Green Energy out of the Blue: The rise of offshore wind energy in the U.S.

by KRISTINE LIAO | April 22, 2021

Since 2007, wind energy has been the largest generator of electricity globally among renewables after hydropower. But when looking at the future, the potential of onshore turbines is limited, particularly by land requirements as well as public opposition to developments near where people live.

This is where offshore wind enters the market. Not only are turbines located in the ocean free from land constraints, but they also have the potential to generate much more energy since wind is both stronger and more consistent off the coast than on land. 

These factors make the offshore wind industry one of the most promising renewable energy sectors. At its maximum potential, offshore wind production could reach more than 120,000 gigawatts (GW), or 11 times the projected global electricity demand in 2040.

Where the U.S. offshore wind industry stands on the global sphere

Despite having extensive coastlines prime for offshore wind development, the U.S. currently only has two offshore wind farms, consisting of five turbines in the waters off of Block Island, Rhode Island, and two turbines off the coast of Virginia Beach.

In total, the U.S. has an offshore wind capacity of 42 megawatts (MW). To put that into context, the United Kingdom, Germany and China each have at least 140 times the current offshore wind capacity of the U.S.

But the U.S. isn’t expected to be in last place for much longer. Last month the Biden administration announced a plan to dramatically accelerate offshore wind development, vowing to install 30,000 MW of the energy source by 2030—enough power to meet the demand of 10 million homes.

Although this seems like an ambitious goal—to increase the country’s current offshore wind capacity by more than 700-fold within a decade—the U.S. is already well on its way to achieving that target. Besides the 42 MW already in operation, the country has announced 32 other offshore wind projects that will increase its offshore wind capacity dramatically within the next 15 years. 

Altogether, these plans led the Department of Energy to project that the U.S. would produce more than 28,000 MW by 2035, and become the world’s third leading offshore wind energy producer by 2025. With the Biden administration’s recent commitment to accelerating development, the country’s offshore wind production may ramp up even further.

How U.S. offshore development will look in the coming years

According to the Department of Energy, U.S. offshore wind has the potential to generate more than 2,000 gigawatts of capacity (2 million MW)—comparable to nearly double the nation’s current electricity use.

But offshore wind projects take time, money and labor to come into fruition. Currently, of the 32 offshore wind projects recorded in the U.S. pipeline, eight are slated to begin operating in 2023, and will bring the country’s offshore wind capacity to more than 2,000 MW. By 2024, three other projects are expected to start generating electricity, more than doubling capacity to 5,000 MW. And by the following year, the U.S. is expected to have a total of 15 offshore wind farms generating a cumulative 6,500 MW. 

The other 19 offshore wind projects in the U.S. pipeline are currently still in the planning or site control phases and have no set operation date, but they are projected to add another 22,000 MW to the country’s offshore wind portfolio, bringing the grand total to more than 28,5000 MW. 

The majority of the projects currently in progress are located on the East Coast, which will likely continue to be a trend since it harnesses the most potential for offshore wind development, according to the Department of Energy. The East Coast not only has high wind speeds, but also the advantage of shallower water compared to the West Coast, making the region more suitable for implementing turbines.

Among the 13 states that currently have plans to develop offshore wind projects, Massachusetts has the most megawatts of the renewable energy in the pipeline at more than 8,000. New Jersey comes in second place with more than 4,000 MW in the development process, and North Carolina and New York follow behind with more than 3,000 MW each.

Of the projects located outside of the East Coast, one is in the Great Lakes region in Ohio, two are on the West Coast in California, and three are off the coast of Hawaii. 

Why the Biden administration is pushing for offshore wind development

There are several reasons why the U.S. would benefit from developing its offshore wind capacity. The most obvious is its ability to help the country transition to clean energy. By installing 30,000 MW of offshore wind, the U.S. can avoid 78 million metric tons of carbon emissions.

But besides the benefits of clean air and renewable power, offshore wind development also has the potential to strengthen the economy by creating tens of thousands of jobs. This includes 44,000 workers employed in offshore wind and nearly 33,000 additional jobs in communities supported by offshore wind activity, according to the government.

Though the incentives are there, the Biden administration will have to overcome many challenges in order to achieve its goal of raising U.S. offshore wind capacity to 30,000 MW. Not only will there have to be an acceleration in the production of raw materials, but also in the permitting process for projects, which thus far has been a years-long process.

Developers will also have to navigate resistance from coastal communities, which may oppose offshore wind due to landscape aesthetics and onshore construction, and the fishing industry, which has concerns that turbines in the ocean will impact fishing grounds.

As the Biden administration vows to accelerate development of the U.S. offshore wind industry, the next few years will prove whether this is truly a turning point in the country’s progress toward renewable energy.

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