Renewable energy company Orsted revealed a substantial change in plans for its Skipjack offshore wind project , which has a capacity of 966 MW and is located in the waters off the coast of Delmarva. According to Orsted, the financial incentives offered by the state of Maryland to support the continuation of the project are no longer sufficient.
The company argues that these incentives, set forth in orders issued by the Maryland Public Utilities Commission, are no longer commercially viable due to market factors, inflation, high interest rates and supply chain constraints. As a result, Orsted has decided to withdraw from such orders with Maryland .
Initially, the Skipjack project was designed to add between 60 and 70 wind turbines to the offshore area off the coast of Delmarva.
Skipjack offshore wind project still on track
Notably, the energy company indicated that it intends to persist in developing and obtaining authorizations for the project, although it is not yet clear in which location, including the state of Maryland . Orsted Group executive vice president and CEO of the Americas, David Hardy, said the withdrawal will allow a “reposition” of the Skipjack project for future financial negotiations. Hardy notes that Orsted anticipates several future opportunities for the project and that the company will evaluate these possibilities as they arise.
” We thank Governor Moore, the Maryland Public Service Commission and the State of Maryland for their strong partnership and support as we have worked diligently to develop Skipjack Wind under challenging economic circumstances ,” Hardy said in a statement. “We fully support the state’s leadership in its ambitious offshore wind energy goal. We also thank the State of Delaware for their collaborative approach to supporting the development of Skipjack Wind”.
For his part, Maryland Governor Wes Moore issued a statement in response to Orsted’s announcement Thursday night. Moore’s office expressed disappointment at the news of the company’s repositioning of the Skipjack Wind project, noting that this effort has the potential to impact the lives of many Maryland residents.
Despite this setback, the Governor’s Office reaffirmed its commitment to pursuing the goal of achieving 100% clean energy by 2035.
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