SEA provides Offshore Wind (OSW) focused sellers, buyers, investors and policymakers with cross-cutting advisory, analytical and strategic support to guide our clients to take optimal actions and make informed decisions in the rapidly expanding OSW policy and market landscape.

 

Conventional economic models are not designed to answer systemic questions impacted by dynamic interactions between development, procurement, & investment decisions over time in the Northeast U.S. offshore wind landscape. SNOWBaL is. 

 

Offshore Wind Experience

SEA has been supporting OSW policy and market development in the Northeast US since its early phase, supporting the first U.S. state study of support approaches for OSW and supporting contract approval for the Block Island Wind Farm, the first OSW farm in the U.S. Our work spans a range of categories, read more below.

Buy-Side: Supply Procurement and Offtake Support

  • Procurement Opportunity Assessment: For a utility seeking to purchase hundreds of MW of OSW for its supply portfolio, SEA informed the client’s strategy by distilling the state of the industry (including leases, procurements, development and contracting status) and assessing the offtake OSW opportunity,
  • Support for Negotiated OSW Procurement: For a confidential client seeking an OSW PPA, sought expressions of interest from developers in OSW offtake; arranged and supported negotiations; and developed supporting materials for regulatory support.
  • OSW Expected PPA Pricing Benchmarking: For a confidential client seeking an OSW PPA, SEA conducted an OSW Pricing Benchmark Analysis by modeling expected benchmarks of OSW bundled PPA price levels and their evolution over time using SEA’s proprietary Simulator of Northeast Offshore Wind Buildout and LCOE (SNOWBaL) model.
  • Explore State OSW Procurement and Contracting Options: For NYSERDA and NY Dept. of Public Service, supported development and drafting of New York Offshore Wind Policy Options Paper for Procurement and Contracting (part of NY OSW Master Plan)
  • Development of State OSW Procurements: SEA supported NYSERDA in development of New York’s First Offshore Wind Procurement, ORECRFP18-1.

 

Sell-Side: OSW Developer and Investor Support

  • Competitive Market Analysis for OSW Lease Valuation: Licensed a free-standing version of its competitive OSW dynamics model, SNOWBaL, to a developer for purposes of strategic development of bids for a BOEM lease area. SEA modeled competitive OSW market dynamics and procurement price outcomes, including benchmarking and calibration projected prices to all past northeast US OSW procurements.
  • NY OSW Market Opportunities Assessment: SEA developed a 40-slide deck for a confidential OSW developer, assessing the New York market landscape for OSW beyond the NYSERDA OREC procurement opportunities. The assessment characterized different potential market segments for OSW supply and quantified and evaluated the quality of current and future commercial opportunities.
  • NY ORECRFP Bid Support on Energy Storage: SEA provided research, analysis, and strategic guidance, and bid text drafting, related to qualitative assessment of the value of energy storage with a goal of helping an offshore wind bidder maximize non-price benefits in a NYSERDA solicitation.
  • NJ, MD, and NY OREC Market Assessment: SEA provided to an OSW developer an in-depth 118-slide deck brief that covered each of NJ, MD, and NY’s unique OREC contracting approach, including its objectives, potential legal or regulatory issue/challenges, commercial risks, and opportunities and discussed each state’s OREC procurement approach, targets and schedule, evaluation/selection, and experience to-date with OREC procurement and contracting.
  • OSW Import Strategic and Technical Assistance: SEA assisted two out-of-state OSW developers in examining the opportunities and risks of importing electricity into NY, including analysis of price differentials and congestion across import interfaces to quantify revenue and delivery risks; and summarizing and interpreting wholesale market rules and transactional structures.
  • NYPA Large-Scale Renewables: SEA assisted an out-of-state offshore wind project developer in preparing a bid into the New York Power Authority (NYPA)’s 2017 Large Scale Renewable RFP, providing technical assistance regarding importing electricity into New York, addition research and data analysis, and assisting the developer with narrative framing around the project’s benefits for NYPA’s customers.
  • Overview and Comparative Analysis of Offshore Wind Contracts To-Date in New England, NY, and NJ: SEA analyzed and summarized pricing, terms and conditions and commercial aspects of OSW contracts awarded to date.
  • Block Island Wind Farm Support for PPA Regulatory Approval: SEA performed analysis benchmarking the contract price of the Block Island Wind Farm to other European offshore wind installations in support of a filing for approval of National Grid’s offtake contract by the Rhode Island PUC. SEA was part of a team that ultimately secured regulatory approval for the first successful offshore wind PPA in the United States.

Market Analysis

  • Northeast Offshore Wind Regional Market Characterization Report: SEA led a team developing the Northeast Offshore Wind Regional Market Characterization Report for the Roadmap Project for Multi-State Cooperation on Offshore Wind for MassCEC, DOER, CESA, NYSERDA and RI OER. This report identified the opportunities and challenges that will shape the OSW market. It estimates the scale of potential offshore wind deployment to serve Northeast markets through 2030, given the nature of the offshore wind resource, federal lease opportunities, state policies, regional energy needs, existing electricity generation and planned retirements, and transmission capacity.
  • SEA Webinar, Offshore Wind Sets Sail in the Northeast: Detailing MA Section 83C RFP Bids, New CT & NY Procurement Opportunities, and More: SEA conducted a public for-fee webinar in which SEA reviewed distilled, analyzed and compared all the public proposal documents and supplementary sources regarding generation, energy storage and transmission bids. SEA interviewed key stakeholders (offshore wind developers, transmission and energy storage partners) to supplement interpretation of the public information. SEA analyzed and compared the nuances of alternative transmission approaches proposed under Section 83C, as well as competing visions espoused by an independent offshore transmission developer. SEA distilled and compared Section 83C procurement in Massachusetts with new offshore wind initiatives proposed in other northeast states and summarized the results of a New York offshore wind cost study (to which SEA contributed to the development).

Cost and Pricing Analysis

  • Northeast U.S. Offshore Wind Deployment and Procurement Opportunities Modeling: SEA was commissioned to conduct assessment and analysis of the New Jersey, Maryland, and New York OREC Markets, as well as opportunities in Delaware. SEA licensed a version of SEA’s in-house Excel-based Northeast U.S. Offshore Wind Deployment Model on competitive offshore wind procurement dynamics (a predecessor of the Simulator of Northeast Offshore Wind Buildout and LCOE (SNOWBaL) model) to support its assessment of OREC market opportunities. Later in the same year, SEA performed feature augmentations and upgrades to the initial model, as well as periodic updates to maintain the model thereafter, to support bid preparation for the BOEM New York Bight offshore lease auction and consideration of broader strategic Northeastern and Mid-Atlantic U.S. offshore wind development opportunities.
  • OSW Expected PPA Pricing Benchmarking: For a confidential client seeking an OSW PPA, SEA conducted an OSW Pricing Benchmark Analysis by modeling expected benchmarks of OSW bundled PPA price levels and their evolution over time using SEA’s proprietary Simulator of Northeast Offshore Wind Buildout and LCOE (SNOWBaL) model.

Regulatory, Policy, Legislative and Wholesale Market Tracking and Analysis

Our Offshore Wind Experts

Bob Grace

President and Managing Director

Po-Yu Yuen

Senior Consultant & Market Analytics Manager

Mary McMahon

Senior Analyst

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