According to the Oceantic Network’s latest annual report, U.S. offshore wind concluded last year with its first commercial-scale projects delivering power to the grid amid industry challenges.
The organization’s newest U.S. Offshore Wind Market Report found that in 2023, the federal government grew its approval for industry construction by 800%, even as developers terminated 51% of power contracts put in place prior to the year.
However, despite setbacks, the report notes that last year also saw announcements of new manufacturing facilities, port infrastructure upgrades and offshore vessels.
“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,” says 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.”
The report also made several predictions for this year, including the potential for new lease auctions by the Bureau of Ocean Energy Management.
