The US offshore wind (OSW) market is at a pivotal juncture, with the sector showing resilience and adaptability in the face of recent macroeconomic challenges. The US Department of Energy (DOE) released the “Pathways to Commercial Liftoff: Offshore Wind” report, highlighting the industry’s potential to expand access to clean energy significantly. With over 10-15 GW of projects nearing final investment decisions and a long-term goal of delivering more than 100 GW by 2050, the US OSW sector is set for substantial growth.
The current progress in the US OSW market is driven by significant developments and planned expansions. Approximately 50 GW of US seabed has already been leased to developers, with more leases anticipated. Early project deployments are advancing rapidly, with 250 MW operational, 5 GW under construction, and over 10 GW approved for construction. This initial wave of projects is crucial for establishing a foundation for long-term deployment, decarbonisation, and economic benefits across the country.
The DOE report emphasises the importance of addressing market and infrastructure challenges to sustain long-term growth. Key recommendations include upgrading onshore networks, streamlining interconnection points, enhancing environmental review processes, tackling cost allocation barriers and developing the US high voltage direct current (HVDC) ecosystem among other things. The current coastal grid infrastructure is adequate for near-term projects but requires significant improvements to support sustained growth beyond 2030.
Despite cost challenges driven by rising commodity prices, interest rates, and supply chain constraints, the OSW sector remains on a path to cost reductions. Long-term projections suggest that levelised costs of energy (LCOEs) below USD100 per MWh are achievable for fixed-bottom projects by 2030. The DOE’s initiatives, combined with federal resources and collaborations, aim to enhance transmission planning and coordination, ultimately supporting the expansion of the US OSW market and ensuring its critical role in the nation’s clean energy future.
The full report can be accessed here.
