November 5, 2024 — Offshore wind energy developers already invested heavily in U.S. Atlantic waters are looking for new power purchase agreements with Northeast states, a quest complicated by uncertainty over the presidential election, the wind industry group Oceantic says in a new report.
“This slowdown comes at a critical time: states have reorganized their project portfolios after rising costs scrambled industry economics and are pushing hard for new offtake agreements,” Oceantic says in its recently published 2024 third quarter report. But the group says “the federal government has hit its stride in permitting advancements and has begun releasing Inflation Reduction Act funding. The market is primed for impressive growth.”
With support from the Biden administration, Northeast state governments and a determined permitting drive by the federal Bureau of Ocean Energy Management, BOEM has issued permits in various stages for 10 projects, according to the Oceantic report.
The group’s optimistic outlook came out just before a lackluster BOEM lease auction in the deepwater Gulf of Maine that drew $21.9 million in bids for four out of nine tracts offered. The prospects for developing arrays of floating wind turbines in the Northeast U.S. still depend on future development of suitable ports, infrastructure and technology.