Offshore Wind Energy
Massachusetts Gains Foothold in Offshore Wind Power, Long Ignored in U.S.

The wind farms have increasingly become mainstream sources of power in Northern Europe, but the United States has largely not pursued the technology.
On the waterfront of this fabled former whaling hub, the outlines of a major new industry are starting to appear.
Crews of research boats perform last-minute tuneups before heading out to map the bottom of the Atlantic Ocean. A large weather buoy decked out with gear for measuring wind speeds waits on the quay for repairs. And a 1,200-foot stretch of the port has been beefed up to bear enormous loads.
New Bedford hopes to soon be the operations center for the first major offshore wind farm in the United States, bringing billions of dollars of investment and thousands of jobs to the town and other ports on the East Coast.
On Wednesday, that effort took a major step forward as the State of Massachusetts, after holding an auction, selected a group made up of a Danish investment firm and a Spanish utility to erect giant turbines on the ocean bottom, beginning about 15 miles off Martha’s Vineyard. This initial project will generate 800 megawatts of electricity, roughly enough to power a half a million homes. At the same time, Rhode Island announced it would award a 400-megawatt offshore wind project to another bidder in the auction.
The groups must now work out the details of their contracts with the states’ utilities.
“We see this not just as a project but as the beginning of an industry,” Lars Thaaning Pedersen, the chief executive of Vineyard Wind, which was awarded the Massachusetts contract, said in an interview.
Offshore wind farms have increasingly become mainstream sources of power in Northern Europe, and are fast becoming among the cheapest sources of electricity in countries like Britain and Germany. Those power sources in those two countries already account for more than 12 gigawatts of electricity generation capacity.
But the United States has largely not followed that lead, with just one relatively small offshore wind farm built off the coast of Rhode Island. Currently, the entire country’s offshore wind capacity is just 30 megawatts.
Jeff Grybowski, chief executive of Deepwater Wind, which won the Rhode Island portion, said that together the two projects add up to a European-scale package. “This shows the U.S. is catching up rapidly to the developments in Europe,” he said.
Such projects have run into opposition here over both cost and aesthetics — utilities are typically required to opt for the cheapest sources of power, and communities have resisted plans regarded as eyesores. Senator Edward M. Kennedy helped block a wind project off the coast of Cape Cod that would have been visible from the family estate.
But the technology has the potential to bring large supplies of energy to the Northeast. Arrays of wind turbines with generation capacities comparable to major conventional power plants would be mostly out of sight, albeit within easy transmission reach of large population centers like Boston and New York City.
“We could run the whole East Coast on offshore wind,” said Amory B. Lovins, co-founder and chief scientist at the Rocky Mountain Institute, a Colorado-based nonprofit organization that advises on renewable energy.
Massachusetts is looking to capitalize. It wants to add 1,600 megawatts of electricity by 2027. That would be enough to power a third of all residential homes in the state and supply 11 percent of its overall needs. The Massachusetts Clean Energy Center, a state agency, also estimates that the projects could generate 9,850 jobs over 10 years, and add $2.1 billion to the state’s economy.
Developers say the state’s plan includes a series of projects large enough to help spawn a network of local suppliers of everything from components for the turbines to services like maintaining them, and drive down costs. Other states are pushing forward as well. Connecticut will soon name a developer for an offshore wind project of its own, while New York and New Jersey have both announced ambitious plans.
New England is particularly well suited to offshore wind farms. There is not enough land for wind turbines onshore, and the area is not ideal for solar power. At the same time, Massachusetts has been under pressure to find new sources of energy to replace aging conventional and nuclear plants, as well as meet targets for reducing greenhouse gas emissions blamed for climate change.
The state is betting that, by investing in offshore wind decades after Northern Europe first tested the technology, it can avoid some of the growing pains experienced across the Atlantic.
For years, projects there required large government subsidies to be economically viable. Recently, technical advances and plummeting prices have meant that countries like Germany and the Netherlands have been able to award offshore wind projects with zero subsidies. As a bonus, offshore wind farms have supported thousands of jobs in port cities in the region.
Two of the three bids in Massachusetts came from European developers. The winner was a joint venture of Copenhagen Infrastructure Partners, a Danish renewable energy investment firm, and a subsidiary of Iberdrola, a Spanish utility. The other bids came from a consortium led by the Danish wind giant Orsted, and Deepwater Wind, which is based in Providence, R.I., and mainly owned by D.E. Shaw, an investment firm.
“We know in light of Northern Europe’s experience with offshore wind that many U.S. ports will benefit from the arrival of the industry here,” Jon Mitchell, the New Bedford mayor, said in an interview.
New Bedford has benefited from a lucrative sector before. In the mid-19th century, its whaling industry made it one of the wealthiest cities in the United States. “Nowhere in all America will you find more patrician-like houses; parks and gardens more opulent, than in New Bedford,” Herman Melville wrote in his epic novel, “Moby-Dick.”
In the hopes of another such boost, the Massachusetts Clean Energy Center, the state agency, has already spent $113 million dredging the harbor and expanding and reinforcing a 29-acre marine commerce terminal. The state is preparing it to load the components of turbines that stretch up to 600 feet high and weigh many tons onto special vessels for installation at sea.
Whether Massachusetts can pull of its ambitious plans will depend to some degree on local issues — and not everyone in the area is enthusiastic.
In particular, some of New Bedford’s fishermen are worried. The city’s port is already home to hundreds of fishing boats, as well as seafood auction houses and processing plants. It generates about $3.3 billion a year and supports about 6,200 jobs, according to the local authorities.
“You don’t want to destroy one type of sustainable energy harvest with another one,” said Kevin Stokesbury, a professor at the School for Marine Science and Technology at the University of Massachusetts at Dartmouth.
Eric Hansen, a scallop fisherman, said that he and his colleagues were concerned about threading their way through a relatively narrow allotted path through spinning turbines.
“Think fog, heavy seas,” he said.
Even so, wind power is gaining its adherents.
Opposition to offshore wind in the state appears to have quieted since the death of Mr. Kennedy in 2009. The senator and his family successfully resisted a project off Cape Cod that would have been the first offshore wind farm in the United States, a project proposed in 2001.
The area’s high electricity prices may prove, counterintuitively, to be a plus. Power prices in Massachusetts are the second highest in the nation, behind only Hawaii’s, and high rates prevail in much of the rest of New England and in New York. As a result, customers might be more willing to pay the increased early prices for power generated by offshore wind.
The economic boost, too, is appealing, especially in a once-affluent city of 100,000 people.
Kevin McLaughlin employs more than 100 people in his shipyards across the harbor at Fairhaven, and has already won additional work from offshore operators.
“As long as there are boats that will be here,” he said, “it is business for us.” (Source: nytimes.com)
Offshore Wind Energy
Commission approves €5 billion Danish offshore wind support scheme

What’s in this news?
The European Commission has approved a €5 billion Danish State aid scheme to support offshore wind development. Covering the Hesselø and North Sea I Mid projects, the scheme is expected to play a key role in achieving the EU’s 2030 renewable energy targets and accelerating the transition to a net-zero economy.
The European Commission has approved a €5 billion (DKK 37.6 billion) Danish State aid scheme aimed at supporting offshore wind energy deployment.
The measure aligns with the objectives of the Clean Industrial Deal and is designed to contribute to the EU’s 2030 renewable energy targets.
Two offshore wind projects to be supported
The scheme will support the development of two major offshore wind farms:
- Hesselø Offshore Wind Farm
- Minimum capacity: 0.8 GW
- Expected annual generation: ~3.2 TWh
- North Sea I Mid Offshore Wind Farm
- Minimum capacity: 1 GW
- Expected annual generation: ~4.6 TWh
Combined, these projects are expected to generate electricity equivalent to approximately 25% of Denmark’s annual electricity production.

Two-way CfD mechanism
The support will be granted through a two-way Contract for Difference (CfD) mechanism:
- Producers receive payments when market prices fall below the strike price
- Producers pay back when market prices exceed the strike price
This design ensures both investor certainty and proper market functioning.
20-year support period
The scheme will run for 20 years and will be allocated via a competitive bidding process. Support will be based on potential generation capacity rather than actual production.
Supporting EU energy transition
The Commission concluded that the scheme is:
- Necessary and proportionate
- Supportive of the net-zero transition
- Effective in reducing fossil fuel dependency
and compliant with EU State aid rules.
Offshore Wind Energy
Is Türkiye Ready for Offshore Wind?

Is Türkiye Ready for Offshore Wind? Industry Perspectives Point to Industrial Potential
Offshore wind energy is becoming one of the fastest-growing segments of the global energy transition. As the sector expands across Europe, discussions around Türkiye’s offshore wind potential are also gaining momentum.
Industry representatives speaking during KEY – The Energy Transition Expo 2026 highlighted both the opportunities and the structural challenges facing offshore wind development in Türkiye.
According to DÜRED Chairman Murat Durak, Türkiye already has a significant industrial base that could support offshore wind projects.
A Strong Industrial Ecosystem
Durak pointed out that Turkish shipyards and heavy industry facilities are already capable of manufacturing various offshore structures and components.
Some shipyards are already involved in manufacturing for European offshore projects, indicating that Türkiye could potentially play a role within the broader offshore wind supply chain.
This industrial capacity suggests that Türkiye could position itself not only as a project developer but also as a manufacturing and supply hub for offshore wind equipment.
Port Infrastructure Remains a Critical Requirement
Despite this industrial capacity, Durak noted that one of the key missing elements is dedicated offshore wind port infrastructure.
Offshore wind projects require large-scale logistics operations for transporting turbine components, installing foundations, and maintaining offshore structures.
Developing suitable port infrastructure is therefore considered an important step for enabling large-scale offshore wind projects in Türkiye.
Supply Chain Opportunities
DÜRED Board Member Bilgihan Yaşacan emphasized the importance of the offshore wind supply chain.
According to Yaşacan, offshore wind development creates opportunities across a wide range of sectors, including:
- marine construction
- engineering services
- offshore platforms
- subsea cable installation
- heavy logistics and equipment manufacturing
He stressed that supporting the development of companies capable of operating in offshore environments will be essential for building a sustainable offshore wind ecosystem.
Regional Opportunities
Industry representatives also highlighted that offshore wind opportunities should not be viewed solely within Türkiye’s domestic market.
Potential offshore wind developments in the Mediterranean region and the Middle East could create additional opportunities for Turkish shipyards, engineering firms, and industrial suppliers.
The Mediterranean Could Become a New Offshore Market
While Northern European countries have led offshore wind development for many years, the Mediterranean region is still considered an emerging market.
According to sector representatives, this situation could create new opportunities for countries with strong industrial capabilities such as Türkiye.
If offshore wind projects begin to expand in the Mediterranean basin, Türkiye’s industrial sector could play an important role in supporting regional offshore wind development.
Offshore Wind Energy
UK Awards 8.4 GW in Europe’s Largest Offshore Wind Auction to Date

On 14 January 2026, the United Kingdom awarded a total of 8.4 GW of offshore wind capacity under Allocation Round 7 (AR7), marking the largest offshore wind auction ever held in Europe.
The awarded capacity includes 8.2 GW of bottom-fixed offshore wind and nearly 200 MW of floating wind projects. The new capacity is expected to generate enough electricity to power approximately 10 million homes.
Record competition drives competitive pricing
AR7 was one of the most competitive offshore auctions ever held in Europe. A record 19 projects, representing a combined potential capacity of 24 GW, were eligible to bid.
The strong competition resulted in 2024 strike prices of:
£91.20/MWh in England and Wales
£89.49/MWh in Scotland
These levels are approximately 40% lower than the cost of building and operating new gas plants in the UK (£147/MWh) and nearly 30% lower than new nuclear plants (£124/MWh).
The 8.4 GW of new offshore wind capacity is estimated to save UK billpayers nearly £1.7 billion per year compared to gas generation.
CfD framework proves effective
The UK’s two-sided Contracts for Difference (CfD) mechanism once again demonstrated its ability to de-risk projects and provide long-term revenue visibility.
With a total budget of £1.79 billion — exceeding the initial £1.1 billion allocation — the UK Government secured additional capacity to enhance energy security and economic resilience.
Following the failed AR5 round in 2023 and limited new capacity under AR6, AR7 represents a significant turning point for offshore wind deployment in the UK.
AR7 winning projects
AR7 awarded support to six bottom-fixed offshore wind projects and two floating wind projects:
| Project | CfD Capacity (MW) | Owner(s) | Strike Price (2024) | Delivery (Phase 1) |
|---|---|---|---|---|
| Awel y Mor | 775 | RWE (60%), Stadtwerke München (30%), Siemens Financial Services (10%) | £91.2/MWh | 2030/31 |
| Dogger Bank South | 3000 | RWE (51%), Masdar (49%) | £91.2/MWh | 2030/31 |
| Norfolk Vanguard East | 1545 | RWE | £91.2/MWh | 2029/30 |
| Norfolk Vanguard West | 1545 | RWE | £91.2/MWh | 2028/29 |
| Berwick Bank | 1380 | SSE Renewables | £89.49/MWh | 2030/31 |
| Pentland (floating) | 92.5 | Copenhagen Infrastructure Partners (80%), Eurus Energy (10%), Hexicon (10%) | £216.49/MWh | 2029/30 |
| Erebus (floating) | 100 | TotalEnergies (80%), Simply Blue Energy (20%) | £216.49/MWh | 2029/30 |
The 192 MW awarded to floating wind projects marks another step toward commercial-scale floating wind deployment. Industry stakeholders emphasise the need for tailored support schemes, clear auction timelines for floating wind, and infrastructure investment in ports to sustain momentum.
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