The United States is experiencing rapid electricity demand growth driven by data centers, manufacturing, and electrification. Meeting this growth reliably and affordably will depend on how quickly new generation resources can be interconnected and how effectively different technologies complement one another.
In this white paper, the authors assess the potential role of offshore wind (OSW) in addressing emerging reliability challenges under these conditions. The analysis finds that, from a resource adequacy perspective, OSW can provide meaningful capacity value and complementary performance to other generation sources, particularly during winter and nighttime stress periods near coastal load centers. However, the authors also note that OSW faces development challenges, including cost pressures, supply-chain constraints, permitting uncertainty, and declining effective load carrying capability (ELCC) values as more capacity is added to the system.
Across US markets, each major generation technology faces distinct constraints. Natural gas additions are limited by pipeline capacity and permitting timelines; solar and onshore wind require substantial land and transmission expansion; and storage resources depend on sufficient generation to recharge during multi-day stress events. In this context, the analysis finds that OSW can contribute to fuel and locational diversity, particularly in coastal and transmission-constrained regions where adding new onshore generation is difficult. By delivering power directly into major load centers, OSW can help reduce dependence on constrained natural gas systems and imported fuels, while complementing ongoing investments in storage, transmission, and emerging clean dispatchable technologies.
The authors find that OSW’s potential contribution to resource adequacy is material but note that decisions to add new resources must be balanced with other factors – such as cost, permitting risks, and policy goals. The authors plan to explore these considerations further in a forthcoming study focused on the impact of OSW in ISO-NE and NYISO.
To read the full white paper on the contribution of offshore wind to grid reliability & resource adequacy, click here.
