Source: California Energy Commission; American Clean Power Association.
Analysis by Beacon Economics
Highlight
- In 2022, cumulative installed wind capacity totaled 6,118 megawatts (MW) in California, a 1.1 percent increase from 2021 (6,046 MW).145 On the other hand, the rest of the U.S. added 8,511 MW of wind capacity in 2020, reaching a total U.S. cumulative excluding California capacity of 144,132 MW. Total wind capacity has remained largely stagnant in California since 2012, but it continues to expand in the rest of U.S. The latest CPUC Integrated Resource Plan (IRP) preferred system plan uses updated in-state onshore wind costs (including IRA incentives) and resource estimates and projects the buildout of a few more GW of in-state onshore wind. With lower offshore wind costs, offshore wind replaces a mix of geothermal, out-of-state wind, solar, and batteries in the portfolio and reduces the total system cost.146
145 Utility-scale wind capacity includes installations of wind turbines larger than 100-kW for the purpose of the AWEA U.S. Wind Industry Quarterly Market Reports. Annual capacity additions and cumulative capacity may not always add up due to decommissioned, uprated and repowered wind turbines. Wind capacity data for each year is continuously updated as information changes.
146 2022-2023 IRP Cycle Events and Materials. CPUC. Available at: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-power-procurement/long-term-procurement-planning/
Opportunity
- On December 6, 2022, the Bureau of Ocean Energy Management held the first U.S. offshore wind lease sale off of the California coast. This was the first offshore wind lease sale on the west coast, and the first lease sale aimed at developing floating offshore wind turbines. The resulting leases total 373,000 acres off the coast of Morro Bay and Humboldt County. The leases have the potential for 4,500 megawatts (MW) of new offshore wind capacity, enough generation to power 1.5 million homes.147 These leases are the first step towards the California Energy Commission’s goal of 2,000-5,000 MW installed wind capacity by 2030 and 25,000 MW by 2045.148
147 American Clean Power Association. California Floating Offshore Wind. December 11, 2022. Accessed August 15, 2023. Available at: https://cleanpower.org/wp-content/uploads/2022/12/ACP_CA-Floating-Offshore-Wind_221206.pdf
148 California Energy Commission. California Continues to Advance Offshore Wind with New Report Detailing Options for Permitting Projects. May 10, 2023. Accessed August 15, 2023.Available at: https://www.energy.ca.gov/news/2023-05/california-continues-advance-offshore-wind-new-report-detailing-options
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