The California Public Utilities Commission (CPUC) on Friday stepped up its support for offshore wind power with a proposal to fund the procurement of up to 7.6 gigawatts.
ofsuggestionIt recommended that three rounds of offshore wind projects be solicited starting in 2027, with power expected to start being delivered in 2035, 2036 and 2037.
In addition to promising financial support for the offshore wind industry, the CPUC proposal also promises funding for enhanced geothermal systems of up to 1 gigawatt and two types of long-term energy storage devices of up to 2 gigawatts.
The proposed measure would require the California Department of Water Resources to solicit bids, evaluate the bids received and, as the document suggests, “procure between zero and a maximum amount.”
The CPUC touted offshore wind, geothermal and energy storage as key tools to meet the state’s greenhouse gas emissions reduction goals, which aim to achieve net-zero carbon emissions by 2045.
“These represent emerging technologies that need to realize economies of scale to drive down costs,” the proposal states.
Acknowledging that rising electricity prices are causing hardship for ratepayers, the Commission recognized that implementing such a centralized procurement strategy could result in a sharp increase in utility bills for consumers.
“All possible efforts should therefore be made to contain costs, mitigate risks for ratepayers and seek other sources of funding to reduce development costs and share long-term costs and benefits,” the regulator said.
The 7.6 gigawatts of offshore wind power included in the proposal is a significant increase over the 4.7 gigawatts.Proposed in 2023But this large amount falls short of the 10 gigawatts that the renewable energy industry has claimed.
Still, the California chapter of the lobbying group American Clean Power Association on Monday praised state regulators’ recommendations.
“This proposed decision is an important step toward creating a strong offshore wind industry that advances California’s clean energy, reliability and economic development goals,” Molly Kroll, the group’s Pacific offshore wind director, said in a statement. “We thank the CPUC for recognizing the potential benefits offshore wind can bring to California.”
Kroll added that a procurement of this magnitude is “necessary to support large-scale infrastructure and market transformation.”
