Will Ørsted Bid for Next Round of Offshore Wind? Will Anyone?
GoLocalProv Business Team
Will Ørsted Bid for Next Round of Offshore Wind? Will Anyone?
REI is owned by Pennsylvania, Power and Light (PPL).
Since then, a lot has happened. And none of it may be good for Rhode Island to generate energy from renewable sources.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTA number of offshore wind projects in the region have unraveled, and then in August, the head of Ørsted North America reported that the company is reassessing its future in America.
On August 30, Ørsted announced it may see U.S. losses of $2.3 billion due to supply chain problems, soaring interest rates and a lack of new tax credits.
Orsted's share price tumbled 20% after the announcement to its lowest level in more than four years and is down almost 70% from its 2021 peak.
"The situation in U.S. offshore wind is severe," Chief Executive Mads Nipper told reporters on a conference call.
Fast Forward a Month
On Thursday, Governor Dan McKee announced that the state, via REI was going out to bid again. This was a shift by McKee who, on July 27th on GoLocal LIVE, said he was looking to begin a multi-state initiative with Connecticut and Massachusetts.
REI gave a lukewarm statement about the rebid.
“Rhode Island has big clean energy aspirations and Rhode Island Energy is committed to helping achieve them,” said Dave Bonenberger, President of RIE. “This new procurement can help advance the state’s clean energy goals and support achievement of Rhode Island’s emissions-reduction targets. We look forward to seeing how offshore wind developers can balance those goals with affordability and wider economic benefits for the state.”
But Ørsted was more reserved about the news, and there is no guarantee that the Danish company or anyone else will bid to market conditions and regulatory obstacles/
David Ortiz, Ørsted’s Head of Government Affairs and Market Strategy for the Northeast, told GoLocal, “Ørsted evaluates all opportunities to expand our U.S.-leading offshore wind portfolio while creating good-paying local jobs and growing the U.S. supply chain.”
The reality is that Ørsted may look to bigger and more cost-efficient markets in New York or Massachusetts.
McKee is trying to create some optimism in a market that right now is facing tremendous obstacles.
“Offshore wind is critical in advancing Rhode Island’s 100 percent renewable energy standard and Act on Climate objectives,” said McKee. “It’s more important than ever that we continue to push for new opportunities to expand offshore wind generation in Rhode Island while ensuring it is affordable for future generations. Rhode Island Energy recognizes the need for urgency in bringing more renewables online and I’m appreciative of their efforts to get another offshore wind RFP released.”