The artificially inflated bubble of so-called “green energy” has slowly but surely begun to burst. This is also shown by the latest data from Danish offshore wind energy giant Ørsted A/S. The company reported billions of dollars in losses due to problems in its US business. How long will this show run?
It is becoming clear that the so-called “green energy” are completely uneconomical and uneconomic without large-scale government subsidies, Even more so in an environment where there are rising interest rates and supply chain issues, as well as rising material and labor costs due to higher energy prices. Ørsted A/S, the Danish giant in offshore wind turbines, recently suffered a share price decline of almost a quarter. Because the numbers are bad, very bad.
Within just one day, the company’s market value fell by approximately 16 billion Danish kroner (2.14 billion euros). The reason: Three large projects in the United States (Ocean Wind 1, Sunrise Wind and Revolution Wind) are suffering delivery problems, resulting in write-offs amounting to 5 billion crowns. Rising interest costs increase the total cost by 5 billion crowns. Then negotiations with US authorities regarding tax credits amounting to 6 billion crowns stalled.
Without cheap loans and government subsidies (or tax breaks), these giant wind turbines are clearly not competitive. But low interest rates cannot be expected in the near future and the years of continuous subsidies will also end sooner or later. If things are already getting tough, how long could it take for a serious wave of bankruptcies to hit the entire wind industry?
It should be remembered that the first wind energy projects in Great Britain, among others, are disappearing because investors doubt their profitability. No wonder, because without government subsidies these power plants are simply not competitive and even a CERN professor recently said that wind power (at the current level of technology) is a complete failure.
