Policy shifts threaten U.S. offshore wind growth
Despite progress on Empire Wind, unstable federal support could delay future investments and drive offshore manufacturing overseas.
Image for illustrative purposes
USA, New York: The U.S. offshore wind sector is reeling from inconsistent federal policy. Just weeks after halting a major development off New York’s coast, the Trump administration reversed its stance, allowing the $5 B Empire Wind project to resume. Though this offers hope, the industry continues to operate in a politically unstable environment.
Gordon Videll, whose company Sea Services protects offshore infrastructure, recently secured a new contract with Empire Wind. “Things are looking good,” he noted. Yet, he is unsure what lies ahead: “After these projects, there is probably going to be a lull.”
This uncertainty stems from erratic policy decisions. President Trump previously issued an executive order against offshore wind, complicating long-term planning. Energy expert David Victor remarked, “You are not quite sure what they are doing or why… or whether theyare going to come after you next.”
Federal tax credits may also be at risk under the proposed Republican budget bill. If eliminated, they could render future projects economically unviable, warns BloombergNEF’s Oliver Metcalfe.
These developments have broader implications. Companies planning to manufacture wind components in the U.S. are reconsidering, says Kris Ohleth of the Special Initiative on Offshore Wind. “Policies are pushing supply chains abroad,” she said.
Still, state-level commitment remains strong. Alicia Gené Artessa of the Alliance for Clean Energy New York believes that despite federal delays, transmission infrastructure can be prepared to support future offshore projects.
Source: Marketplace
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