NEW YORK, April 25 (Reuters) - Power services company GE

Vernova ( GEV ) 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 ( GEV ) 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.