GE Vernova CEO Scott Strazik announced plans to delay seeking new orders for offshore wind turbines, citing unfavorable market conditions as the offshore wind sector faces supply chain challenges and rising interest rates.
Strazik stated his intent to wait for an improved economic environment to pursue additional orders, a move highlighted in an article by the Financial Times.
The offshore wind industry, recently impacted by uncertainties surrounding U.S. policy following Donald Trump's re-election, has experienced a strained period.
However, GE Vernova's strategy to focus on its existing projects, including the high-profile Dogger Bank Wind Farm in the UK's North Sea, was in place well before the recent election and is not directly influenced by Trump's victory.
Strazik emphasized the added complexity of offshore projects compared to onshore ones, pointing to the operational and logistical challenges unique to offshore wind installations.
He expressed hope that the market could evolve over the next two years to present “economic incentives and opportunities” for offshore wind on more favorable terms than those currently available.
At present, GE Vernova's offshore turbine unit holds a $3 billion backlog of orders, projected to take approximately two years to complete. The backlog, which has seen no new additions in nearly three years, underscores the company's priority on fulfilling existing commitments rather than expanding order volumes under current market conditions.
Strazik noted, “We're much more focused on executing and serving our existing customers as well as we possibly can,” reflecting a cautious approach in the challenging pricing landscape.
