While offshore wind farms are positioned to contribute in major ways to the future of clean electricity, the industry is currently weathering a stormy situation. In a January 2024 article from the MIT Technology Review, Casey Crownhart addresses the speedbumps companies such as Ørsted must overcome to further efforts to cut greenhouse-gas emissions. In recent months, issues such as rising interest rates, high inflation, and supply shortages have led to the delaying or cancellation of projects around the world, including Ørsted’s Wind 1 and Ocean Wind 2 which would have supplied power to over a million New Jersey homes. In the US alone, over 12 gigawatts worth of contracts have been either delayed or canceled in the past year. In the last five years, prices for steel have increased over 50%. This increase along with the rise in other expenses has led developers to argue that previously agreed upon prices are no longer reasonable. The US offshore wind industry is estimated to be at least a decade behind more established markets such as those in the UK and China, due to an underdeveloped supply chain and laws restricting the access of non-US built ships to US ports. Despite these setbacks, however, signs of progress are visible, including the onset of production at the nation’s second-largest wind farm, Vineyard Wind, in early January. Offshore wind turbines are also becoming larger and more efficient, with the newest models reaching 15 megawatts each, and floating models are also gaining attention. Wind farms have the potential to significantly bolster the cleansing of the world’s electrical supply with 40% of the global population living within 60 miles of the ocean. If the industry cannot overcome its growing pains soon, however, the future of offshore wind may continue to be vexed.
Fighting the Winds of Change: An Update on Off-Shore Wind
- by Henry Palmer
- January 24, 2024
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