Ørsted backs out of original financial agreement for offshore wind energy project
OCEAN CITY, Md. – Ørsted plans to reposition two of its Wind energy projects they were planned to be set off the coast of Ocean City, but after a meeting with the State of Maryland, Ørsted has withdrawn from the state’s Public Service Commission Orders approving projects for Skipjack one and two.
Ørsted representatives told 47ABC that they have withdrawn from the financial agreement on what they would have charged for renewable energy, but this is an agreement that was made about seven years ago.
This is delaying the future purchasing and sale of wind power on the Eastern Shore.
Ørsted commented that with market conditions changing based on the economy and inflation, the previous agreement is not financially feasible.
The Ocean City Mayor Rick Meehan is encouraged by the announcement.
“We are going to continue to hold our position,” Meehan said. “This is too important for the town of Ocean City.”
Ocean City Mayor Rick Meehan says this move only highlights just one of the many concerns some individuals have about off shore wind energy.
“The cost of these projects have gone up tremendously and I think everybody needs to take a step back and see if they a truly financially feasible.”
He hopes this will buy a little time for the state and offshore wind farms companies to consider other concerns that residents and locals of the Eastern Shore have expressed.
“Not just the financial difficulties of these projects, but concerns expressed by the town of Ocean City, commercial fishermen, recreational fishermen and other environmental agencies.”
Looking ahead, Mayor Meehan says he hopes that the projects are more financially feasible for residents in towns like Ocean City.
“It is going to be interesting to see exactly what they determine the cost and requirements will be to actually fund the construction of the projects.”
In a news release, Ørsted’s CEO said the company anticipates several other opportunities for the projects and added that they would evaluate each one as they become available.
Ørsted says about ten gigawats of offshore wind energy is expected to be awarded this year.
