Due to the rising interest rates in the USA, the Mayflower Wind project in partnership with Shell, EDP and Engie was requested to be postponed. Continued disruptions to offshore wind farm projects on the country’s Atlantic coast pose a risk to Biden’s goal of providing wind power to 10 million homes by 2030.
Energy companies Shell New Energies, EDP Renewables and Engie jointly requested the postponement of the offshore wind farm project Mayflower Wind, which they plan to be located in the north of the US Atlantic coast.
Lawyers for the project told regulators in the state of Massachusetts that the recent aggressive rate hike by the Fed has put the Mayflower Wind project in “significant difficulties” financially. The lawyers also requested time from the regulators to meet with other institutions before the sales contracts for the electricity to be produced by the project are concluded.
This potential for delay in the project is the latest in a chain of disruptions in Biden’s strategy to deliver clean energy to cities on the east coast of the US. As companies face supply chain disruptions, inflation and rising interest rates, Biden’s goal of powering 10 million homes from offshore wind farms by 2030 is at risk.
Projects of other companies are also delayed
Energy company Avangrid, located in the New England region of the USA, requested this month from regulators to cancel the energy sales agreements for the offshore wind farm it has built. Public Service Enterprise Group, a utility company in New Jersey, said in October that it was considering withdrawing its investment in an offshore wind farm in the Atlantic Ocean.