The US Department of Energy (DoE) has reported that offshore wind’s substantial expansion in the country was imperilled last year by converging factors of supply chain turmoil, inflation and rising financing costs that “raised the level of market uncertainty” but found that the nation's climate legislation is underpinning continued growth.

Project costs rose up to 30% in 2022, increasing levelised cost of energy (LCOE) for the sector to $89 per MWh, the department said in its Offshore Wind Market Report: 2023 Edition, released Thursday.