The Multibillion-Dollar Clean Energy Bet Gone Wrong

Offshore wind turbines are proving too risky for many utilities

By David Uberti of The WSJ. Excerpts:

"the problems started mounting. American workers’ wages soared after the pandemic, while Russia’s invasion of Ukraine sent commodity prices skyrocketing. The Federal Reserve’s rate increases drove up the cost of borrowing for billion-dollar developments. A global backlog of wind farm plans created a shortage of the vessels needed to haul turbines and their foundations from ports to job sites in the ocean"

"the cost has spiraled out of control"

"Eversource expects to write down up to $1.6 billion from the projects in the fourth quarter."

"Any buyer will have to navigate a web of existing contracts approved by state regulators and supplier deals for everything from turbine parts to ships."

"Analysts say the projects have suffered more than most because of the bad timing of power-purchase agreements just before inflation and supply-chain chaos struck. Those contracts, approved by regulators, exposed developers to the risk of cost overruns."