SLO Chamber of Commerce: Offshore wind helps preserve our future | Opinion
In August, the California Public Utilities Commission (CPUC) made a landmark determination to procure up to 7.6 gigawatts of offshore wind capacity by the year 2035. This is good news for California and for San Luis Obispo County.
Readers may wonder why the San Luis Obispo Chamber of Commerce is supportive of — or even interested in — the decisions that the CPUC is making on offshore wind.
Our organization has been dedicated to serving San Luis Obispo County for 120 years, focused on enhancing the economic prosperity and community well-being of our region. We aim to create the best place for people to live and work — an environment where families can grow, people can follow their dreams and entrepreneurs can thrive. That’s exactly why we are closely following the opportunities that come with bringing the burgeoning offshore wind industry to the Central Coast.
The fact is, we are facing a climate crisis that Californians know all too well. These last few months, California – including some areas along the Central Coast — have experienced record heat waves. Fires in our region used to be few and far between, but now, interactive fire maps are the norm. And in the winter, flood advisories are standard fare.
With such high highs and low lows, California needs resilient power sources that are reliable, sustainable and will help guide us into the future. Offshore wind can be that.
According to the Department of Energy, the United States has a vast and largely untapped offshore wind energy resource. In fact, the areas off U.S. coasts possess an offshore wind potential nearly double the nation’s current electricity use.
In 2022, the California Energy Commission released a report outlining the state’s offshore wind goals, which aim to provide electricity to 25 million homes by 2045. To achieve these goals, consideration of offshore wind projects along the Central Coast is essential.
In late 2022, three offshore wind developers — Invenergy, Equinor and Golden State Wind — were each awarded a floating offshore wind lease area by the federal Bureau of Ocean Energy Management following a competitive auction.
To keep these projects moving forward and to help California meet its renewable energy goals, it is essential to have certainty around power procurement and power offtake. In simpler terms, offshore wind procurement is the process of ensuring that California has a predictable system and schedule set up to buy power, which enables and incentivizes offshore wind companies and suppliers to invest in the necessary equipment and services to build and operate offshore wind projects.
Therein lies the historic decision from the CPUC last month to procure up to 7.6 gigawatts of offshore wind capacity, which should be lauded. The decision ensures there will be the necessary system in place for Central Coast offshore wind leaseholders to develop projects. Adding offshore wind to the state’s energy portfolio has the potential to be invaluable when we are faced with extreme heat and electricity shortages, so our communities have another source of clean power to rely on.
The San Luis Obispo Chamber of Commerce’s mission is to connect the business community with ideas, inspiration and each other, bringing people together to shape the place we love. While at first blush it may not seem that the CPUC’s recent decision impacts that mission directly, it absolutely does.
When we consider the possibilities of how best to preserve our future, having the Central Coast be a leader in offshore wind for a renewable future could surely be at the top of the list.
Jim Dantona is president and CEO of the San Luis Obispo Chamber of Commerce.