Ensuring Generation Growth. The language coming from the US offshore development companies is concerning as many of them are seeing no path to start of construction. The issue at hand is that the proforma is upside down, costs from interest rates, supply chain and inflation causing revenues to miss the mark on the capex that it will take to build GW of offshore wind. The problem is the need for generation is expanding faster than expected to we need to build all of the generation possible. That leaves a couple options for these wind projects, let utilities ratebase it or force the markets to renegotiate the offtake agreements. In the meantime, it’s important to accelerate the interconnection bottleneck and get more solar/storage projects financed and built.
- Reuters: Orsted CEO says abandoning US wind projects a ‘real option’, Bloomberg reports
- Energy News US: In unexpected move, New Hampshire utilities voice support for solar net metering
- Utility Dive: Ninth Circuit largely upholds FERC PURPA reform decision affecting small solar, wind
- PV-Magazine: Qcells to enter into $3 billion supply agreement for U.S.-made polysilicon
- Bloomberg: Texas Teeters on Edge of Blackouts as Demand Squeezes Grid
- New York Times: At Africa’s First Climate Summit, a Clear Call to the World – Invest in Us
- Canary Media: Another US EV-battery recycler just raised a massive funding round
Opinion
Best, Yann