Vision for a Lake Erie Wind Energy Center

1. Vision for a Lake Erie Wind Energy Center RFQ Conference March 28, 2007

2. Today’s Meeting • Provide overview of Lake Erie Wind Energy Center • Discuss information sought in RFQ responses • Answer questions from interested parties

3. Cuyahoga County, Ohio • 459 sq. mi., ~1.3 million residents, including Cleveland and many of its suburbs • County government: • Three elected Commissioners, ~9400 employees, ~$1.4 billion budget • ~40 buildings, ~10 MW of load, currently supplied by coal power • Uncommon opportunity for wind: • Bounded on the north by Lake Erie, with very attractive wind resource (and proximity to Eastern North America load centers) • Supportive political environment: strong desire for economic development and environmental improvement, minimal public opposition

4. Energy Task Force Cuyahoga Regional Energy Development Task Force (CREDTF) • Authorized by Commissioners in August 2006 • Mission: to generate benefits for County citizens by recommending a plan to promote advanced energy for… • Economic development: job creation through new business activity • Reduced energy expenditures by local consumers (especially with rate caps expiring end-2008) • Environmental improvement (especially air quality) • Improved image: from “Burning River” Rust Belt to “Green City on a Blue Lake” • First priority: exploring offshore wind energy deployment and R&D potential in Lake Erie

5. CREDTF Members • Bill Mason, Cuyahoga County Prosecutor (Chair) • Steve Dever, Cuyahoga County Prosecutor’s Office (Secretary) • Paul Oyaski, Director, Cuyahoga County Department of Development • Robert Klaiber, Cuyahoga County Engineer • Paul Alsenas, Cuyahoga County Planning Commission • Andrew Watterson, Manager of Sustainability, City of Cleveland • Matt Zone, Councilman, City of Cleveland • Michael Wager, Vice Chair of Cleveland/Cuyahoga Port Authority • Hon. Deborah Sutherland, Mayor of Bay Village • Clarence Rogers, Former Commissioner, Public Utilities Commission of Ohio • Richard Stuebi, BP Fellow, The Cleveland Foundation • Susan Luria, VP of Attraction/Retention, Team NEO • Dr. Larry Viterna, NASA Glenn Research Center • Linda Abraham-Silver, Executive Director, Great Lakes Science Center • Dave Rosenberg, Manager, Market Development, GE Energy • Dr. Saurabh Lawate, Commercial Manager, The Lubrizol Corporation • Sohan Uppal, VP Technology, Eaton Fluid Power Group • Jack Myslenski, EVP, Parker Hannifin Corporation • Dave Nash, McMahon DeGulis LLP • Lou McMahon, Thompson Hine

6. Lake Erie Wind Resource

7. Great Lakes Wind Potential • Enormous market opportunity for wind energy in Great Lakes: • But, no company or region in leading position to exploit: • Few offshore projects completed to date, all in Europe and in saltwater (not freshwater) • Selected manufacturers (GE, Vestas, Siemens) with still-modest experience, a few others (e.g., Enercon, RePower) developing products Source: “The Great Lakes as a Regional Renewable Energy Source” by David Bradley, February 2004, www.greengold.org/wind

8. Lake Erie Wind Energy Center • 5-20 megawatt demonstration offshore wind project for energy production and monitoring & diagnostics (M&D) • R&D center for testing new wind technologies (blades, gearboxes, towers, etc.) designed for offshore application

9. Wind Project • 5-20 megawatts (2-10 turbines) 3-5 miles offshore downtown Cleveland: • Energy production • Monitoring and diagnostics (M&D) for continuing technical advancement • Objectives: • Proof of concept (regulatory precedents and improved economics) to stimulate development of Great Lakes wind • Visual icon for area • Reduced reliance on coal for local electric generation  reduced air emissions

10. Arch Grid Potential Sites

11. “The Crib” Water Intake • Fixed permanent platform about 3 miles offshore downtown Cleveland – only such resource in Great Lakes • Collecting wind and other meteorological data continuously since May 2005 at 50 meters • Ample power (PV and batteries) for further monitoring equipment

12. R&D Center • Testbed for commercializing freshwater offshore wind technologies: • Open-access facility for research clients • Ability to calibrate results with nearby offshore wind project facing same wind/weather/water regime • Designed for applied product engineering by industrial partners • Potential configuration(s): • Buildings/facilities for subcomponents (e.g., drive train center) • “Plug-and-play” test towers just onshore • Pre-wired/pre-permitted offshore plots • Other? • Objectives: • Economic development: attractor of research, entrepreneurial and manufacturing activity in wind technologies and products/services • Recognition of area as an important center of North American wind industry

13. Local R&D Strengths • Substantial research capabilities: • Cleveland offshore “Crib” with monitoring equipment • NASA-Glenn’s wind tunnels and icing research/testing equipment • Northwest Ohio Wind Coastal Initiative • U. of Toledo’s Lake Erie Center for environmental/ecological impacts (marine, avian) • Academic excellence in materials science research • Deepwater port infrastructure for installation/logistics management • Local supply chain and R&D expertise: • Bearings: Timken, Rotek • Blades and materials: MFG, Owens-Corning, Sherwin-Williams • Drive trains: Eaton • Control systems: Parker-Hannifin • Lubricants: Lubrizol • Casting, machining and fabrication: Many companies

14. “Buy-down” to make output of project competitive in local energy markets: Grants from Cuyahoga County, Cleveland Foundation, Port Authority, others Ohio and Federal participation Discounted equipment from suppliers (valuable R&D, high-visibility) Standard windfarm financing structures: Cuyahoga County: power purchase agreement Public sector: OAQDA financing, CREBs, muni bonds Private sector: project finance and equity (to monetize PTC) REC’s? Ohio Third-Frontier R&D-grant program (potentially deca-million dollars for establishment of dedicated offshore wind center) Ohio academic institutions (e.g., Case) as required “match” for Third Frontier funding Federal appropriations for R&D (DOE/NREL) Other commitments from Ohio (Gov. Strickland) and local parties Revenues from rent/lease of facility to users (discounted for long-term or block purchases) Potential Funding Sources For Wind Project For R&D Center

15. Feasibility Study • 6-9 month feasibility study to be commissioned: • Technical/engineering issues and turbine manufacturer participation for offshore demonstration project • Environmental/siting/permitting/aesthetic issues for offshore demonstration project • R&D needs across supply chain, manufacturer interests and equipment/facility requirements for research center • Economic/financial viability for offshore project and research center • $800K funding for feasibility study being obtained • Process underway to identify/select consultants for feasibility study: • RFQ issued, due April 23 • RFP to follow

16. RFQ Responses Due April 23 • RFP to be issued to consultants or teams that demonstrate experience across disciplines in their RFQ response: • Wind turbine manufacturers and windfarm development (especially offshore) • Offshore/marine engineering • Finance: public and private • Community engagement: aesthetics, public opinion, etc. • Avian and other environmental/siting issues • Qualification of interested parties to receive RFP will be determined by Subcommittee of CREDTF • Local participation encouraged, but RFP will not not be issued to inexperienced local consultants • Based on feedback from RFQ respondents, RFP may be structured into multiple RFPs with separate issue areas: • Technical/engineering issues and turbine manufacturer participation for offshore demonstration project • Environmental/siting/permitting/aesthetic issues for offshore demonstration project • R&D needs, manufacturer interests/demands and equipment/facility requirements for research center • Economic/financial viability for offshore project and research center

17. For More Information • Report available at www.cuyahogacounty.us • Contact: Paul Oyaski, Director, Cuyahoga County Department of Development, (216) 443-7535, cdpxo@cuyahogacounty.us