The green energy industry just had an absolutely brutal week

The past week has been marked by troubling developments for the state of the green energy industry, suggesting that President Joe Biden’s climate agenda may be in jeopardy.

Offshore wind companies cancel projects and executives sound the alarm about the state of the industry, while solar companies and indexes have seen their value continue a months-long slide that has resulted in lower earnings forecasts and the bankruptcy of a provider of solar-focused loans. These developments suggest that Biden’s broad green energy plans could be in trouble, especially given the intractable nature of some of the crucial economic problems affecting the industries.

“The promoters of this energy transition bet the estate on three rent-seeking industries: wind, solar and electricity. Two legs of this three-legged stool are now showing signs of financial distress despite the huge subsidies they have already received from various levels of government,” David Blackmon, a 40-year veteran of the oil and gas industry who now writes and consult widely. on energy, he told the Daily Caller News Foundation. “American consumers, who are paying the price for this in the form of skyrocketing costs of all forms of energy, should demand that their representatives hang up the phone when calls come in from wind executives and automakers asking for even more.”

.@larry_kudlow: “The Green New Deal is destroying jobs.” pic.twitter.com/5GzLTdVvKH

— Daily Caller (@DailyCaller) September 26, 2023

Orsted, a Danish offshore wind company, announced this on Tuesday canceled two major developments on the New Jersey shore. Company executives blamed factors such as inflation, interest rates and supply chain issues, saying the problems had left the company with no choice but to walk away from major projects.

Since the cancellations, the company’s stock price has fallen even more and S&P has done it indicated which is considering downgrading the company’s credit rating. But Orsted is not the only offshore wind company showing signs that the industry may be in an extremely precarious position.

The US offshore wind industry appears to be “fundamentally broken” due to problems with permits and rising costs, Anja-Isabel Dotzenrath, head of gas and low-carbon energy at British Petroleum (BP), said on Wednesday. in a conference seconds at Bloomberg News. “There is a fundamental reset needed,” he said, suggesting there could be solutions and that his company is working with its partner to evaluate “options for its offshore wind projects in the US to mitigate the effect of inflationary pressures and allow delays”.

Under Biden’s leadership, the federal government has done a lot subsidized offshore wind developments, mainly through the Inflation Reduction Act (IRA), in a offer for the industry to provide enough energy to power 10 million American homes by 2030. The state of the industry is so dire that numerous energy market experts he said the DCNF that a government bailout for the industry may be around the corner. (RELATED: Dems’ own banking rules could stifle investment in green energy)

Peter Doocy of Fox News Press @PremsaSec on where laid-off energy workers would go to get “green” jobs:

President Biden “unveiled a plan that will not only create millions of good union jobs, but also help address the climate crisis.”
pic.twitter.com/MNJauWzYoB

— Daily Caller (@DailyCaller) February 8, 2021

The offshore wind target is only one part of the administration efforts decarbonize the US energy sector by 2035 and after the entire US economy reaches net zero carbon dioxide emissions by 2050.

Like offshore wind, the administration is counting on the emergence of solar energy in the coming years as a replacement for energy generated by fossil fuel infrastructures. Solar energy is also similar to wind in that it is intermittent and currently more expensive than energy from natural gas and other fossil fuels. seconds to Peter Grossman, professor emeritus of economics at Butler University.

Solar companies have generally had a tough 2023 so far, and last week was no different: While the stocks of several leading solar producers fell, Sunlight Financing, a company that offered loans to consumers to buy residential solar systems, archived for Chapter 11 bankruptcy on Monday. Several leading home system installers also cut their outlook for the year this week as higher interest rates and inflation have cooled consumer demand. seconds at Bloomberg News.

“The green industry makes very expensive and mostly ineffective products,” Larry Behrens, director of communications for Power The Future, told the DCNF. “However, instead of admitting reality, we have an administration in Washington that is doubling down and working overtime to force these terrible products into our lives,” he continued, adding that “thanks to the laughable called the Joe Biden Inflation Reduction Act. he has a $369 billion green fund and has commissioned a political operative… Joe Biden knows that when the green agenda fails, his legacy will sink even further , so there won’t be an amount too high to keep the green boondoggles afloat for as long as possible.”

The White House, Orsted, BP and Sunlight Financing did not immediately respond to requests for comment.

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