Equinor, the Norwegian state-controlled energy company, has announced its withdrawal from offshore wind projects in Spain and Portugal, citing rising costs in the industry as a key factor. This move is part of a broader strategy to focus on markets where the company can maintain profitability amid increasing financial pressures.
The decision comes as the offshore wind sector faces significant cost increases due to inflation, higher interest rates, and delays in supply chains. Eitrheim emphasized that these factors are making offshore wind projects more expensive and time-consuming, necessitating a reevaluation of the company's investment priorities.
Equinor did not disclose the specific capacity it had planned for the now-canceled projects in Spain and Portugal. However, the company has made it clear that it may consider withdrawing from additional markets if costs continue to rise.
Despite these exits, Equinor remains committed to its broader renewables strategy, which aims for 12-16 gigawatts (GW) of installed renewable energy capacity by 2030, up from 0.9 GW in 2023. However, Eitrheim cautioned that this target is not set in stone, as profitability remains the priority.
Equinor's renewables division is entering a busy period, with several significant projects nearing crucial stages. These include the first phase of the Dogger Bank offshore wind farm in the UK, which is being developed in partnership with SSE and Vaargroenn, as well as the Empire Wind project near New York and two Baltic Sea wind farms in Poland. These projects are expected to play a key role in the next wave of offshore wind growth for Equinor.
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