Looking at the offshore wind market, NREL’s analysis also finds it to have become more volatile in the past year, with project costs increasing due to inflation, interest rates, and supply chain uncertainty.

The Inflation Reduction Act of August 2022 may provide some relief to keep projects profitable, according to NREL, as it provides tax credit incentives for investing in offshore wind energy and the domestic supply chain while also potentially softening adverse impacts of rising costs due to inflation, supply chain constraints, and interest rates.