Danish renewable energy developer Ørsted has changed its plans for the 966-MW Skipjack Wind project off the coast of Maryland in the US.
The company claimed that financial incentives provided by Maryland were no longer “commercially viable because of today’s challenging market conditions, including inflation, high interest rates, and supply chain constraints.”
As a result, Ørsted said it was withdrawing from the Maryland Public Service Commission orders approving the Skipjack 1 and 2 projects – which called for the installation of 60 to 70 wind turbines off the coast of the Delmarva peninsula.
The Danish firm did state however that it intends to continue advancing development and permitting for the combined project, including submission of its updated construction and operations plan to the Bureau of Ocean Energy Management.
Regardless of his disappointment in this development, Maryland Governor Wes Moore said in a statement that the state will continue to pursue a goal of 100% clean energy by 2035.
This is not the first offshore wind project the company has abandoned as it recently decided to cease the development of its Ocean Wind 1 and 2 projects offshore New Jersey.
Ørsted is still advancing its South Fork Wind project off New York, along with partner Eversource, which is set to reach full operation in the weeks ahead as the first commercial-scale offshore wind farm in America.
Revolution Wind, also developed in tandem with Eversource, set to deliver power to Rhode Island and Connecticut, has started construction activities while another project serving New York, Sunrise Wind, was re-submitted on Thursday in the New York 4 solicitation. If successful in the round, Ørsted will take over full ownership of the project.
