Offshore wind developer Ørsted has delayed its New Jersey Ocean Wind 1 project to 2026. Previously, the company had announced construction of the project would begin in October 2023. The delay was attributed to supply chain issues, higher interest rates, and a failure so far to garner enough tax credits from the federal government. For now, they are not walking away from all their U.S. projects but will reconsider long-term plans by the end of this year. Ørsted’s stock price has fallen 30% in 5 days. This is just the latest bad news for offshore win.
The company said it is “reconfiguring” Ocean Wind II in New Jersey, and its Skipjack Wind project off the coasts of Maryland and Delaware because they do not currently meet its projected financial standards. The Maryland Public Service Commission guaranteed Skipjack Wind $146.42/MWh average over twenty years and also gets to keep revenue from sales to the regional grid. Apparently, the higher guarantee is still not enough to meet the company’s financial goals. Ørsted is working to renegotiate guaranteed prices on two other projects, Sunrise Wind and Revolution Wind, that would need a 30% increase just to meet the current Ocean Wind 1 guaranteed price.
Meanwhile, projects off New York are asking for an average 48% increase in guaranteed prices that could add $880 billion a year to electric rates, or almost $18 billion over twenty years .
DON”T WANT IT HERE. Look at the places that do have it-electric rates have gone up astronomically…not to mention the environmental damage-the used giant wind blades sit in giant graveyards…the damage to marine life-I don’t believe for one second these turbines are not killing off whales and other sea critters…
Beware the salespeople whose paychecks depend on selling bad products and ideas to politicians.