EDP Renewables' subsidiary, Ocean Winds, has recorded a €133 million impairment on its US offshore wind business, reflecting potential delays to the 2.4GW SouthCoast Wind project off the coast of Massachusetts. The impairment accounts for a possible four-year delay in the project's development.
The delay scenario is considered a “worst-case” scenario, according to EDP Renewables CEO Miguel Stilwell d'Andrade, and stems from uncertainty regarding the review process for offshore wind permits under the administration of President Donald Trump. While the project had secured final federal approval for its construction and operations plan under the Biden administration, the impact of Trump's January 20th executive orders, which imposed an indefinite pause on federal offshore wind permits, has led to concerns about the timeline.
Stilwell d'Andrade explained in a statement: “The possible delay is a worst-case scenario, and it's based on uncertainty about what the Trump administration will do with reviews of existing offshore wind permits.”
Ocean Winds' decision to book the impairment was based on a precautionary analysis of potential delays resulting from the executive orders, according to EDP Renewables Chief Financial Officer Rui Texeira. The company included the impairment in its 27 February annual results report.
The SouthCoast Wind project, a collaboration between Massachusetts and Rhode Island, has faced delays in finalizing contracts for the 1,287MW portion of the total 2.4GW capacity, which was initially scheduled for procurement in January.
Despite these setbacks, Stilwell d'Andrade assured analysts that the project is “still ready to go” and has a power purchase agreement in place, with “an attractive price” awaiting signature.
