Offshore Wind: Major Milestones & Achievements
State and federal processes for developing offshore wind energy projects in the U.S. are well underway. 2016 saw the nation's first offshore wind farm come online, and at the end of 2017 there were 14 projects in various stages of development across the East and Great Lakes coasts.
In early 2011, the U.S. Department of the Interior (DOI) and the U.S. Department of Energy (DOE) unveiled a coordinated strategic plan, A National Offshore Wind Strategy: Creating an Offshore Wind Industry in the United States, which seeks to achieve the deployment of 10 gigawatts (GW) of offshore wind capacity by 2020 and 54 GW by 2030.
A number of milestones have been achieved since then, including commissioning of the nation's first offshore wind farm, the Block Island Wind Farm off of Rhode Island. States like Massachusetts, New Jersey, and New York have made commitments to develop a combined 7,500 MW of offshore wind by 2030, and more activity is on the horizon.
- In January, Governor Cuomo called for solicitations of at least 800 MW of offshore wind in two RFPs to be held in 2018 and 2019. The state will also invest $15 million to train workers for offshore wind jobs and develop port infrastructure
- Additionally, New York released its Offshore Master Plan in January, which identifies areas for potential development and options for procuring offshore wind, among other things.
- Later in January, New Jersey Governor Murphy signed an Executive Order outlining a goal to develop 3,500 MW of offshore wind by 2030, and directed his administration to develop an offshore wind plan. The Governor’s announcement builds on the state’s existing 1,100 MW offshore carve-out in its renewable portfolio standard (RPS).
- Also in January, the Connecticut Department of Energy and Environmental Protection issued a generation-based RFP for renewable energy, including up to 200-220 MW of offshore wind.
- In February 2018, Rhode Island announced plans for a 400 MW all-renewables RFP open to offshore wind, to be issued in the summer of 2018.
- In May, New Jersey passed legislation committing the state to develop 3,500 MW of offshore wind by 2030.
- On the same day, Massachusetts utilities selected the 800 MW Vineyard Wind Offshore Wind Project as the winner of its first offshore RFP, and Rhode Island selected Deepwater Wind to build its 400 MW Revolution Wind offshore project.
- In January, New York Governor Cuomo announced a commitment to develop up to 2.4 gigawatts of offshore wind by 2030, the largest such commitment in the nation.
- Later that month the Long Island Power Authority (LIPA) approved a 20-year power purchase agreement with Deepwater Wind for the 90 MW South Fork Wind Farm, which will be New York's first offshore wind farm.
- DOI and the BOEM held an auction for the Kitty Hawk Wind Energy Area off the coast of North Carolina in March. The 122,405 acre lease area was awarded to Avangrid Renewables, with a winning bid of $9.1 million.
- In May, the Maryland Public Service Commission completed the first large-scale solicitation of offshore wind in the U.S., awarding offshore offshore renewable energy credits (ORECs) to two offshore wind projects totaling 368 MW off the coast of Maryland: U.S. Wind’s 248 MW Maryland Offshore Wind Project and Deepwater Wind’s 120 MW Skipjack Wind Farm. Both projects will receive ORECs from the Maryland PSC at a levelized price of $131.93/MWh for a term of 20 years.
- In June, Massachusetts electric distribution companies and the Massachusetts Department of Energy Resources (DOER) issued a joint RFP for 400 to 800 MW of offshore wind, following the Massachusetts law passed in 2016 calling for utilities to procure 1,600 MW of offshore wind by 2027. Bids are due in December, and the winning bid will be announced in summer 2018.
- The following month, Dominion Energy Virginia announced a partnership with DONG Energy to build a two turbine (6-MW each) test project, the Coastal Virginia Offshore Wind project, off Virginia Beach.
- In October, MHI Vestas announced a $35 million investment and agreement with Clemson University in South Carolina to test its most powerful V164-9.5 MW offshore wind turbine.
- Delaware Governor John Carney signed an executive order establishing an Offshore Wind Working Group to study potential environmental and economic development benefits of offshore wind development to serve Delaware.
- In June, BOEM announced a Call for Information and Nominations seeking developer interest in acquiring commercial wind energy leases in two areas offshore Hawaii, totaling 485,000 acres (758 square miles).
- In August, Massachusetts passed an energy bill requiring utilities in the state to procure 1,600 megawatts of offshore wind power by 2027. The first solicitation will occur by June 30, 2017 for at least 400 MW of offshore wind projects.
- BOEM announced a Proposed Sale Notice and Request for Interest for an offshore wind lease area off the coast of North Carolina, named the Kitty Hawk Wind Energy Area.
- In September, DOI and DOE released a new National Offshore Wind Strategy, which could help enable 86 gigawatts of offshore wind in the U.S. by 2050. A week later, New York released the New York State Offshore Wind Blueprint, a plan to advance the development of offshore wind along New York’s coastline. New York’s Offshore Wind Master Plan will be released by the end of 2017.
- In November, the Maryland Public Service Commission received two applications for wind projects off the coast of Maryland by U.S. Wind Inc. and Skipjack Offshore Energy, LLC, a subsidiary of Deepwater Wind.
- On December 12, 2016, Deepwater Wind’s 30 MW Block Island Wind Farm, the first offshore wind farm in the nation, came online. Deepwater Wind completed construction of the five turbines in August of 2016.
- Lastly, DOI and the BOEM held an auction for an offshore wind lease area off the coast of New York in mid-December. After 33 rounds of bidding, the 79,350 acre lease area was awarded to Statoil Wind US LLC, with a winning bid of $42.5 million.
- In January, DOI and BOEM held an auction for the offshore wind areas off the coast of Massachusetts. Two of the four lease areas were leased to Offshore MW, LLC and RES Americas Developments, Inc. Dong Energy later acquired RES Americas' rights to the lease area.
- BOEM executed its first wind energy research lease with Virginia's Department of Mines, Minerals and Energy for a 12 MW offshore wind test facility off the coast of Virginia.
- Construction began on Deepwater Wind's Block Island Wind Farm off the coast of Rhode Island in July.
- In November, DOI and BOEM held an auction for two wind lease areas off the coast of New Jersey. U.S. Wind Inc. and RES Americas were the winners.
- DOI and BOEM also announced a Call seeking developer interest in commercial wind leases in four areas offshore South Carolina, totaling more than 1,100 square miles.
- In May, DOI and BOEM announced a Call for Information and Nominations (Call) seeking developer interest in acquiring commercial wind leases in an area offshore of New York.
- In June, DOI, BOEM and Massachusetts Governor Deval Patrick announced plans to auction 742,000 acres offshore of Massachusetts for wind energy development - the largest wind energy area in federal waters.
- In July, DOI and BOEM announced plans to auction 344,000 acres offshore of New Jersey for wind energy development.
- In August, DOI and BOEM announced three Wind Energy Areas offshore of North Carolina, which total approximately 307,590 acres, for potential wind energy development.
- Finally, DOI and BOEM held an auction in August for Maryland’s two offshore wind lease areas. U.S. Wind Inc. was the winner of both lease areas.
- In June of 2013, the first offshore wind turbine in the U.S.—a 65-foot, one-eighth-scale model that utilizes an innovative concrete semi-submersible foundation—was deployed by the University of Maine’s DeepCwind Consortium.
- Also in 2013, DOI and the Bureau of Ocean Energy Management (BOEM) held the first two competitive lease auctions, one for two sites in an area off the coast of Rhode Island and Massachusetts and the other for an area off the coast of Virginia.
- Developer Deepwater Wind was selected as the winner for the Rhode Island and Massachusetts sites. Dominion Virginia Power won the auction for the lease area off the coast of Virginia.
- In addition, the state of Maryland enacted legislation in 2013 that created an offshore renewable energy certificate (OREC) program to facilitate the development of 200 MW of offshore wind power.