CONTRIBUTOR
New Jersey is starting new offshore wind projects after two major developments effectively failed in 2023.
The state’s utility regulators green lit two major contracts on Wednesday in a bid to revitalize the state’s offshore wind dreams, months after Ørsted — one of the largest offshore wind developers in the world — pulled the plug on two massive projects off the New Jersey coast in October 2023, the New Jersey Board of Public Utilities (NJBPU) announced Wednesday. As of November 2023, New Jersey was engaged in a dispute with the company over $300 million the state says it is owed.
The two developments selected are Invenergy and energyRE’s Leading Light Wind Project and Attentive Energy LLC’s Attentive Energy Two Project, according to the NJBPU. The state is banking on the projects to eventually supply enough electricity to power 1.8 million homes. (RELATED: Environmental Laws That Impeded Pipelines For Years Could Trip Up Biden’s Sprint Toward Offshore Wind)
Not much interest in the offshore wind leases https://t.co/EeKTqG90vw
— Daily Caller (@DailyCaller) August 30, 2023
Inflation, high borrowing costs and logistical problems plagued Ørsted’s projects for months before the company decided it had no other choice but to walk away from its investment. The company previously agreed to pay $200 million to build wind-related facilities in southern New Jersey and set aside $100 million to pay the state in the event it cancelled its projects, but the company was attempting to work its way out of those liabilities as of November 2023.
The new contracts are designed to insulate against the risks of future cancellations, according to E&E News. The deals include provisions that account for inflationary pressures, while also requiring Attentive to put up a $67 million security and mandating that Leading Light put up its own security of $120 million.
The newly-contracted projects are also expected to increase utility rates in the state. Residential electricity rates are expected to jump by $6.84 per month, commercial rates would increase by $58.73 per month and monthly industrial rates would rise by $513.22, according to E&E News. One of the two terminated Ørsted contracts would have been about half as expensive for residential ratepayers, according to The New York Times.
The new contracts are “undeniable proof that the future of offshore wind in New Jersey is as strong as ever,” Democratic New Jersey Gov. Phil Murphy said. “From our talented workforce to our growing standing as a regional supply chain hub, our state remains an unparalleled location for the top developers in the world to plant their flags. In addition to bringing good-paying jobs and environmental benefits to the Garden State, these projects will significantly advance our pursuit of a 100% clean energy economy by 2035.”
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It seems to work fine in other countries.
https://windeurope.org/newsroom/press-releases/lots-of-good-news-and-good-numbers-again-in-offshore-wind/
It may be happening but that doesn’t mean it works fine, it is in fact very expensive for the consumer as well as the taxpayer.
But the owners… Won’t someone think of the owners.
Looks like a project to power 1.8 million homes 36-44% of the time
And the rest of the time, they just freeze!
Interesting link, especially this:”… Germany: none of the large projects awarded under their uncapped negative bidding auctions in 2023 has reached final investment decision so far.”
Comment: The statement suggests to me that the “bids” are essentially options, if we can get the money, we might do it. But “so far” no one has been dumb enough to finance it.
copy/paste
But 70% of all auctions in 2023 used uncapped negative bidding, asking wind energy developers to pay for the right to build an offshore wind farm. This needs to change!
Uncapped negative bidding poses several big risks. Developers have to cover the additional costs of negative bids. They can either pass them on to the electricity consumers, who are already suffering from high prices, or on to the wind energy supply chain, which is already struggling with inflation and cost increases.
Negative bidding also adds to the overall project risk which in turn drives up capital costs. This is particularly challenging with higher interest rates now.
As a result uncapped negative bidding puts the realisation of projects at risk. Take Germany: none of the large projects awarded under their uncapped negative bidding auctions in 2023 has reached final investment decision so far.
What good numbers? That article is riddled with stuff about new capacity built or building. It’s completely devoid of anything resembling actual energy produced.
Did you read the article you posted? This stands out:
European countries will need to build 24 GW a year in the period 2027-2030 to reach the 2030 targets. But today’s offshore wind supply chain can only produce around 7 GW each year.
As does this:
The European Union published its EU Wind Power Package with 15 immediate actions to support the European wind sector.
You figure a few of those immediate actions is new green levies and government subsidies?From the EU Wind Power Package:
The Action Plan then sets out a series of measure to help finance investments in new factories, infrastructure and the wind energy workforce. It proposes to double the money available for clean tech manufacturing under the next call of the EU Innovation Fund to €1.4 bn.
The European Investment Bank (EIB) will also play a key role. They’ll provide de-risking tools and counter-guarantees by the end of 2023 to cover the exposure of private banks when they lend money to the wind industry. The EIB has also changed its lending policy to finance manufacturing in addition to its extensive financing of wind farms.
Germany is apparently planning to spend itself out of an inflation fueled recession by investing in projects that will increase energy prices.
“The German economy is stuck in recession,” said Ifo president Clemens Fuest.
German gross domestic product (GDP) contracted by 0.3% in 2023…
…Last year I2023) Germany was plagued by persistently high inflation, high energy prices and weak foreign demand, and topped off with a budget meltdown that prompted deep subsidy cuts while rattling the nation’s fractious coalition government”.
So now we see that Germany is “the sick man of Europe”! I wonder how long it will take for that to change? Last time, it was 6 years!
Germany’s society and economy have been maneuvered into a downward spiral by bleeding heart crazies encouraging uncontrolled, unvetted immigration of un-useful people living off government handouts, a net drain, and the environmental nuts building out wind and solar, etc., and closing perfectly good nuclear plants, to drive up electricity prices and all other prices.
This will take a long time to undo.
Trump will wake them up from their trance
Trump was one of the biggest employers of illegal aliens at his golf courses, vineyards, and hotels.
And how close does that get them to net zero? 5%? 10%?
In June 2022 Wind Europe warned that a “Worldwide shortage of FIVs, WTIVs and CLVs” poses ” risk for project execution”
FIVs are Foundation Installation Vessels, WTIVs are Wind Turbine Installation Vessels and CLVs are Cable Laying Vessels that connect the offshore fields to the land.
In a press release on 31 May 2023 they said “Offshore foundation manufacturers and installation vessels are fully booked for several years”
Those problems are not going to go away any time soon – it takes years to build those ships and build out the new foundation manufacturing required. This problem likely contributed to the recent various pull outs from offshore wind projects off the US and will persist for some time.
Does Germany still have the most expensive and most unstable electricity supply in any developed country…
.. causing massive industry closures and bankruptcies.
Yep, wind is doing so well…if destruction of the economy is the aim.
Nice press release, as press releases go.
Too bad about the consumers being forced to pay more for electricity because their idiot governments aren’t giving them any choice.
Great deal for Big Wind, and the politicians in their back pocket.
Make-work bs that benefits none of the citizenry and they will pay more for it. Another boondoggle.
“Residential electricity rates are expected to jump by $6.84 per month, commercial rates would increase by $58.73 per month and monthly industrial rates would rise by $513.22, according to E&E News.”
The more they proclaim their computer-generated boilerplate loveliness, the less you believe it
quote:”From our talented workforce to our growing standing as a regional supply chain hub, our state remains an unparalleled location for the top developers in the world to plant their flags. In addition to bringing good-paying jobs and environmental benefits to the Garden State, these projects will significantly advance our pursuit of a 100% clean energy economy by 2035.”
If they planted those windmills today, by 2035 they’d be scrap – offshore ‘mills have a helluva hard life even before they’re made of plastic…..
The blades on them things work harder than aeroplane wings do, yet not even Boeing makes plastic aeroplanes.
(OMG, maybe they do. Explains a lot)
No, no, not scrap by 2035, not until 2049, says so right here so there /sarc
This report is available at no cost from the National Renewable Energy Laboratory at http://www.nrel.gov/publications.
Table 12. Offshore Wind Reference Project Parameters (Fixed-Bottom and Floating Substructures)
Distance from shore (km) 50
Project design life (yr) 25
bringing good-paying jobs
The usual mantra from the renewable advocates. The megawatts and supplied homes are enumerated but not the jobs, whose alleged “good pay” is a part of the increased cost to consumers. Meanwhile, Xcel Energy in the Midwest has raised its “Small General” energy winter rate 23% as of January.
Story tip:=====>
https://www.foxnews.com/politics/white-house-halts-enormous-natural-gas-projects-victory-environmentalists
The White House is halting the permitting process for several proposed liquefied natural gas (LNG) export terminal projects over their potential impacts on climate change, an unprecedented move environmentalists have demanded in recent months.
https://www.washingtonpost.com/climate-environment/2024/01/26/biden-lng-export-projects-climate/
U.S. stalls gas export projects that activists say are ‘climate bombs’
Sierra Club enviro wacko’s strike again….
I am onboard with this.
If the Brandon administration, who promised to provide LNG to Europe even before the NS 2 pipeline was mysteriously blown up by a still unknown entity, is going to block added export capacity, and therefore reneging on that promise, that will help keep NG prices down for US consumers in the form of homeowners (heating, water heating, cooking, clothes drying) and electrical generating for utilities, and for industry.
SO a win for US residents, a loss for the EU and global NG prices.
It looks like the US Senate’s attempt to continue the importation of cheep illegal labor over the southern US boarder is more important to the RINOs and Dems then providing money to Ukraine so apparently nothing will happen there until after the election. Also note the US House passed 6 $B funding for Israel never even got a hearing in the Senate.
I am also onboard with letting Europe fully fund Ukraine. As TRUMP! tried to do and was attacked by the Pentagon and the usual suspects in the media and deep state, I think it is long past time for the US to require NATO member states to do the 2% GDP military spending that they committed to.
Even now many, especially those farther from Russia, are not doing 2%. They can make up the difference by IMMEDIATLY sending the deficiencies, and past deficiencies, to Ukraine.
Once the Ukraine thing is resolved, the US needs to resign from NATO. Let Europe stand on their own.
Finally, while still on my soap box, it is time for the US to withdraw all ships from the ME ocean areas and let Europe deal with the Houthis and Iranians. The added cost of transportation around the Horn of Africa will fall on Europe, both by extended travel time and fuel costs, and on Egypt from the loss or revenues from the Suez Canal. I could not care less about costs to that soon to be authoritarian statist continent. It is in recent news reports, for example, that the French fear that the farmers protests may help “the far right”, yet again attacking “the far right” when the far left is a part of most coalition governments in Europe.
Screw them all. The sooner and harder they fall, the better.
Drake
“ then” providing money to Ukraine … “thAn”… two distinctly different meanings.
“Screw them all. The sooner and harder they fall, the better.”
What a witches brew of a mess,we have The Sec of Energy who has no background in energy along with the “Climate Czar” Ali Zaidi also no background in energy both of which are foreign nationals.
And gen-Z’er Alex Haraus a “social media influencer” who seems like a Greta with a beard
making major policy decisions. The problem is the pain from this to others will be real.
“And gen-Z’er Alex Haraus a “social media influencer” who seems like a Greta with a beard: – That is going to be so hard to “unsee”. 😉
Could those “environmentalists” please explain what they REALLY REALLY do want? Windmills or birds? CO2 or No CO2? Real life certainly has its problems!
Doubling down on Offshore to lose more money on projects, and to increase household electric rates to astronomical levels during an election year, and achieve NO reduction in CO2 or in atmospheric temperature?
These offshore wind projects benefit only the large wind conglomerates in Europe.
These wind turbines and supporting electrical systems are made in Europe, then shipped to the US, and are financed by European pension funds.
Eastern States get all the ugliness, and a higher cost of electricity, and the taxpayers have to pay for 50% subsidies, and the workers in Eastern states have to be soooo grateful to do some of the maintenance, with very expensive replacement parts coming from Europe
Biden and Mill of Maine and Murphy of New Jersey are royally screwing the US people for the benefit of Europeans.
Vote Trump in with a landslide, so he can wipe out all the Biden idiocy off the map
WORLD’s LARGEST OFFSHORE WIND SYSTEM DEVELOPER ABANDONS TWO MAJOR US PROJECTS AS WIND BUST CONTINUES
https://www.windtaskforce.org/profiles/blogs/world-s-largest-offshore-wind-system-developer-abandons-two-major
EXCTRACT:
New York State had signed contracts with EU big wind companies for four offshore wind projects
Sometime later, the companies were trying to coerce an additional $25.35 billion (per Wind Watch) from New York ratepayers and taxpayers over at least 20 years, because they had bid at lower prices than they should have.
New York State denied the request on October 12, 2023; “a deal is a deal”, said the Commissioner
Owners want a return on investment of at least 10%/y, if bank loans for risky projects are 6.5%/y, and project cost inflation and uncertainties are high
The about 3.5% is a minimum for all the years of hassles of designing, building, erecting, and paperwork of a project
The project prices, with no subsidies, would be about two times the agreed contract price, paid by Utilities to owners.
The reduction is due to US subsidies provided, per various US laws
All contractors had bid too low. When they realized there would be huge losses, they asked for higher contract prices.
It looks like the contract prices will need to be at least $150/MWh, for contractors to make money. Those contract prices would be at least 60% higher than in 2021
Oersted, Denmark, Sunrise wind, contract price $110.37/MWh, contractor needs $139.99/MWh, a 27% increase
Equinor, Norway, Empire 1 wind, contract price $118.38/MWh, contractor needs $159.64/MWh, a 35% increase
Equinor, Norway, Empire 2 wind, contract price $107.50/MWh, contractor needs $177.84/MWh, a 66% increase
Equinor, Norway, Beacon Wind, contract price $118.00/MWh, contractor needs $190.82/MWh, a 62% increase
https://www.windtaskforce.org/profiles/blogs/liars-lies-exposed-as-wind-electricity-price-increases-by-66-wake
NOTE: Empire Wind 2, 1260 MW, near Long- Island, was cancelled.
https://www.reuters.com/business/energy/equinor-bp-cancel-contract-sell-offshore-wind-power-new-york-2024-01-03/
The Republican states are embracing Green Energy. The Republican states are the largest generators of Green Energy from windmills in the US.
Republican states are going strong on solar and wind, but not for the climatehttps://www.sustainabilitybynumbers.com/p/red-states-renewables
Which port will they use for unloading gold bars for delivery to the homes of NJ Dems?
What an idiot the governor is.
So much of that going around.
The entire process including the science behind the public policy is rotten to the core. Worse yet most people do not understand either the “ science” or the ( worthless) technology hailed as the “ solution”. And even if some do ( like us) ; we are powereless to stop it as the graft ridden propagandized politics is gamed to the max.
And some people are just stupid, caught in a circular reasoning trap.
When I see the image at the top of the turbines at sea- I wonder when the first ships start colliding with them. It’s gotta happen eventually. Maybe a big cruise ship that loses power and can’t steer itself? Remember that cruise ship in Italy that crashed onto the rocks some years back?
“Remember that cruise ship in Italy that crashed onto the rocks some years back?” Pilot/captain error. Doesn’t mean putting more obstacles in boats way will reduce the incidents.
Only people who have never had to build or repair something sea-worthy think off-shore means “low cost”.
The best case scenario is all this stuff fails so spectacularly that the MSM or the population cannot ignore reality. But sadly a miserable slow bleed of our populations tax dollars ( including interest as well as principal) until we become one gigantic Greece.
…one gigantic Greece-ing of palms outstretched..
Story Tip: Greta Thunberg addressed a Pro-Palestine crowd in Germany recently, criticizing Israel and supporting Palestine Authority. Shows where the CAGW crowd identifies itself. Disgusting.
I would say :Be careful what you wish for Greta. Perhaps some day we can banish such fools to places like “ Palestine “
The tragic thing is there actually seemed to be some hope for that region 4 years ago. I know it is way more complicated than that. But still- results are what we want, and fewer innocents on both sides die.
Mr. Pope, You said (which is likely what the State said) “The state is banking on the projects to eventually supply enough electricity to power 1.8 million homes.” What is meant by 1.8 million homes? Is it that these projects are expected to produce enough electricity to power these homes on a levelized basis? Is it that the rated capacity of the machines is sufficient to do this? Do they ever identify the sources of backup power to accommodate times when the wind is not blowing enough? Do they even acknowledge that there will be such times? Is it that the advocates of such projects are ignorant of such issues or are they simply lying? Many many articles on renewables make claims of projects powering X homes without explaining what is meant by that statement.
There have been various press releases over the last decade proclaiming Germany, or the UK, or some small island, was powered 100% by wind, or “renewables”. If the announcement provides any details, one sees this was for 15 minutes, or 2 hours (some short period) on one particular day (but there are never any announcements when the figure is 3%). If it (100%) happens, then generation capacity must be up to the demand. However since it happens quite rarely, actual capacity is far below these short burst (Oh look, the baby just took three steps on his own. Unfortunately these babies are never going to grow up).
In other words, these ‘yea so many homes’ numbers are possibilities under the most favorable conditions imaginable, but conditions almost impossible to achieven even momentarily.
It’s an abusive relationship between politico’s infatuated with a mythical technology and their promiscuous relationships with snake oil vendors. But the taxpayers and citizens will wear all the bruises as those same imbeciles in power keep going back for more of the same.