February 16, 2024 — As pleas for government assistance mount, the odds of 30 gigawatts of offshore wind power coursing through the nation’s transmission lines by 2030 are growing longer.

The pendulum has indeed swung against offshore wind as Northeast developers lump insufficient federal and state tax relief with skyrocketing costs, nagging supply chain bottlenecks and cumbersome permitting for, at best, delaying project start-ups. Ørsted’s bombshell decision on Oct. 31 to scrap two wind farms under development off New Jersey put a punctuation mark on a year that saw no less than 4.7 GW of planned wind power temporarily, or perhaps permanently scrapped.

That’s not to say some projects haven’t advanced on schedule, particularly for the consortiums that managed to lock in supplier contracts before inflation and interest rates rose. As of late November, a combined 932 megawatts of first power were on target to begin flowing through the grid at year-end 2023 from two wind farms off Massachusetts and New York. (The first of 12 turbines began delivering power in early December to New York’s Long Island Power Authority (LIPA) grid, marking the first utility-scale wind generation in U.S. federal waters.)

No new projects are scheduled to come online until 2025 when US Wind is expected to begin generating roughly 270 MW from its MarWin offshore wind farm off Ocean City, Md. 

Read the full article at WorkBoat

February 10, 2024 — The world’s three biggest wind power groups – Siemens Energy, Orsted and Vestas on Wednesday gave a sober view of the year ahead for an industry buffeted by project delays, equipment problems and inflation.

Siemens Energy, the world’s largest maker of offshore wind turbines, expects a 2024 loss before special items of around 2 billion euros ($2.2 billion) at Siemens Gamesa. The wind division has had to deal with the cost of addressing quality problems affecting some onshore models.

In addition, rising prices for raw materials and components as well as regulatory delays have caused writedowns and losses across the wind industry despite robust demand for renewable technology. Turbine makers have been particularly hit.

“You see the terms and conditions of the projects being too difficult for investors and project developers to take. So we are in a standstill,” said Danny van Doesburg, senior portfolio manager at Dutch APG Asset Management, which according to LSEG data owns stakes in Vestas, Orsted and Siemens Energy.

Read the full article at Reuters

February 7, 2024 —  Orsted the struggling European wind-energy giant, said it will cut costs, pause dividend payments over several years, sell assets and refocus business priorities as it tries to right itself from a costly move into the U.S. offshore wind market.

Orsted, which transformed itself in recent years from what was Denmark’s small state oil company into a global giant in wind energy development, has recently hit major headwinds as it pushed aggressively to expand into new markets, particularly in a push in the U.S.

After betting big on offshore wind development on the U.S. East Coast, it has pared back dramatically, and seen its stock-market valuation—at one point eclipsing that of some of its more traditional oil and natural gas peers—crater.

It has struggled with supply-chain bottlenecks in the U.S., higher interest rates and trouble getting tax credits there. Late last year, it said it would pull out of two high-profile wind projects off the coast of New Jersey due to spiraling costs.

Read the full article at the Wall Street Journal