US’s Offshore Wind Ambitions Suffer New Setback

A Setback for the Biden Administration’s Clean Energy Goals

In a move that may disappoint the Biden administration’s ambitions for clean energy, Ørsted, one of the world’s leading offshore wind energy companies, has announced a delay in the start date for its Revolution Wind project. The project, which aims to harness wind power off the coasts of Rhode Island and Connecticut, is now expected to begin operations by 2026 instead of next year.

The Cause of the Delay

Soil contamination at the site of Eversource Energy’s substation on a former naval station has proven to be more stubborn than anticipated. This issue has pushed back the timeline for the project’s completion, forcing Ørsted and its partner Eversource to reassess their plans.

"Risk is an Integrated Part of Projects"

According to Mads Nipper, CEO of Ørsted, "risk is an integrated part of projects." He acknowledged that the early-stage US market has been particularly challenging due to various factors such as lingering supply chain problems since the pandemic and rising interest rates. This delay comes on the heels of Ørsted’s decision to cancel two other significant projects off the coast of New Jersey last October, Ocean Wind 1 and Ocean Wind 2, which collectively would have generated 2,248 megawatts of renewable energy.

A Pattern of Setbacks for US Offshore Wind Projects

This development is part of a larger trend of setbacks facing the US offshore wind industry. Ørsted has been working on several projects in the region, including its smaller 132MW South Fork Wind farm off the coast of New York, which was completed this year in partnership with Eversource Energy. However, the company also has another significant project, Sunrise Wind, a 924MW installation expected to start operating in 2026 or 2027.

The Implications for US Clean Energy Goals

Revolution Wind is not as massive as some of Ørsted’s other projects but still aims to generate 704MW of renewable energy once complete. This amount would be sufficient to power approximately 350,000 homes in Connecticut and Rhode Island combined. President Joe Biden had set an ambitious goal of increasing US offshore wind capacity from a mere 42MW to 30,000MW by the end of the decade. However, with active projects currently estimated at only 4,800MW, it appears that the US is still far from meeting this target.

Challenges Facing the US Offshore Wind Industry

The challenges facing the US offshore wind industry are multifaceted and complex. Supply chain problems, rising interest rates, inflation, and lingering soil contamination have all contributed to the delays in projects such as Revolution Wind. Furthermore, other factors like permitting issues and environmental concerns continue to plague the development of new offshore wind farms.

A Steep Road Ahead for US Offshore Wind

In light of these setbacks, it is clear that the road ahead for US offshore wind will be challenging. The Biden administration’s goals are ambitious, but the reality on the ground appears to be quite different. With Ørsted and other major players in the industry facing difficulties in bringing new projects online, it remains to be seen whether the US can meet its target of 30,000MW by the end of the decade.

Key Statistics:

• Revolution Wind’s expected power generation capacity: 704 MW
• Number of homes that could be powered by Revolution Wind: approximately 350,000
• Ørsted’s South Fork Wind farm capacity: 132 MW
• Ørsted’s Sunrise Wind project capacity: 924 MW
• Estimated US offshore wind capacity by the end of the decade: 30,000 MW
• Current active projects in the pipeline: estimated at 4,800 MW

Conclusion

The delay in the Revolution Wind project is just one of several setbacks faced by Ørsted and other major players in the offshore wind industry. As the US continues to struggle to meet its clean energy goals, it becomes increasingly clear that the road ahead will be challenging. With a steep climb still ahead, it remains to be seen whether the Biden administration’s ambitions for 30,000MW of offshore wind capacity by the end of the decade can be met.