Wind

'Major player' | Maryland's new 8.5GW goal returns early leader to top tier of US offshore wind

Expanded target expected to raise investment into state which has already generated millions for supply chain and workforce development off its earlier rounds

. Joe Biden.
. Joe Biden.Foto: GPA Photo Archive/White House / Adam Schultz https://creativecommons.org/publicdomain/mark/1.0/
  • Tim Ferry

Governor Wes Moore is expected to sign a bill passed by the Maryland legislature Monday that expands the offshore wind mandate to 8.5GW by 2031, launching the state to the top tier of US ambitions.

The Promoting Offshore Wind Energy Resources Act (POWER Act) more than quadruples the current 2GW of contracted offtake, and puts the state “on track to become the offshore wind capital of America,” governor Moore told an industry conference last month.

Moore, a Democrat who took office in January, said offshore wind was a critical driver for the state towards energy independence and would help it achieve 100% clean energy by 2035.

The new mandate is exceeded only by New York’s 9GW by 2035 and New Jersey’s 11GW by 2040. California's 25GW by 2045 goal is not a legal requirement.

The POWER Act is a “real game changer” for the state, said Jeff Grybowski, CEO of US Wind.

“It sets a path for the people of Maryland to reap the benefits of huge amounts of clean energy,” he said, while alerting the entire global offshore wind industry “that Maryland is back big time as a major player”.

“Companies looking to invest in offshore wind have to seriously consider Maryland,” he added.

The bill would take effect 1 June 2023, and requires the state announce its next round by 31 July, 2024. It includes stipulations to encourage diversity in hiring and subcontracting as well as provisions for organised labour and community benefits plans.

Early pacesetter

Maryland took an early lead with passage of the Maryland Offshore Wind Energy Act of 2013 that carved out an offshore wind power renewable portfolio standard of 2.5% of total electricity sold in the state.

In 2017, the legislature made good with one of the US’ earliest commercial procurement rounds, awarding 120MW to Orsted for its Skipjack project, and 270MW to Renexia-owned US Wind for its MarWin project.

The state then exceeded its 1.2GW offshore wind procurement target in 2021 by awarding more than 1.6GW split between US Wind’s 808MW Momentum Wind and Orsted’s 846MW Skipjack 2, bringing it to nearly 2GW total.
Still, that amount trailed the aspirations of its neighbours, including another early pacesetter Massachusetts, which raised its offshore wind target to 5.6GW contracted by 2027 and already has 3.4GW under contract.

Supply chain success

Maryland has a track record of getting good deals with developers. Its round 2 solicitation garnered $227m in supply chain and workforce development investment from US Wind alone, including a monopile factory.
Orsted is to add another $113m, including an inter-array cable making plant with Greek firm Hellenic Cables. Combined, the projects are expected to generate over $1bn in economic activity and 10,000 job-years, according to public documents submitted by the developers.
A study commissioned by environmental organisation Chesapeake Climate Action Now found just adding 6GW by 2031 could generate over $5bn in ratepayer savings and $24bn in environmental benefits while creating thousands of jobs.
The scaled-up targets are in line with the Climate Solutions Now Act of 2022, which mandates 60% greenhouse gas emissions reductions from 2006 levels by 2031 and net-zero emissions by 2045.

Central Atlantic in play

Maryland anticipates leases in the recently established Central Atlantic wind energy areas (WEAs) to satisfy the expanded target, the POWER Act bill stated.

Last fall, the Bureau of Ocean Energy Management (BOEM), the lead regulator of energy development in US waters, set up eight draft WEAs in the Central Atlantic 19 to 77 miles (31-124km) off the coasts of North Carolina, Virginia, Maryland, and Delaware.

They sprawl across 1.7 million acres (6,880km2) and hold over 20GW of potential capacity, per BOEM assessments, but will likely be winnowed down as stakeholder concerns are factored in. BOEM expects to hold auctions as early as this year.

The ramping of Maryland's mandate could raise demand in the Mid-Atlantic region, signalling to federal regulators “that the Central Atlantic WEAs must be robust,” said Moira Cyphers, eastern region state affairs director of the industry advocacy group American Clean Power Association.

Virginia has contracted 2.6GW and is looking for 3GW more on its 5.6GW by 2034 mandate, while Delaware is also looking at gigascale development.

The POWER act includes provisions to upgrade the state’s Eastern Shore electric grid and requires developers to be ready to share transmission assets across projects.

While offshore wind enjoys strong support from the legislature and governor, particularly in the coastal community of Ocean City, a popular tourist destination where officials are concerned the wind turbines will be an eyesore that will deter visitors.

(Copyright)
Published 11 April 2023, 22:10Updated 14 October 2023, 13:04
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