Wood Mackenzie study shows offshore wind could bring 28 GW, $1.7B to US Treasury by 2022
Offshore wind energy has the chance to boom, according to research group Wood Mackenzie, which, in a study released this week, determined the U.S. Treasury stands to gain $1.7 billion by 2022 and the nation to achieve another 28 GW if federal lease auctions go forward.
The report — commissioned by the American Wind Energy Association (AWEA), National Ocean Industries Association (NOIA), New York Offshore Wind Alliance (NYOWA) and the Special Initiative on Offshore Wind (SIOW) — also found as much as $166 billion could be gained by 2035, along with 80,000 jobs annually. All of this would be dependent on lease auctions proceeding each year through 2022, however.
“Policymakers at the Federal and State levels right now hold the key to unlocking the full potential of the offshore wind industry that will benefit all Americans,” Laura Morton, AWEA senior director of Offshore Wind, said. “We’re on the cusp of a rare opportunity, but the U.S. remains far behind other countries in harnessing offshore wind technology. It’s time for us to unleash this abundant domestic energy source that will deliver tens of thousands of new jobs, revitalize coastal ports, and expand manufacturing opportunities, to reap major economic and environmental benefits.”
At the heart of the discussion are 2 million acres of federal waters in the New York Bright, along with areas around California and the Carolinas. These alone would represent $1.2 billion of the potential revenue, but by auctioning areas in the Gulf of Maine and additional regions around California in 2022, another $500 million could be gained. The study estimates that such lease areas would ultimately be needed to address rising demand and cut energy costs while boosting competition and job growth.
Bolstering the scene are heavy investments from the U.S. offshore wind industry itself, which is expected to reach $17 billion by 2025, before accelerating to the $166 billion mark within a decade later. Large amounts of funding will go to turbine manufacturers, along with the transportation and construction industries.
“This study documents the enormous near- and mid-term economic benefits that offshore wind energy can provide: more than $1 billion in revenue to the federal treasury, tens of thousands of jobs and billions in investments in ports, vessels, and other infrastructure, at a time when the nation needs it the most,” Joe Martens, director of the New York Offshore Wind Alliance, said. “It’s time for the federal government to act with the same urgency as the states.”
