New US offshore wind blow as 'no workable turbine' woes rock massive Invenergy project
GE Vernova’s decision to axe plans for 18MW turbine model and challenges with Siemens Gamesa and Vestas options leave 2.4GW development scratching head and asking regulators for pause
In the latest blow to the US offshore wind sector, developer Invenergy has asked to pause a 2.4GW project after its planned turbine supplier GE Vernova axed plans for 18MW machines and second choice Siemens Gamesa “substantially” jacked up its prices.
Chicago-based Invenergy had at that time hailed the selection of the American-led project, which it is co-developing with fellow US clean power company energyRE, as a “tremendous step forward for the growth of the domestic offshore wind industry.”
However, the project has like several others fallen victim to US turbine maker GE Vernova’s decision to scrap plans to develop an 18MW model of its Haliade-X turbine platform, pivoting to a 15.5MW rating instead.
In its July filing, Invenergy said that, in the face of “significant uncertainty and volatility” in the wind turbine market, it had taken a “turbine agnostic” approach for its Leading Light project that considered offerings from “all three major turbine manufacturers – GE Vernova, Siemens Gamesa and Vestas.”
By the time it submitted its bid in the auction, Invenergy said it believed that GE Vernova or Siemens Gamesa turbines would be the “most cost-effective options,” deeming the Vestas offering unsuitable for a “variety of cost and technical” reasons.
Invenergy said it used GE Vernova as its “base case,” with Siemens Gamesa second choice.
However, shortly before submitting its “Best and Final Offer” for the auction in December, Invenergy said it learned that the GE 18MW model would no longer be available, instead submitting its bid based on an unnamed Siemens Gamesa turbine.
Then, in June, Siemens Gamesa told Invenergy that it was “substantially increasing” the cost of its turbines, according to the filing.
“The upshot of these developments,” said Invenergy, is that it “does not have a workable equipment solution at this time” for Leading Light.
The developer remains in “active discussions with turbine manufacturers” and is asking for a pause to have more time for this.
If the stay is not issued, Invenergy warned that it faces “potentially unquantifiable economic losses” that will do it “irreparable harm.”
The developer added: "Invenergy simply requires a few additional months to evaluate its market options and determine what alternative arrangements can be made for [Leading Light] equipment."
New Jersey under its governor Phil Murphy, a strong backer of US President Joe Biden's ambitions for the sector, is targeting 11GW of offshore wind by 2040, which it procures through offshore renewable energy credits (OREC), each of which represents the environmental attributes of one MWh.
French oil major and offshore wind heavyweight TotalEnergies with partner Corio are leading the other project that was awarded a contract in January along with Leading Light, for their 1.34GW Attentive Energy 2 array.