Rasmus Errboe, the new CEO of Orsted, announced a 25% reduction in the company’s investment plans, attributed to setbacks in offshore wind projects like those in New Jersey. Factors including inflation, high interest rates, and regulatory challenges have influenced Orsted's decision to scale back. Additionally, President Trump's stance on offshore wind complicates future projects off New York and Rhode Island. This trend echoes Equinor's recent announcement to halve its investment in low-emission projects, highlighting a cautious approach in the renewable energy sector amid an uncertain economic landscape.
Over the past two years, Orsted has backed away from some huge wind projects it planned to build off the East Coast of the United States, notably off New Jersey, because of delays, inflation and higher interest rates.
We are working relentlessly to minimize the risks given the market conditions and the economic climate, Mr. Errboe said. I'm not able to hand out any guarantees.
The energy transition is moving slower than expected, Anders Opedal, chief executive of Equinor, said Wednesday at a meeting in London.
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