Installing 7-9GW of offshore wind in California by 2040 could save local ratepayers up to USD 2 billion, according to a new study by E3.
Modeling results across all scenarios in the study found that including 7-9GW of offshore wind capacity in California’s energy mix by 2040 would produce ratepayer savings of circa USD 1 to 2 billion on a net present value (NPV) basis, or an average of 25 cents per month in residential energy bill savings.
According to E3, 7-9GW capacity represents enough energy to power four million homes and meet approximately 10% of the state’s electricity needs.
This means that offshore wind is a least-cost resource option for which demand increases over time, the study writes.
The study also evaluates offshore wind relative to other resource options including out-of-state onshore wind and finds that it remains a valuable and the least-cost resource option even if out-of-state wind is developed in the future.
To remind, in October last year, BOEM issued a call to identify companies interested in commercial wind energy leases within three proposed areas off central and northern California, which together comprise approximately 1,073 square miles or 687,823 acres.
The call came shortly after California committed to achieving a 100% renewable energy target by the end of 2045.