U.S. Offshore Wind Industry Makes Progress in Q3 Despite Economic Woes - 2023

Wind Energy / Economics

The PEI reported in late October 2023 that the U.S. offshore wind industry continued its forward progress despite severe financial challenges in the third quarter of 2023 which was highlighted by construction progress at the nation's first two commercial-scale projects and critical permitting milestones at other projects.

The U.S. offshore wind industry made progress in Q3 of 2023 despite financial challenges. The pipeline of projects permitted for construction tripled in the third quarter, up to 2.7 GW. More approvals are expected to come in the fourth quarter.   The U.S. offshore wind pipeline grew 14% over the previous year, with 40,083 MW now in various stages of development. This includes two fully operational projects totaling 42 MW.

The U.S. offshore wind industry faces issues including: 

•  Higher financing costs,
• Inflation,
• Supply-Chain bottlenecks,
• Transmission-Cost uncertainty,
• Critical mineral supply, and 
• NIMBY opposition.

However, the US offshore wind industry is poised for a breakout. New federal government support and economic incentives indicate that offshore wind is a promising source of renewable energy for the nation. The offshore wind industry has been grappling with uncertainties recently, with multiple power purchase agreements (PPAs) coming to an end, and developers and utilities backing out of projects. [All this combined with the rise of the SMRs that will be appearing in the U.S. and throughout the world within the next 5 years or so. The SMR industry is being careful to make the roll-out effective].

Primary Article: https://www.powerengineeringint.com/renewables/wind/us-offshore-wind-industry-makes-progress-in-q3-despite-woes/