IS THE FINANCIAL WIND BLOWING AGAINST RENEWABLES ?

Now the wider media seems to be waking up to a crisis in the wind industry which not only has a serious impact on UK energy policy but also global implications, witnessed by a long piece in the Wall Street Journal . Viewed by governments as key to meeting climate targets and boosting electricity supplies, the WSJ tells us that the wind business, is facing a “dangerous market squall”. After months of warnings about rising prices and logistical hiccups, developers and would-be buyers of wind power are scrapping contracts, putting off projects and postponing investment decisions. The setbacks are piling up for both onshore and offshore projects, but the latter’s problems are more acute. In recent weeks, we learn, at least 10 offshore projects totalling around $33 billion in planned spending have been delayed or otherwise hit the doldrums across the US and Europe. The scale of this “market squall” is indicated by the number of projects on hold, with a potential installed capacity of 11.7 GW – enough to power roughly all Texas households and then some (in theory). Says the WSJ, this holdup could push 2030 offshore wind targets out of reach for the Biden administration and European governments. The technology, it adds, is considered vital in the energy transition toward cleaner electricity supplies and away from fossil fuels. The reference to “European governments” is particularly relevant to the UK, which is the regional leader in the provision of wind power and entirely dependent on the expansion of the wind fleet to meet its self-imposed net-zero targets. Additional pressure is created in the UK by the lack of speed with electrical transmission projects where planning consent for pylons can take years due to “nimbyism” in vote sensitive areas.