Tremendous investor interest, falling costs, technological advancements and state mandates are all contributing to offshore wind development in the United States, according to a new report by S&P Global Ratings. Nonetheless, the risks associated with building offshore remain meaningful, and U.S. offshore wind development is currently uneconomical, according to the rating agency.
The new report, entitled Foresight Is 2020: Tailwinds For U.S. Offshore Expansion, includes S&P Global Ratings’ levelized cost of electricity estimates for U.S. offshore wind, as well as in-depth analysis of the four key medium-term trends that are driving the asset class’ development.
S&P Global Ratings believes this power source’s levelized costs of energy are still uneconomical in the United States, at more than $85 per megawatt hour, compared with those of competing technologies.
“We’re cautiously optimistic about prospects for offshore wind energy outp