Explainer-Why the offshore wind power industry has hit turbulence

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By Nina Chestney and Susanna Twidale LONDON (Reuters) - Britain's latest subsidy auction for new renewable energy projects failed to attract bidders ...

STORY CONTINUES BELOW THESE SALTWIRE VIDEOSLONDON - Britain's latest subsidy auction for new renewable energy projects failed to attract bidders from the offshore wind industry, raising fears among developers and environmental groups that the country may struggle to meet its climate goals.

Limits on the number of workers allowed on site and delays in components from China and elsewhere meant that some wind developers had to delay or even cancel projects. But the expected revenues of those planning to build wind turbines have not risen in tandem. Many governments index the prices paid for wind energy, usually through auctions, which are often too low, analysts at Wood Mackenzie said.

Traditional wind project developers, such as utilities, increasingly face competition from oil and gas majors seeking to diversify their portfolios, who have often outbid them in wind tenders and auctions.

 

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