During 2024 US states could award as much as 1550MW of new power offtake, 60% of which will be used to replenish lost contracts, according to Oceantic Network.
In its 2024 US Offshore Wind Market Report the trade body also predicts capacity approved for construction will continue rising to at least 14.6GW this year.
The report’s other predictions for 2024 include potential for three-plus new lease auctions as the Bureau of Ocean Energy Management (BOEM) opens new areas in the Gulf of Maine, Central Atlantic, Oregon Coast and the Gulf of Mexico.
With the US market largely stabilising and returning to growth, the next 12 months have the potential to bring significant supply chain development, further investment, and renewed shipbuilding activity, highlighted the report.
In 2023 there was an 800% growth in offshore wind capacity approved for construction by the federal government, from 930MW to 8.3GW in 2023.
However, developers terminated 51% of power contracts in place prior to 2023 and are seeking financial support for another 24%.
Despite setbacks, 2023 saw several key announcements of new manufacturing facilities, port infrastructure upgrades, and offshore wind vessels.
States spent much of 2023 working to create interstate cooperation frameworks in order to stabilise regional markets, lower project costs and increase economic benefits.
“Global economic challenges hindered our progress in 2023, bringing uncertainty to this new and growing market.
“However, with each step back, we’ve seen the industry press forward and are seeing a transformation in market fundamentals,” said Liz Burdock, founder and CEO of Oceantic Network.
She added: “New power contracts that are resistant to broader economic pressures are being executed and states like New York, New Jersey and Massachusetts remain dedicated to offshore wind development and investing in a domestic supply chain.
“In 2024, we are seeing the market rebound with interest rates and inflation falling along with new supply chain capacity.”