Turbulent Waters – Current Developments in the U.S. Offshore Wind Industry

January 30, 2024

A relative newcomer to the global offshore wind market, the United States has set an ambitious goal for the development of the industry with strong support at both federal and state levels. While important milestones have been achieved and several large projects are now under or approaching construction, the industry is facing substantial headwinds, including significantly increased costs, supply chain constraints and challenges with executed offtake contracts that have set revenue streams, among other factors. Most recently, project developers’ efforts to renegotiate power purchase agreements (PPAs) and the well-publicized cancellation of several major U.S. offshore wind projects have brought concerns over the future direction of the U.S. offshore wind industry to a head.