Winds of Change: The Growing Power of Offshore Wind
By: Angela Calcagno and Alicia Gené Artessa
The U.S. energy market is in for some major changes over the next few decades. According to the New York Independent System Operator (NYISO), in New York state alone, electricity demand is expected to increase between 50 percent to 90 percent by 2040. With this projected surge in demand comes an increased need for new energy sources. In NYISO’s Reliability Needs Assessment, they emphasize that New York could face reliability issues as soon as 2034. This means potential blackouts during the coldest and warmest months when citizens need power the most. However, the report found that New York City would no longer be in a deficit by the summer of 2034 if we build more offshore wind. These projects will strengthen New York’s grid, foster energy independence, and is the only form of utility scale energy generation that is ready to power downstate New York in the near future.
In addition to strengthening the grid, the offshore wind industry has already showcased its’ ability to create jobs, collaborate with unions, and fuel local economies. According to American Clean Power (ACP), the offshore wind sector is projected to invest $65 billion in projects by 2030, creating 56,000 U.S. jobs, if all the planned projects move ahead. Offshore wind is already creating jobs in New York state. According to Orsted, Long Island’s Sunrise Wind project created 400 jobs alone and this is not unique to downstate. Notably, the Capital Region saw a boost of 130 new jobs for turbine component manufacturing. These are good-paying, union jobs, and their skills are transferable to other industries.
Finally, the economic benefits of offshore wind are significant. For example, offshore wind offers a significant opportunity for U.S. steel because each offshore wind tower uses approximately 1,000 tons of steel. In addition, ACP purports that the Inflation Reduction Act’s energy tax credits are projected to deliver four times of a return on investment and grow the U.S. economy by $1.9 trillion over the next decade. The industry’s economic benefits also attract widespread private sector investment as well – meaning that the growth that occurs is long term and sustainable. The American offshore wind power industry can flourish —if allowed— and will support American energy independence, domestic manufacturing, and innovation.
