The past year has brought rough seas to the offshore wind sector. While the industry has faced many challenges, from politicians to tax credit guidelines, the key economic burden on these projects is, by far, the power purchase agreement (PPA) gap.
In 2023, four East Coast offshore wind projects terminated their offtake agreements with utility companies after seeing prices change dramatically since the contracts were signed nearly 4 or 5 years ago. The terminations have taken states, regulators, and developers for a spin, and with several offshore wind tenders on the horizon in early 2024, the questions around PPAs have become all more significant.
Click HERE to read our analysis on the industry hurdle as we look back at the best of PFR in 2023.