It’s a curious contradiction that, while wind is a renewable, non-fossil fuelled, energy source, some global wildlife organisations have put up massive resistance to its expansion. Refreshingly, the industry has finally received a vote of confidence from a major body – the National Wildlife Federation. We take a look at their recently-published recommendations about making the most of America’s offshore ambitions.
Over 1.5 million acres off the Atlantic coast already designated for wind energy development could generate over 16,000 megawatts of electricity (MW), enough to power over five million homes, according to a new report from the National Wildlife Federation with the support of over 40 co-sponsoring organisations and leaders from business, labour, state, and local governments.
Catching the Wind: State Actions Needed to Seize the Golden Opportunity of Atlantic Offshore Wind Power also contains a new analysis showing how the strong, consistent winds offshore can provide power to coastal states right when we need it most, bringing down energy costs and local pollution.
“American offshore wind power is finally within reach,” said Catherine Bowes, senior manager for climate and energy at the National Wildlife Federation. “With areas offshore that can power five million homes currently available for leasing, we’ve reached a critical moment for state leaders to seize this golden opportunity and create a clean energy future powered by American workers that can protect our wildlife and communities from the dangers of climate change.”
Catching the Wind highlights key progress made to date in America’s pursuit of offshore wind power, finding a strong correlation between proactive state efforts and tangible steps forward in advancing offshore wind power:
ï America’s first offshore wind projects are on track for construction in 2015.
Two leading projects, Cape Wind in Massachusetts and the Block Island Wind Farm in Rhode Island, are within sight of the finish line. Permits and/or leases and power contracts in hand and plans announced by the developers to begin offshore construction next year.
ï Offshore wind development could power over five million American homes. As a result of significant federal leadership, there is a massive, local clean power opportunity currently available to state energy planners with the capacity to power the equivalent of all households in New Jersey and South Carolina combined. What’s needed now is action by state leaders to drive offshore wind markets and spur critical project contracts forward.
ï Offshore wind power could save millions as part of a diverse energy portfolio. Diversifying the east coast’s energy mix is critical for protecting ratepayers from price spikes in the volatile fossil fuel markets. The report highlights a new 2014 study finding a $350 million per year reduction in energy costs from adding 1,200 MW of offshore wind energy to New England’s grid.
ï Offshore wind power will spark massive job creation in the United States. In Europe, 70 offshore wind projects across 10 countries are currently supporting over 58,000 jobs in both coastal and inland communities. Today, offshore wind power is a booming global industry with over $20 billion in annual investments projected for the next 10 years.
ï Offshore wind power can help states meet new carbon pollution limits. Coastal states have a massive untapped pollution-free energy source sitting right off their shores that can play a major role in meeting the carbon emission reduction targets required by the Environmental Protection Agency’s proposed Clean Power Plan released last month.
ï Offshore wind power is an environmentally responsible energy choice. As decades of experience in Europe indicates, strong environmental requirements can ensure that offshore wind power is sited, constructed, and operated in a manner that protects coastal and marine wildlife. This immense clean energy source offers an incredible opportunity to reduce pollution that threatens current and future generations of people and wildlife.
“With the Commonwealth’s support, New Bedford is now poised to play a central role in the nation’s burgeoning offshore wind energy industry.” Said Mayor Jon Mitchell of New Bedford, Massachusetts. “Construction is underway on a first-of-its-kind $100 million port facility specially designed to support the staging and assembly of offshore wind turbines.
Strong state commitments to offshore wind power are needed to maximise this tremendous opportunity to build a national industry and grow jobs not only for our city but across the region.”
“It’s time to launch an American offshore wind industry that can join the 58,000 people already working on offshore wind in Europe,” said Mayor Keith Summery of North Charleston, South Carolina. “The winds are right here ready to be harvested, the technology is already proven, and we have workers ready to do the job. Let’s get to work.”
In five recommendations, the report challenges Atlantic Coast leaders to move forward with the following key actions in order to build the long term market certainty needed to fully launch offshore wind power for America:
1) Set a bold goal for offshore wind power in state energy plans.
2) Take action to ensure a competitive market for offshore wind power by: passing and implementing policies to directly advance offshore wind power and reduce pollution across the electricity sector; pursuing regional market-building opportunities; and supporting key federal incentives.
3) Advance critical contracts for offshore wind projects, including facilitating and approving necessary power purchase contracts and rate recovery proposals and pursuing regional procurement opportunities.
4) Ensure an efficient, environmentally responsible leasing process by working closely with the federal government and key experts and stakeholders to ensure transparency and strong protections for coastal and marine wildlife as offshore wind development moves forward.
5) Invest in key research, initiatives, and infrastructure helpful for advancing offshore wind development including baseline environmental data, stakeholder engagement initiatives, opportunities to maximise local supply chain and job creation, and upgrades to transmission or port facilities.
“The Utility Workers Union of America strongly supports an all of the above National Energy Policy, including the development of the offshore wind sector,” said Ed Good, Legislative Director of the Utility Workers Union of America. “From the iron ore mined to manufacture the steel foundations to the actual delivery of offshore wind power, this is a tremendous opportunity for working families, communities, and business job growth.
UWUA currently has members with the necessary skill sets to safely and efficiently operate, maintain and provide energy delivery for this new and exciting form of generation and we look forward to playing a key role in the offshore wind market.”
“The winds off our coasts are poised to provide Atlantic Coast states with tremendous amounts of pollution-free energy that can meet our energy needs while reducing pollution that is altering our climate,” said Rob Sergeant, energy program director for Environment America. “To reap the environmental and economic benefits of offshore wind, we need a strong commitment from state leaders, in partnership with the federal government and key stakeholders.”
States leading the way
By every measure, Massachusetts and Rhode Island are clearly leading America’s pursuit of offshore wind power. Both states have shown considerable leadership to date in spurring offshore wind development – efforts which are poised to pay off as the nation’s first projects begin construction off their shores in the coming year.
While getting just one project into American waters will serve as an important national precedent, significant continued leadership by both of these states is critical to bring even a fraction of the over 8,000 MW of clean power online that NREL has estimated could technically be generated across the two Wind Energy Areas off southern New England – the largest tract of federal waters currently available for wind energy development along the Atlantic Coast.
Massachusetts has taken significant actions to advance offshore wind power, which collectively have positioned the Commonwealth as a leader on this issue with two Wind Energy Areas identified by BOEM off its shores (one leased to Deepwater Wind in 2013, the second on track for auction this year) and all key approvals secured for the 468 MW Cape Wind project. In addition to announcing a state goal for wind energy, establishing a renewable portfolio standard, and setting limits on greenhouse gas emissions, Massachusetts requires the state’s electric distribution companies to enter into long-term contracts for renewable energy – a key strategy for ensuring the financing of offshore projects with longer investment horizons.
Additionally, the Massachusetts Clean Energy Centre has made considerable investments in: port infrastructure for offshore wind deployment at the New Bedford Marine Commerce Terminal; research and development at the Wind Technology Testing Centre in Charlestown; and key stakeholder engagement and data collection efforts helpful for the leasing process. The state has approved all relevant contracts and permits for Cape Wind, which has also secured a lease from BOEM and a $150 million federal loan guarantee.
Massachusetts has blazed the trail in America’s pursuit of offshore wind power, and continued leadership is needed to capitalise on these initial investments and demonstrate a clear commitment to bringing the thousands of megawatts of available offshore wind power online.
Rhode Island has also set national precedent in the pursuit of offshore wind power, efforts that have spurred forward the 30 MW Block Island Wind Farm and successful leasing by BOEM of the federal Rhode Island-Massachusetts Wind Energy Area to Deepwater Wind. The centrepiece of Rhode Island’s efforts to ensure an efficient and environmentally sound offshore wind power planning process is its landmark Ocean Special Area Management Plan (SAMP) – a product of years of research, analysis, and stakeholder engagement to guide ocean planning decisions.
In 2011 the Ocean SAMP was updated to identify appropriate areas for wind energy development in both state and federal waters, which has significantly benefitted the process for permitting and leasing offshore wind power for Rhode Island. The state has also put key policies in place to ramp up clean energy, including a renewable portfolio standard, greenhouse gas emission limits, and state policy to facilitate long-term power contracts needed for renewable energy.
Rhode Island has approved the necessary power purchase contracts and permits for the Block Island Wind Farm. These initial successes have attracted national attention, and a continued commitment by Rhode Island’s leaders to power the Ocean State with offshore wind power is needed to fully realise the clean energy potential off its shores and inspire others to follow.
Maryland has demonstrated visionary leadership in advancing offshore wind power, including the successful passage of the 2013 Maryland Offshore Wind Energy Act which creates a carve-out in the state’s renewable portfolio standard requiring 200 MW of the state’s electricity to come from offshore wind power. The implementation of this policy is moving forward, providing critical certainty to the offshore wind industry for investment in this market and establishing an important policy model for valuing the benefits of offshore wind in state energy decisions.
BOEM is moving the federal leasing process forward in Maryland, with plans to auction the state’s Wind Energy Area in August 2014. There is significant commercial interest in this area – which NREL has estimated could support 800-1,200 MW of offshore wind development – as demonstrated by the 16 companies that have qualified to bid in the auction.
Maryland also has state requirements to reduce greenhouse gas emissions and has invested significant resources into its pursuit of offshore wind power, including creating an Offshore Wind Business Development Fund to maximise workforce development opportunities in the state. Thanks to the state’s proactive offshore wind efforts, Maryland is poised to achieve key mile stones in the development of offshore wind power leases and contracts in the coming year.
New York has created a significant market opportunity for offshore wind power through the Long Island Power Authority, which in 2013 announced a request for proposals for 280 MW of new renewable energy generation.
The state has also taken proactive steps to explore offshore wind power, including directly advancing the New York Power Authority-led collaborative project proposal (with Long Island Power Authority and ConEd) for a 350-700 MW offshore wind project in federal waters off of New York City. Due to additional commercial interest in the proposed project site, BOEM has launched a Wind Energy Area identification process which is on track for a competitive auction in 2015.
New York has also invested considerable resources into offshore wind research, including a 2013 NY Offshore Atlantic Ocean Planning Study by the New York Department of State and studies currently underway at the New York State Energy Research and Development Authority into the potential environmental and economic impacts of offshore wind power for New York. The state has a renewable energy portfolio standard, a carbon emissions reduction goal, and participates in the Regional Greenhouse Gas Initiative.
New Jersey passed a precedent-setting state policy in 2010 to incentivise at least 1,100 MW of offshore wind development through the state’s renewable portfolio standard, which if implemented could provide much-needed market certainty for a substantial amount of offshore wind power. BOEM has finalised a Wind Energy Area for New Jersey, which NREL has estimated could support as much as 3,400 MW of offshore wind development, and has announced plans to auction leases there in 2014.
The 30 MW Atlantic City Windfarm proposal has received state development permits and two rounds of funding from DOE, although it has not successfully secured approval from New Jersey’s Board of Public Utilities to move forward.
Delaware was an early offshore wind leader, approving the nation’s first power purchase agreement (PPA) for offshore wind power in 2008 with NRG Bluewater, who proceeded to secure a lease from BOEM for Delaware’s Wind Energy Area. The company currently holds this lease, although the project is on hold and the PPA has since expired.
Delaware has a renewable energy portfolio standard, with an increased incentive for offshore wind power purchased from projects sited off the Delaware coast by May 2017, and participates in the Regional Greenhouse Gas Initiative.
Offshore: a key opportunity to meet new Federal carbon pollution limits
On June 2nd, 2014, the U.S. EPA proposed the Clean Power Plan, America’s first-ever limits on carbon pollution from existing power plants, creating yet another incentive for coastal states to tap into the expansive, zero-carbon wind resource blowing off their shores.
The Clean Power Plan sets individual carbon emissions targets for each state that can be met through a range of strategies, including ramping up local renewable energy sources. States are responsible for developing compliance plans by June 2016 detailing how they will achieve their required emission reductions by 2030.
With over 16,000 MW of generation capacity currently available for offshore wind power leasing, and significant additional wind resources off America’s coastlines, offshore wind power offers an unmatched source of new carbon-free energy for states to meet their emission targets. Offshore wind power and the Clean Power Plan thus can work hand-in-glove to deliver significant benefits along the coast: states have a powerful tool to meet federal carbon targets and launch a transformative local energy source.
Climate change, a coastal hazard here and now
Atlantic coastal communities are on the frontlines of climate change. Superstorm Sandy brought brutal awareness to the Northeast and Mid-Atlantic of what coastal storms in a warming world can look like, with tragic and costly consequences for our communities and wildlife – including over $70 billion in damages. Two major reports issued this year outline the sobering projections for intensifying climate impacts along the coast:
“Due to sea-level rise projected throughout the 21st century and beyond, coastal systems and low-lying areas will increasingly experience adverse impacts such as submergence, coastal flooding, and coastal erosion.”
Intergovernmental Panel on Climate Change (2014)
“Sea level rise poses widespread and continuous threats to both natural and built environments and to the regional economy… Increasing temperatures and the associated increase in frequency, intensity, and duration of extreme heat events will affect public health, natural and built environments, energy, agriculture, and forestry.”
National Climate Assessment (2014)
Dramatic reductions in carbon emissions, along with robust investments in resiliency planning, are needed in order to protect our coastal communities and wildlife from this urgent threat. Offshore wind power offers a critical solution that can match the scale of this challenge.
With bold action from state leaders along its coast, America can build on the progress that’s been made and seize the golden opportunity of offshore wind power to usher in a clean energy future. National Wildlife Federation works with a broad coalition of national, state, and local organisations calling for responsibly developed offshore wind power. For more information about offshore wind power and ways to get involved, visit:
