Dominion hides huge offshore wind cost risk
By David Wojick |July 31st, 2023
The offshore wind industry is suffering a runaway cost crisis, but Dominion Energy says the cost of its monster project will not go up. Apparently, there is not even a risk of it going up. This preposterous claim is worth exploring.
On the crisis side, I recently wrote about it in general terms. See my
https://www.cfact.org/2023/07/26/offshore-wind-has-a-cost-crisis/.
The financial magazine “Barrons” has done some work on this crisis situation. Here is a telling quote from a recent article:
“But behind the scenes, the news about wind power is more sobering. Financially, the industry is teetering, with a parade of companies planning to renegotiate or pull out of contracts, jeopardizing plans for projects that were expected to provide electricity for millions of homes. Inflation is erasing profits, causing some of the largest energy firms in the world to back away. “Returns on offshore wind are becoming more and more challenged,” Shell CEO Wael Sawan told Barron’s last month, just days after a Shell joint venture said it would pull out of a power contract in Massachusetts. Shell won’t build renewable projects that can’t earn initial returns of 6% to 8%, he said.
https://wattsupwiththat.com/2023/07/31/dominion-hides-huge-offshore-wind-cost-risk/
