Key Takeaways

• Offshore wind is emerging as a key player in the United States’ transition to clean and sustainable energy. East Coast states are leading the way in offshore wind development, expected to meet 2% of current US electricity demand in 2029 through offshore wind energy.
• The U.S. has two operational offshore wind projects with a combined capacity of 42 MW, and there are 51,000 MW of offshore wind capacity in various stages of development with a significant pipeline on the East Coast and a smaller portion on the West Coast.
• New York is at the forefront of offshore wind deployment, with the highest capacity in the pipeline among all states. Other states such as New Jersey, Massachusetts, Virginia, and Maryland also show significant progress in offshore wind development, with ambitious targets set for the future.

The United States is witnessing a remarkable transformation in its energy landscape, with offshore wind emerging as a key player in the transition to a clean and sustainable future. Among the frontrunners in this renewable energy revolution are the East Coast states, which have taken the lead in offshore wind development. These coastal states are driving the growth of offshore wind projects, unlocking vast renewable energy potential and propelling the nation towards a greener tomorrow.

Current offshore wind capacity in US

42 MW of Offshore Wind is online in the US and 51,000 MW of Offshore Wind Capacity in Development Currently, the United States has two operational offshore wind projects: the Block Island Wind Farm, developed by Ørsted, with a capacity of 30 MW, located off Rhode Island, and the Coastal Virginia Offshore Wind Pilot Project, with a capacity of 12 MW, owned by Dominion Energy. Additionally, there are two projects under construction in federal waters. The Vineyard Wind 1 project, a collaboration between Avangrid and Copenhagen Infrastructure Partners, has a capacity of 816 MW and has initiated onshore construction in late 2021, followed by offshore cable laying in November 2022. The South Fork Wind Farm, developed by Ørsted and Eversource, has a capacity of 132 MW and began onshore construction in February 2022. Offshore construction activities, including cable laying, commenced in March 2023.

Figure 1. U.S. Offshore Wind Pipeline (MW), Data Source: American Clean Power (ACP)

The power generated from the Vineyard Wind project is being purchased by three utilities in Massachusetts through Power Purchase Agreements (PPAs), while the Long Island Power Authority in New York has a PPA with the South Fork Wind Farm. The majority of the offshore wind projects in the United States are in the early development stage, accounting for 33,875 MW. There are also 16,564 MW of projects in advanced development, with an additional 938 MW currently under construction. In total, the U.S. has a pipeline of 51,377 MW of offshore wind capacity, with 84% of it, equivalent to 43,115 MW, located on the East Coast. The remaining 8,262 MW is spread across five projects on the West Coast.

Offshore Development on the east coast – New York, New Jersey, Virginia, Massachusetts, Maryland, North Carolina, Connecticut, and Rhode Island

New York paves the way for Offshore Wind Deployment on east coast

New York takes the lead among all states in terms of offshore wind capacity, with a substantial 4,362 MW in the pipeline. Out of this, 132 MW is currently under construction through the South Fork Wind Farm. Following closely behind is Virginia, with 4,349 MW of capacity and New Jersey with 3,758 MW of capacity in advanced development. Massachusetts stands out as the only other state with offshore wind capacity under construction, with Vineyard Wind’s 806 MW accounting for approximately 25% of the state’s total capacity of 3,242 MW in the pipeline. In New Jersey, Governor Phil Murphy has raised the state’s offshore wind target from 7,500 MW by 2035 to an ambitious 11,000 MW by 2040. Maryland also shows significant progress, with 2,044 MW of offshore capacity in their respective pipelines. In April 2023, Maryland lawmakers passed a bill setting a target of 8.5 GW of offshore wind by 2031.

Image 1. U.S. Offshore Wind Pipeline by State (MW), Data Source: American Clean Power (ACP)

Figure 2. U.S. Offshore Wind Pipeline by State (MW), Data Source: American Clean Power (ACP)

Offshore wind energy and US electricity demand 

Offshore wind energy is expected to meet 2% of current US electricity demand in 2029 Offshore wind energy generation in the United States is expected to experience remarkable growth in the coming years. cCarbon.info’s analysis suggests that offshore wind energy production from the east coast will meet 2% of the current US electricity demand in 2029.

Figure 3. U.S. Annual Offshore Wind Power Generation (MWh), Data Source: American Clean Power (ACP)

In 2016, the cumulative generation was at a relatively modest level. By 2020, significant progress was made, reaching approximately 165,564 MWh. However, a real surge is projected to occur this year, with offshore wind energy production projected to soar to 3,863,160 MWh, signifying a monumental leap in this sector. This upward trend is expected to continue, with 2024 projected to witness a further surge to 8,199,360 MWh, and 2025 expected to reach 14,616,936 MWh. The trajectory is anticipated to persist, with the cumulative offshore wind generation projected to skyrocket to 36,090,981 MWh by 2026. Subsequent years are also expected to demonstrate continued growth, albeit at a slightly slower pace, with 2027 projected to record 50,179,689 MWh and 2028 projected to climb to 64,631,061 MWh. In 2029 anticipates the cumulative offshore wind generation to reach an impressive 69,156,477 MWh, highlighting the United States’ commitment to harnessing the potential of offshore wind energy and driving sustainable development in the renewable energy sector.

The East Coast’s Strategic Advantages

The East Coast possesses several strategic advantages that make it a prime location for offshore wind development. Its proximity to major urban centers, high population density, and strong coastal winds create an ideal environment for tapping into the vast energy resources of the Atlantic Ocean. Recognizing these advantages, states such as Massachusetts, Rhode Island, New York, New Jersey, and Maryland have strategically positioned themselves at the forefront of offshore wind expansion in the United States. The pursuit of clean and sustainable energy sources has gained significant momentum in recent years, and nowhere is this more evident than on the East Coast of the United States. With an abundance of offshore wind resources, coastal states are experiencing an unprecedented surge in growth.

The Impact of East Coast Offshore Wind on the RGGI Program

The unprecedented deployment of offshore wind in East Coast states is poised to have a significant impact on the Regional Greenhouse Gas Initiative (RGGI) program. The integration of offshore wind power into the energy mix will contribute to a substantial reduction in carbon emissions in the power sector, aligning with the goals of the RGGI program. The large-scale deployment of offshore wind farms will provide a clean and renewable source of electricity, displacing fossil fuel-based generation and reducing the reliance on carbon-intensive power plants. This infusion of offshore wind power will not only bolster the renewable energy capacity but also enable states to achieve their emissions reduction targets more effectively. By diversifying the energy portfolio with offshore wind, the East Coast states can accelerate their transition towards a cleaner and more sustainable future while supporting the objectives of the RGGI program. Analyst Contact:

• Megha Jha (mjha@ckinetics.com)
• Craig Rocha (cmrocha@ckinetics.com)