More than half of U.S. offshore wind contracts are canceled or at risk of being canceled

Of the 17.4 gigawatts of offshore wind capacity contracted for development, over half have been canceled or are at risk of being canceled, meaning the contracts are being renegotiated, according to BloombergNEF.

Citing data from ClearView Energy Partners and the Energy Department, BloombergNEF reports that 5.4 gigawatts of the target 17.4 gigawatts are under contracts that have been canceled, representing 31% of the goal. 

The contracts for 4.2 gigawatts of capacity, representing 24.1% of the goal, are being renegotiated.

In October, New York authorities denied requests from wind developers Orsted, BP and Equinor to renegotiate their contracts for four offshore wind projects and 86 land-based projects.

Last week’s cancellation of Orsted’s Ocean Wind project planned for the coasts of New Jersey accounted for 2 gigawatts of the total canceled contracts. The prospects for about a dozen offshore projects in the United States are uncertain as contract renegotiations are underway, according to Bloomberg.

The Biden administration had set a target of 30 gigawatts of offshore wind as part of its broader goal of making the U.S. carbon neutral, meaning the nation cuts greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere. The cancellation of Ocean Wind represents 7% of the administration’s goal.