April 12, 2021 — The Biden administration recently announced a plan to substantially expand the use of offshore wind power along the East Coast, aiming to tap a huge new source of clean energy that is likely to gain widespread acceptance in the United States.
The bold bet would result in the generation of 30 gigawatts (GW) of wind power by 2030, enough to power over 10 million homes and cut 78 million metrics tons of CO2 emissions. Currently, the United States has only one offshore wind farm off the coast of Rhode Island generating 30 megawatts (MW) — 1,000 MW are in one GW.
Offshore wind farming represents a significant opportunity for the creation of “green-collar” jobs, with maintenance and day-to-day operations requiring regular support. Yet, the more labor-intensive an energy-generating operation is, the more expensive the kilowatt of energy becomes. Offshore wind is currently the most expensive form of mainstream power generation available – more than 3x the cost of a combined cycle natural gas plant on a $/MWh basis – when all factors are considered (see chart below). The so called “levelized cost of electricity” or LCOE for offshore wind is climate and labor-market dependent, but the Energy Information Agency sees the regional weighted average LCOE of new offshore wind projects in 2040 dropping t0 65% of 2020 costs in ideal cases.