Orsted Says US Offshore Wind Deals Protect Against Inflation Shocks

The head of Danish energy giant Orsted A/S says the US is an attractive place to build new offshore wind farms even after inflationary shocks devastated the sector over the past year. The reason: the newest deals to sell electricity include crucial provisions that increase the price of power if inflation goes up.

“When US states choose to offer inflation protection, that increases the attractiveness of the US,” Orsted A/S Chief Executive Officer Mads Nipper said in an interview Wednesday.  

It’s a different approach after pandemic-era inflation spikes and supply-chain disruptions rendered many US offshore wind projects unprofitable, which roiled the industry. Now states including New York and New Jersey are negotiating electricity contracts that stipulate prices rising alongside the consumer price index and other inflation indices, he said. 

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