In the first week of 2024, President Joe Biden's offshore wind ambitions have experienced a mix of positive and negative developments. While the nation's first large-scale wind farm has successfully begun producing power for the New England power grid, another major project on the East Coast has been abandoned due to escalating costs. These contrasting outcomes emphasize the challenges facing Biden's goal of achieving 30,000MW of energy from offshore wind by 2030.

The United States currently lags behind Europe and China in offshore wind development, hindering the nation's progress in meeting clean energy targets outlined in the Paris climate accord. President Biden actively supports offshore wind expansion and has implemented policy incentives and opened up vast areas of the US shoreline for development. However, despite these efforts, the industry continues to grapple with various hurdles.

"This is a historic moment for the American offshore wind industry," celebrated Massachusetts Governor Maura Healey in a press release as the Vineyard Wind 1 project reached a significant milestone. Located 15 miles off the coast of Martha's Vineyard, the project delivered power to the New England power grid for the first time on Tuesday at 11:52 PM local time. While only one turbine contributed 5MW of power during the initial commissioning process, the project aims to have at least five turbines operating at full capacity by early 2024. With a total of 62 turbines, the Vineyard Wind 1 project has the potential to illuminate approximately 400,000 homes and businesses in Massachusetts, furthering the US's offshore wind capacity to around 850MW.

On the flip side, the outlook for offshore wind in New York has dimmed as Equinor and BP canceled their offtake agreement with the state for the Empire Wind 2 project, which had a planned capacity of 1,260MW. The decision was attributed to "changed economic circumstances on an industry-wide scale," including inflation, high interest rates, and supply chain disruptions. The companies expressed the need for commercial viability and intend to negotiate new offtake agreements, likely at higher rates to offset rising development costs. Developers of offshore wind projects in the US are grappling with increased expenses due to inflation and shortages of building materials like steel and resin. Last year, BP, Equinor, and other developers requested permission to charge customers higher electricity rates, a request that was denied by New York regulators in October.

The setback in New York follows the cancellation of two major projects off the coast of New Jersey by wind energy giant Ørsted last October. These projects, which would have generated a combined 2,248MW of clean power, highlighted the challenges faced by developers. However, another Ørsted-backed project called South Fork Wind, with a capacity of 130MW, began delivering power to Long Island from its first operational turbine in December, offering a glimmer of hope amidst challenges in the industry.

President Biden's offshore wind ambitions continue to face trials and triumphs as the US strives to tap into its vast potential for offshore wind energy. The Vineyard Wind 1 project marks a significant step forward, but the cancellation of the Empire Wind 2 project highlights the financial obstacles that hinder progress. Moving forward, stakeholders will seek to pave the way for a stronger and more resilient offshore wind sector, ensuring that the US plays a prominent role in the global clean energy transition.