The US offshore wind industry concluded 2023 with its first commercial scale projects delivering power to the grid, a bright spot amid a difficult year for the industry, according to a new report published by the Oceantic Network. As the leading organization working to advance offshore wind and other ocean renewable industries and their supply chains, the Network today released its 2024 US Offshore Wind Market Report, which analyzes the challenges and successes of the industry over the past year and provides guidance for the year ahead.

Key findings from the 2024 US Offshore Wind Market Report include:

• The offshore wind capacity approved for construction by the federal government grew 800% –from 0.93 GW to 8.3 GW in 2023.
• Developers terminated 51% of power contracts in place prior to 2023 and are seeking financial support for another 24%.
• Despite setbacks, 2023 saw several key announcements of new manufacturing facilities, port infrastructure upgrades, and offshore wind vessels.
• States spent much of 2023 working to create interstate cooperation frameworks in order to stabilize regional markets, lower project costs, and increase economic benefits.

“Global economic challenges hindered our progress in 2023, bringing uncertainty to this new and growing market. However, with each step back, we’ve seen the industry press forward and are seeing a transformation in market fundamentals, ”said Liz Burdock, founder and CEO of Oceantic Network. “New power contracts that are resistant to broader economic pressures are being executed and states like New York, New Jersey, and Massachusetts remain dedicated to offshore wind development and investing in a domestic supply chain. In 2024, we are seeing the market rebound with interest rates and inflation falling along with new supply chain capacity.”

The Report made several predictions for 2024, including:

• Potential for 3+ new lease auctions as the Bureau of Ocean Energy Management (BOEM) opens new areas in the Gulf of Maine, Central Atlantic, Oregon Coast, and the Gulf of Mexico.
• With the US market largely stabilizing and returning to growth, the next twelve months have the potential to bring significant supply chain development, further investment, and renewed shipbuilding activity.
• By December, states could award as much as 15.5 GW of new power offtake, approximately 60% of which will be used to replenish lost contracts.
• Total capacity approved for construction will continue rising to at least 14.6 GW.