Offshore Windfarms Threaten To Pull Out Of Uneconomical Contracts
JUNE 24, 2023
By Paul Homewood
The wheels are falling off the offshore wind bandwagon:
A string of offshore wind projects meant to power Britain are in jeopardy after the global race to net zero sent costs soaring, casting doubt over the industry’s future as a cheap source of energy.
A surge in supply chain costs has pushed up the price of wind turbines, while increases in global interest rates have raised refinancing costs substantially.
It has made several projects unviable just a year after they won government subsidy contracts – leading to fears from industry insiders that Britain’s future is in jeopardy as the “Saudi Arabia of wind”.
Inch Cape, a 50:50 joint venture between Ireland’s ESB and China’s Red Rock Power to develop a project located 15km off the east coast of Scotland, is understood to be at risk, with the Irish side refusing to proceed with a so-called final investment decision (FID) after balking at the economics of the project.
https://notalotofpeopleknowthat.wordpress.com/2023/06/24/offshore-windfarms-threaten-to-pull-out-of-uneconomical-contracts/
