In a dramatic recalibration of its renewable energy ambitions, Norway’s Equinor is cutting 20% of staff from its renewables division—a move signaling a sharper, leaner focus on a turbulent sector. Once a trailblazer in offshore wind, Equinor is now retrenching amid rising costs, supply-chain snags, and sky-high interest rates that have left the industry struggling to keep its lofty promises. Joining peers like Shell and BP in pivoting toward profitability over expansion, Equinor’s shift underscores a broader reckoning for energy giants navigating the renewables conundrum.
The numbers are stark: 250 roles in the renewable energy division are being eliminated, though not all workers will exit the company. Those employed directly by the parent company are being shuffled into other areas, reflecting a softer approach to the hard choices being made. Yet, this reshuffling comes with a clear message—Equinor is dialing back its global ambitions, having already pulled the plug on offshore wind ventures in Vietnam, Spain, Portugal, France, and scaled-down plans in Australia. These are not just belt-tightening measures; they’re strategic withdrawals from high-risk markets.
Still, Equinor isn’t abandoning renewables altogether. The company will now hone in on its three flagship offshore wind projects—Dogger Bank in the UK, Empire Wind 1 in the US, and Baltyk 2 and 3 in Poland. With a goal of installing 12-16 GW of renewable capacity by 2030 still officially intact, the company is banking on fewer but bigger bets. By reducing participation in tenders and auctions, Equinor is playing a careful game, betting its resources on the projects most likely to pay dividends in a volatile market.
This downsizing paints a vivid picture of the renewable energy sector’s current challenges. The dream of a swift green energy transition has hit the hard realities of cost inflation and global economic uncertainty. For Equinor and its peers, the balancing act is delicate: staying committed to renewables while avoiding the pitfalls of overextension. As the company prepares for its annual capital markets update, the industry will watch closely to see whether this strategy marks a pause or a pivot in the race toward a greener future.
(Source: Renewable Energy News | Reuters)
