The current US administration recently announced the goal of producing 30 gigawatts (30,000 megawatts) of offshore wind energy by 2030 incentivized by a tax credit for offshore wind energy farms that begin construction by 2025. As a result, wind developers are requesting and bidding for government leases of offshore space to develop such wind energy farms.  

Auctions for leases for offshore development in New York and the Carolinas in 2022 alone brought in record winning bids (billions of dollars collected by the Federal government), indicating that the economics are right for large wind farms to help electrify large urban areas by the coasts which have limited space for solar or other renewable or other power (traditional power plants). Given the goal of moving the US away from fossil fuels and toward electrification, which potentially can be “cleaner” (emit less greenhouse gas emissions), it is important to provide more and clean electricity especially to big cities which tend to be near coasts. Offshore wind certainly checks off these boxes. Electricity does not come from oil or natural gas, which must be found, purchased and transported, but from a free source, the wind, making it cheaper than traditional power plants.

Offshore wind development is recognized as a good source to develop clean power with the development of reliable floating wind turbines, the large amount of available space to place such turbines, and the large amount of consistent wind found in offshore areas. Placement of turbines may be an issue as winds increase the further offshore one goes being tempered by the need to carry electricity generated further to the shore. 

In addition, a major increase in actual offshore wind energy development will have the additional economic benefit of a boon in construction, including generating a large number of jobs, which is good for the tax base of the coastal areas. Some may have the vision when thinking about offshore wind farm development of offshore drilling for crude oil. But, clearly, offshore wind farms have much lower environmental risks and impacts than offshore drilling.  

CCES has the experts – no, not to design and build offshore wind farms – but to advise a firm on the viability of switching to renewable power for your business or building. We can advise you if it is wise and beneficial or not and how to prepare for renewable power. Contact us today at 914-584-6720 or at karell@CCESworld.com.