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The capacity of offshore wind facilities in the United States is experiencing significant fluctuations due to recent cancellations and ongoing project developments. Last year, two major offshore wind projects in New Jersey were canceled, resulting in a notable reduction in expected capacity. As of May, the U.S. Energy Information Administration (EIA) reported 7,200 megawatts (MW) of offshore wind capacity either under construction or planned. However, since December, projects totaling about 2,400 MW have been canceled, leaving 4,800 MW in various stages of development.
In late 2023, developer Orsted canceled the 2,400-MW Ocean Wind 1 and 2 projects in New Jersey. The company cited rising interest rates, high inflation, and supply chain delays as the primary reasons for the cancellations.
Currently, there is one offshore wind project under construction and another awaiting commercial operation. Both are expected to begin operation in 2024. The 130-MW South Fork Wind project, located off the coast of Long Island, New York, has been generating electricity since March but has yet to reach commercial operation. This stage is when an operator formally declares a generating unit as online and available for commercial dispatch. It is common for electric generators to produce energy while conducting tests for weeks or months before officially commencing commercial operation.
The project under construction is the 800-MW Vineyard Wind 1, located offshore of Martha’s Vineyard, Massachusetts. Of the 62 turbines planned, 10 were in place as of February, according to co-owner Avangrid. The entire project is expected to be online by this fall.
Several other projects are in various stages of planning and development. This spring, developers Orsted and Eversource began building monopiles, which are vertical cylinders supporting wind turbines, for the 704-MW Revolution Wind project off the coast of Rhode Island. Similarly, in May, Dominion Energy constructed the first monopile for the 1,265-MW Coastal Virginia Offshore Wind (CVOW) Commercial Project. The CVOW Commercial Project follows a 12-MW pilot brought online by Dominion in 2021.
Although foundational work has begun on these projects, they are still pending regulatory approvals and are not officially under construction. In the EIA’s Form 860M, some generators label a project as under construction when they start building components, but others wait until the construction process is further along. Revolution Wind is expected to be online in the fall of 2025, while Dominion Energy plans to start the CVOW project in early 2027.
The 924-MW Sunrise Wind project is one of two active projects awarded by New York State in February. Developers Orsted and Eversource expect to bring Sunrise Wind online in 2026. Equinor, the developer of the second active project, has yet to report the 810-MW Empire Wind 1 to the EIA as a planned project.
Some other projects in Maryland and Ohio, which developers still report as active, have faced setbacks. These challenges highlight the uncertainties and complexities involved in developing offshore wind facilities in the United States, as the industry navigates financial, regulatory, and logistical hurdles. Despite these challenges, the remaining projects continue to progress, aiming to contribute significantly to the country’s renewable energy capacity in the coming years.
