Norway’s Equinor has announced a reduction in its renewable energy targets [1] for 2030, citing challenging market conditions. The company now aims for an installed capacity of 10-12 gigawatts (GW) by 2030, down from its previous target of 12-16 GW. This decision follows similar moves by other European energy firms like BP and Shell, which have also scaled back their renewable energy plans.
Equinor’s strategy update highlighted several industry challenges, including rising interest rates, cost inflation, supply bottlenecks, and changing regulatory regimes, which have made the offshore wind sector less attractive. The company emphasized that this adjustment is intended to adapt to current market conditions and strengthen shareholder value creation.
Additionally, Equinor has decided to abandon its previous target of allocating 50% of gross capital expenditures to renewables and low-carbon solutions by 2030. Despite these changes, Equinor reported slightly higher-than-expected profits for the final quarter of 2024 and raised its oil and gas output forecast.
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[1] Equinor cuts renewable energy target due to industry headwinds https://www.reuters.com/sustainability/climate-energy/equinor-cuts-renewable-energy-target-due-industry-headwinds-2025-02-05/