United States: Three 2.9 GW offshore wind farms in New England

Massachusetts and Rhode Island launch three offshore wind projects, representing 2.9 GW of capacity, strengthening their position in renewable energy production.

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SouthCoast Wind project, États-Unis

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Massachusetts and Rhode Island are committing to three new offshore wind projects totaling 2.9 gigawatts (GW) of capacity.
These initiatives, the result of a joint solicitation last March, aim to boost the energy capacity of both states while meeting COâ‚‚ emissions reduction targets.
The selected projects, SouthCoast Wind, New England Wind 1 and Vineyard Wind 2, represent major milestones in the evolution of the regional energy mix.
New England Wind 1 is led by Avangrid Inc, SouthCoast Wind by a joint venture between EDP Energias de Portugal and Engie, while Vineyard Wind 2 is under the management of Vineyard Offshore, backed by Copenhagen Infrastructure Partners.
These wind farms should start generating electricity towards the end of the decade, contributing to the region’s energy independence and stability of supply.

US Offshore Wind Market Context

After a year 2023 marked by project abandonments and write-downs totaling $9.1 billion, the US offshore wind industry is returning to a certain equilibrium in 2024.
This stabilization is crucial for the sector, which has to contend with high construction costs, regulatory constraints and volatile financial markets.
Projects in New England reflect a more cautious, structured approach to achieving tangible energy production targets.
Federal state policies are now focusing on the increasing integration of renewables into their power grids, with Massachusetts aiming for a 50% reduction in COâ‚‚ emissions from the energy sector by 2030 and a complete transition by 2050.
The state of Rhode Island, meanwhile, is targeting 100% renewable coverage of its energy needs by 2033.

Economic implications and financing strategies

Progress on these projects is essential to attract investment and strengthen the local value chain.
The development of offshore wind power could generate new business opportunities, particularly in shipbuilding, port logistics and specialized maintenance services.
However, infrastructure costs, local acceptability issues and regulatory requirements remain major challenges.
The companies involved seek to minimize risks through financing arrangements and strategic partnerships, guaranteeing an adequate return on investment.
Financial incentives, such as tax credits and subsidies, play a key role in these business models, but the stability of public policies will be crucial to the long-term viability of the projects.

Regulatory Challenges and Growth Opportunities

The regulatory framework for offshore wind development remains complex, with approval processes involving coordination between various state and federal agencies.
Necessary adjustments to existing regulations will have to be made to meet planning and marine safety imperatives.
The New England projects could serve as models for other regions in terms of risk management and integrated planning.
The next steps will be to overcome logistical constraints and finalize equipment supply and construction agreements.
Industry players are closely following the progress of these projects, as they could determine the future direction of the offshore wind industry in the USA.

The Trump administration plans to revoke federal approval of the New England Wind project, jeopardising offshore wind contracts representing 2,600 MW of capacity off the northeastern US coast.
Orsted and two U.S. states have taken federal legal action to contest the abrupt halt of the Revolution Wind project, a $5 billion offshore venture now at risk of prolonged suspension.
SPIE Wind Connect will carry out subsea connections for phase II of the TPC project, a major development in Taiwan’s offshore wind sector with a projected annual capacity of 1,000 GWh.
Envision Energy launches its first project in Turkey in partnership with Yildizlar Group, adding 232 MW to the national wind capacity in Karaman province.
ABO Energy maintains its annual targets despite a drop in half-year profit, relying on cost-cutting measures and early project sales to secure cash flow.
Energiekontor has closed financing for two wind projects in Verden, with a combined 94 MW, with construction starting this year and commissioning scheduled for 2027.
South Korea has rejected all projects using foreign turbines in its 2025 offshore wind auction, marking a strategic shift in favour of local industry and energy security.
The Danish Energy Agency confirmed the rejection of 37 feasibility study permit applications, citing European Union state aid rules and lack of competition.
With an AUD$3 billion investment, ACEN launches one of Tasmania’s largest private projects, aiming for commissioning in 2030 and annual supply for 500,000 households.
In France, a 12.9 MW wind farm financed by local actors has been commissioned in Martigné-Ferchaud, showcasing an unprecedented model of shared governance between citizens, local authorities and public investment companies.
The governors of five states urged the Trump administration to maintain permits for threatened offshore wind projects, citing massive investments and jobs at stake in a nascent industry.
Green Wind Renewables is developing a 450 MW wind farm in the Wheatbelt region of Australia, with up to 75 turbines and an estimated annual output of 1.5 TWh.
German group RWE has commissioned five new power plants in France, adding 83 MW to its portfolio, following repeated successes in tenders organised by the Energy Regulatory Commission.
The 600 MW onshore wind farm in Laos achieves commercial operation four months early, injecting power into Vietnam via a 500 kV interconnection and consolidating an international financing package of $950mn.
Equinor confirms its participation in Ørsted’s capital increase, aiming to maintain its 10% stake and support the financial stability of the Danish group facing headwinds in offshore wind.
Chinese manufacturer Dongfang Electric has installed a 26 MW offshore wind turbine in Shandong province, setting a double world record for power and rotor diameter.
Facing unforeseen cost increases and a tightening regulatory environment, Mitsubishi Corporation is pulling out of three offshore wind projects, casting doubt on Japan's renewable energy ambitions.
With 323 millions USD in cash, Polenergia strengthens its investments in offshore wind, solar and storage, targeting more than 2.3 GW of new energy capacity in Poland.
French group Valorem has commissioned the ViIatti wind complex in Finland, made up of two farms totalling 313 MW and an estimated annual output of 1 TWh.
The Revolution Wind project, already 80% complete, has been halted by the U.S. administration over national security concerns, creating major uncertainty in the sector.

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