Grid operator Elia faces setbacks with US expansion
Belgian grid operator Elia is grappling with challenges with its US expansion, as two of its three American projects encounter significant obstacles. Most notably, the subsidy contract for a major high-voltage line to New York has been terminated due to escalating costs.
"In November, we decided in discussions with the New York authorities to abandon the project," Elia spokesperson Marleen Vanhecke said. "Due to inflation and cost increases in the supply chains, it was no longer economically viable enough."
She likened the situation to several American offshore wind projects that were recently cancelled for similar economic reasons.
The high-voltage line project, which was meant to deliver renewable energy to New York, suffered from the inflationary pressures that have affected numerous infrastructure projects across the US. Elia and its consortium partners are hopeful that New York will launch a new auction with revised subsidy terms.
"The intention is that we will sign up again when it is opened, as far as we are concerned with the same partners," Vanhecke added.
The difficulties with the New York project are compounded by delays in another Elia venture: Leading Light, a large wind farm off the coast of New Jersey. The project has struggled to secure an affordable turbine supplier, forcing Elia to postpone decisions twice.
© BELGA PHOTO DIRK WAEM
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