Here is a brief PESTEL analyses that I put together for one of my MBA classes. This is an area that I have some personal interest and have been trying to follow but I am not professionally engage so I would love to hear from the many of the Offshore Winds Experts and from self studiers as my self that are part of my LinkedIn network. Please feel free to comments or send me a personal message.

1. Offshore Wind
in USA
Is now the right time?

2. What is offshore wind energy?

3. The beginning
• Wind inshore started in Europe, in the 80s and the big expansion
started in the late 90’s, early 2000’s. Offshore wind also started in
Europe roughly about a decade ago.
• Renewable Energies have been for many years supported and sponsored by EU and other
European countries.
• European Community have decided to do an Energy change from fossil to renewable.
• Difference on energy cost traditional fossil vs renewables has been highly subsidized.
• Tax break, low interest loans and some companies even where
and still are party own by different government in order to raise
the necessary capital to finance major projects and wind parks.

4. Political – States vs Federal
• 2015 Obama’s administration created the Clean Power Plan (CPP) in co-operation with the
Environmental Protection Agency (EPA). This initiative the aim of reducing CO2 emissions by
increasing the renewable source of energies.
• The EPA would set and control the emission goals but would be up to each state to
implement.
• After 2017 with President Donald Trump this initiative was basically forgotten has was no
support from President Trump’s administration.
• However, the Presidency energy policies have limited impact on the states policies.
• California for example decided to continue working on policies for the reduction of CO2
emission based on Obama’s strategy .
• In 2015, California passed the Clean Energy and Pollution Reduction Act, also known as SB-
350,
• 50% of the states’ energy must come from renewable energy by 2030.

5. Political – States vs Federal
• Other states such as New Jersey, Rhode Island, Massachusetts and others are already
supporting offshore wind energy projects by signing new laws specific to offshore wind energy.
• With President Biden winning the 2020 election , is expected that the initiatives such as the
CPP are reinitiated.
• Clear Different energy strategy between Democrats and Republicans.

6. Economical - Cost
• Cost of energy by state ($/kWh)

7. Economical - Cost
• Cost of energy by Generation Technology ($/MWh)

8. Economical - Cost
• Historical cost of energy for wind inshore ($/MWh)

9. Economical - Employment
• Will create many direct and indirect jobs, from the actual installation of the wind turbines,
cable laying, connection to the power grid, manufacturing of offshore Jones Act complaint
installation vessels and other support vessels, vessels crews, turbines manufacturing, 3rd party
companies and consultants, etc

10. Economical - Employment
• However, is also expected that some jobs will be lost as old power plants will need to be
decommissioned.
• Is extremely important to choose the right timing to install the wind offshore farms and
decommission old power plants, and to have it by phases where the older power plants that
are about to achieve their life cycle can be decommission first and avoid further
modernization/life extension investments.

11. Social
• Like many other things, Renewable energies social impact is basically related with public
acceptance and Offshore Wind is no exemption.
• Two surveys carried out by SolarCity and Navigate Research carried out in 2015 and 2013
respectively concluded that Solar and Wind Energy are the most favorable source if renewable
energies.

12. Technology
• The Wind offshore technology is benefiting from technologies of other industries such as the
already stablish wind in shore and as well the Oil and Gas industry.
• Turbines energy production capacity has been growing exponentially

13. Technology
• The major challenges hat is that they are not a continuous source of energy, and the wind
availability/performance can’t be control creating challenges on feeding power into the grid.
• Potential solutions been considered:
• Store this energy on batteries that then would be injected it on the grid when needed.
• Production of H2 that then is used as fuel for H2 powered plants
• Production of compressed air that then can be use on Turbines powered plants
• Another challenge that US has been and will be facing is supply chain.

14. Environmental
• Being and renewable source of energy there it is the evident the impact on CO2 reduction,
however wind energy still need consideration on potential negative impacts in the
environment.
• No or little risk of water pollution (oil spills).
• Some of the factors point out by the wind critics are: visual impact, noise and affecting the
bird’s natural habitat. Although this may be truth when it comes with wind in-shore, most of
those impacts will be substantially reduce when it comes to wind offshore.
• Wind offshore structure’s will be a strange body in the maritime ecosystems, there fore their
impact on the different maritime ecosystems need to be taking into consideration.

15. Legal
• In US this industry is still new - there is no clear regulatory environment yet in this
emerging industry.
• US institutions are familiar with big energy projects from the oil & gas industry that
may facilitate the development of new legal regulations
• Regulations jurisdiction depend on where the wind farm is located. The state’s
jurisdiction applies to the state waters which extend to 3 nautical miles from the shore.
From there the federal waters begin, extending to 200 nautical miles.
• Wind developers can choose to build wind farms in Federal waters where the
permitting process is a lot simpler.
• Even though an offshore wind farm may be situated in federal waters, the state can
still claim partial jurisdiction because of the export cable that connects the offshore wind
park to the onshore grid as it runs through state waters.
• Another consideration is that the wind parks may end up being selected on areas
where other industries already operate, like the fishing industry, that also have state
licenses.

16. Recommendations
• More comprehensive Energy federal strategy and agreement
between Democrats and republicans.
• Detail planning on the energy transition (State level).
• Re-think Jones act.
• Support R&D on wind offshore industry and other booming
technologies such as the batteries industry.
• Support supply chain.
• Cooperation between the different regulatory (permits) state and
federal organizations.