In offshore wind, money isn’t everything

By Seb Kennedy, associate editor at E-FWD and founding editor of Energy Flux News

The UK offshore wind industry is in search of a new narrative. The story of dazzlingly rapid cost reductions achieved at cut-throat auctions has collided spectacularly with an ugly new reality in today’s post-Ukraine, post-pandemic world. Shredded supply chains, soaring inflation and successive interest rate hikes have decimated the economics of projects that secured Contracts for Difference (CfDs) at ambitiously low strike prices in the industry’s halcyon pre-war days.