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UNTAPPED
POTENTIAL
Offshore Wind Energy
Part 1
Rachel A. Buck
Senior Economics
Eastern ConnecticutState
University
Fall 2014
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
1
The term offshore in this writing refers to both oceanic locations and lake regions,
while mainly focusing on the outer shelf of oceanic wind farms. For the ocean, state jurisdiction
ends at approximately three nautical miles from the beaches and federal jurisdiction takes over
until international areas begin. Transmitting electricity from wind farms located in Federal
waters to the power grids requires a state to allow the piping and a substation to be within their
jurisdiction thus causing territorial battles. The litigation of these battles can take a decade or
more and cost millions of dollars without building taking place, which subsequently would take a
few years as well. Technology consistently continues to improve to make wind turbines operate
more efficiently. Recent technology has improved the materials in which wind turbines are made
significantly reducing the cost of both materials and construction. Additionally, extensive
research has been completed by numerous researchers and governmental agencies exploring the
impact of offshore wind farming; this research strives to cover the environmental impact at each
of potential sites. With greater knowledge of environmental correlation, developers are able to
make adjustments which are necessary to production and can optimize the ways in which issues
associated with the transmission of offshore power to the land are handled. Further research also
stems into financial breakdowns by more effectively projecting the costs associated with growth
of the industry in relation to construction of the product.
There are numerous policies purposed to become law, which will reform regulations
surrounding the offshore wind farm industry. Many of those policies aim to incentivize in order
to obtain substantial growth for an industry, which has been fraught with legal battles. These
extensive legal wars have effectively stalled the production of offshore wind farms. During the
course of the prolonged battles vast amounts of potentially harnessed energy has blown over
water bodies uncollected. The untapped potential off the coast of the United States, which will
generate much needed electricity, is clearly a struggle that needs to be solved in order to develop
the renewable and sustainable natural resource of the wind.
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
2
Countries around the globe have shown that the amount of electricity generated by
offshore wind farming significantly benefits the competitive markets when introduced into the
economy. It aids in producing a more diverse market with vendible options for consumers,
reducing the costs of the original products, as well as, maintaining a balanced price for itself.
Studies on wind energy in other countries has generated statistics showing a significant pollution
reduction as well. The development of wind farms has a low impact on the environment and can
even decrease the amount of negative byproducts created by other energy sources.
It has been noted that for centuries wind has been harnessed to provide people with
additional power whether it was for grinding foods or by providing water for stock all around the
globe; the influx of technology has increased the use and function of the old wind mill. Across
the U.S. every state currently has either wind energy projects or places of production for the
products associated with wind farms. Twenty-eight of the states have coastal waters where
developing a wind farm would substantially increase the production of electricity for that state
and for the nation. Currently there are approximately fourteen proposed offshore wind farm
development projects being attempted. Each of these projects are on a different level of receiving
the necessary permitting to commence building. Short-term high costs, fears of negative
environmental impacts, aesthetic ruination, and territorial battles are the largest hurdles wind
farm production is facing. Building a wind farm anywhere in the waters of the U.S. is
heightened by these difficulties. Critical adjustments to how the wind power industry functions
must be made before the construction of off shore wind farms can be advanced. Incentives need
to be provided in order for states and local governments to avidly promote the construction of off
shore wind farms, besides the influx of clean, renewable energy. It should be highlighted that this
shift in energy creation has the potential to influence how the nation generates and transmits
power. Other advantages include reducing unemployment numbers and building a more
competitive electrical market.
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
3
Some of the most recent information on the wind power industry as a whole can be found
at the American Wind Energy Association (AWEA) website, a self-proclaimed national wind
trade advocacy association. Several articles from the website demonstrate the low impact on
several species by offshore wind farms and compare the environmental benefits of wind farming
to other natural resource extraction methods. Wind power “generates no air or water pollution or
hazardous waste, does not deplete fresh water resources (necessary for exploration and
production of fuel as well as thermal generation), requires no mining, transportation, or refining
of a feedstock or fuel (AWEA).” Given the vast differences in damage to the environment by
extraction of a natural resource and the strong concerns about global warming it seems like wind
power is a logically clean and safe alternative. While the onshore production of the wind power
industry is booming in the U.S. the untapped potential of the coastal areas could manufacture
exponentially more. A link on the AWEA website brings up a state by state reflection of the
potential of the wind power industry’s impact on the states electrical grid, employment increases,
and some include offshore potential as well.
The following chart shows a few of the state’s fact sheet information from the website of
the potential for offshore wind power:
The area of offshore potential is displayed, then in the next column a figure is given for
how much extra energy wind power could be produced. For example, establishing a wind farm
offshore of Massachusetts could produce twelve times the current state’s needs.
Offshore Potential: Times the state’s current needs:
Massachusetts 12
Rhode Island 11
New Jersey 4.3
Maryland 2.8
North Carolina 7.5
Louisiana 12.8
Onshore potential: Texas 18
**Figures from AWEA website
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
4
Currently there are several plans for off shore development of the Texas winds due to the
state being ranked among the best in the nation for wind. Ohio also has several projects
underway since the offshore potential is abundantly located in this region. The overall U.S.
potential of offshore wind power is enough to contribute up to four times the generating capacity
of the current electrical system. In response to the growing industry, AWEA created a Standards
Development Board with assistance from the Department of Energy (DOE) and the National
Renewable Energy Laboratory (NREL) regarding recommended practices for U.S. offshore wind
facilities. This Standards Development Board covers several critical areas: structural reliability,
manufacturing, qualification testing, installation and construction, safety of equipment, operation
and inspection, and decommissioning. All of these standards were developed in an effort to
lower costs, project risk, and reduce uncertainty with building any wind farm. Throughout
AWEA’s website is information on the wind farm industry from basic to advanced statistics,
current trends, and conference/webinar meetings on all the latest industry news. Since AWEA is
an advocacy group all the information they provide is expected to hold bias, however looking at
their main focus of education, and promotion of clean renewable energy for a healthier and more
energy secure America, it is hard to remember not to take their information verbatim.
Energy.gov, the website of the Department of Energy for the U.S., has vast amounts of
information about all the energy industries. Focusing on wind power generation and offshore
potential, the site offers insight to the government’s work toward a sustainable, environmentally
less harmful, renewable future. The site has lists and links to peer reviewed documents (similar
to PowerPoint presentations) of information on the offshore wind power industry breaking down
everything from regulations and standards to cost analysis. The initial start-up costs of an
offshore wind farm are extremely high and the government is working to give incentives to
offshore wind farm investors that are at least beneficial enough that the investors would be able
to enter and compete in the economically competitive market of energy suppliers. One such
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
5
presentation on Virginia Offshore Wind Technology Advancement Project (VOWTAP) indicates
the DOE’s budget for the project at about four million dollars. The VOWTAP’s main goal is to
advance the industry using new capabilities and solutions to course issues and lead it to be the
effective renewable energy resource to the nation. Emphasis for the project is on assisting the
process of reducing costs, deployment timelines, and market barriers; also, to examine “design,
installation, and operation and management (Larson, 2).” VOWTAP is purposed to be 24
nautical miles off the coast of Virginia with two wind turbines creating about twelve megawatts
of electricity beginning in 2017. The project appears to be on schedule and actual construction is
designated to begin in early 2017. There are many other projects underway with similar goals
and plans. The advancement of the industry seems to be very important to many levels of
government with the DOE leading the push for offshore wind farming.
Of the many regulations that need refining in order to assist the industry with moving
forward is the Coastal Zone Management Act (CZMA). The CZMA was originally enacted in
1972 and for the purpose of giving states the power to conserve and protect their coastal zones
for future generations. From the act several organizations arose to implement and support all the
efforts associated with the CZMA. While there have already been amendments to the CZMA
throughout its short history, a 2010 article by Erica Schroeder called “Turning Offshore Wind
On” illustrates at least three changes to the act which would assist the industry in achieving the
goals of establishment. Beginning with sections on the basics of wind power and the benefits and
costs, Schroeder examines in depth the industry struggle. After examining the 2010 regulatory
framework of the offshore wind power industry and the state and federal jurisdictions
boundaries, the problem the state and local governments are having becomes clear. Fear of
aesthetic loss, extremely high costs, and fear of loss of control over the coast seem to be the
state’s main concerns. More recent research on the impact of offshore wind farms on the
aesthetic look from the beach to the horizon shows little to no disturbance to the naked eye. The
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
6
instillation of offshore wind farms present no significant changes in property values of the homes
on the coast and near onshore wind power farms according to Energy.gov. The stunningly high
cost of creating a wind farm and the slow moving permitting process and territorial legal battles
are most prevalent to the sluggish development of wind farms. Yet the overall benefits of off
shore wind farming are long-term, this type of energy generation looks to be a relatively
inexpensive energy source in the long run. Many writings emphasize the need for incentives to
the local state governments to assist with the expensive beginnings of a wind power farm;
Schroeder asserts this can be accomplished with an amendment to the CZMA by increasing
funding already in place and bolstering the incentives. Her writing reveals that she feels the
CZMA is an unproductive instrument of advertising for the industry, almost having a negative
affect altogether. Since the CZMA is basically giving power to the coastal states over anything
that would affect their coast, the permitting of offshore wind farms can be successful in the
federal waters but ended at the coastal areas essentially ending the project before it really begins.
Therefore, aside from incentive reform in the CZMA, Schroeder implies that changes in state
planning should be part of an overhaul on the CZMA. Without taking all the power away from
the states, but allowing federal jurisdiction over offshore wind power equipment through state
jurisdictional areas would allow for production of wind farms to happen much quicker. An
essential part of that idea is authorizing offshore wind power as another change to the act. Using
the example of the Cape Wind Project which has been suffering from jurisdictional battles for
about a decade Schroeder demonstrates the need for those suggested changes. While there are
bills currently proposed to make the changes or similar changes to existing Acts, including the
CZMA, which Schroeder suggested approximately four years ago there has been no real
headway made for the bills to come to fruition. The time for federal governmental action was
quite a while ago. The positive effects to the economy are slow because the government is taking
too long to implement the necessary changes to the regulatory frameworks of the energy
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
7
industry.
The difficulties and benefits of offshore wind farm installation have been highlighted
and discussed through many platforms. The reach of this environmentally sustainable energy
source has judicial, economical, and environmental implications, which have either acted as a
hindrance for their construction or promote their existence. Judicially, legal battles over property
have been the baseline for the prolonged delay in construction of wind farms despite their
promise to harness more energy than current energy types. The locations of wind farms are set
far off the coast, well past the three-mile marker that divides private or state property from
federal property. While the fields of wind turbines would be too far from the horizon to be
considered a visual obstruction, direct wiring and the construction of onshore energy collection
stations is what hinders private or state property owners from allowing the permits to succeed.
State owned onshore property, doesn’t hold the implications that private property
owners do, yet they struggle with the concept of financially bringing the conception of wind
farms to life. Companies invested in wind power suffer from the inability to jump-start
production due to a high start-up value. The micro view of wind farms are economically
unsound, while the macro view proves that offshore wind farms produce more energy than
current energy sources, as well as, benefit the environment in ways that save money. Since the
startup cost intimidates investors, incentives are radically pushed. The demand for incentives
has caused researchers to provide sound statistics and estimates based off local U.S. onshore
wind farms and foreign countries use of this renewable energy. It should be emphasized that this
shift in energy creation has the potential to influence how the nation generates and transmits
power. Other advantages include reducing unemployment numbers and building a more
competitive market, which will balance energy prices and reduce the initial start-up cost of wind
farm construction.
One of the most prominent and modern aspects of wind power technology relies on
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
8
societies interest in renewable and sustainable energy paired with a low environmental impact.
Researchers demonstrate how wind farms and the environment correlate positively. This
knowledge of a progressive environmental connection, aids in how developers are able to make
adjustments that are necessary to the production, and can optimize the ways in which issues
associated with the transmission of offshore power to the land are handled.
In order for wind farms to more easily and efficiently be constructed, several events
must occur. Private and state properties must denounce their legal battles over onshore
construction of energy housing units, and recognize the benefits of sustainable wind energy
production. Incentives become a leading promoter in effectively securing investors who see past
the initial cost and view the long-term profits of increased energy production. Offshore wind
farms present an ideal proposition for a clean, alternative energy source.
Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1
9
References
Anonymous, American Wind Energy Association
http://www.awea.org/resources/statefactsheets.aspx?itemnumber=890
Anonymous, Energy.gov, U.S. Department of Energy
http://www.energy.gov/search/site/offshore%20wind%20power
Larson, J. (2014, March 24). Virginia Offshore Wind Technology Advancement Project.
Retrieved September 28, 2014, from
http://www.energy.gov/sites/prod/files/2014/06/f16/eere_wpp_2014_peer_review_Offsho
reDemos.pdf
Schroeder, E. (2010). Turning Offshore Wind On. California Law Review, 98(5), 1631-1667.

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Part 1_Untapped Potential

  • 1. UNTAPPED POTENTIAL Offshore Wind Energy Part 1 Rachel A. Buck Senior Economics Eastern ConnecticutState University Fall 2014
  • 2. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 1 The term offshore in this writing refers to both oceanic locations and lake regions, while mainly focusing on the outer shelf of oceanic wind farms. For the ocean, state jurisdiction ends at approximately three nautical miles from the beaches and federal jurisdiction takes over until international areas begin. Transmitting electricity from wind farms located in Federal waters to the power grids requires a state to allow the piping and a substation to be within their jurisdiction thus causing territorial battles. The litigation of these battles can take a decade or more and cost millions of dollars without building taking place, which subsequently would take a few years as well. Technology consistently continues to improve to make wind turbines operate more efficiently. Recent technology has improved the materials in which wind turbines are made significantly reducing the cost of both materials and construction. Additionally, extensive research has been completed by numerous researchers and governmental agencies exploring the impact of offshore wind farming; this research strives to cover the environmental impact at each of potential sites. With greater knowledge of environmental correlation, developers are able to make adjustments which are necessary to production and can optimize the ways in which issues associated with the transmission of offshore power to the land are handled. Further research also stems into financial breakdowns by more effectively projecting the costs associated with growth of the industry in relation to construction of the product. There are numerous policies purposed to become law, which will reform regulations surrounding the offshore wind farm industry. Many of those policies aim to incentivize in order to obtain substantial growth for an industry, which has been fraught with legal battles. These extensive legal wars have effectively stalled the production of offshore wind farms. During the course of the prolonged battles vast amounts of potentially harnessed energy has blown over water bodies uncollected. The untapped potential off the coast of the United States, which will generate much needed electricity, is clearly a struggle that needs to be solved in order to develop the renewable and sustainable natural resource of the wind.
  • 3. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 2 Countries around the globe have shown that the amount of electricity generated by offshore wind farming significantly benefits the competitive markets when introduced into the economy. It aids in producing a more diverse market with vendible options for consumers, reducing the costs of the original products, as well as, maintaining a balanced price for itself. Studies on wind energy in other countries has generated statistics showing a significant pollution reduction as well. The development of wind farms has a low impact on the environment and can even decrease the amount of negative byproducts created by other energy sources. It has been noted that for centuries wind has been harnessed to provide people with additional power whether it was for grinding foods or by providing water for stock all around the globe; the influx of technology has increased the use and function of the old wind mill. Across the U.S. every state currently has either wind energy projects or places of production for the products associated with wind farms. Twenty-eight of the states have coastal waters where developing a wind farm would substantially increase the production of electricity for that state and for the nation. Currently there are approximately fourteen proposed offshore wind farm development projects being attempted. Each of these projects are on a different level of receiving the necessary permitting to commence building. Short-term high costs, fears of negative environmental impacts, aesthetic ruination, and territorial battles are the largest hurdles wind farm production is facing. Building a wind farm anywhere in the waters of the U.S. is heightened by these difficulties. Critical adjustments to how the wind power industry functions must be made before the construction of off shore wind farms can be advanced. Incentives need to be provided in order for states and local governments to avidly promote the construction of off shore wind farms, besides the influx of clean, renewable energy. It should be highlighted that this shift in energy creation has the potential to influence how the nation generates and transmits power. Other advantages include reducing unemployment numbers and building a more competitive electrical market.
  • 4. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 3 Some of the most recent information on the wind power industry as a whole can be found at the American Wind Energy Association (AWEA) website, a self-proclaimed national wind trade advocacy association. Several articles from the website demonstrate the low impact on several species by offshore wind farms and compare the environmental benefits of wind farming to other natural resource extraction methods. Wind power “generates no air or water pollution or hazardous waste, does not deplete fresh water resources (necessary for exploration and production of fuel as well as thermal generation), requires no mining, transportation, or refining of a feedstock or fuel (AWEA).” Given the vast differences in damage to the environment by extraction of a natural resource and the strong concerns about global warming it seems like wind power is a logically clean and safe alternative. While the onshore production of the wind power industry is booming in the U.S. the untapped potential of the coastal areas could manufacture exponentially more. A link on the AWEA website brings up a state by state reflection of the potential of the wind power industry’s impact on the states electrical grid, employment increases, and some include offshore potential as well. The following chart shows a few of the state’s fact sheet information from the website of the potential for offshore wind power: The area of offshore potential is displayed, then in the next column a figure is given for how much extra energy wind power could be produced. For example, establishing a wind farm offshore of Massachusetts could produce twelve times the current state’s needs. Offshore Potential: Times the state’s current needs: Massachusetts 12 Rhode Island 11 New Jersey 4.3 Maryland 2.8 North Carolina 7.5 Louisiana 12.8 Onshore potential: Texas 18 **Figures from AWEA website
  • 5. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 4 Currently there are several plans for off shore development of the Texas winds due to the state being ranked among the best in the nation for wind. Ohio also has several projects underway since the offshore potential is abundantly located in this region. The overall U.S. potential of offshore wind power is enough to contribute up to four times the generating capacity of the current electrical system. In response to the growing industry, AWEA created a Standards Development Board with assistance from the Department of Energy (DOE) and the National Renewable Energy Laboratory (NREL) regarding recommended practices for U.S. offshore wind facilities. This Standards Development Board covers several critical areas: structural reliability, manufacturing, qualification testing, installation and construction, safety of equipment, operation and inspection, and decommissioning. All of these standards were developed in an effort to lower costs, project risk, and reduce uncertainty with building any wind farm. Throughout AWEA’s website is information on the wind farm industry from basic to advanced statistics, current trends, and conference/webinar meetings on all the latest industry news. Since AWEA is an advocacy group all the information they provide is expected to hold bias, however looking at their main focus of education, and promotion of clean renewable energy for a healthier and more energy secure America, it is hard to remember not to take their information verbatim. Energy.gov, the website of the Department of Energy for the U.S., has vast amounts of information about all the energy industries. Focusing on wind power generation and offshore potential, the site offers insight to the government’s work toward a sustainable, environmentally less harmful, renewable future. The site has lists and links to peer reviewed documents (similar to PowerPoint presentations) of information on the offshore wind power industry breaking down everything from regulations and standards to cost analysis. The initial start-up costs of an offshore wind farm are extremely high and the government is working to give incentives to offshore wind farm investors that are at least beneficial enough that the investors would be able to enter and compete in the economically competitive market of energy suppliers. One such
  • 6. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 5 presentation on Virginia Offshore Wind Technology Advancement Project (VOWTAP) indicates the DOE’s budget for the project at about four million dollars. The VOWTAP’s main goal is to advance the industry using new capabilities and solutions to course issues and lead it to be the effective renewable energy resource to the nation. Emphasis for the project is on assisting the process of reducing costs, deployment timelines, and market barriers; also, to examine “design, installation, and operation and management (Larson, 2).” VOWTAP is purposed to be 24 nautical miles off the coast of Virginia with two wind turbines creating about twelve megawatts of electricity beginning in 2017. The project appears to be on schedule and actual construction is designated to begin in early 2017. There are many other projects underway with similar goals and plans. The advancement of the industry seems to be very important to many levels of government with the DOE leading the push for offshore wind farming. Of the many regulations that need refining in order to assist the industry with moving forward is the Coastal Zone Management Act (CZMA). The CZMA was originally enacted in 1972 and for the purpose of giving states the power to conserve and protect their coastal zones for future generations. From the act several organizations arose to implement and support all the efforts associated with the CZMA. While there have already been amendments to the CZMA throughout its short history, a 2010 article by Erica Schroeder called “Turning Offshore Wind On” illustrates at least three changes to the act which would assist the industry in achieving the goals of establishment. Beginning with sections on the basics of wind power and the benefits and costs, Schroeder examines in depth the industry struggle. After examining the 2010 regulatory framework of the offshore wind power industry and the state and federal jurisdictions boundaries, the problem the state and local governments are having becomes clear. Fear of aesthetic loss, extremely high costs, and fear of loss of control over the coast seem to be the state’s main concerns. More recent research on the impact of offshore wind farms on the aesthetic look from the beach to the horizon shows little to no disturbance to the naked eye. The
  • 7. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 6 instillation of offshore wind farms present no significant changes in property values of the homes on the coast and near onshore wind power farms according to Energy.gov. The stunningly high cost of creating a wind farm and the slow moving permitting process and territorial legal battles are most prevalent to the sluggish development of wind farms. Yet the overall benefits of off shore wind farming are long-term, this type of energy generation looks to be a relatively inexpensive energy source in the long run. Many writings emphasize the need for incentives to the local state governments to assist with the expensive beginnings of a wind power farm; Schroeder asserts this can be accomplished with an amendment to the CZMA by increasing funding already in place and bolstering the incentives. Her writing reveals that she feels the CZMA is an unproductive instrument of advertising for the industry, almost having a negative affect altogether. Since the CZMA is basically giving power to the coastal states over anything that would affect their coast, the permitting of offshore wind farms can be successful in the federal waters but ended at the coastal areas essentially ending the project before it really begins. Therefore, aside from incentive reform in the CZMA, Schroeder implies that changes in state planning should be part of an overhaul on the CZMA. Without taking all the power away from the states, but allowing federal jurisdiction over offshore wind power equipment through state jurisdictional areas would allow for production of wind farms to happen much quicker. An essential part of that idea is authorizing offshore wind power as another change to the act. Using the example of the Cape Wind Project which has been suffering from jurisdictional battles for about a decade Schroeder demonstrates the need for those suggested changes. While there are bills currently proposed to make the changes or similar changes to existing Acts, including the CZMA, which Schroeder suggested approximately four years ago there has been no real headway made for the bills to come to fruition. The time for federal governmental action was quite a while ago. The positive effects to the economy are slow because the government is taking too long to implement the necessary changes to the regulatory frameworks of the energy
  • 8. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 7 industry. The difficulties and benefits of offshore wind farm installation have been highlighted and discussed through many platforms. The reach of this environmentally sustainable energy source has judicial, economical, and environmental implications, which have either acted as a hindrance for their construction or promote their existence. Judicially, legal battles over property have been the baseline for the prolonged delay in construction of wind farms despite their promise to harness more energy than current energy types. The locations of wind farms are set far off the coast, well past the three-mile marker that divides private or state property from federal property. While the fields of wind turbines would be too far from the horizon to be considered a visual obstruction, direct wiring and the construction of onshore energy collection stations is what hinders private or state property owners from allowing the permits to succeed. State owned onshore property, doesn’t hold the implications that private property owners do, yet they struggle with the concept of financially bringing the conception of wind farms to life. Companies invested in wind power suffer from the inability to jump-start production due to a high start-up value. The micro view of wind farms are economically unsound, while the macro view proves that offshore wind farms produce more energy than current energy sources, as well as, benefit the environment in ways that save money. Since the startup cost intimidates investors, incentives are radically pushed. The demand for incentives has caused researchers to provide sound statistics and estimates based off local U.S. onshore wind farms and foreign countries use of this renewable energy. It should be emphasized that this shift in energy creation has the potential to influence how the nation generates and transmits power. Other advantages include reducing unemployment numbers and building a more competitive market, which will balance energy prices and reduce the initial start-up cost of wind farm construction. One of the most prominent and modern aspects of wind power technology relies on
  • 9. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 8 societies interest in renewable and sustainable energy paired with a low environmental impact. Researchers demonstrate how wind farms and the environment correlate positively. This knowledge of a progressive environmental connection, aids in how developers are able to make adjustments that are necessary to the production, and can optimize the ways in which issues associated with the transmission of offshore power to the land are handled. In order for wind farms to more easily and efficiently be constructed, several events must occur. Private and state properties must denounce their legal battles over onshore construction of energy housing units, and recognize the benefits of sustainable wind energy production. Incentives become a leading promoter in effectively securing investors who see past the initial cost and view the long-term profits of increased energy production. Offshore wind farms present an ideal proposition for a clean, alternative energy source.
  • 10. Rachel A. Buck/Senior Economics Fall 2014/Dr. Brown/ Untapped Potential, Part 1 9 References Anonymous, American Wind Energy Association http://www.awea.org/resources/statefactsheets.aspx?itemnumber=890 Anonymous, Energy.gov, U.S. Department of Energy http://www.energy.gov/search/site/offshore%20wind%20power Larson, J. (2014, March 24). Virginia Offshore Wind Technology Advancement Project. Retrieved September 28, 2014, from http://www.energy.gov/sites/prod/files/2014/06/f16/eere_wpp_2014_peer_review_Offsho reDemos.pdf Schroeder, E. (2010). Turning Offshore Wind On. California Law Review, 98(5), 1631-1667.