California Offshore Wind Economic Impact and Development

Analyzing workforce and port investments to support California's offshore wind goals

With construction underway on Vineyard Wind—the first major offshore wind farm on the East Coast—California is increasingly focused on developing its own offshore wind resources. Over the past year, Greene Economics collaborated with industry experts to assess the feasibility and requirements for offshore wind development in California.

To support the state’s ambitious targets under AB 525—which calls for 25,000 megawatts (MW) of offshore wind energy by 2045—Greene Economics partnered with Catalyst Environmental Solutions, a firm specializing in environmental assessments. Commissioned by the California Energy Commission (CEC), we evaluated the economic benefits of building one or more seaports, developing a trained workforce, and establishing a new training center.

Our research underscores the critical role of workforce development and supply chain investment in scaling offshore wind. Greene Economics focused specifically on economic impacts, especially labor market effects and opportunities to manufacture OSW components in California.

"To create this offshore wind industry, everything must happen right here in California—from training the workforce to manufacturing OSW components and establishing the necessary infrastructure,” says Jeri Sawyer, Principal Economist at Greene Economics.

"You’ve probably seen the wind turbine blades on the highway—those are for onshore projects. Offshore turbines are even bigger! You can’t transport them; they need to be built locally.”

Increasing turbine heights and blade lengths over time. Source: EERE

We developed a survey and conducted interviews with industry leaders and experts across California and the nation. These insights shaped recommendations on training and supply chain needs in our final report.

West Coast Offshore Wind Science Consortium

The recent launch of the West Coast Offshore Wind Science Consortium marks a major step in advancing offshore wind energy research and development. This consortium brings together universities, industry, and government agencies to help California prepare for offshore wind projects.

By focusing on the environmental impacts and technological advancements, the consortium supports California’s ambitious offshore wind targets.

“We hope that our work supports this consortium by providing essential economic analysis that informs stakeholders about the requirements, feasibility, and impact of developing offshore wind in California,” Jeri adds.

Recent Approval of California Offshore Wind Plan

In a crucial development, California’s offshore wind plan has been approved, paving the way for the state to expand its renewable energy capacity significantly. This plan not only supports the goal of generating 25,000 MW by 2045 but also establishes a framework for sustainable development that balances economic growth with environmental stewardship. The approval underscores California's commitment to becoming a leader in the renewable energy sector and provides a pathway for future offshore wind projects.

Report Structure

Greene Economics evaluated the potential economic impacts of offshore wind development in California, focusing on workforce and supply chain strategies. 

The report consists of two parts:

• Literature Review: Assesses California’s current capacity to support OSW, identifies component parts best suited for in-state manufacturing, and reviews policy tools used by other states or countries that could help attract OSW manufacturers.
  

• Economic Impact Analysis: Uses IMPLAN software to analyze economic impacts of investing in port development, training centers, and workforce development across California and four counties. Results include direct, indirect, and induced jobs, labor income, GDP, and tax revenues—with and without policy support encouraging local suppliers and labor.

“As California explores offshore wind, it’s essential to understand the broader economic ripple effects. Community benefits can be significant—if we invest wisely in workforce training and local supply chains,” says Jeri.

The graphic below shows how the impacts of offshore wind development ripple through the economy.

The economic ripple effect measured by IMPLAN input-output model.

As we look ahead, the potential for offshore wind development in California is not just a renewable energy opportunity but also a significant economic driver. By investing in workforce training and infrastructure, California can lead the way in sustainable energy while creating jobs and stimulating local economies.

Our findings aim to help policymakers make informed decisions that benefit California communities now and in the long term. For more information, see California Energy Commission's OSW Fact Sheet [PDF].

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Interested in how offshore wind or other renewable energy projects could benefit your community or organization? Want to collaborate on feasibility studies or economic impact assessments? Contact us today for a free consultation.