Four years ago, the offshore wind industry came together to strategize how best to advance the industry under a new federal administration. The result has been impressive – 10 projects representing 15 GW of power generation through permitting, one project done and three more under installation, billions for ports and transmission systems, and new long-term tax credits. Despite a major wave of inflation and global economic challenges forcing 75% of projects to restructure their offtake agreements, it appears as the U.S. market is drawing strength and drawing investments into the supply chain.
Just as momentum is building, the industry faces another federal election. By the time the Leadership 100 Committee meets in early December, a new administration – either under Vice President Kamala Harris or former President Donald Trump – will take power and wield significant influence over the pace of offshore wind development in the U.S.
The Leadership 100 Committee will analyze the environment, discuss opportunities, and prioritize a collective action plan under the new Administration setting hard goals and assigning responsibilities. To help inform this plan, Oceantic Network has been convening Working Groups and key constituencies from its membership to derive a policy recommendation list to be enacted under the next administration.
Federal policies can only advance the industry so far. We will also look further into the future, identifying and tackling foundational issues within the market to ensure predictable deployment. Building the supply chain and infrastructure system needed has proven difficult. While state demand for offshore wind appears unrelenting, cost and perception issues continue to plague the industry, potentially leading to a softening of support from the industry’s biggest ally. The Leadership100 Committee will consider and chart a path forward for near-term and long-term success.
With offshore wind’s abundant potential to provide reliable clean energy, create good-paying jobs, and drive new economic development, the industry is already playing a critical role in the U.S. transition to renewable energy sources. State demand for offshore wind also continues to grow as governments chart roadmaps to carbon neutrality. But successfully deploying the industry at scale comes with new challenges unknown to other renewable energy sectors. A hostile marine environment increases project risk, and a strained supply chain has created development bottlenecks. All of this makes financing, construction, manufacturing, and installation difficult. This unique industry requires innovative strategies and solutions to achieve a robust U.S. market.
With a national goal of 30 GW of offshore wind expected to be financed, under construction, and built by 2030, the industry faces multiple issues that require new strategies and thoughtful actions. A cohesive group representing the U.S. offshore wind supply chain needs to identify the most pressing industry needs (i.e., workforce development, training, finance, R&D, grid and transmission, market development, and public support) and best responses to ensure the continued growth and positive development of this emerging U.S. energy industry.