Bank: Low prices make the US less attractive short-term

A surprisingly low price lead to Vineyard Wind's victory in the first major US offshore wind tender in Massachusetts. Meanwhile, Danish Ørsted walked away empty-handed after learning that competition is tough.

Photo: PR Ørsted

The low price for Vineyard Wind highlights that, from the very start, there is tough competition in getting a foothold in the US, a new market for offshore wind, says Sydbank's Ørsted analyst, Morten Imsgard. He does not consider it unthinkable that Danish utility Ørsted, which has thus far left the first tender round in the US empty-handed, will be rethinking its strategy.

"Ørsted has gained insight into what competitors are willing to do. This could mean going back to the drawing board and reevaluating how to enter the US market. I believe that the first strategy has been that Ørsted as a market leader in Europe with the largest know-how would like to use this advantage to build some projects with more risk on some markets, where returns are also higher," says Imsgard to Ritzau Finans.

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