Benefits and Challenges of California Offshore Wind Electricity: An Updated Assessment.

Abstract

Offshore wind (OSW) technology has recently been included in California's plans to achieve 100% carbon-free electricity by 2045. As an emerging technology, many features of OSW are changing more rapidly than established renewable options and are shaped by local circumstances in unique ways that limit transferrable experiences globally. This paper fills a gap in the literature by providing an updated technological assessment of OSW in California to determine its viability and competitiveness in the state's electricity generation mix to achieve its near-term energy and environmental goals. Through a critical synthesis and extrapolation of technical, social, and economic analyses, we identify several major improvements in its potential. First, we note that while estimates of OSW's costs per MWh of installed capacity have generally documented and projected a long-term decline, recent technical, microeconomic, and macroeconomic factors have caused significant backsliding of this momentum. Second, we project that the potential dollar value benefits of OSW's greenhouse gas reduction capabilities have increased by one to two orders of magnitude, primarily due to major upward revisions of the social cost of carbon. Several co-benefits, including enhanced reliability, economic growth, and environmental justice, look to be increasingly promising due to a combination of technological advances and policy initiatives. Despite these advancements, OSW continues to face several engineering and broader challenges. We assess the current status of these challenges, as well as current and future strategies to address them. We conclude that OSW is now overall an even more attractive electricity-generating option than at the beginning of this decade.