US Offshore Wind to Hit 14 GW by 2030, Missing President Biden’s 30 GW Target – ACP Report

July 10, 2024, by Adnan Memija

The American Clean Power Association (ACP) has projected there will be approximately 14 GW of offshore wind capacity deployed by 2030, falling short of the 30 GW goal set by the Biden Administration in 2021. ACP’s recent report also outlines USD 65 billion (approximately EUR 60 billion) in investments and 56,000 jobs in the US offshore wind sector by 2030.

According to ACP, market analysts forecast that there will be 14 GW of offshore wind capacity deployed by 2030, 30 GW by 2033, and 40 GW online by 2035. There are currently 12 GW of projects with active offtake agreements, including 4 GW under active construction at Vineyard Wind, Revolution Wind, and Coastal Virginia Offshore Wind, said ACP in its 2024 Offshore Wind Market Report.

“After the successful start-up of the 132 MW South Fork wind farm earlier this year, and with 136 MW operational at Vineyard Wind, offshore wind is gaining momentum with three projects under construction and thirty-seven more in development,” said Frank Macchiarola, ACP Chief Policy Officer.

*Source: American Clean Power Association*

In 2021, the Biden Administration has set a goal of reaching 30 GW of offshore wind capacity by 2030.

However, supply chain issues, increasing material costs, and other factors have led several developers in 2023 to cancel or renegotiate power purchase agreements for planned offshore wind projects. One of them, Danish renewable energy developer Ørsted, ceased the development of the Ocean Wind 1 and Ocean Wind 2 offshore wind projects in New Jersey, citing supply chain issues and rising interest rates as some of the causes of discontinuation.

The Offshore Wind Market Report underscores the role that states are playing in driving the US offshore wind development. State solicitations could award procurement contracts for an additional 8,800 – 12,200 MW of offshore wind projects in the second half of 2024, all located off the Northeast coast.

States with ongoing or upcoming solicitations include New Jersey, New York, Massachusetts, Rhode Island, and Connecticut.

The report notes that while contract cancellations and rebidding impacted offshore wind development in 2023, states have been quick to open new solicitations and streamline processes.

The Bureau of Ocean Energy Management (BOEM) plans to hold four lease sales in the second half of 2024 in the Central Atlantic, Oregon, the Gulf of Maine, and a second Gulf of Mexico lease sale, opening nearly 1.9 million acres for potential 20 GW of future clean power generation capacity.

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BOEM has issued a Record of Decision for nine lease areas involving twelve projects as of 5 July 2024, allowing offshore wind projects to proceed with construction, according to ACP.

Additionally, seven other projects have submitted Construction and Operations Plans (COP), with five receiving a draft Environmental Impact Statement (EIS) allowing them to move further along with the permitting process, ACP stated.

Offshore Wind Supply Chain Investments Hit USD 3 Billion in 2023

By 2030, ACP predicts $65 billion in investments and the addition of 56,000 jobs in the offshore wind industry.

The report also outlines the economic impact of offshore wind on domestic shipbuilding, port infrastructure, and other supply chain activities.

There are more than 40 new vessels currently on order or under construction, said ACP. Investments include 28 crew transfer vessels (CTVs), seven service operation vessels (SOVs), two different types of installation vessels, and two tugs and two barges to support offshore wind operations and maintenance.

According to ACP, the industry committed a record USD 3 billion of supply chain investment in 2023, with total infrastructure investment announcements now exceeding USD 9 billion.