Investors in wind energy projects in the United States are grappling with profitability challenges, raising concerns about the viability of these ventures.

Equinor and BP, prominent investors in US wind energy, have issued warnings about the uncertain future of projects amidst escalating construction expenses and supply chain disruptions. This dilemma is particularly pronounced in offshore wind farm developments, where developers are advocating for higher prices to offset mounting costs.

Joining the chorus of concern is Danish firm Orsted, which has decided to withdraw from an agreement to supply wind power from the Skipjack Wind project in Maryland, citing unprofitability.

Collectively, these setbacks have translated into significant financial losses, with the trio of Equinor, BP, and Orsted reporting a staggering $5 billion in losses from their US wind generation endeavors.

To address these challenges, state authorities have accommodated energy companies by permitting them to participate in bidding processes at increased costs. However, tensions have surfaced within joint ventures, such as the one between Equinor and BP, leading to renegotiations and the pursuit of more favorable terms.

Equinor and BP have each sought ownership of different projects, with Equinor assuming control of the Empire Wind project and BP taking over the Beacon Wind project. This transition has prompted contractual adjustments and renewed bidding processes to ensure profitability for the involved parties.

The outcomes of these bidding rounds, crucial for the future trajectory of US wind energy initiatives, are set to be revealed soon.

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