IN-DEPTH: Call for government-industry collaboration

Offshore wind energy is expected to make true progress in the US. Still, the risks are too high for the private sector to pursue offshore wind alone.

A survey of available data on Outer Continental Shelf (OCS) Resources and identification of data gaps in the US has underlined that offshore wind resources have a substantial potential to supply a large portion of the nation’s electricity demand.

In a recent significant development, the U.S. Interior Department has issued long-delayed guidelines for leasing offshore areas for renewable energy production. With this, the federal government has cleared the way for developers to plant wind farms in offshore waters on the Outer Continental Shelf.

Many states and/or utilities are seeking to support the development of offshore wind energy facilities over the next decade. 

Joint government-industry collaboration is necessary to achieve true progress; the risks are too high for the private sector to pursue offshore wind alone, says Bruce Bailey, President, AWS Truewind, LLC.

There are likely to be more discussion forums within states, among states, and between states and the federal government. 

“Out of these forums, its likely that joint initiatives with an eye on regional planning and investments in siting, technology and environmental studies would emerge. Government funding is likely to become available to facilitate strategic planning, policy development, R&D, and public outreach,” added Bailey, who is scheduled to speak at the Offshore Wind Energy in Coastal North America and The Great Lakes Conference to be held in Toronto (October 21-22) this year.
 
Local offshore wind option

No offshore commercial wind facilities operate in U.S. waters today, though there are a number of proposals under consideration and in different stages of Federal and/or State regulatory review.

There are a number of reasons for the lack of development, including past regulatory challenges, high and uncertain project costs, public opposition, technology constraints, and supply shortages, among others.

Bailey says waiting for a cross-country transmission solution that would import wind from the Midwest and Plains states is unacceptable, so considering the ‘local’ offshore wind option is a timely opportunity. 

“Meanwhile the ongoing advancement of offshore wind in Europe gives the clear message that ‘it can be done…what are we waiting for?’.  I think what has changed is that there are no more excuses for not considering offshore wind in the US,” he added.

And, with the new administration, the federal government is no longer anti-offshore wind.  “The feds need to lead in order for the US offshore market to get real traction,” Bailey said.

It is believed that sentiments regarding the development of wind energy appear to be real and therefore are being put into action. 

For instance, Senators from two Northeast states have urged U.S. Energy Secretary Steven Chu to commit $400 million from the economic stimulus package to support an advanced wind energy programme, especially for offshore wind projects.

Bailey said it is unclear what this will mean specifically for offshore, but it has raised the expectation that there will soon be financial support to get some R&D studies underway that states and utilities could be in the position to co-fund.  A set-aside for offshore wind would also send the needed signal that the federal government believes in offshore wind and is willing to make a commitment.

R&D 

More research and development into longer blades is expected to quicken the creation of large-scale offshore wind power facilities. For instance, recently, Chu announced the Department of Energy’s (DOE) intent to award Massachusetts $25 million in funding from the American Recovery and Reinvestment Act. The plan is to set up a facility that will attract companies to design, manufacture, and test their blades in the U. S.

R&D for offshore technology is vital, according to Bailey. 

The marine environment is harsh, and the largest turbine structures ever built are being proposed for offshore applications. 

“The energy industry needs to have confidence in offshore wind’s technical approaches and hardware before it can reach commercial scale with sustainability.   Therefore government support for R&D is necessary,” he said.

The costs and risks of offshore wind are undeniably much greater than land projects.  Planning and permitting time horizons are much longer and more unpredictable, and there is no certainty of there being incentives available at the time a project is commissioned.  The current incentives are really only applicable to land projects because they are set to expire before most proposed offshore wind projects could be built. 

“There need to be targeted incentives for offshore wind,” concluded Bailey.

Offshore Wind Energy in Coastal North America and The Great Lakes Conference

Wind Energy Update is scheduled to conduct Offshore Wind Energy in Coastal North America and The Great Lakes Conference in Toronto (October 21-22) this year.

For more information, click here: http://www.windenergyupdate.com/offshore/index.shtml

Or contact: Tom Evans by email tom@windenergyupdate.com