Offshore wind transmission planning and cost allocation on the US east coast will require coordinated action at the state, regional and federal level, according to a new report by the Business Network for Offshore Wind.
The ‘Transmission White Paper’ said that states can push, and FERC can require, regional entities, such as regional transmission organisations, to develop proactive grid plans and workable cost allocation methodologies.
It noted that currently, there is no single entity responsible for planning offshore transmission across the east coast, convening stakeholders, and working with the industry and states on grid options.
The report suggested that the US Department of Energy (DoE), along with national energy laboratories, could fill this gap and provide technical research and support for stakeholder engagement.
Congress or the President could direct DoE to provide this leadership, while states could also lobby for DoE to take on this role.
The report makes six recommendations that stakeholders should consider when developing a model for offshore wind transmission on the east coast.
There should be better synchronisation of inter-regional planning, quantification of all benefits and plans made for a long time horizon, the report said.
It also called for proactive planning, weighing up all benefits and incorporating public policy requirements.
The white paper aims to inform grid operators and US decision-makers in local, state, and federal regulatory bodies regarding policy options to facilitate the integration of a minimum of 30GW of offshore wind capacity in the grid by 2035.
It said that the inability to resolve gaps between state offshore wind targets, federal permitting timelines and the grid operator interconnection queue has the potential to adversely affect the long-term growth of the US offshore wind development.
Business Network president and chief executive Liz Burdock said: “Offshore wind power could dramatically reshape the electricity supplies of many coastal US states with policy support.
“For US offshore wind investment and development, investors and developers must see a sustainable pipeline of offshore wind projects.
“This White Paper answers the question of how the US can avoid limiting future offshore wind growth due to at-capacity onshore electric grids.”
Business Network policy and outreach director Brandon Burke said: “The clock is ticking for the US as the global offshore wind industry continues to innovate around us.
“The US must decide now whether it wants to manufacture offshore wind project components on American shores or continue the costly effort of bringing in parts manufactured abroad.
“The white paper is a key step forward towards resolving the transmission planning and coordination issues that will determine where US offshore wind project components are manufactured.”
The white paper can be found here.