Castle Wind LLC, a joint venture between Trident Winds and EnBW North America, released the findings of a new study that reveals offshore wind off the coast of California could save California ratepayers up to $2 billion on a net present value basis by 2040 through the installation of 7 to 9 GW of offshore wind.
The study, commissioned by Castle Wind to determine the economic value of offshore wind and the potential scale at which this resource may help achieve California’s long-term policy goals, was conducted by Energy + Environmental Economics (E3), the leading experts on California’s electricity market and the clean energy transition.
The graph shows the projected average renewable sources’ hourly generation profiles versus the 2030 average energy prices. The full study can be found here.
“Offshore wind offers California an abundant, domestic clean energy source, which to date has been largely untapped and can provide a least-cost path for California in its quest to achieve its clean energy and climate goals,” said Alla Weinstein, CEO of Castle Wind. “The next step in realizing the benefits of offshore wind is to develop and implement a Strategic Plan.”
Weinstein added: “It is now up to the elected officials, policy makers, other key stakeholders, and the State of California to make this happen. The offshore wind industry is ready, willing and able to invest its resources to bring offshore wind to California.”
Offshore wind power is growing rapidly around the world, driven by dramatic cost reductions and increased interest in carbon-free energy sources. The floating offshore wind that unlocks wind resources in deeper waters, such as those off the coast of California, is being commercialized in Europe with close to 200 MW of installed capacity coming online in 2019-2020.
“While California leads most states in renewable energy deployment, it will need several times more renewable energy capacity than is currently installed to meet its long-term policy commitments,” said Sanderson Hull, Senior Consultant, E3 and lead author of the study. “Offshore wind is a promising resource that has not yet been fully investigated as a component of California’s optimal pathways for meeting its clean energy goals.”
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