Following consultation with the State of Maryland, Ørsted has withdrawn from the Maryland Public Service Commission Orders approving the Skipjack 1 and 2 offshore wind projects.
Ørsted said it would reposition Skipjack Wind, a combined 966MW project in development off the coast of the Delmarva peninsula, for future offtake opportunities.
The move follows an extensive review of the orders from Maryland Public Service Commission.
The payment amounts for offshore renewable energy certificates (ORECs) set forth in the orders are no longer commercially viable because of current challenging market conditions, including inflation, high interest rates and supply chain constraints, according to Danish renewable energy developer.
The company intends to continue advancing development and permitting for the combined project, including submission of its updated Construction and Operations Plan to BOEM.
“As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available. We will continue to advance Skipjack Wind’s development milestones, including its Construction and Operations Plan,” said David Hardy, Group Executive Vice President and CEO Americas at Ørsted.
While macroeconomic factors are impacting offshore wind projects globally, Ørsted continues to advance, build and invest into U.S. several projects.
With its partner, Eversource, its South Fork Wind project serving New York is set to reach full operations in the weeks ahead as the first commercial-scale offshore wind farm in America.
Revolution Wind, also with Eversource and delivering power to Rhode Island and Connecticut, has already started construction activities.
Sunrise Wind, also serving New York, was re-submitted today in the New York 4 solicitation, which, if awarded, would improve the project’s financial position and advance the most mature offshore wind project in the state’s pipeline.
Ørsted to Acquire 100% of Sunrise Wind
In addition, Ørsted maintains uncontracted seabed along the East Coast that is strategically positioned to create value and continue growing the U.S. industry.
In the Northeast, approximately 10 GW of offshore wind energy is expected to be awarded this year, and the Mid-Atlantic has additional solicitations expected in the next 1 – 2 years.