Filings by a New York regulator present Equinor (OSE:EQNR) and BP (LON:BP) are looking for a rise of as much as 54% for energy from a trio of wind tasks deliberate off the state.
The supermajors intend to construct three tasks with as much as 3.3GW of capability in state waters within the type of the Empire Wind 1, Empire Wind 2 and Beacon Wind schemes.
But provide chain points and inflation throughout the sector have pressured a rethink of a swathe of main offshore wind developments in latest months, and in June the pair started efforts to hunt revised monetary preparations.
New filings by the New York State Vitality Analysis and Growth Authority (NYSERDA) and reported by Norwegian every day Dagens Naeringsliv counsel these revised phrases “would lead to a 54% enhance on common throughout its portfolio of tasks.”
NYSERDA means that the strike value for Empire Wind 1 would rise from $118.38 per megawatt hour (MWh) to $159.64/MWh whereas Empire Wind 2 would rise from $107.50/MWh to $177.84/MWh.
Beacon Wind too would see its strike value enhance from $118.00/MWh to $190.82/MWh.
Equinor and BP argued that “rampant inflation, world provide chain disruptions and hovering rates of interest related to the COVID-19 pandemic, the Russia-Ukraine battle and the rising tempo of the power transition” have resulted in elevated growth prices.
It comes days after Danish developer Ørsted’s reported that related components may consequence impairments throughout its growth portfolio of as much as 16 billion kroner ($2.33bn).
Specifically, the corporate flagged issues with suppliers at its US Ocean Wind 1, Dawn Wind, and Revolution Wind tasks, warning that these schemes “usually are not progressing as we beforehand anticipated” and estimating that impairments may whole as much as 5bn krone ($728 million).
In the meantime, Shell and Ocean Winds’ JV already terminated its energy buy agreements (PPAs) for the deliberate SouthCoast growth.
Equinor has not introduced any impairments for its US offshore wind unit.
“Our start line is we’d like a primary degree of economics within the tasks that we’re sanctioning and that’s additionally the case for Empire wind and Beacon Wind,” an organization advised Reuters.
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