March 20, 2023
Again in May 2023, Siemens’ Tim Dawidowsky’s commented, “it’s all about cash.” Obviously, Dawidowsky would like to see European turbine makers get more money – and he’s not the only one. We reported on that comment in an Uptime Podcast episode the following week, along with other concerns about energy pricing strategies.
Because different countries finance energy in vastly different ways, the industry absolutely does not enjoy a level playing field. While many European countries control energy developments outright – and other countries, like the US, has a long history of incentives and subsidy programs – it is difficult to determine actual costs, true profits and losses, and almost impossible to compare energy costs between nations....
That doesn’t mean investment has ground to a complete halt. Some projects in the US and the UK are still going ahead, despite cost increases. And earlier this month, oil majors BP Plc and TotalEnergies SE bid €12.6 billion ($14 million) to develop offshore wind farms in Germany’s North Sea. But canceled and delayed projects show that if governments are committed to offshore wind, they’ll have to pay more to get it.
Capital costs and prices for turbines, cables and other equipment have “gone up sharply,” Mads Nipper, chief executive officer at Orsted, said in a post on LinkedIn. “This means that price of renewable energy regrettably must come up temporarily after years of steep decline.”...




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