April 23 (Reuters) - Installed offshore wind capacity in

the U.S. grew to 242 megawatt (MW) in the first quarter of the

year from 42 MW in the previous quarter, the Oceantic Network

said in its report, showcasing a recovery in a previously

volatile industry.

WHY IT'S IMPORTANT

The offshore wind industry is expected to play a major role

in helping several states and, the Biden administration meet

goals to decarbonize the power grid and combat climate change.

The industry had a tough 2023 after developers wrote off

billions of dollars in impairment charges due to high-interest

rates, supply chain snags, and rising inflation.

CONTEXT

Last year, companies highlighted that offshore wind projects

may not move forward unless the requirements for subsidies under

the Inflation Reduction Act (IRA) are eased. The IRA requires

clean energy projects seeking bonus tax incentives to be built

with American-made equipment and located in low-income

communities.

BY THE NUMBERS

The report highlighted that 4,000 MW of capacity would be

developed across three projects by the summer.

One thousand megawatts of offshore wind can power around

500,000 U.S. homes.

The U.S. market now also has eight projects with

construction approval, representing between 10,200 and 11,300 MW

of potential generation, the report said.

KEY QUOTE

"The nation celebrated its first utility-scale project

finishing installation, officially moving the market from

demonstration to commercialization" - Oceantic Network

WHAT'S NEXT

The latest problem to hit the sector is the New York State

stalling three major offshore wind-energy projects after General

Electric Vernova changed the turbine design, which the

state said "materially altered" the plans.

New York had provisionally approved the projects in October

2023.