Offshore Wind’s Value Exceeds Its Construction Costs in New York and New England

Offshore wind may seem like a pricey option, but it’s actually an extremely valuable investment.  A new analysis from the Lawrence Berkeley National Laboratory (LBNL) shows that the market value of electricity generated by offshore wind will soon exceed its cost in New York and several New England states.

The economic impact of offshore wind is even more significant after adding in the tens of thousands in new jobs and billions in new investment that come from steel in the water.  Massachusetts, Maryland, and New York are already accelerating offshore wind’s expansion, and states like New Jersey aren’t far behind in a race to the top.

Even the Trump Administration is touting offshore wind’s upside.  “As we look to the future, wind energy – particularly offshore wind – will play a greater role in sustaining American energy dominance,” wrote Interior Secretary Ryan Zinke.  “Offshore wind uniquely leverages the natural resource off of our East Coast, bringing jobs and meeting the region’s demand for renewable energy.”

Offshore Wind’s Attractive East Coast Economic Attributes
On a levelized cost of energy basis, offshore wind still seems more expensive than more ubiquitous onshore wind and solar, but when and where power is generated matters a great deal for whether generators provide value to buyers.  LBNL’s new analysis shows that high capacity factors of offshore wind, the coincidence of wind with customer demand, and potential locations adjacent to congested coastal load centers like New York City and Boston already make offshore wind an economic option.

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