North America

Exeptionally Positive 2021 Outlook for U.S. Offshore Wind

With the inauguration of Joe Biden, new winds are blowing in Washington D.C. Federal and State support for clean energy and renewables is stronger than ever, and delayed projects are expected to move forward in the near future.

Who The Trade Council of Denmark in North America

When 22.01.2021

What

Energy

After only a few days in office, the expectations as to Joe Biden’s presidency are already defined by strong climate ambitions – and actions. On the day of his inauguration, the President signed an executive order which rejoined the U.S. to the Paris climate accord with a pledge to tackle climate change thereby promoting clean energy and renewables.

Furthermore, the President’s signature policy in the first term includes a $2 trillion climate and infrastructure plan with a target of carbon free electricity by 2035. To put it into perspective, this amount is the equivalent to the cost of approximately 11 new International Space Stations.

With the new Administration in office, we expect the next four years – and certainly the first two while Democrats have narrow control of the Senate – to be very positive for U.S. offshore wind.

James Glennie Sector Expert at the Trade Council's Wind Energy Advisory

Several East Coast States Are Leading The Way for U.S. Offshore wind

The U.S. offshore wind pipeline has been rapidly developing over the last few years. East coast states have awarded almost 14GW of offshore wind request for proposals (RFPs) and they have pledged to add another 15 GW. In short, states are more motivated than ever to move ahead with the development of offshore wind.

This is evidenced by their ambitious offshore wind targets and the associated schedules for RFPs. Prime examples are the 2.6 GW awarded by Virginia to Dominion Energy in April last year, the 2.5 GW awarded by New York to Equinor and BP last week, and as much as 2.4 GW which is expected from New Jersey in a few months.

In addition, James Glennie explains that the new Administration brings greater investment certainty, which is expected to substantially increase contracting activity as developers ready their supply chains for a busy construction schedule through 2035.

Major Developments Expected in 2021:

First quarter issuance of a record of decision by the Bureau of Ocean Energy Management (BOEM) for Vineyard Wind. This will conclude the federal permitting process and so will allow America’s first commercial-scale offshore wind farm to proceed with contracting and construction.
New Jersey to award a contract, for as much as 2.4 GW, by the end of June.
Additional leases to be offered for auction by BOEM in the New York Bight and potentially on the West coast. Other possible areas include the Gulf of Maine and the Carolinas.
RFP announcements from Massachusetts and Rhode Island for up to 1,600 MW and 600 MW, respectively.

Knowledge Hub Receive the Latest offshore news from the u.s.

To keep up to date with the many market developments and announcements, the Trade Council of Denmark in North America has developed the U.S. Offshore Wind Knowledge Hub. An online platform targeting Danish companies keen to track and understand wind energy industry developments and commercial opportunities.

The Knowledge Hub provides a comprehensive overview of lease and project developments and is continuously maintained and updated. Members receive a concise monthly ‘Market Update’ that summarizes recent sector developments.

Find more information or subscribe to the hub.