California regulators step up support for offshore wind

The California Public Utilities Commission (CPUC) on Friday ramped up its support for offshore wind, with a proposal to fund the procurement of up to 7.6 gigawatts.

The proposal recommended launching three solicitation rounds for offshore wind projects beginning in 2027, with expected electricity deliveries rolling out in 2035, 2036 and 2037.

In addition to pledging financial backing to the offshore wind industry, the CPUC's proposal also committed to financing up to 1 gigawatt of enhanced geothermal systems and up to 2 gigawatts of two different forms of long-duration energy storage equipment.

The proposed measures would task California's Department of Water Resources with conducting the solicitations, evaluating bids received and "procuring anywhere between zero and the upper limits" suggested in the document.

The CPUC touted offshore wind, geothermal and energy storage as critical tools toward achieving the state's greenhouse gas emissions reduction goals for 2045 — by which time the state aims to achieve net-zero carbon pollution.

"They represent emerging technologies that need to achieve economies of scale to bring costs down," the proposal stated.

Acknowledging that rising electricity prices have created hardships for ratepayers, the Commission recognized that implementing such a centralized procurement strategy could result in consumer utility bill spikes.

"Accordingly, all possible efforts should be made to contain costs, reduce ratepayer risk, and seek other sources of funding to reduce development costs and share in the long-term costs and benefits," the regulator stated.

While the 7.6 gigawatts of offshore wind included in the proposal is a leap beyond the 4.7 gigawatts suggested in 2023, the larger amount also lags behind the 10 gigawatts for which renewable energy interests had been advocating.

Nonetheless, the California branch of the American Clean Power Association lobbying group praised the state regulator's recommendations on Monday.

“This proposed decision is a critical step towards creating a robust offshore wind industry that will promote California’s clean energy, reliability and economic development goals,” Molly Croll, the group's director of Pacific offshore wind, said in a statement. “We are grateful to the CPUC for recognizing the potential benefits of offshore wind to the state.”

This scale of procurement, Croll added, is necessary "for supporting infrastructure at scale and for market transformation.”