Offshore Wind Market Report: 2023 Edition
The Offshore Wind Market Report: 2023 Edition provides detailed information on the U.S. and global offshore wind energy industries to inform policymakers, researchers, and analysts about technology, economic, and market trends. The scope of the report covers the status of over 293 global operating offshore wind energy projects as well as the broader global pipeline of projects in various stages of development through December 31, 2022. To provide up-to-date information and discussion on this emerging industry in the United States, this report tracks the significant U.S. domestic industry progress and events from January 1, 2022, through May 31, 2023. The U.S. offshore wind energy project development pipeline has reached a potential generating capacity of over 52 gigawatts, and the industry has seen strong support from state and federal governments (such as from the Inflation Reduction Act of 2022 and the announced Floating Offshore Wind Shot to reduce the cost of floating wind by 70%). There are contracts for over 17 gigawatts of the electricity from these offshore wind projects and state policies are in place to procure over 42 gigawatts by 2040. Although some projects are facing economic headwinds due to rising costs and higher interest rates (corresponding to project cost increases of 11% - 30% in 2022), there has still been significant investment in a domestic supply chain (including manufacturing facilities, new vessels, and upgraded or planned ports). Technologies continue to evolve as offshore wind turbines in the 15-megawatt class advance towards commercial production. Key offshore wind energy market indicators, such as commercial leasing, state energy planning targets, procurement policies, offtake agreements, and federal support for U.S. jobs and supply chain development, point toward sustained market growth when viewed together, but the macroeconomic hurdles facing the first generation of commercial projects could significantly stunt that growth.