US Offshore Wind Will Fall Short of Biden's 2030 Goal, Analysis Says

The United States will fall far short of the Biden administration's 2030 offshore wind goal but will catch up quickly in the following years, according to an analysis by an industry group published on Tuesday.

The American Clean Power Association (ACP) projected there will be about 14 gigawatts (GW) of offshore wind capacity along U.S. coastlines by 2030. That compares with a goal of 30 GW that President Joe Biden's administration laid out in 2021 as it sought to jumpstart the domestic energy industry.

Offshore wind is a key pillar of Biden's promise that fighting climate change will create jobs and invigorate the economy.

But soaring materials costs, high interest rates and supply chain snags have led multiple offshore wind companies in the last year to cancel or seek to renegotiate power contracts for planned U.S. offshore wind farms. Those challenges have cast doubt on the industry's ability to meet the administration's timeline.

There are just 174 megawatts (MW) of offshore wind capacity currently installed in the U.S. as of June 30, though that more than quadrupled from 42 MW a year ago, according to the ACP.

The industry has more than 12 GW in advanced development or under construction, the report said. The U.S. is far behind market leader China, which has nearly 38 GW of offshore wind capacity.

The United States will reach the 30 GW target by 2033 and nearly 40 GW by 2035, the ACP said in its offshore wind market report.

The industry is on track to invest $65 billion in projects by 2030 and create 56,000 jobs, the ACP added.

(Reuters - Reporting by Nichola Groom; Editing by Jamie Freed)