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Evaluating Workforce Development and Supply Chain Solutions for Offshore Wind Energy
With construction underway on the Vineyard Wind project—the first large wind farm off the east coast of the United States—we can’t help but think about the exciting future of offshore wind (OSW) power here on the west coast. This past year, Greene Economics has collaborated with industry experts to assess the feasibility and requirements for developing offshore wind in California.
In support of California’s legislated targets outlined in AB 525—which aims for 25,000 megawatts (MW) of offshore wind energy generation by 2045—Greene Economics partnered with Catalyst Environmental Solutions, a firm specializing in environmental assessments. Together, we have determined the economic benefits of developing a trained workforce, establishing one or more seaports, and creating a training center to support these OSW targets in California for the California Energy Commission (CEC). This research highlights the vital role of workforce development and supply chain assessment in ensuring the successful implementation of offshore wind projects.
Greene Economics focused on how offshore wind development could impact California’s economy, specifically the labor market and supply chain manufacturing for OSW components.
"To create this offshore wind industry, everything must happen right here in California—from training the workforce to manufacturing components and establishing the necessary infrastructure,” says Jeri Sawyer, Principal Economist at Greene Economics. "You’ve probably seen the wind turbine blades on the highway—those are for onshore projects. Offshore turbines are even bigger! You can’t transport them; they need to be built locally.”
Additionally, the team designed a survey instrument to capture the perspectives, insights, and recommendations of industry leaders and subject matter experts in California and across the nation. Our team conducted interviews and synthesized recommendations for inclusion in the final report, primarily focused on training and supply chain requirements.
West Coast Offshore Wind Science Consortium
Recently, the launch of the West Coast Offshore Wind Science Consortium marks a significant step forward in advancing offshore wind energy research and development on the West Coast. This consortium aims to enhance collaboration among universities, industry stakeholders, and government agencies to ensure that California is well-prepared to support offshore wind projects effectively. By fostering research on the environmental impacts and technological advancements related to offshore wind, the consortium aligns perfectly with California’s ambitious offshore wind targets.
“We hope that our work supports this consortium by providing essential economic analysis that informs stakeholders about the requirements, feasibility, and impact of developing offshore wind in California,” Jeri adds.
Recent Approval of California Offshore Wind Plan
In a crucial development, California’s offshore wind plan has been approved, paving the way for the state to expand its renewable energy capacity significantly. This plan not only supports the goal of generating 25,000 MW by 2045 but also establishes a framework for sustainable development that balances economic growth with environmental stewardship. The approval underscores California's commitment to becoming a leader in the renewable energy sector and provides a pathway for future offshore wind projects.
Report Structure
The Greene team evaluated the economic impact of potential OSW development for California, including workforce and supply chain development plans.
The report consists of two parts:
Literature Review: This section includes the state’s current capacity to support OSW development, the component parts best suited for in-state manufacturing, and an analysis of policies, incentives, and tax breaks utilized by other states or countries to incentivize OSW development that could be implemented in California to attract OSW component manufacturers.
Economic Impact Analysis: This involves a state and four-county analysis of the economic impacts of investing in port development, a training center, and workforce development to support OSW using IMPLAN software. The results include the number or value of direct, indirect, and induced jobs, labor income, GDP, and taxes in the state and four-county region attributable to seaport, training center, and workforce development with and without policy support to encourage local suppliers and labor.
“As we explore the potential for an offshore wind industry in California, it’s essential to understand the economic trickle-down effects. The community benefits can be significant if we invest wisely in workforce training and local supply chains,” notes Jeri.
The graphic below provides an illustration of how the impacts of OSW flow through an economy.
As we look ahead, the potential for offshore wind development in California is not just a renewable energy opportunity but also a significant economic driver. By investing in workforce training and infrastructure, California can lead the way in sustainable energy while creating jobs and stimulating local economies.
The findings of our report aim to guide policymakers in making informed decisions that will benefit the state and its residents for years to come. For more information, see California Energy Commission's OSW Fact Sheet [PDF].
At Greene Economics, we specialize in providing comprehensive economic analyses and policy recommendations to support these initiatives. If you’re interested in understanding how offshore wind development or other renewable energy projects can benefit your community or organization, or if you want to collaborate on project feasibility studies and economic impact assessments, please reach out to us.
Let’s work together to create sustainable solutions for a clean energy future!