Blown Away: The Development of Offshore Wind in the U.S.
By: Amy Walsh
Renewable energy sources have existed for centuries but in recent decades, have become key to combatting climate change. Prioritizing energy sources with low carbon footprints is critical to managing and reversing temperature increases, water shortages, and other negative impacts that have resulted from generations of fossil fuel use. While wind has been instrumental to this energy transition, offshore wind has greater potential than traditional onshore wind due to the size difference of the turbines. Not only does offshore wind have higher energy capacity but can do so in a much smaller physical footprint than onshore wind. Though the European Union (EU) has been the front runner in offshore wind development, the United States (U.S.) has made tremendous progress over the past two decades with more growth on the horizon. To become a leader in offshore wind production, the U.S. must increase regional collaboration, improve project siting, and supply chain processes, while streamlining permitting and infrastructure development and avoiding political roadblocks.
Wind power in the U.S. has its origins in the late 1800s when windmills were used to generate energy for agricultural and residential uses. Legislation that laid the foundation for offshore energy development initially focused on offshore drilling. In 1953, the U.S. government passed the U.S. Submerged Lands Act, giving the U.S. title to submerged lands up to three miles from coastline. At the same time, the Outer Continental Shelf Lands Act provided jurisdiction over lands of the Outer Continental Shield, while also delegating authority to the Secretary of the Interior to lease those lands for energy development. The Secretary further delegated this authority to the Minerals Management Service, which would later be renamed and split into the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE).
The Energy Policy Act of 2005 (EPAct) laid the foundation for offshore wind development. The EPAct authorized BOEM to issue leases, easements, and rights of way on the Outer Continental Shelf for renewable energy development. The EPAct also provided a framework for BOEM to use when coordinating with other agencies, states, and local governments on environmental analysis and implementation of the renewable energy program. To get a project off the ground, proponents must comply with federal statutes, such as the Clean Air Act, Clean Water Act, Endangered Species Act, Marine Mammal Protection Act, and National Environmental Policy Act (NEPA). Each statute has an associated permit or approval process required to ensure that the project does not have negative impacts on the environment. Similarly, state and local governments require permits for siting, construction, and transmission.
In 2011, the U.S. Department of Energy (DOE) and Department of the Interior (DOI) released a National Offshore Wind Strategy. Just two years later, the first offshore wind turbine was connected the energy grid. By 2016, the first U.S. offshore wind farm, Block Island, was operational off the coast of Rhode Island. Although maritime space was now available for development, financial roadblocks persisted, limiting offshore energy production. In 2022, the Inflation Reduction Act (IRA) provided critical financial incentives to facilitate large-scale growth of renewable energy. The IRA provided a 30% tax credit for offshore wind projects that begin before 2026, as well as credits for domestic producers of goods related to wind energy. In addition, the IRA appropriates $100 million to conduct analysis related to the transmission for offshore wind.
The 2024 Offshore Wind Market Report states that the U.S. has a combined capacity 174 MW between three operational offshore wind projects with an additional 4,097 MW under construction. Eighteen additional projects were currently in the permitting phase. However, the regulatory framework for offshore wind has undergone major shifts in just the past year. In 2024, DOI updated regulations regarding clean energy development. The update included reducing costs with offshore wind deployment, streamlining complex processes, and enhancing compliance. Nevertheless, in January 2025, President Trump halted offshore wind development though a Presidential Memorandum, making future federal support of offshore wind uncertain.
The U.S. has scaled offshore wind quickly and has potential to make substantial progress in the next three decades, starting in the planning phase. Project siting is a complicated process that incorporates financial, environmental, and socioeconomic factors, as well as public engagement. As the U.S. begins to utilize the ocean for energy, coordinating and sustaining multi-use areas is critical. However, the distinctive landscapes in the U.S. require some creativity, supported by federal efforts like the Energy Earthshots Initiative. The offshore portion of this initiative focuses on siting floating turbines in areas that cannot support fixed-bottom turbines, increasing overall offshore energy potential. Fortunately, many EU companies, such as Orsted, are heavily involved, if not leading, offshore wind development in the U.S, bringing with them valuable expertise and resources. The National Renewable Energy Laboratory developed a road map for developing a robust supply chain for wind in the U.S, including short-, medium-, and long term action items. Short term goals include establishing reliable funding streams, identifying locations for development, and conducting outreach to increase awareness of manufacturing opportunities. Medium term goals include leveraging industry working groups to develop best practices and training a sufficient workforce in manufacturing. Long term goals include maintaining, upgrading, and expanding supply chain infrastructure to adapt to lessons learned and evolving technology.
The U.S. still has unique challenges in scaling offshore wind. Developers have to secure permits at all levels of government, and lengthy environmental analysis must be completed prior to construction. The U.S. should consider the recommendations provided to EU Member States and how strategies have been implemented successfully, such as establishing a decision period like The Netherlands or limiting the number of appeals like France. The U.S. had begun to address environmental analysis delays by revising the NEPA regulations in 2020, 2022 and 2023. These revisions set time limits and page limits for NEPA documents, allowed for tiering to programmatic analyses, and streamlined assessment by clarifying vague language. However, any progress made through those changes has since by eliminated by the recent Interim Final Rule removing all existing regulations implementing NEPA.
Transmission is a major roadblock to increasing renewable energy resources in the U.S. New projects in the Northeast may require up to 3,000 miles of offshore transmission lines, while existing projects will require offshore grid development to facilitate connections. While transmission will still have to be established offshore, using existing infrastructure, such as transmission for retired fossil fuel projects, would minimize the additional components needed onshore.
The inconsistent political support for renewable energy in the U.S. has substantially slowed progress. While efforts under the previous administration, such as the Inflation Reduction Act, skyrocketed offshore wind development, the current administration has ceased any further advancement through Executive Orders and similar mandates. During this standstill, it is critical that states keep momentum for offshore wind development. One strategy is utilizing the Coastal Zone Management Act (CZMA). The CZMA helps states develop coastal management programs that can receive federal funding and analyze effects to their coastal areas and account for state-specific needs and concerns. Another strategy is state legislation, which has already proven to be successful. Oregon enacted H.B. 3375 which planned the development of floating offshore wind by 2030. Massachusetts passed H.4524 which established working groups that will provide best practices for wildlife conservation throughout the stages of offshore wind development.
Although offshore wind development is still in its preliminary stages, the U.S. has big goals for its growth. The Wind Vision Report of 2015 projected that 35% wind energy is possible by 2050. Individual states like Maine and New Jersey have established their own offshore wind goals by setting procurement mandates by 2040. The DOE recently estimated that the U.S. has a potential generating capacity of 80,523 MW, providing hope for the future of renewable energy development.