Equinor, BP want 54% price hike in power produced at three U.S. wind farms

Equinor and BP are seeking a 54% increase in the price of power produced at three planned offshore wind farms in the US. The partners requested enhanced offshore renewable energy credits compared with the terms originally agreed for the Empire Wind 1, Empire Wind 2, and Beacon Wind wind farms, which have a combined capacity of 3,300 MW. The New York State Energy Research and Development Authority (NYSERDA) said that the application would result in a 54% increase in the average price across the projects.

According to NYSERDA, the strike price for Empire Wind 1 would rise from $118.38 per megawatt hour (MWh) to $159.64/MWh, and for Empire Wind 2 from $107.50/MWh to $177.84/MWh. Beacon Wind would see the strike price rise from $118.00/MWh to $190.82/MWh. Equinor and BP argued that “rampant inflation, global supply chain disruptions, and soaring interest rates associated with the COVID-19 pandemic, the Russia-Ukraine conflict, and the increasing pace of the energy transition” drove up costs.

Denmark’s Orsted also cited similar pressures when it announced that it may book impairments of 16 billion Danish crowns ($2.3 billion) on its U.S. portfolio. Equinor, however, has not announced any impairments for its U.S. offshore wind business.

A group representing New York’s largest energy consumers responded to the petition, saying that the proposed price amendments would increase consumer costs for the three projects by $14.8 billion over a 30-year contract tenure. The group asked the commission to decline the request, arguing “there are reasons to be skeptical of the suggestion” that the project may be abandoned otherwise.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Tesla predicts production to start at Mexico plant in 2026 or 2027

Tesla’s plans for a major new factory in Mexico may be pushed back to 2026 or 2027. A Chinese supplier revealed that they and several other Chinese companies may delay their operations near the future Tesla factory due to the automaker’s slower-than-expected timeline.

China targets Japan defense contractors in export curb escalation

China has added twenty Japanese entities to its export control list for dual-use items, preventing Chinese firms from selling to them without prior approval and citing Tokyo’s ambitions for remilitarization, the latest escalation in the export curbs that Beijing has targeted at Japan since the diplomatic breakdown over Taiwan.

The action, aimed at limiting Japan’s new type of militarism and its nuclear ambitions, illustrates the continuing deterioration of the Sino-Japanese relationship and the use of the export controls as an instrument of the strategic and diplomatic confrontation between the two powers.

Global trade order in peril as Trump triggers auto tariff showdown

President Donald Trump’s decision to impose a 25% tariff on imported vehicles has triggered a wave of retaliatory threats from key U.S. allies and deepened global economic tensions. The tariffs, set to take effect on April 3, follow Trump’s plan to also introduce reciprocal tariffs on countries he accuses of unfair trade practices. With $474 billion in automotive imports last year — including $220 billion in passenger cars — the new measures will hit major U.S. suppliers like Mexico, Japan, South Korea, Canada, and Germany especially hard.

European leaders swiftly condemned the move. European Commission President Ursula von der Leyen described the tariffs as damaging to both businesses and consumers, while Canadian Prime Minister Mark Carney called it a “direct attack” and pledged potential retaliatory measures. Germany’s Economy Minister Robert Habeck urged the EU to adopt a firm response, stating that Europe must not take the tariffs “lying down.”

Stay informed

error: Content is protected !!