Offshore Wind in California: A Closer Look
As the U.S. federal government sets ambitious goals to reach 100% carbon-free electricity by 2050, several states have begun this transition already. Let’s have a look at California.
California’s electricity grid is currently averages 60% carbon-free, with the goal to reach 100% carbon-free electricity by 2045, as stated in the California Senate Bill (SB) 100. To meet this goal, the state analysis has shown that California must source 10 GW of energy from offshore wind.
In response to this, a Californian assembly member has introduced a bill, co-sponsored by the State Building and Construction Trades Council of California and Environment California, known as AB-525, which orders state agencies to plan and prepare for California to be producing 3 GW of offshore wind by 2030 and 10 GW by 2040.
While the offshore wind industry along the U.S. East Coast has been developing for over a decade, the offshore wind industry in California and associated governmental authorities have lagged behind. There are several reasons why the offshore wind market has accelerated up and down the East Coast but has failed to make similar progress in California.
So, what’s the hold up in California?
Floating Foundations
The main reason is the difference in seabed characteristics. The Pacific Outer Continental Shelf (OCS) is much narrower than the Atlantic OCS; its shallow waters extend out only 32 kilometers (20 miles) from shore, compared to the 120 kilometers (75 miles) of shallow water atop the Atlantic OCS. In fact, 96% of California’s consistent, usable offshore wind supply — but only 28% of the East Coast — is located in waters deeper than 60 meters (about 200 feet), which is too deep for the traditional types of wind turbine foundations used, such as monopiles and other fixed-bottom foundations. Thus, wind turbines off the Californian coast require floating foundations, which are still in the early phases of development.
To advance the maturity of floating offshore wind, the Department of Energy has invested over $100 million in research and development of floating foundation technology over the past several years.
Navy and Air Force Reserves
Another reason for this development delay is that the offshore wind industry in California has long faced opposition from the U.S. Department of Defense. The Point Mugu Sea Range and the Southern California (SOCAL) Offshore Complex combine for more than 120,000 square miles of water off California’s coast to test weapons and train for the Navy and the Air Force reserves.
Other Renewable Energy Sources
A further consideration is that California has focused its renewable energy development efforts on land-based energy sources, such as solar and onshore wind, as the state benefits from containing vast sections of undeveloped land ideally suited for these sources. The East Coast, lacking this resource, has shifted its efforts to offshore development much sooner.
So, why is it starting now?
As a part of SB 100, the Nature Conservancy and Defenders of Wildlife estimated that California would need to build approximately 90 square kilometers (35 square miles) of solar and 150 square kilometers (58 square miles) of onshore wind every year to be 100% carbon-free by 2045. This annual land requirement is two times bigger than the land area of the city of San Francisco — a completely unrealistic annual development goal, and one that would destroy sensitive species and habitats that exist in undeveloped land. These concerns have led experts to look towards offshore wind as a vital tool for California to reach its clean energy goals while also maintaining strong land and animal conservation.
In addition, the January 2021 release of the SB 100 Joint Energy Agency Report, which detailed how California will reach its clean energy goals laid out in SB 100, revealed that offshore wind is an absolute necessity to reaching these goals. The Biden-Harris administration’s ambitious goal to double U.S. offshore wind capacity by 2030 calls California to action, as the state has the opportunity to gain both federal attention and funding. In November 2021, the Bureau of Ocean Energy Management (BOEM) designated the Morro Bay Area as a Wind Energy Area. This begins BOEM’s environmental assessment, which is required by the National Environmental Policy Act, analyzing potential impacts during characterization assessment.
Potential Sites
In 2016, after years of discussion between the Departments of Interior and Defense on the potential for offshore wind in California, BOEM and the California Energy Commission established a California Intergovernmental Renewable Energy Task Force (“Task Force”). The Task Force, led by BOEM, includes representatives from state, local, and tribal governments, and its goal is to determine the feasibility of potential lease areas. It held its first meeting on October 13th, 2016, initiating data collection to identify areas most suitable for offshore wind development.
In its search for sections of federal waters off of California compatible with offshore wind development, the Task Force considered areas greater than three nautical miles from shore where ocean depth was 1,000 meters or less — the allowable range for current floating offshore wind technology.
Within these areas, annual average wind speed, level of access to on-land electricity transmission, and port suitability for installation and service were determined. By December 2016, the Task Force established six offshore wind reference areas:
- Channel Islands South (total potential capacity: 2,259 MW)
- Channel Islands North (total potential capacity: 1,335 MW)
- Morro Bay Area (total potential capacity: 3,702 MW)
- Bodega Bay Area (total potential capacity: 2,397 MW)
- Humboldt Bay Area (total potential capacity: 1,293 MW)
- Crescent City Area (total potential capacity: 5,256 MW)
In 2018, the Task Force identified the Humboldt, Morro Bay, and Diablo Canyon areas as most suitable for offshore wind development, and established these three offshore wind reference areas as call areas.
Indications of Interest
On October 19th, 2018, BOEM called on developers to submit indications of interest in obtaining a commercial lease for offshore wind energy development in any of the three previously established call areas. BOEM received 14 submissions from developers, who expressed interest in various combinations of the call areas:
- Algonquin Power Co. (America), Inc. of Algonquin Power & Utilities
- wpd Offshore Alpha, LLC
- Avangrid Renewables, LLC of AVANGRID
- Castle Wind, LLC of Trident Winds, Inc. and EnBW North America, Inc
- Cierco Corporation
- EDF Renewables Development, Inc. of EDF Group
- EDP Renewables North America, LLC
- E C & R (eON) Development, LLC
- Equinor Wind US, LLC
- Mission Floating Wind, LLC of Magellan Wind LLC and CI III Magellan Holding LLC
- Northcoast Floating Wind, LLC of Magellan Wind LLC and Copenhagen Infrastructure Partners P/S
- Northland Power America Inc. of Northland Power Inc.
- Redwood Coast Energy Authority (RCEA) with EDPR Offshore North America LLC, Principle Power, Inc, and Aker Solutions Inc.
- US Mainstream Renewable Power, Inc.
BOEM reviewed all these parties and determined them all to be legally, technically, and financially qualified to obtain a commercial lease.
As these developers have awaited action from the Task Force, one has moved ahead with publicly planning for its project. Castle Wind LLC is a California-based offshore wind developer, established in 2018 by Trident Winds Inc. and EnBW North America Inc. It seeks procurement of a lease in the Morro Bay call area for its proposed 1,000 MW project called Castle Wind Offshore.
In 2018, anticipating this procurement, Castle Wind began discussing benefits agreements with the Morro Bay City Council, Morro Bay Commercial Fishermen Organization, and the Port San Luis Commercial Fishermen Association. In 2019, Castle Wind began talks with Central Coast Community Energy regarding a future Power Purchasing Agreement. No other developer has announced any offshore wind project for California, but it is likely that several have privately started to plan projects.
Identified Sites
In an announcement made on May 25th, 2021, the Biden-Harris Administration declared that BOEM would advance the Humboldt and Morro Bay areas as potential wind energy areas, with Morro Bay becoming a wind energy area in November 2021. These call areas collectively could generate up to 4.6 GW of clean energy for California, which could power 1.6 million homes.
This announcement came after the Department of Defense agreed to drop its opposition to the selection of the Morro Bay Area, which is located within the Wind Exclusion Area previously established by the Department of Defense.
“We at the Defense Department are satisfied that there’s not a trade-off between the clean energy goals of this endeavor and our military readiness.”
- Colin Kahl, the Undersecretary of Defense for Policy
Morro Bay
The Morro Bay wind energy area is located over 30 kilometers from shore on the Pacific Plate, 200 kilometers from the San Andreas Fault. Independently, this call area can support 3 GW of energy; however, there is heavy shipping activity on the eastern side of the Morro Bay wind energy area, which would likely mean the designation of a shipping lane with a width of three nautical miles — a regulated sizing from the International Maritime Organization.
Additionally, the wind energy area lies in the view from a highly valued California coastline, which could cause opposition to cause the potential farm’s visual impact to be larger than otherwise. Eleven of the fourteen developers who submitted indications of interest to BOEM have expressed interest in developing within the Morro Bay call area.
The 2013 closure of the Morro Bay Power Plant and the planned closure of the Diablo Canyon Power Plant both provide convenient potential interconnection points for wind farms within this call area.
Humboldt
The Humboldt call area is located over 30 kilometers from shore along a convergent plate boundary between the North American plate, the Gorda plate, and the Pacific plate. It is expected that ground sediments will shift under a wind farm throughout its lifespan due to the proximity to these boundaries, and there is the potential risk of soil liquefaction from earthquakes. Most of the call area lies in water deeper than 1,100 meters, outside the allowable range for current floating offshore wind technology. This and the area’s sharply sloping seabed depth contours pose additional challenges for development.
Independently, this call area can support the generation of 1.6 GW of energy. Ten of the fourteen developers who submitted indications of interest to BOEM have expressed interest in developing within the Humboldt call area.
Moving Forward
Throughout the summer of 2021, the California Intergovernmental Renewable Energy Task Force continued its efforts to understand the most suitable areas for offshore wind development but presented the fewest environmental and user conflicts.
BOEM will then determine whether competitive interest in offshore wind development still exists within these new areas and will later notify developers of its intent to lease. The sale of leasing rights to developers is targeted for mid-2022.
What’s the Conclusion?
While significantly lagging behind of those at the East Coast, the offshore wind industry and policy-makers in California are more than ready to play catch-up. In anticipation, the key offshore wind players in the U.S. have shifted their research and development focus from fixed-bottom foundations to floating foundations.
With strong support from the Biden-Harris administration and trailblazing efforts from East Coast offshore wind developers, California’s path to offshore wind energy production — though long and winding — consists of a series of open doors. This crucial path parallels many others; together, they lead to a nation powered by 100% clean, carbon-free, and renewable energy sources.
About LAUTEC
LAUTEC’s vision is to transition all power generation and fuels into renewables. As a consultancy and software provider for the renewable energy sector, we enable the public and private sectors to develop, execute and operate renewable energy projects smarter, faster, and cheaper.
With diverse backgrounds and a never-ending passion for wind power, our specialists support EPCI projects worldwide. Coming with expertise through years of experience, LAUTEC has provided consulting and software for most of the large offshore wind developers and onshore wind projects.
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