Wind companies have been given billions of US dollars in subsidies and even more with the Inflation Reduction Act. However, they are still suffering increasing financial losses.
According to Just the News, David Blackmon, an energy analyst in the oil and gas industry, said they’ll be lobbying for even more energy dollars soon, and we should all prepare ourselves.
The Obama and the Biden administrations decide which industries make it and which don’t. However, that doesn’t work well for taxpayers, and it certainly doesn’t work as well as letting the market decide what works.
GE executives reported that they would lose $1 billion in 2023 in offshore wind, although the wind segment onshore turned a profit in the third quarter thanks to a 40% increase in North American equipment orders.
They said that they expect similar losses next year but improved cash performance. It’s a small bright spot for them.
CNBC reports that analysts at Kepler Chevreaux suggest the company remains “vulnerable to sizeable negative cash flow swings in the next fiscal year.”
Deutsch Bank, earlier this year, reported that its 12-month share price forecast for Danish energy giant Orsted was down by 36%. They said supplier delays, lower tax credits, and rising rates are causing the problems.
Is any of that going to change any time soon with taxpayers strapped and Maoist China and Democrat regulations causing delays?
ONYX Insight, which monitors wind turbines and tracks over 14,000 across 30 countries, revealed in a recent report that supply chains remain the greatest challenge to operations across the sector.
Wind energy, like solar, relies on Communist China for parts.
The Entire Industry Is In Trouble
The Wall Street Journal reported in August that the wind business is key to governments meeting climate targets and boosting electricity supplies. It’s facing a dangerous market crisis. Rising prices and logistical problems have led to would-be buyers of wind power scrapping contracts, putting off projects, and postponing investment decisions.
The Wall Street Journal reported that at least ten Northshore projects totaling about $33 billion in planned spending in the US in Europe have been put off. It’s a crisis.
The Norwegian energy major and BP are developing three wind farms off the coast of New York to power about 2,000,000 homes, but told the state in June that it will need to renegotiate power prices or else the projects won’t get financed.
Projects that would power roughly all Texas households are being pushed off beyond 2030, Biden’s deadline.
As David Solomon of Just the News reported, it’s only a matter of time before the Biden administration spends more money we don’t have to shore up these failing enterprises.
None of this considers that they don’t work when they freeze up, or the wind doesn’t blow. It also doesn’t consider the coming waste disposal problem. The other problem already mentioned is that the radical left is putting us at the mercy of the Maoist Chinese.
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