Missed Aegir’s latest Wavelength Intelligence Briefing last week?
Here are some of the key take-aways from Senior Analyst Signe Sørensen and Chief Executive Editor Darius Snieckus' discussion of the US offshore wind market at this critical time in its evolution:
- New York’s rejection of offshore wind developers’ request to renegotiate power purchase deals agreed in its first two solicitations confirms that PPA renegotiations will not be a welcome solution for projects under macroeconomic pressure in the US Northeast.
- Instead of re-negotiating, re-bidding may be the way forward. Re-bidding opportunities for projects that end up terminating previously awarded PPAs seem promising, as the higher strike prices in New York’s third and latest solicitation show that the state is coming to terms with higher costs for offshore wind. This sets a precedent for both New York’s next offshore wind solicitations – whereof one might be aimed directly at projects wishing to re-bid after terminating old PPAs – and the multiple ongoing solicitations of other Northeast US states.
- The Biden administration’s goal of building 30 GW offshore wind by 2030 is evaporating, but courage should be taken: BOEM is speeding up federal leasing and permitting, and the first two commercial projects are under construction, with a third to be soon. The 30 GW will be reached – just not by the end of the decade, when Aegir Insights sees around half this capacity in operation.
Or reach out to us for more information on the offshore wind market in the US Atlantic.
Aegir Insights' analysis of the PPA troubles in New York
Aegir Insights has previously covered the current PPA troubles in New York. Read our commentary on New York's rejection of requested increased PPA prices by offshore wind developers and the state's recent awarding of provisional PPAs to 4 GW of offshore wind, or dive into our analysis on what might happen next.
Aegir's Wavelength Intelligence Briefings
Wavelength is Aegir’s digital analyst briefing series where we delve into the key talking points and market developments in the offshore energy transition in a 15-minute, coffee-break format.
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