BizMDOSW: US Offshore Wind Industry Will Move Forward

Following the result of the US presidential election, the Business Network for Offshore Wind (BizMDOSW) issued a statement congratulating President-Elect Donald J. Trump and saying it believes that harnessing the power of offshore wind to create jobs, strengthen the economy, and improve the quality of life for all citizens transcends political parties.

The US offshore wind industry will continue to move toward commercial scale development because costs are dropping, US energy decisions are made locally not federally, and offshore wind enjoys bi-partisan support, the organisation said.

BizMDOSW pointed to the latest proof of falling offshore wind prices – the result of the Kriegers Flak tender in Denmark, won by Vattenfall at a price of €49.9/MWh, equating to $55/MWh or 5.5¢ per KWh. These cost reductions achieved in such a short time mean offshore wind energy is closer to being competitively viable with onshore wind, solar and fossil fuels.

Speaking of Denmark, the Danish Wind Industry Association (DWIA) recently commented on the US election result in relation to offshore wind, stressing that its development is a matter dealt with by the states and that there is a potentially large market which can be expected to gain momentum in the coming years. DWIA also cited a survey result that had shown almost 80% of Donald Trump’s followers want more wind turbines to be built in the United States. 

In the light of renewable energy questions raised in the media after Donald Trump won the presidency, Liz Burdock, the Executive Director of the Business Network for Offshore Wind, provided a deeper insight into the matter. Namely, in an article titled “What A Trump Presidency Means For US Offshore Wind”, Burdock commented on the reference that the US President Elect fought against the construction of an offshore wind farm in Europe – the Aberdeen Offshore Wind Farm (the European Offshore Wind Deployment Centre), saying this does not necessarily reflect his ideology since the case was based around the view from his golf course.

Burdock further detailed why offshore wind development would not be negatively affected under Donald Trump’s presidency.

She also pointed out that states are creating the markets and policies for the US renewable energy industry. “The federal government cannot repeal State Renewable Portfolio Standards (RPS) or any State renewable or offshore wind legislation.”

The states will continue to lead the development of offshore wind and the BOEM leases will not be rescinded, Burdock said, and the only difference with Donald Trump being the president is that “they won’t have a federal partner as they would have if Clinton had won the presidency and continued the Obama Administration renewable energy friendly stance.” 

Also, the USD 40 million in the US Department of Energy’s budget set aside for demonstration projects is unlikely to be removed from the final FY2017 appropriations bill. This budget should be completed and signed into law before President Obama leaves office, Burdock said.

There is no doubt that a President Trump will be fossil fuel friendly. He may try to roll back the federal PTC and ITC tax credits but these are already being phased out and he will need Congressional approval to eliminate them. This will prove difficult as they enjoy bi-partisan support. He will more than likely make efforts to eliminate the Clean Power Plan, which has always been in jeopardy. However, changes have already started to be made at the state level so many state governments will assume the responsibilities and incorporate climate related changes into their laws.

We may see a slowdown in the BOEM permitting process, and a second round of offshore wind energy leases is likely to be delayed for the next two years. However, Republicans are generally for eliminating regulatory processes and barriers, so if a strong enough business case is made, we may not have to wait for the mid-term elections.

Liz Burdock further said she believes that President Elect probably cares very little about what industries originate the jobs as long as they materialize, and that “under Trump, there will be business tax incentives and a badly needed infrastructure policy that could help offshore wind solve the port problem.”

“One thing that remains clear: whoever was elected to the White House, the business case for offshore winds always needed to be made. Let’s unite, advance together, expand the network, become stronger and louder. Our goals remain unchanged: further drive down LCOE, build up the U.S. supply chain through partnering, exporting, and diversification and continue creating regional offshore wind markets,” Liz Burdock said.