Danish Orsted will stop building two wind farms – Kommersant
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Today, November 1, the Danish company Orsted, one of the largest players in the wind energy market, reported, which will stop construction of two large wind farms off the coast of the United States. This is due to rising construction costs, supply problems, and rising interest rates. Orsted said that losses associated with the cancellation of the project could reach 28.4 billion Danish kroner ($4 billion). The company’s shares fell 22% today.
Orsted was building two wind farms – Ocean Wind 1 and 2 – off the coast of New Jersey, their total capacity was supposed to be 2.25 thousand MW. The company said it had invested heavily in the project early on but had now concluded that it was “the wrong decision.”
Previously, experts and industry representatives had already noted, that many wind energy projects are being canceled or postponed this year: since the beginning of the year, dozens of projects have been postponed in the UK, the Netherlands and Norway. Among the reasons are difficulties with supply chains, rising interest rates, rising prices for materials, and low prices for electricity obtained in this way. Another reason is technical difficulties, including those associated with the increase in the size of turbines, which is why they fail more often. Many projects were planned years ago when costs were lower, but now companies are abandoning them for fear that they will not be profitable.
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