What Is Holding Back Offshore Wind In The Great Lakes?

Offshore wind power holds great potential for the Great Lakes region, which has over 3,000 miles of coastline and strong, consistent winds. However, development has been slow compared to other regions like the North Sea and East Coast. Currently, the Great Lakes has zero operational offshore wind farms, with the first demonstration project called Icebreaker still awaiting final approval.

Recent years have seen growing interest in harnessing offshore wind energy in the Great Lakes. States like Ohio, Michigan, and New York have set offshore wind goals in the range of 1 GW to 9 GW by 2035. There is also support at the federal level, with the Department of Energy providing funding for initiatives like the Great Lakes Wind Energy Assessment. Several private companies have proposed offshore wind projects in lakes Erie, Michigan, and Ontario.

Despite this potential, many hurdles have prevented large-scale development so far. Uncertainty around costs, technology, permitting, existing industries, and environmental impacts have all contributed to the slow pace of offshore wind in the Great Lakes basin.

High Upfront Costs

Offshore wind farms in the Great Lakes require substantial upfront investments and have significantly higher costs compared to onshore wind projects. Building wind turbines offshore necessitates more complex infrastructures like underwater cables, platforms, and towers to withstand harsh marine environments. According to one analysis, offshore wind power costs an estimated 22 cents per kilowatt hour, while onshore wind only costs around 9 cents (1). The offshore wind installation process is also more complicated and uses specialized equipment like jackup vessels and deepwater construction barges, adding to costs. Estimates suggest offshore wind farms can cost over 3 times more per megawatt of energy capacity versus onshore. With large turbines commonly used in offshore projects, capital costs quickly add up. While offshore wind provides ample wind resources, developers must weigh the tradeoffs of much higher initial price tags.

(1) https://www.instituteforenergyresearch.org/wp-content/uploads/2013/06/Offshore-Wind-Energy-DRS-4.pdf

Permitting Delays

One major challenge facing offshore wind projects in the Great Lakes is the complex regulatory environment for permitting across multiple states and even countries. As described in an Atlantic Council article, “Regulatory uncertainty and delays in permitting have led to increased project costs and delays” (https://www.atlanticcouncil.org/blogs/energysource/us-offshore-winds-growing-pains-permitting-and-cost-inflation/). For projects spanning international borders like the Great Lakes, permitting involves both U.S. and Canadian federal regulators, as well as state/provincial and even local authorities. This fragmented process often lacks coordination and can lead to long delays, increasing costs and uncertainty for developers.

A key challenge is that there is no consolidated regulatory framework or “one-stop shop” for permitting offshore wind in the Great Lakes. Developers must navigate a complex web of regulations and agencies at multiple levels of government across two countries. Streamlining and standardizing permitting could help accelerate offshore wind growth, but currently the complex regulatory environment poses a major impediment.

Existing Industries

Offshore wind development has the potential to conflict with existing marine industries like commercial fishing, recreational fishing, shipping, and recreation. Some concerns around offshore wind’s impact on these industries include loss of access to traditional fishing grounds, navigational hazards, difficulties traversing wind farms, interference with radar, and diminished views from shore [1].

However, offshore wind farms may also create new habitat and attract more fish, benefiting recreational anglers [2]. With proper planning and collaboration, negative impacts can be minimized. For example, configuring turbine layouts to allow vessels to transit and fish within farms. Overall, more research is needed on offshore wind’s long-term effects on marine businesses.

Environmental Concerns

Offshore wind farms can have both positive and negative impacts on marine ecosystems and wildlife. One of the main concerns is the potential impact on birds and bats. Wind turbines can cause direct mortality from collisions as well as habitat loss and disturbances (Galparsoro, 2022). However, some studies suggest offshore wind farms may also provide new habitats for some species like fish and mussels (UMCES).

There are also concerns about the impacts on marine mammals like whales and dolphins from noise pollution during the construction and operation of wind farms. Vessel traffic and pile driving can disrupt migration routes and cause hearing loss in sensitive species (UCSUSA). Careful siting and mitigation strategies can help reduce these impacts.

In terms of water quality, increased sedimentation and pollution from construction activities can temporarily impact local habitats. Proper monitoring and prevention of spills from vessels can limit water contamination. Overall, the environmental impacts of offshore wind must be carefully evaluated and addressed through siting, technology choices, and mitigation strategies.

Public Opposition

One key factor holding back offshore wind farms in the Great Lakes is public opposition from local communities. According to a 2023 study published in PNAS, wealthy and white communities are significantly more likely to oppose wind projects. The study found that for every 1% increase in a community’s share of white population or share of population making over $100,000 annually, the probability of wind opposition increased by 8.4% and 11.4% respectively (study link). This public opposition stems largely from concerns about views being obstructed, decreases in property values, and noise pollution from turbines.

Residents often express not wanting wind turbines ruining their scenic views or horizons, especially those living along coastlines or lakeshores. There are also concerns from some homeowners that nearby wind farms will decrease their property values. Though research on the actual impacts on property values have been mixed, these concerns persist in communities near proposed projects. Additionally, people cite apprehensions about audible turbine noise and infrasound, despite little scientific evidence showing harmful effects from modern wind turbines.

Technological Limitations

The Great Lakes present several technological challenges for offshore wind, especially compared to ocean wind farms. The lakes experience harsh weather, including high winds, waves, ice, and freezing temperatures in the winter. According to an NREL report, “Great Lakes Wind Energy Challenges and Opportunities Assessment,” the annual freshwater surface ice introduces new difficulties, especially for floating turbines which are still an emerging technology (https://www.nrel.gov/docs/fy23osti/84605.pdf).

The lakebed depth and distance from shore also present engineering obstacles. Large areas of the Great Lakes are quite deep, over 200 feet, so fixed-bottom offshore turbines may not be feasible in many locations. But floating turbines require dynamic mooring systems and anchors to withstand severe storms (https://www.nrel.gov/news/program/2023/exploring-offshore-wind-energy-opportunities-in-the-great-lakes.html). Transporting and installing massive wind turbines far from shore adds to the complexity and expense.

Overall, the harsh conditions and logistical challenges of the Great Lakes environment demand new designs and methods to make offshore wind technically and economically viable.

Limited Experience

One factor limiting the growth of offshore wind in the Great Lakes is the lack of experience and precedent with projects in the region. As of 2023, there has been just one small pilot offshore wind project installed in the Great Lakes so far – the 20 MW Icebreaker Wind project in Lake Erie near Cleveland, which began operating in 2022.

This pilot project is quite small compared to the multi-gigawatt scale envisioned for future offshore wind farms in the Great Lakes. Building massive offshore wind projects is still a new endeavor in the lakes, with many uncertainties about permitting, construction, operation, and maintenance given the unique environmental conditions and rules in the region.

With Icebreaker Wind being the first project of its kind there, it will take time to gather performance data, operational experience, and community feedback to inform best practices for expanding offshore wind. There is a learning curve ahead as companies and agencies gain know-how with permitting and installing turbines in the lakes. The limited track record contributes to the slower pace of offshore wind growth so far.

However, Icebreaker Wind and future pilot projects will build crucial expertise, experience, and confidence for scaling up offshore wind in the Great Lakes to tap into its immense potential.

Policy Support

One key challenge for offshore wind in the Great Lakes is the lack of strong policy incentives compared to coastal regions. Currently, many coastal states have implemented offshore wind mandates and procurement targets that spur project development. For example, northeast states like New York, New Jersey, and Massachusetts have set goals for thousands of megawatts of offshore wind capacity by 2035. In contrast, Great Lakes states like Ohio, Michigan, and Wisconsin lack defined offshore wind targets and incentives at the state level [1]. Without clear policy signals and momentum, offshore wind developers have focused their efforts on coastal projects where market conditions are more favorable.

Additionally, federal incentives like the investment tax credit have been maximized for land-based wind farms in the Great Lakes region already. Expanding incentives for offshore wind could help spur investment and development in the Great Lakes [2]. Stronger policy frameworks that account for the unique challenges and timeline for Great Lakes offshore wind will likely be needed to catalyze the industry there.

Conclusion

Although offshore wind has immense potential in the Great Lakes region, its growth faces several key obstacles. High upfront project costs, lengthy permitting processes, potential conflicts with existing maritime industries, and public concerns about environmental and aesthetic impacts have all slowed offshore wind development. Technological limitations for wind turbines in freshwater environments and the region’s lack of experience with offshore wind also pose challenges.

However, supportive state and federal policies aimed at reducing costs, streamlining siting and permitting, investing in infrastructure, and promoting research could help overcome these barriers. With the right regulatory environment and public engagement, offshore wind can still thrive in the Great Lakes, delivering clean energy, local investment, and high-quality jobs to the region.

The outlook for offshore wind in the Great Lakes depends on stakeholders working together to address the key obstacles identified. With collaboration, innovation and strategic policy support, the vast offshore wind potential of the region can be realized.