Offshore wind farms are reaching a breakthrough in the developing offshore wind industry. Large farms and tall turbines are pushing wind farms farther into the ocean. The US government plans to install these farms to help the renewables sector achieve tremendous growth.
In the US, the government is leading opportunities for large-scale planning beginning with the Atlantic Sea.
If successful, the decade until 2030 is when energy companies will decrease their dependence on fossil fuels and shift to green energy. Likewise, the economy will rely more on wind energy.
When wind with solar and other low-carbon sources replace coal and fossil fuels, the economy benefits tremendously. The government acting as a catalyst for investments will jumpstart the domestic manufacturing, logistics, and supply chain network. On top of incentives and funding, research and training are crucial.
The initial goal by 2030 is to reach 30 GW of wind installed capacity. With so much potential out at sea, the wind in the US blows in favor of the offshore wind.
US Market for Offshore Wind Energy
According to NREL, the US offshore wind market may grow into a $109 billion industry. The supply chain, operational costs, and components manufacturing are developing together with large-scale offshore wind farms going online in years to come.
NREL estimated the market by projecting 18 gigawatts of installed capacity in 2030. The goal for 2030, however, had been raised to 30 gigawatts of installed capacity. With the 30 gigawatts in mind, the potential revenue could be higher if the 2030 goal pushes manufacturing, logistics, and deployment to improve.
As the government plans to retire more coal plants through 2025, the energy transition highlights how much offshore wind can power households in coastal areas and the country. Coastal states require 80% of the electricity in the country. To unlock the wind near the coasts for renewable energy, offshore wind installations in the US connect to the grid.
Retirement of Coal Power Plants
Data from Statista shows that from 2022 to 2025, the government plans to or have retired 17 gigawatts of coal plants. Coal power plants retiring are presenting themselves as salient opportunities to move to renewables.
In 2022 alone, coal power plants comprise 85% of planned plant closures. 12.7 GW is the production number that will close in a year and no longer go back online.
According to the US Department of Energy, the country relied on fossil fuels even though coal plants retired from 1995 to 2020. Natural gas compensated for the gap by producing more. On the other hand, coal has had a downward trend since 2008. Between 2008 and 2020, coal-based electricity generation had fallen more than 50% to 899 billion kilowatt-hours.
Renewable energy projects can fill the rest of the gap. The wind leads renewable projects accounting for 9.23% of all the electricity generated in the US in 2021. In 2021, renewable projects produced 826 billion kilowatt-hours or 826 terawatt-hours.
Although commercial offshore wind projects have grown slower than coal projects are receiving closure memos, this decade can be the takeoff point and momentum-builder for a nascent industry such as offshore wind.
With large-scale offshore wind projects coming in the next few years, the wind has more opportunities as coal will drop further off the electricity generation list. More importantly, wind energy is cost-effective and can have a lasting impact on the environment and local communities.
Bureau of Ocean Energy Management
Federal waters hold vast potential for offshore wind energy resources. Federal waters go beyond the 3-nautical mile boundary of the state from the shore until 200 nautical miles into the sea.
The federal government possesses jurisdiction over these waters. The exception is Florida which extends its state waters to 9 nautical miles on its Gulf coast. Federal waters also refer to the Outer Continental Shelf. They are recognized by international law as part of the United States continental shelf.
The Bureau of Ocean Energy Management (BOEM) administers all areas of the Outer Continental Shelf of the United States. Before any offshore project begins its application to the government, whether in the oil or renewable energy space, the allotted space is bid out by BOEM and awarded to the most capable developer.
BOEM prioritized offshore wind in recent years, and the series of leasing activities have attracted world-class offshore wind developers to the US.
Offshore Wind Lease Areas
To increase offshore wind capacity, BOEM continues to study the federal waters suitable for offshore wind farm development. A total of 30 GW of lease areas are either already leased by BOEM or BOEM will lease to potential investors and developers. Between 2022 to 2025, the leasing of BOEM will focus on developments beyond 2030.
So far, these are the states who are beneficiaries of BOEM’s lease sale areas that are adjacent to their state waters:
- Rhode Island
- Virginia
- Massachusetts
- Maryland
- New Jersey
- New York
- North Carolina
As of February 2019, BOEM granted 16 individual lease sales in federal waters near the states above, plus three noncompetitive lease sales.
US Offshore Wind Potential
Wind power brims with potential in the US federal waters. According to the NREL wind speed map, at 80 meters, the Atlantic Sea holds vast potential for the offshore wind industry.
The visible color purple on the seaside of the US map shows coastal states in the Atlantic having wind speeds between 7.5 to 8.5 meters per second to harness.
Furthermore, NREL only assessed offshore wind potential up to 50 miles from the coastal shores. Far beyond 50 miles to 200 nautical miles, more wind energy is still waiting to be unlocked.
Large-Scale Offshore Wind Power
According to a 2010 report by NREL, the wind capacity of the offshore winds in US seas between zero nautical miles up to 50 miles is equivalent to 4,000 gigawatts or four terawatts.
At the end of 2021, the commercial electric grid of the US will carry 1.1 terawatts of installed capacity. With the offshore winds remaining mostly untapped, the potential for offshore wind can quadruple the current installed capacity of the US.
NREL’s study (Large-Scale Offshore Wind Power in the United States) denotes the potential into three categories: zero to 30-meter depths, 30 to 60-meter depths, and greater than 60-meter depths within 50 miles from shore.
After assessing quickly, it is clear that the government’s move to develop the Mid-Atlantic is a good decision. South Atlantic Bight, Great Lakes, and the Gulf of Mexico also hold plenty of potential for offshore leasing and development within 30-meter depths.
Meanwhile, depths greater than 60 meters hold the highest potential in Great Lakes and California. However, technical limitations prevent the full utilization of such depths. Research to develop floating turbines is ongoing and can harness more wind from these depths in the future. California and Great Lakes combined have a potential of 1 terawatt from depths greater than 60 meters.
The efficiency of offshore wind farms further validates the US offshore wind potential. Each offshore wind project can produce more from each installed megawatt because of the consistent winds blowing the turbines.
Again, these depths are within 50 nautical miles of the shore. In Europe, developers build wind farms farther from the coast in the North Sea.
A Nascent Industry
According to the Department of Energy’s National Offshore Wind Strategy, technology and costs challenge the offshore wind goals of the US.
The industry needs a mature supply chain to address technology and cost challenges. As the goal of the US to reach 30 GW in a blue ocean offshore sector, offshore wind projects by 2030 will need a mature supply chain sub-sector to sustain innovation.
The Office of Energy Efficiency and Renewable Energy breaks down the needed materials and components into specific quantities. Developers need to install 2,100 wind turbines and connect them with 6,800 miles of cables using 58 crew transfer vessels.
Risks to Production
In the upcoming offshore wind projects in the US, there are enough capacity in the lease areas and planned lease areas to achieve 30 GW by 2030. However, the industry needs a jumpstart quickly. Risks can reduce momentum and prevent these plans from pushing through.
NREL cites some risks, including dependence on European manufacturers and increasing production. Due to the European demand for offshore wind projects this decade, more supply is required for manufacturers to meet targets for European and American customers.
To deploy 4 to 6 GW a year, advanced manufacturing will need to build and assemble critical components within US territory beyond 2025.
Limitations
According to a report by the Department of Energy, the 2030 goal of the US poses multiple challenges to developers and government officials. Aside from cost and technology, the logistics of installation require specialized infrastructure.
Tackling the issues weighs on the ability of the government to be agile while converting opportunities into economic benefits for communities and workers.
Some of the challenges are as follows:
- Constrained port infrastructure
- Lack of installation vessels
- Developing workforce for offshore wind jobs
- Nascent manufacturing for critical components
Supply Chain Roadmap
The researchers intend to provide broad outlines for an industry seeking to take a leadership role in the energy sector. Moreso, the initiative will update the business outlook on the industry and its growth potential. At the end of 2022, NREL, the National Offshore Wind Research and Development Consortium (NOWRDC), and Business Network for Offshore Wind will produce a comprehensive supply chain roadmap for the US.
The roadmap benefits states with high manufacturing capability for onshore wind. Furthermore, the roadmap helps industrial states like New Jersey with an excellent logistics opportunity to grow with the offshore wind market.
Benefits of Offshore Wind Development
Offshore wind development promotes economic development and environmental benefits. Below are some of the positive outcomes of a well-developed offshore wind industry:
- Less air pollution
- Decrease gas emissions
- Lesser water consumption
- The increased tax base for communities and states
Upcoming Offshore Wind Projects
Block Island Wind farm will be the only commercially operating offshore wind farm in the US in 2022. Block Island’s offshore wind power can only power a small community.
In the coming years, the wind farm can serve as a historical reference on how wind power developed drastically in technology and economics in two decades.
Future offshore wind projects are already reaching gigawatt scales in the wind farms under construction on the East Coast. Before 2030, hundreds of turbines would go online in the Atlantic Sea.
| Wind Farm | Capacity Factor (MW) |
| Vineyard Wind Project | 800 |
| Empire Wind | 2,100 |
| Marwin Wind Farm | 300 |
| Momentum Wind Farm | 808 |
| Mayflower Wind | 1,200 |
| Ocean Wind Farm | 2,200 |
| Sunrise Wind | 924 |
| Revolution Wind | 704 |
| Park City Wind | 804 |
| Atlantic Shores Offshore Wind | 1,500 |
Here are some of the commercial offshore wind projects in development in the Atlantic Sea:
- Vineyard Wind Project (800 MW)
- Empire Wind (2.1 GW)
- Marwin Wind Farm (300 MW)
- Momentum Wind Farm (808 MW)
- Mayflower Wind (1.2 GW)
- Ocean Wind Farm (2.2 GW)
- Sunrise Wind (924 MW)
- Revolution Wind (704 MW)
- Park City Wind (804 MW)
- Atlantic Shores Offshore Wind (1.5 GW)
The projects above may power nearly 2 million homes in the US every year.
States also have been proactive in obtaining projects through offshore wind solicitation activities. States plan to achieve targets in their Renewable Portfolio Standards, and offshore wind fast-tracks the greening of the economy.
Research and Development
National Renewable Energy Laboratory is pushing wind turbine design and research and studying how to make wind farms more efficient.
The future of offshore wind projects is expanding into floating turbines.
According to NREL’s Offshore Wind Research Platform Lead Walt Musial, floating turbines in deeper ocean waters make wind even more competitive. Floating wind farms are at an early phase in the US and have significant potential.
Floating turbines present the next generation of offshore wind projects in the industry. At this point, monopile foundations limit most offshore wind to depths of 60 meters. Floating turbines in floating platforms can change that. In Maine, an extensive academic and business take shape to build the prototype of floating wind the industry may need.
Next-generation Offshore Wind Farms
According to NREL’s estimates, Maine’s waters hold some of the most extensive offshore wind potential.
Diamond Offshore Wind Farm–developed by New England Aqua Ventus and the University of Maine–is the first application of floating offshore wind in the US. New England Aqua Ventus is a subsidiary of Mitsubishi Corporation and RWE Renewables.