A rising tide of interest rates, supply chain bottlenecks and inflation is threatening the Biden administration’s ambitious offshore wind targets, creating a significant challenge for one of the president’s top climate priorities.
Recent weeks have seen a series of developers raise concerns over rising costs. In New Jersey, a developer warned earlier this month that a planned 98-turbine project off the coast of New Jersey could threaten its finances.
In New England, two developers with contracts to sell power to Massachusetts have sought to renegotiate the deals, only to get shot down by state regulators.
Many developers bid aggressively in state auctions to win those contracts but are now locked into agreements that didn’t account for rising costs, said Sam Huntington, director of North American power and renewables at S&P Global Commodity Insights.
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