More than 10 gigawatts of offshore wind projects along the U.S. East Coast - the equivalent of roughly 10 nuclear power reactors - are at serious risk as soaring inflation is forcing developers to re-crunch the numbers for proposals originally modeled years ago, before a run-up in interest rates and material costs.
While the Inflation Reduction Act provides at least $370 billion in grants, tax credits and other incentives for climate and clean energy projects, that's proving no match for rising inflation and borrowing costs.
The U.S. offshore wind industry, banking on a big boost from the landmark Inflation Reduction Act, has found itself face-to-face with a major hurdle that’s been right there in the name all along: infl.
Governors Wind Energy Coalition
Orsted Seeks Green Supermajor Role With $57 Billion Plan Source: By Will Mathis, Bloomberg • Posted: Wednesday, June 2, 2021
Orsted A/S plans to spend 350 billion Danish kroner ($57 billion) by 2027 to be the world’s leading green energy provider.
But the Danish firm, already the biggest developer of offshore wind farms, faces increasing competition from other utilities as well as oil majors that aim to be major players in the transition to clean energy, an area it pioneered when it ditched its fossil-fuel business for an all-renewable strategy.
As green energy grows from a niche to a key way the world gets electricity, Orsted is speeding up investment to keep its edge. The new target is an average annual increase of about 50% from the company’s last strategy update in 2018, it said Wednesday.