This two attached articles were in today’s Bloomberg documenting the woes of the Offshore Wind industry..
Two telling statements, below in italics, were made by BP.
“The US offshore wind industry is “fundamentally broken” due to cost pressures and permitting delays, according to a top executive at BP Plc.”
“There are not enough turbines around the world” to supply all these projects, Dotzenrath said.
From the second article is the following caption:
Right now, “it’s impossible to say” how long the headwinds will last, Nipper said. “It’s not binary when the challenges for the industry will go away,” he said.
There is a global shortage of wind turbines and no one knows when it is going to get better. In the interim, NY State is pigeonholed into policies that won’t work because of the mandates of the CLCPA and older, less efficient generation will stay on line for years.
Rich
BP Says US Offshore Wind Industry Fundamentally Broken
■ Cost pressures and permitting delays require reset: Dotzenrath
■ BP is among companies to post impairments on US wind projects
By Laura Hurst
November 1, 2023 at 7:19 AM EDT
The US offshore wind industry is “fundamentally broken” due to cost pressures and permitting delays, according to a top executive at BP Plc.
“There’s a fundamental reset needed,” but issues can be fixed, Anja-Isabel Dotzenrath, BP’s head of gas and low carbon energy, said Wednesday at an FT conference in London. Soaring costs and rising interest rates are worsening a crisis in the offshore wind industry, which is vital to slowing global warming. BP’s pretax impairment charge of $540 million – related to the development of wind parks offshore from ew York – is one of a number of writedowns across th sector.
Read More: Orsted Plunges on Abandoned US Wind Plans, $4 Billion Writedown
BP said it’s working with its partner Equinor SA on “options for their US offshore wind projects to mitigate the effect of inflationary pressures and permitting delays.” Last month, New York regulators rejected a proposal for higher rates to offset surging costs.
While the current environment is “choppy,” wind power contracts are being adjusted to reflect rising costs, Dotzenrath said on the sidelines of the conference. And offshore wind remains the fastest growing sector within renewable energy, she said.
“There are not enough turbines around the world” to supply all these projects, Dotzenrath said.