The answer so far is: Not much. The closure of these ports’ cargo operations has not yet had a massive effect on the U.S. economy outside of businesses that work directly with the shipping industry, like trucking. There is no single port — or coast, even — that serves as a chokepoint for renewables-related imports. Many components from East and Southeast Asia come through west coast ports that are staffed by longshoremen in a different union, the International Longshore and Warehouse Union; shipments were being diverted there for weeks leading up to the strike.
That’s not to say the industry can simply coast through a prolonged strike. But there are some differences between different sectors, especially wind and solar.
Wind
Much of the wind industry, especially offshore, runs on foreign-manufactured equipmentthat is then processed and assembled in the United States. “Almost 70% of all wind-specific imports that are tracked through trade codes came from Mexico, Germany, Spain, and India, with the remaining imports mostly from Canada and various countries in Europe and Asia,” according to a Lawrence Berkeley National Laboratory report on the wind industry.
At least so far, much of the wind business — including the offshore wind business — appears to have largely dodged substantial issues from the strike so far.
Orsted’s work at three East Coast ports in Connecticut, Rhode Island, and New York has been unaffected, a source familiar with the situation told me. And the Portsmouth Marine Terminal in Virginia, where 70 of those monopiles have been shipped, is continuing to operate normally, according to the Port of Virginia. (Virginia's offshore wind industry is still vulnernable to vagaries of international trade — last year, Siemens Gamesa cancelled a plan to build a blade manufacturing facility in Virginia, where Dominion Energy is working on an offshore wind project.)
While the East Coast is an active hub of offshore wind activity, if the greater wind industry were to be affected by a prolonged strike, it would likely happen in Texas, which is both a major importer of wind equipment and has the country’s largest wind power sector.
Texas is “the dominant entry point” for wind equipment, according to the Lawrence Berkeley report, with almost $1 billion in annual wind imports.
At least one of those ports is still operating. The Port of Galveston is so-far unaffected by the strike, a port spokesperson told me. The port has become a major importer of wind turbines. In June, the port said that 400 wind turbine components had come through the port just since April, and that another 300 or so would flow through “over the coming months.” So far this year, some 25,742 tons of turbine pieces have come through the port, largely from Spain, Denmark, and other countries in Europe.
Neighboring Port Houston, however, is being picketed and “not handling container operations at this time,” the Houston Chronicle reported. In the run-up to the strike, Port Houston said that imports of wind power equipment had “increased notably” in August. In 2020, the port imported some 19,000 tons of wind power equipment.
Solar
The Houston area also has a number of recently opened solar manufacturing facilities, where cells, often imported from Asia, are assembled into panels. Proximity to the port was one reason why the manufacturers set up in shop in the area, according to the Houston Chronicle. “When you look at Houston specifically, you have one of the best ports in the country,” SEG Solar chief executive Jim Wood said in a company release when the facility opened. (SEG Solar has said it plans to start manufacturing cells domestically, though it currently makes them in Indonesia.)
Sophie Karp, an analyst at KeyBanc, forecast in a note to clients that some renewables manufacturers could be “disproportionately affected” by the strike. U.S. manufacturer First Solar “is the top importer at the Port of Houston,” Karp wrote, importing the equivalent of 17,200 shipping containers in the last year. The Korean solar company Qcells, meanwhile, which has made massive investments in Georgia, is a major customer of the Port of Savannah, which has been shut down due to the strike and has imported 31,400 container equivalents, according to KeyBanc. Karp also speculated that companies like the inverter manufacturer Enphase or the solar tracking company Array “are likely to have some exposure through their supply chains as well.”
“If the strike continues for an extended period, supply disruptions in the U.S. solar market are likely,” Karp wrote — especially for solar companies “that do not have ample inventory cushion on the ground.”
Trade disruptions are nothing new for the solar industry, which saw imports slow in 2022after the passage of a law meant to ban companies from subsidizing forced labor in Xinjiang in Western China, where much of the raw material for the world’s polysilicon is mined. Just this week, fresh tariffs were slapped on solar cells from manufacturers in Southeast Asia, which officials say function as cover for Chinese solar businesses. In fact, the California Chamber of Commerce specifically warned of congestion in the state’s ports as solar companies hurried up their purchases of panels ahead of the new duty.
So far, the solar and renewables industry has been quiet about the strike, in comparison to their unified voice on tariffs. Other portions of the electrical industry have been more vocal.
“The electroindustry is one of the largest manufacturing sectors of the U.S. economy, with one of the most complex international supply chains of any industry,” Debra Phillips, president of the National Electrical Manufacturers Association, said in a statement. “Over $195 million per day of electroindustry goods, representing nearly 30% of the nation’s electroindustry imports, is now stranded in unloaded cargo ships, threatening widespread disruption to our critical grid infrastructure.”
NEMA was one of more than 250 business groups that signed a letter published Wednesdaythat called on the Biden White House to “to take immediate action to resolve this situation expeditiously.” While one major clean energy group, the American Clean Power Association, signed the letter, others such as the Solar Energy Industries Association and Advanced Energy United, did not.
ERCOT’s fuel mix from Monday, April 8, including during the solar eclipse.ERCOT
Federal Reserve Bank of New York
