Powerline by John Hinderaker August 8, 2023
The Wall Street Journal reports that the wind industry has fallen on hard times:
The wind business, viewed by governments as key to meeting climate targets and boosting electricity supplies, is facing a dangerous market squall.
After months of warnings about rising prices and logistical hiccups, developers and would-be buyers of wind power are scrapping contracts, putting off projects and postponing investment decisions. The setbacks are piling up for both onshore and offshore projects, but the latter’s problems are more acute.
Why might prices be rising, and supply chain issues emerging? The Journal mentions Bidenflation and rising interest rates, but the more intractable problem is supply and demand. Because of their minuscule productivity, wind turbines use extraordinary amounts of steel, concrete, copper, cobalt, zinc, and numerous rare earths. As governments around the world have mandated “green” energy, demand for these materials has skyrocketed. Prices are only going higher, as massive new mines for minerals like copper and cobalt will have to be developed.
More:
Europe’s strong winds and shallow waters have made offshore wind one of its fastest-growing renewable technologies. But a 40% cost increase recently halted a giant project in the U.K., a global leader in offshore wind, while developers delayed two investment decisions in the Baltic Sea.
Another three projects in the North Sea totaling about $19 billion in planned spending are potentially delayed or revising terms too, said Peter Lloyd-Williams, a senior analyst at Westwood Global Energy Group.
More:
https://www.powerlineblog.com/archives/2023/08/wind-energy-a-doomed-industry.php
