Appendices Vision: Wind A New Era for Wind Power in the United States ii This page is intentionally left blank Table of Contents s t n e t n o C Appendix A: Glossary ..................................................................................................................................................1 of e bl Appendix B: Summary of 20% Wind Energy by 2030 ...................................................................................9 a T — Appendix B References .................................................................................................................................................................12 x di n e Appendix C: Regulatory Agencies ........................................................................................................................13 p p A Appendix D: Wind Project Development Process and Cost ......................................................................15 Appendix E: Domestic Supply Chain Capacity ................................................................................................17 E.1 Domestic Manufacturing Capacity ......................................................................................................................................17 E.2 Domestic Content and International Trade .....................................................................................................................18 E.3 Raw Materials and Energy ....................................................................................................................................................19 E.4 Repair and Refurbishment Manufacturing .....................................................................................................................22 E.5 Transportation Constraints ..................................................................................................................................................22 E.6 Installation ................................................................................................................................................................................24 Appendix E References ................................................................................................................................................................25 Appendix F: Test Facilities .......................................................................................................................................27 Appendix G: Regional Energy Deployment System (ReEDS) Model— Additional Inputs and Assumptions ......................................................................................................................31 G.1 ReEDS Model .............................................................................................................................................................................31 G.2 Generator Assumptions—Technology Cost and Performance .................................................................................33 G.2.1 General Technology Assumptions ............................................................................................................................35 G.2.2 Solar Technologies........................................................................................................................................................39 G.2.3 Hydropower ....................................................................................................................................................................42 G.2.4 Geothermal .....................................................................................................................................................................43 G.2.5 Capital Cost Multipliers ...............................................................................................................................................44 G.3 Fuel Prices ................................................................................................................................................................................45 G.4 Retirements ............................................................................................................................................................................47 G.5 Financial Assumptions .........................................................................................................................................................48 G.6 End-Use Electricity Demand .............................................................................................................................................49 G.7 Transmission Assumptions ..................................................................................................................................................50 G.7.1 Long Distance Transmission ........................................................................................................................................50 G.7.2 Spur-line Transmission and Geospatial Supply Curves ......................................................................................52 G.7.3 Transmission Costs ........................................................................................................................................................52 G.7.4 Transmission Dispatch .................................................................................................................................................54 Appendix G References ................................................................................................................................................................55 Table of Contents iii s Appendix H: Wind Vision Wind Power Technology Cost and Performance Assumptions ...............59 t n e t H.1 Overview ...................................................................................................................................................................................59 n o H.1.1 Development of the Wind Energy Supply Curve ..................................................................................................59 C f H.1.2 Primary Elements of the Wind Energy Supply Curve .........................................................................................66 o e H.1.3 Future Wind Plant Cost and Performance Assumptions ...................................................................................68 bl Ta H.2 Base-Year Wind Plant Techno-Economic Cost and Performance Parameters .....................................................71 — H.2.1 Introduction ......................................................................................................................................................................71 x di H.2.2 AWS Truepower Wind Resource Data .....................................................................................................................71 n e H.2.3 Land-Based Techno-Economic Data .......................................................................................................................74 p p H.2.4 Offshore Technology Costs ........................................................................................................................................85 A H.3 Grid Connection Costs ........................................................................................................................................................101 H.3.1 Overland Grid Connection Costs ..............................................................................................................................101 H.3.2 Offshore Cable and Construction Distance-Based Capital Cost Factor .....................................................102 H.3.3 Grid Connection Cost Curves ..................................................................................................................................104 H.4 Financing Assumptions .....................................................................................................................................................108 H.4.1 Project Financing Assumptions ..............................................................................................................................108 H.4.2 Construction Finance Costs ....................................................................................................................................109 H.5 LCOE Supply Curves ...........................................................................................................................................................109 H.6 Future Cost Trajectories.......................................................................................................................................................113 H.6.1 Land-Based Future Cost Reduction Scenarios .....................................................................................................113 H.6.2 Offshore Future Cost Reduction Scenarios ..........................................................................................................116 Appendix H References ..............................................................................................................................................................119 Appendix I: JEDI Model Documentation ..........................................................................................................121 I.1 JEDI Parameterization: Local Content, Expenditures, and Capacity ........................................................................121 I.2 JEDI Results .............................................................................................................................................................................122 I.3 Aggregation and Geography ..............................................................................................................................................124 I.4 Explanation of JEDI Limitations and Caveats ................................................................................................................124 I.5 Offshore Wind Lease Calculations ....................................................................................................................................125 Appendix I References ................................................................................................................................................................126 Appendix J: Life-Cycle GHG Emissions and Net Energy Metrics ............................................................127 J.1 Life-Cycle GHG Emissions ....................................................................................................................................................127 J.2 Net Energy Metrics ................................................................................................................................................................133 Appendix J References ................................................................................................................................................................141 Appendix K: Water Usage Reduction, Supplemental Results ................................................................145 iv Table of Contents Appendix L: Health and Environmental Impact Methods ........................................................................149 s t n e L.1 Emission Rates .......................................................................................................................................................................149 t n o L.2 Potential Health Benefits from Emission Reductions ................................................................................................150 C f o L.3 Comparison of EPA to AP2 Methods ...............................................................................................................................153 e bl L.4 Uncertainties Due to Regulatory Representation .......................................................................................................153 a T — Appendix L References ..............................................................................................................................................................156 x di n Appendix M: Detailed Roadmap Actions ........................................................................................................159 e p p A M.1 Wind Power Resources and Site Characterization ....................................................................................................159 M.2 Wind Plant Technology Advancement .........................................................................................................................165 M.3 Supply Chain, Manufacturing, and Logistics ................................................................................................................177 M.4 Wind Power Performance, Reliability, and Safety ......................................................................................................182 M.5 Wind Electricity Delivery and Integration .....................................................................................................................187 M.6 Wind Siting and Permitting .............................................................................................................................................195 M.7 Collaboration, Education, and Outreach .....................................................................................................................209 M.8 Workforce Development ....................................................................................................................................................213 Appendix M References ..............................................................................................................................................................217 Appendix N: Contributors .....................................................................................................................................219 Overall Direction ...........................................................................................................................................................................219 Lead Authors and Contributors ................................................................................................................................................221 Appendices ....................................................................................................................................................................................224 Contributing Task Force Members ..........................................................................................................................................227 Communications and Outreach ...............................................................................................................................................235 External Reviewers ......................................................................................................................................................................235 Additional Supporting Editors .................................................................................................................................................235 Appendix O: Geographic Impacts of Wind Technology Research and Development ....................237 O.1 Technology Impacts Since 2008 ......................................................................................................................................238 O.2 Future Impacts ....................................................................................................................................................................240 O.3 Discussion ..............................................................................................................................................................................247 O.4 Summary and Conclusions ..............................................................................................................................................249 Appendix O References...............................................................................................................................................................251 Table of Contents v vi This page is intentionally left blank Appendix A: Glossary y r a s s o Term Definition Gl    | Advanced stage of An offshore wind project is considered to be in an advanced stage of A development development when it has achieved at least one of the following: (1) received x approval for an interim limited lease or a commercial lease, (2) conducted di n baseline or geophysical studies at the proposed site with a meteorological tower e p erected and collecting data, boreholes drilled, or geological and geophysical p A data acquisition system in use, or (3) signed a power purchase agreement with a power off-taker. Balance of system Infrastructure elements of a wind plant other than the turbines; e.g., substation hardware, cabling, wiring, access roads, and crane pads. Balancing area A predefined area within an interconnected transmission grid where a utility, an (balancing authority independent system operator, or a transmission system operator must balance area) load (electrical demand) and electrical generation, while maintaining system reliability and continuing interchanges with adjoining balancing areas. Baseline Scenario The Baseline Scenario applies a constraint of no additional wind capacity after 2013 (wind capacity fixed at 61 GW through 2050). It is the primary reference case to support comparisons of costs, benefits, and impacts against the Study Scenario. Blade pitch regulation Changing the orientation of the blades to vary a wind turbine’s output. or control Business-as-Usual The Business-as-Usual (BAU) Scenario does not prescribe a wind future (BAU) Scenario trajectory, but instead models wind deployment under policy conditions current on January 1, 2014. The BAU Scenario uses demand and cost inputs from the Energy Information Administration’s Annual Energy Outlook 2014. Capacity The amount of delivered or required electrical power, for which manufacturers rate a generator, turbine, transformer, transmission circuit, station, or system. Capacity factor A measure of the productivity of a power plant, calculated as the amount of energy that the power plant produces over a set time period, divided by the amount of energy that would have been produced if the plant had been running at full capacity during that same time interval. Most wind power plants operate at a capacity factor of 25% to 40%. Capacity value The probability of a power plant being available during high-demand situations. Capital costs The total investment cost for a power plant, including balance of system costs. Carbon dioxide (CO) A colorless, odorless, noncombustible gas present in the atmosphere. It is 2 formed by the combustion of carbon and carbon compounds (such as fossil fuels and biomass); by respiration, which is a slow form of combustion in animals and plants; and by the gradual oxidation of organic matter in the soil. CO is a 2 greenhouse gas that contributes to global climate change. Appendix A | Glossary 1 y Term Definition r a s s o Competitive Renewable A mechanism of the renewable portfolio standard in Texas designed to ensure Gl Energy Zones (CREZ) that the electricity grid is extended to prime wind energy areas. The designation    | of these areas directs the Electric Reliability Council of Texas to develop plans for transmission lines to these areas that will connect them with the grid. See A x also “Electric Reliability Council of Texas” and “renewable portfolio standard.” di n e Complex flow The wind conditions and dynamics—and how these interact with wind turbine p p arrays in terms of structural load and power production. The spatially and A temporally dynamic interactions are known as “complex flow.” Condition-based Sensors that measure key operating characteristics of gearboxes, generators, monitoring blades, and related equipment to alert operators when nonstandard operating conditions occur. It is a major component of predictive maintenance. Conventional fuel Coal, oil, and natural gas (fossil fuels); also nuclear fuel. Curtailment When the dispatch order from the transmission system operator to the wind plant is to reduce or stop generation, even though the wind resource is available. Direct-drive generators Generators that eliminate the need for a gearbox. Dispatch The physical inclusion of a generator’s output onto the transmission grid by an authorized scheduling utility; the real-time centralized control of the on-line generation fleet to reliably and economically serve net system load. Distributed wind/ Wind turbines that are connected either physically or virtually on the customer generation side of the meter to offset all or a portion of the energy consumption at or near the location of the project, or that are connected directly to the local grid to support grid operations. Distribution The process of distributing electricity. Distribution usually refers to the series of power poles, wires, and transformers that run between a high-voltage transmission substation and a customer’s point of connection. Drive train Converts a rotor’s rotational power into electrical power, generally includes a main shaft, gearbox (unless a direct-drive configuration is used), generator, and power converter. It is part of the nacelle assembly. Economically efficient Denotes the most cost-effective way of achieving the goal of operating the power system reliability with a given level of wind energy. Electricity generation The process of producing electricity by transforming other forms or sources of energy into electrical energy. Electricity is measured in kilowatt-hours. Energy The capacity for work. Energy can be converted into different forms, but the total amount of energy remains the same. 2 Appendix A | Glossary Term Definition ERCOT (Electric One of the 10 regional reliability councils of the North American Electric Reliability Council Reliability Council, ERCOT is a membership-based 501(c)(6) nonprofit of Texas) corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature. See also “North American Electric Reliability Council.” Feathering the blades Changing the orientation of the blades to vary a wind turbine’s output. Flexibility The ability of the power system to respond to variations in supply and/or demand. Full-time employee An FTE job is the equivalent of one person working full time (40 hours per (FTE) week) for one year or two people working half time for one year. Gearbox A system of gears in a protective casing used to increase or decrease shaft rotational speed. Generator A device for converting mechanical energy to electrical energy. Gigawatt (GW) A unit of power, which is instantaneous capability, equal to one million kilowatts. Gigawatt-hour (GWh) A unit or measure of electricity supply or consumption of one million kilowatts over a period of one hour. Global warming A term used to describe the increase in average global temperatures caused by the greenhouse effect. Greenhouse gases Gases such as water vapor, CO, methane, and low-level ozone that are 2 (GHGs) transparent to solar radiation, but opaque to long-wave radiation. These gases contribute to the greenhouse effect. Grid A common term that refers to an electricity transmission and distribution system. See also “power grid” and “utility grid.” Hub height and tower Hub height and tower height are generally synonymous. The tips of the rotor height blades extend above the hub height by the length of the blades, reaching an even better wind resource. Impacts The significant or major effects caused by wind power development. They can be positive (benefits), negative (costs), or neutral. Inflow The wind encountering the rotor, including many characteristics (velocity, angle, etc.). Instantaneous penetration The ratio of the wind plant output to load at a specific point in time, or over a short period of time. Investment tax credit A tax credit that can be applied for the purchase of equipment, such as (ITC) renewable energy systems. Appendix A | Glossary 333 Term Definition Kilowatt (kW) A standard unit of electrical power, which is instantaneous capability, equal to 1,000 watts. Kilowatt-hour (kWh) A unit or measure of electricity supply or consumption of 1,000 watts over a period of one hour. Levelized cost of The present value of total costs divided by the present value of energy electricity (LCOE) production over a defined duration. Lidar or Doppler lidar Uses atmospheric scattering of beams of laser light to measure profiles of the wind at a distance. Load (electricity) The amount of electrical power delivered or required at any specific point or points on a system. The requirement originates at the consumer’s energy- consuming equipment. Megawatt (MW) The standard measure of electrical power plant generating capacity. One megawatt is equal to 1,000 kilowatts or 1 million watts. Megawatt-hour (MWh) A unit of energy or work equal to 1,000 kilowatt-hours or 1 million watt-hours. Met tower A meteorological tower erected to verify the wind resource found over a certain area of land. Metric tonne (ton) 1,000 kilograms or approximately 2,204.6 lb. Micro-siting Careful placement of turbines within a wind project. Modified Accelerated A U.S. federal system through which businesses can recover investments in Cost Recovery System certain property through depreciation deductions over an abbreviated asset (MACRS) lifetime. For solar, wind, and geothermal property placed in service after 1986, the current MACRS property class is five years. With the passage of the Energy Policy Act of 2005, fuel cells, micro turbines, and solar-hybrid lighting technologies became classified as five-year property as well. Nacelle assembly The protective shell (nacelle) on top of the tower and its contents: generator, gearbox, and control systems that make up a wind turbine. Nitrogen oxides (NO) The products of all combustion processes formed by the combination of nitrogen x and oxygen. NO and sulfur dioxide (SO) are the two primary causes of acid rain. x 2 Particulate matter Air pollutant particulate matter (PM); coarse particles (PM ) and fine particles 10 (PM ). Particulate matter can enter the lungs and cause human health impacts. 2.5 Penetration of wind The share of total wind generation relative to total end-use energy demand, energy expressed as a percentage. Permanent magnet Synchronous generators with permanent magnets often based on generators rare-earth materials. 4 Appendix A | Glossary