Acceleration of state-level policy commitments are driving up market interest in US offshore says NREL

The US offshore wind energy project development and operational pipeline grew 1.4% to a potential generating capacity of 25.8GW last year, a new report by the US National Renewable Energy Laboratory (NREL) has found.

NREL’s analysis also noted that industry forecasts suggest US offshore wind capacity could grow from 11-16GW by 2030.

State-level policy commitments have accelerated, driving increased market interest in offshore wind development, according to the agency’s 2018 Offshore Wind Technologies Market Report.

The study also found that offshore wind interest grew in California with the passage of Senate Bill 100, the 100 Percent Clean Energy Act of 2018.

According to the report higher offshore wind lease sale prices indicate “increased confidence in future market growth driven by state policies, confidence in the regulatory and financial institutions to support offshore wind project development in the nascent US market”.

In the US in 2018, new commitments were added in Massachusetts, with an additional 1600MW authorised by 2035, New York, where 6600MW by 3035 was added, and New Jersey, which is targeting 2400MW by 2030.

In addition, Connecticut and Rhode Island both agreed to purchase power from Orsted’s 600MW Revolution project.

The global wind industry installed a record 5652MW of offshore wind capacity in 2018 and by the end of that year, cumulative global offshore wind installed capacity grew to 22,592 MW from 176 operating projects.

As of 31 December 2018, the global pipeline for offshore wind development capacity was about 272,000MW.

NREL’s report also found that the wind industry is seeking cost reductions through larger turbines with rated capacities of 10MW and beyond.

The study also highlighted that floating wind pilot projects are advancing, with the global pipeline for floating offshore wind energy reaching 3100MW in 2018, with 29 announced projects and 44MW of operating projects.

The 2018 Offshore Wind Technologies Market Report provides US offshore wind policymakers, regulators, developers, researchers, engineers, financiers, supply chain participants, and other stakeholders with up-to-date quantitative information about the offshore wind market, technology, and cost trends in the US and worldwide.

Funded by the Department of Energy’s Wind Energy Technologies Office, the report covers the status of the 176 operating offshore wind projects through 31 December 2018.

The study also provides the status of, and analysis on, a broader global pipeline of 838 projects in various stages of development.