Experts estimate that over 1,000 GW of wind energy could be built off the East Coast of the United States alone. And while there are no offshore wind farms currently in operation (or even under construction) in the US, there are a number of projects in the development pipeline, the most famous of which is the proposed project off the coast of Cape Cod, known as Cape Wind.

Well, the nine-year battle to permit the best known of the lot, Cape Wind, inched closer to a conclusion yesterday as Secretary of the Interior Ken Salazar called the interested parties together for a series of meetings he hopes will produce a compromise -- and the global offshore wind industry is paying close attention.

The Secretary set forth a March 1 deadline for stakeholders to come to a compromise or he would do it himself, he said.

On a phone call yesterday with reporters, Cape Wind CEO Jim Gordon said that he is "convinced that when Secretary Salazar has the complete record before him that the verifiable public benefits of creating jobs, greater energy independence, cleaner air and mitigating climate change will far outweigh any perception of negative impacts."

"The offshore wind industry is watching," said Gordon of the wait-and-see stance offshore wind developers are taking on projects in the U.S.. With no precedent of the U.S. regulatory system actually approving a site for an offshore wind farm, wind farm developers are rightly concerned to invest in U.S. offshore projects.

In Europe, however, it's a whole different ballgame. By the end of 2009, total installed offshore capacity in Europe was approximately 2,000 MW. And the share of European offshore wind generation is expected to grow substantially in the coming years, where up to 55,000 MW are anticipated to be installed by 2020.

"We're 20 years behind Europe," added Gordon. "If a project like Cape Wind can't be built it will send a message to the offshore wind industry."

And that message won't be a positive one.

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