Governor pushes offshore wind in Maryland

Trying to create a clearer, long-term financial picture for offshore wind energy development, Maryland Governor Martin O’Malley introduced the Maryland  Offshore Wind Energy Act of 2011 today. The bill, HB 1054, would require that public utilities to enter into long-term purchase agreements with wind power generation facilities located more than 10 miles off of Maryland’s Atlantic coast. Locking in long term rates is important for stability of the offshore wind market.

Offshore wind is an important element in Maryland’s plans to generate 20% of its energy from renewable sources by 2022.

“Thanks to the tough choices we’ve made over the last four years, Maryland has emerged as one of the leaders  in the effort to harness the power of offshore wind – an industry with the potential to create thousands of jobs  and power hundreds of thousands of homes,” said Governor O’Malley. “By requiring the utilities to enter into  long-term agreements, we can finally shift our focus from short term profit to our state’s long-term energy
security.”

An analysis conducted by the U.S. Department of Energy estimates that offshore wind will create approximately  20.7 direct jobs per annual megawatt (MW), including jobs in manufacturing, engineering, and skilled labor. A  500MW wind generation facility in the waters off of the Delmarva coast could generate as many as 2,000  manufacturing and construction jobs during the five-year development period, with an additional 400 permanent  jobs once the turbines are spinning.  

The bill would require that public utilities purchase between 400 to 600 MW of power from offshore wind generation facilities in federal waters off Maryland’s coastline for a period of twenty or more years.  Five  hundred MW of offshore wind energy is enough to power more than half of the homes in the City of Baltimore, or 79% of the homes on Maryland’s Eastern Shore.  For residential ratepayers, the Public Service Commission  currently directs the utilities to procure approximately 25% of their power at a time, in two year contracts,  making ratepayers vulnerable to periodic increases in the market price of energy, particularly traditional  electricity based on fossil fuel resources.  

Due to its ideal location in the Mid-Atlantic, as well as the deep-water port and manufacturing infrastructure in  Baltimore, Maryland is well positioned to be a leader not only in offshore wind energy generation, but also in  ongoing construction and maintenance.

“Offshore wind power is our best, most promising renewable energy resource,” said Malcolm Woolf, Director of the Maryland Energy Administration. “If we act now we can ensure long-term price stability, create jobs, and  generate much needed clean energy to power the next generation of Maryland innovation.”