​Would Humboldt offshore wind development reduce costs for ratepayers?

EPIC Staff

Updated May 27, 2026

3 min read

The Schatz Energy Research Center at Cal Poly Humboldt analyzed (1) the cost of offshore wind transmission and found that it could result in substantial savings to ratepayers. As more offshore wind transmission infrastructure is built to accommodate more offshore wind turbines, cost savings increase (Table 14, pg. 80) (1). As demonstrated in Video 1 below, offshore wind’s cheap operational costs reduce dependence on fossil fuel plants due to the cheapest plants to operate being powered on first. This reduces energy costs for ratepayers (9). Schatz Energy Research Center also “found that new transmission infrastructure built to accommodate [offshore wind] development, whether it be onshore or offshore, can also serve other transmission system needs by providing additional routes for power flow. This can lead to lower cost systemwide power flow solutions, potentially resulting in substantial savings to ratepayers” (pg. 7) (1). In essence, the transmission improvements necessary for offshore wind to succeed should make Humboldt Bay’s power more reliable and plentiful, lowering cost.

https://s3.us-east-1.amazonaws.com/UCS_Videos/the-offshore-wind-effect.mp4

Video 1: The Offshore Wind Effect. Union of Concerned Scientists. https://s3.us-east-1.amazonaws.com/UCS_Videos/the-offshore-wind-effect.mp4

According to the California Energy Commission, offshore wind would save ratepayers at least $1 billion (2) in installed clean power capacity. Offshore wind is price-competitive with other forms of energy; the National Resource Energy Laboratory estimates the Levelized Cost of Energy (LCOE) (3) (the average cost of energy over the lifetime of a source of energy) to be in the range of $47–$100 per megawatt hour (MWh) (4) with that price expected to fall as more offshore wind is deployed. The U.S. Department of Energy estimates that the LCOE of offshore wind will fall to $53/MWh (5) by 2035 as the industry matures. This price range places it on par with coal, far cheaper on average than natural gas and community/C&I solar, but more expensive still on average than utility solar and onshore wind as illustrated in Lazard’s 2025 LCOE Analysis. Importantly, according to the US Department of energy, "the popular type-3 turbine technology can supply fundamental stability to the bulk power grid" (10). However, now and in the coming years, it will be important for our communities, Tribal Nations, and local governments to work with Federal and State governments to develop policy solutions that ensure energy savings for our local communities.

U.S. Floating Offshore Wind Levelized Cost of Energy Trends, 2020-2035. Source: Offshore Wind California (6)

There are also potential indirect benefits of offshore wind on the cost of electricity related to climate change. Research indicates (7) that climate impacts could increase the cost of electricity infrastructure expenditures by as much as 25%. This is because climate change, if not avoided through the development of new renewable energy sources and reductions in emissions, would lead to more frequent wildfires and extreme weather events that damage infrastructure and lead to costly repairs. A new report from the Schatz Energy Research Center, published in February 2026, details how North Coast residents will economically benefit from the addition of the OSW project but will bear only a small share of the transmission project's total cost burden. Residents in Humboldt and Del Norte counties can expect a slight increase in electricity costs during the first decade of the project; “Adjusting for inflation at 2.5%, the real average cost drops to $0.28/MWh, or an average increase of $1.68 for the average household per year” (pg. 10) (8). However, the project’s sponsor, Viridon, expects the Transmission Revenue Requirement to decline over time. The figure below illustrates the expected ratepayer impact of the project.

Ratepayer impact over time in 2025 dollars (10-year rolling averages). Source: Schatz Energy Research Center (8)

References

1. Schatz Energy Research Center, Quanta Technology, the National Renewable Energy Laboratory of the U.S. Department of Energy (NREL), et al. (2024, January). Northern California and Southern Oregon Offshore Wind Transmission Study: Volume 1 (Revised). Schatz Energy Research Center. https://schatzcenter.org/pubs/2023-OSW-R2.pdf

2. California Energy Commission. (2021, September 3). 2021 SB 100 Joint Agency Report, Achieving 100 Percent Clean Electricity in California: An Initial Assessment. www.energy.ca.gov/publications/2021/2021-sb-100-joint-agency-report-achieving-100-percent-clean-electricity

3. U.S. Department of Energy Office of Indian Energy. (2015, August). Levelized Cost of Energy (LCOE). www.energy.gov/sites/prod/files/2015/08/f25/LCOE.pdf

4. Shields, M., Beiter, P., and Nunemaker, J. (2022, December). A Systematic Framework for Projecting the Future Cost of Offshore Wind Energy. National Renewable Energy Laboratory. www.nrel.gov/docs/fy23osti/81819.pdf 

5. Gridlab. (2023). Offshore Wind Can Help Keep Electricity Costs Down. 2035 and Beyond: The Report. https://2035report.com/offshorewind/falling-offshore-wind-costs/

6. Offshore Wind California. (2022, November). California Offshore Wind Industry Report. https://static1.squarespace.com/static/5d87dc688ef6cb38a6767f97/t/6376839f7a4e8658b412821c/1668711341831/CA+Offshore+Wind+Industries+Report+17Nov2022.pdf 

7. Fant, C., Boehlert, B., Strzepek, K., et al. (2020, March 15). Climate change impacts and costs to U.S. electricity transmission and distribution infrastructure. Energy, 195. https://doi.org/10.1016/j.energy.2020.116899 

8. Etherton, T., and Jacobson, A. (2026, February). North Coast Offshore Wind Transmission Infrastructure Ratepayer Cost Impact Analysis. Schatz Energy and Research Center. https://schatzcenter.org/pubs/2026-OSW-Ratepayer-Cost-Impacts-SchatzCenter.pdf

9. The Offshore Wind Effect. Union of Concerned Scientists. https://s3.us-east-1.amazonaws.com/UCS_Videos/the-offshore-wind-effect.mp4

10. Wind Turbines Can Stabilize the Grid. (2026, May 22). Energy.Gov.https://www.energy.gov/cmei/systems/articles/wind-turbines-can-stabilize-grid

11. Lazard. (2025). Levelized Cost of Energy Comparison—Version 18.0. https://www.lazard.com/media/5tlbhyla/lazards-lcoeplus-june-2025-_vf.pdf