Offshore wind industry in turmoil as economics are upended, suppliers announce technical and financial problems, the U.S. government starts an investigation, and dead whales and hurricanes appear.
There is no true answer for the IRR question because these projects are all in LLCs so the data is opaque. In the RI hearing, SouthCoast Wind's CEO said the IRR was well below the 9% most regulated utilities are seeking in their rate increase filings. BP's Mooney told shareholders that returns were more in the 5-8%, well below the oil and gas traditional returns of 15-20%.
When I have researched UK power projects that file audited returns, the offshore wind ones do not make money without subsidies. Orsted's CEO told analysts that their US offshore wind portfolio was only earning its WACC when they are well above that elsewhere and they always shoot for 150-300 bp above WACC.
What is the IRRs in these projects? The PR always reads as fluff. Always sounds like the same nothing.
What is needed is to embrace the industry in the USA as a strategic asset. No mas dissing it by media for drama and politicos for votes and each of use to embrace it. Without the USA the world would be upended.
The world needs a strong USA. Strong leadership matters.
There is no true answer for the IRR question because these projects are all in LLCs so the data is opaque. In the RI hearing, SouthCoast Wind's CEO said the IRR was well below the 9% most regulated utilities are seeking in their rate increase filings. BP's Mooney told shareholders that returns were more in the 5-8%, well below the oil and gas traditional returns of 15-20%.
When I have researched UK power projects that file audited returns, the offshore wind ones do not make money without subsidies. Orsted's CEO told analysts that their US offshore wind portfolio was only earning its WACC when they are well above that elsewhere and they always shoot for 150-300 bp above WACC.
What is the IRRs in these projects? The PR always reads as fluff. Always sounds like the same nothing.
What is needed is to embrace the industry in the USA as a strategic asset. No mas dissing it by media for drama and politicos for votes and each of use to embrace it. Without the USA the world would be upended.
The world needs a strong USA. Strong leadership matters.