Markus Krebber, CEO of RWE AG, Germany's largest power producer, highlighted on Thursday that offshore wind development costs in the United States are 30% higher than those in Europe due to the industry's relative lack of maturity.
Krebber emphasized that offshore wind has become increasingly complex, attributing this complexity to factors such as inflation and supply chain delays.
While offshore wind is crucial for decarbonizing power grids and addressing climate change, the industry has faced challenges including project cancellations and substantial financial losses due to issues like soaring inflation, high interest rates, and supply chain disruptions.
RWE, in partnership with National Grid, is actively involved in developing the Community Offshore Wind project off the coast of New York.
Krebber expressed optimism about the future of the U.S. offshore wind industry, stating that while the current program may take some time to become more competitive, he expects improvements in the coming years as supply chain bottlenecks are resolved.
