Two major offshore wind power developers are warning again of economic problems with projects off the New York and New England coasts.

Ørsted on Thursday notified investors that there would be a cost impairment of 2.5 billion kroner (roughly $365 million U.S.) on the 924-MW Sunrise Wind project in New York, its 50/50 venture with Eversource Energy (NYSE:ES), because of rising interest rates, higher capital costs and inflation.

And Avangrid (NYSE:AGR), which has said repeatedly that its 1,232-MW Commonwealth Wind project will be impossible to finance as negotiated, filed an appeal Thursday with the Massachusetts Department of Public Utilities, seeking once again to exit the power purchase agreements.

Inflation is hitting many areas of the renewable energy industry, particularly the offshore wind sector, which is forming nearly from scratch in the U.S. (See related story, Inflation Throwing a Wrench into Renewable Development.)

During a conference call Friday with Ørsted CEO Mads Nipper, financial analysts drilled in the company’s offshore projects broadly and Sunrise specifically.

Nipper said Ørsted is negotiating contracts for Sunrise in a very expensive environment, particularly for transportation and installation costs. Barring further increases in interest rates, he said, Ørsted does not expect 2023 impairments on other projects in its offshore portfolio, which were negotiated in less expensive environments.

An installation vessel is being built for Sunrise, Nipper added, and while it is a bit behind schedule, it should be ready in time to work next year.

Like Avangrid, Ørsted says it remains committed to its Northeastern offshore wind projects. It previously acquired the first commercial OSW project in the U.S., Block Island Wind in Rhode Island, and is a partner in the construction of the second, South Fork Wind in New York.

On Wednesday, a day before it quantified the financial obstacles facing Sunrise, Ørsted announced it had acquired Public Service Enterprise Group’s (NYSE:PEG) 25% share of Ocean Wind 1, giving it 100% ownership of the 1,100-MW project off the New Jersey coast. Nipper told analysts Friday that PSEG’s exit did not indicate the project was in trouble; rather, it was a strategic move to optimize tax credits.

The company said preliminary unaudited results show 2022 earnings from its worldwide offshore business down 9.5% from 2021, primarily because of delays to three projects and impacts from hedging. But it expects significantly higher offshore earnings in 2023.

Ørsted’s stock price dropped 8.7% in trading Friday.

The Commonwealth project has been unraveling for the last few months, with Avangrid saying it has negative net value as negotiated. The company has said it remains committed to the concept and would like to submit a viable bid on the project in Massachusetts’ next offshore wind solicitation.

The Massachusetts DPU has rejected Avangrid’s requests, first to pause its review of the power purchase agreements with three electric distribution companies, and then to dismiss the PPAs altogether. The companies meanwhile refused to negotiate any changes. (See Mass. DPU Orders Commonwealth Wind Project to Continue.)

In its appeal Thursday, Avangrid said the DPU’s orders are based on errors in law, unsupported by evidence, and arbitrary, capricious and an abuse of discretion.

Developers of another proposed Massachusetts wind farm — Mayflower Wind, phase 1 of which would deliver 405 MW — have cited the same financial pressures as Commonwealth but have not yet attempted to back out.

Mayflower, which previously was granted limited participant status in the Commonwealth proceeding because the two projects are interrelated, requested full participant status Thursday because of Avangrid’s latest motion.