US falls 30 GW short of Biden's offshore wind goal

10 Jul 2024 CW Team

The United States is projected to significantly undershoot President Joe Biden's 2030 offshore wind target, according to an analysis by the American Clean Power Association (ACP). By 2030, the ACP estimates that there will be approximately 14 gigawatts (GW) of offshore wind capacity along U.S. coastlines, falling short of the 30 GW goal set by the Biden administration in 2021 to boost the domestic energy industry.

Offshore wind plays a pivotal role in Biden's climate strategy, aimed at creating jobs and revitalising the economy. However, challenges such as soaring materials costs, high interest rates, and supply chain disruptions have prompted several offshore wind companies to cancel or renegotiate power contracts for planned U.S. projects over the past year. These hurdles have cast doubt on the industry's ability to meet the administration's timeline.

As of June 30, current offshore wind capacity in the U.S. stands at just 174 megawatts (MW), a significant increase from 42 MW a year ago, according to the ACP. The industry has over 12 GW in advanced development or under construction, indicating ongoing efforts to ramp up capacity.

In contrast, China leads the global market with nearly 38 GW of offshore wind capacity already in operation.

The ACP's market report suggests that the U.S. could achieve the 30 GW target by 2033 and nearly 40 GW by 2035, highlighting a rapid catch-up in the years following 2030. The industry forecasts investments of $65 billion in projects by 2030, potentially generating 56,000 jobs.

(Source: ET)

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