Key Areas to Watch in US Offshore Wind
In September, the Biden Administration announced several initiatives to expand the domestic offshore wind industry, putting it at the forefront of the sustainable energy landscape in the United States. The announcement – which sets a goal of 30 gigawatts (GW) of offshore wind by 2030 - came as several coastal states have set their own targets and have begun building the infrastructure necessary for the turbines to be installed. While these goals have been a clear signal to the industry that the United States is serious about advancing offshore wind, there are several technical and policy barriers that could inhibit rapid deployment. For example, because of deep water levels, some states require floating platforms, which are not as commercially mature a technology as fixed bottom turbines. Environmental stakeholders are also concerned with impacts to the sea floor and that turbine installation may be harmful to marine life.
Regional Plans
Several states have already set ambitious offshore energy goals. In July, Louisiana Governor John Bel Edwards signed House Bill 165, which allows offshore wind development in state controlled coastal waters. The law also requires wind facility proposals to include plans for decommissioning the turbines once they are no longer in use. The state ranks fourth for offshore wind potential because of its proximity to the Gulf of Mexico and has a set goal of 5,000 megawatts (MW) by 2035.
In South Carolina, House Bill 4831, directs the South Carolina Commerce Department to conduct an economic development study to evaluate the state’s readiness to effectively compete in attracting offshore wind energy supply chain industries. The law requires state agencies to assess the potential number of jobs, economic benefits, investments, and benefits to local tax bases.
Off the coast of New England and West Coast face a unique challenge: waters are too deep for traditional turbines, so floating ones are required. Federal officials estimate that two-thirds of the nation’s potential wind power are in these locations.
New Jersey is aiming to harness more wind energy from offshore turbines than any other Atlantic coast state with a target of 11 gigawatts by 2040. They had previously set a goal of 7.5 gigawatts. So far, the Garden State has approved three offshore wind projects, but all of them are still awaiting federal permits. It did, however, fund a $200 million dollar facility for assembly and deployment of offshore wind infrastructure.
Barriers
Compatibility Between Offshore Wind and Military
One barrier offshore wind has encountered is the concern from the U.S. military about the industry’s impact on training and operations. In California, military officials and offshore wind developers have had disputes on whether the Pacific Ocean from Big Sur to the Mexican border is off limits. The FY11 National Defense Authorization Act (NDAA) established the Department of Defense’s Clearinghouse, which manages the Mission Compatibility Evaluation (MCE) Process, a mission-specific analysis of potential impacts to military operations. During the review, if a military branch identifies a concern with an energy project, Clearinghouse acts as a liaison between entities to mediate between the two.
The Jones Act is another point of contention amongst those in the offshore wind industry. The law requires vessels to be U.S. built and operated and can act as a bottleneck for the industry. Developers have argued that it adds substantial costs to the installation of offshore wind turbines because of its prohibition against the use of foreign wind turbine installation vessels (WTIVs).
Transmission
Once regulatory hurdles are cleared and floating and fixed bottom turbines are installed, there’s still the challenge of transmission. Wind developers can run the cables necessary from the offshore turbine projects to land, but the electrical grid is often not able to effectively handle the variable flows of energy that are produced. One proposal to fix transmission issues is an ocean grid, a subsea power grid that can direct power to better interconnection points more quickly and more cheaply. However, this solution is not without its problems. The most desirable locations in New England, New York, and New Jersey have already been claimed by developers. Industry experts have indicated that in the next decade, there needs to be more focus on efficiency and economic optimization.
Outlook
Offshore wind is a nascent but rapidly growing industry. It has been estimated to have the capacity to power the country four times over, all within 50 miles of the shore. Technical challenges related to floating turbines still need to be resolved, as well as issues with grid interconnection. As the technology develops, it’s crucial that steps are taken to develop clear and efficient guidance for the industry so that it can harness the enormous potential on the nation’s coasts.