As has been noted before, the era of ever declining costs for renewables is now over.
“As has been publicly reported in recent weeks, global commodity price increases, in part due to ongoing war in Ukraine, sharp and sudden increases in interest rates, prolonged supply chain constraints, and persistent inflation have significantly increased the expected cost of constructing the project. As a result, the project is no longer viable and would not be able to move forward absent amendments to the PPAs”
“On Monday, New Jersey utility Public Service Enterprise Group Inc. said it’s deciding whether to pull out of Ocean Wind 1, a proposed project in the Atlantic Ocean that would generate 1.1 gigawatts…A representative for PSEG said by email that the company has been reviewing its 25% equity stake in Ocean Wind 1, majority-owned by the Danish energy giant Orsted AS, on an ongoing basis. PSEG Chief Executive Ralph LaRossa said on a call with investors Monday that the company was reviewing the costs of the project, and another executive said not going forward with the project was an option on the table.”
“Shell has cited ”technical, commercial and financial challenges” in the execution of the project as the main reasons for the decision to cancel the EUR 300 million, 28.5 MW Groix & Belle-Île pilot wind farm, Le Parisien reports.”