The Return of T+1 Stock Trading, Pricing Offshore Wind
May 28, 2024
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In this podcast, Larry Tabb discusses T+1 stock trading, Pat Gallagher talks about market macro-outlook and insurance, Anurag Rana highlights Apple's China iPhone shipments, and Oliver Metcalfe discusses offshore wind prices. Topics include challenges of T+1 trading, tailored insurance solutions, Apple's market strategy in China, and challenges in offshore wind turbine installation.
US offshore wind industry faces challenges but shows promise with commercial scale projects in NY and MA
Offshore wind turbines achieve high productivity levels of 40-60%, attracting key players like Vestas and Siemens Energy
Deep dives
Offshore Wind Industry Challenges in the US
The US offshore wind industry has faced difficulties recently, with around nine gigawatts of offtake contracts being canceled due to high inflation and interest rates impacting the technology's capital-intensive nature. Despite these challenges, the industry is starting to see some positive developments, such as the first commercial scale offshore wind projects coming online in New York and Massachusetts. States are adjusting subsidy mechanisms to offer developers more protection in offtake contracts, ensuring higher prices to account for project costs.
Offshore Wind Economics and Efficiency
Offshore wind is more efficient than solar, especially in productivity and consistent wind speeds. In offshore locations, wind turbines can achieve productivity levels of 40-60%, comparable to conventional generators like gas or coal plants. Companies such as Vestas, Siemens Energy, GE, and Ørsted are key players in building these offshore wind projects.
Challenges in Installing and Maintaining Offshore Wind Turbines
Installing offshore wind turbines involves specialized vessels known as jack-up vessels that can be expensive to secure. The shortage of these vessels globally poses a challenge for developers. If something goes wrong with a turbine or component, replacing it requires specialized vessels, making maintenance complex and time-sensitive.
Future Outlook for the US Offshore Wind Industry
Despite recent challenges, the US offshore wind industry shows promise with the development of larger scale projects and adjustments in offtake contracts. States are working towards addressing project cost uncertainties to support developers in building offshore wind farms. With the industry maturing and key players navigating complexities, the outlook for offshore wind energy in the US is gradually improving.
Larry Tabb, BI Director of Market Structure Research, on Wall Street Returns to T+1 Stock Trading After a Century. Pat Gallagher, CEO of Gallagher Insurance (Arthur Gallagher & C.) on his market macro-outlook and insurance landscape. Anurag Rana, Bloomberg Intelligence Senior Tech Analyst, on Apple’s China iPhone Shipments Up 52%. And Oliver Metcalfe, BNEF Head of Wind Research, on floating offshore wind prices.