The renewable-power fantasy is being blown apart by furious financial headwinds.
Already this year projects have tumbled in Rhode Island, Connecticut and Massachusetts, and now Danish wind-power giant
Ørsted has canceled two wind farms in New Jersey.
Over and over, the litany of causes is the same: inflation, higher interest rates that drive up capital costs and severe kinks in the supply chain.
These same problems are slamming
proposed offshore-wind projects in New York as developers make final decisions on whether to start building turbines or cut their losses before they get worse.
Seeing that the wild cost increases threaten to make their projects unprofitable, these companies went hat-in-hand to the state’s Public Service Commission asking for increases of 35% to 65% on the price of electricity they hope to generate.
But the commission declined to dig deeper into ratepayers’ wallets, sending them away empty-handed.
The four companies behind these prospective wind farms have all taken big hits to their balance sheets. Equinor has written its value down by $300 million.
Continue Reading this Op-Ed in the
New York Post.
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