OCEAN CITY – An offshore wind company has withdrawn its agreement with the Maryland Public Service Commission as it looks to reposition its Skipjack project.
Last Thursday, Ørsted announced it will reposition Skipjack Wind, a 966-megawatt project it’s developing off the Delmarva coastline. After reviewing the Maryland Public Service Commission orders approving its two-phased project, the company reports the payment amounts for offshore wind renewable energy credits (ORECs) are no longer commercially viable because of market conditions – including inflation, high interest rates and supply chain issues.
“Today’s announcement affirms our commitment to developing value creating projects and represents an opportunity to reposition Skipjack Wind, located in a strategically valuable federal lease area and with a state that is highly supportive of offshore wind, for future offtake opportunities,” said David Hardy, group executive vice president and CEO Americas at Ørsted. “As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available.”
Officials in Ocean City said they will continue to monitor offshore wind activity and any developments that result from Ørsted’s announcement. In a statement Monday, Ocean City Mayor Rick Meehan said that while Ørsted has announced it is withdrawing its agreement, he had concerns it could lead to requests for additional funding.
“The Town of Ocean City recognizes that Ørsted is pulling out of their agreement with Maryland Public Service Commission for what they say is a ‘repositioning of the project,’” he said. “What this means is that the costs they can pass on to Maryland Rate Payers no longer supports the cost of their project and they will be seeking additional funding from Maryland rate payers and tax payers. Exactly what that cost is and at what point does the cost outweigh the questionable benefits of these projects, even possibly compared with other alternatives, is something that is yet to be determined by the State Legislature.”
They’re now sponsoring a camera on the TV station to pose as a reputable local business.
In reality they’re pushing back from the table because the combination of increased public and local elected officials awareness of what a miserable, one-sided deal the windmills would be is creating meaningful opposition. Added to that pushback is the effect Bidenomics, in all its glory, is having on costa across the board.
Their solution: Get cozy with Less More, who has linked his Soros backed reign to green this and that, to cut a more favorable deal for the windmillers, while screwing the electric ratepayers.
Caveat emptor.