[ad_1]
Offshore wind developers are facing rising costs for “everything we need”, Ørsted CEO Mads Nipper said during the Climate Week NYC event in New York, according to the Reuters news wire.
Nipper’s comments come after the Danish renewables major last month warned that it faces up to $2.3 billion in potential impairments related to supply chain delays, higher interest rates, and uncertainty over political support, with its US offshore wind pipeline hardest hit.
He reportedly said that interest rates going from largely 0% to 4% is having a “very dramatic impact on renewables because the fuel of the renewable industry is capital”.
Nipper also said that the offshore wind sector is facing challenges with “financially fragile” supply chains, “relatively uncertain policy frameworks, and rising costs for “everything we need”, from turbines to foundations and substations.
Policymakers and the industry need to accept that “for a little while, the price of renewable power will have to go up”, Nipper said. He added: “But we will bring it down again.”
[ad_2]
Source link