3 ms·
Why did they cancel all the wind power plants in New Jersey even though they are cheaper?
by monero-xmr 3y ago
Why did they cancel all the wind power plants in New Jersey even though they are cheaper?
- fyrn_ 3y agoBack before the interest rate increases even barely tenable projects were doable. Cost of financing is higher now, so the risk equation changes. That company is still going ahead with a project in New York, and Jersey has another wind projected lined up from another company. Wouldn't take this single data point as indicating anything meaningful
- hef19898 3y agoYeah, start-upsnonly fail because of the interest rate hike and not because they are unsustainable businesses. But other sectors requiring serious financing are absolutely not affected... Not.
- Symbiote 3y agoØrested isn't a startup, it's a decades-old energy company which built the first off-shore wind turbines. It used to be called DONG, Danish Oil and Natural Gas.
- hef19898 3y agoAnd their projects still need outside funding. Funding which is impacted by inflation and intrest rates, expoaing the project, and hence the company behind it, to financial impacts the same way start-ups are: money all of a sudden isn't free anymore.
- addicted 3y agoOffshore wind is also the most expensive form of wind/solar. With financing getting more expensive its almost certain that some of the more financially on the edge projects would get cancelled and since offshore wind is easily the most expensive, it’s unsurprising that in renewable energy those are the projects getting cancelled.
- pydry 3y agoIt's more reliable than onshore though. There are offshore wind farms with nearly equivalent capacity factors to some (aging) french nuclear power plants.
- SoftTalker 3y agoWealthy influential people didn't want to look at windmills.
- heavyset_go 3y agoOrsted backed out of the deal.