Oceantic Network, a leading trade body in the renewable energy sector, anticipates that during 2024, US states could allocate as much as 1550 megawatts (MW) of new power offtake, with 60% of this capacity aimed at replenishing lost contracts.
According to the 2024 US Offshore Wind Market Report released by the organization, the approved capacity for construction is projected to continue its upward trajectory, reaching at least 14.6 gigawatts (GW) by the end of the year.
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The report also predicts the possibility of three or more new lease auctions, as the Bureau of Ocean Energy Management (BOEM) explores new offshore areas in the Gulf of Maine, Central Atlantic, Oregon Coast, and the Gulf of Mexico.
“With the US offshore wind market stabilizing and showing signs of growth, the next 12 months hold significant promise for supply chain development, increased investment, and revitalized shipbuilding activity,” highlighted the report.
In a notable surge, offshore wind capacity approved for construction by the federal government skyrocketed by 800% in 2023, climbing from 930 MW to 8.3 GW.
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However, the industry faced challenges as developers terminated 51% of power contracts established prior to 2023, while seeking financial support for an additional 24%.
Despite these setbacks, 2023 witnessed pivotal announcements regarding new manufacturing facilities, upgrades to port infrastructure, and the development of offshore wind vessels.
Throughout 2023, states actively collaborated to establish interstate cooperation frameworks aimed at stabilizing regional markets, reducing project costs, and maximizing economic benefits.
Commenting on the industry's trajectory, Liz Burdock, founder and CEO of Oceantic Network, remarked, “Global economic challenges posed obstacles in 2023, casting uncertainty over this burgeoning market. However, with resilience and determination, the industry has persevered, witnessing a transformation in market fundamentals.”
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Burdock emphasized the resilience of new power contracts resistant to broader economic pressures, particularly highlighting the commitment of states like New York, New Jersey, and Massachusetts to offshore wind development and domestic supply chain investment.
“In 2024, we observe a rebound in the market, with declining interest rates and inflation, coupled with the expansion of the supply chain capacity,” Burdock added, underscoring the industry's resilience and adaptability in navigating challenges and driving forward progress in the US offshore wind sector.
