Ørsted has pushed back the planned start of commercial operations at its 704MW Revolution Wind project off the coast of Rhode Island due to construction delays for an onshore substation.
The Danish renewables major now expects to start commercial operations at the project in 2026, rather than in 2025 as originally planned.
This decision led to a DKK 2.3 billion (€308 million) impairment in its second-quarter financial results, which ultimately contributed to its losses more than tripling in the period.
The onshore substation is being built by Eversource on a military landfill site where permitting and site preparation have “proved to be more challenging than anticipated”, Ørsted CEO Mads Nipper conceded.
“The delayed construction of the onshore substation will result in knock-on impacts on the revenue profile and costs for extending the installation period,” he added.
“Consequently, an impairment has been recognised to reflect this.”
Ørsted has faced headwinds in the US offshore wind market in recent years – most notably with its Ocean Wind projects off New Jersey, which it eventually scrapped.
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