New report by ACP says clean power industry projected to invest $65B in offshore wind

Published on July 11, 2024 by Dave Kovaleski

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A new report from the American Clean Power Association (ACP) says the clean power industry is projected to invest $65 billion in offshore wind projects by 2030.

ACP’s 2024 Offshore Wind Market Report said there are 56 gigawatts (GW) of capacity under development, across 37 leases in the U.S. In addition, there are currently 12 GW of projects with active offtake agreements, including 4 GW under active construction at Vineyard Wind, Revolution Wind, and Coastal Virginia Offshore Wind.

Market analysts forecast that there will be 14 GW of offshore wind deployed by 2030, 30 GW by 2033, and 40 GW online by 2035. These outlooks build on the 7.6 GW of offshore wind projects seeking to be operational by the end of 2027.

Overall, the investments in clean power will support 56,000 jobs.

“After the successful start-up of the 132 MW South Fork wind farm earlier this year, and with 136 MW operational at Vineyard Wind, offshore wind is gaining momentum with three projects under construction and thirty-seven more in development,” ACP Chief Policy Officer Frank Macchiarola said. “Harnessing America’s offshore wind resources will boost economic activity, create jobs, reduce pollution providing environmental and public health benefits, and strengthen America’s energy security by enhancing grid reliability and energy independence.”

It also found that state solicitations could award procurement contracts for an additional 8,800 – 12,200 MW of offshore wind projects in the second half of 2024, all located off the Northeast coast. New Jersey, New York, Massachusetts, Rhode Island, and Connecticut are the states with ongoing or upcoming solicitations.

New Jersey has the most offshore wind capacity under contract with 5,252 MW of projects under contract. Virginia has the most offshore wind capacity under construction, with 2,587 MW.

The momentum is likely to continue with the Bureau of Ocean Energy Management (BOEM) planning to hold four lease sales in the second half of 2024 in the Central Atlantic, Oregon, the Gulf of Maine, and a second Gulf of Mexico lease sale. These four lease sales will open nearly 1.9 million acres of federal waters to offshore wind development. This could pave the way to more than 20 GW of future clean power generation capacity.

Further, the BOEM issued a Record of Decision (ROD) for nine lease areas, involving 12 projects, as of July 5, up from two at mid-year 2023. This allows these projects to move forward with construction. Also, 7 other projects have submitted Construction and Operations Plans (COPs), this includes five projects which have received a draft Environmental Impact Statement (EIS).

The report also examines the economic impact of offshore wind on domestic U.S. shipbuilding, port infrastructure, and other supply chain activities. It revealed that there are more than 40 new vessels currently on order or under construction to support the industry.