In the US, a third of planned offshore wind farm projects were canceled last year

Offshore wind development in the US suffered a major blow last year after two large offshore wind farm projects were canceled. According to data from the government agency there, the two projects accounted for roughly a third of the planned capacity of new offshore wind sources. Unlike in Europe, offshore wind energy off the US coast is still in its infancy, with just three farms and fewer than 20 turbines in operation.

While offshore wind farms are already a significant source of electricity in some European countries, the situation is different in the United States. Although plans for future wind energy development in US waters are ambitious, they are still a long way from being realized. Just three offshore wind farms have entered operation so far, with a combined 19 turbines and total installed capacity of 174 MW.

According to the US Energy Information Administration (EIA), several farms are currently under construction or in development. One wind farm was completed this year and is awaiting commercial operation. This is the South Fork Wind project, whose 12 turbines (130 MW) account for most of the operating capacity mentioned above. The total planned capacity is approximately 4800 MW, most of which is not yet under construction and is awaiting permits.

The cancellation of two wind farm projects off the coast of New Jersey caused a major drop in capacity under development. Together, they were expected to have installed capacity of almost 2400 MW, or a third of the total capacity of projects in development.

Danish company Ørsted, one of the sector’s leading global developers, took this step last autumn. The company cited a sharp rise in costs, which meant continuing with the projects would no longer be profitable. The company said at the time that halting the projects would result in a loss of more than 5 billion dollars, immediately affecting its share price.