New York Offshore Wind Farm Offers Hope for Nascent Industry

The first commercial-scale offshore wind installation in the United States is powering roughly 70,000 homes in Long Island, New York.

1 minute read

October 16, 2024, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Close-up of top of white offshore wind turbine with other turbines in sea in background.

Photocreo Bednarek / Adobe Stock

The South Fork Wind Farm off the coast of Montauk, New York is the nation’s first commercial-scale offshore wind farm and a bright spot in a struggling industry that “offers tangible evidence that wind projects can work,” writes Pippa Stevens for CNBC News.

The project produces enough power for 70,000 homes annually, which it sells to the Long Island Power Authority. “Each turbine is connected to an offshore substation – the first of its kind built in the U.S. – which is connected to the local power grid in East Hampton, New York, via a 65-mile subsea and underground cable.”

The growth of the offshore wind industry has come in fits and starts, with interest rates and an uncertain, specialized supply chain driving up project costs and forcing companies to cancel some projects altogether. Because operators sign long-term contracts with power purchasers long in advance of construction, ballooning costs can make some projects financially unfeasible. 

“The U.S. does have 58 gigawatts of capacity under development, according to American Clean Power, but some of those projects won’t come online for years, and there is no guarantee all of them will be built.” However, industry experts are optimistic that the sector is in a period of readjustment and will bounce back as components and skilled labor become more available.

Sunday, October 13, 2024 in CNBC

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