Odd Lots Orsted's Americas CEO on Fixing What Went Wrong in Wind Power
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Jun 6, 2024 
David Hardy, CEO of Orsted Americas, shares his deep insights into the wind power industry. He discusses last year's project cancellations and the shifting landscape due to higher interest rates and supply chain issues. Hardy also explores the implications of potential political changes and when we might see subsidy-free onshore wind projects in the U.S. Furthermore, he analyzes the urgent need for a robust supply chain and the financial complexities that could shape the future of renewable energy.
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2023 Offshore Wind Challenges
- The 2023 challenges in the US offshore wind industry stemmed from a combination of ambitious growth plans and unforeseen external factors.
- Rising interest rates, inflation, and supply chain disruptions significantly impacted project economics, especially for capital-intensive offshore wind projects.
Orsted's Project Decisions
- Orsted faced difficult decisions regarding its wind projects, including canceling some despite significant investments.
- One late-stage project, Ocean Wind 1, was canceled after an investment of up to a billion dollars.
Supply Chain Imbalance
- Global offshore wind growth has created a supply-demand imbalance for key components.
- This is exacerbated by the long lead times and the reluctance of suppliers to commit without firm demand signals from project developers.
