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November 6, 2023
U.S. Offshore Wind Industry Faces Uncertainty From Increasing Economic Challenges
Canceled projects and power purchase contracts imperil the Biden administration’s quest to expand the offshore wind industry and coastal states’ ability to secure clean power.
Even as the offshore wind industry is seeking to scale up, economic challenges cast shadow on future development. Inflation and supply chain disruptions have resulted in some major developers seeking to exit or revise their power purchase contracts. A recent announcement to cancel…Read the full report
Key Takeaways
- Denmark-based Ørsted, the world’s leading offshore wind developer, has announced its decision to cease the development of two projects planned off New Jersey.
- New York regulators have rejected petitions by major offshore wind developers to revise their power purchase contracts for four projects to account for inflationary pressures impacting project economics.
- Governors of six Northeast states have requested prompt federal action to address the economic challenges threatening the offshore wind industry, including near-term projects that are increasingly at risk of failing.
