Inflation Destroying US Offshore Wind Projects

Many offshore wind companies have already leased offshore wind sites off the East Coast expecting to make a profit.

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In order to go forward each ocean wind company had to established power purchase agreements ( PPAs ). The PPA allows the wind developer to finance the project through banks or venture capitalist markets. Electric rate hearings are held between state agencies, power companies with public input and rates are established and agreed to.

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The ocean wind projects on the East Coast are companies mostly based in Europe and purchase their turbines and submarine power cables from European contractors. These prices are negotiated sometimes up to a year before deliveries.

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Due to inflation European wind turbine manufacturers are reporting up to a ten percent loss every time they produce a wind turbine and are laying off workers. Sources forecast up to a two billion dollar loss this year.

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Massive inflation leading to financial downturns raises questions over the East Coast ocean wind projects.

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If states allow power purchase agreements to be renegotiated the next question is can the commercial and residential electric rate payers afford the higher prices . When does your electric bill become a second mortgage on your home?

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Shareholders bought into these offshore projects because states established long term energy agreements with ocean wind companies. Stockholders or bond holders expect a profit.

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Europe is facing an energy crisis due to the war in Ukraine causing to go back to a reliance on fossil fuels rather than build more wind turbines or other renewable energy projects.

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President Biden called for eighty percent clean power by 2030. Since Joe Biden has been president inflation has jumped to almost an average of 14 percent resulting in destroying the offshore wind projects.

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Comment by Frank Haggerty on November 25, 2022 at 10:25am

FYI : One of the offshore wind companies off the coast of Massachusetts and Rhode Island has no land route to get to the electric grid in Falmouth, Massachusetts or Portsmouth, Rhode Island. 

Rhode Island is holding a hearing in mid December for the company to show it has the economic resources to build the wind farm. 

While this is happening the Massachusetts Department of Public Utilities is holding hearings to OK the project and the project has NO access to the electric grid.

Comment by Willem Post on November 25, 2022 at 8:51am

If NE states “allow”…?

Are you kidding?

Entrenched state bureaucrats are EAGER to renegotiate those agreements to “get going” with their much-delayed, highly subsidized offshore wind fantasies 

Those bureaucrats made promises to the European fat cats, and were rewarded with goodies, such as luxury junkets to Europe “to view wind system facilities”

Those bureaucrats do not give a damn about decades of higher and higher household electricity rates, to be paid by already-struggling New Englanders, because they CLAIM they are “saving the world”; such bull crap.

Europeans surely know winds were minimal in 2021, which led to wind underproduction 

Hydro underproduced due to a drought

Nuclear in France underproduced, due to a lack of plant maintenance, and, in some cases, a lack of cooling water.

And then the unelected, stupid, clueless, EU bureaucrats imposed coal, oil, and gas sanctions on Russia, which created a minor inconvenience for Russia, but major blowback on the European economy and its future international competitiveness 

It is like kicking a soccer ball into a wall, and have it bounce back in your face. OOPS

Comment by arthur qwenk on November 24, 2022 at 1:28pm

The  war in the Ukraine is not destroying Europe's  power affordability , it is the the fake world wide Globalist Green Scam fleecing the public's pockets monthly from the  Green AGENDA ,declaring the world is ending because of CO2/Heating etc.. That pushes the  NON-DENSE UNRELIABLE INTERMITTENT POWER  sources SUCH as Wind and Solar that are bankrupting the public if allowed to continue. Fossil fuels, BTU Dense Sources such as NUCLEAR are a necessity to fuel the world, or it will go broke with the exception of the Useless Elitists  that created the theory.

"We The People" are waking up. Let us hope the full AWAKENING occurs sooner, rather than later.

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

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