Just like many industries, soaring commodities and material costs have impacted the Utilities sector. Purchasing costs for renewable equipment, especially offshore wind farms, have made some utilities renouncing some of their projects.
Recently, the Danish utility Orsted announced depreciation of €2.1bn on its US offshore wind farm projects. Soaring costs, higher interest rates and uncertainty on related subsidies have had a dramatic impact on expected return on investment. Vattenfall,…
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Source: https://think.ing.com/articles/european-utilities-outlook-2024/