Wednesday, 2 April 2025
Home Topics Business Offshore wind market improving after price reset, says EDP
BusinessNewsPoliticsUtilitiesWind

Offshore wind market improving after price reset, says EDP

98
Offshore wind projects are now economically viable due to a price reset. An offshore wind project in the German North Sea, owned by EnBW and Enbridge is seen in this handout image taken August 2021. Enbridge/Handout via REUTERS/File Photo

OXFORD (Reuters) – The global market for offshore wind projects is improving with governments and companies now offering high enough prices to make projects economically viable, the CEO of Portugal’s largest utility Energias de Portugal (EDP) said on Tuesday.

Many countries are relying on a huge and rapid build-out of offshore wind farms to meet climate targets, which have high upfront costs but over the longer term can provide cheaper energy than fossil fuel plants.

Spiralling costs amid high inflation saw developers cancel or pause projects in the U.S. and Britain last year that were no longer expected to be profitable, leading to concerns over the long-term outlook for the sector.

“We are seeing a major reset in prices for PPAs (power purchase agreements) and CfDs (government backed contracts) which are making projects viable,” EDP CEO Miguel Stillwell D’Andrade said in an interview at an energy event in Oxford.

EDP’s 50/50 offshore joint venture with ENGIE called Ocean Winds is involved in the development of several projects globally.

D’Andrade said fundamentally the offshore market is looking strong and that projects in the United States remain attractive, even if there could be a less climate-focused President in the country following elections later this year.

“The consensus seems to be the (IRA) Inflation Reduction Act has bipartisan support and a lot of the funding is going to Republican states,” he said.

The U.S. faces an election this year and Republican candidate Donald Trump has threatened to axe Democratic President Joe Biden’s Inflation Reduction Act (IRA), which in 2022 set out a support package for clean technology worth $370 billion.

Related Articles

Lilium burnt through huge sums while trying to develop its jet (AFP)

German flying taxi start-up’s rescue deal collapses

A German flying taxi start-up said on Friday it would halt operations...

FILE PHOTO: U.S. Secretary of the Interior Doug Burgum speaks as he attends a signing ceremony with members of the West Virginia Congressional Delegation at the EPA headquarters in Washington, D.C., U.S., February 18, 2025. REUTERS/Kent Nishimura/File Photo

US energy council chief says power plants to produce 15% more electricity

By Valerie Volcovici WASHINGTON (Reuters) – U.S. Interior Secretary and co-chair of...

Cuba has inaugurated a new solar energy park in the capital Havana (AFP)

Cuba opens solar park hoping to stave off blackouts

Cuba on Friday unveiled a new solar energy park in the capital...

FILE PHOTO: Cranes unload imported iron ore from a cargo vessel at a port in Lianyungang, Jiangsu province, China October 27, 2019. REUTERS/Stringer/File Photo

Iron ore heads for weekly gain on brightening demand outlook, China stimulus hopes

By Amy Lv and Lewis Jackson BEIJING (Reuters) -Iron ore futures prices...

Login into your Account

Please login to like, dislike or bookmark this article.