Demand for green power in the United States is expected to grow, regardless of the upcoming presidential election results, according to a Reuters report.
Leaders in the wind energy sector, including companies like Vestas and Orsted, emphasised that renewable energy demand will keep rising. Reshoring efforts and the increasing needs of the tech sector is driving this growth.
Offshore Wind Faces Challenges
However, offshore wind developers have faced mounting challenges in recent years. These include rising raw material costs, high interest rates, inadequate grid connections, and competition from Chinese manufacturers. As a result, several companies, including BP and Equinor, have scaled back their offshore wind ambitions.
Orsted, the world’s largest offshore wind farm developer, flagged issues at a significant US project. The company reported construction difficulties and rising costs at its 704-megawatt Revolution Wind project, which added an extra 1.7 billion Danish crowns ($248 million) in costs during the third quarter.
Orsted’s CEO, Mads Nipper, explained that the offshore wind industry is still in its early stages and has faced substantial delays. This includes a shortage of installation vessels and complications with offshore substation installation, according to a Reuters report.
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Political Divide on Offshore Wind
The US offshore wind industry has also been caught in political crossfire. Vice President Kamala Harris strongly supports ambitious offshore wind targets, aligning with President Biden’s green energy goals.
Republican candidate Donald Trump, if elected, has pledged to stop offshore wind projects. He argues they harm the environment by killing birds and whales.
Despite this political divide, industry leaders remain optimistic. Orsted’s CEO stated that, regardless of the election outcome, demand for renewable energy—particularly in the northeastern US—will keep growing.
Vestas, the world’s largest wind turbine manufacturer, agreed, noting that the overall demand for green energy far exceeds the current supply.
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Financial Strain and Industry Outlook
While the long-term outlook remains positive, the industry has been financially strained. Vestas recently warned of lower profit margins, sending shares down more than 10%. Orsted also reported a decline in group operating profit as inflation, interest rate hikes, and supply chain issues continue to affect the sector.
Despite these challenges, industry leaders remain confident in the future of green energy. As demand for “green electrons” grows, renewable energy is set to remain a key driver of US energy policy, no matter who wins the election.