1. Where will offshore generation connect to the onshore grid?
In the U.S., there are a limited number of locations that are well-suited to connect offshore generation to the onshore grid. These include several soon-to-be-shuttered nuclear power plants on the Atlantic Coast with existing infrastructure that can be efficiently repurposed to accept offshore power and deliver it to the grid.
Because these connection points — some of which are privately owned — are in finite supply, they must be prioritized and allocated wisely. The question is, who will assess potential locations and rank their value and priority? Should a small, early offshore wind project have first rights to these sites? Many say no. They say these Tier 1 and Tier 2 sites should be held in abeyance and reserved for greater purposes. The question is, will these decisions be made by government mandate or based on free-market economics?
Discussions about connections should also consider system design. Does a hub-and-spoke concept similar to the one being considered for the North Sea — where island “hubs” are connected to surrounding offshore projects by “spokes” of cables — make sense for the U.S.? Or would the nation be better suited for a backbone trunk line built offshore that individual wind farms then could connect to? What about a hybrid combination of both?
Finding answers to these questions is critical because once systems are in place and connection points are used, it will be very difficult to change course later.
2. How would an offshore grid integrate with the onshore grid?
The benefit offshore wind transmission offers to the U.S. grid is almost incalculable. If done properly, it would make it possible to build transmission that would improve reliability and resiliency, reduce congestion and add capacity, while providing economic access for offshore wind. Also notable: It would do all this in places that are out-of-sight to populations that do not want new infrastructure added in their own backyards.
But this added capacity also would impact the onshore grid. To not also plan onshore upgrades when addressing offshore generation and offshore-to-onshore ties would be short-sighted. There is not infinite capacity at each location.
3. Who will be responsible for transmission development?
As generally planned today, the first wave of offshore wind developers building new wind turbines will also construct the interconnecting power lines — called gen-tie lines — and related equipment needed to bring the power onshore. These developers sell the power they generate through state-sponsored offshore wind renewable energy certificate (OREC) programs or other similar vehicles. Over the long-term, this “every man for himself” strategy is likely to be unsustainable.
To encourage further development and improve efficiency, some argue for the construction of an offshore grid that generation developers could tie into. While not restricting offshore wind developers from developing and owning an offshore grid, many assert that other transmission-only entities should also be invited to enter the market. This offshore grid would presumably be funded through some sort of traditional utility rate-based vehicle.
It’s quite possible that the best long-term answer will offer a combination: transmission for certain gen-tie assets could be developed and owned by wind developers, while transmission for certain offshore grid assets could be developed and owned by transmission developers.
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