Power services company GE Vernova could not reach an agreement to supply smaller turbines for three New York offshore wind developments before the contracts were canceled, CEO Scott Strazik told Reuters on Thursday.
Last week, New York abandoned contracts it had awarded for three major offshore wind developments.
State officials largely blamed the cancellations on GE Vernova's decision to scrap its 18 megawatt turbine plans, which the wind farm developers had planned to use.
"We just collectively, as a system, couldn't get it across the line on the those projects in that auction," Strazik said.
Strazik said the move away from the super-sized turbine was not uncommon in the product development process and he expects a 15.5 megawatt replacement prototype turbine in late 2025.
The U.S. offshore wind industry has been dogged by ballooning costs tied to supply chain problems, high interest rates and inflation.
There has been a cascade of project cancellations with three European developers taking a combined $5 billion in writedowns in the last year.
Offshore wind is key to plans by U.S. President Joe Biden and numerous U.S. states to increase use of renewable energy to power homes, business and industry to help slow the effects of climate change.
(Reuters - Reporting by Laila Kearney; editing by Ros Russell and Jason Neely)