Japanese companies are dropping out of offshore wind projects in Taiwan, one of fastest growing markets for the technology, as rising costs and worsening delays plunge the industry into trouble worldwide. This will affect Taiwan's plans to eliminate nuclear power, cut the use of coal, increase natural gas and increase offshore wind capacity.

Germany’s constitutional court ruled against reallocating the unspent money borrowed during the coronavirus pandemic for the energy transition, which will affect government plans. The constitution places limits on government borrowing. The pandemic allowed emergency borrowing, but using that money now for other purposes is unconstitutional.

The German government will provide €7.5 bln of guarantees as part of a rescue package, to save the €110 bln energy projects planned by the company. Engineering problems of the new wind turbines reduced new orders, costs have spiralled, while long term supply contracts locked in sale prices. The company will record a €4.5 bln loss for 2023.

NuScale Power and the Utah Associated Municipal Power Systems have ended the 462MW project. In January, NuScale raised the target price for power from the project from $58/MWh to $89/MWh, citing a “changing financial landscape”. NuScale's VOYGR is the only small modular nuclear reactor (SMR) design certified for use in the United States.

Shares in Ørsted plunged 26% today, extending their drop this year to 60%, after the group recorded $4bn of impairments, after it stopped two projects off the New Jersey coast. The offshore wind industry, which has been championed by governments, has been hit hard by supply chain disruptions, rising costs and higher interest rates.

“Offshore Wind remains difficult this year with losses of roughly $1 billion,” said GE CEO Larry Culp. Offshore-wind developers face increasing challenges including supply-chain disruptions, rising costs for components and higher interest rates. The company expects to spin off its power and renewable energy operations next year, to become GE Vernova.

Sector falls 20% in two months. The decline comes despite tens of billions of dollars in tax credits, subsidies and loans by governments in the US and Europe. The renewable sector is particularly vulnerable to high interest rates, because companies agree long-term contracts, fixing the price at which they will sell energy, before developing their projects.

The state, which renationalised EDF, is at odds with boss Luc Rémont, particularly over the way nuclear power prices are regulated, just ahead of its biggest reactor construction programme. EDF has net debt of €65bn with annual spending needs of €25bn per year, up from €16bn-€17bn in the past, and which EDF does not want to finance with more loans.

Prices of PV modules have dropped by more than a quarter since the beginning of the year, according to the industry trade group SolarPower. This is creating concrete risks for companies to go into insolvency as their significant stock will need to be devalued. It calls on the European Commission to buy up European companies' solar module stockpiles.

The last US-owned enrichment plant closed in 2013. Rosatom is the only company that does everything in-house, from ore extraction to fuel enrichment. Its main competitors are European companies Orano and Urenco. Most vulnerable are small modular reactors that rely on uranium enriched to higher levels. Rosatom supplies all of such fuel to the US.

Wind turbine maker Vestas warned of supply chain issues and a slowdown in approvals for new wind power projects as it returned to a quarterly loss. It increased its price for onshore and offshore turbines to €1.04mn per MW from €0.97mn last year. Orders for its turbines rose by 8% in MW. Its warranty costs were up 39% and amounted to 4.5% of revenue.

Vattenfall spent years planning 140 turbines off England's east coast. Now it stopped the project. Surging costs of turbines, labour and financing rendered it unviable given the low price locked in for its electricity. The cost of building offshore wind farms has climbed 40% this year and they are vulnerable to rising interest rates due to high upfront investments.