Potential impacts and economic value of US offshore wind

As part of the recently completed National Offshore Wind Energy Grid Interconnection Study (NOWEGIS), potential sites for 54 GW of offshore wind for interconnection into the US grid were identified based on lowest levelized cost of energy. Significant offshore wind energy has the potential to create steady-state congestion for the transmission grid near the interconnection points. Based on 2030 Summer Peak power flow data provided for NOWEGIS, the potentially overloaded conditions were explored on a regional basis. Offshore wind is known to be an expensive option for renewables. Every aspect of the economic benefits accrued by its use should be identified and considered when evaluating the economic justification of any project. The economic value of offshore wind was evaluated using market-based production cost simulations.