Doubts persist over US offshore wind sector

Financial and political uncertainty ’is leading us into a challenging period, which will undoubtedly impact short-term activity’, says Philip Lewis, of market research firm Global Intelatus Partners.

Just this month, Biden approved the Atlantic Shores South offshore wind energy project, which will consist of two projects and a total estimated power generation capacity of 2.8GW. 7The US has set a target of installing 30GW by 2030, but this is highly unlikely to be hit.

Intelatus believes that depending on the results of the November US election the sector could develop in two ways: along the current development pathway with Biden, who plans to get 6,500 offshore turbines installed at an initial spend of $420 billion and a recurring annual spend of $10 billion; or a shift away, were the Republicans to take power, with the immediate cancellation of plans to lease auctions in eight wind areas.

“Further, the threat remains (under Trump) for Executive Orders that halt specific projects or create a moratorium on offshore wind leasing in North & South Carolina, Georgia and Florida,” Lewis says.

The doubts over project sanctioning activity have also slowed down the development of several announced component factories, Lewis says, with plans for turbine nacelle plants, three turbine tower manufacturing facilities, two monopile manufacturing facilities and two subsea cable factories all currently on hold.

However there are signs that in the long term, the sector will develop. The Bureau of Ocean Energy Management (BOEM) has permitted the construction of 12GW of project capacity, Lewis says, and up to 23GW is scheduled to be awarded in federal auctions in the Atlantic, Pacific and Gulf of Mexico, just before the US election is held.

With vessels, Lewis says the US Crew Transfer fleet could reach 25 by the end of this year.

“At the same time, the Service Operation Vessel fleet will amount to one operational vessel and two under construction,” he says. ”Dominion’s Wind Turbine Installation Vessel Charybdis will be completed ahead of the 2025 turbine installation campaign. The rock-dumping vessel Arcadia is progressing.”