On May 11th, the Maryland Public Service Commission approved two offshore wind projects, totaling 380 megawatts of wind capacity. Development of these offshore wind facilities is expected to create almost 9,700 new jobs. In the introduction to the order approving the projects, the Commission explains the significant environmental and economic benefits of offshore wind, positioning Maryland “to become a national leader in the burgeoning offshore wind industry.” The Commission’s order even quotes Governor Larry Hogan’s proclamation from his 2017 State of the Union Address: “Maryland is truly Open for Business.” The two developers approved to move forward with offshore wind development are U.S. Wind, Inc., and Skipjack Offshore Energy, LLC.
The Commission’s order establishes the Offshore Wind Renewable Energy Credit (OREC) price – a levelized price of $131.93 (in 2012 dollars), subject to a 1.0% price escalator. Starting in 2021, Maryland will include ORECs in its Renewable Portfolio Standard (RPS). This means that a portion of every unit of electricity purchased in Maryland will be backed by offshore wind. The Commission’s order (at Table 2) specifies that the offshore wind component of the Maryland RPS will begin at 1.37% in 2021, decreasing to 0.60% in 2042.
This is an exciting development for the renewable energy industry in our region and we look forward to continued and expanding opportunities for companies competing in the energy industry and the customers they serve.