Setbacks and Cancellations Threaten Biden’s Ambitious Offshore Wind Expansion Plans

The Biden administration’s plans to expand the offshore wind industry and generate clean power for coastal states are facing setbacks as a slew of projects and contracts have been canceled. Danish developer Orsted recently announced the scrapping of two large projects off the coast of New Jersey citing rising interest rates, competition for limited supplies and equipment, and local opposition as factors. This follows similar cancellations in Massachusetts and Connecticut, which have put over 18 gigawatts of offshore power under development in jeopardy. The cancellations may dash President Biden’s hopes for offshore wind power and could impact his goal of generating 30 gigawatts of offshore wind power by the end of the decade. However, the White House remains optimistic and highlights the industry’s progress, including $7.7 billion in investment since last summer. Orsted plans to move forward with its Revolution Wind project and is committed to the industry, but other projects are still under review. The cancellation of Ocean Wind projects has caused controversy in New Jersey, with Governor Phil Murphy criticizing Orsted and promising to hold the company accountable. Opposition to offshore wind projects is due to concerns about threats to fisheries and marine mammals, although these claims contradict scientific findings. The offshore wind industry has faced challenges due to soaring costs, interest rate hikes, and competition for resources and equipment. The Treasury Department may play a role in improving the industry’s fortunes through tax breaks and looser rules on qualifying for credits and boosting local manufacturing. The American Clean Power Association emphasizes the need for strong partnerships with government and stakeholders to overcome challenges.