New Trump offshore wind blow as giant 'ready to go' project braces for four-year delay
EDPR takes $138m impairment based on postponed construction for SouthCoast Wind
US offshore wind took another blow from Donald Trump’s action against the sector as the developer behind the “ready to go” 2.4GW SouthCoast Wind project said it is now braced for a four year delay.
EDP Renewables, which is advancing SouthCoast via its Ocean Winds joint venture with Engie, booked a €133m ($138m) impairment against its US offshore wind assets citing “current uncertainty surrounding US offshore projects following the presidential executive orders (EOs) issued on January 20”.
Trump’s EOs placed a moratorium on new offshore wind leasing and, ominously for projects such as SouthCoast, put existing developments under review.
EDPR chief executive Miguel Stilwell d’Andrade said the Portuguese developer was taking a “prudent” impairment that assumes a four-year delay to a project that is “ready to go”.
Stilwell d’Andrade said a power purchase agreement (PPA) on “good, attractive terms” has been agreed, noting that current US offshore wind deals are in excess of $150/MWh.
“We have the interconnection, we have the slots, we have the Capex,” he said, but added that “we have decided to be more prudent with the timeline” in what he described as a “slightly worst case scenario”.
The EDPR CEO noted that US leases have 35-year lifespans from start of operation so the “value of the project continues to be very significant”.
SouthCoast had originally hoped to start construction this year. It becomes the latest project to crumble or face potential delays under fire from Trump.