US offshore wind industry faces challenges in reaching ambitious targets

The US Biden administration aims to install 30 gigawatts of offshore wind capacity by 2030, but meeting this target is becoming increasingly uncertain. The US offshore wind sector has historically faced several obstacles, including permitting delays, complex regulations, and nascent supply chains. Additionally, rising inflation and interest rates are impacting project economics, leading to cancellations and contract renegotiations. As of now, over 12 gigawatts of offshore wind projects have been canceled or are being reevaluated, representing more than half of all contracted US offshore wind capacity. Despite these challenges, the US onshore wind sector shows promise, with an expected addition of 112 gigawatts of new onshore wind projects by 2030, nearly doubling the total installed wind capacity in the country. However, the US is more likely to install around 15 gigawatts of offshore wind capacity by 2030, less than half of the target set by the Biden administration.