“The urgency to transition to clean, renewable energy is an irreversible reality,” read a statement signed Wednesday by nearly 40 environmental, labor and community groups from New Jersey who support offshore wind, including the state’s chapter of the Sierra Club. The hottest Northern Hemisphere summer ever measured hit this year, according to the World Meteorological Organization and the European climate service Copernicus. There are other, cheaper ways to develop power in the U.S., most notably with solar and natural gas.”īut the main appeal of offshore wind for supporters, including environmentalists, many state governments and the Biden administration is precisely that it is not a fossil fuel business. “Higher interest rates are adding to financing costs for these projects. made some headlines, these projects ultimately come down to economics, so higher costs and lower power prices are working against offshore wind,” said Louis Knight, an analyst at Third Bridge, a research firm advising private equity and other businesses. “While periodic local opposition in the U.S. New Jersey approved a tax break for Orsted in July, letting it keep federal tax credits that otherwise would have gone to ratepayers.

New York rejected such a request two weeks ago. Some projects already have been canceled, and many offshore wind developers are seeking better terms from governments with whom they have already contracted.

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