needs to be commissioned to ensure quality, safety and
functionality of each individual system and well as the integrated substation. Three phases of
commissioning will to take place to ensure this.
Factory Acceptance Tests
Factory acceptance tests are carried out to confirm that the equipment under test has been
manufactured in accordance with the approved design. These tests provide the employer
with the opportunity to identify any design or build quality issues in advance of the
equipment being delivered to site. All issues identified, should where possible, be rectified by
the supplier prior to shipment.
Site Acceptance Test
During the site acceptance test, the equipment suppliers commissioning engineer conducts
testing of the components supplied (as stand-alone systems) under the project scope, and
tests the conformance of the delivered solution to the approved design and functional
specifications. This process also confirms the integrity of the installation and the absence of
any transit damage.
Site Integration Test
The site integration test involves the overall testing of the complete OSS. The system(s)
under test may be composed of hardware, software, or hardware with embedded software.
The site integration test is a process of verifying that the substation meets its requirements
and performs in accordance with the design and client expectations.
10.3.6 OnSS
The Bidder’s Owner Eversource will be responsible for detailed design, procurement,
construction and commissioning of the OnSS. All the major equipment will be installed upon
completion of concrete foundations and cable duct banks. The equipment manufacturers are
responsible for transportation, rigging, and placing the equipment on the concrete
foundations. The rigging company who acts as a sub- contractor to the equipment
manufacturer is responsible for all logistical services, e.g. engineered rigging and hauling
plans, routing, permitting, clearance checking, escort, police escort, load analysis of
transport, as well as dimensional restrictions. When required, the rigging company is also
responsible for temporary local warehouse storage of equipment and components. Upon
installation of the equipment on the foundations, the rigging company is responsible for
checking alignment, anchoring, and proper temporary protection from weather. Upon placing
the equipment the manufacturers are required to complete attachments of all components
associated with each equipment piece. When required, as part of final deployment the
equipment will be filled with an insulating fluid and/or insulating gas.
OnSS Commissioning
All equipment, aside from the STATCOM, will be tested as soon as it is installed and control
and protection equipment is available. Testing will be performed by competent and licensed
contractors working in accordance with the test methodologies and plan reviewed and
verified by qualified engineers. All tests will be documented by prescribed test reports and
accepted by the Bidder. The commissioning will be performed in strict adherence to ISO’s
protocol on receiving permits and clearances.
345kV and medium voltage breakers: Upon the installation of all breakers and control
panels, each breaker will be acceptance tested. The acceptance testing will include
operability of the breakers, functional testing of control and protection schemes, alarms and
indications, as well as remote control (SCADA) operability.
Control Center: The control center will be acceptance tested at the manufacturer’s facility.
Upon the installation at the site, each control and protection scheme will be tested and
commissioned along with other equipment.
STATCOM: The STATCOM will be installed and commissioned by the manufacturer. Upon
successful commissioning of the STATCOM, the Bidder will commission the output of the
STATCOM power feeders to the system. The commission of the STATCOM will be performed
after successful interconnection with National Grid’s substation.
Step-Up Transformers: Upon the installation of the step-up transformers, they will be
acceptance tested and commissioned.
Commissioning of the Onshore Station: Upon the acceptance testing of the substation
control center and once the modifications to National Grid’s Brayton Point substation are
completed and in service, the commissioning of the substation will commence. The duration
of the final commissioning will be approximately four weeks.
Ørsted’s approach to the sourcing and supply of the components and skills required for
construction and operation of the Generation Asset and Offshore Transmission Asset of the
Project is expected to be managed through a multi-contracting approach with the main
packages and contractors described in Table 10.3. This is in contrast to a turnkey approach
with only one contract for both supply and installation of the major scopes. The multi-
contracting approach combined with Ørsted’s in-house engineering capabilities allows for full
EPC control, with the benefits of an optimized and transparent allocation of risk and full
control over interfaces between main packages.
The procurement team in Ørsted works dedicated with broadening the supply chain by
identifying, pre-qualifying and developing new suppliers, and manage the supply chain as a
portfolio across the current and future portfolio of wind farms when procuring components
for new wind farms.
Ørsted believes that using multiple suppliers will encourage competition in the supply chain,
driving both price down and performance up and thereby reducing the cost of electricity.
Within the offshore wind industry, several of the suppliers have a portfolio of different
products combined with a production capacity that enables them to both supply a range of
different components used in the wind farm, such as cables and HV components, and supply
to multiple wind farms.
Although competition is maintained by making sure alternative suppliers are available -
Ørsted primarily works with selected, strategic suppliers in order to develop more cost-
efficient concepts and products that can be used in tomorrow’s wind farms. The close
interaction with the service-suppliers and manufacturers and the sharing of knowledge
between the experts are key success factor in developing more efficient manufacturing,
installation methods, and technology.
An explanation of the responsibility split between contracts and the status of contracting the
major scopes is provided in Table 10.3. Additional information about the procurement
process is provided in Section 8.2. See also Section 9.2 for a description of negotiations and
discussions regarding installation vessels for foundation, WTG, and cable deployment.
Export cable The export cable manufacturer will deliver the export
cable to the designated site which can be a harbor or the
offshore project site where the installation contractor
will take over the cable and install it and terminate it at shore
OSS The OSS fabrication contractor will load the jacket and piles
onto a Jones Act-compliant transportation barge and then load
the topside onto a separate Jones Act-compliant transportation
barge.
The OSS installation contractor will tow the transportation
barges to the field using Jones Act-compliant tow tugs.
The OSS installation contractor’s installation vessel will
meet the transportation barges in the field to lift off and install
the structures.
OnSS Commonly the rigging companies hired by the
manufacturers are primarily responsible for staging and
deployment activities. When required, the manufacturers
hire local experienced contractors for specialized services.
Battery Storage The battery storage supplier will transport and install
storage components.
An electrical contractor will connect the battery
component to the OnSS.
In this section, the Bidder addresses the complex task of operating and maintaining a
commercial offshore wind energy facility, involving both on- and off-shore facilities and
equipment critical to the successful generation of clean wind power. With more than two
decades of operational experience and 3.8 GW constructed offshore wind capacity across 22
offshore wind farms in operation, the Bidder has an unparalleled track-record in constructing
and operating offshore wind farms. It is this experience that allows us to frequently secure
above industry-average production figures on our assets (see Figure 11.1). Having assets
with greater availability not only supports cost reductions, it also increases the reliability
benefits of our wind farms. Specifically, the Bidder achieves these higher production figures
through two sophisticated tools it has developed to ensure the reliable operation of projects:
Optimized site layout: Proprietary tools that integrate skills and knowledge from a broad
variety of disciplines allow us to design an optimized layout design compared to what our
competitors can deliver. The design tool allows us to optimize our site layout for
aerodynamics, reducing wake loss and increasing overall generation, and it also supports
cost reductions by helping to minimize foundation and cable costs.
In-house O&M capabilities: As the operators of the largest offshore wind fleet in the world,
Ørsted has built a highly skilled in-house O&M team. Through these in-house capabilities and
continuous learning from our generation fleet, the Bidder is able to secure higher availability
than the industry average. This allows our wind farms to be producing power for more hours
per year.
Modeled on the successful track record of Ørsted and Eversource in operating complex
commercial offshore wind energy and transmission facilities, the O&M Plan for the Project
will tap into an organization articulated in three elements.
Under the Preferred Option, the Bidder will use a site to support O&M activities.
On November 21, 2017 the Bidder signed an agreement with
in (see Section 10.2). Due diligence is currently being
undertaken to assess its suitability as a location to base long-term O&M facilities for the
Project, in addition to use as a Construction Management Base. The Bidder has the right to
benefit from this agreement. The detail of the relationship is confidential and subject to a
Non-Disclosure Agreement but is available upon request.
O&M will be funded by internally generated cash flows from the revenues the Project
receives from PPA payments, in addition to revenues from the capacity and ancillary services
markets. If the Bidder requires working capital during the operating period, it will use
internally generated cash flows, equity contributions from the Project Owners, and loans from
either the Owners. The Bidder can provide additional information regarding funding of O&M
upon request by the EDCs.
11.4.1 WTGs
11.4.2 Transmission and Other Assets (OSS, OnSS, SCADA, HV components and cables)
The Bidder expects that the equipment and materials associated with the OnSS and
transmission infrastructure will be covered by a -year warranty. The supplier will warrant
that all equipment and materials it supplies will conform to specifications provided by the
Bidder, will be new when delivered and free from defects in title, design, material and
workmanship for up to years after final acceptance of work. If the Bidder determines that
the warranty is breached, the contractor shall either repair or replace the affected equipment
and materials at its sole cost and expense.
To ensure that the Project provides the most cost-effective offshore wind energy to the
Commonwealth, it is expected that the Bidder will enter into long-term O&M agreements with
both Ørsted and Eversource.
The Bidder and its Operators – - are actively engaging with several
well-established international and local service providers for the provision of O&M services.
In most cases, these agreements will be jointly negotiated with the equipment supply
agreements to ensure compliance of the warranty obligations and operational efficiency
when transitioning from the construction phase to the operational phase.
Besides informally exploring market opportunities and suppliers’ capabilities, the Bidder has
entered into a more formal dialogue with some service providers in the form of Requests for
Information, RFPs, and Bidders Conference per PMI best practices, depending on the scope
of service and market maturity.
It is expected that service agreements and contracts will be conditional on the Bidder being
awarded a long-term contract in this RFP process.
The Bidder’s Owners, Ørsted and Eversource, have developed, constructed, and operated
many large energy projects over the past 25 years. Specifically, Ørsted operates more
offshore WTGs than any other operator in the world, and is currently the operator of 22
commercial-scale offshore wind power facilities (Figure 11.3, Table 11.1). Similarly,
Eversource regularly maintains over 300 substations of various capacity and configurations.
Both companies employ highly trained professional engineers and experienced personnel to
install, maintain, and repair equipment and the Project would greatly benefit from this
combined experience to support O&M. See Section 12.4 for a complete list of similar Ørsted
and Eversource projects.
3.8 GW of constructed
offshore wind capacity
In 2016, Ørsted and Eversource joined forces to create a single, cohesive team solely
dedicated to the development of the Project. This team combines top talent from the world’s
leading offshore wind developer and New England’s pre-eminent energy company with deep
experience in successfully developing complex energy projects over the past 20+ years. The
Owners’ depth of experience, proven track record and unparalleled commitment to
excellence will ensure seamless project execution, unrivaled by any competitor.
Consisting of two leading energy companies, the Bidder brings a winning combination of
experience and skills to the development of Massachusetts’ first offshore windfarm and the
U.S.’s first utility-scale offshore windfarm. These strengths are encapsulated in the following
core competencies:
Technical Acumen
With 23 offshore wind projects constructed and a dedicated offshore wind business unit
consisting of over 2,000 dedicated experts spanning engineering, permitting, supply
chain engagement and O&M, Ørsted is the industry leader within offshore wind. Similarly,
Eversource brings deep experience in interconnecting renewable resources into New
England's electrical system reliably and cost-effectively. Eversource has served as New
England's leading electricity and natural gas distribution company for over a hundred
years. With over 8,000 employees based across New England, its deep knowledge of the
region's electrical system is without parallel.
Financial Capacity
The Bidder brings an unrivaled financial strength reflected in the joint venture partners’
solid credit rating scores, total assets worth more than $50 billion and a cash flow from
operating activities of about $4 billion.
Supply Chain Relationships
The Bidder’s market-leading global position within offshore wind, and sizeable U.S.
project pipeline, gives it the unique ability to provide suppliers greater certainty when
making long-term decisions to invest in the Commonwealth, resulting in a major boost to
the local economy. This is not a new strategy but a reprise of Ørsted’s phenomenal
success in building a robust UK offshore wind industry. Ørsted’s 2,000-MW build-out on
the East Coast of the UK has been accompanied by a multi-billion dollar investment by
our supply chain partners, in large part due to Ørsted’s active engagement with both
potential local suppliers and large multi-national ones to entice them to invest in the
region.
12.2.2 Ørsted
Ørsted is the industry leader in offshore wind with significant experience with the rigors and
challenges of the offshore wind business. Over the past 25 years, Ørsted has constructed 3.8
GW of offshore wind capacity (see Figure 12.2), which is approximately 30 percent of globally
installed offshore wind capacity. Ørsted's existing activities span a number of markets which
include Denmark, the United Kingdom, Germany, the Netherlands, the United States, and
Taiwan. As a result, Ørsted is well practiced in adapting to, and thriving within, new
regulatory, permitting, and political landscapes. It is the current Ørsted leadership team that,
within the short span of the past three to four years, has driven dramatic cost reductions and
paved the way for exponential market growth.
commitment to the U.S. offshore wind industry, but it also offers an opportunity to share
lessons learned across the region. The Bidder will leverage Ørsted’s experience, particularly
with regards to the BOEM permitting process and supply chain development, to secure on-
time and on-budget development of this Project to the greatest benefit of the
Commonwealth.
12.2.3 Eversource
Eversource is an industry leader in timely and efficiently siting, permitting, constructing and
maintaining large complex transmission and distribution projects including high-voltage and
extra HV overhead, underground and hybrid transmission lines, and associated terminal
equipment. Throughout New England, Eversource has successfully completed hundreds of
capital projects over the past decade with a proven track record in:
Successful single state and multi-state project siting and permitting;
Working closely with other companies to develop major projects; and
Safely and efficiently constructing transmission and distribution projects.
As described in Section 5, Eversource, a Fortune 500 energy company, has significant
financial resources and invests substantially in transmission facilities. Eversource financed
those investments with its strong cash flows and ready access to the capital markets.
Eversource has successfully completed hundreds of traditional and major capital projects
over the past decade. Eversource’s innovative solutions to technical and environmental
challenges include:
The first and most extensive 345-kV applications of solid core cross linked
polyethylene (XLPE) underground
cables in the United States; Eversource has recent and significant
Laying marine cable from a purpose- experience with large, complex energy
built ship; and projects. Over the past 10-15 years,
Eversource has planned, designed,
Constructing overhead transmission permitted and constructed over $2.8B of
support structures from the air, using major transmission upgrades in southern
helicopters. New England.
For the purposes of developing the Project,
Eversource has replicated its successful formula by assembling a core team of seasoned
professionals who have been involved in the development and construction of numerous
large transmission facilities, supplemented by internal and external resources that provide
the expertise to support project execution. A partial list of previous projects is provided in
Section 12.4 to further illustrate Eversource’s experience. Section 12.3 provides additional
detail on key personnel dedicated to this Project.
Ørsted has over 2,000 employees dedicated to the development, construction and operation
of utility scale offshore wind projects similar in nature to this Project (see Figure 12.3).
Eversource has approximately 8,000 employees dedicated to the development, construction
and operation of utility scale transmission and distribution projects across New England. It is
therefore undoubtedly one of the Bidder’s primary assets to be able to draw upon this
extensive talent and resource pool for the development, construction and operation of the
Project.
The Project development organization is provided in Figure 12.1. Once final permits are
received and construction begins, some roles will be exchanged with people specialized in
project execution: The project development manager is replaced by a program director from
the Ørsted EPC Division; the technical project manager is replaced by an EPC director and
similarly for other roles.
Figure 12.3 Ørsted Organization with Number of FTE Employees in Each Unit (as per Dec. 2016)
12.4.1 Ørsted
To date, Ørsted has constructed 3.8 GW of offshore wind capacity, which is approximately 30
percent of globally installed offshore wind capacity.
Ørsted's existing activities span a number of markets, Ørsted’s Unparalleled
Offshore Wind Experience
which include Denmark, the United Kingdom,
Germany, the Netherlands, the United States, and • 25+ years’ experience
Taiwan. Detailed information regarding Ørsted’s • 22 operational projects
offshore wind portfolio is provided in Table 12.3. • 3.8 GW constructed capacity
• 2,000+ dedicated employees
• 7 projects under construction
• 8.8 GW of capacity by 2022
For further information regarding the offshore wind projects referenced in Table 12.3, please
contact:
12.4.2 Eversource
Eversource has successfully developed several recent large projects with an initial capital
cost of more than $70 million. Descriptions of the projects are provided in Table 12.4. Since
the projects listed are not generation projects, there are no capacity and availability factors.
All of the projects listed in Table 12.4 are owned by Eversource affiliates, and the President
of Eversource's transmission department may be contacted for further information with
respect to any of these projects at:
OWP West North Sea (DE) Offshore wind 240 MW; Technology 2024 Under
TBD Development
Borkum Riffgrund North Sea (DE) Offshore wind 240 MW; Technology 2024 Under
West 2 TBD Development
Gode Wind 3 North Sea (DE) Offshore wind 110 MW; Technology 2023 Under
TBD Development
Borkum Riffgrund 2 North Sea (DE) Offshore wind 450 MW; MVOW 8.3 2018 Under
MW-164 Development
Gode Wind 1 North Sea (DE) Offshore wind 380 MW; Siemens 2016 In Operation
SWT 6.0-154
Gode Wind 2 North Sea (DE) Offshore wind 252 MW; Siemens 2016 In Operation
SWT 6.0-154
Borkum Riffgrund 1 North Sea (DE) Offshore wind 312 MW; Siemens 2015 In Operation
SWT 4.0-120
Netherlands
Borssele 1 & 2 North Sea (NL) Offshore wind 752 MW; Siemens 2020 Under
Gamesa 8 MW Construction
Hornsea 2 North Sea (UK) Offshore wind 1,386 MW; Technology 2022 Under
TBD Development
Hornsea 1 North Sea (UK) Offshore wind 1,200 MW; Technology 2020 Under
TBD Construction
Walney Extension Irish Sea (UK) Offshore wind 660 MW; MHI-Vestas 2018 Under
V164-8.0 MW & Construction
Siemens SWT-7.0-154
Race Bank North Sea (UK) Offshore wind 573 MW; SWT-6.0-154 2018 Under
Construction
Burbo Bank Extension Irish Sea (UK) Offshore wind 258 MW; V164-8.0 2017 In Operation
MW (MHI Vestas
Offshore Wind)
Westermost Rough North Sea (UK) Offshore wind 210 MW; SWT-6.0-154 2015 In Operation
West of Duddon Irish Sea (UK) Offshore wind 388.8 MW; SWT-3.6- 2014 In Operation
Sands 120
Gunfleet Sands Demo Thames Estuary (UK) Offshore wind 12 MW; SWT-6.0-120 2013 In Operation
Lincs North Sea (UK) Offshore wind 270 MW; SWT-3.6-120 2013 In Operation
London Array 1 Thames Estuary (UK) Offshore wind 630 MW; SWT-3.6-120 2013 In Operation
Walney 1 Irish Sea (UK) Offshore wind 183.6 MW; SWT-3.6- 2011 In Operation
107
Walney 2 Irish Sea (UK) Offshore wind 183.6 MW; SWT-3.6- 2011 In Operation
120
Gunfleet Sands 1 Thames Estuary (UK) Offshore wind 108 MW; SWT-3.6-107 2010 In Operation
Gunfleet Sands 2 Thames Estuary (UK) Offshore wind 64.8 MW; SWT-3.6- 2010 In Operation
107
Burbo Bank Irish Sea (UK) Offshore wind 90 MW; SWT-3.6-107 2007 In Operation
Barrow Irish Sea (UK) Offshore wind 90 MW; V90-3 MW 2006 In Operation
Offshore (Vestas)
Taiwan
Formosa 1 - Phase 1 Taiwan Strait Offshore wind 8 MW; 4.0 MW SWT- 2017 In Operation
120
Sources: Danish Energy Agency, Fraunhofer ISE & EEX, National Grid, and Ørsted.
The shared expertise of Owners Ørsted and Eversource in developing, financing, and
operating energy projects will be supplemented by third party firms as outlined below.
The Owners will designate a Lead Market Participant for Bay State Wind in accordance with
the ISO-NE asset registration requirements. The Lead Market Participant will be able to draw
on Eversource’s history of comprehensive involvement in ISO-NE.
Eversource has been a member of ISO-NE and its predecessor since inception. Relevant staff
experience includes:
Extensive participation in the ISO-NE market, technical and planning committees,
tasked with establishing and overseeing the development and maintenance of
market rules.
Experience operating renewable and conventional generation including participation
in the day ahead and real time markets for energy, in addition to the markets for
capacity, regulation, forward reserve, voltage support and financial transmission
rights.
Provision of last resort wholesale power service in New Hampshire, Connecticut and
Massachusetts, including daily coordination with ISO-NE on load forecasting,
generation bidding and scheduling and oversight of power supply agreements in the
states.
Significant experience in the fuel supply markets and an intimate understanding of
the reliability impacts to the power market.
Eversource has been a member of NEPOOL and NPCC since inception and participates in
these organizations on a regular basis. Eversource maintains policies and procedures and
executes activities in a manner that ensures all market activities comply with ISO-NE, FERC
and NERC/NPCC requirements.
short tons of
greenhouse gas emissions
Approximately would be abated
13. EMISSIONS
In this section, the Bidder highlights our unprecedented clean energy leadership as well as
the emissions impact of the Project.
Ørsted has made a commitment to going 100 percent renewable, and already today 85
percent of our capital is deployed towards green energy solutions in wind, biofuels, storage
and customer solutions. Ørsted recently changed its name from DONG Energy (Danish Oil
and Natural Gas) because this legacy name no longer reflects the Company since it has
reduced our carbon footprint by more than 50 percent in the span of a decade.
Similarly, Eversource is focused on being a catalyst for clean energy development in New
England. It allocates 7 percent of its annual revenues—or more than $500 million annually—
to energy efficiency programs for its nearly 4 million customers. Its energy efficiency
programs have been consistently ranked #1 in the country. It is well under way in building 70
megawatts of solar energy in Massachusetts and divesting its remaining fossil fueled
generation. Eversource has spent approximately $6 billion over the past 12 years to
strengthen New England's high voltage electric grid to improve reliability and resiliency and to
better allow new efficient and less emitting power to reach the region's customers.
The Bay State Wind Project is consistent with the Owners’ commitment to transitioning to a
clean energy future and will make a significant contribution towards the Commonwealth’s
ambitious greenhouse gas reduction goals.
The operation of WTGs does not generate greenhouse gas emissions; therefore, emissions
data is not applicable (Table 13.1).
Greenhouse
Gases
(all except
methane)
Expressed as
Carbon
Date of Dioxide Nitrogen Sulfur Carbon Particulate
Source of Test (if equivalent Oxide Oxide Monoxide Matter Methane
Information applicable) (CO2e) (NOx) (Sox) (CO) (PM 2.5) (CH4)
N/A N/A 0 0 0 0 0 0
Note:
Assumed to relate solely to the operation of WTGs. Additional information available upon request if necessary.
Not applicable.
21 Based on EPA figures for typical passenger vehicle emissions of carbon dioxide per year.
22 Based on Project production forecast and 2016 EIA data for Massachusetts’ residential energy use.
23 http://www.mass.gov/eea/docs/eea/energy/cecp-for-2020.pdf
24 https://www.iso-ne.com/static-assets/documents/2017/01/2015_emissions_report.pdf, Table 9 in the Appendix.
25 To arrive at reduction targets for 2030 and 2040, the Bidder has made a linear reduction from the 2020 (25 percent)
target and 2050 (80 percent) target. This yield a reduction target for 2030 of 43 percent and 62 percent for 2040.
26 https://www.iso-ne.com/static-assets/documents/2017/01/2015_emissions_report.pdf
Given the cumulative effects of carbon emissions, the Bidder understands and supports the
Commonwealth’s desire to achieve the earliest possible reductions as a down-payment
towards the Commonwealth’s commendable long-term targets under the GWSA. As noted in
Section 9, the Bidder believes it has put forth the most realistic and defensible operational
date for the Project given critical path items, including but not limited to securing approval of
the COP from BOEM. This factor, taken together with the Bidder’s collective experience and
financial and technical capability, should inspire confidence that these promised carbon
reductions will be realized at the earliest opportunity.
The Project will generate more than 850 jobs during construction.
The Bidder will across
Massachusetts through its extensive supply chain network.
The Bidder has entered into a major agreement with four of
Massachusetts’ leading Community Action Agencies to lessen
the overall energy burden to low income customers. The
Bidder will contribute a total of $8.7 million to support two of the
Commonwealth’s cornerstone programs – the Low Income Heating
Assistance Program and the Weatherization Assistance Program.
Through a partnership with the Massachusetts Maritime Academy,
training and
.
The Project opened an ,
and Ørsted established its North American headquarters in
Boston, Massachusetts.
Eversource is a Boston based Fortune 500 Company strongly
supportive of the clean energy and community goals of the
Commonwealth.
7,939 Indirect
jobs
$
300M+ Total
investment
850 $
1.16B
Development
and Contribution
Construction Operational to gross state Gode Wind
Phase (Annual): Phase: product Project
Contribution to Employment and Economic Development
Section 14
and Other Direct and Indirect Benefits
14.1.1 Development
Development of the Project will create
approximately 125 full time job-years, such as
engineers, environmental, financial, and other
professional roles, each with annual Total
Employer Compensation of $123,000
according to Mercer (2016)28 (Category PC
52, Professionals).
14.1.2 Construction
During project construction, an estimated 850
full time job-years will be created, filling roles
such as steel workers, welders, electrical
27 As defined in Section 8, the Preferred Option represents our current view of the most advantageous solution for this
project, based upon the Bidder’s deep understanding of the state of the supply market and technical experience.
28 Source: Mercer report, Total Employment Costs Around the World, 2016.
14.1.3 Operations
Project O&M will create around long-term jobs, taking into account internal employees
and subcontractors.
These jobs will be located in Massachusetts.
Bay State Wind contracted with Boston-based energy economic consultant Levitan and
Associates, Inc. or LAI to perform a comprehensive analysis of economic benefits to the
Commonwealth (Attachment 14-1). Based on the analysis in the LAI report in Attachment 14-
1, “indirect” jobs creation is broadly interpreted to include both supply-chain jobs and other
new jobs created from multiple rounds of business, household, and government spending as
a result of the Project’s investment in the Commonwealth. The LAI report provides the
breakout of both drivers of indirect job creation, inter-industry spending effects and
additional household spending.
(FTE-years)
Development Construction Operations Total
Indirect II Effect 48 2,269 5,622 7,939
Indirect Effect 25 1,103 3,365 4,493
Induced Effect 23 1,166 2,258 3,446
Unlike with direct job creation, it is not possible to identify the names of employers and
locations for the much more diffuse supply-chain and multiplier effects of indirect job
creation, as discussed in the LAI report. The LAI analysis expects that much of the locational
impacts will occur in and around New Bedford, which will be the hub of activities during both
the construction and operations phases. A second center of indirect job creation will be in
the Boston metro area, the hub of development activities and where TP outfitting, and
manufacture of TP, OSS, and battery storage components will be done. This job creation will
then promote economic development across an array of other industries in the
Commonwealth.
The average annual compensation of workers that benefit from indirect job creation is shown
in Table 14.2 below in comparison to Massachusetts average compensation. This
information is also from the LAI report, which provides details of the data sources.
The Project will inject significant new direct investment into the Massachusetts economy. By
our estimate, the total local (MA) capital (CAPEX) and 25-year operational (OPEX) Project
30 The following figures include both indirect and induced job effects. Indirect effects reflect the changes in inter-industry
purchases in response to the new demands of the directly affected industry (industries). Induced effects reflect the
changes in household purchases of goods and services out of the additional income of employees and proprietors that is
created by the changes in direct and indirect expenditures. Indirect II is simply the sum of the indirect and induced effects.
Table 14.3 State and Local Tax Revenue Direct, Indirect, and Total Effects
308B
(2017 $ million)
Development Construction Operations Total
State and Local Tax Receipts 0.4 26.2 47.5 74.2
BOEM Lease Revenue 0.3 0.4 12.9 13.6
Total Revenue 0.7 26.6 60.4 87.8
(2017 $ million)
Development Construction Operations Total
Direct Effect 3.3 121.9 287.6 412.8
Indirect II Effect 4.4 292.0 454.4 750.8
Indirect Effect 2.3 183.2 243.7 429.1
Induced Effect 2.1 108.8 210.7 321.6
Total Effects 7.7 413.9 742.1 1,163.6
Given the context of this question, the Bidder assumes the reference to 2.2.2.7, above, was
intended to read 2.2.2.8 and the Evaluation Team is seeking to elicit any additional
information regarding potential local job and economic development benefits of the project
not previously covered in this section.
Beginning in January 2017, the Bidder met with representatives of the NCLC, one the
nation’s preeminent low-income consumer advocacy organizations, and representatives of
the Massachusetts LEAN, an association of nonprofit agencies that coordinate the delivery of
government and utility-funded energy efficiency services to low-income customers
throughout Massachusetts. The purpose of this dialogue was to explore ways in which the
Bidder, as a wholesale generator without a direct relationship with retail customers, could
achieve the Energy Diversity Act’s goal of providing benefits to Massachusetts’ low income
ratepayers in the most cost-effective and impactful way possible. These discussions
31 Payments are scaled on a $/MW basis, with an 800-MW project representing the high end of the range.
As noted above in the alternatives analysis, the Bidder’s proposed ETS network solution is
the Solution. This solution provides for
capable of transmitted a full 1,600 MW of offshore wind
generation. The ETS network would be built in phases, in parallel with the award of offshore
generation contracts by the EDCs.
Recovery of costs associated with the ETS network will be recovered pursuant to a
FERC-jurisdictional Offshore Delivery Facilities Agreement. See Section 17. As set forth in the
Offshore Delivery Facilities Agreement, the ETS network
would be subject to comparable Offshore Delivery Facilities Agreements that would be
executed in connection with future awards of offshore generation. The proposal set forth
herein is applicable only to Phase I.
The following sections described the facilities that the Bidder would construct for Phase 1 of
its ETS. Figure 15.5 illustrates Phase 1 facilities (in yellow) for the Bidder’s 400 MW ETS
case. This is superimposed on the indicative figure used earlier (Figure 15.1).
OSS/Platform – To collect wind generated power from the Project. As required by the
RFP (at Section 2.2.1.4.ii.a), the Bidder assumes that it would construct, operate and
maintain only OSS foundation and platform, plus equipment on the high side of the
generator transformer(s) on each platform, as part of the ETS network. Remaining
equipment on the platform will be installed as part of Bay State Wind’s facilities. The
equipment on the high side of the generator transformer(s) on each platform will be
made ready for future interlink to future phase of the ETS network.
Export Cable – submarine cable, sized to be capable of
transmitting of power to an OnSS in Somerset, Massachusetts.
OnSS –
For Phase 1, the OSS will collect inter-array cables operating at kV. The OSS will step
voltage up to -kV, and the export cable(s) will then transmit power at kV to the new
proposed Project OnSS, where power will be further stepped up to 345-kV. From the OnSS,
power will be interconnected to the 345-kV Brayton Point Substation where electricity will
enter the transmission system at 345-kV.
iii. The type of structures (such as steel towers, poles or jackets) that would be used for the
proposed project
OSS/Platform
The 400-MW OSS/platform is designed to be installed using a four legged jacket structure
secured the seabed. The final dimensions of the OSS will be determined based on the size of
the generation project awarded by the EDCs. As the jacket structure is also dependent on
water depth and wave and swell exposure; however, indicative dimensions are provided in
Table 15.2.
Specification
Topside steel weight [t]
Topside weight Total [t]
Jacket weight [t]
Water depth [m]
LxBxH [m]
Distance to ONS (export cable length) [km]
Structural Systems
Figure 15.6 provides an illustrative representation of the OSS foundation system the Bidder
proposes for Phase 1.
Figures 15.7 provide illustrative representations of the topside (where all OSS substation
equipment is housed) structural system under consideration by the Bidder. This structural
system for the topside would be a steel brace column system with architectural walls
(climate shield) that are not load carrying except for the local wind load. The main braces and
columns are tubulars (circular members) whereas members in the decks are wide flange H
profiles. This type of structural system has been used on all previous OSSs with the only
deviation that the walls in some cases also have been load carrying. This method has also
been used at the majority of oil and gas installation in the Gulf of Mexico and elsewhere.
Figure 15.7 OSS Topside with Deck Configuration
OnSS
The Bidder proposes to construct an 800-MW OnSS using a gas-insulated substation design.
Figure 15.9 provides an illustrative layout of the OnSS. Equipment and steel foundations are
expected to be of reinforced concreate, and will be of a design suitable for existing soil
condition and coastal storm/flood events. Certain foundations may require pile support,
depending on the outcome of ongoing geotechnical investigations. Actual layout may vary as
iv. The length of the proposed transmission line and the type(s) of terrain and land ownership of
the proposed ROW
For Phase I, the export cable route will be approximately long, with an
approximate diameter of
The route proposed between the proposed OnSS and the Brayton Point Substation (the point
of system interconnection) is roughly in length. Onshore terrain between
these locations is a combination of uplands, previously disturbed lands (associated with the
former Brayton Point Generation Station), and some wetlands. Portions of this area are
undeveloped (vegetated) or within existing easements held by National Grid for the use and
maintenance of existing overhead transmission facilities. Any areas of wetlands that cannot
be avoided during the installation of transmission facilities will be either fully restored
following construction, or appropriate compensatory mitigation will be implemented.
Onshore land and easement acquisition needs for Phase 1 are described in detail in Section
6.
v. The substation facilities (number of breakers, transformers, etc.) required at each terminal of
the proposed project and information as to how the new facilities would interconnect to any
existing facilities.
As noted above, for Phase I, the Bidder assumes that it would construct, operate and
maintain only OSS foundation and platform, plus equipment on the high side of the generator
transformer(s) on each platform, as part of the ETS network. Remaining equipment on the
platform will installed as part of Bay State Wind’s facilities. The equipment on the high side
of the generator transformer(s) on each platform will be made ready for future interlink to
future phase of the ETS network
The primary components for the OSS and their usage are explained in Table 15.3. Note that
certain components of the OSS would be supplied by the successful bidder for offshore wind
generation.
Number of
Description Purpose units Type of units
Medium Voltage Mainly to connecting strings of WTGs to the MV
Switchgear1 busbar and further to the MV side on the MV/HV
transformer
Grounding Auxiliary Providing auxiliary LV power supply
Transformer1
Neutral Grounding Making a solid grounded MV network
Resistor1
The primary components for the onshore transmission substation and their usage are
explained in Table 15.4 below.
As described in Table 15.4 the OnSS is equipped with harmonic filtering and reactive
compensation equipment. The harmonic filters are present to mitigate any impact of
harmonics on the onshore grid from the WTGs, or dampen any amplification of existing
harmonics present in the onshore grid due to amplification by the export system cable
circuits. Variable and fixed shunt reactors compensate for the export cable charging and
harmonic filters. The variable shunt reactor in connection with the STATCOM will serve to
control the onshore POI bus to a target voltage determined by ISO-NE. The onshore grid
transformers will be equipped with tertiary windings to allow the connection of battery energy
storage if the offshore wind developer chooses to install.
The Underground Interconnections to the Brayton Point Substation and Expansion of Brayton
Point Substation sections in Section 15.1 describes how the new facilities would
interconnect to any existing facilities.
vi. The estimated costs of the proposed project broken out into separate categories as described
below for transmission facilities and substation facilities in nominal year dollars.
a. For cost of service or modified cost of service proposals:
1. Provide the capital cost estimate presented as a buildup of costs by category, such as
environmental, engineering, civil works, materials, equipment, construction, construction
management, physical and price contingencies, allowance for funds used during construction
(AFUDC), and all other categories for which recovery under FERC would be sought. These
categories are illustrative; aggregate costs into the categories most relevant to the development
of the proposed project. All costs should be provided in nominal dollars.
2. For projects with transmission and substation components, separate the costs into two rows
(e.g. use one row for substation construction and a second for transmission construction).
Describe the detailed financial plan on a monthly basis during the construction period, e.g., for
3 years or as long as necessary. The plan should present the costs and financial outlays in each
month of the construction period, and the corresponding sources of financing (equity
contribution and debt drawdown), as in the following illustrative table. Data should include an
estimate of the cost of both physical and price contingencies during the construction period.
The financing plan should indicate the ability to finance the construction of the proposed project
under base case and contingency scenarios.
4. Sources of funds for construction and working capital - include name of entity providing debt
financing, loan amounts, interest rates, repayment period, grace period during construction;
and equity provided by project sponsor.
5. Sources of funds for unexpected repairs or replacement construction during the operating
period, e.g., replacement of tower. Note: the operating period is the applicant’s estimate of the
useful life or accounting life of the transmission project element(s).
b. If the bidder is proposing fixed-rate pricing rather than cost-of-service or modified cost-of-service
pricing, provide sufficient information and assessment to show that the proposed project,
including any necessary transmission network upgrades, is financially viable. In this regard,
provide capital cost estimates and operation and maintenance cost estimates and the basis for
your estimates, including the extent to which estimates are based on vendor contracts or
vendor quotes, your experience in the development, construction and/or operation of similar
projects, your approach regarding contingency and risk management, and your proposed
financing plan. All costs should be provided in nominal dollars, although inflation and cost
escalation estimates should be provided. Please describe in detail the due diligence you have
conducted in developing your pricing and tariff proposal.
Not applicable.
A schedule for the Project is provided in Attachment 9-1 and elaborated upon in Section 9.
As described in Section 6.7, ISO-NE has completed the feasibility study for the wind farm and
is currently performing the System Impact Study ( . The Feasibility Study shows that
the Bidder can connect 800 MW at the Brayton Point POI with no system upgrades required.
The expected timeline for receipt of approvals needed for the interconnection is provided in
Attachment 7-1.
As discussed in Section 9.1, the build time for the OSS and HV and MV electrical equipment
is approximately months with installation completed within a -month window. The lead
time of the export cable is approximately months.
Construction of all onshore facilities (OnSS and Interconnections) is estimated to require
approximately months for completion. Procurement of all onshore materials and
equipment, from the release of initial solicitations (i.e., RFPs) to delivery of all
materials/equipment, will occur over a -month period, likely commencing in
The longest single lead time item is expected to be the STATCOM(s), which will require an
estimated months for fabrication.
viii. Bidder must indicate whether it proposes to recover abandonment costs for its transmission
project from the Distribution Companies, as described in Section 2.2.2.5.2 of this RFP. If so,
Bidder must acknowledge that recovery of any such abandonment costs shall be in accordance
with FERC rules and policies, and also acknowledge that in no event will a Bidder seek to
recover abandonment costs if the abandonment was caused directly or indirectly by some act or
failure to act of the Bidder. Bidder must further affirmatively commit not to seek from FERC or
any other agency or authority any treatment of abandonment costs inconsistent with the
provisions of Section 2.2.2.5.2 of the RFP. To the extent the Bidder proposes to recover
abandonment costs, such proposal should be further described as set forth in Appendix C-3 of
this RFP.
15.2 Proposed Payment Required for the Project and all System Upgrades
(Expandable Transmission Line)
15.2 The proposed payment required for the transmission project and all system upgrades.
i. All proposals must include significant cost containment as stated in the RFP.
ii. List all situations which may change the proposed payments by consumers during the contract
term.
iii. Identify any limits placed upon the bidder’s post-contract term rates according to current FERC
rules.
Consistent with FERC’s Order No. 890 and FERC pro forma open-access transmission tariff,
iv. Identify all other project revenues which may be received by the bidder during the contract term
which would not reduce rates paid by consumers.
Not applicable.
v. If the proposed payments may change during the contract term or the proposal is based on cost
of service, the bidder must provide the method that transmission owner shall use to determine
the payment for the Transmission Project under the transmission Rate Schedule or Tariff and
Service Agreement to be filed with FERC. If the proposed payment is a formula rate, the Eligible
Bidder must also provide the formula and its proposed inputs that the transmission owner will
file with FERC.
vi. If the proposed payment is based on the Transmission Project’s cost of service and may change
during the contract term based on changes in the cost of service, a full revenue requirements
model must be included and submitted as a working Excel spreadsheet with the formulas
intact.
a. Provide the annual revenue requirement forecasts for the project – including assumptions.
Provide a draft version of the revenue requirement calculation in a format that is similar to what
would be included in the Rate Schedule or Tariff and Service Agreement application to FERC,
indicating the forecast revenue requirement amounts and all assumptions used in the
calculations. This should include but not be limited to the assumptions regarding rate of return,
depreciation life, split between debt and capital, AFUDC and weighted cost of capital, and a
detailed estimate of the anticipated average annual operating and maintenance cost. Provide
the information requested in Section 14.1.a of the Bidder Response Package.
Not applicable; the Bidder is not proposing different interconnection scenarios for
As discussed in Sections 6.6 and 6.7, there are no anticipated transmission upgrades
beyond the proposed POI (Brayton Point).
x. Please describe the coordination of the availability of the Offshore Wind Energy Generation and
any associated transmission or distribution facilities. All proposals must include a project
schedule, and proposals including a combination of transmission and Offshore Wind Energy
Generation should propose complete critical path schedules, for both elements of the project,
from the notice of selection for contract consideration to the start of commercial operations (the
“Baseline Schedule”). Please describe all aspects of your proposal that protect ratepayers from
risks associated with payments for transmission costs when any associated expected Offshore
Wind Energy Generation, as proposed by the bidder, is absent, reduced, or curtailed as
compared to the Baseline Schedule.
The Phase I transmission system in this Bid will be constructed by the Bidder in conjunction
with the corresponding offshore wind generation facility. A detailed schedule for the Project is
provided in Attachment 9-1 and elaborated upon in Section 9.
The Bidder assumes the reference to Section 14.2 is meant to refer to Section 15.2.
As referenced in Section 15.2,
In addition to the reliability benefits described in Sections 3.3 and 3.4, both the OSS and
OnSS have transformers which provide redundancy in the event of an
unexpected transformer outage. This means the Project can operate up to percent power
output during an onshore or offshore transformer outage, this results in an energy capture of
up to percent, based on a yearly wind distribution profile.
Additionally, the OnSS is equipped with two STATCOM device and variable shunt reactors
which are configured to control the voltage at the POI to a predefined target determined by
ISO-NE. This ensures the voltage at the POI is maintained at a steady level while operational.
In addition, additional reactive power can be produced during onshore grid faults to
contribute to the ISO-NE grid stability.
Finally, the battery storage contributes towards the reliability and security of the ISO-NE grid
as described in Sections 3.3 and 3.4.
The Bidder has attached a mark-up of each form of the PPA provided at Appendices C-1 and
C-2 of the RFP (Attachment 16-1). In line with paragraph 2.2.1.9 of the RFP, Bidder has kept
its proposed changes to the bare minimum and our proposed changes fall into the following
categories:
non-substantive corrections and edits;
revisions intended to allow us to offer the lowest possible prices and increase
economic benefits without shifting any material risk onto the EDCs or ratepayers.
Our mark-ups include “notes to draft” explaining our proposed changes (other than the non-
substantive corrects and edits), however the key revisions are as follows:
The Bidder has attached a proposed form of Transmission Agreement (Attachment 17-1),
which the Bidder has referred to in this Bid as the “ODFA.” that has been drafted to comply
with the requirements set forth in Appendix C-3 of the RFP and to provide a reasonable
allocation of risk between the Bidder and EDCs whilst at the same time complying with
applicable FERC rules and policies.
The Bidder’s proposed ODFA which meets the requirements of the RFP and Appendix C-3. For
further details on the ODFA, please see Section 15.
The Bidder also sets out in Attachment 17-2 a chart that cross-references the Appendix C-3
requirements to the corresponding sections in the proposed Transmission Agreement that
reflects the Bidder’s proposals in respect of the Appendix C-3 requirements.
ATTACHMENTS