Utility System Construction NAICS 2371

Mar 18, 2026 - Offshore Wind Reaches Milestones

• The US offshore wind industry reached key milestones as the 700 megawatt Revolution Wind project off Rhode Island began delivering power and the 800 megawatt Vineyard Wind 1 project off Massachusetts completed construction, according to Utility Dive. Both projects had faced delays after a federal stop-work order halted five offshore wind developments, but court rulings allowed construction to resume. Revolution Wind is expected to power more than 350,000 homes and businesses under long-term agreements, while Vineyard Wind 1 is already supplying electricity to the grid as final testing continues. The progress marks a significant step for the sector, which previously had only one fully operational commercial-scale project. Industry leaders say these developments demonstrate continued momentum despite regulatory challenges and highlight offshore wind’s growing role in expanding US renewable energy capacity.
• Rising US demand for electricity will mostly be driven by increases in utility-scale solar generation, according to the US Energy Information Administration (EIA). Solar generation is forecast to increase 17% in 2026 and another 23% in 2027. Much of the growth will be in Texas, as the amount of solar electricity supplied to the grid by the Electric Reliability Council of Texas (ERCOT) is expected to increase from 56 billion kilowatt-hours (BkWh) in 2025 to 106 BkWh in 2027. Total US utility-scale solar generation is forecast to rise from 290 BkWh in 2025 to 424 BkWh by 2027. Solar's share of total US electricity generation capacity is forecast to rise from 7% in 2025 to 8% in 2026 and 9% in 2027.

• In mid-March, the US Department of Energy announced a $1.9 billion funding opportunity to expand grid capacity through reconductoring and advanced transmission technologies under its SPARK program, according to Utility Dive. Applications are due in May, and project selections are expected in August. The initiative continues efforts from the Biden-era Grid Resilience and Innovation Partnerships program, which awarded about $7.4 billion as of late 2024. Transmission upgrades are seen as a faster, lower-cost way to address rising electricity demand driven by data centers, manufacturing, and electrification. Grid modernization has become more urgent as increased power demand has driven electricity prices higher. Average 2026 residential rates are projected to reach 18 cents per kilowatt hour, up about 37% from 2020, according to the US Energy Information Administration. Industry groups say the funding will help utilities modernize infrastructure, improve grid efficiency, and scale capacity. However, experts note upgrades must be paired with new transmission construction to meet long-term demand.
• Global corporate clean power purchase agreement activity declined for the first time in nearly a decade in 2025, falling 10% to 55.9 gigawatts as rising power prices and policy uncertainty slowed broader market participation, according to BloombergNEF. The market increasingly reflects a divide between large technology companies and other corporate buyers. Meta, Amazon, Google, and Microsoft accounted for 49% of global activity, with Meta and Amazon alone contracting 20.4 gigawatts, including 4.7 gigawatts of nuclear power. The United States remained the largest market with a record 29.5 gigawatts of deals, though the number of unique corporate buyers dropped 51% to 33 as smaller companies pulled back. For the renewable energy development industry, demand remains strong from hyperscalers building data center capacity, while developers are increasingly offering hybrid projects that combine solar, wind, storage, or nuclear to provide more consistent power supply.