Offshore wind report lays out year of market transformation

The Network’s 2024 report includes breaking details on events, market trends, supply chain advancements, and policy changes. (Courtesy: Oceantic Network)

The U.S. offshore wind industry’s capacity has grown 800 percent, according to a new report published by the Oceantic Network.

The network has released its 2024 U.S. Offshore Wind Market Report. Among the findings:

The offshore wind capacity approved for construction by the federal government grew 800% –from 0.93 GW to 8.3 GW in 2023.

Developers terminated 51% of power contracts in place prior to 2023 and are seeking financial support for another 24%.

Despite setbacks, 2023 saw several key announcements of new manufacturing facilities, port infrastructure upgrades, and offshore wind vessels.

States spent much of 2023 working to create interstate cooperation frameworks in order to stabilize regional markets, lower project costs, and increase economic benefits.

“Global economic challenges hindered our progress in 2023, bringing uncertainty to this new and growing market. However, with each step back, we’ve seen the industry press forward and are seeing a transformation in market fundamentals,” said Liz Burdock, founder and CEO of Oceantic Network.

“New power contracts that are resistant to broader economic pressures are being executed and states like New York, New Jersey, and Massachusetts remain dedicated to offshore wind development and investing in a domestic supply chain. In 2024, we are seeing the market rebound with interest rates and inflation falling along with new supply chain capacity,” said Burdock.

The report included predictions for the industry in 2024, including the potential for three or more new lease auctions as the Bureau of Ocean Energy Management (BOEM) opens new areas in the Gulf of Maine, Central Atlantic, Oregon Coast, and the Gulf of Mexico.

By December, states could award as much as 15.5 GW of new power offtake, about 60 percent of that will be used to replenish lost contracts. Total capacity that is approved for construction will continue to rise to at least 14.6 GW, the report predicted.