The Benefit and Urgency of Planned Offshore Transmission
Summary
The report identifies a critical need for coordinated transmission planning to integrate projected offshore wind (OSW) generation, which could reach 200-460 GW by 2050. It argues that current incremental, project-by-project interconnection processes are inefficient and costly. Proactive planning is projected to save U.S. consumers at least $20 billion, reduce shore crossings and onshore upgrades by 60-70%, and decrease marine cable installations by 50%. The document outlines significant barriers, including siloed planning, lack of HVDC technology standardization, and uncertain tax credits. It provides a phased roadmap of 12 recommendations, ranging from immediate staffing increases and the creation of multi-state decision-making bodies to long-term grid operation and wholesale market design modifications.
Key insights
- Proactive planning for long-term offshore wind transmission needs is projected to save U.S. consumers at least $20 billion and reduce environmental and community impacts by 50%.
- Current U.S. offshore wind goals and projected needs are substantial: 11 coastal states have goals exceeding 50 GW through 2035 and 77 GW by 2045, with total projected needs potentially reaching 150-197 GW by 2050.
- The current 'radial' approach to interconnection is inefficient; a UK study showed that proactive planning for 60 GW of OSW could reduce overall transmission costs by 19% ($7.4 billion), reduce ocean cable miles by 35%, and reduce beach crossings by 70%.
- A proactive planning effort in New Jersey for 6.4 GW of OSW generation resulted in cost savings of over $900 million, representing a 13% reduction in total transmission-related costs.
- Significant barriers to cost-effective transmission include inadequate generator interconnection processes, siloed regional planning, and a lack of standardized HVDC technology and operational standards in the U.S.
- The report recommends immediate actions (within one year), including increasing staffing at regulatory agencies, creating multi-state decision-making entities, and clarifying the applicability of the Investment Tax Credit (ITC) to interconnection facilities.
- Mid-to-long term recommendations include developing actionable cost-allocation frameworks, improving interregional transmission planning, and modifying wholesale market designs to optimize HVDC networks.
- Federal support for these initiatives is available through the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), including the Transmission Facilitation Program and the Grid Innovation Program.
Cite the original document
- APA
- Pfeifenberger, J. P., III, J. D., Bai, L., Plet, C., Peacock, C., & Nelson, R. (2023). The Benefit and Urgency of Planned Offshore Transmission. Clean Air Task Force. https://cdn.catf.us/wp-content/uploads/2023/01/24124447/osw-transmission-report.pdf
- Chicago
- Pfeifenberger, Johannes P., Joe DeLosa III, Linquan Bai, Cornelis Plet, Carson Peacock, and Ryan Nelson. The Benefit and Urgency of Planned Offshore Transmission. Clean Air Task Force, 2023. https://cdn.catf.us/wp-content/uploads/2023/01/24124447/osw-transmission-report.pdf.
- Wikipedia
- {{cite report |last1=Pfeifenberger |first1=Johannes P. |last2=III |first2=Joe DeLosa |last3=Bai |first3=Linquan |last4=Plet |first4=Cornelis |last5=Peacock |first5=Carson |last6=Nelson |first6=Ryan |title=The Benefit and Urgency of Planned Offshore Transmission |publisher=Clean Air Task Force |date=2023 |url=https://cdn.catf.us/wp-content/uploads/2023/01/24124447/osw-transmission-report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{pfeifenberger2023benefit, author = {Pfeifenberger, Johannes P. and III, Joe DeLosa and Bai, Linquan and Plet, Cornelis and Peacock, Carson and Nelson, Ryan}, title = {{The Benefit and Urgency of Planned Offshore Transmission}}, institution = {Clean Air Task Force}, year = {2023}, url = {https://cdn.catf.us/wp-content/uploads/2023/01/24124447/osw-transmission-report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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