NEW YORK, NY – Ors Nipper, CEO of Danish offshore wind energy company Orsted, announced troubling developments for the renewable energy sector, particularly affecting New Jersey Governor Phil Murphy’s wind energy plans.
Speaking at New York Climate Week, Nipper cited the rise in interest rates as a “dramatic effect on renewables” and stated that “the fuel of the renewable industry is capital.” He further commented that the situation led to “dark clouds” gathering over offshore wind energy prospects.
The CEO also touched on President Joe Biden’s goal of achieving 30GW of offshore wind by 2030. While he said it is still possible, he noted that it would not be easy to achieve.
Nipper’s statements come as northeastern US governors are calling for greater support for the struggling offshore wind sector. They have indicated that reforms in tax clarity and permitting are urgently needed as ratepayers may be unable to absorb rising costs.
The news is especially critical for New Jersey as Orsted is in the process of building a massive wind farm off its coast. The rising financial costs and regulatory hurdles pose a significant risk for the project and the state’s renewable energy goals.