Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

Offshore-Wind-Energy-Strategies-Report 12

Download as pdf or txt
Download as pdf or txt
You are on page 1of 1

Department of Energy | January 2022

III. Offshore Wind Energy Outlook


State of the Global Industry. The global offshore wind energy industry is rapidly expanding.
Offshore wind technology evolved in Northern Europe over the past 20 years and global
installed capacity now exceeds 30 gigawatts (GW). At the end of 2020, the United Kingdom led
the world with the most installed capacity at roughly 10.5 GW. 25 The rest of Europe had
another 13 GW of offshore wind capacity installed across 11 other countries—notably
Germany, Belgium, the Netherlands, and Denmark. 26 Costs have fallen significantly, such that
Germany and the Netherlands have achieved several subsidy-free auctions of offshore wind
energy, 27 although continued reductions are necessary for broad cost competitiveness. Since
2015, China has installed more offshore wind capacity annually than any other country, with
over 7 GW installed by the end of 2020.28 The country also has the largest pipeline of projects in
the planning phase.29 Governments from various countries and the European Union have
invested in developing and demonstrating innovative technologies. Private industry continues
to invest in research and development (R&D), often collaborating with other entities such as
government agencies, research institutions, colleges and universities, and national laboratories.

The U.S. industry has lagged Northern Europe’s, for a number of reasons. Electricity prices tend
to be lower in the United States than in Europe, so it is more difficult for new technologies to
be cost competitive in the U.S. market. Prior to states enacting mandates for offshore wind
energy procurement, the United States lacked the supportive policies that drove the first
decade-plus of European offshore wind energy deployment. In addition, many entities are
involved in the processes required to site and permit power plants in Federal waters and route
cables through state waters, taking significant coordination and time. Needing to navigate
unprecedented and evolving processes means that early projects have missed deadlines and
struggled to secure power purchase agreements.

State of the Domestic Industry and Recent Progress. As of June 2021, the United States has
seven operating offshore wind turbines in two small projects totaling 42 MW of installed
capacity, and 17 active commercial lease areas in Federal waters 30 with 15 commercial projects
that are actively in permitting in those lease areas (see Appendix A4). As discussed in greater
detail later, the Federal Government has recently committed to rapidly increase the scale of
offshore wind development in the United States and progress is being made to do so. Over the

25 Musial, Walt, Beiter, Philipp, Spitsen, Paul, Duffy, Patrick, Marquis, Melinda, Cooperman, Aubryn, Hammond, Robert, Shields,
Matt. 2021. Offshore Wind Market Report: 2021 Edition. Washington, D.C.: U.S. Department of Energy Office of Energy
Efficiency & Renewable Energy. https://energy.gov/eere/wind/articles/offshore-wind-market-report-2021-edition-released.
26 Ibid
27 Jansen, M., Staffell, I., Kitzing, L. et al. Offshore wind competitiveness in mature markets without subsidy. Nat Energy 5, 614–

622 (2020). https://doi.org/10.1038/s41560-020-0661-2.


28 Musial, Walt, Beiter, Philipp, Spitsen, Paul, Duffy, Patrick, Marquis, Melinda, Cooperman, Aubryn, Hammond, Robert, Shields,

Matt. 2021. Offshore Wind Market Report: 2021 Edition. Washington, D.C.: U.S. Department of Energy Office of Energy
Efficiency & Renewable Energy. https://energy.gov/eere/wind/articles/offshore-wind-market-report-2021-edition-released.
29 Ibid
30 For leasing status, see BOEM State Activities.

Offshore Wind Energy Strategies | Page 4

You might also like