North America Shore Power Market

The North America shore power market's coastal regions is primarily driven by strict government regulations and state or provincial mandates that effectively encourage or necessitate a reduction in emissions from at-berth operations. The At-Berth Regulation in California and subsequent updates have ensured substantial rates of compliance for container, cruise, Refrigerated Container and Roro ships with shore connections or CARB-approval for capture and control systems, making shore-side infrastructure demand forecasts relatively reliable. Other regions, including provinces of British Columbia and the state of Washington on the East Coast, as well as various seaports, have accelerated clean-port projects and reporting plans, making business cases for shore-side cold-ironing infrastructure at these regions relatively clear. Federal government seed money and facilities financing projects, including MARAD’s PIDP and various federal and state rounds for various projects, often include underlying infra projects for shore power and reduce costs associated with shore-side infra implementation.

A major constraint relates to high capital costs associated with shore-side connections, as waterfront transformer stations, frequency-converter systems, distribution switchgear, cable and related works, and potentially grid enhancements, form high capital expenditure. There is also issue of co-ordination, as seaports would be apprehensive about making large expenditures without reaching a critical mass of compatible vessels calling at these seaports. Shipping would delay shore-side retrofits before seaport capacity and attractive tariffs become more widespread. Even with support through grants, these would not be comprehensive enough either for the shore side cost or shipping retrofits. A classic issue of split incentives arises here, more so for private seaport terminals and short-term investment cycles and older ships requiring expensive dry docking. Unless attractive financial models emerge for concessional loans, and potentially for shore-side energy as a service, seaport terminals as well as shipping would end up delaying market entry, thus postponing market growth despite government mandates and proven air emissions reduction benefits

By combining shore power with on-site solar and energy storage, new business models and market opportunities emerge for PPA, green tariffs, and peak shaving contracts. Energy storage can mitigate peak demand on the grid, reduce costs associated with grid infrastructure, and enable a lower-carbon energy offering that, with ESG procurement and broader decarbonization strategies at play, becomes an increasingly attractive service offering for shipowners. Additionally, these bundled solutions will offer opportunities for revenue stacking. The added benefit here is that with federal and state incentives offered for solar projects and grid modernization, a blending finance model will enable lowering costs and speed up implementation. As a whole, these energy solutions increase significantly the viability of shore-power projects. As energy solution suppliers and integrators, these projects add scale opportunities for implementation consultants.

Achieving seamless shore-power scale-up in North America requires harmonized technical standards (connector types, voltage/frequency compatibility, metering and communications) and clear commercial frameworks for tariffing, liability and metering areas that remain uneven across ports and ship classes. Differences in frequency (50/60 Hz), connection protocols, and port-specific installation practices increase engineering complexity and transaction costs for shipowners and suppliers. Inconsistencies with measurement and billing procedures, an associated national template for cost recovery, and uncertainty regarding liability related to problems with electrical power issues will make it more expensive and difficult from a contractual perspective. Ensuring harmony on shore power will be a challenge that requires cooperation among various stakeholders.