Belgian Transmission System Operator to Invest in Atlantic Wind Connection
Belgian transmission company Elia is joining the effort to create a new offshore electric transmission backbone system along the Mid-Atlantic region of the U.S. east coast. The Elia Group operates transmission systems in both Belgium and Germany that, among other things, accommodate large amounts of wind energy.
As an investor and a provider of consulting services to the project, Elia's participation brings the benefit of their first-hand experience working to develop and construct the European Super Grid, an initiative of similar importance, size and scope to the AWC.
"Europe has 20 years of experience with offshore wind supported with separate transmission lines for each wind farm. Now Europe is moving to develop a Super Grid, similar to the AWC and Elia is one of the first movers in developing the Super Grid,” said AWC CEO Robert L. Mitchell. "Elia joining the AWC is a strong confirmation that we are on the right track and that we will see a new offshore wind industry in the United States. We can learn a lot from each other."
"The AWC will provide the foundation for creating an entirely new offshore wind energy industry in the US," said Elia CEO Daniel Dobbeni. "Elia's first-hand experience constructing the North and Baltic Sea portion of the European Super Grid will be valuable to the AWC team, as the European offshore grid will entail many of the same challenges that AWC will face."
The Elia Group began its offshore experience by building the first offshore HVDC project in Europe. Pulling from this experience, the Elia Group is now playing a major role in the construction of the North and Baltic Sea portion of the European Super Grid, a transmission network that will interconnect Europe and regions around its borders with a high-voltage direct current power grid. The European grid concept is designed to incorporate considerable renewable energy resources, particularly wind energy, and reinforce security of supply.
The agreements provide that Elia will become a 10% co-investor in the development of the AWC project and offer consulting services. The consulting is designed to take advantage of Elia's overall transmission expertise, as well as its direct experience with offshore transmission development in Europe.
AWC launched in 2010 and is developed by the AWC team, led by the independent transmission company Trans-Elect. Good Energies, Google and Marubeni Corporation are the other investment sponsors. The innovative project has been hailed by federal, state and industry officials as a major step forward in their effort to site thousands of megawatts of clean wind generation some 15 miles out to sea in federal waters along the Mid-Atlantic coast between New Jersey and Virginia. The project contributes to stimulating jobs and strengthens the security of the electric grid and our national energy independence.
Recently, a study of the AWC project by the Brattle Group concluded that the offshore wind generation interconnected through the project will reduce system-wide production costs from fossil-fuel fired generation by $1.1 billion per year. In addition, the development of the AWC Project and associated offshore wind generation will create thousands of jobs, improve electric system reliability and reduce CO2 emissions by 16 million tons annually, the equivalent of taking 3 million cars off the road. The project recently received FERC approval for rate incentives that will greatly enhance development, financing and construction of the project. The project has already filed to acquire offshore rights-of-way with the Interior Department’s BOEMRE, which has told Congress the project is on the fast-track.
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