OFFSHORE WIND: A BOON TO CLIMATE GOALS AND ECONOMIC GROWTH

The document argues that offshore wind is a critical resource for achieving zero-emissions targets due to plummeting costs and high capacity factors. It highlights the transition from fixed subsidies to competitive procurement in Europe as a model for cost reduction and notes that floating turbines could unlock 80 percent of global offshore potential. For the U.S., it recommends establishing procurement targets, creating an interstate transmission backbone, and converting tax credits to direct payments to accelerate deployment.

• Offshore wind costs are declining significantly; in the U.S., power purchase agreement prices are projected to drop from $224/MWh for projects starting in 2020 to $58/MWh for those operational in 2025. Long-term projections from the National Renewable Energy Laboratory suggest costs could reach as low as $20-30/MWh by 2050.
• The transition from fixed feed-in tariffs to competitive reverse auctions in Europe has been a primary driver of cost reductions. For instance, Germany's shift to an auction-based system in 2016 resulted in contracts for differences between $0-44€/MWh.
• Offshore wind provides superior grid value compared to other renewables due to higher capacity factors and complementarity with solar. In the eastern U.S., expected capacity factors are 40-45 percent, significantly higher than the global average for solar PV (25 percent) and onshore wind (35 percent).
• Floating turbine technology is essential for expanding capacity, as 58 percent of feasible U.S. offshore wind resources and 80 percent of global potential are located in waters deeper than 60 meters. Commercial-scale floating projects are expected to be online by 2025.
• Global offshore wind capacity is scaling rapidly, with the IEA's Sustainable Development Scenario projecting 560 GW by 2040. The United Kingdom is a leader in this effort, targeting 42 GW by 2030.
• To accelerate U.S. deployment, the document recommends several policy actions: increasing state procurement targets (currently totaling 28.1 GW by 2035), converting federal investment tax credits to direct payments, and coordinating an interstate transmission backbone to reduce costs and curtailment.

APA

MYERS, A. (2020). OFFSHORE WIND: A BOON TO CLIMATE GOALS AND ECONOMIC GROWTH. Energy Innovation. https://energyinnovation.org/wp-content/uploads/Offshore-Wind-A-Boon-To-Economic-Growth_August_2020.pdf

Chicago

MYERS, AMANDA. OFFSHORE WIND: A BOON TO CLIMATE GOALS AND ECONOMIC GROWTH. Energy Innovation, 2020. https://energyinnovation.org/wp-content/uploads/Offshore-Wind-A-Boon-To-Economic-Growth_August_2020.pdf.

Wikipedia

{{cite report |last1=MYERS |first1=AMANDA |title=OFFSHORE WIND: A BOON TO CLIMATE GOALS AND ECONOMIC GROWTH |publisher=Energy Innovation |date=August 2020 |url=https://energyinnovation.org/wp-content/uploads/Offshore-Wind-A-Boon-To-Economic-Growth_August_2020.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{myers2020offshore, author = {MYERS, AMANDA}, title = {{OFFSHORE WIND: A BOON TO CLIMATE GOALS AND ECONOMIC GROWTH}}, institution = {Energy Innovation}, year = {2020}, month = aug, url = {https://energyinnovation.org/wp-content/uploads/Offshore-Wind-A-Boon-To-Economic-Growth_August_2020.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }