Findings from this study confirm additional lease areas are needed to meet demand, reduce energy costs, increase competition and ultimately generate thousands of jobs and billions in investment. Additionally, the findings offer guidance to decision-makers about new offshore wind leases, which can be a short-term solution to jump-start recovery from a coronavirus pandemic-driven economic slowdown.

“The Wood Mackenzie study provides a new impetus for the designation and leasing of new wind energy areas in federal waters off the U.S. coastline. States along the eastern and western seashores have a massive domestic clean energy resource and many states have set ambitious offshore wind goals to reap the economic and environmental benefits that offshore wind offers but cannot achieve those goals with existing leases,” said Joe Martens, director of New York Offshore Wind Alliance, a project of ACE NY

Commissioned by four energy industry groups, American Wind Energy Association (AWEA), National Ocean Industries Association (NOIA), New York Offshore Wind Alliance (NYOWA) and the Special Initiative on Offshore Wind (SIOW) at the University of Delaware, the study dives into the economic impact of offshore wind activities as a result of potential Bureau of Ocean Energy Management (BOEM) lease auctions in 2020, 2021 and 2022.

Based on existing activities and policy assumptions for future offshore wind development, 2 million acres of federal waters in the New York Bight, which includes parts of New Jersey, as well as California and the Carolinas, could be auctioned for commercial leases in 2020 and 2021. Other auctions for lease areas in the Gulf of Maine and areas in California could happen in 2022 and would generate an additional $500 million in U.S. Treasury revenue, according to the report.

“American offshore wind is a generational opportunity. Infrastructure spending, energy security and shovel-ready jobs with good wages will be unleashed,” said Erik Milito, NOIA president. “Importantly, offshore wind development will support jobs throughout the entire U.S. The same shipbuilders, heavy lift vessel operators, steel fabricators and countless other companies who built the Gulf of Mexico oil and gas sector stand ready to lend their expertise to the American offshore wind industry.”

The report estimates that total investment in the U.S. offshore wind industry will be $17 billion by 2025, $108 billion by 2030 and $166 billion by 2035; from 2022 to 2035, capital investment of $42 billion will go to turbine manufacturers and the supply chain, $107 billion will go to the construction industry, and $8 billion will go to the transportation industry and ports. Annual capital investment for O&M activities will increase to $2.4 billion in 2035.

“Wood Mackenzie’s new analysis reinforces and proves what offshore wind advocates already know: that offshore wind development can be a major part of the solution to our country’s most pressing energy needs and our country’s most immediate economic woes. Unleashing the potential of offshore wind power through immediate and consistent auctioning of new lease areas can help the United States rebound from the greatest economic downturn in our nation’s history,” said Nancy Sopko, executive director, SIOW.

The offshore wind industry coujld contribute additional economic benefits to the U.S. economy, including supporting tens of thousands of jobs. If the assumed BOEM auctions in 2021 and 2022 happen, total full time equivalent job creation from the resulting offshore wind activities, including development, construction and operation will be approximately 80,000 jobs annually from 2025 to 2035.

“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,” said Laura Morton, AWEA senior director of Offshore Wind. “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.”

News item from AWEA

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The newly released “Wind Powers America Annual Report 2019” reveals that U.S. wind energy supports a record of 120,000 American jobs, 530 domestic factories and $1.6 billion a year in revenue for states and communities that host wind farms.

“U.S. wind power has grown significantly over the past decade, as consumers across the country increasingly turn to wind to provide affordable, reliable and clean electricity for their communities,” said Tom Kiernan, CEO of American Wind Energy Association (AWEA). “Years of hard work culminated with wind power becoming America’s largest renewable energy provider in 2019, with a 50-state footprint of job creation and economic development. Wind’s near-record project pipeline indicates this growth will continue for years to come. While we are now working to mitigate the significant disruptions from COVID-19, we know that we will meet these challenges with strong industry momentum.”

Wind power capacity and generation end the decade at new heights

The U.S. wind industry experienced its third strongest year on record in 2019, as project developers invested nearly $14 billion in new wind projects totaling 9,137 MW. Total operating wind power capacity increased 9.6% to 105,591 MW, with nearly 60,000 wind turbines now operating across 41 states and two territories. Wind power represented 30 percent of utility-scale power plant installations over the past ten years.

Texas and Iowa led the country in wind power additions, with both states installing individual record amounts of wind power for a single year. South Dakota had the largest percentage growth in 2019, increasing its installed wind capacity by over 50% after installing 506 MW. In total, wind project developers delivered 55 projects in 19 states during 2019.

Wind now generates enough electricity to meet the demands of California (the world’s fourth-largest economy) and New Jersey combined. At the state level, wind provided more than 20% of the electricity generated in six states: Iowa, Kansas, Maine, North Dakota, Oklahoma and South Dakota. In Iowa and Kansas, wind power is now the single largest source of electricity generation. Both states generated over 40% of their electricity from wind power last year.

In the Southwest Power Pool, the grid across most of the Plains, wind met nearly 28% of total electricity demand in 2019 and at points represented nearly 70% of power generation.

Finishing the decade with record growth, the wind industry is poised for continued expansion in the coming years. Another 44 GW of capacity is either under construction or in advanced stages of development. Those projects represent $62 billion in investment in the U.S. economy and enough additional power for 15 million American homes, once they’re built.

Alongside the growth in the land-based wind sector, many coastal states are looking to harness offshore. States up and down the East Coast are aiming to develop over 25 GW of offshore capacity by 2035, with 16 GW of new targets announced in 2019 alone. To help meet these targets, states and utilities selected 4,404 MW of offshore wind capacity through state-issued solicitations in 2019.

Wind energy powering rural economies

Wind turbine technicians continue to represent the second-fastest-growing career in the country, currently with approximately 120,000 people employed, according to the U.S. Bureau of Labor Statistics. Meanwhile, veterans find wind jobs at a rate 61% higher than the average U.S. industry. Texas continues to lead the way for wind power jobs, with over 25,000 wind workers employed in the Lone Star State. Iowa, Illinois, Colorado and Indiana round out the top five states for wind energy employment.

The wind indsutry is creating new American manufacturing jobs and as of 2019, over 530 U.S. factories across 43 states build wind turbine components, employing over 26,000 Americans. Many of these jobs are in rural or small towns across the country.

Almost all wind U.S. wind projects are located in rural regions. In 2019 alone, wind projects paid over $900 million in state and local taxes. These tax payments help communities improve their school systems, fix roads and fund emergency services. Additionally, over $700 million in annual land-lease payments are provided to landowners. In total, wind projects are delivering $1.6 billion annually to state and local communities.

“Communities across the nation, especially rural communities, are experiencing first-hand the economic benefits that wind power delivers,” Kiernan said. “The wind industry’s rapid and continued growth has meant more family-sustaining jobs, more local manufacturing, more opportunities for veterans and more support for farming communities, all while providing reliable, low-cost, and zero-carbon electricity for millions of Americans.”

Strong demand from Utilities and Corporate Buyers Continues

Demand for wind energy set a record in 2019, as utilities and corporate buyers announced over 8,700 MW of new wind power purchase agreements (PPAs). Utilities signed up for over 5,000 MW of wind energy, while corporate buyers announced 3,460 MW of PPAs. Wind’s costs have fallen by 70% over the past decade and wind is an affordable source of new electricity throughout much of the country. Private industry customers accounted for 40% of the PPAs signed in 2019.

“Iconic U.S. companies are joining utilities in turning to wind energy to help drive their business goals and corporate social responsibility commitments forward,” Kiernan said. “Wind power provides long-term price stability, allowing companies to invest in their future, without worrying about the price they might have to pay for electricity. Many companies are also drawn to wind’s zero-carbon and zero-water attributes, which help them achieve their sustainability goals. And wind remains good for their bottom lines, since it’s the lowest-cost source of electricity in many parts of the country.”

Industry working hard to address challenge of COVID-19

The COVID-19 pandemic is causing unprecedented challenges to the U.S. healthcare system, disruptions to daily life across the country and deep uncertainty across the economy, including the U.S. wind industry.

According to AWEA analysis, COVID-19 is putting an estimated 25 GW of wind projects at risk, representing $35 billion in investment. This includes the potential loss of over $8 billion to rural communities in the form of state and local tax payments and land-lease payments to private landowners, as well as the loss of over 35,000 jobs, including wind turbine technicians, construction workers and factory workers.

Like the benefits of wind development, these losses will be felt most strongly in rural communities. The industry will continue working with Congress and other renewable energy leaders to address the challenges of COVID-19 to ensure projects have the flexibility to continue development.

“Affordable, reliable energy is not a luxury — it’s a necessity,” Kiernan said. “It provides the foundation and powers the infrastructure of our great country, ensuring its operations and functionality can continue without interruption on the road to recovery, and the wind energy workforce is working hard to keep the lights on during this trying time.”

News item from AWEA

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Voters across the board appreciate the benefits wind energy delivers, according to the survey, with Republicans overwhelmingly viewing wind as a clean, renewable, affordable power source that also reduces carbon emissions (88%) and keeps utility costs stable, while providing critical power to America’s densely populated areas (80%).

“Voters are strongly in favor of offshore wind energy, regardless of ideology or party affiliation,” said AWEA CEO Tom Kiernan. “Republicans and Democrats alike see offshore wind as playing a key role in the nation’s future energy portfolio, providing tremendous economic and environmental benefits and helping stabilize the cost of electricity.”

According to the poll, both Democrats and Republicans prefer wind to the increased use of coal, nuclear, or even natural gas. Voters currently believe both oil and natural gas and wind energy play an important role in the current economy (93% and 86%), with more than half of Republican voters saying the United States should put more emphasis on producing domestic energy from both wind and solar (58% and 66%) than other forms of energy.

A majority of voters think the wind energy industry will be more important to the country’s economy than oil and natural gas 10 years from now (57% to 43%). And 85% of voters agree wind energy is a clean, renewable and affordable power source of the future, including 80% of Republicans.

Republicans find facts about offshore wind energy convincing. The offshore wind industry possesses a power potential of more than 2,000 GW, nearly double the nation’s current electricity use (76% convincing); the industry will support 83,000, well-paying jobs by 2030 (76% convincing); and the industry will drive $25 billion dollars per year in new economic activity by 2030 (71% convincing); and 76% of GOP voters believe that offshore wind energy is America’s new ocean energy resource.

Support for offshore wind also crosses party lines and is largely favored by voters across the country, not just in coastal states, with those in the South (90%) and the Midwest (89%) viewing it most favorably. Unlike other pressing economic and environmental issues, there are no generational divisions over how people feel about offshore wind. Voters across reporting generations all consistently express 83% to 88% favorability in their support for offshore wind.

Notably, those who identify politically as either very conservative (81%) or somewhat conservative (85%) align closely with those who lean moderate (84%) and liberal (92%) in their overall approval rating of offshore wind.

GOP voters are more likely to support offshore wind energy when hearing the industry creates well-paying, stable jobs and improved economic revitalization for port communities/coastal states (86%). In a close three-way tie at 85%, they believe offshore wind:

• Will protect the environment, since it doesn’t pollute the air and water, and greenhouse gases are not emitted when its used
• Provides long-term, low-cost, stabilized utility rates for consumers
• Is projected to be a $70 billion opportunity that could create up to 80,000 well-paying jobs by 2030

Support for wind energy is strong among voters who don’t identify as Republican or Democrat as well. Nearly 70% of independent voters marked that the United States needs to put more emphasis on wind energy and 82% of independents favor offshore wind energy specifically.

Support for offshore wind jumps five points (from 86% to 91% total favoring) and nine points in intensity (from 34% to 43% strongly favoring) after voters learn more about the industry.

“The strong bipartisan support for offshore wind among voters is very encouraging,” Kiernan said. “Consumers clearly see that offshore wind provides significant environmental benefits and will serve as a real economic game-changer in the coming years, helping the nation recover and adding family-supporting jobs where they’re needed most at the local level following the coronavirus pandemic.”

News item from AWEA

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