A New Crossroad for Offshore Wind in the U.S.
In one of his initial moves as president, Donald Trump signed an executive order that could significantly impact the budding offshore wind industry in the United States. This order, announced on a Monday morning, places a hold on federal leases for offshore wind development on the outer continental shelf. This area is strategically important as it boasts consistently higher wind speeds while remaining accessible from shore.
“This withdrawal does not apply to leasing related to any other purposes such as, but not limited to, oil, gas, minerals, and environmental conservation,” the order clarifies.
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The directive doesn’t freeze projects with existing leases but instructs the Secretary of the Interior to review active contracts for potential amendments or terminations.
Offshore Wind’s Current Status
The offshore wind industry in the U.S. has been struggling to gain momentum. As of May, there were only a few operational offshore wind farms contributing a mere 174 megawatts, according to the National Renewable Energy Laboratory. This is a tiny fraction compared to the global capacity of 68 gigawatts, primarily concentrated in Europe and China.
Glimmers of Hope
Despite these hurdles, prospects were improving with 4.1 gigawatts under construction, 3.4 gigawatts approved, and an additional 19.8 gigawatts navigating through the permitting process. Collectively, these would have significantly contributed to achieving the Biden Administration’s goal of expanding offshore wind capacity to 30 gigawatts by the decade’s end.
Why Offshore Wind Matters
Although offshore wind remains costlier compared to other power sources, its consistent energy output and proximity to large urban centers make it appealing. In Europe, data center operators are already making strides in this area; Google, for instance, secured a deal for 478 megawatts of offshore wind power for its Dutch data centers last year.
The Roadblocks
- Public resistance
- Lack of necessary infrastructure for turbine installation
- Abundance of cheap, windy lands favoring onshore turbines
These factors have collectively stymied the growth of offshore wind in American waters.
The Global Picture
Globally, offshore wind continues to thrive beyond U.S. shores. While Trump’s executive order presents a setback domestically, it won’t extinguish offshore wind entirely. Instead, international markets will mature further as companies refine their expertise overseas, potentially awaiting a more favorable regulatory environment in the U.S.
