Page 11: of Marine News Magazine (September 2020)

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Federal tax credits currently provide incentives for By the end of 2019, BOEM had awarded 15 leases project development in the form of two options, the Pro- (and plans further auctions for New York, Hawaii, and duction Tax Credit (PTC) or the Investment Tax Credit California) in accordance with the four stages of BOEM’s (ITC). The PTC, currently $0.009-0.023/kilowatt hour wind authorization process (see graphic below).

(KWh) depending on the year of construction and is be- The ? rst project to successfully navigate the BOEM ing phased out and falls to 0% for projects starting after process is the ? rst stage 12 MW Coastal Virginia Off-

January 1, 2021 (although developers are lobbying for ex- shore Wind (CVOW) pilot by Dominion (with Ørsted tensions of the full PTC). The ITC is currently 12-18% as OWF EPC), the ? rst phase of a three-phase up to 3.2 depending on the year of construction. GW development by Dominion Energy. The two tur-

State level offshore renewable energy credits (OREC) bines, monopiles and transition pieces of the demonstra- that enable non-recourse ? nancing of offshore wind tor left Europe for U.S. waters in April 2020 and con- projects are where a state body buys quantities of elec- struction commenced on arrival 27 miles off the coast tricity from the developer at a set price and on-sells to of Virginia Beach, Va., wrapping up in July. Dominion the utilities. In Maryland, Ørsted’s 120 MW Skipjack has kicked off ocean surveys to map the seabed for with will sell 455,482 OREC’s and Toto Holdings 248 MW a view to start building out 2.6 GW of CVOW from

MarWind 913,945 OREC’s at an above market level- 2024 (for which Ørsted has exclusive partnership devel- ized price of $131.94/megawatt hour (MWh) for 20 opment rights).

years. In New York, it is the New York State Energy The pipeline of projects that have BOEM awarded

Research and Development Authority (NYSERDA) leases (and are going through the steps identi? ed below), that is buying OREC’s from Ørsted’s 816 MW Em- or prototypes and demonstrators amounts to approxi- pire Wind. mately 22 GW over 32 projects.

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