Offshore Wind Energy in Maryland

By developing offshore wind energy projects, Maryland can secure new renewable energy and economic benefits while also making progress towards the State’s environmental goals. The U.S. Department of Energy estimates offshore wind could generate roughly twice the amount of electricity the nation consumes annually, with 80 percent of the demand consumed in major cities along the coasts. Offshore wind projects can help revitalize sectors of Maryland’s economy such as manufacturing, maritime, and port industries while creating thousands of high paying jobs. Further, developing Maryland’s offshore wind resources will help reduce greenhouse gas emissions while creating positive economic activity.

 

In an effort to encourage offshore wind project development off Maryland’s coast, the State passed and signed into law the Maryland Offshore Wind Energy Act of 2013. This initiative amended the Renewable Portfolio Standard (RPS) to include offshore wind projects located between ten and thirty miles off Maryland’s coast and to provide financial support for projects in the form of Offshore Wind Renewable Energy Credits (OREC). Maryland’s current RPS aims to source 25 percent of all electricity consumed in the State from renewable energy by the year 2020.  The Maryland Offshore Wind Energy Act of 2013 created a special “carve-out” for offshore wind not to exceed 2.5 percent (estimated to be equivalent to about 480 MW) of the overall RPS. The Law also created an application and review process for offshore wind developers to propose OREC projects tailored for Maryland. The OREC process is coordinated by the Maryland Public Service Commission (PSC).

 

In November 2016, the PSC began reviewing two proposed offshore wind projects submitted by Skipjack Offshore Energy, LLC (Deepwater Wind, LLC) and US Wind Inc. amounting to 368 MW of total capacity. On May 11, 2017, the PSC announced in Order No. 88192 that both projects were approved (with conditions) to receive ORECs. These projects are estimated to create 9,700 full time equivalent jobs and result in more than $2 Billion of economic activity in Maryland, including $120 million of investments in port infrastructure and steel fabrication facilities.

 

For more information about the OREC review process, please see the PSC's website for offshore wind and the PSC's OREC Proceeding Case Jacket (Case No. 9431).