Recently, energy developer Orsted scrapped plans with the state of Maryland to build two offshore wind projects amid deteriorating economic conditions. The company announced it would reevaluate an agreement with the Maryland Public Service Commission (PSC).
Orsted and the PSC had originally approved Skipjack Wind 1 and Skipjack Wind 2, taking advantage of a 2-year Offshore Renewable Energy Credit (OREC). Democrats in the state had championed the projects for contributing to Maryland’s green energy agenda.
“Today’s announcement affirms our commitment to developing value creating projects and represents an opportunity to reposition Skipjack Wind, located in a strategically valuable federal lease area and with a state that is highly supportive of offshore wind, for future offtake opportunities,” said Orsted’s group executive vice president and CEO of its Americas division, David Hardy. “As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available,” he added.
The energy developer cited a challenging economic environment, given high interest rates, inflation, and supply chain disruption, as reasons for withdrawing the wind project plans. As the plans have been suspended, Maryland Democrats who had once touted the offshore projects are now expressing disappointment.
“Governor Moore is disappointed by the news of Ørsted’s repositioning of the Skipjack Wind project, an effort that has the capacity to impact the lives of so many Marylanders,” said a spokesperson for liberal Maryland Gov. Wes Moore.
“However, he will continue to work with legislators, Maryland’s federal partners, offshore wind developers, and advocates that see Maryland’s potential in order to build a system to help Maryland reach the state’s goal of 100% clean energy by 2035,” Elliott added. “If this is going to be Maryland’s decade, we must continue to push forward to reach the state’s ambitious climate goals, and the governor is as committed as ever to doing just that,” the spokesperson continued.
However, the wind projects have received considerable criticism from detractors who argue they are financially unsustainable. “These projects are unaffordable, they are ridiculous,” said Dave Stevenson, the director of the Center for Energy Competitiveness Caesar Rodney Institute. “The question really does become, in light of these disruptions and price increases, why shouldn’t we expect more?”
Stevenson further emphasized that, given the lack of viability in these projects, more realistic energy projects should be pursued instead. “It just gets worse and worse and worse,” Stevenson added. “When you have bad news like this repetitively, it’s a clear message that this is not ready for primetime. These projects should just stop. Let’s take another path as to how we’re going to generate electricity down the road.”
Earlier this month, The American Tribune reported on the failure of an offshore wind project in the state of New York, which also cited unfavorable economic conditions as the driver of the cancellation. The Democrat-led green energy agenda suffers massive blows as wind projects fail and EV adoption falters. Naturally, many Americans are beginning to question how realistic the green economy is, especially when some initiatives involve taxpayer-funded subsidies.
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