Economic Impact & Financing

The Massachusetts Clean Energy Center released the 2018 Massachusetts Offshore Wind Workforce Assessment, which examines the workforce needs and economic impact of the emerging offshore wind industry.

This report presents the results of a comprehensive workforce and economic analysis that estimates the labor needs and economic impacts associated with the planning, construction, and maintenance of offshore wind (OSW) energy in the Massachusetts and Rhode Island/Massachusetts Wind Energy Areas (WEAs). Informed by the experience of the OSW industry’s emergence in Europe, dozens of in-depth interviews, and a detailed economic analysis, this report is designed to provide state and regional policymakers with actionable recommendations they can use to maximize the economic benefits of the emerging OSW industry for Massachusetts, its communities, and its workforce.

New York State Energy Research and Development Authority has coordinated on behalf of the State all the work being conducted by New York State agencies in the development of offshore wind resources. As part of its leadership role, NYSERDA spearheaded the development of the New York State Offshore Wind Master Plan, a comprehensive roadmap that encourages the development of offshore wind in a manner that is sensitive to environmental, maritime, economic, and social issues while addressing market barriers and aiming to lower costs.

Maine Gov. Paul R. Lepage has issued an order establishing the Maine Wind Energy Advisory Commission to study economic impacts of potential wind turbines, assess the economic impact of expedited wind rules and procedures, and develop recommendations in a written report. Until the report is issued in writing, no permits related to wind turbines are permitted. The order notes that "the scenic vistas and pristine waters of Western Maine, our coast and coastal islands, and our significant avian migratory pathways attract significant tourism to the State."

The U.S. Jones Act Compliant Offshore Wind Turbine Installation Vessel Study examines the functional requirements and costs of constructing purpose-built vessels that would comply with the U.S. Jones Act and meet the needs of the U.S. offshore wind industry. The Jones Act requires any vessel transporting cargo between U.S. ports, or between U.S. ports and offshore facilities, be built and flagged in the U.S. The study presents designs for two Jones Act compliant vessel options: a wind turbine installation vessel and a feeder barge. Estimating packages were sent to multiple U.S. shipyards and indicative prices of $222 million for the wind turbine installation vessel and $87 million for feeder barge were received. Using the cost data, a business model was created that showed 10-years of work, or a pipeline of approximately 3,500 to 4,000 megawatts of offshore wind capacity (roughly equivalent to the expected low regional offshore wind deployment trajectory), would provide the owner of a wind turbine installation vessel with a reasonable rate of return.

The U.S. Job Creation in Offshore Wind report quantifies the job impacts of offshore wind development and specifies the types of jobs to be created. A high market scenario of 8,000 megawatts by 2030 would yield a peak of over 16,000 full-time equivalent (FTE) baseline jobs in the U.S. in 2028, with baseline jobs being ones for which there are no compelling reasons why the work would not be performed by U.S. workers. The jobs most likely to be performed in the U.S. include project development and management, supply and installation of electrical substations and subsea cable, and wind farm operation and maintenance. Additional jobs are also possible, with manufacturing jobs seen as the sector with the greatest potential. When the additional jobs that have a high or medium probability of being performed in the U.S. are included, the number of U.S. jobs would climb to over 36,000 FTE annually between 2026 and 2028. A low market scenario of 4,000 megawatts would create roughly half as many baseline jobs as the high scenario and a smaller proportion of high or medium probability jobs. The high scenario would also trigger more investment in new factories and vessels in the US.

The Northeast Offshore Wind Regional Market Characterization report identifies the opportunities and challenges that will shape the offshore wind market. It estimates the scale of potential offshore wind deployment to serve Northeast markets through 2030, given the nature of the offshore wind resource, federal lease opportunities, state policies, regional energy needs, existing electricity generation and planned retirements, and transmission capacity. The report finds that a low regional deployment trajectory could lead to 4,000 megawatts of offshore wind generation by 2030 off the Atlantic coast of the Northeast. A high regional deployment trajectory could lead to nearly 8,000 megawatts, which could power almost four million homes. The report also provides background information on topics ranging from interconnection infrastructure and permitting timelines to electricity markets and relevant public policies.