Report: Offshore Wind Could be Economic Boon if Market Conditions Improve

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy (DOE) and Department of the Interior (DOI) recently published the National Offshore Wind Strategy, which advocates for the accelerated development of U.S. offshore wind. The report seeks to enable 86 gigawatts (GW) of offshore wind energy in the U.S. by 2050, with a potential of 2,058 GW of offshore wind capacity accessible using today's technology.

The report identifies three strategic areas for the DOE and DOI to facilitate the responsible development of offshore wind energy: reducing technical costs, supporting effective stewardship and improving market conditions for investment in offshore wind technology.

Removing these hurdles could assist renewable-energy developers in the U.S., which has only one offshore wind project under construction.

Offshore windfarms could support economic development in the coastal states; increase annual lease payments to the U.S. treasury; increase local property tax payments; and support about 160,000 gross domestic jobs.

Currently, Industrial Info is tracking 22 offshore wind projects in North America valued at $36.47 billion, with 20 projects in the U.S. valued at $32.9 billion and two projects in Canada valued at $3.5 billion.

By the end of 2015, the DOI, through the Bureau of Ocean Energy Management (BOEM), had awarded 11 commercial leases for offshore wind development that could support more than 14 gigawatts (GW) of capacity.

The key trends motivating the offshore wind strategy are continuing cost reductions in offshore wind development and construction; emerging federal climate and renewable-energy policies; state renewable-energy climate objectives; and the completion of the first offshore wind project, the 30-MW Block Island project off of Rhode Island, which is scheduled to go commercial next month.

Operational offshore windfarms would support marginal electrical cost reductions; help to meet regional capacity factors, ensuring system reliability while reducing electrical transmission congestion; help to reduce large-scale onshore wind project impact on communities, land use and negative impact on wildlife; and reduce greenhouse gas emissions over the life of the project.

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