The California Public Utilities Commission (CPUC) has finalised its plan to facilitate the state’s procurement of more than 10 GW of large-scale renewable energy and storage, including 7.6 GW of (floating) offshore wind.
CPUC has voted to adopt a proposed decision from July, directing the Department of Water Resources (DWR) to procure electrical resources with long lead times, including offshore wind.
The maximum capacity outlined in the initial determination under Assembly Bill 1373 includes up to 7.6 GW of (floating) offshore wind, up to 1 GW of enhanced geothermal systems (EGS), up to 1 GW of multi-day long-duration energy storage (LDES), and up to 1 GW of LDES with a discharge period of at least 12 hours.
On 23 July, Oceantic Network founder and CEO, Liz Burdock , said the CPUC’s decision has provided significant momentum to the state’s offshore wind market, determining a need for 7.6 GW of centralized offshore wind procurement.
“The CPUC’s plan also involves laying out a predictable timeline of demand that will boost supplier confidence in the market and foster new investments into infrastructure. This is a critical step towards creating a supply chain capable of meeting California’s ambitious 25 GW of floating offshore wind deployment target”, Burdock added.
“Today’s decision, along with other important actions taken recently by California’s various executive branch agencies, signals a firm commitment to the development of floating offshore wind. This action will help attract needed investments and resources to ensure the state can build offshore wind out by its desired timelines and at a cost that will provide ratepayer stability over the long term.”
Adam Stern, Offshore Wind California executive director, also responded to the decision, saying, “We welcome the California Public Utilities Commission’s (CPUC) final decision to set an initial need determination of 7.6 gigawatts (GW) for purchasing offshore wind energy at scale, to go online between 2031 and 2037.”
Stern added that the target is well within the 7 to 10 GW of power-generating potential that experts and the industry estimate for the five initial offshore wind lease areas off California’s Central and North Coast.
Recently, the California Energy Commission (CEC) adopted a final strategic plan to guide the development of offshore wind energy in the state.
The final strategic plan has been created under the bill AB 525, signed into law by Governor Newsom in 2021 . The plan outlines analysis and strategies to deploy floating wind turbines off California’s central and northern coasts to reach the state’s target of 25 GW of offshore wind capacity by 2045.
California already has five offshore wind projects in development, which are expected to become operational by the mid-2030s. These projects follow the 2022 lease auction, the first in the US to designate offshore areas for floating wind projects.
RWE and Copenhagen Infrastructure Partners (CIP) won development rights for one lease area each in the Humboldt Bay Wind Energy Area (WEA). Equinor, Ocean Winds, and Invenergy secured a lease area in the Morro Bay WEA.
The US Bureau of Ocean Energy Management (BOEM) estimated the total capacity of the five areas at 4.5 GW. However, with advancements in wind energy generation technology, developers have revealed their projects may have much higher nameplate capacities .