Currently, most of the specialized vessels and expertise come from Europe. Renting the large crane ships needed for offshore wind turbine installation can cost hundreds of thousands or even millions of dollars per day. The increasing size of turbines requires larger ships, further increasing costs. The speaker emphasizes the need to standardize turbine design to control costs. Retired nuclear and coal power plant sites are being considered for wind turbine development, particularly along the East Coast, to utilize existing grid connections and minimize transmission costs. The US and other countries are benefiting significantly from Europe's experience in developing offshore wind technology, including installation techniques and floating turbine technology. Onshore wind is significantly cheaper than offshore wind (by a factor of three or more). Offshore wind costs have been increasing due to factors like inflation and rising interest rates, which can have a disproportionate impact on project costs. Repowering, replacing older turbines with newer, more efficient models, is a common practice in the US wind industry, driven by economic and tax incentives. This is contrasted with the problem of orphan oil and gas wells, where decommissioning is often neglected. A major obstacle to further offshore wind development in the US is the need for significant upgrades to the transmission and distribution grid, particularly along the East Coast. Without these upgrades, many planned projects will not be viable. While wind energy currently accounts for about 10% of US electricity generation capacity, its actual contribution in terms of energy produced is lower. The future growth of wind energy depends heavily on grid upgrades. The speaker speculates that in the next five years, the US will add 5-6 gigawatts of offshore wind capacity, but further growth will be limited by grid constraints.
Currently, most of the specialized vessels and expertise come from Europe. Renting the large crane ships needed for offshore wind turbine installation can cost hundreds of thousands or even millions of dollars per day. The increasing size of turbines requires larger ships, further increasing costs. The speaker emphasizes the need to standardize turbine design to control costs. Retired nuclear and coal power plant sites are being considered for wind turbine development, particularly along the East Coast, to utilize existing grid connections and minimize transmission costs. The US and other countries are benefiting significantly from Europe's experience in developing offshore wind technology, including installation techniques and floating turbine technology. Onshore wind is significantly cheaper than offshore wind (by a factor of three or more). Offshore wind costs have been increasing due to factors like inflation and rising interest rates, which can have a disproportionate impact on project costs. Repowering, replacing older turbines with newer, more efficient models, is a common practice in the US wind industry, driven by economic and tax incentives. This is contrasted with the problem of orphan oil and gas wells, where decommissioning is often neglected. A major obstacle to further offshore wind development in the US is the need for significant upgrades to the transmission and distribution grid, particularly along the East Coast. Without these upgrades, many planned projects will not be viable. While wind energy currently accounts for about 10% of US electricity generation capacity, its actual contribution in terms of energy produced is lower. The future growth of wind energy depends heavily on grid upgrades. The speaker speculates that in the next five years, the US will add 5-6 gigawatts of offshore wind capacity, but further growth will be limited by grid constraints.