North America’s offshore wind sector, though still in its early stages compared to Europe and Asia-Pacific, is positioned for significant long-term growth — driven primarily by developments in the United States.
According to the Global Wind Energy Council (GWEC), North America region had 172 MW of installed offshore wind capacity as of early 2025, with four utility-scale projects totaling 5 GW under construction.
The outlook from GWEC Market Intelligence forecasts 13 GW of offshore wind to be added in North America from 2025 to 2034, with nearly half of this capacity expected to come online in the next five years. The U.S. is projected to account for 92 percent of this growth, while Canada is expected to contribute about 1 GW.
However, investment trends and policy shifts are reshaping expectations. The initial wave of optimism in the U.S. offshore wind market has been tempered by macroeconomic challenges such as high inflation, rising capital costs, and a strained local supply chain — particularly shortages of specialized vessels. These conditions have created major roadblocks for developers. By early 2024, 13 fixed-bottom offshore wind projects totaling nearly 12 GW were impacted, with nine projects — representing 7.7 GW — either losing offtake agreements or being cancelled outright.
The policy landscape took a sharp turn in January 2025 when President Donald Trump re-entered the White House. His administration issued an Executive Order to temporarily halt all offshore wind leasing on the U.S. Outer Continental Shelf, stalling new project development. This action has created additional regulatory uncertainty, including the potential revocation of permits previously awarded under the Biden Administration. Projects such as the 2.8 GW Atlantic Shores and the 810 MW Empire 1 remain under scrutiny, despite recent efforts to lift stop-work orders.
Investment appetite has also been weakened by newly imposed tariffs on imported materials and components, many of which are essential for offshore wind construction. As a result, several developers have pulled back, and the project pipeline is thinning. GWEC has revised its offshore wind capacity forecast for the U.S. by 2030 downward — from 15 GW to below 6 GW. Key projects that are still expected to reach completion include Vineyard Wind 1, Revolution Wind, Coastal Virginia Offshore Wind (CVOW), Empire Wind 1, and Sunrise Wind.
Strategically, the North American offshore wind sector is now at a crossroads. While the long-term potential remains, the near-term investment outlook is constrained by policy reversals, economic headwinds, and supply chain disruptions. Even if a future administration reopens support for offshore wind, regaining momentum and advancing GW-scale projects may take several years. For investors and developers, the path forward will likely require resilience, policy clarity, and a strong commitment to domestic supply chain development.
Baburajan Kizhakedath