Offshore wind is likely to miss the Biden administration's industry targets for 2030 despite billions of dollars in subsidies, according to a report from the American Clean Power Council (ACP) on Tuesday.
The government, goal The offshore wind industry has set a goal of delivering 30 gigawatts (GW) of electricity by 2030, but ACP report By then, generating capacity is expected to reach only about 14 GW. The Biden administration has heavily subsidized the industry. Billions of dollars These efforts have continued since taking office in 2021, but ACP analysis shows that these efforts will not achieve the 2030 target until at least 2033.
“Market analysts forecast that 14 GW of offshore wind will be installed by 2030, 30 GW by 2033 and 40 GW by 2035,” ACP said. Said “These forecasts are based on 7.6GW of offshore wind projects aiming to come online by the end of 2027,” he said in a press release accompanying the report's release. (Related: After unveiling restrictive oil and gas plan, Biden administration unveils robust leasing schedule for beleaguered green industry)
After 2023 debacle, blue states focus on offshore wind https://t.co/Mp6ttDq7x2
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The offshore wind industry A big boost before suffering from a worsening macroeconomic environment and moving away from President Joe Biden's signature climate change bill, the Inflation and Recovery Act (IRA). Inflation and rising interest ratesCritics of offshore wind argue that the industry's woes stem fundamentally from the fact that without government support, the industry simply cannot become self-sustaining.
Last year was particularly tough for the industry, as big developers like Orsted pulled out of major developments altogether or sought to renegotiate contracts with state and utility regulators to make up for profits eroded by inflation and high borrowing costs. Other projects have been canceled or slipped off schedules well into 2024.
Other difficulties developers have faced include supply chain backups and logistical issues, both of which are contributing to rising costs plaguing the industry.
Nonetheless, ACP remains bullish on the industry's potential in the U.S. market over the next few years.
““Offshore wind project development, construction and operations are expected to support up to 56,000 jobs and invest $65 billion in the industry by 2030,” ACP said in the brief. “The new report also highlights the economic impacts that offshore wind will have on U.S. domestic shipbuilding, port infrastructure and other supply chain activities. More than 40 new vessels are currently on order or under construction to support the industry. The industry has committed to a record $3 billion in supply chain investments in 2023 alone, with total infrastructure investments now exceeding $9 billion.”
The White House did not immediately respond to a request for comment.
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