Orsted Slumps as US Wind Cost Ruling Stokes Writedown Fear
- Shares drop to six-year low after New York denies adjustment
- Orsted faces decision on whether to walk away from US projects
An offshore wind farm at Rhode Island, US.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
Orsted A/S shares dropped to a six-year low after New York regulators rejected a cost adjustment for offshore wind farms, prompting investor fears about a further writedown for one of the company’s US projects.
The New York Public Service Commission unanimously decided Thursday that developers must abide by the terms of existing contracts for projects, including Orsted’s Sunrise Wind, an 880-megawatt wind farm it’s developing with Eversource Energy. Offshore wind developers are being hit by the rising costs of materials, higher interest rates and inflation.