Full Title: North Carolina Offshore Wind Cost-Benefit Analysis
Author(s): Jaime Simmons, Diana Godlevskaya, Katharine Kollins
Publisher(s): E2, Southeastern Wind Coalition
Publication Date: January 19, 2022
Full Text: Download Resource
Description (excerpt):
Recently codified in state-level legislation, North Carolina has asserted the carbon-reduction goal of 70% by 2030 and to achieve carbon neutrality by mid-century. To that end, the Governor’s administration, the North Carolina General Assembly, and Duke Energy have all endeavored to examine pathways to reliably and cost effectively decarbonize the state’s electric grid. While offshore wind has occasionally been an element of these discussions, due to relative cost and nascency of the U.S. offshore wind industry, it hasn’t been evaluated as a primary tool for decarbonization.
Absent from any of the decarbonization modeling or stakeholder processes conducted in the state since 2018 is the consideration of the economic benefits that accompany offshore wind. According to the American Wind Energy Association (AWEA), now the American Clean Power Association (ACP), an estimated 30GW of offshore wind deployment in the U.S. by 2030 could generate as much as $57 billion in economic output. As such, the inclusion of these benefits is critical when understanding the full value of the technology.
This analysis determines both the costs and benefits of a theoretical 2.8-gigawatt (GW) offshore wind project developed off the coast of North Carolina in operation by 2030 using industry-standard practices, data, and modeling tools. The costs and benefits are measured against one another to determine the net economic impact.