Wind Energy Projects Off New York -- Update -- November 1, 2023

”Locator: 45891WIND. 

Nice update on NY wind: link here.

An assortment of recent obstacles to projects in New York, New Jersey and Connecticut are almost certain to delay — and possibly derail — Northeastern states’ grand ambitions to harness the winds blowing over the Atlantic Ocean.

Four projects that were supposed to provide electricity to New York City and its suburbs are in limbo after being denied big increases in subsidies.

And on Tuesday, the world’s biggest developer of offshore wind farms shocked New Jersey officials by backing out of two projects off the state’s southern coast.

“Macroeconomic factors” including inflation and rising interest rates had made the projects too expensive, the company said. “Certainly, these project cancellations are arrows in the quiver of offshore wind opponents,” said Timothy Fox, vice president at ClearView Energy Partners in Washington.

Still, he added, he did not expect any states to abandon their offshore wind plans because all of the ones that have made big commitments, except Virginia, are controlled by Democrats.

The nine gigawatts of offshore wind power that New York is chasing was supposed to be a major piece of President Biden’s goal of creating 30 gigawatts of offshore wind nationally by 2030. (The Biden administration says 30 gigawatts could power more than 10 million homes.) That goal was considered unattainable even before the developer, Orsted, backed out of the two New Jersey projects, which the company said would have produced 2.25 gigawatts.

“Frankly, even by this past summer we were recognizing the inevitability of missing the 30-by-30 target,” said Kris Ohleth, director of the Special Initiative on Offshore Wind, a nonprofit organization that advises companies and policymakers.

The about-face in New Jersey has reignited a political battle over the headlong rush to induce companies to build wind farms in the ocean. New Jersey’s governor, Philip D. Murphy, a Democrat with national ambitions, said Orsted’s decision to abandon its commitments called into question “the company’s credibility and competence.” He insisted that the “future of offshore wind” along the state’s 130-mile coastline remained “strong.

RBN Energy: New York will need unprecedented increase in wind, solar to hit 2030 target. Archived.

Every state has its unique set of advantages and challenges, but very few face the number of contrasts that makes New York and its ambitious decarbonization goals so interesting. The Empire State ranks fourth in population (behind California, Texas and Florida) and is home to the biggest city in the country, yet most of the state would be considered rural. It has the nation's third-largest economy, but because its key industries — including financial and business services — are not energy-intensive, and many in the New York City area use mass transit, its per-capita energy use is lower than all but two states (Hawaii and Rhode Island). And while the state gets about 30% of its power from renewable sources (most of it large-scale hydropower), solar and wind generation are still very limited there. In today’s RBN blog, we look at how the state’s plans to ramp up renewable generation — which have long been plagued by problems with incentives, permitting and project cancellations — are running headlong into the difficulties of adding so many resources in a short period of time.  

This is the fourth blog in our series on the ongoing efforts to decarbonize U.S. energy networks. While developments are playing out very differently from state to state, based on any number of factors, one thing has become clear over the past couple of years as climate-related initiatives have gained momentum: Economic and logistical realities that may have been initially overlooked are being brought to the fore. Americans expect the energy industry to deliver fuel and power where they need it, when they need it, and for a price that everyday people can afford — what’s referred to as the trilemma of availability, reliability and affordability. But those goals not only clash with each other at times, they can also conflict with environmental priorities and economic realities.