Offshore Wind Power Projects Face Financial Headwind

The Biden administration’s goals for offshore wind would build capacity for the sector to provide enough energy to power 10 million U.S. homes by the end of the decade. That ambitious goal is starting to look far-fetched, however, as proposed offshore wind energy projects face “grim” financial prospects, according to a recent article by Ry Rivard and Marie J. French for Politico.

“Up and down the Northeast — the center of the burgeoning industry — however, energy companies have struggled to finance their projects, going hat in hand to governors and utility regulators asking for more money so they can start building the turbines they have already promised to deliver,” according to the article.

Without a funding solution and a “a dramatic increase in offshore wind capacity,” according to the article, “there is no way Biden or two of the nation’s greenest Democratic governors — New York’s Kathy Hochul and New Jersey’s Phil Murphy — can hope to meet their climate change goals.”

“So far, federal regulators have only approved three utility-scale projects nationwide. Only seven offshore wind turbines are producing power and just two of the larger projects are truly under construction,” according to the article.

More on the crossroads facing the industry can be read at the source article below.