“We’re excited about the continued progress New Jersey is making toward its offshore wind goals, which will create 10,000 jobs and $4.7 billion in economic impact across the state. Ocean Wind 1 plays a key part in meeting these goals, with the ability to power nearly half a million homes per year on clean, reliable, and homegrown wind energy.

“This final Environmental Impact Statement is the result of rigorous review and extensive public input from key stakeholders, demonstrating BOEM’s commitment to building clean power in a way that protects the environment and incorporates community feedback – a commitment that the industry shares. ACP looks forward to BOEM’s final approval of Ocean Wind 1 this year, and the jobs, manufacturing capacity, and energy security that America’s offshore wind industry will bring.”

• 11% growth in the now nearly 140 gigawatt (GW) development pipeline reflects promise of new federal policies, while historically low Q4 2022 and Q1 2023 installations demonstrate lingering headwinds 
• Total clean power installations declined in 2022 for the first time in five years 
• Texas added over 9 GW of clean energy in 2022, the most in the U.S., while Iowa and South Dakota each generated over 50% of their electricity from clean power 
• Energy storage had a record year with 4 GW and 12 GWh installed, an 80% capacity increase 

NEW ORLEANS, May 22, 2023 – Today, the American Clean Power Association (ACP) released its comprehensive Clean Power Annual Market Report for 2022 and its Clean Power Quarterly Market Report for Q1 2023, finding that combined U.S. wind, utility solar, and energy storage capacity had the third-largest year on record in 2022 with over 25 gigawatts (GW) of new clean power installed. However, a decline in deployment volume from the previous two years, combined with a historically low Q1 2023, underscore the continued headwinds facing the industry. 

After historic clean energy incentives were signed into law in August 2022, clean power has seen record levels of announced activity, with the development pipeline swelling to nearly 140 GW by the end of Q1 2023 – 11% above where it was at the same point last year. However, it is too early to see this activity translate into installations, which have slowed for the first time since 2017. 

“The clean energy revolution is underway,” said ACP CEO Jason Grumet. “We have the technology, financial capital and workforce to power our economy with clean, affordable and secure energy. There is broad bipartisan support for American energy innovation. But the clean energy transition will not succeed unless Congress and Governors enable the siting and construction of new energy facilities and support the build out of transmission that is required to bring clean power to the people.” 

By the end of 2022, nearly 228 GW of clean energy was online, with 4 GW more added in Q1 2023. These resources provide 15% of the nation’s electricity and deliver enough electricity to power the equivalent of over 62 million households. Clean power dominated new power capacity additions in 2022, comprising nearly 80% of all new grid additions.  

Texas added twice as much clean energy capacity as any other state in 2022 (over 9 GW), maintaining its status as the state with the most operating clean power capacity (nearly 55 GW). Iowa and South Dakota each generated over half of their electricity from clean power last year. 

Energy storage witnessed a record year in 2022 with 4 GW and 12 GWh commissioned, representing an 80% increase in total operating storage capacity. Hybrid project installations in 2022 were 60% higher than in 2021, setting a new record in the hybrid space at nearly 6 GW of installations. 

In the nearly 140 GW development pipeline, solar accounts for 59% of all clean power capacity. Land-based wind accounts for 15% of the pipeline, battery storage represents 14%, and offshore wind claims the remaining 13%.

Headwinds & Delays 

However, the year’s progress was not enough to continue the annual growth trajectory of U.S. clean power, with the industry seeing a decline in combined installation volume for the first time in five years and the lowest Q1 (2023) in three years.  

Contributing to the slowdown in installations were delays in 2022 that affected over 50 GW of projects in late-stage development, with a total of 63.3 GW – equivalent to powering nearly 7 million homes – experiencing delays by the end of Q1 2023. On average, these projects face delays of six months or longer, depriving ratepayers of clean, affordable electricity.  

Project delays are primarily due to unclear permitting timelines, trade policy uncertainty, transmission shortages, difficulties sourcing solar panels, unresolved IRA implementation, and interconnection queue challenges (with over 1,741 GW waiting in queues at the end of 2022).   

These challenges must be addressed to unlock the full potential of the nearly 140 GW of clean energy in the development pipeline. 

Key Highlights – Overall 

• Third-Largest Year: 25.5 GW of new clean power was commissioned in 2022, making it the third-largest year on record and bringing the total amount of American clean power online by year’s end to nearly 228 GW.
• Leading Source of New Power: Clean power represented 79% of all new capacity added in 2022. 
• Powering More of America: By the end of Q1 2023, wind and solar provided 232 GW of clean energy, over 15% of the country’s electricity and equivalent to powering over 62 million homes. 
• Net-Zero Progress: Maintaining last year’s project installation volume would provide only 30% of what is needed to reach a net-zero grid by 2035. 
• Significant Delays: By the end of 2022, 53 GW of projects were experiencing delays due to ongoing regulatory, supply chain and interconnection challenges, contributing to a 15% decline in deployment volume from 2021. 63.3 GW of clean power was delayed by end of Q1 2023.
• Development Pipeline: 139 GW of clean energy projects were under development at the end of Q1 2023. 
• Storage Soars: In 2022, energy storage witnessed a record year with 4 GW and 12 GWh commissioned, representing an 80% increase in total operating storage capacity. 
• Growing Workforce & Investment: The clean power industry employs 443,000 workers and invested $35 billion in capital investment in 2022. 
• United States of Clean Energy: Clean power is red, white, and blue with projects or manufacturing facilities in 93% of Congressional districts. Projects can be found in all 50 states. 
• Booming Manufacturing: There are 550 U.S. manufacturing facilities dedicated to producing components and parts for wind, solar, and storage projects in the clean power industry – and since the passage of the Inflation Reduction Act (IRA), 47 new clean energy manufacturing facilities or expansions have been announced, bringing more than 18,000 new American jobs. 

Key Highlights – Q1 2023 

• Lowest Q1 Since 2020: Q1 2023 saw a 36% drop in clean power installations (4,079 MW) compared to Q1 2022. 
  • 95 project phases were commissioned across 27 states, with Florida and Texas leading. 
• Sector Snapshot: Solar led the quarter (2,200 MW), followed by wind (1,418 MW) and battery storage (461 MW). 
• Delays: Regulatory challenges led to significant project delays, especially in the solar sector, with 7.3 GW of clean power capacity expected online in Q1 delayed, for a total of 63.5 GW of clean power delayed by end of Q1. 
  • 90% of Q1 delayed capacity expected to come online later in 2023. 
• Pipeline: The development pipeline grew 11% from Q1 2022 to 139 GW, dominated by solar at 59%. 
• PPAs: New Power Purchase Agreement (PPA) announcements fell by 24% to 3.8 GW, with corporate buyers leading at 63%. 

The Clean Power Market Reports for 2022 and Q1 2023 are comprehensive overviews of the U.S. wind, utility solar, and energy storage markets, containing in-depth analysis of key industry statistics, trends, and rankings. The 180-page annual report and the Q1 2023 report are available exclusively to ACP members.

A public website with interactive data from the 2022 annual report can be viewed here. 

“The District Court held that the Bureau of Ocean Energy Management (BOEM) and the National Marine Fisheries Service (NMFS) fully complied with the Endangered Species Act (ESA) and the National Environmental Policy Act (NEPA) in approving what is about to become the largest offshore wind farm in the United States,” said Josh Kaplowitz, ACP Vice President of Offshore Wind. “This opinion validates what we’ve been saying all along: the environmental review process for offshore wind projects is rigorous and effective at ensuring that these projects are built in an environmentally responsible manner. The federal government did its job, and they did it well.”

The District Court agreed with BOEM and NMFS that the best available science was considered in protecting the endangered North Atlantic Right Whale (NARW) and approving the project with an extensive suite of mitigation measures to reduce risk to the species.  The court rejected all of the plaintiffs’ claims that the federal agencies had failed to analyze certain studies and data relating to the NARW.

“We know that offshore wind farms can be built and operated in a way that protects marine ecosystems,” said Kaplowitz. “Now it’s time to get steel in the water and start reaping the significant benefits that offshore wind affords: reducing greenhouse gas emissions, improving our nation’s health, powering millions of homes with secure and reliable domestic energy, revitalizing our maritime and manufacturing sectors, and creating tens of thousands of good-paying American jobs.”

The District Court is expected to issue opinions in the coming weeks regarding two other challenges to the Vineyard Wind project.  However, ACP stresses this opinion bodes well for the ability of this nascent industry to stand up to legal challenges from opponents of clean energy.

Click here to read the full text of the opinion.

“Offshore wind has the potential to create 10,000 jobs and deliver $4.7 billion in economic impact across New Jersey. Offshore wind is also a critical component to more deployment of clean power, and these two proposed projects off the coast of New Jersey alone would deliver enough energy to power almost 1 million homes in the Garden State. The release of the draft Environmental Impact Statement (DEIS) and call for public comments demonstrates both the Administration’s and industry’s commitment to building clean power in a way that protects the environment.

“As the DEIS highlights, offshore wind farms go through rigorous environmental reviews. We appreciate BOEM’s thorough and inclusive process, which also takes into account the economic benefits that the construction and operation offshore wind farms provide. The Atlantic Shores South Wind Project is a key part in helping move the needle to meet our clean energy goals as well as support American manufacturing jobs throughout the supply chain.”

WASHINGTON D.C., May 4, 2023 – The American Clean Power Association (ACP) today released a comprehensive report on the U.S. offshore wind market, revealing a rapidly growing pipeline of projects across 32 leases totaling 51,377 MW of expected capacity – enough electricity to power the equivalent of more than 20 million homes. Additionally, offshore wind project development, construction and operations are expected to support up to 83,000 American jobs by 2030, with industry investment set to deliver up to $25 billion per year in economic output, according to an ACP report from 2020. 

Although the U.S. currently lags behind China and the U.K. in terms of installed offshore wind capacity, the increasing number of projects in development signals significant progress in a sector poised to play a critical role in creating an energy system powered by clean energy. 

John Hensley, ACP’s VP of Research & Analytics commented, “American offshore wind power is vital to accelerating the deployment of clean energy and the industry is stepping up to the plate to invest. The rapid growth in the U.S. offshore wind pipeline reflects strong federal and state government commitment to clean energy expansion and the industry’s response to those goals. These projects have the potential to create tens of thousands of jobs, reduce our nation’s dependence on foreign energy, provide coastal cities with reliable clean power, and help the U.S. meet its emissions reduction goals.” 

The Offshore Wind Market Report underscores the crucial role that states are playing in driving U.S. offshore wind procurement. East coast states, like New York and New Jersey, have set procurement targets totaling over 51,000 MW. In total, ten states have combined offshore wind targets of over 81,000 MW. 

The new report emphasizes the economic impact of offshore wind on domestic shipbuilding, with more than 30 new vessels currently on order or under construction to support the industry. 

The domestic supply chain for offshore wind is also set for significant growth, with fourteen facilities announced or under construction. Investment announcements for major offshore wind components exceed $1.7 billion, and with three state solicitations pending, more supply chain investments are anticipated, bolstering the sector’s expansion. 

Despite these encouraging trends, project costs are rising due to supply chain disruptions, commodity price increases, macroeconomic inflationary pressures, and higher interest rates. Rising steel prices in particular pose challenges for offshore wind developers, as steel represents a significant portion of project material costs. Lengthy and unclear permitting and regulatory timelines make these issues worse. Resolution of these permitting and siting challenges, alongside improving economic conditions, would strengthen the economic viability of offshore wind projects.  

Hensley added, “While the U.S. offshore wind industry is making tremendous strides, it’s essential to address these challenges to ensure the long-term economic viability of these projects. A strong, collaborative approach between industry stakeholders and government bodies will help us tackle obstacles – like clarifying permitting processes – and realize the full potential of offshore wind as a key component of our clean energy future.” 

Key Takeaways from the Report: 

• U.S. Offshore Wind Pipeline: 42 MW currently online, 51,377 MW in development pipeline across 32 leases. 
  • East Coast dominates with 84% of the pipeline, accounting for 43,115 MW. 
  • Early development projects represent 33,875 MW, while advanced development projects account for 16,564 MW. 
• Leading States: Ten states have combined offshore wind procurement targets of over 81,000 MW. 
  • New York leads with 4,362 MW of capacity in the pipeline, followed by New Jersey with 3,758 MW. 
• Revenue: 2022 BOEM lease sales generated nearly $5.4 billion in federal revenue. 
  • Prices were highest in the February 2022 New York Bight auction, averaging $8,313/acre, but were lower in Carolina Long Bay and California. 
• Manufacturing: Offshore wind is driving domestic shipbuilding and a growing domestic supply chain, with over 30 vessels on order or under construction. 
• Headwinds: Project costs are increasing due to supply chain disruptions, commodity price increases, and inflation, with steel prices as a notable concern. 
  • Lengthy permitting and regulatory timelines exacerbate these issues. 

 The Offshore Wind Market Report is accessible here.   

“ACP urges swift finalization of the modernization rule so that we can fully realize the potential of our abundant offshore wind resources,” said Josh Kaplowitz, ACP Vice President of Offshore Wind. “The offshore wind industry needs a regulatory structure that reflects how the industry works, and this rule is an important step forward as we work together to harness more domestic clean energy that will reduce pollution, make our country more energy independent, and support local economies.” 

The proposed rule would modernize regulations governing offshore wind development to reduce administrative burdens for both developers and regulatory agencies, provide developers with greater certainty and reduced costs, and introduce more regulatory flexibility while maintaining a commitment to environmental stewardship. The comments submitted today amplify key elements of the proposed rule for emphasis and make recommendations for strengthening additional aspects of the rule. 

ACP supports BOEM’s overall goals and agrees with the urgent need to reduce administrative burdens, costs, and uncertainty and to allow more flexibility in offshore wind development. Current regulations, largely unchanged since 2009, have long needed to be updated to incorporate lessons learned over the last 14 years and to support the goal of delivering affordable, reliable clean energy to all Americans in an environmentally safe way. 

Read the full text of the comments.

“No American industry enjoys being used as a pawn in partisan political negotiations. The American Clean Power Association is nevertheless confident that Congress and the Administration will not interrupt the burst of private sector investment in American clean energy production and manufacturing. In the last nine months, forty-six new clean energy manufacturing and production facilities have been announced, creating high wage jobs in communities across the country.

“There is real work to do to support this American energy revolution. Congress must act to enable more efficient project permitting, facilitate the construction of new energy transmission and distribution and help American employers support and train hundreds of thousands of new workers. ACP is eager to work with Republicans and Democrats who share our commitment to secure, affordable and clean domestic energy.”

“Today’s action from BOEM is another step in advancing offshore wind power across the East Coast. A robust lease sale in the Gulf of Maine will position the region as a global leader in floating offshore wind manufacturing and deployment while creating good-paying American jobs. Offshore wind can be built in the Gulf of Maine in a manner that will allow this industry, commercial fishing, and ocean ecosystems to coexist and thrive.” 

“In the last nine months, the clean energy industry has announced 46 major manufacturing facilities and scores of clean energy projects in communities across the country. If enacted, today’s actions would jeopardize these investments and thousands of good paying American jobs. The American Clean Power Association is interested in working with Republicans and Democrats on permitting reform, energy security, and the real challenges facing the energy sector and our economy. Congress should not waste time or energy on political messaging bills that do not advance the national interest.”