Vessel Construction for Offshore Wind Power Generation (CRS Report for Congress)
| Release Date |
Sept. 12, 2023 |
| Report Number |
IF12491 |
| Report Type |
In Focus |
| Authors |
John Frittelli |
| Source Agency |
Congressional Research Service |
Summary:
The Biden Administration’s goal of having 30 gigawatts of
offshore wind power generation installed by 2030 will
require construction of at least 2,100 wind turbines,
according to the Department of Energy (DOE). Seven
turbines are currently operating in state and federal waters.
Construction of two additional offshore wind farms started
in summer 2023 and another is to begin construction later in
2023. This activity is taking place in coastal waters from
Virginia to Massachusetts. More construction projects are
planned for other coastal areas, though project cost
inflation, including higher interest rates, is prompting
reevaluation of some installations.
To construct and maintain offshore wind turbines, a number
of different vessel types are needed. Many of these vessels
must be built in the United States pursuant to a 1920 law
commonly known as the Jones Act (P.L. 66-261). Vessel
construction is underway. Several smaller and simpler
vessels have been built, but the larger, more complicated
vessels can take three to four years to complete. Without
more domestic shipbuilding activity for these larger, more
complicated vessels, DOE estimates that about half of
planned offshore wind projects will be delayed beyond
2030. In addition to reconsidering the 1920 import ban of
foreign-built vessels, Congress can influence vessel cost
and availability through existing loan, grant, and tax shelter
programs provided to domestic shipbuilders.
