Offshore Wind Industry in the United States: A look into the Current state & Future Development Perspectives

Emil Fleischer & Endri Lico

Student thesis: Master thesis

Abstract

The following analysis aims to evaluate the current status quo of the offshore wind energy industry in the U.S. while comparing to other energy suppliers in the U.S. electricity market. Thus, the existing surrounding business environment and competitive rivalry in the industry will be analyzed and evaluated in order to gain a deeper understanding of the powers that drive the industry’s current performance and shape the future growth & development. Furthermore, a twodimension framework will be developed, using the PESTEL model and Porter’s Five Forces framework, to determine the industry’s further development and deployment in the U.S. offshore wind market in the next decade. This thesis, therefore, requires full comprehension of the offshore wind industry and its principles that affect the operation and determination of the influential factors that shape the future growth of the given industry. The authors conducted an exploratory/qualitative research design, relying on empirical data, as well as conducted interviews via email with field experts in order to gain practical insights and a broader perspective of the factors that govern the U.S. offshore wind industry. Through detailed and exhaustive analysis of the surrounding environment and competitiveness factors of the U.S. offshore wind industry, it has been argued that the current U.S. offshore wind industry is flourishing thanks to falling costs from technology development, substantial support by State policymakers, and public support as the concern over environmental issues is growing. However, the uncertainties regarding current and future Federal position over offshore wind industry (OWI), the pace of technology development, and the competition from other sources may be a break to the industry’s surge. Besides, analysis of the U.S. OWI also revealed a business landscape with high competition-in terms of substitute sources and prices- and significant barriers to entry, where OEMs dominate and low bargaining power from the side of customers. Finally, a two-dimensional framework shaping three scenarios for the future was extracted by the analysis of the current status of the industry. The most likely scenario, according to field experts evaluation, was Moderate Deployment Scenario.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2019
Number of pages126
SupervisorsTorben Juul Andersen