Cancellation of Major Offshore Wind Projects in New Jersey and New England Challenges Biden's Clean Energy Goals

Supply chain issues, higher interest rates, and insufficient tax credits contribute to cancellations, threatening Biden's 30 gigawatts target by 2030; industry still hopeful for around 22 gigawatts.

The cancellation of two large offshore wind projects in New Jersey and three in New England equates to nearly one-fifth of President Joe Biden’s goal of 30 gigawatts of offshore wind power by 2030. This poses a significant setback to the Biden administration’s clean energy goals.
The reasons for these cancellations include supply chain issues, higher interest rates, and the inability to obtain the desired amount of tax credits, all of which have made the projects financially unfeasible.
Despite these challenges, industry experts believe the U.S. could still generate approximately 20 to 22 gigawatts of offshore wind power by 2030, a significant increase from the current amount.
Continued investment in the offshore wind sector is evident. Recently, New York state announced the award of 4 gigawatts of offshore wind capacity. Additionally, the Interior Department approved the nation’s largest planned offshore wind farm in Virginia.
Offshore wind continues to be a linchpin in government plans to shift to renewable energy. However, the recent setbacks indicate that the industry might face a slower growth rate than expected.