60% growth in US offshore wind long-term targets in Q3
Landmark federal policy, record investments, and new state-level actions drove the US offshore wind industry forward in the third quarter of 2022, with coastal states increasing their long-term targets by 58%, a new record for quarterly growth.
The Business Network for Offshore Wind, recently released its inaugural US Offshore Wind Quarterly Market Report, which examines the factors contributing to this historic expansion and provides insight on key market trends, supply chain and technology advancements, and the key challenges.
The report details three important developments that made the third quarter among the most consequential for the American offshore wind industry, including:
- The passage of the Inflation Reduction Act (IRA), which appropriated USD 369 billion in new, clean energy funding, including billions in tax credits for critical offshore wind manufacturing.
- Federal support to stand up a floating wind turbine industry in the US, with the Biden Administration announcing a Floating Offshore Wind Shot initiative and a goal to deploy 15GW of offshore wind power by 2035.
- Ambitious new targets set by coastal states including California, which announced its planning goal to deploy 25GW of floating offshore wind generation by 2045, and New Jersey, which increased its target from 7.5GW by 2035 to 11GW by 2040.
“Our inaugural quarterly report could not come at a more exciting time for offshore wind”, says Liz Burdock, President and CEO of the Business Network for Offshore Wind. “With historic federal funding, new support for floating wind turbine technology, and increasingly ambitious state-level goals, the longstanding aspirations of the American offshore wind industry are poised to become reality. Despite this tremendous growth, the industry still must overcome challenges to upgrade our grid and transmission system, localise a robust supply chain, and train a skilled workforce. Capitalising on this momentum requires continued coordinated action from our state and federal government to deploy a comprehensive national offshore wind industrial strategy that includes critical investments in our infrastructure, ports, and manufacturers.
Key takeaways from the report include:
- New federal investments from the IRA and the Infrastructure Investment and Jobs Act, combined with efforts to bring greater transparency to the federal permitting system, underpin the beginnings of a National Offshore Wind Industrial Strategy and put the United States in striking position to achieve its goal of deploying 30 GW of offshore wind by 2030.
- The United States is taking serious steps to become a key competitor in the floating wind turbine industry, launching a new initiative aimed at driving down construction costs by at least 70% and allocating critical funding for R&D.
- While attention has been trained on California for setting the nation’s largest planning goal, East Coast states remain at the forefront of offshore wind commitments, development, and deployment, with notable actions in Massachusetts, New Jersey, New York, and Rhode Island moving the market forward at breakneck speed.
- Supply chain development continues at pace, with domestic shipbuilding and port redevelopment seeing gains, but additional domestic growth is needed to meet the demand for the growing pipeline of projects.