The Green Energy Industry Just Had An Absolutely Brutal Week

Nick Pope on November 5, 2023

The past week has been marked by worrying developments for the state of the green energy industry, suggesting that President Joe Biden’s sweeping climate agenda could be imperiled.

Offshore wind companies are cancelling projects and executives are sounding the alarm on the state of the industry, while solar companies and indexes have seen their value continue a months-long slide that has resulted in diminished earnings forecasts and a solar-oriented loan provider’s bankruptcy. These developments suggest that Biden’s sweeping green energy plans could be in trouble, especially given the intractable nature of some of the crucial economic problems plaguing the industries.

“Boosters for this energy transition bet the farm on three rent-seeking industries: wind, solar and electric vehicles. Two legs of that three-legged stool are now showing signs of financial distress despite massive subsidies they’ve already received from multiple levels of government,” David Blackmon, a 40-year veteran of the oil and gas industry who now writes and consults extensively on energy, told the Daily Caller News Foundation. “American consumers, who are paying the price for this in the form of skyrocketing costs of all forms of energy, should demand their representatives hang up the phone when the calls come in from wind and automaker executives asking for even more.”

Orsted, a Danish offshore wind company, announced on Tuesday that it cancelled two major developments off the coast of New Jersey. Company executives blamed factors like inflation, interest rates and supply chain woes, saying that the problems had left the firm little choice but to walk away from the major projects.

Since the cancellations, the company’s stock price has fallen even further and S&P has indicated that it is considering downgrading the company’s credit rating. But Orsted is not the only offshore wind company showing signs that the industry may be in an extremely precarious position.

The U.S. offshore wind industry appears to be “fundamentally broken” due to problems with permitting and rising costs, Anja-Isabel Dotzenrath, the head of gas and low carbon energy for British Petroleum (BP), said at a conference on Wednesday, according to Bloomberg News. “There’s a fundamental reset needed,” she said, suggesting that there could be solutions and that her company is working with its partner to assess “options for their U.S. offshore wind projects to mitigate the effect of inflationary pressures and permitting delays.”

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