Maryland Commission Approves 1.6 Gigawatts of Offshore Wind Projects

The Maryland Public Service Commission on Dec. 17 awarded offshore wind renewable energy credits to two developers, US Wind Inc and Skipjack Offshore Energy LCC. The developers have planned to build more than 1,600 megawatts of energy off the coast of Maryland. The new proposed projects are on top of the 368 megawatts of offshore wind already being developed by the two companies.

The approval is subject to certain conditions, including requirements that the developers create a minimum of 10,324 direct jobs and contribute $6 million each to the Maryland Offshore Wind Business Development Fund. The commission awarded US Wind 808.5 megawatts in offshore wind credits at a levelized price of $54.17 per megawatt-hour, and Skipjack megawatts at $71.61/MWh. The selection completes Maryland’s second offshore wind solicitation, bringing the total capacity to nearly 2 gigawatts.

The development of offshore wind facilities is in line with the state’s economic and renewable energy goals, since Maryland’s renewable portfolio standards, which mandates that electricity providers meet at least 2.5 percent of their supply from offshore wind generation. The 2019 Clean Energy Jobs Act, which raised Maryland’s overall renewable portfolio standard to 50 percent by 2030, also increased the offshore wind carve-out to 10 percent of in-state electricity sales. The law directed Maryland to procure at least 1,200 megawatts of capacity through new rounds of offshore wind procurement.

The offshore wind development is in sync with various other projects across the state, which aims to provide Marylanders with affordable, reliable, and cleaner energy. The offshore wind development projects are projected to be operational before the end of 2026, subject to approval by the Bureau of Ocean Energy Management.