Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 297
Offshore Wind Worldwide 2023
1. THE CURRENT STATE AND
FUTURE OF OFFSHORE
WIND PROJECTS
In the United States, development of offshore wind energy is in full swing. Federal
leases have been issued offshore in the
Atlantic and Pacific Oceans and have been
proposed for the Gulf of Mexico.1 Additional
lease sales are anticipated in these regions,
including Maine. Developers on the Atlantic Coast are in the midst of federal and
state permitting reviews, with construction
already underway for some. 2 Carbon-free
electricity near large, coastal population
centers and the associated jobs and economic development represent the significant
attractions of offshore wind.
The offshore wind industry has been strongly bolstered by the recently enacted Inflation
Reduction Act that provides important
subsidies and tax credits for renewable energy projects.
Concerns about the visual impacts of the
large wind turbines on coastal viewsheds,
the potential impairment of commercial
fisheries, and impacts on marine mammals
and shipping lanes are the countervailing
concerns. On balance, U.S. offshore wind
development is full steam ahead.
The majority of offshore wind leasing
activity is in the relatively shallow federal
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waters in the Outer Continental Shelf (OCS)
of the Atlantic Ocean, but leases have been
awarded in the deeper waters of the Pacific
continental shelf. The OCS is regulated by
the U.S. Department of the Interior (DOI),
and DOI’s Bureau of Ocean Energy Management (BOEM) is the agency authorized to issue leases for offshore wind developments.
BOEM has thus far issued 30 commercial
leases for offshore wind development.
Technology innovation in this field is promising, and there is increased market interest,
especially at the state level. Coastal states,
from New England to California to New York
and Maryland, have committed to increase offshore wind capacity in the coming
decades, with some states creating specific
requirements for offshore wind purchases and others creating specific offshore
wind incentive payments. 3 In response, the
competition for offshore leases has grown
markedly. By way of example, 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. A report by the Department of
Energy (DOE) estimates that offshore wind
capacity could increase to as much as 32
GW by 2030. 4
Litigation against offshore wind projects has
commenced, which is expected in the U.S. as
most major energy projects authorized by
federal agencies are challenged in court by
1 Renewable Leases & Planning Areas (arcgis.com).
2 Lease and Grant Information | Bureau of Ocean Energy Management (boem.gov).
3 Offshore Wind Energy Market Assessment | Wind Research | NREL.
4 Offshore Wind Market Report: 2022 Edition (energy.gov).
