Offshore Wind Worldwide Regulatory Framework in Selected Countries 5th Edition 2024 - Flipbook - Page 353
Offshore Wind Worldwide 2024
I. The Current State and Future
of Offshore Wind Projects
Although onshore wind has been part of
the landscape for decades, offshore wind in
the United States is a burgeoning industry
that started strong, is experiencing growing pains, but remains poised to take full
advantage of the opportunities that literally
surround the country.
Carbon-free electricity in large, coastal
population centers near the Atlantic, Pacific,
and Gulf of Mexico, and the associated jobs
and economic development are significant
attractions of offshore wind in the U.S. A
report by the Department of Energy (DOE)
estimates that offshore wind capacity could
be as much as 32 GW by 2030.1
Important recent legislative vehicles supporting clean energy investment in the United
States have sweetened the attraction. The
Bipartisan Infrastructure Investment and
Jobs Act of 2021 allocated around USD 550
billion for clean energy and infrastructure,
and the US Inflation Reduction Act (IRA) of
2022 provides an estimated USD 370 billion
in funding for subsidies and tax credits on
renewable energy projects, including offshore wind.
That notwithstanding, the U.S. offshore
market has experienced some recent headwinds.
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For example, despite the fact that six leases
in the NY Bight area (from the south shore
of Long Island to the continental shelf) were
auctioned for the staggering amount of $4.7
billion, recently the government received no
bidders in two of three lease auctions for the
Gulf of Mexico, and the third Gulf auction
only had two bidders. 2
Further, recent inflation and supply chain
issues after the pandemic appear to have
hindered some of the earlier slated projects.
In late 2023, developer Orsted canceled the
2,400-MW Ocean Wind 1 and 2 projects in
New Jersey, citing rising interest rates, high
inflation, and supply chain delays.
Orsted also withdrew from commitments to
the Maryland Public Service Commission to
build the Skipjack 1 and 2 projects, totaling
966 MW, but is still continuing with advanced development and permitting. These
projects may all be resuscitated, however,
when markets settle and a workable financial model can be achieved.
Finally, just a month after it started delivering power in the summer of 2024, the
Vinyard Wind project off Massachusetts—
the first utility-scale offshore project under
construction in the U.S.—hit a snag when
one (albeit massive) blade from one wind
turbine failed and dropped into the ocean.
Foam and fiberglass including “micro-fibers” from the blade washed up on the
beach of nearby Nantucket island causing
1 Offshore Wind Market Report: 2022 Edition (energy.gov).
2 Blow to Biden as Offshore Wind Auction in Gulf of Mexico Fails to Stir Interest, The Guardian, Aug. 23, 2023.
