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Deepwater Wind - Energy Highway

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Project Benefits<br />

<strong>Deepwater</strong>’s NY Bight project would produce a number of reliability benefits similar to<br />

those created by DWEC-NELI resulting from new capacity in Zone J, the creation of a<br />

new interconnection to a neighboring energy market, and increased fuel diversity. To<br />

confirm the specific market price suppression and emission reduction benefits of this NY<br />

Bight project, <strong>Deepwater</strong> commissioned a study by CRA of the impacts on both the New<br />

York and New Jersey electric systems. CRA estimated the price suppression benefits to<br />

be substantial and of the same order of magnitude as those created by the DWEC project.<br />

Additionally, this NY Bight project would result in approximately 10 million tons of CO2<br />

emissions reduction and 6,000 tons of NOx emissions reductions in New York State.<br />

CRA also modeled the impacts of the Project on the PJM system and found that as a<br />

result of the injection of peak period power from the <strong>Wind</strong> Plant New Jersey would<br />

benefit from an annual net reduction in average wholesale prices as well as a net<br />

reduction in emissions. The net reduction in emissions is due in part to the injections<br />

from the <strong>Wind</strong> Plant but also to the relatively more efficient and lower emitting natural<br />

gas plants that would be dispatched when PJM system power was being exported to Zone<br />

J.<br />

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