US MARKET OVERVIEW & INSIGHTS

OFFSHOREWINDUS.ORG

BUSINESS NETWORK FOR OFFSHORE WIND

01 Not-for-Profit02 Focus on developing US offshore wind and its supply chain03 Provide: Information, Education, Introductions

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US OSW STRUCTURE

STATESPolicy, market drivers, regulations

US BOEM / US BSEELeasing and approval of plans, regulators

PRIVATE DEVELOPERS / LEASEESAcquire lease rights and develop projects

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BUSINESS NETWORK OSW

STATES DRIVE MARKET CREATIONRPS Policies Have Been One Key Driver for RE Generation Growth RPS requirements constitute roughly half of total U.S. RE growth since 2000

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Growth in Non-Hydro Renewable Generation: 2000-2017

Notes: Minimum Growth Required for RPS excludes contributions to RPS compliance from pre-2000 vintage facilities, and from hydro, municipal solid waste, and non-RE technologies. This comparison focuses on non-hydro RE, because RPS rules typically allow only limited forms hydro for compliance.

• Total non-hydro RE generation in the U.S. grew by 332 TWh since 2000– Many factors contributed to that growth (tax credits,

other incentives, cost declines, etc.)

• RPS policies required 150 TWh increase over the same period (45% of total RE growth)– Not strict attribution: some of that would have

occurred without RPS

• RE growth outside of RPS’s associated with:– Voluntary green power markets, including corporate

procurement– Net metering– Economic utility purchases

332

150

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50

100

150

200

250

300

350

2000

2001

2002

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2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

TWh Actual Growth inU.S. Non-Hydro RE

Generation Since 2000

Minimum RequiredGrowth for RPS

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OH

EMPIRE WIND (EQUINOR)

MAYFLOWER (EDPR/SHELL)

EQUINOR

VINEYARD WIND [800 MW]

REVOLUTION WIND (ØRSTED) [600 MW]

BLOCK ISLAND WF (ØRSTED) [30 MW]

SOUTH FORK (ØRSTED) [90–130 MW]

BAY STATE WIND (ØRSTED)

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2

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4

VINEYARD WIND

1. FAIRWAYS NORTH 3. HUDSON NORTH 2. FAIRWAYS SOUTH 4. HUDSON SOUTH

ATLANTIC SHORES (EDF/SHELL)

OCEAN WIND (ØRSTED)

GARDEN STATE OFFSHORE ENERGY (ØRSTED)

SKIPJACK WF (ØRSTED) [120 MW]

US WIND (MD) [248 MW]

DMME RESEARCH AREA

DOMINION

AVANGRID RENEWABLES

OAHU NORTH CALL AREA

MORRO BAY CALL AREA

HUMBOLDT CALL AREA

OREGON STATE UNIVERSITYWAVE ENERGY TEST SITE PROPOSED LEASE AREA

DIABLO CANYON CALL AREA

OAHU SOUTH CALL AREA

EAST COASTVineyard Wind [800 MW]

Block Island Wind Farm (Ørsted) [30 MW]

Revolution Wind (Ørsted) [600 MW]

South Fork (Ørsted) [90–130 MW]

Equinor

Mayflower (EDRP/Shell)

Vineyard Wind

Bay State Wind (Ørsted)

Fairways North / South

Hudson North / South

Empire Wind (Equinor)

Atlantic Shores (EDF/Shell)

Ocean Wind (Ørsted)

Garden State Offshore Energy (Ørsted)

Skipjack Wind Farm (Ørsted) [120 MW]

US Wind (MD) [248 MW]

DMME Research Area

Dominion

Avangrid Renewables

WEST COASTOregon State University Wave Energy Test Site

Proposed Lease Area

Humboldt Call Area

Morro Bay Call Area

Diablo Canyon Call Area

Oahu North Call Area

Oahu South Call Area

© 2019 BUSINESS NETWORK FOR OFFSHORE WIND ALL RIGHTS RESERVED

Information courtesy of BOEMboem.gov/Renewable-Energy/

Not to Scale

US OFFSHOREWIND MARKETBUSINESS NETWORK FOR OFFSHORE WIND

UNLEASED PRIMARY SECONDARY

LEASED

FINANCIAL MECHANISM SECURED

UNLEASED PRIMARY SECONDARY

LEASED

FINANCIAL MECHANISM SECURED

NC

VA

RI

DE

NJ

PA

NY

MA

CT

MD

U.S. OFFSHOREWIND MARKET

BUSINESS NETWORK FOR OFFSHORE WIND

FAIRWAYS NORTH 34FAIRWAYS SOUTH

HUDSON NORTHHUDSON SOUTH

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MAYFLOWER (EDPR/SHELL)EQUINORVINEYARD WIND [800MW]

BAY STATE WIND (ØRSTED)VINEYARD WIND

REVOLUTION WIND FARM (ØRSTED) [600MW]

SOUTH FORK WIND FARM (ØRSTED) [90-130MW]BLOCK ISLAND WIND FARM (ØRSTED) [30MW]

EMPIRE WIND (EQUINOR)ATLANTIC SHORES (EDF/SHELL)OCEAN WIND (ØRSTED)GARDEN STATE OFFSHORE ENERGY (ØRSTED)SKIPJACK WIND FARM (ØRSTED) [120MW]US WIND (MD) [248MW]

DOMINIONDMME RESEARCH AREAAVANGRID RENEWABLES

0

2K

4K

6K

8K

10K

12K

14K

16K

18K

20K

22K

201920182017201620152014

Total Megawatts in the United States

30 MW 30 MW 456 MW

10,370 MW

20,970 MW

The trends of sum of Megawatts and sum of Megawatts for year

Meg

awat

ts

US MARKET PIPELINE GROWTHO

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WIN

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21 GW15US offshore wind lease areas equalling potential

2019/07/19

APPROVED / NY, MD, MA, CT, RI5.1 GW

PENDING / OH, MA, CT1,330—2990 MWs

COMPLETED / RIBlock Island Wind FarmAmerica’s first offshore wind farm

Massachusetts offshorewind price

6.5¢kWh

New Jersey offshorewind price

9¢kWh

Maryland offshorewind price

13¢kWh

by 203520 GW

present offtake agreements5 GW

invested4th quarter 2018

$1B

181,000 jobs by 2050

SUPPLY CHAIN CAPACITY

CHALLENGES

TurbineManufacture

Rotor

Nacelle

Tower

Foundations

Cables

OffshoreSubstation

OnshoreElectrical

Foundations

CablesTurbine

OffshoreSubstation

Operations

Maintenance

OnshoreElectrical

EnvironmentalSurvey

SeabedSurvey

Met Mast

DevelopmentServices

Other PlantManufacture

Installation &Commissioning

Operations &Maintenance

Development &Consenting

GRID AND TRANSMISSION

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Royal IHC

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OSW POLICY CHALLENGES

Grid and Transmission

Jones Act

Expiring ITC

Local Content

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KEY OFFSHORE WIND STAKEHOLDERS

OSW

Military

VesselOperators

Fisheries

Coastal Townsand Public

whyoffshorewind.org

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WHY OFFSHORE WIND? whyoffshorewind.org

LIZ BURDOCKPRESIDENT & CEOBUSINESS NETWORK FOR OFFSHORE WINDliz@offshorewindus.org / 443.652.3242

offshorewindus.org

business network for offshore wind

@offshorewindus

business network for offshore wind

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