Orsted on Jan. 25 said that it will reposition Skipjack Wind, a combined 966-megawatt project in development off the coast of the Delmarva peninsula, for future offtake opportunities.
Following consultation with the state of Maryland, Orsted has withdrawn from the Maryland Public Service Commission orders approving the Skipjack 1 and 2 projects.
Orsted said it intends to continue advancing development and permitting for the combined project, including submission of its updated Construction and Operations Plan to the Bureau of Ocean Energy Management.
This action follows an extensive review of the orders, the developer said.
Orsted said that the payment amounts for offshore wind renewable energy certificates set forth in the orders “are no longer commercially viable because of today’s challenging market conditions, including inflation, high interest rates and supply chain constraints.”
“As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available,” said David Hardy, Group Executive Vice President and CEO Americas at Orsted. “We will continue to advance Skipjack Wind’s development milestones, including its Construction and Operations Plan.”
While macroeconomic factors are impacting offshore wind projects globally, Orsted said it continues to advance, build and invest into U.S. several projects.
With its partner, Eversource, its South Fork Wind project serving New York is set to reach full operations in the weeks ahead as the first commercial-scale offshore wind farm in the U.S.
Revolution Wind, also with Eversource and delivering power to Rhode Island and Connecticut, has already started construction activities.
Sunrise Wind, also serving New York, was re-submitted Jan. 25 in a New York State solicitation, which, if awarded, would improve the project’s financial position and advance the most mature offshore wind project in the state’s pipeline, it said.
In the Northeast, approximately 10 GW of offshore wind energy is expected to be awarded this year, and the Mid-Atlantic has additional solicitations expected in the next 1 – 2 years, the company said.
New Jersey Approves Over 3,700 MW of Offshore Wind Capacity in Combined Award
In other recent offshore wind news, the New Jersey Board of Public Utilities on Jan. 24 awarded a combined 3,742 MW of offshore wind capacity to Invenergy and energyRE’s Leading Light Wind Project and Attentive Energy LLC’s Attentive Energy Two Project.
The Board awarded 2,400 MW of capacity to Leading Light Wind and 1,342 MW to Attentive Energy Two.
On November 29, 2023, Governor Murphy directed the NJBPU to accelerate the State’s fourth offshore wind solicitation, with project awards anticipated in early 2025.
